Question 1

The business world has seen an explosion of
A) advertising agencies.
B) research firms.
C) websites.
D) competitors.
E) customer segments.

Accepted Answer

E

Question 2

A marketer that does not recognize customer needs and provides all customers with only one offer is practising
A) market segmentation.
B) mass marketing.
C) personal selling.
D) competitive positioning.
E) narrowcasting.

Accepted Answer

Mass marketing is when a marketer does not recognize customer needs and provides all customers with only one offer, hoping that the broad appeal of the product will be enough to generate sales. This approach ignores market segmentation and individual customer preferences.

Question 3

To overcome the limitations of demographics as a segmentation variable, researchers turned to
A) geographic segmentation.
B) income segmentation.
C) age segmentation.
D) gender segmentation.
E) psychographic segmentation.

Accepted Answer

Psychographic segmentation overcomes the limitations of demographic segmentation by considering consumers' personality traits, values, interests, lifestyles, and attitudes. It helps to identify consumers with similar behavior patterns, preferences, and purchasing habits, even if they belong to different demographic groups, and create more targeted and personalized marketing messages or offers.

Question 4

Cessna, the aircraft manufacturer, focuses its efforts on serving the needs of the corporate customer. This is an example of
A) a product strategy.
B) customer segmentation.
C) sales execution.
D) cross-functional alignment.
E) a marketing communications strategy.

Accepted Answer

The statement describes the practice of customer segmentation, which involves identifying and targeting specific groups of customers with specific needs and preferences. Cessna has identified corporate customers as its target market and is tailoring its products and services to meet their needs. This is an example of customer segmentation.

Question 5

W. L. Gore & Associates successfully marketed its shred-proof dental floss, Glide, by targeting
A) supermarkets.
B) drug stores.
C) seniors.
D) dentists.
E) children.

Accepted Answer

W. L. Gore & Associates marketed its shred-proof dental floss, Glide, by targeting dentists. This allowed them to reach a larger audience through recommendations from professionals.

Question 6

With only one value proposition, a business wastes resources because
A) it is segmenting its customers.
B) it is building brand image.
C) customer satisfaction levels are high.
D) it is over-serving or under-serving customer needs.
E) it is creating value for the customer.

Accepted Answer

Having only one value proposition may result in a business over-serving or under-serving customer needs, as different segments of customers may have different preferences or requirements. This could lead to a waste of resources as the business may be focusing its efforts on a proposition that does not meet the needs of its target market.

Question 7

Targeting upmarket travellers and training staff to accommodate their every need is an example of the Ritz-Carlton's
A) research strategy.
B) financial strategy.
C) marketing communications strategy.
D) segmentation strategy.
E) public relations strategy.

Accepted Answer

Targeting upmarket travellers is an example of segmentation strategy, which involves identifying and targeting specific customer groups based on their unique characteristics and needs. Training staff to accommodate their every need is also a part of this strategy, as it requires a deep understanding of the target segment's preferences and expectations. The Ritz-Carlton is known for its exceptional customer service, which is a result of their effective segmentation and staff training strategies.

Question 8

Supermarkets and drug stores require manufacturers to pay for putting products on the shelves. This process is known as
A) merchandising fees.
B) markups.
C) marketing fees.
D) cooperative advertising.
E) listing fees.

Accepted Answer

The process of manufacturers paying supermarkets and drug stores for putting their products on the shelves is specifically known as listing fees. Merchandising fees refer to fees charged for the promotion and display of products in-store, markups refer to the increase in price between the product's cost and its selling price, marketing fees refer to fees charged for specific marketing initiatives, and cooperative advertising refers to joint advertising efforts between manufacturers and retailers.

Question 9

Without market segmentation, salespeople
A) do not know what to offer customers.
B) increase prices.
C) charge for the value they create.
D) withhold too much from the customer.
E) determine the marketing communications strategy.

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. Without market segmentation, salespeople would not know what type of product or service to offer to which customer group. They would not have a clear understanding of what the customer wants or needs, leading to confusion and possible loss of sales.

Question 10

In a survey of executives at 200 large firms, this percentage reported they had conducted a major segmentation exercise during the previous two years.
A) 14%
B) 25%
C) 42%
D) 59%
E) 70%

Accepted Answer

The answer of In a survey of executives at 200...

Question 11

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs, it is
A) wasting resources.
B) creating value for the customer.
C) segmenting its customers.
D) devising a positioning strategy.
E) saving time and resources.

Accepted Answer

Offering one-on-one prenatal counseling to every expectant couple regardless of their needs is a waste of resources as not every customer may require or benefit from this service. It would be more efficient and effective to segment customers based on their specific needs and offer counseling services accordingly, rather than offering a one-size-fits-all approach.

Question 12

Business success depends on segmenting markets in a way that is
A) based on marketing research.
B) determined by the sales function.
C) different from competitors.
D) based on geographic distribution.
E) determined by the marketing function.

