Deck 7: Sharpening the Focus: Target Marketing Strategies and Cus-Tomer Relationship Management

Question 1

Reebok chose the basketball player Allen Iverson,with whom the would identify as a David among Goliaths.

A)socioeconomic segment
B)behavioral segment
C)target market
D)customization target
E)ethnic segment

Answer 1

C

Question 2

is the financial value of customer relationships through the lifetime of the relationships.

A)80/20 rule
B)Customer equity
C)Brand personality
D)Target market
E)VALS

Answer 2

B

Question 3

The is/are the potential profit(s)generated by a single customer's purchase of a firm's products over the customer's lifetime.

A)mass customization
B)usage occasions
C)VALS
D)share of the customer
E)lifetime value of a customer

Answer 3

E

Question 4

are a segment of urban males who are keenly interested in fashion,home design,gourmet cooking,and personal care.

A)Mature men
B)Multisexuals
C)Metrosexuals
D)Teen boys
E)Boomer men

Question 5

Reebok targeted the youth market.It used segmentation to define its target market.

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

Question 6

Segmenting by starts at an early age with pink diapers for girls and blue diapers for boys.

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

Question 7

Reebok achieved some success with Allen Iverson,the basketball player,endorsing the brand because Iverson appealed to the youth market,who was Reebok's _ .

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

Question 8

Successful one- to- one marketing is most dependent on .

A)positioning
B)geodemography
C)segmentation
D)CRM
E)repositioning

Question 9

Successful firms have learned that a way NOT to compete is by .

A)ignoring customers' needs
B)establishing relationships with individual customers on a one- to- one basis
C)communicating through dialogue
D)using CRM
E)listening to customer feedback

Question 10

The baby busters known for being slackers who are cynical about marketing are the segment.

A)baby boomer
B)millenial
C)mature
D)generation X
E)generation Y

Question 11

Average collectors of an artist's collectible miniatures will buy four new ones each year.The collectibles are available at a number of different retail locations and from several different catalog retailers.To ensure she gets a greater ,the owner of The Door Gift Shop sends her customers,who are collectors,a postcard every time the store adds a new one to her store's inventory.

A)customer allocation
B)synergistic feedback
C)share of communication
D)economic share
E)share of customer

Question 12

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

A)mass customization
B)usage occasions
C)perceptual map
D)segment profile
E)share of customers

Question 13

Weekly Read is a newspaper designed to keep school children informed of what is going on in their country and their world.It has sixteen different formats geared to the reading capabilities of children from pre- kindergarten through high school.It uses _ _ segmentation to define its target markets.

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

Question 14

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

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

Question 15

is an effective way to identify the firm's best customers,stay on top of their needs,and increase their satisfaction.

A)Customer relationship management
B)Customer relations marketing
C)Consumer relationship management
D)Consumer relationship marketing
E)Customer relationship marketing

Question 16

Companies that successfully practice have different goals,use different measures of success,and look at customers in some different ways.

A)consumer relationship management
B)customer relations marketing
C)customer relationship management
D)customer relationship marketing
E)consumer relationship marketing

Question 17

Which statement is NOT true about the Hispanic American segment.

A)The Hispanic segment is growing rapidly.
B)Hispanics have a youthful composition.
C)Hispanics tend to be brand loyal especially to products made in their country of origin.
D)Hispanic households are larger on average than the rest of U.S.households.
E)The Hispanic segment is becoming a less important segment to marketers.

Question 18

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)positioning
B)customer equity
C)brand personality
D)VALS
E)target market

Question 19

A goal of calculating the lifetime value of a customer is to .

A)figure the estimated total profit generated by a customer over his or her lifetime
B)reduce share of customer
C)reduce total communications costs
D)develop appropriate responses in transactional marketing situations
E)increase market share

Question 20

A building supply company has many high- volume as well as low- volume customers.Which of the following would be an inefficient cost means of communication for this supply company to implement regarding its low- volume customers?

A)Give each low- volume customer the company web address so this customer can check building supply products being sold by this company.
B)Once or twice a year,mail a new product catalog to each customer.
C)Have a sales representative make a personal one- on- one appointment with each and every low- volume customer at least twice a month.
D)Every November,send each customer a new calendar that has the phone number of the building supply company printed on the cover.
E)Every few months,have a customer service representative from the building supply company call each customer.

