Question 1

Cody stopped by Ferrari of Beverly Hills to look at the new Ferrari 488 Spider that just came in. Cody is obsessed with cars and would love to buy the 488, but there is a slight problem. Cody is a full-time student in his senior year of college and works part time at Olive Garden where he earns $7.75 an hour. The new 488 is listed for sale for $429,000! Cody really should not be considered part of the market for the Ferrari because he:

Accepted Answer

Cody's part-time income at $7.75 an hour is not sufficient to afford a Ferrari 488 priced at $429,000, indicating a lack of purchasing power.

Question 2

Progresso Soup has a line of hearty soups that are promoted to all consumers using a single marketing mix. The company is utilizing ______ marketing.​

Accepted Answer

Undifferentiated marketing involves targeting the entire market with one offer or marketing mix, rather than segmenting the market and tailoring different offers to different segments. Since Progresso Soup is promoting its line of hearty soups to all consumers using a single marketing mix, it is employing an undifferentiated marketing strategy.

Question 3

Procter and Gamble is seeking to target women aged 18 to 34 to influence their purchasing of shampoo and bath gels. They selected the television network ABC Family and specifically airs commercials during the "Pretty Little Liars" time slot. Which criteria of effective segmentation is Procter and Gamble utilizing? ​

Accepted Answer

Procter and Gamble is utilizing the ability to effectively promote to the market segment by choosing a specific television network and time slot that aligns with the target demographic of women aged 18 to 34.

Question 4

Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____ products.

Accepted Answer

The paint and materials Jacob purchases are used for the facility's maintenance and upkeep, making them business products. These are items bought for the operation of a business rather than for personal consumer use.

Question 5

Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for active lifestyles and sports. The company began as a direct marketer - using only catalogs and its website to generate sales. However, over the years, Title Nine has opened retail outlets across the country. The company identifies strategic opportunities for new stores based upon the sales generated by current customers in the potential market area. For example, if Title Nine has a significant number of purchasers in the Boston area, they will further analyze the market and select a location for a retail outlet. What type of segmentation strategy is Title Nine utilizing when selecting a market for a new store location? ​

Accepted Answer

Title Nine is using a geographic segmentation strategy by selecting new store locations based on the sales generated by current customers in specific areas or regions, such as the Boston area. This approach focuses on where their customers are located.

Question 6

Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in her home but no other changes were needed. What type of product is the stove in the context of this example?

Accepted Answer

The stove is a commercial range, which is typically used in restaurants and other businesses. It is not a consumer product, as it is not designed for home use.

Question 7

Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes. Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new line of grilling accessories? ​

Accepted Answer

Demographic segmentation is used here as the target market is defined by age and gender (men aged 30 to 60), which are demographic characteristics.

Question 8

A basic distinction in types of markets is between markets that purchase the item for their own personal use and those that purchase the item for use either directly or indirectly in the production or distribution of other goods or services for resale. For example, when Logan stopped at the gas station to fill up his car before heading home for the weekend, they gas was for his personal use. However, when Brandon filled up his car with gas before a night of working as an Uber driver the gas was actually used to provide a service for sale. In this case, gas was:

Accepted Answer

The gas was a consumer product for Logan because he used it for personal purposes, and it was a business product for Brandon because he used it to provide a service for sale.

Question 9

June knows that the students who patronize her campus ice-cream shop are looking to socialize as much as to consume a treat. In her advertising, she shows images of customers enjoying each other's company. June is segmenting based on:

Accepted Answer

June is segmenting her market based on the benefits sought by her customers, which in this case is not just the consumption of ice cream but also the social experience that comes with it.

Question 10

Sustainability has become an important value among individuals in the United States and some believe that manmade factors such as the increased use of diesel and gasoline in cars has led to global warming. Those worried about global warming and seeking ways to reduce their carbon footprint and have invested in products such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most appropriate for Toyota to utilize in marketing its Prius - a hybrid vehicle? ​

Accepted Answer

Psychographic segmentation is most appropriate for Toyota to market its Prius because it involves segmenting the market based on values, attitudes, and lifestyles. Individuals concerned about sustainability and reducing their carbon footprint would be more inclined to purchase a hybrid vehicle like the Prius, aligning with their environmental values and lifestyle choices.

