Deck 8: Segmenting and Targeting Markets

Question 1

In the context of product positioning, the distinctions between products can be either real or perceived.

Answer 1

True

Question 2

Wester Helix, a watch manufacturing company, is a brand most associated with men. They also manufacture products for women, but these products are less popular. In order to increase the sale of these products, Wester Helix opens a sister company that caters solely to women. In this scenario, Wester Helix uses age segmentation.

Answer 2

False

Question 3

The final step in market segmentation is selecting segmentation descriptors.

Answer 3

False

Question 4

Customers looking for luxury want products that exhibit careful craftsmanship, timeless design, prestige, and exclusivity. This type of market is segmented by ethnicity.

Question 5

In the context of gender segmentation, which of the following statements is true?

A)Women are increasingly part of all-male markets.
B)Women are an inexperienced purchasing group, unlike men.
C)Men make 70 to 80 percent of purchases of consumer goods each year.
D)Men tend to research investments in-depth more than women do.

Question 6

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Question 7

In the context of age segmentation, baby boomers expect everything to be instantaneous because they have never been introduced to a world without the Internet.

Question 8

Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.

Question 9

Promotion is one of the components that forms a marketing mix.

Question 10

Women tend to accumulate money for the sake of accumulation and rarely associate it with security, independence, or quality of life.

Question 11

A concentrated strategy can be disastrous for a firm that is not successful in its narrowly defined target market.

Question 12

According to family life cycle segmentation, consumption patterns among people of the same age and gender differ because they are in different stages of the family life cycle.

Question 13

Wesley Electronics Inc. is a company that manufactures electronic gadgets. The marketing team of the company spends a great deal of money on advertising in order to create awareness about the company's products among potential customers. It employs various methods of advertising, such as print, broadcast, and online advertising. According to the steps of market segmentation, Wesley Electronics Inc. is most likely:

A)selecting a market or product category for study.
B)designing and implementing marketing mixes.
C)profiling and analyzing market segments.
D)selecting segmentation descriptors for a market.

Question 14

According to family life cycle segmentation, young married or divorced couples with children have high liquid assets.

Question 15

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Question 16

Dynamic segmentation approaches adjust to fit the changes that occur in customers' lives.

Question 17

Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.

Question 18

Ethnic segmentation involves segmenting potential customers into neighborhood lifestyle categories.

Question 19

Single-variable segmentation has the advantage of being more precise than multiple-variable segmentation.

Question 20

With the personal and targeted nature of customer relationship management (CRM), consumers spend more time making purchase decisions.

Question 21

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

A)results in cannibalization of products.
B)involves the selection of a market niche to target the marketing efforts of a firm.
C)views the market as one big market with no individual segments.
D)reduces the production and marketing costs of a firm.

Question 22

Mass-marketing efforts will continue to be used by marketers:

A)because consumers have more time to make purchase decisions.
B)to gather detailed information on customers, which is not possible in direct marketing.
C)to remind consumers of a product.
D)because they allow marketers to target customers with extremely relevant offerings.

Question 23

_____ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds.

A)Multidimensional scaling
B)Product differentiation
C)Perceptual mapping
D)Product tracing

Question 24

Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car Gwen 2.0 that becomes highly successful in the market because of its cheap price and excellent specifications. However, this leads to a significant decline in the sales of Sanders Inc.'s other cars. This scenario exemplifies _____.

A)segmentation
B)differentiation
C)cannibalization
D)personalization

Question 25

Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It also has goods of varying prices to suit people of various income levels. In this way, it caters to different sections of the society. Volten Inc. demonstrates positioning by _____.

A)product class
B)application
C)competitor
D)product user

Question 26

Kirksand Airlines is well known for providing excellent customer service to its flyers. The staff members enquire and listen carefully to each flyer's wants and needs. If a flyer has any specific requests, the staff members ensure that they are immediately attended to. In this scenario, Kirksand Airlines has based its customer relationship management on the trend of _____.

A)personalization
B)mass marketing
C)loyalty
D)technology

Question 27

Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers on the basis of demographic variables such as income, ethnic background, and family life cycle. In this context, these demographic variables are examples of _____.

