Question 1

Although a market segment can meet all criteria for viability, a firm may choose to not pursue the segment. Which of the following is a reason why this might occur?
A) a competitor has already targeted the segment
B) targeting the segment could lead to antitrust concerns
C) the segment has no synergy with the firm's mission
D) the segment is difficult to reach via communication and/or distribution
E) the segment's members are not easily identifiable

Accepted Answer

The segment has no synergy with the firm's mission.

Question 2

After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:
A) too many opportunity costs.
B) dissatisfaction.
C) choice insufficiency.
D) cognitive dissonance.
E) poor product quality.

Accepted Answer

Sheri's doubts and conflicting thoughts about her decision to enroll in the MBA program at MSU indicate cognitive dissonance, which is the discomfort that arises from holding two or more contradictory beliefs, attitudes, or values at the same time. This can lead individuals to experience dissatisfaction and regret about their choices.

Question 3

Firms engage in _____ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems.
A) single segment targeting
B) market specialization
C) selective targeting
D) product specialization
E) mass market targeting

Accepted Answer

Market specialization refers to firms focusing their efforts on serving a specific target market with unique and specific needs. By having intimate knowledge and expertise in a specific market, firms can offer customized marketing programs that not only deliver products but also provide solutions to customers' problems. This allows them to differentiate themselves from competitors and build a loyal customer base.

Question 4

One of the most successful and well-known tools of _____ segmentation is VALS™ developed by Strategic Business Insights.
A) psychographic
B) geographic
C) demographic
D) geoclustering
E) emotional

Accepted Answer

VALS™ is a tool for psychographic segmentation, which divides consumers into groups based on their personality traits, attitudes, and values.

Question 5

The consumer buying process begins when:
A) marketing research discovers a new, untapped market segment.
B) consumers recognize that they have unsatisfied needs.
C) merchants offer goods and services for sale.
D) a manufacturer develops a new product.
E) consumers begin to seek information about an upcoming purchase.

Accepted Answer

The consumer buying process starts with the recognition of a need or problem by the consumer. This is when they realize they have an unsatisfied need that prompts them to look for a solution, leading to the subsequent steps in the buying process.

Question 6

_____ is/are the primary reason why the consumer buying process varies across customers, products, and situations.
A) Individual influences
B) Situational influences
C) The cost of the product
D) Social influences
E) The complexity of the purchase

Accepted Answer

The answer of _____ is/are the primary reason why the...

Question 7

Which of the following IS NOT an example of mass customization?
A) A college creates a custom degree program to match your unique needs.
B) A customer orders a custom teddy bear from Build-A-Bear Workshop.com.
C) Dell offers fully customized computers based on your needed
Configuration.
D) A bank employee logs into the e-procurement system to browse a fully customized catalog of office supplies.
E) You order a customized vase of flowers from 1-800-Flowers.com.

Accepted Answer

The answer of Which of the following IS NOT an...

Question 8

Which of the following IS NOT a typical basis used to segment business markets?
A) type of organization
B) organizational characteristics
C) benefits sought
D) organizational culture
E) relationship intensity

Accepted Answer

Organizational culture is not typically a basis used to segment business markets. Market segmentation in business markets is usually based on factors like type of organization, organizational characteristics, benefits sought, and relationship intensity, which are more objective and quantifiable. Organizational culture, being more about internal values and practices, is less commonly used for segmentation purposes.

Question 9

The basic assumption of _____ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program.
A) holistic marketing
B) mass marketing
C) market concentration
D) focused marketing
E) single segment marketing

Accepted Answer

Mass marketing assumes that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program. It involves the large-scale production and distribution of a single product or product line to all potential customers in a market, without any attempt to target specific segments.

Question 10

From the viewpoint of the consumer buying process, what is the difference between a need and a want?
A) Needs are absolute necessities, whereas wants are discretionary.
B) Needs are related to specific products, whereas wants occur only when the consumer has the ability to purchase the product.
C) Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need.
D) Needs focus on specific elements of a product's quality, whereas wants are related to the "extras" that add value to the product.
E) Needs and wants are essentially the same, except that consumers will pay more for products they need.

Accepted Answer

Needs are based on a discrepancy between actual and desired satisfaction, meaning that the consumer recognizes a gap between what they have and what they need to feel satisfied. Wants, on the other hand, are desires for specific products that can fulfill a need, but are not necessarily essential for survival or basic functioning.

Question 11

With respect to the consumer buying process, _____ is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information.
A) the degree of risk
B) the consumer's expertise
C) the consumer's brand loyalty
D) the degree of competition
E) the extent of product differentiation

Accepted Answer

The degree of risk is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information because consumers are more likely to engage in an extensive search for information when they perceive the purchase to be high-risk. Conversely, when consumers perceive the purchase to be low-risk, they may engage in limited search or rely on prior experiences or recommendations from others.

Question 12

Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:
A) individualization.
B) one-to-one marketing.
C) mass customization.
D) customized marketing.
E) permission marketing.

Accepted Answer

Mass customization refers to the practice of offering individually tailored products or services to large numbers of customers. This strategy allows companies to differentiate themselves in the market and provide greater value to their customers. It involves using technology and advanced supply chain techniques to efficiently produce customized products at scale, thereby reducing costs and improving customer satisfaction.