Question 21

The airline industry can benefit from the implementation of CRM by .

A)reducing phone call volume
B)automating crucial information
C)identifying favored destinations
D)identifying flying patterns
E)all of the above

Question 22

When many men in the baby boomer segment started getting gray hair,they were reluctant to use hair dyes made for women even though men were just as eager as women to fight the aging process.As a result,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 its target markets.

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

Question 23

Nutrisystem used ,which is the process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics ,in analyzing the dieters market.

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

Question 24

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 a rice cereal.There are some who like hot cereal and others who like to eat their cereal right of the box.The diversity of consumers for cereal is an example of _ _.

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

Question 25

Marketers segment regional markets more precisely using that is,people who live near one another and share similar characteristics.

A)ethnicity
B)income
C)culture
D)geocoding
E)geodemography

Question 26

Age,ethnicity,geographical region,and lifestyle are all examples of .

A)positioning strategies
B)synergistic samples
C)segmentation variables
D)homogenous populations
E)sampling heuristics

Question 27

An area that is NOT a focus of customer relationship management (CRM)is _.

A)high value customer
B)customer equity
C)share of customer
D)lifetime value of the customer
E)promotions in a retail store

Question 28

If a company wanted to send e- mail to African American professional managers and business owners to promote its new employment service,it could buy a list of e- mail addresses of people who have visited BlackEnterprise.com and who have given permission for the marketing of their names and e- mail addresses.This company would be using segmentation variables.

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

Question 29

Segments based on include recognizing groups such as African Americans,Hispanic Americans,and Asian Americans.

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

Question 30

A soup company found its canned nacho cheese sauce was too hot for Americans in the East and not hot enough for those in the West and the Southwest.As a result,the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants.The company is using segmentation to satisfy these different markets.

A)geographic
B)lifestyle
C)psychographic
D)consumerist
E)usage

Question 31

To market Suave shampoo,Unilever used PRIZM to identify neighborhoods with high concentrations of young working women.These women responded best to advertising messages that Suave is inexpensive,yet will make their hair "look like they spend a fortune on it." What segmentation tool did Unilever use in this example?

A)psychographics
B)projective techniques
C)geodemography
D)ethnography
E)the hierarchy of needs

Question 32

Magazines targeted to people who love to in- line skate,to people who enjoy cooking,and to people who would prefer a simpler lifestyle use segmentation variables.

A)pychographic
B)geodemographic
C)demographic
D)socioeconomic
E)ethnographic

Question 33

A goal of CRM is to reap a return on the investments made in customer relationships and maximize the value of a firm's .

A)brand personality
B)VALS
C)customer equity
D)positioning
E)target market

Question 34

In one- to- one marketing,after a marketer has identified customers and gets to know them in as much detail as possible,then the next step the the marketer .

A)needs to differentiate these customers in terms of both their needs and their value to the company
B)must interact with the customers and find ways to improve cost efficiency
C)needs to differentiate these customers in terms of only their value to the company
D)must strive toward effectiveness of the interactions with the customers
E)needs to customize some aspects of the products or services they offer to each customer

Question 35

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

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

Question 36

Why would a company adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy?

A)to remove the need for disintermediation
B)to take advantage of economies of scale
C)to more efficiently focus on its CRM strategy
D)to move a product to the next stage of its product life cycle
E)all of the above

Question 37

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to males,as the endorser of the brand.

A)gender
B)geographic location
C)psychographics
D)lifestyle
E)age

Question 38

Positioning strategies often try to create a for a good or service,a distinct image that captures its character and benefits.

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

Question 39

The Asian American segment of the population .

A)will never be attractive to target marketers
B)is the largest ethnically based market segment
C)is the fastest growing minority group in the United States
D)has been an economically important market segment for almost five decades
E)has skrunk in the last 10 years

Question 40

The group of American consumers born between 1965 and 1978 are called _.

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

Question 41

A retailer that wanted to target prospective grooms between the ages of twenty- one and forty who are within six months of their marriage is using segmentation to define its target market.