A)positioning bases
B)segmentation bases
C)product classes
D)market positions

Question 28

Which of the following statements is true of lifestyle segmentation?

A)It divides people into groups based on their traits, attitudes, and habits.
B)It divides a market by the amount of product bought or consumed.
C)It divides people into market segments according to the benefits they seek from a product.
D)It divides people into groups based on socioeconomic characteristics such as income and education.

Question 29

The editorial board of Gamers' Page, a magazine that primarily caters to people who are enthusiastic about sports and gaming, targets people who enjoy games. In this scenario, Gamers' Page uses _____.

A)gender segmentation
B)geographic segmentation
C)psychographic segmentation
D)family life cycle segmentation

Question 30

In the context of customer relationship management (CRM), _____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

A)repositioning
B)undifferentiated targeting
C)cannibalization
D)new technology

Question 31

_____ is a common base of demographic segmentation.

A)Product benefit
B)Usage rate
C)Geography
D)Income

Question 32

Which of the following is a psychographic segmentation variable?

A)Usage rate of a product
B)Geodemographics
C)Gender
D)Ethnicities

Question 33

Pine Groove, a cosmetics brand that primarily caters to women, wants to reach out to the less-traditional male market. It conducts research and develops a new product especially for men. In this context, Pine Groove uses _____.

A)ethnicity segmentation
B)age segmentation
C)gender segmentation
D)psychographic segmentation

Question 34

Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy an old car rather than a new one. Therefore, it develops one marketing mix that targets the low-income group. In this scenario, Tennot Inc. most likely uses a(n)_____.

A)undifferentiated targeting strategy
B)multisegment targeting strategy
C)concentrated targeting strategy
D)universal targeting strategy

Question 35

In the context of family life cycle segmentation, which of the following statements is true?

A)Young divorced couples without children have the lowest purchase rate.
B)Middle-aged married couples with or without children have high average purchase of durables.
C)Young married couples with children have high liquid assets.
D)Middle-aged divorced couples without dependent children are least satisfied with their financial position.

Question 36

Which of the following is an advantage of a multisegment targeting strategy?

A)It significantly reduces the risk of product cannibalization.
B)It provides economies of scale in manufacturing and marketing.
C)It does not require firms to tailor marketing mixes to the preferences of market segments.
D)It decreases the costs involved in product design, marketing research, and management.

Question 37

In the context of family life cycle segmentation, middle-aged married couples with or without children:

A)are hard to influence with advertising.
B)are better off financially than young married couples with or without children.
C)buy medical care products that aid health, sleep, and digestion.
D)have the highest purchase rate.

Question 38

Which of the following statements is true of market segmentation?

A)It helps marketers design marketing mixes that match the characteristics of one or more segments.
B)It allows marketers to use an undifferentiated targeting strategy.
C)It allows marketers to adopt a single marketing mix across all market segments.
D)It helps marketers focus on satisfying customer needs rather than meeting the organization's objectives.

Question 39

Which of the following statements is true of markets?

A)They are composed of people or organizations.
B)They thrive only on government funds and subsidies.
C)They allow consumers to take products for free.
D)They influence consumers to buy products they do not need.

Question 40

Which of the following statements is true of a concentrated targeting strategy?

A)It allows a firm to serve two or more well-defined market segments simultaneously.
B)It is often adopted by small firms to compete effectively with much larger firms.
C)It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
D)It results in cannibalization of products.

Question 41

A firm that adopts an undifferentiated targeting strategy assumes that:

A)a market is composed of narrowly defined market segments.
B)small firms can compete effectively with large firms.
C)concentrating all resources on understanding the needs of a single market results in cannibalization.
D)individual customers have similar needs that can be met with a common marketing mix.

Question 42

_____ helps marketers develop marketing programs tailored to prospective buyers who live in small regions or who have very specific lifestyle.

A)Benefit segmentation
B)Family life cycle segmentation
C)Ethnic segmentation
D)Geodemographic segmentation

Question 43

Laelle is a confectionery company that manufactures candies. It does not use specific strategies to target children while marketing its products. Instead, it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Laelle uses a(n) _____.

