Question 1

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Accepted Answer

Market positioning involves determining the unique benefit that a company's product or service provides for each target segment and communicating it effectively to differentiate it from competitors. A is incorrect as market research is the process of gathering information about a market. C is incorrect as marketing effectiveness refers to how well a company's marketing strategies achieve their objectives. D is incorrect as market segmentation is the process of dividing a market into smaller groups with similar needs and characteristics. E is incorrect as market dominance refers to a company having a significant share of a market.

Question 2

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 is an illustration of the fact that baby boomers may be ________.
A) male-oriented
B) female-oriented
C) Young Digerati
D) Cosmopolitans
E) psychologically young

Accepted Answer

The fact that baby boomers were attracted to the "dorm room on wheels" description of the Honda Element suggests that they have a psychological youthfulness and are not necessarily interested in traditional luxury or status symbols.

Question 3

Those who favor localized marketing see national advertising as wasteful because it ________.
A) gets too up close and personal with consumers
B) drives up manufacturing and marketing costs by reducing economies of scale
C) magnifies logistical problems
D) fails to address local needs
E) sends conflicting marketing messages

Accepted Answer

Localized marketing is preferred by some because it allows for tailoring products and messages to meet the specific needs and preferences of local markets, which national advertising might overlook.

Question 4

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Accepted Answer

Nike is using grassroots marketing by establishing relationships with customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them. This approach helps the company to connect with customers in a more personal and authentic way, building brand loyalty through community engagement.

Question 5

According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urban couples in America's fast-growing cities. Concentrated in a handful of metropolitan areas such as Las Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates.
A) Beltway Boomers
B) Old Milltowns
C) Cosmopolitans
D) Young Digerati
E) Winner's Circle

Accepted Answer

The cluster described in this question is best represented by the Cosmopolitans cluster in PRIZM. The other clusters listed do not match the demographic and geographic characteristics described.

Question 6

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets

Accepted Answer

Regardless of the type of segmentation scheme used, the main goal is to identify differences among customers and adjust the marketing program to meet their needs and preferences. This is the key to successful segmentation and targeting. Factors such as disposable income, cost-benefit relationships, customer complaints, and saturated markets may also be considerations, but they are not the primary focus of segmentation.

Question 7

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars - from juice to coffee to microbrew.
A) Beltway Boomers
B) Old Milltowns
C) Young Digerati
D) Cosmopolitans
E) Winner's Circle

Accepted Answer

The Young Digerati cluster fits this description, as they are characterized as tech-savvy young professionals living in urban areas with access to trendy amenities.

Question 8

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural

Accepted Answer

The segmentation is based on geographic location, making it an example of geographic segmentation.

Question 9

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.
A) occupation
B) family size
C) benefits
D) nationality
E) user status

Accepted Answer

Robert is trying to segment the market based on the benefit that the car would offer to its users, namely power and exhilaration. The price point to be affordable to those making a good salary is not a segmentation criterion but rather a constraint for the product development process. The other options (occupation, family size, nationality, user status) are not mentioned as segmentation criteria in the scenario.

Question 10

Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Accepted Answer

Market segmentation is the process of identifying and profiling distinct groups of buyers who differ in their needs and wants. The process involves grouping customers based on characteristics such as demographics, psychographics, behavior, and geography. The purpose of segmentation is to enable marketers to tailor their marketing mix to better meet the needs of each segment, resulting in more effective marketing and higher profits. Option A is incorrect because changing the identity of a product is not part of segmentation, but rather a process of repositioning. Option B is incorrect because it describes market targeting, which is the second step in the segmentation process. Option C is incorrect because it describes brand positioning, which is the process of creating an image or identity of the product in the minds of the target market. Option E is incorrect because it describes marketing effectiveness, which is not related to segmentation.

Question 11

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.
A) Old Milltowns
B) Young Digerati
C) Winner's Circle
D) Beltway Boomers
E) Cosmopolitans

Accepted Answer

The Old Milltowns cluster is characterized by retired singles and couples living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.