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

Question 42

Companies that successfully practice customer relationship management (CRM)measure success by .

A)business potential and industry potential
B)current future value of the customer and share of market
C)a perceptual map and share of voice
D)share of market and net present value of customers over a period of years
E)share of customer and lifetime value of the customer

Question 43

According to the writings of Don Peppers and Martha Rogers,there is/are _ _ step(s)in one- to- one marketing.

A)one
B)two
C)three
D)four
E)five

Question 44

Harley- Davidson's user profile includes both thrill- seeking and affinity for a countercultural image.In addition to demographics,H- D uses segmentation to target their markets.

A)socioeconomic
B)psychographic
C)behavioral
D)geodemographic
E)value analysis

Question 45

Average collectors of an artist's collectible miniatures will buy four new ones each year.The collectibles are available at a number of different retail locations and from several different catalog retailers.As part of her _ program,the owner of The Door Gift Shop sends her customers,who are collectors,a postcard every time the store adds a new one to her store's inventory.

A)marketing with a product- orientation
B)transactional marketing programs
C)product fragmentation strategy
D)undifferentiated marketing
E)CRM

Question 46

People who are regular visitors to ScFoi.com (a website maintained by a science fiction cable network)and those who are regular visitors to BHG.com (a website maintained by the producers of BHG- TV and the publishers of a women's magazine)belong to different segments.

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

Question 47

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)The value of the customer is related to the value of the brand.
E)A company can either increase customer share or a customer's lifetime value but not both.

Question 48

A perceptual map is used to .

A)identify psychographic segments such as people who cheat on their income taxes or steal from their employers
B)identify at which stage of the targeting process the marketer needs to be
C)locate consumers within a primary metropolitan statistical area (PMSA)
D)create consumer cross- tabulations for marketing research
E)determine how consumers position products in relation to one another

Question 49

If Sam described Coca- Cola as an all- American,Pepsi- Cola as a young daredevil,and Dr.Pepper as a nonconformist,he would be describing the sodas' .

A)segment profiles
B)trade promotions
C)brand personalities
D)target markets
E)FAB profiles

Question 50

The Why Bros.Collection is a catalog retailer that sells clothing and collectibles to aviation enthusiasts.Its might be men and women between the ages of twenty- five and fifty- five who are risk takers.They belong to organizations such as the American Legion,the VFW,and the National Rifle Association of America.They are either pilots themselves or have close ties to a pilot.They prefer camping to taking a luxury cruise.Annually,they spend $900 on items purchased from nonstore retailers.

A)segment profile
B)internal market audit
C)customer guide
D)customer potential assessment
E)value analysis

Question 51

Customizing Web advertising so that people who log on in different places will see ad banners for local businesses is known as _ .

A)geodemography
B)positioning
C)income
D)ethnicity
E)geocoding

Question 52

Starting in February and ending sometime in late April,department stores promote the fact that they stock a wide range of formal attire to wear to high school proms.The dresses and tuxedoes are available year- round,but because most proms are held in the spring that is when the heaviest promotion of these products occur.This spring promotion to high school students is based on usage occasion and uses both _ and segmentation.

A)socioeconomic,psychographic
B)demographic,behavioral
C)geographic,demographic
D)geodemographic,sociocultural
E)psychographic,demographic

Question 53

data is useful in understanding why some people who are older than sixty- five lead active lives,take regular vacations,and eat a healthy diet although others in the same age segment do not exercise,eat and drink to excess,and refuse to walk more than five feet to pick up their mail.

A)Geoclustering
B)Socioeconomic
C)Ethnocentric
D)Demographic
E)Psychographic

Question 54

CRM stands for _ .

A)consumer relationship management
B)consumer relationship marketing
C)customer relationship marketing
D)customer relationship management
E)customer relations marketing

Question 55

The only time many people entertain is during November and December when their homes are decorated for the holidays.The increase in ads for prepared trays of food to be served at these functions is directly related to _ _ segmentation.

A)geodemographic
B)sociocultural
C)geographic
D)demographic
E)behavioral

Question 56

A viable target market should .

