Deck 6: Sharpen the Focus: Target Marketing Strategies and Customer Relationship

Question 1

Which of the following is the most accurate generalization of members of Generation Y?

A)Many people in this segment seem determined to have stable families after growing up as latchkey children.
B)Members of this generation are currently responsible for the majority of new start-up businesses in the United States.
C)Members of this generation were born in the years immediately following the end of World War II.
D)Members of this generation are willing to spend money to stay young, healthy, and attractive.
E)Members of this generation are more difficult to reach through television advertising than members of older generations are.

Answer 1

E

Question 2

Baby boomers ________.

A)were born between 1965 and 1966
B)are currently in their 30s and 40s
C)are important to marketers because of the size and wealth of the segment
D)are 65 or older
E)are the parents of Generation X, not Generation Y

Answer 2

C

Question 3

French Canadians,Italian Canadians, and Asian Canadians are all examples of ________ demographic segments.

A)life cycle
B)psychographic
C)ethnicity
D)social class
E)geocoding

Answer 3

C

Question 4

Which of the following is NOT an example of a demographic segmentation variable?

A)lifestyle
B)income and social class
C)ethnicity
D)gender
E)age

Question 5

Which statement is NOT true about the French Canadian segment?

A)The French Canadian segment is becoming a less important segment to marketers.
B)The French Canadian segment is the second largest ethnic market in Canada.
C)French Canadians have an identity of their own.
D)French Canadians have a more regional than national focus.
E)Most French Canadians live in Quebec.

Question 6

Which of the following statements about the steps in the target marketing process is true?

A)The first step in the target marketing process is setting marketing objectives.
B)There are four steps in the target marketing process.
C)The second step in the target marketing process is the identification of all segmentation variables.
D)The final step in the target marketing process is positioning.
E)The target marketing process is not related to positioning.

Question 7

What are the steps, in order, of the target marketing process?

A)segmentation, positioning, targeting
B)segmentation, targeting, and positioning
C)targeting, segmentation, and positioning
D)targeting, positioning, and segmentation
E)positioning, segmentation, and targeting

Question 8

The supermarket sells boxes of pink diapers and blue diapers.This is an example of segmenting by ________.

A)gender
B)age
C)ethnicity
D)social class
E)geocoding

Question 9

The group of Canadian consumers born between 1967 and 1979 are called ________.

A)baby boomers
B)the silent majority
C)Generation Y
D)tweens
E)Generation X

Question 10

The group of Canadian consumers born between 1980 and 1995 are often called ________.

A)baby busters
B)the silent majority
C)Generation Y
D)tweens
E)Generation X

Question 11

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?

A)acculturation
B)segmentation
C)market fragmentation
D)market aggregation
E)positioning

Question 12

Marketers often use generational marketing because members of a generation tend to share the same ________.

A)lifestyle
B)income and social class
C)outlook and priorities
D)psychographics and usage patterns
E)geodemographics

Question 13

Which of the following best defines demographics?

A)statistics that can be used to segment populations on the basis of what people do with a product
B)statistics that can be used to segment populations on the basis of when people use a product
C)qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics
D)statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests
E)statistics that measure observable aspects of a population

Question 14

Which of the following is a true statement about trends related to gender segmentation?

A)The education and income gap between men and women has closed in the latest recession.
B)In the recent recession, women held about three in four of the jobs that were lost.
C)Men are now increasingly likely to marry women with more education and income than they have.
D)In recent decades, the economic gains of marriage have been greater for women than men.
E)Women are now increasingly likely to marry men with more education and income than they have.

Question 15

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants.

A)efficiency; effectiveness
B)scale; positioning
C)investment; cost
D)cost; investment
E)positioning; scale

Question 16

Age, ethnicity, place of residence, and social class are all examples of ________.

A)segmentation variables
B)positioning strategies
C)market fragment strategies
D)psychographics
E)targeting strategies

Question 17

________ is a term for men who are keenly interested in fashion, home design, gourmet cooking, and personal care.

A)Tween
B)Buster
C)Metrosexual
D)Bachelor
E)Slacker

Question 18

Which generation was referred to as "busters" and was thought of as slackers who are cynical about marketing?

A)Generation Y
B)Generation X
C)Baby boomers
D)Millenial
E)Generation I

Question 19

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.

A)market aggregation
B)market positioning
C)economic aggregation
D)disintermediation
E)market fragmentation

Question 20

Which of the following best explains why marketers do not consider social class segments as strictly as they once did?

A)Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework.
B)Due to the Great Recession, members of the upper class have become members of the middle class, and members of the middle class have become members of the lower class.
C)Data related to social class is more complicated and difficult to obtain and analyze than it once was.
D)Social class in the Canada is more related to education and family history than to wealth.
E)Members of the upper and middle classes are unlikely to be attracted to any products marketed toward members of the lower classes.

