Question 1

Firmographics involves both characteristics of the composition of the organization -such as the income distribution of employees, age, gender, and education of the workforce and organizational or business characteristics which include each of the following EXCEPT:

Accepted Answer

Firmographics includes characteristics of the organization's composition as well as organizational or business characteristics such as the location and size of the firm, industry category and corporate activities. However, corporate mission is not considered a firmographic characteristic.

Question 2

Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which organizational segmentation variables might
Evergreen use to segment its market?

Accepted Answer

Evergreen is likely to use NAICS codes as a segmentation variable, which would allow them to tailor their marketing efforts to specific industries such as airlines or cargo companies. Additionally, they may also segment based on benefits sought, such as cost-effective aircraft preservation or secure storage services. Number of locations and demographics are not relevant variables for Evergreen's business model.

Question 3

Australia-based Renewable Energy Ltd. sells a device that converts manure into energy. One of the $10 million devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market is businesses that use a lot of energy like its first customer, a fertilizer manufacturer, and that are located in rural areas. It will use which of the following strategies to segment its
Market?

Accepted Answer

The answer of Australia-based Renewable Energy Ltd. sells a device...

Question 4

A local fast food restaurant uses inserts to advertise their upcoming offers to students. The inserts are used in a student newspaper and in the area code where students live on-campus. Why would the restaurant choose NOT to include inserts in those papers where students reside with their parents off-campus?

Accepted Answer

The primary reason for not including inserts in papers for students living off-campus with their parents is likely due to the higher cost associated with reaching this segment, which may not justify the potential return on investment.

Question 5

Firmographics involves both organizational or business characteristics-such as location, size of firm, industry category, corporate activities, business objectives, and buying objectives-and characteristics of the composition of the organization-which Include each of the following EXCEPT:

Accepted Answer

Firmographics refers to characteristics related to organizations or businesses, including their structure and composition, but does not typically involve external factors like competitive intensity. Competitive intensity relates to the external business environment, not the internal composition of an organization.

Question 6

All of the following are steps in the positioning process, except:

Accepted Answer

The step of discovering how much consumers are willing to pay for a product is not a part of the positioning process. The positioning process includes identifying important attributes, discovering where the company's product stands in comparison to competitors, and determining target customer perceptions of competing products. The price point is important but is not a step in the positioning process.

Question 7

A local producer manufactures sheet metal that is used to manufacture car doors. This producer finds the NAICS codes for all of the car manufacturers in the area to sell the sheet metal to. This producer is attempting to:

Accepted Answer

The producer is using the NAICS codes to segment an organizational market, specifically the car manufacturing industry. This allows them to target their marketing efforts and sales pitches to the specific needs and requirements of each company, ultimately increasing their chances of making sales.

Question 8

When evaluating entry into the large Boston market, Seattle-based Starbucks Coffee Company found that Coffee Connection, a well-established local chain, already occupied many prime locations. Starbucks entered the market anyway because it based its decision on:

Accepted Answer

Starbucks based its decision on population density, which is a geographic variable. Despite the competition from Coffee Connection, Starbucks believed that the high population density in Boston would support its growth in the market.

Question 9

William Morris talent agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. Imagine that the agency decided the singer would not perform at venues located in communities that had less than 100,000 people. This would be segmenting the market by_________variables.

Accepted Answer

The segmentation is based on the geographic location of the venues, specifically the size of the community in which they are located. This is a geographic variable.

Question 10

When a financial institution considers charging additional convenience fees for things such as calling into customer service or visiting a teller in person they may be attempting to___________a customer segment group.

Accepted Answer

By adding additional convenience fees, the financial institution may be attempting to de-market/fire a customer segment group that they deem to be unprofitable or not worth the cost of servicing.

Question 11

In developing a marketing strategy for your Wendy's restaurant, you determine that as many as 400 lunches per day are purchased by local college students who commute and eat at your restaurant. This is part of the process for:

Accepted Answer

Developing a market-product grid and estimating the size of markets involves identifying specific target markets and estimating their size and potential sales volume. In this case, the target market is local college students who commute and purchase 400 lunches per day. This information can be used to develop a marketing strategy tailored to this specific market segment.

Question 12

By including both organizational or business characteristics-such as location, size of firm, industry category, corporate activities, business objectives, and buying objectives -and characteristics of the composition of the organization-such as the income Distribution of employees, age, gender, and education of the workforce, experts have referred to these variables collectively as:

Accepted Answer

The term used to refer to both organizational characteristics and characteristics of the composition of the organization is "firmographics." Option C, "firmographics," is the closest match. Options A, B, and D are not commonly used terms in the field of business and do not accurately describe the described concept.

Question 13

Car rental companies, Dollar, Hertz, and Avis all target the same business users who only need a car for one day. These business users will pick-up and drop-off at the same airport. Which positioning strategy do these rental companies likely use?

Accepted Answer

Head-to-Head positioning is used when companies target the same customers with similar products and compete directly with each other.

Question 14

Which of the following is NOT a basis used to segment organizational markets?

Accepted Answer

Psychographic segmentation is typically used in consumer markets to categorize individuals based on their lifestyles, interests, attitudes, values, and personality traits. It is not commonly used to segment organizational markets, which are more likely to be segmented based on factors like usage rate, geographic location, and annual sales volume, reflecting the needs and behaviors of organizations rather than individual consumers.

Question 15

Harmony Products makes fertilizers used on golf courses. Which demographic market segmentation variable would provide the greatest benefit to the organization?

Accepted Answer

NAICS codes (North American Industry Classification System) would be most beneficial for Harmony Products because these codes would help the company identify and target businesses within specific industries, such as golf courses, that are most likely to purchase their fertilizers. This segmentation allows for more focused marketing efforts.

Question 16

A fast food restaurant grouped its sandwiches and wraps into one product group because:

Accepted Answer

Grouping sandwiches and wraps together makes sense because customers often view them as similar products and may choose between them based on their mood or preferences at the time of purchase. This grouping allows for a simpler and more intuitive menu for customers to navigate.

Question 17

A fast food restaurant groups its products into five meal categories. They are breakfast, lunch, between-meal snack, dinner, and after-dinner snack. Why does this restaurant use product groupings?

Accepted Answer

The products are grouped so people can relate to these product groupings in a more meaningful way. Grouping products in meal categories makes it easier for customers to navigate the menu and find what they are looking for based on the time of day and their hunger level. It also helps in marketing and promotions targeted at specific meal times.

Question 18

Which of the following is NOT a criterion used for selecting a market segment?

Accepted Answer

The criterion "similarities of needs of potential buyers" is actually a reason for creating a market segment, not a criterion for selecting one. The other options (cost of reaching the segment, size of the market, and competitive position) are all considerations in the selection process.

Question 19

Mass customization is similar to ultra-customization, as the 80/20 rule is similar to ________ consumer segmentation variable.

Accepted Answer

The 80/20 rule, also known as the Pareto Principle, often applies to usage rate, suggesting that 80% of effects come from 20% of causes. In consumer segmentation, this translates to a small portion of customers (20%) generating a large portion (80%) of sales, which aligns with the usage rate segmentation variable.

Question 20

In developing a marketing strategy for a fast food restaurant you decide that what it was really selling was full hot meals, small snacks, desserts, and salads. This is an example of:

Accepted Answer

This statement refers to the grouping of products, specifically categorizing them into full hot meals, small snacks, desserts, and salads. This is an example of product grouping.

Quiz 9: Market Segmentation, Targeting, and Positioning