Question 1

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
A) gender
B) income
C) occasion
D) benefit
E) geographic

Accepted Answer

Gilron Holidays is targeting customers based on their high income, which is an example of income segmentation.

Question 2

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Accepted Answer

This statement is true. The customer-driven marketing strategy does involve four steps: market segmentation, market targeting, positioning, and differentiation.

Question 3

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Accepted Answer

This statement describes the opposite of mass marketing, which is differentiated marketing. Mass marketing involves developing a single marketing program and product for all potential customers, without differentiating between market segments.

Question 4

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning

Accepted Answer

Market segmentation involves dividing a market into smaller segments based on factors such as buyers' needs, characteristics, and behaviors. This allows for more targeted marketing strategies aimed at specific segments, rather than a one-size-fits-all approach.

Question 5

What is differentiation?

Accepted Answer

The answer of What is differentiation?...

Question 6

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

Psychographic segmentation is the method of dividing markets based on consumers' values, attitudes, and interests. Marketers who use this method focus on consumer lifestyles and base their marketing strategies on lifestyle appeals. They try to understand the psychological characteristics of consumers and design their products and services accordingly.

Question 7

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Accepted Answer

Geographic segmentation calls for dividing the market based on geographical locations such as regions, states, counties, cities, or neighborhoods. This allows marketers to tailor their strategies to specific regions based on factors such as climate, culture, and local trends.

Question 8

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Accepted Answer

Market targeting involves evaluating the attractiveness of each market segment and selecting one or more segments to enter. Positioning refers to creating a unique image and identity for a product in the minds of the target market. Mass customization is the process of creating products that meet the specific needs of individual customers. Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. Differentiation is the process of creating a unique product or service that sets it apart from competitors.

Question 9

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

Accepted Answer

Delta Motorworks is segmenting its market based on demographics, specifically age, gender, and income of its customers.

Question 10

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Accepted Answer

The answer of ________ segmentation has long been used in...

Question 11

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Accepted Answer

Psychographic segmentation is based on factors such as personality traits, values, interests, opinions, and lifestyle choices. This type of segmentation is often used to create more personalized marketing messages that resonate with the individuals in a particular segment. Social class and lifestyle are two common factors used in psychographic segmentation.

Question 12

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Positioning
C) Segmentation
D) Differentiation
E) Targeting

Accepted Answer

Positioning refers to arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. This involves differentiating the product from competitors and conveying a clear value proposition to the target market. Mass customization, segmentation, differentiation, and targeting are all important elements of developing a clear positioning strategy but are not the same as positioning itself.

Question 13

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Accepted Answer

The marketers at Fair & Leigh Inc. were engaging in market targeting by selecting the Millennials as a potential customer group for their new line of products. Market targeting involves selecting one or more segments and developing products and marketing strategies tailored to their unique characteristics and needs.

Question 14

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Accepted Answer

Demographic segmentation is based on observable characteristics of a population, such as age, gender, income, education, and ethnicity. Therefore, this option describes this type of segmentation accurately.

Question 15

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The answer of Explain the four major steps in designing...

Question 16

________ involves actually distinguishing the firm's market offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Accepted Answer

Differentiation involves creating a unique and superior product or service that sets it apart from competitors in the market. This can be achieved through various means such as product features, branding, customer service, or other value-added benefits that appeal to customers.

Question 17

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic

Accepted Answer

The answer of ________ segmentation divides buyers into segments based...

Question 18

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.
A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Accepted Answer

Geographic segmentation involves dividing a market based on geographic locations such as regions, cities, or neighborhoods. The given statement explicitly mentions localizing efforts to fit the needs of different regions, which is an example of geographic segmentation.

Question 19

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Accepted Answer

Occasion segmentation is the process of dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. This type of segmentation allows marketers to tailor their marketing efforts to specific occasions, such as holidays, celebrations, or events, and to develop products and promotions that are relevant and appealing to consumers during these times.

Question 20

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.
A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Accepted Answer

The scenario describes an instance of stereotyping, in which the ad represents women as fulfilling a traditional gender role of being primarily responsible for childcare, despite the fact that many women have diversified roles in today's world.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

What is differentiation?

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Explain the four major steps in designing a customer-driven marketing strategy.

________ involves actually distinguishing the firm's market offering to create superior customer value.

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.