Question 13

The main advantage of _____ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
A) focused marketing
B) unidimensional marketing
C) mass marketing
D) multisegment marketing
E) market concentration

Accepted Answer

The answer of The main advantage of _____ is specialization,...

Question 14

Each of the following statements describes a unique characteristic of the business buying process EXCEPT:
A) Business buyers have an easier time identifying their needs as compared to consumers.
B) Business buyers must be keenly aware of both hard and soft costs.
C) Groups of people, rather than individuals, often make purchase decisions.
D) Business buyers are less likely to be dependent upon each other.
E) Business buying is sometimes based on reciprocity where each firm buys products from the other.

Accepted Answer

Business buyers often operate in networks or supply chains where dependencies between buyers and suppliers are common, making interdependence rather than independence a characteristic feature of business buying.

Question 15

Only the largest firms can execute _____, which involves the development of multiple marketing programs to serve all customer segments simultaneously.
A) single segment targeting
B) market specialization
C) selective targeting
D) product specialization
E) mass market targeting

Accepted Answer

Mass market targeting involves the development of multiple marketing programs to serve all customer segments simultaneously, which typically requires the extensive resources and capabilities of the largest firms.

Question 16

If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the _____ would most likely be Dell, Apple, and HP.
A) brand set
B) purchase set
C) evoked set
D) target group
E) shopping list

Accepted Answer

The term "evoked set" refers to the set of brands that comes to a consumer's mind when considering a particular product category. Therefore, if a researcher were to ask consumers to name the top brands of computers they might consider purchasing, the most common brands that come to consumers' minds would form their evoked set.

Question 17

What type of segmentation divides consumer markets into segments using individual factors such as gender, age, income, and education?
A) psychographic segmentation
B) demographic segmentation
C) benefit segmentation
D) behavioral segmentation
E) lifestyle segmentation

Accepted Answer

Demographic segmentation divides consumer markets based on individual factors such as age, gender, income, and education. Psychographic segmentation divides consumers based on values, attitudes, and lifestyles. Benefit segmentation divides consumers based on the benefits they seek from a product or service. Behavioral segmentation divides consumers based on their behaviors or actions towards a product or service. Lifestyle segmentation divides consumers based on their activities, interests, and opinions.

Question 18

What is the key to using behavioral segmentation successfully in consumer markets?
A) The firm must clearly link behavioral characteristics with risk profiles.
B) The firm must clearly link behavioral characteristics to demographic characteristics.
C) The firm must determine whether consumers see their behaviors as being distinct from other behavioral segments.
D) The firm must clearly link behavioral information with geography.
E) The firm must clearly understand the basic needs and benefits sought by different consumer groups.

Accepted Answer

The key to using behavioral segmentation successfully in consumer markets is for the firm to clearly understand the basic needs and benefits sought by different consumer groups. This allows the firm to tailor their marketing mix to meet the specific needs and preferences of each behavioral segment. Option A is not accurate because risk profiles are not always linked to behavioral characteristics. Option B is also incorrect because demographic characteristics may not always align with behavioral characteristics. Option C is not as important as understanding the basic needs and benefits sought by each segment. Option D is not the key factor in successful behavioral segmentation.

Question 19

_____ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments.
A) Demographic
B) Behavioral
C) Psychographic
D) Lifestyle
E) Geographic

Accepted Answer

Behavioral segmentation uses actual product usage to make distinctions among market segments, making it the most powerful form of segmentation in consumer markets. Demographic segmentation is based on demographic characteristics such as age, gender, income, etc. Psychographic segmentation focuses on the lifestyle and personality traits of consumers. Geographic segmentation is based on geographic location. Lifestyle segmentation is a type of psychographic segmentation that considers consumers' activities and interests.

Question 20

Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?
A) individualized marketing
B) niche marketing
C) pinpointed marketing
D) focused marketing
E) one-to-one marketing

Accepted Answer

One-to-one marketing involves customizing products, services, and marketing efforts to meet the specific needs and preferences of individual customers. This approach is often used by firms that sell luxury or custom-made products and services, as they place a high value on providing personalized experiences for their customers.

Quiz 6: Customers, Segmentation, and Target Marketing

Although a market segment can meet all criteria for viability, a firm may choose to not pursue the segment. Which of the following is a reason why this might occur?

After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:

Firms engage in _____ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems.

One of the most successful and well-known tools of _____ segmentation is VALS™ developed by Strategic Business Insights.

The consumer buying process begins when:

_____ is/are the primary reason why the consumer buying process varies across customers, products, and situations.

Which of the following IS NOT an example of mass customization?

Which of the following IS NOT a typical basis used to segment business markets?

The basic assumption of _____ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program.

From the viewpoint of the consumer buying process, what is the difference between a need and a want?

With respect to the consumer buying process, _____ is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information.

Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:

The main advantage of _____ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.

Each of the following statements describes a unique characteristic of the business buying process EXCEPT:

Only the largest firms can execute _____, which involves the development of multiple marketing programs to serve all customer segments simultaneously.

If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the _____ would most likely be Dell, Apple, and HP.

What type of segmentation divides consumer markets into segments using individual factors such as gender, age, income, and education?

What is the key to using behavioral segmentation successfully in consumer markets?

_____ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments.

Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?