Question 11

In recent years, consumers have become increasingly concerned about the use of pesticide and other chemicals in the agricultural industry. Some are worried that the increased use of chemicals has led to higher incidences of disease such as cancer. Consumers who share these opinions will often purchase products labeled "organic" and "natural." Marketers who are utilizing these words on product packaging or in their promotions are implementing _______ segmentation.

Accepted Answer

Psychographic segmentation involves dividing the market based on consumer lifestyles, values, and beliefs. In this case, consumers are concerned about health and environmental issues, which are psychographic factors.

Question 12

​Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers. The firm is using:

Accepted Answer

Differentiated marketing is the strategy of targeting different market segments with specific products tailored to each segment. Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers, indicating they are adapting their product offerings to meet the distinct needs of different market segments.

Question 13

​You've started a business on your college campus to sell luxurious blue dorm room rugs with the college logo. You plan to target male freshmen who come from local towns, like the color blue, can afford luxury products, want rugs for their rooms, and are enthusiastic about boosting the school. You can easily and efficiently promote to all freshmen, including this segment, with Facebook and other social media tools. But your marketing professor cautions that you may be unable to meet certain criteria for effective segmentation. Which criteria does she cite?

Accepted Answer

The segment must present measurable purchasing power and size, and the segment must be large enough to offer significant profit potential.

Question 14

Cadillac has strategically sought to become known as a prestige brand among 30-to 50-year-olds and routinely uses television advertising to showcase the high quality and luxury attributes of the new models. It seeks to use _______ to separate the brand from other U.S. brands and be perceived more similarly to European models such as Audi and BMW.

Accepted Answer

Positioning is the strategy Cadillac is using by aiming to distinguish its brand in the minds of consumers, particularly among 30-to 50-year-olds, as a luxury and high-quality option comparable to European models like Audi and BMW.

Question 15

North Face is a well-known brand affiliated with active lifestyles such as backpacking, snow skiing, and camping. The company's products are available in a wide number of retail outlets as well as their company-owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market location. For example, stores in Northern California stock technical products suitable for customers who are avid backpackers, hikers, and rock climbers while retailers in the Midwest states offer a greater selection of apparel. What type of segmentation is reflected by stores carrying the North Face brand?

Accepted Answer

The segmentation is geographic because the mix of products varies by the location of the market, catering to the specific needs and interests of customers in different regions.

Question 16

When firms identify the factors that affect consumers' purchase decisions and develop strategies and tactics to appeal to specific types or groups of customers, they are practicing market _________.

Accepted Answer

Market segmentation involves identifying factors that affect consumer purchase decisions and developing strategies to appeal to specific groups of customers.

Question 17

​A junior member of your marketing department has recommended demographic segmentation for your fast food brand. In a memo, he wrote: "We should be marketing to females who are Hispanic, low-income, unmarried, and have four or more children." You express at least one strong concern about this recommendation. What concern(s) do you express?

Accepted Answer

The recommendation could lead to stereotyping and alienate potential market segments by focusing too narrowly on specific demographic characteristics, potentially offending or excluding other groups.

Question 18

Which of the following is utilized to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry?

Accepted Answer

Positioning maps are tools used by marketers to visually display the perceptions of consumers towards a product compared to its competitors, based on various attributes. This helps in understanding how a product is positioned in the market relative to its competitors.

Question 19

Clairol offers a line of hair color called "Nice n Easy," which allows women to touch-up their hair and easily cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a youthful appearance. What type of segmentation does Clairol use by targeting women over 30?

Accepted Answer

Clairol is using demographic segmentation by targeting women over the age of 30, as this approach categorizes the market based on age, which is a demographic characteristic.

Question 20

Dell Computer offers a variety of desk top, tablet, and laptop computers. One popular product line is Dell's Alienware - built for gamers with high speed processors, enhanced memory and special graphics cards. What marketing principle is Dell utilizing with its Alienware product line?

Accepted Answer

Dell is utilizing market segmentation by targeting a specific group of consumers (gamers) with unique needs (high speed processors, enhanced memory, and special graphics cards) through its Alienware product line.

Quiz 9: Market Segmentation, Targeting, and Positioning