Deck 7: Identifying Market Segments and Targets

Question 1

Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news,previews,and opportunities to win prizes.The Foo Fighters are using ________ to reach Generation Y.

A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz

Answer 1

E

Question 2

Establishing and communicating the distinctive benefit(s)of the company's market offering,for each target segment is called ________.

A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Answer 2

B

Question 3

If a marketing manager employs such marketing techniques as online buzz,student ambassadors,cool events,and street teams to reach target markets,the manager is most likely appealing to the ________ market.

A) Generation Z
B) Generation X
C) Generation Y
D) Silent generation
E) Baby boomers

Answer 3

C

Question 4

Which of the following statements about Gen Yers is true?

A) They are selective, confident, and impatient.
B) They are more likely to associate retirement with "the beginning of the end."
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents' standard of living a serious challenge

Question 5

Pampers divides its market demographically on the basis of ________ into prenatal,new baby,baby,toddler,and preschooler.

A) life stage
B) gender
C) age
D) income
E) social class

Question 6

Dennis requests his father to buy him a PlayStation® for his birthday.With respect to consumer decision roles,which role is Dennis currently playing?

A) initiator
B) influencer
C) decider
D) buyer
E) gatekeeper

Question 7

Which of the following statements about Gen Xers is true?

A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.

Question 8

If a marketer decides to segment a market based on neighborhoods,the marketer will have chosen the ________ method of segmentation.

A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral

Question 9

The process of selecting one or more market segments to enter is called ________.

A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research

Question 10

If a marketing manager segments the market into culture-oriented,sports-oriented,or outdoor-oriented groups,he or she is segmenting on the basis of ________.

A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage

Question 11

A ________ consists of a group of customers who share a similar set of needs and wants.

A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level

Question 12

If a marketing researcher uses such names (categories)as Blue Blood Estates,Winner's Circle,Hometown Retired,or Shotguns and Pickups,when doing segmentation research,the marketing researcher is using ________ clusters.

A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS

Question 13

________ is the science of using psychology and demographics to better understand consumers.

A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization

Question 14

Robert is the owner of an automobile manufacturing company.He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration.He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds.He also adds in that the price of the car must be affordable enough for any man making a good salary.In accordance with the given scenario,Robert is trying to segment the market on the basis of ________.

A) occupation
B) family size
C) benefits
D) nationality
E) user status

Question 15

Which of the following statements about market segmentation is true?

A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Question 16

Jose and Erika have just divorced.Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

A) life stage
B) benefits
C) age segment
D) personality type
E) social class

Question 17

Regardless of the type of segmentation scheme used,the key is adjusting the marketing program to recognize ________.

A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets

Question 18

Hilton Hotels customizes rooms and lobbies according to location.Northeastern hotels are sleeker and more cosmopolitan.Southwestern hotels are more rustic.This is an example of ________ segmentation.

A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural

Question 19

Newlyweds in the United States buy more in the first six months than an established household does in five years.Newlyweds are an example of a(n)________ segment.

A) life stage
B) age
C) behavior
D) user status
E) income

Question 20

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes,equipment,and clothing to many of them,Nike is using which of the following marketing formats?

A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Question 21

In the ________ step of the market segmentation process,the marketer determines which demographics,lifestyles,and usage behaviors make each needs-based segment distinct and identifiable.

A) segment "acid test"
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification

Question 22

A company can learn a great deal by analyzing the degrees of brand loyalty.For example,________ can help identify the products' strengths.

A) switchers
B) split loyals
C) antiloyals
D) shifting loyals
E) hard-core loyals

Question 23

In the ________ step of the market segmentation process,the marketer evaluates the segment using criteria such as market growth and market access.

A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment "acid test"

Question 24

If an organization's marketing department wished to create "segment storyboards" to test the attractiveness of each segment's positioning strategy,this action would most likely occur in the ________ step of the segmentation process.

A) needs-based segmentation
B) segment identification
C) segment profitability
D) segment "acid test"
E) marketing-mix strategy

Question 25

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.

A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics

Question 26

The key to attracting potential users,or even possibly nonusers,is ________.

A) understanding the reasons they are not using
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures

Question 27

According to the ________ criterion for useful market segments,a segment should be the largest possible homogenous group worth going after with a tailored marketing program.

A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable

Question 28

A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship.

A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Question 29

A company can learn a great deal by analyzing the degrees of brand loyalty.For example,________ can show the firm which brands are most competitive with its own.

A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals

Question 30

When Amy goes shopping for clothes,she goes into every store in the mall looking for the best deal.She is very price conscious.On the basis of loyalty status,Amy can be described as ________.

A) a switcher
B) a split loyal
C) a shifting loyal
D) a hard-core loyal
E) an antiloyal

Question 31

A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.

A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Question 32

Mothers-to-be are potential users who will turn into heavy users of infant products and services.By targeting mothers-to-be as future heavy users,producers of these products and services are segmenting consumers on the basis of ________.

A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits

Question 33

During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

A) Step 2?segment identification
B) Step 3?segment attractiveness
C) Step 6?segment "acid test"
D) Step 1?needs-based segmentation
E) Step 7?marketing-mix strategy

Question 34

A marketer is interested in segmenting a business market based on urgency of delivery and the size of the order.Which of the following major segmentation variables would the marketer most likely use to assist with the task?