Accepted Answer

The answer of Business success depends on segmenting markets in...

Question 13

Customers differ based on
A) their willingness to pay.
B) the size of the sales force.
C) the market share of the business.
D) the marketing communications strategy.
E) the sales execution plan.

Accepted Answer

Customers differ based on their willingness to pay, which relates to their buying power and the value they put on the product or service being offered. The other options may be relevant factors for a company, but they do not directly impact the differences between customers.

Question 14

Segmenting customers by demographic variables is
A) highly effective.
B) cost-effective.
C) time-consuming.
D) rarely effective.
E) superior to using psychographic variables.

Accepted Answer

The answer of Segmenting customers by demographic variables is
A) highly...

Question 15

Segmenting and targeting customers enables a business to dramatically
A) expand its distribution.
B) increase its advertising spending.
C) improve its profitability.
D) expand product development.
E) increase market share.

Accepted Answer

Segmenting and targeting customers allows a business to focus its efforts and resources on the most profitable customer groups. By tailoring products, pricing, and marketing messages to specific segments, businesses can improve their profitability by increasing sales and reducing costs associated with ineffective marketing or product development.

Question 16

Businesses that try to be all things to all people
A) conduct extensive marketing research.
B) lack a differentiated position in the marketplace.
C) save money on marketing communications.
D) manage customer value.
E) understand customer needs.

Accepted Answer

Businesses that try to be all things to all people lack a differentiated position in the marketplace, which can lead to confusion among customers and a lack of brand loyalty. Conducting extensive marketing research, managing customer value, and understanding customer needs are important aspects of successful business strategies, but they are not directly related to the issue of trying to be all things to all people. Saving money on marketing communications may be a consideration for some businesses, but it is not a relevant factor in this context.

Question 17

By offering all customers the same value proposition, businesses run the risk of
A) customers becoming less price-sensitive.
B) a competitor entering the market to satisfy unmet needs.
C) customer segmentation.
D) providing direction to the sales force.
E) reducing resources.

Accepted Answer

By offering all customers the same value proposition, businesses may fail to meet the specific needs of certain customers. This creates an opportunity for a competitor to enter the market and offer a more tailored value proposition to those customers. This is why customer segmentation and targeting is important for businesses to differentiate themselves and satisfy the needs of their specific target audience.

Question 18

The easiest way to segment customers is by
A) psychographics.
B) beliefs.
C) opinions.
D) attitudes.
E) geography.

Accepted Answer

Geographic segmentation is the easiest and most straightforward way to segment customers. It involves dividing the market into different geographic units, such as countries, regions, cities, or neighborhoods, based on common demographic, economic, cultural, or environmental characteristics. This approach is simple to implement, as it relies on readily available data sources, and allows marketers to target customers based on their location and proximity to the company's outlets or distribution channels.

Question 19

How did General Motors compete against Henry Ford, the consummate mass marketer?
A) by offering only one automobile colour
B) by increasing advertising spending
C) by expanding the sales force
D) by segmenting the customer base
E) by expanding distribution

Accepted Answer

General Motors competed against Henry Ford by segmenting the customer base. They offered different models at different price points to appeal to different segments of the market. Ford, on the other hand, only offered one model at a fixed price, which limited his market share.

Question 20

Businesses must focus on fewer customer segments and serve them well with fewer brands, otherwise they face
A) increased competition.
B) increased distribution.
C) escalating costs.
D) smaller product development budgets.
E) smaller marketing communications budgets.

Accepted Answer

Serving too many customer segments with too many brands can lead to escalating costs, including increased marketing and advertising expenses, inventory costs, and production costs. Focusing on fewer customer segments and brands can help a business streamline its operations and reduce costs.

Quiz 31: Choosing Which Customers to Serve

The business world has seen an explosion of

A marketer that does not recognize customer needs and provides all customers with only one offer is practising

To overcome the limitations of demographics as a segmentation variable, researchers turned to

Cessna, the aircraft manufacturer, focuses its efforts on serving the needs of the corporate customer. This is an example of

W. L. Gore & Associates successfully marketed its shred-proof dental floss, Glide, by targeting

With only one value proposition, a business wastes resources because

Targeting upmarket travellers and training staff to accommodate their every need is an example of the Ritz-Carlton's

Supermarkets and drug stores require manufacturers to pay for putting products on the shelves. This process is known as

Without market segmentation, salespeople

In a survey of executives at 200 large firms, this percentage reported they had conducted a major segmentation exercise during the previous two years.

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs, it is

Business success depends on segmenting markets in a way that is

Customers differ based on

Segmenting customers by demographic variables is

Segmenting and targeting customers enables a business to dramatically

Businesses that try to be all things to all people

By offering all customers the same value proposition, businesses run the risk of

The easiest way to segment customers is by

How did General Motors compete against Henry Ford, the consummate mass marketer?

Businesses must focus on fewer customer segments and serve them well with fewer brands, otherwise they face