Question 1

Businesses in the same industry don't generally compete with each other.

Accepted Answer

Businesses in the same industry often compete with each other for customers, market share, and resources, which is a fundamental aspect of market economies.

Question 2

Peggy Deardon's DVDs classifies its rental movies according to categories such as "Action," "Comedy," "Foreign," "Children's," and so on.Which of the following is Peggy Deardon's primary standard for segmenting its market?

Accepted Answer

The answer of Peggy Deardon's DVDs classifies its rental movies...

Question 3

Market segments can be a group of potential customers in a geographic location.

Accepted Answer

Market segments can indeed be defined by geographic location, grouping potential customers based on where they live or work, as one of several ways to segment a market.

Question 4

When a Domino's delivery person brings a pepperoni pizza to your dorm room,this is an example of _____.

Accepted Answer

The delivery of a pizza to your dorm room is an example of place utility, which refers to making goods or services physically available or accessible to potential customers. In this case, the convenience of having the pizza delivered directly to where you live adds value by saving you the time and effort of going out to get it.

Question 5

___________is an example of ownership utility.

Accepted Answer

Ownership utility involves the process of transferring a product's ownership from one party to another. A real estate agent helping you buy a home directly facilitates this transfer, thereby creating ownership utility.

Question 6

Taking an online course gives you which type of utility?

Accepted Answer

Time utility is the benefit derived from having a product or service available when it is needed. Taking an online course gives you the flexibility to learn at your own pace and on your own schedule, which can be a major benefit for busy people.

Question 7

Which of the following is a market segment?

Accepted Answer

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs, interests, and priorities. People who live in the same climate, individuals who have adopted the same lifestyle, and different age groups can all represent different market segments based on geographical, psychographic, and demographic criteria, respectively.

Question 8

Within the footwear industry there are several groups of customers,each of which is called a(n)_____.

Accepted Answer

The answer of Within the footwear industry there are several...

Question 9

A _____ is a narrowly defined group of potential customers with a fairly specific set of needs.

Accepted Answer

A niche refers to a narrowly defined group of potential customers with a fairly specific set of needs, distinguishing it from broader market segments or the entire market.

Question 10

All of the following are types of utility that customers value except _____.

Accepted Answer

Product utility refers to the usefulness or value that a product has in fulfilling a want or need. In the context of marketing and economics, utility typically refers to the types of value that make goods or services desirable to consumers, such as time, place, and form. However, "product" itself is not categorized as a type of utility but is rather the subject to which these types of utility (time, place, and form) are applied to enhance its value.

Question 11

A market segment is best characterized as a group of _____.

Accepted Answer

A market segment refers to a group of potential customers who share common characteristics, making them a distinct category within a broader market. These characteristics can include demographics, interests, needs, or purchasing behavior, which businesses target with specific marketing strategies.

Question 12

To research an industry,you begin by looking at smaller sectors of the industry.

Accepted Answer

The answer of To research an industry,you begin by looking...

Question 13

An industry is a group of related businesses.

Accepted Answer

An industry consists of businesses that produce similar goods or services, grouped together based on their primary business activities.

Question 14

If you've concluded that you have a potential product for which people will pay money,your next step is to _____.

Accepted Answer

The answer of If you've concluded that you have a...

Question 15

A niche is a widely defined group of potential customers with a fairly broad set of needs.

Accepted Answer

A niche refers to a more narrowly defined group of potential customers with specific and specialized needs, distinguishing it from broader market segments.

Question 16

Customers buy products to satisfy _____ needs and expect to derive some value or _____ from them.

Accepted Answer

Customers purchase products to fulfill unmet needs and anticipate gaining some form of benefit from them, which can include solving a problem, improving their life, or providing enjoyment.

Question 17

Which of the following is the smallest division of customers?

Accepted Answer

A niche is the smallest division of customers, focusing on a specific, well-defined segment of the population that has unique preferences or needs.

Question 18

You might want to subdivide a segment further to isolate a market.

Accepted Answer

The answer of You might want to subdivide a segment...

Question 19

An example of place utility would be:

Accepted Answer

The answer of An example of place utility would be:
...

Question 20

When a soap manufacturer adds liquid soap to its product line,the manufacturer is providing which type of utility?

Accepted Answer

Form utility is created when a company changes the physical form of a product to make it more useful or desirable for consumers. By adding liquid soap to its product line, the soap manufacturer is altering the form of its product (from perhaps a solid bar to a liquid), thereby creating form utility.

Quiz 7: Product Design and Development