Deck 12: Branding and Market Positioning

Question 1

Segmenting based on very broad geographical or cultural areas is difficult due to our vast global diversity.

Answer 1

True

Question 2

Marriott's development of "Courtyard by Marriott" for the business traveler market is an example of how a hotel chain failed to design a product to fit the needs a specific market segment.

Answer 2

False

Question 3

The VALS approach, as explained in the textbook, has proven to be an ineffective tool for categorizing American, Japanese and British consumers into various segments based on psychological characteristics and demographics.

Answer 3

False

Question 4

The firm "Cohorts" is a company that provides psychographic segmentation which gives names to cohort segments like "Alex & Judith" who represent "Affluent Empty- Nesters."

Question 5

Modern technology is bringing us close to target markets of many, or mass customization.

Question 6

Target markets are drawn from segments.

Question 7

Questions that test for segmentation might be: "Is it homogenous?", "Can it be identified?", "Can it be measured?", "Can it be reached economically?"

Question 8

Price segmentation is a form of psychographic segmentation, only more visible and more tangible.

Question 9

Some of the vacation target markets include the Inners, the Restless, the Adventurers and the Comfortables.

Question 10

Geographic location is probably the original segmentation variable and one of the most widely used in the lodging and restaurant industries

Question 11

The marketing truism that 20 percent of purchases are made by 80 percent of those who use the product or service displays the importance of the heavy, medium and light product/service user.

Question 12

When it comes to the final analysis within one product class, it is almost always price alone that determines the segment.

Question 13

Segments stand alone, with no overlap or sharing of variables.

Question 14

Designated market areas are defined by specific a zip code that correlates and reflects the geographical areas served by television stations located in a central geographic point.

Question 15

Modern technology is leading us further away from the concept of mass customization.

Question 16

The need to segment in the hospitality industry has become increasingly critical due to the intense competition that has become even more evident over time.

Question 17

The "Usage" segmentation which applies specifically to the hospitality industry asks: "How do customers use the product/service?"

Question 18

User segments have an advantage over the geographic, demographic and psychographic segments: by their nature and narrowness they are more predictable.

Question 19

The psychographic segments are based on activities, interests, opinions, self- concepts and life- style behaviors.

Question 20

In marketing, segmentation always precedes differentiation.

Question 21

A demographic variable that describes the emotional and intellectual stages you pass through from childhood to your retirement years as a member of a family is called the _ stage.

A) Journey through life
B) Family life cycle
C) Life
D) None of the above

Question 22

What is the order of the market segmentation process?
I. Needs and wants of the market place
II. Segmenting the market
III. Matching market capabilities
IV. Selecting target markets from identified segments
V. Projecting wants and needs into potential markets

A) I, V, III, II, Then IV
B) V, III, IV, I, Then II
C) V, I, III, II, Then IV
D) I, III, II, V, Then IV
E) I, II, III, IV, Then V

Question 23

Why is it important for a marketing professional to know how to segment a market?

A) Segmentation takes the unique characteristics and separates them out by product class
B) The total market is large and needs to be divided into smaller markets of people that are alike in some way
C) Separate customer segments make it easier to track product usage across the entire consumer base
D) None of the above

Question 24

"Dinks" and "Ecoboomers" are examples of:

A) Eclectographic market segments
B) Geographic market segments
C) Psychographic market segments
D) Demographic market segments

Question 25

segments are based on the benefits that people seek when buying a product.

A) Fear
B) Want
C) Benefit
D) All of the above

Question 26

Consumer behaviorists often categorize buyers by which natures of purchase?

A) Impulse
B) Convenience
C) Rational
D) All of the above

Question 27

What or who does segmentation start with?

A) The competition
B) The proprietor
C) The business
D) The customer

Question 28

RFM stands for _.

A) Recency, frequency and monetary value
B) Relevance, frequency and monetary value
C) Resolution, frequency and monetary value
D) Results, frequency and monetary value

Question 29

Mass customization can be:

A) A way to keep satisfied, loyal, long- term customers
B) The ultimate form of customer differentiation
C) A way to use technology to look at the customer as a "segment of many"
D) Both A & B
E) All of the above

Question 30

When the U.S. federal government defines large metropolitan statistical areas in terms of supposed economic
boundaries, it is called .