A)multisegment targeting strategy
B)individual targeting strategy
C)undifferentiated targeting strategy
D)concentrated targeting strategy

Question 44

Explain product differentiation as a positioning strategy used by marketers to distinguish their products from competitors.

Question 45

_____ is a positioning base that focuses on a personality or type of consumer.

A)Product class
B)Attribute
C)Product user
D)Emotion

Question 46

To be useful, a segmentation scheme must produce segments that:

A)are composed of people with different product needs.
B)are composed of people with different characteristics.
C)are large enough to warrant developing and maintaining a special marketing mix.
D)are divided according to the North American Industry Classification System.

Question 47

_____ is market segmentation on the basis of personality, motives, lifestyles, and geodemographics.

A)Benefit segmentation
B)Family life cycle segmentation
C)Usage-rate segmentation
D)Psychographic segmentation

Question 48

The purpose of market segmentation is to:

A)change consumer attitudes and beliefs toward a product.
B)divide a market into submarkets of equal size and equal number of customers.
C)eliminate the need for defining marketing objectives.
D)enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

Question 49

_____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.

A)Geographic segmentation
B)Benefit segmentation
C)Demographic segmentation
D)Usage-rate segmentation

Question 50

Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of appreciation for shopping frequently at its store. The trend portrayed in this customer relationship management technique is _____.

A)loyalty
B)technology
C)time savings
D)standardization

Question 51

In the context of age segmentation, the tween and teenage cohort following the Millennials is sometimes called _____.

A)Generation X
B)the baby boomer generation
C)Generation Z
D)the Silent Generation

Question 52

Companies that successfully implement customer relationship management (CRM) tend to:

A)use an undifferentiated targeting strategy.
B)customize the goods and services offered to their customers.
C)assume that customers have similar needs that can be met with a common marketing mix.
D)minimize the use of database technology.

Question 53

Trower Inc. has launched a new smartphone in two different variants. Both variants of the smartphone have a similar design but have different hardware specifications. The company uses this strategy so that the smartphone can be afforded by most people. In this scenario, Trower Inc. most likely uses _____.

A)usage-rate segmentation
B)income segmentation
C)gender segmentation
D)age segmentation

Question 54

Which of the following is a similarity between a stock market and a labor market?

A)Both use a barter system to facilitate the exchange of products.
B)Both are composed of people who are unwilling to spend large sums of money for products or services.
C)Both are composed of people with specific wants that can be satisfied by particular product categories.
D)Both deal in selling high-end, consumer durable products.

Question 55

Which of the following statements is true of product positioning?

A)It assumes that consumers compare products solely on the basis of price.
B)There are two positioning bases, application and price.
C)The quality of competing products does not influence product positioning.
D)Consumer goods marketers are particularly concerned with positioning.

Question 56

Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and wardrobes. It divides its consumer market into several groups of people who have similar interests in wooden furniture. In this context, dividing its consumer market most likely:

A)allows Terra Corp.to meet the markets' needs with a single marketing mix.
B)enables Terra Corp.to define customer needs and wants precisely.
C)eliminates the need for defining marketing objectives.
D)allows Terra Corp. to use an undifferentiated targeting strategy.

Question 57

In the context of the strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy?

A)It results in market segments that are either too small or that shrink because of environmental changes.
B)It often results in sterile, unimaginative product offerings that have little appeal to anyone.
C)It results in cannibalization of products.
D)It increases the production and marketing costs of a firm.

Question 58

_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, baby boomers, and seniors.

A)Ethnic segmentation
B)Family life cycle segmentation
C)Age segmentation
D)Psychographic segmentation

Question 59

A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.

A)undifferentiated targeting strategy
B)niche targeting strategy
C)individual targeting strategy
D)concentrated targeting strategy

Question 60

Which of the following occurs when sales of a new product cut into sales of a firm's existing products?

A)Cannibalization
B)Product churning
C)Backward invention
D)Commodification

Question 61

How do marketers use customer relationship management (CRM) as a targeting tool?

Question 62

What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.

Question 63

Explain the steps involved in segmenting a market.

Question 64

Discuss the importance of market segmentation.