Question 12

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class

Accepted Answer

Pampers divides its market based on age groups, categorizing products for prenatal, new baby, baby, toddler, and preschooler stages.

Question 13

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral

Accepted Answer

The marketer has chosen geographic segmentation by dividing the market based on neighborhood locations. Demographic segmentation is based on characteristics such as age, gender, income, etc. Psychographic segmentation is based on personality, values, and lifestyle. Cultural segmentation is based on beliefs, customs, and values of different cultural groups. Behavioral segmentation is based on the behavior and actions of consumers towards a product or service. None of these methods are directly related to neighborhood location.

Question 14

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.
A) psychographic lifestyle
B) personality
C) behavioral occasions
D) social class
E) demographic

Accepted Answer

The separation of consumers by culture-oriented or outdoor-oriented indicates the use of psychographic lifestyle segmentation, which identifies consumers based on shared values, interests, and activities. This is more appropriate than demographic segmentation, which focuses on attributes such as age, gender, or income, or behavioral segmentation, which would require specific behavior related to the exhibit. Personality and social class segmentation are also less relevant in this context.

Question 15

The process of selecting one or more market segments to enter is called market ________.
A) targeting
B) dominance
C) positioning
D) segmentation
E) research

Accepted Answer

Market targeting refers to a systematic approach to determine which segments offer the most potential by analyzing the attractiveness of the segment and the company's ability to compete effectively. This involves evaluating the segment's size, growth potential, profitability, and competition, as well as the company's resources, skills, and objectives. Once potential segments are identified, the company can choose one or more to enter and develop a marketing program tailored to meet their specific needs and preferences. Therefore, market targeting is the appropriate choice.

Question 16

If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage

Accepted Answer

The marketing manager is segmenting the market based on psychographic lifestyle, specifically by dividing consumers into groups based on their interests in culture, sports, or outdoor activities. Psychographic segmentation divides the market based on personality traits, values, interests, and lifestyle choices.

Question 17

A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level

Accepted Answer

A market segment is a group of customers who share similar needs and wants. Vertical marketing system is a type of marketing channel structure, market basket refers to a set of products purchased by a customer in a single transaction, market share refers to a company's percentage of the total industry sales, and there is no such thing as a market level.

Question 18

According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.
A) Cosmopolitans
B) Beltway Boomers
C) Young Digerati
D) Winner's Circle
E) Old Milltowns

Accepted Answer

The "Beltway Boomers" cluster is characterized by individuals in their late forties and fifties, who are college-educated, upper-middle-class homeowners, married later in life, and are still raising children in suburban areas with a focus on kid-centered lifestyles.

Question 19

________ are the most fashion-conscious of all racial and ethnic groups and are more likely to be influenced by their children when selecting a product for purchase, and less likely to be influenced by unfamiliar brands.
A) Hispanic Americans
B) Asian Americans
C) African Americans
D) LGBT customers
E) American Indians

Accepted Answer

African Americans are often noted for their strong influence on fashion trends and are more likely to be influenced by their children in purchasing decisions, while being less swayed by unfamiliar brands.

Question 20

If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.
A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS

Accepted Answer

PRIZM clusters are geographic-based segmentation clusters developed by Nielsen Claritas. The clusters are named using descriptors that reflect the character of the neighborhoods they represent. The names in the question (Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups) are examples of PRIZM cluster names.

Quiz 9: Identifying Market Segments and Targets

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________.

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 is an illustration of the fact that baby boomers may be ________.

Those who favor localized marketing see national advertising as wasteful because it ________.

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars - from juice to coffee to microbrew.

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.

Which of the following statements about market segmentation is true?

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.

The process of selecting one or more market segments to enter is called market ________.

If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________.

A ________ consists of a group of customers who share a similar set of needs and wants.

According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.

________ are the most fashion-conscious of all racial and ethnic groups and are more likely to be influenced by their children when selecting a product for purchase, and less likely to be influenced by unfamiliar brands.

If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.