Question 1

A marketing research study by a motor oil refiner finds that rural area homeowners are much more apt to change their car's oil themselves rather than use a mechanic or a quick-oil-change service. As a result, the firm is increasing its sales of motor oil in rural areas to such mass merchandisers as Kmart and Wal-Mart. Which segmentation base is the firm using?
A) Heavy-half theory
B) Geographic demographics
C) Personal demographics
D) Consumer lifestyles

Accepted Answer

The firm is using geographic demographics as its segmentation base, focusing on rural area homeowners to tailor its distribution strategy.

Question 2

An industrial marketer of thermostats has decided to target the 10 largest air conditioner, refrigerator, and dehumidifier manufacturers that are located in the Northeast. The firm is using which segmentation base?
A) Geographic demographics only
B) Personal demographics only
C) Lifestyle factors only
D) Geographic demographics and personal demographics

Accepted Answer

The firm is targeting manufacturers based on their geographic location (Northeast) and their size, which relates to personal demographics (largest manufacturers).

Question 3

A bookstore aims its efforts at Asian-American consumers. The store stocks books, records, and calendars aimed at this market segment. This illustrates
A) personal demographic segmentation.
B) consumer lifestyle segmentation.
C) undifferentiated marketing.
D) differentiated marketing.

Accepted Answer

The answer of A bookstore aims its efforts at Asian-American...

Question 4

A copier marketer has organized its sales force on a market basis with a separate sales force for manufacturers, retailers, and the government. Its strategy is based on
A) benefit segmentation.
B) geographic segmentation.
C) the heavy-half theory.
D) personal demographics.

Accepted Answer

The answer of A copier marketer has organized its sales...

Question 5

Research conducted by a maker of exercise equipment indicates that individuals that purchase more than $400 worth of exercise equipment exercise more than five hours per week, are weight conscious, and are concerned with their health. The firm should utilize which segmentation base?
A) Consumer lifestyles
B) The heavy-half theory
C) Personal demographics
D) Usage experience

Accepted Answer

The correct segmentation base is consumer lifestyles because the description focuses on behaviors (exercising more than five hours per week), attitudes (weight consciousness), and values (health concern), which are all components of consumer lifestyles.

Question 6

Which statement about the heavy-half theory is NOT correct?
A) Less than 20 percent of a market can account for 80 percent or more of a product's purchases.
B) The heavy-half theory does not apply to organizational consumers.
C) The heavy-half segment may have greater competition than light-usage segments.
D) The heavy-half segment may require different product attributes than regular or light-usage segments.

Accepted Answer

The heavy-half theory can apply to both individual and organizational consumers, suggesting that a small portion of consumers (whether individuals or organizations) can account for a large portion of purchases. This theory is not limited to individual consumer behavior.

Question 7

About 160 manufacturers use about one-half of all general-purpose synthetic rubber. To marketers, this group comprises what segment?
A) Benefit
B) Personal demographic
C) Consumer lifestyle
D) Heavy half

Accepted Answer

The term "heavy half" refers to the segment of consumers or users who account for a disproportionately large part of the market consumption or demand. In this context, the 160 manufacturers using about one-half of all general-purpose synthetic rubber are considered the "heavy half" because they represent a significant portion of the market's consumption.

Question 8

Which of these best illustrates benefit segmentation?
A) The purchase of a shampoo by teenagers due to a celebrity endorsement
B) The purchase of an antidandruff shampoo by a consumer with a perceived dandruff problem
C) The purchase of a shampoo based on brand loyalty
D) The purchase of a shampoo based on a $1 off coupon

Accepted Answer

Benefit segmentation involves dividing a market based on the specific benefits consumers seek from the product. In this case, choosing an antidandruff shampoo because of a dandruff problem directly aligns with seeking a specific benefit (dandruff relief) from the product.

Question 9

Swatch aims its watches at the consumer group that is concerned with fashion at a reasonable price. This target market represents a
A) consumer lifestyle segment. 
B) heavy-half segment.
C) personal demographic segment.
D)benefit segment.

Accepted Answer

The answer of Swatch aims its watches at the consumer...

Question 10

Which of these statements about the VALS 2 typology is NOT correct?
A) It places consumers into segments based on their innovation and resources.
B) It seeks to explain why and how consumers make purchase decisions.
C) It had to be tailored to fit the Japanese culture.
D) It can be used to explain organizational consumer behavior.

Accepted Answer

VALS 2 typology is designed to understand individual consumer behavior, not organizational consumer behavior.

Question 11

In contrast to the VALS 2 model of consumer behavior, the Social Styles model
A) studies the behavior of organizational consumers.
B) divides consumers into eight segments on the basis of self-orientation and resources.
C) assumes that resources increase from youth to middle age and then decline with old age.
D) presupposes that makers are the largest group.

Accepted Answer

The Social Styles model focuses on the behavior of organizational consumers, unlike the VALS 2 model which is more oriented towards individual consumer behavior based on psychological traits and values.

Question 12

Undifferentiated marketing is most effective when demand is
A) clustered.
B) diffused.
C) homogeneous.
D) concentrated.

Accepted Answer

Undifferentiated marketing is most effective when the demand across the market is homogeneous, meaning the preferences and needs of the consumers are similar across the entire market. This allows a company to use a single marketing strategy to reach all segments.