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

Question 57

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to the youth market,as the endorser of the brand.

A)gender
B)geographic location
C)age
D)lifestyle
E)psychographics

Question 58

CRM firms focus on increasing their share of the customer's business because _.

A)it is usually easier but more expensive to keep an existing customer than to get a new customer
B)customers come and go so quickly
C)it is easier and less expensive to keep an existing customer than to get a new customer
D)it is harder but less expensive to keep an existing customer than to get a new customer
E)it is always hard and expensive to get new customers

Question 59

A condition of exists today as a result of people's diverse interests and backgrounds,which divide them into numerous groups with distinct wants and needs.

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

Question 60

To determine customer equity,firms .

A)develop a target marketing strategy
B)analyze the investments they make in acquiring customers
C)compare one relationship enhancement with another relationship enhancement
D)calculate the value of the brand equity
E)analyze the investments they make in plant and equipment

Question 61

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

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

Question 62

The dentist's office calling to remind you of your scheduled appointment for the next day is an example of _ _.

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

Question 63

The first step in customer relationship management (CRM)for a company is to .

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

Question 64

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

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

Question 65

A viable target market should .

A)be reachable through marketing communications
B)have homogeneous wants and needs that differ from those of other segments
C)be measurable
D)be large enough to be profitable now and in the future
E)all of the above

Question 66

helps firms communicate with and serve individual customers by better understanding their needs.

A)Concentrated targeting
B)Target marketing
C)Differentiated targeting
D)Undifferentiated targeting
E)CRM

Question 67

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

A)customer potential assessment
B)internal market audit
C)segment profile
D)value analysis
E)customer guide

Question 68

facilitates one- to- one marketing and allows the firm to talk to individual customers and adjust elements of their marketing strategy based on how each customer reacts.

A)Repositioning
B)CRM
C)Positioning
D)Segmentation
E)Geodemography

Question 69

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

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

Question 70

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)Socioeconomic reporting
B)PRIZM
C)VALS2
D)Geodemographic
E)Behavioral analysis

Question 71

Optimistic rebels looking for a blank canvas for self expression are the segment.

A)mature
B)generation Y
C)generation X
D)millenial
E)baby boomer

Question 72

The VALS system categorizes consumers as .

A)innovators,early adopters,late adopters,or laggards
B)technically oriented,people- oriented,or task- motivated
C)principle- oriented,status- oriented,or action- oriented
D)risk takers or risk aversives
E)leaders or followers

Question 73

An important aspect of customer relationship management (CRM)is that it .

A)requires organizations to look at customers as partners
B)requires organizations to view their customers as adversaries
C)creates clear win- lose situations
D)can be implemented using any form of mass communication channel
E)allows marketers to create consumer wants and needs

Question 74

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

A)To succeed,all companies should engage in CRM every time they interact with a customer.
B)Only consumer marketers can benefit from the use of CRM programs.
C)Internet technology is viewed as a barrier to the implementation of CRM programs.
D)CRM programs include any touchpoint that is a point of interface between he customer and a company.
E)The success of a CRM program relies on its use of mass communication channels.

Question 75

If Reebok began marketing to the world's soccer and track athletes in addition to basketball players,it would add two .

A)target markets
B)lifestyle markets
C)age segments
D)gender segments
E)psychographic segments

Question 76

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

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

Question 77

PRIZM is _ _.

A)a positioning strategy used in the introduction of new consumer products
B)a method of removing heterogeneous variables from a target market
C)a method of data mining used by marketing managers to implement market development strategies
D)a method of confirming that the chosen target market is representative of the ideal market segment
E)a database that classifies every U.S.zip code according to demographic and lifestyle characteristics

Question 78

A _ strategy allows a company to identify its best customers,stay on top of their needs,and increase their satisfaction.

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

Question 79

Recognizing that some people eat cereal because of its nutritional value,that some people eat cereal because it is easy to prepare,and some eat cereal because it tastes good is part of the process.

A)positioning
B)acculturation
C)customerization
D)market aggregation
E)bsegmentation

Question 80

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

A)B2B marketing
B)interactive communications
C)customer relationship management (CRM)
D)management information system (MIS)
E)transactional management