Deck 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Answer 1

E

Question 2

Which of the following variables are the most popular for marketers to use in segmenting customer groups?

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

Answer 2

C

Question 3

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

Answer 3

D

Question 4

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Question 5

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning

Question 6

________ involves actually distinguishing the firm's market offering to create superior customer value.

A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Question 7

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Question 8

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.

A) Occupation
B) Education
C) Ethnicity
D) Religion
E) Age

Question 9

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Question 10

Which of the following is NOT one of the major variables used in segmenting consumer markets?

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

Question 11

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Question 12

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Question 13

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.

A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Question 14

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Question 15

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning

Question 16

Explain the four major steps in designing a customer-driven marketing strategy.

Question 17

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.

A) buyers are too numerous
B) companies vary widely in their abilities to serve different market segments
C) buyers are varied in their needs and buying practices
D) companies need more information to offer the right products to the right customers
E) buyers are widely scattered

Question 18

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Question 19

What is differentiation?

Question 20

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

Question 21

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

A) operating characteristics
B) loyalty status
C) usage rate
D) geographic location
E) benefits sought

Question 22

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

A) benefits sought
B) loyalty status
C) usage rate
D) user status
E) occasion

Question 23

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

A) gender segmentation
B) income segmentation
C) benefit segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Question 24

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

A) gender segmentation
B) psychographic segmentation
C) occasion segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Question 25

Which of the following is true about multivariable segmentation systems?

A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined target groups.

Question 26

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

A) gender
B) benefit
C) occasion
D) income
E) geographic

Question 27

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic

Question 28

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.

A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Question 29

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

A) Consumers tend to pay more for products that are targeted at their respective age group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

Question 30

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.

A) weather patterns
B) psychographics
C) ethical traits
D) budgets and financial status
E) personal characteristics

Question 31

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

Question 32

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

Question 33

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Question 34

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

Question 35

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Question 36

Which of the following is NOT a benefit of using multivariable segmentation systems?

A) help companies identify key customer segments
B) help companies reach key customer segments more efficiently
C) help companies more accurately price their products to appeal to key customer segments
D) help companies better understand key customer segments
E) help companies tailor market offering to the needs of the key customer segments

Question 37

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.

A) occasion segmentation
B) benefit segmentation
C) age and life-cycle segmentation
D) gender segmentation
E) behavioral segmentation

Question 38

In the context of behavioral segmentation, who among the following is a potential user?

A) Anita, who recently had a baby
B) Peter, who recently changed his job
C) Mary, who enrolled as a graduate student in a university last year
D) Gina, who opened a dental clinic in Orange County
E) Raj, who is planning a trip to Hawaii with friends

Question 39

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes

Question 40

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

Question 41

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?

A) income segmentation
B) psychographic segmentation
C) gender segmentation
D) intermarket segmentation
E) occasion segmentation

Question 42

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

A) political factors
B) legal factors
C) geographic location
D) economic factors
E) cultural factors

Question 43

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?

A) geographic
B) political
C) demographic
D) personality
E) cultural

Question 44

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

A) psychographic
B) demographic
C) occasion
D) benefit
E) intermarket

Question 45

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous

Question 46

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

A) geographic location
B) economic factors
C) cultural factors
D) political factors
E) sociocultural factors

Question 47

Market segments that can be effectively reached and served are ________.

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

Question 48

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

A) geographic
B) psychographic
C) benefit
D) age and life-cycle
E) occasion

Question 49

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

A) income
B) age-group
C) occasion
D) benefit
E) cross-market

Question 50

Business information services such as Experian Marketing Services and Nielsen help marketers to ________.

A) save significant amounts of money on shipping products
B) spend more time identifying potential customers
C) learn more specific details from consumers about their products
D) segment people and locations into marketable groups of like-minded consumers
E) expand their product offerings to interested clients and provide high-quality service to them

Question 51

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation.

A) intermarket
B) loyalty
C) life-cycle
D) income
E) psychographic

Question 52

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

A) Geographic
B) Occasion
C) Psychographic
D) Benefit
E) Demographic

Question 53

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

A) benefit
B) age and life-cycle
C) psychographic
D) geographic
E) gender

Question 54

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.

A) demographic
B) psychographic
C) geographic
D) occasion
E) benefit

Question 55

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

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

Question 56

A market segment that is large enough or profitable enough to serve is ________.

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

Question 57

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

A) occasion
B) geographic
C) income
D) benefit
E) psychographic

Question 58

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

A) measurable
B) profitable
C) substantial
D) actionable
E) competitive

Question 59

Which of the following refers to a cultural factor in the context of segmenting international markets?

A) receptivity of foreign firms
B) economic development of the country
C) population income levels
D) stability of the government
E) values and attitudes

Question 60

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation.

A) psychographic
B) income
C) geographic
D) occasion
E) benefit

Question 61

Why must marketers guard against stereotypes when using age and life-cycle segmentation?

Question 62

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
In the scenario, Ruben has segmented his market based on ________.

A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics

Question 63

Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Question 64

Intermarket segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

Question 65

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

Question 66

How does loyalty status enhance a company's understanding of its consumers?

Question 67

Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

Question 68

Through market targeting, companies divide large, diverse markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

Question 69

Briefly describe occasion segmentation.

Question 70

Explain the different segmentation variables used in segmenting consumer markets.

Question 71

List three variables that are used in segmenting business markets.

Question 72

Different soft drinks target different personalities. This is an example of ________ segmentation.

A) psychographic
B) demographic
C) occasion
D) life-cycle
E) benefits

Question 73

Define psychographic segmentation.

Question 74

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

Question 75

Why are demographic factors the most popular bases for segmenting customer groups?

Question 76

When segmenting by user status, markets are segmented into light, medium, and heavy product users.

Question 77

Briefly describe geographic segmentation.

Question 78

Marketers usually limit their segmentation analysis to only one major variable.

Question 79

Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Question 80

Psychographic segmentation divides buyers into different segments based on lifestyle or personality characteristics.