Question 21

Your firm has decided to localize its products and services to meet local market demands.A good approach to use would be ________ segmentation.

A)geodemographic
B)psychographic
C)usage
D)positioning
E)social class

Question 22

________ is a well-known system based on psychological traits that correlate with consumer behavior; it divides the entire U.S.population into segments and then sells pieces of this information to clients for specific strategic applications.

A)VALS
B)Decitica
C)AIO
D)PRIZM
E)NAICS

Question 23

The 80/20 rule is most directly related to ________ segmentation.

A)demographic
B)behavioral
C)geodemographic
D)socioeconomic
E)psychographic

Question 24

Which of the following most accurately describes PSYTE?

A)a method of removing heterogeneous variables from a target market
B)a method of data mining used to implement market development strategies
C)a database that classifies the Canadian consumers into 60 clusters based on postal code and demographic information
D)a database that classifies the international population into segments based on demographic and geographic characteristics
E)a positioning strategy used in the introduction of new consumer products

Question 25

The segmentation technique that combines geography with demographics is called_____________________.

A)geodemography
B)cultural diversity
C)ethnic segmentation
D)psychography
E)social networking

Question 26

Which three primary consumer motivations are key to the VALS system?

A)faith, family, and finances
B)age, gender, and ethnicity
C)place of usage, time of usage, and frequency of usage
D)ideals, achievement, and self-expression
E)income, education, and geographic location

Question 27

Which of the following is a segmentation technique that combines geography with demographics?

A)geocoding
B)geodemography
C)geodiversity
D)regional generation
E)psychographics

Question 28

According to the long tail approach to selling, ________.

A)the Internet provides fewer opportunities for segmenting markets
B)companies can make the most money by focusing on the "bottom-of-pyramid" market
C)companies should focus on the 20 percent of customers who purchase the greatest volume of their product
D)companies should focus on the 80 percent of customers who purchase the greatest volume of their product
E)companies can make money by selling small amounts of items that only a few people want

Question 29

________ segmentation variables classify consumers on the basis of how they act toward, feel about, or use a product.

A)Demographic
B)Behavioral
C)Geodemographic
D)Socioeconomic
E)Psychographic

Question 30

Which type of segmentation can center on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A)behavioral
B)psychographic
C)needs
D)demographic
E)geocoding

Question 31

During tax season, you're likely to see more TurboTax ads on Google pages, even if you aren't searching for tax software.This is an example of ________ segmentation.

A)geodemographic
B)psychographic
C)usage occasion
D)demographic
E)geocoding

Question 32

________ variables segment markets in terms of shared activities, interests, and opinions.

A)Demographic
B)Ethnographic
C)Geodemographic
D)Socioeconomic
E)Psychographic

Question 33

Which of the following is the best example of the long tail approach to selling?

A)Nearly 20% of the videos delivered by Netflix are older or obscure titles from its vast collection of videos.
B)Kraft Foods focuses on the 20% of U.S.households that purchase 80% of the Miracle Whip the company markets.
C)Barnes & Noble stocks the most popular books and magazines in its retail stores.
D)Google lets advertisers target certain ads to certain segments of search engine users.
E)Staples segments its business-to-business markets based on sales volume.

Question 34

The division of buyers into groups based on lifestyle or personality characteristics is ________ segmentation.

A)behavioral
B)psychographic
C)values
D)demographic
E)needs

Question 35

Which of the following most accurately describes VALS?

A)a system used for psychographic segmentation
B)a database of people who have purchased similar products
C)a strategy for implementing geodemographic segmentation
D)a method of confirming that a chosen target market is representative of the ideal market segment
E)a method of removing heterogeneous variables from a target market

Question 36

Markets can be segmented into group of nonusers, ex-users, potential users, heavy users, and moderate users of a product.This is an example of ________ segmentation.

A)behavioral
B)occasion
C)demographic
D)psychographic
E)geocoding

Question 37

Which of the following is the process of evaluating and selecting the most viable market segment to enter?

A)segmentation
B)differentiation
C)targeting
D)market mixing
E)positioning

Question 38

Business-to-business marketers who look at the size of firms in terms of total sales or number of employees are using ________ to segment their market.

A)Industrial psychographics
B)organizational demographics
C)organizational culture
D)behavior variables
E)usage variable

Question 39

The Chinese Canadian segment of the population ________.

A)is the largest ethnic market segment
B)does not yet receive significant attention from marketers
C)has declined in the last 10 years
D)is the fastest growing minority group in Canada
E)is too geographically dispersed to form a meaningful market segment

Question 40

Companies can customize offerings by ________ so that people who live in certain area wil receive them and others will not.

