Question 1

The majority of North America-based companies have developed the resources and the will to operate in multiple foreign countries.

Accepted Answer

Not all North America-based companies have the resources or strategic intent to operate internationally, as it depends on their size, industry, and business goals.

Question 2

Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products. The company has developed a differentiation strategy based on ________.

Accepted Answer

The differentiation strategy of Ford Motor Company is based on its image, specifically emphasizing quality and toughness of its truck products.

Question 3

Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use household income segmentation.

Accepted Answer

Household income segmentation is an effective way to target wealthy clients and tailor marketing efforts to their specific needs and preferences. By focusing on the shopping habits and buying behaviors of high-income households, Shopping For the Rich and Famous can offer personalized services that are aligned with the interests and values of their affluent clientele.

Question 4

User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.

Accepted Answer

User status segmentation involves categorizing consumers based on their current, past, or potential status as users of a product or service, not on the advantages or features of the product class.

Question 5

Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

Accepted Answer

The correct order is market segmentation, targeting, differentiation, and marketing positioning.

Question 6

Business and consumer marketers use the same set of variables to segment their markets.

Accepted Answer

Business marketers often segment their markets based on factors like industry, company size, and buying situation, while consumer marketers typically use demographic, psychographic, and behavioral variables.

Question 7

Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioural data.

Accepted Answer

Multivariable segmentation systems are designed to identify distinct groups of customers based on various factors including geographic, demographic, lifestyle, and behavioral data. By analyzing these different variables and identifying similarities and differences across groups, marketers can create more targeted and effective marketing strategies for each cluster.

Question 8

Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________.

Accepted Answer

A positioning statement is a formal document that summarizes a company's unique value proposition and how it differentiates itself from its competitors. It would be the best choice for Superior Auto Sales to sum up its company positioning and brand positioning in a formal way.

Question 9

Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use?

Accepted Answer

Neiman Marcus uses a "more-for-more" positioning strategy by claiming superior quality, performance, and style and charging a higher price to cover the higher costs. They are positioning themselves as offering more value for a higher price, which is the essence of the "more-for-more" strategy.

Question 10

For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

Accepted Answer

The answer of For simplicity's sake, most marketers generally limit...

Question 11

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Accepted Answer

Loyalty status as a segmentation approach can be useful and practical for firms, as it helps to identify and cater to the needs of loyal customers, create targeted marketing campaigns, and incentivize customer retention. However, it may not be feasible for smaller or newer firms with a limited customer base or those offering products or services with infrequent purchase cycles. It also requires investing in systems to track and measure loyalty, which may be costly for some firms.

Question 12

Demographic segmentation focuses on different marketing approaches for different time periods of people's lives and different family situations.

Accepted Answer

Demographic segmentation focuses on different marketing approaches for different age groups, genders, income levels, and other demographic characteristics, not different time periods of people's lives and different family situations.

Question 13

Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

Accepted Answer

Psychographic segmentation involves dividing customers based on characteristics such as social class, lifestyle, and personality. This would fulfill the assignment given and address the concerns of the marketing and sales staff. Therefore, recommending psychographic segmentation is the correct approach.

Question 14

LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.

Accepted Answer

The answer of LaGrange Florists segments markets into groups of...

Question 15

Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.

Accepted Answer

Geographic segmentation refers to dividing the market based on geographic units such as nations, regions, and cities. Therefore, the statement is true.

Question 16

Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

Accepted Answer

Economic factors are a fundamental basis for segmenting international markets because they directly influence consumers' purchasing power, preferences, and needs, allowing for more targeted marketing strategies.

Question 17

When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________.

Accepted Answer

Home Depot's value proposition of offering better products at lower prices suggests providing more value for less money, making option B, more-for-less, the correct choice.

Question 18

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Accepted Answer

While geographic proximity can often be a factor in determining consumer behaviour and traits, there are many exceptions to this assumption. Factors such as cultural, economic, and political differences can greatly impact consumer behaviour and may not be directly tied to geographic location.

Question 19

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

Accepted Answer

Gender segmentation has been used in various industries including clothing, cosmetics, toiletries, and magazines.

Question 20

Today, most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

Accepted Answer

This is true. Companies are shifting towards targeted marketing and building relationships with specific customer segments.

Quiz 7: Segmentation, Targeting, and Positioning