A) purchasing approaches
B) situational factors
C) operating variables
D) personal characteristics
E) demographic variables

Question 35

If a buyer is loyal to two or three different brands of soap,this buyer's loyalty status can be described as being among the ________.

A) switchers
B) shifting loyals
C) split loyals
D) hard-core loyals
E) antiloyals

Question 36

Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content.Pete's loyalty status is best described as ________.

A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher

Question 37

The sale of turkeys in the United States is highest in mid-to late November,as people buy turkeys to serve at Thanksgiving.Grocery stores who specifically advertise turkeys at this time of year are segmenting on the basis of ________.

A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion

Question 38

A marketer is interested in segmenting a business market based on technology and customer capabilities.Which of the following major segmentation variables would the marketer most likely use to assist with the task?

A) demographic variables
B) purchasing approaches
C) situational factors
D) personal characteristics
E) operating variables

Question 39

Linda was buying all her groceries from Home Needs supermarket for the past 5 years.She recently came across The Convenience Store,another supermarket just a few miles away from her place and started buying her groceries from them.Linda can be best described as ________.

A) a split loyal
B) an antiloyal
C) a shifting loyal
D) a hard-core loyal
E) a switcher

Question 40

If a marketer is seeking to segment a business market,which of the following variables is generally felt to be the most important?

A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches

Question 41

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

A) Consumptionism
B) Viral marketing
C) Virtual marketing
D) Regionalization
E) Customerization

Question 42

Which of the following statements is true about the five forces identified by Michael Porter,that determine the intrinsic long-run attractiveness of a market or market segment?

A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question 43

General Motors,a leading American multinational automaker,sells cars for every purpose,purse,and personality.This is an example of ________ marketing.

A) undifferentiated
B) differentiated
C) concentrated
D) niche
E) micro

Question 44

Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

Question 45

To meet the ________ criterion of useful market segments,it must be possible to formulate effective programs for attracting and serving the segments.

A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable

Question 46

Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?

A) It makes the company almost bulletproof to competitors' actions.
B) It diversifies the firm's risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.

Question 47

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs,a strong market presence,operating economies through specializing in production,distribution,and promotion.

A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage

Question 48

If married and unmarried women respond similarly to a sale on perfume,these hypothetical segments fail the ________ criterion for useful market segments.

A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable

Question 49

Illustrations of personality segmentation would include culture-oriented,sports-centered,or outdoor-oriented subsegments.

Question 50

A market segment consists of a group of consumers who share a similar set of needs and wants.

Question 51

Life stage defines a person's age.

Question 52

Volkswagen concentrates on the small-car market and Porsche on the sports car market.These would be examples of what is called ________.

A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage

Question 53

In ________ marketing,the firm operates in several market segments and designs different products for each segment.

A) individual
B) undifferentiated
C) differentiated
D) concentrated
E) niche

Question 54

In evaluating different market segments,the firm must look at two factors: the segment's overall attractiveness and ________.

A) the company's objectives and resources
B) the effectiveness of the suppliers
C) the flexibility of legal rules governing the business
D) the socio-economic infrastructure
E) the global nature of the product

Question 55

In ________ marketing,the firm ignores segment differences and goes after the whole market with one offer.

A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated

Question 56

A local service company has decided to segment its market based on occupation;therefore,it has chosen a form of demographic segmentation for its approach.

Question 57

Marketers usually identify niches by ________.

A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways

Question 58

When a symphony orchestra targets people who have broad cultural interests,rather than only those who regularly attend concerts,the orchestra is targeting ________.

A) market mavens
B) strategic segments
C) supersegments
D) occasion segments
E) psychodemographic segments

Question 59

If your assignment was to create a value proposition and product-price positioning strategy for each segment,based on the segment's unique customer needs and characteristics,you would be in which of the following steps of the segmentation process?

A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment "acid-test"

Question 60

Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a single sized bottle with the advertising theme "Coke is it" is an example of ________ marketing.

A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated

Question 61

The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

Question 62

Members of Generation Y are generally open to overt branding practices and a "hard sell," making product placements in computer and video games a popular way to reach this cohort.

Question 63

Members of the same generational cohort share the same major cultural,political,and economic experiences and have similar outlooks and values.

Question 64

Characterize psychographic segmentation.

Question 65

A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

Question 66

To be useful,market segments must be measurable.

Question 67

Situational factor segmentation variables in the business marketplace include urgency,specific application,and size of order.

Question 68

Companies following a market specialization strategy offer one product to as many markets as possible.

Question 69

Briefly describe product specialization and market specialization.

Question 70

Give an example of how a company might target products to children in an ethical way.

Question 71

An attractive niche consists of customers having a distinct set of needs.

Question 72

The main dimensions of the VALS segmentation framework are consumer motivation and consumer
resources.

Question 73

Psychographics is the science of using psychology and demographics to better understand consumers.

Question 74

All attempts to target marketing to children,minorities,or other special segments are discriminatory and unethical.

Question 75

The norms,language nuances,buying habits,and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy,rather than added as an afterthought.

Question 76

The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question 77

Identify the four market segment groups based on brand loyalty status and list what a company can learn from analyzing the degrees of brand loyalty.

Question 78

A segment is attractive when there are actual or potential substitutes for the product.

Question 79

Briefly describe the steps in the segmentation process.

Question 80

A company is customerized when it is able to respond to individual customers by customizing its products,services,and messages on a one-to-one basis.