A)Postal code
B)geodemography
C)geodiversity
D)psychographics
E)usage

Question 41

When the size and purchasing power of a target segment can be determined, it possesses the requirement of having ________.

A)Market potential
B)accessibility
C)Substantial money
D)differentiability
E)profitability

Question 42

Using a ________ targeting strategy, a company develops one or more products for each of several customer groups with different product needs.

A)fragmented
B)homogeneous
C)custom
D)differentiated
E)mass customization

Question 43

Once a(n)________ is set, the next step in positioning is for marketers to finalize the marketing mix.

A)segmentation variable
B)positioning strategy
C)demographic strategy
D)customer relationship management system
E)concentrated target

Question 44

Using ________, a company modifies a basic good or service to meet the needs of a specific individual customer.

A)undifferentiated targeting
B)positioning
C)custom marketing
D)Custom marketing strategy
E)differentiated targeting

Question 45

Mass marketers such as Walmart often ignore market segment differences and target the whole market with one offer.What is this approach to targeting?

A)undifferentiated targeting
B)differentiated targeting
C)target marketing
D)concentrated targeting
E)mass customization

Question 46

When a firm offers one or more products to a single segment, it is using a ________ strategy.

A)fragmented
B)homogeneous
C)custom marketing
D)mass customization
E)concentrated targeting

Question 47

________ means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition.

A)Concentrated targeting
B)Positioning
C)Benefit segmentation
D)Mass customization
E)Customerization

Question 48

A product's position is based on important attributes as perceived by ________.

A)suppliers
B)competitors
C)market conditions
D)target consumers
E)resellers

Question 49

A(n)________ is a distinct image that captures the character and benefits of a good or service.

A)perceptual map
B)target market
C)brand personality
D)segment profile
E)trade promotion

Question 50

A perceptual map is used to ________.

A)compare and contrast consumer psychographic segments
B)create consumer cross-tabulations for marketing research
C)locate consumers within a primary metropolitan statistical area (PMSA)
D)determine how consumers position products in relation to one another
E)identify the critical stage of the targeting process for the marketer

Question 51

To evaluate the different target segments your company is considering, you would look at all of the following factors EXCEPT which one?

A)segment size
B)segment growth
C)segment reachability
D)company culture
E)company resources

Question 52

Innovation, unique product features, and Quality are all examples of ________.

A)brand personalities
B)brand positions
C)perceptual maps
D)Product leadership strategy
E)customer touchpoints

Question 53

A(n)________ would probably include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.

A)geocode
B)NAICS classification
C)segment profile
D)internal market audit
E)customer guide

Question 54

Which of the listed choices is NOT a positioning task?

A)identifying a set of possible competitive advantages
B)surveying frequent uses of the product
C)analyzing competitors' positions
D)finalizing the marketing mix
E)evaluating responses to the marketing mix

Question 55

A viable target market should ________.

A)have needs that can adequately be served by the marketer
B)not be reachable by other organizations
C)have the same needs as similar-sized groups
D)be the most profitable possible target market
E)be the largest possible market

Question 56

An industrial manufacturer that works with one or a few large clients and develops products that only these clients will use is most likely to implement a(n)________ strategy.

A)undifferentiated targeting
B)homogeneous
C)custom marketing
D)bottom-of-pyramid
E)differentiated targeting

Question 57

Which of the following is the narrowest strategy?

A)undifferentiated targeting
B)custom marketing
C)differentiated targeting
D)concentrated targeting
E)mass marketing

Question 58

The first step in developing a positioning strategy is to ________.

A)set the marketing communications budget
B)identify segmentation variables
C)Determine the strategic orientation
D)describe a product with a competitive advantage
E)create target markets

Question 59

A company that uses a(n)________ targeting strategy is appealing to a broad spectrum of people.

A)fragmented
B)undifferentiated
C)concentrated
D)differentiated
E)customized

Question 60

Which of the following best explains why a company would adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy?

A)to more efficiently focus on its CRM strategy
B)to remove the need for disintermediation
C)to move a product to the next stage of its product life cycle
D)to take advantage of economies of scale
E)to reach the underserved "bottom-of-pyramid" consumers

Question 61

________ is the financial value of a customer throughout the lifetime of the customer relationship.

A)Share of customer
B)The customer perceptual map
C)CRM
D)Customer equity
E)The 80/20 rule

Question 62

A retailer that wanted to target prospective grooms between the ages of 21 and 40 who are within six months of their marriage is using ________ segmentation to define its target market.

A)lifestyle
B)behavioral
C)socioeconomic
D)demographic
E)ethnicity

Question 63

CRM firms focus on increasing their ________, not share of market.