A) Designated market areas (DMA)
B) Areas of land (AOL)
C) Metropolitan statistical areas (MSA)
D) B & C only
E) None of the above

Question 31

segmentation is a broad umbrella that covers a wide range of categories, which probably apply more specifically to hospitality businesses than any other type of segmentation.

A) Physical
B) Usage
C) Price
D) Geographic

Question 32

The three strategies for selecting target markets are .

A) Differentiated multi- target
B) Undifferentiated
C) Concentrated
D) A, B & C
E) None of the above

Question 33

A(n) market strategy is when a firm selects a target group within one market segment and pursues it aggressively.

A) Concentrated
B) Differentiated multi- target
C) Undifferentiated
D) None of the above

Question 34

The purpose of differentiation is to:

A) Have the customer react more positively toward our product over the competition
B) Create real or perceived differences between products and services offered
C) Match the marketing plan to the unique behaviors of customer groups in the marketplace
D) Both A & B
E) All of the above

Question 35

Of the following, which is/are the product features that can serve as a basis for differentiation?

A) Create an image that goes beyond specific difference itself
B) Can be easily duplicated
C) Appeal to a particular need or want
D) All of the above
E) None of the above

Question 36

The three segmentation variables discussed in the chapter that are more commonly used are:

A) Geographic, and mental
B) Geographic, demographic and psychographic
C) Geographic, mental and dimensional
D) None of the above

Question 37

What does MSA stand for?

A) Metropolitan Survey Association
B) Metropolitan Survey Areas
C) Metropolitan Statistical Areas
D) Metropolitan Statistical Association

Question 38

Psychographic segments are based on:

A) Interests
B) Activities
C) Opinions
D) All of the above

Question 39

What is demand analysis synonymous with?

A) Segmenting the market
B) Matching the market and capabilities
C) Selecting target markets from identified segments
D) Projecting wants and needs into potential markets

Question 40

Demand analysis includes:

A) An evaluation of need and wants plus willingness and ability to pay
B) Selecting target markets from identified segments
C) Segmenting the market
D) Matching the market and the capabilities
E) All of the above

Question 41

The primary purpose of the DMA analysis with firms is to:

A) Provide hospitality security
B) Research customer loyalty
C) Locate the proper market segment
D) Aid in planning media coverage
E) None of the above

Question 42

What does the R in the PRIZM system stand for?

A) Rating
B) Rare
C) Real
D) Regional
E) None of the above

Question 43

The assumptions cohorts VALS and PRIZM are examples of .

A) Geographic segments techniques
B) Pseudo- graphic segments techniques
C) Topographic segments techniques
D) Psychographic segment techniques

Question 44

What is the main problem with geographic segments?

A) They don't reflect when the "buy" decision is made
B) They don't reflect how the "buy" decision is made
C) They don't reflect why the "buy" decision is made
D) They don't reflect where the "buy" decision is made

Question 45

According to benefit segmentation, which are the possible benefits sought in a hospitality purchase?

A) Comfort
B) Low price
C) Prestige
D) All of the above
E) None of the above

Question 46

refers to how much the customer is worth to an organization.

A) RFM
B) Price consumption
C) Monetary value
D) Importance
E) None of the above

Question 47

The usage segmentation is a broad group that includes which of the following categories?

A) Purpose
B) Nature of purchase
C) Frequency
D) Both A & B
E) All of the above

Question 48

If executed correctly, what can be an important benefit of mass customization?

A) Wealthy patrons
B) Short- term losses
C) Loyal customers
D) Common practices

Question 49

The necessity of market segmentation in the hospitality industry has become:

A) Seemingly impossible
B) More critical
C) Less critical
D) The same as it always has been

Question 50

Pick any three of the segmentation variables listed in the chapter, describe the variables and give examples of each.

Question 51

What is the median age of the Retirees market segment?

A) 60
B) 65
C) 55
D) 57
E) None of the above

Question 52

Explain the fundamental differences between market segmentation and differentiation. Which comes first and why?