Question 13

A small paint manufacturer produces paint that is specially formulated to be used with wrought iron railing and furniture that is placed outdoors. The company should be engaged in which target market approach?
A) Differentiated marketing
B) Product differentiation
C) Concentrated marketing
D) Undifferentiated marketing

Accepted Answer

Concentrated marketing focuses on a narrow market segment, offering specialized products or services. In this case, the paint manufacturer targets a specific niche (wrought iron railing and furniture for outdoor use), which aligns with the concentrated marketing approach.

Question 14

A firm can avoid the majority fallacy by
A) focusing on saturated geographic markets.
B) concentrating on the large-sized markets.
C) avoiding large-sized markets.
D) evaluating the number and quality of competitors in each market relative to the market's size.

Accepted Answer

The majority fallacy can be avoided by evaluating the number and quality of competitors in each market relative to the market's size, rather than just focusing on the size of the market. This approach helps in identifying markets where the firm can effectively compete and differentiate itself.

Question 15

Which target market approach most closely resembles a niche strategy?
A) Concentrated marketing
B) Differentiated marketing
C) Benefit segmentation
D) Undifferentiated marketing

Accepted Answer

Concentrated marketing focuses on a specific, well-defined segment of the market, which aligns with the essence of a niche strategy. This approach targets a smaller, more specific group of customers with tailored products or services, similar to how a niche strategy operates by focusing on a narrow market segment.

Question 16

A manufacturer of pre-cooked meals wants to change its marketing strategy to increase sales and to lower costs. It plans to shift from offering a selection of Greek and Italian foods to now offering only Italian pasta-based dishes. This manufacturer is moving away from
A) concentrated marketing.
B) differentiated marketing.
C) benefit segmentation.
D) undifferentiated marketing.

Accepted Answer

Differentiated marketing involves targeting several market segments with different offerings for each. By moving from offering both Greek and Italian foods to only Italian pasta-based dishes, the manufacturer is reducing the diversity of its offerings, thus moving away from a differentiated marketing strategy.

Question 17

Which target market approach involves the most complicated market planning process?
A) Differentiated marketing
B) Product differentiation
C) Concentrated marketing
D) Undifferentiated marketing

Accepted Answer

Differentiated marketing involves targeting several market segments and designing separate offers for each, making the planning process more complicated compared to the other approaches.

Question 18

A paint manufacturer produces paint in 1-gallon containers for the do-it-yourself market and in 5-gallon containers for professional painters. The firm practices
A) differentiated marketing.
B) concentrated marketing.
C) undifferentiated marketing.
D) ultramarketing.

Accepted Answer

Differentiated marketing is when a company creates campaigns that appeal to at least two market segments or target groups. In this case, the paint manufacturer targets both the do-it-yourself market with 1-gallon containers and professional painters with 5-gallon containers, indicating a strategy of differentiated marketing.

Question 19

Which strategy has the greatest threat of a blurred brand image?
A) Product differentiation
B) Benefit segmentation
C) Differentiated marketing
D) Undifferentiated marketing

Accepted Answer

The answer of Which strategy has the greatest threat of...

Question 20

The major difference between simple trend analysis and complex trend analysis is that simple trend analysis does NOT consider
A) economic or seasonal factors.
B) consumer survey data.
C) market share.
D) sales force surveys.

Accepted Answer

Simple trend analysis typically involves looking at historical data to predict future outcomes without considering external factors such as economic or seasonal variations.

Quiz 10: Developing a Target Market Strategy

An industrial marketer of thermostats has decided to target the 10 largest air conditioner, refrigerator, and dehumidifier manufacturers that are located in the Northeast. The firm is using which segmentation base?

A bookstore aims its efforts at Asian-American consumers. The store stocks books, records, and calendars aimed at this market segment. This illustrates

A copier marketer has organized its sales force on a market basis with a separate sales force for manufacturers, retailers, and the government. Its strategy is based on

Research conducted by a maker of exercise equipment indicates that individuals that purchase more than $400 worth of exercise equipment exercise more than five hours per week, are weight conscious, and are concerned with their health. The firm should utilize which segmentation base?

Which statement about the heavy-half theory is NOT correct?

About 160 manufacturers use about one-half of all general-purpose synthetic rubber. To marketers, this group comprises what segment?

Which of these best illustrates benefit segmentation?

Swatch aims its watches at the consumer group that is concerned with fashion at a reasonable price. This target market represents a

Which of these statements about the VALS 2 typology is NOT correct?

In contrast to the VALS 2 model of consumer behavior, the Social Styles model

Undifferentiated marketing is most effective when demand is

A small paint manufacturer produces paint that is specially formulated to be used with wrought iron railing and furniture that is placed outdoors. The company should be engaged in which target market approach?

A firm can avoid the majority fallacy by

Which target market approach most closely resembles a niche strategy?

A manufacturer of pre-cooked meals wants to change its marketing strategy to increase sales and to lower costs. It plans to shift from offering a selection of Greek and Italian foods to now offering only Italian pasta-based dishes. This manufacturer is moving away from

Which target market approach involves the most complicated market planning process?

A paint manufacturer produces paint in 1-gallon containers for the do-it-yourself market and in 5-gallon containers for professional painters. The firm practices

Which strategy has the greatest threat of a blurred brand image?

The major difference between simple trend analysis and complex trend analysis is that simple trend analysis does NOT consider