A)share of profit
B)share of audience
C)share of segment
D)share of usage
E)share of customers

Question 64

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer.Some want presweetened cereal.Some want fruits and nuts in their cereal.Some people want whole-wheat cereal while others want rice cereal.There are some who like hot cereal and others who like to eat their cereal right out of the box.The diversity of consumers for cereal is an example of ________.

A)market aggregation
B)market similitude
C)economic aggregation
D)disintermediation
E)market fragmentation

Question 65

Which of the following statements about the lifetime value of a customer is true?

A)CRM helps companies identify their customers' lifetime value.
B)All customers have the same lifetime value.
C)A customer's lifetime value is easy to calculate.
D)A company can either increase customer share or a customer's lifetime value, but not both.
E)The value of the customer is related to the value of the brand.

Question 66

Which of the following is true of perceptual maps?

A)They are only used during the new product development process.
B)They are the most effective method for predicting product success.
C)They identify consumer shopping preferences in terms of retail and nonretail locations.
D)They are not useful in business-to-business marketing.
E)They cannot be created without consumer research.

Question 67

Many marketing experts advocate ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer.

A)customer relationship management
B)psychographic segmentation
C)transactional management
D)B2B marketing
E)C2C marketing

Question 68

Demographic variables are so frequently used in market segmentation because they ________.

A)create smaller segments than other methods do
B)create more easily reached segments than other methods do
C)do not involve stereotypes
D)are easy to measure in comparison to many other methods
E)involve fewer attributes to consider than other methods do

Question 69

A company's first step in customer relationship management should be to ________.

A)rank its customers in terms of sales volume
B)identify customers that cost the company money
C)identify types of transactions and determine which will be abandoned
D)identify customers and get to know them in as much detail as possible
E)determine which aspect of the product will be customized to meet the individual needs of its customers

Question 70

When many men in the baby boomer segment started getting gray hair, they were reluctant to use hair dyes made for women even though they were just as eager as women to fight the aging process.To address this reluctance, hair care product manufacturers introduced hair dying systems for men to use on their head and their facial hair.The hair care product manufacturers used ________ segmentation to define their target markets.

A)lifestyle
B)behavioral
C)socioeconomic
D)demographic
E)psychographic

Question 71

Which of the following statements about customer relationship management (CRM) programs is true?

A)The success of a CRM program relies on its use of mass communication channels.
B)CRM programs include information gathered from each customer touchpoint.
C)Internet technology is a barrier to the successful implementation of CRM programs.
D)To succeed, all companies should engage in CRM every time they interact with a customer.
E)Only consumer marketers can benefit from the use of CRM programs.

Question 72

In developing a new shoe, Reebok targeted the youth market.It used ________ segmentation to define its target market.

A)lifestyle
B)behavioral
C)socioeconomic
D)demographic
E)psychographic

Question 73

An increasing number of companies are considering their relationships with customers as financial assets.Such firms measure success by calculating the value of their ________.

A)CRM
B)VALS 2
C)brand personality
D)customer equity
E)positioning

Question 74

In one-to-one marketing, after a marketer has identified customers and knows them in as much detail as possible, the next step is for the marketer to ________.

A)interact with the customers and find ways to improve cost efficiency
B)make efficiency of interactions with customers the priority
C)differentiate these customers in terms of both their needs and their value to the company
D)customize some aspects of the products or services offered to each customer
E)implement a mass customization program

Question 75

To determine ________, firms compare the investments they make in acquiring and retaining customers to the financial return on those investments.

A)segmentation
B)share of customer
C)brand personality
D)customer equity
E)positioning

Question 76

Which of the following is NOT a focus of customer relationship management?

A)customer prioritization
B)share of customer
C)lifetime value of the customer
D)customer equity
E)undifferentiated targeting

Question 77

Companies that successfully practice customer relationship management measure success by ________.

A)share of market and market growth rate
B)business potential and industry potential
C)share of customer and lifetime value of the customer
D)PRIZM and VALS2
E)cost of customer and duration of relationship with customer

Question 78

The owner of a pet grooming salon wants to calculate customer equity.Which of the following would be a step the owner of this pet grooming salon should complete?

A)Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer.
B)Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays.
C)Ask the customer if she is planning on getting any new pets.
D)Investigate how many other pet grooming salons are within five miles to determine the likelihood of this pet owner returning to this salon.
E)Determine the age of the pet to estimate how much longer this customer may need the services of the salon.

Question 79

The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.

A)lifetime value of a customer
B)priority of a customer
C)segmentation of a customer
D)share of a customer
E)equity of a customer

Question 80

CRM stands for ________.

A)consumer relationship marketing
B)consumer retention management
C)customer relationship management
D)customer retention marketing
E)consumer response management