Question 1

The clustering techniques that can be used in segmenting
A)eliminate the need for management intuition and judgment.
B)group people together into heterogeneous product-market segments.
C)try to find similar patterns within sets of data.
D)allow managers to ignore segmenting dimensions.
E)None of these answers is correct.

Accepted Answer

Clustering techniques try to find similar patterns within sets of data.Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments.

Question 2

Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it's time for the next oil change.This is an example of a ________ system.
A)customer relationship management
B)qualifying dimensions
C)positioning matrix
D)geographic targeting
E)clustering

Accepted Answer

With customer relationship management (CRM),the seller fine-tunes the marketing effort with information from a detailed customer database.The database stores information that is useful for segmentation.

Question 3

Business-to-business markets,with very large customers,have typically
A)treated customers individually as segments of one.
B)mass marketed the same products to all customer segments.
C)delivered the same marketing mix to all customer segments.
D)reduced their personalization efforts to the lowest levels possible.
E)avoided applying the principles behind customer relationship management.

Accepted Answer

The ultimate in personalization occurs when firms consider each customer a unique segment.Business-to-business markets,with very large customers,have typically treated customers individually as "segments of one."

Question 4

How can the current location of target customers help marketing managers?
A)It helps decide whether the customer should be served.
B)It helps describe their market in terms of the products they sell.
C)It helps identify a group of customers with similar needs.
D)It helps in making offers to visit the store and make a purchase.
E)It helps marketers gather demographic information.

Accepted Answer

Many marketing managers would like to know when target customers are near their stores.With that information,they might be able to make those customers an offer to get them to visit the store and make a purchase.That kind of information is becoming a reality through the increasing use of smart phones.

Question 5

Customer relationship management (CRM)helps consumer marketers
A)limit their personalization efforts.
B)treat all submarkets as a single huge market.
C)reduce their focus on local customers.
D)deliver a different marketing mix to different customer segments.
E)ignore the differences in the needs and preferences of target customers.

Accepted Answer

A customer database stores information that is useful for segmentation.Analytic software aids in identifying customer segments,so that each can be delivered a different marketing mix.

Question 6

A detailed customer database,containing past purchases and other segmenting information,is used to focus marketing efforts on individual customers in a
A)clustering management system.
B)product positioning matrix.
C)product differentiation matrix.
D)diversification management system.
E)customer relationship management system.

Accepted Answer

With customer relationship management (CRM),the seller fine-tunes the marketing effort with information from a detailed customer database.This usually includes data on a customer's past purchases as well as other segmenting information.

Question 7

Customer relationship management (CRM)helps consumer marketers
A)limit their personalization efforts.
B)treat all submarkets as a single huge market.
C)reduce their focus on local customers.
D)deliver the same marketing mix to all customer segments.
E)treat customers individually as segments of one.

Accepted Answer

Business-to-business markets,with very large customers,have typically treated customers individually as "segments of one." CRM helps consumer marketers do the same.

Question 8

Every new customer at Five Elements Spa is asked to register his or her personal details,which includes the customer's age,purpose of visit,and contact information.With this information,the company regularly keeps in touch with its customers,reminding them of their next appointments,new spa offers,and any other promotions.The database is used to predict a customer's next visit to the spa based on his or her previous visits.It also helps the company design service packages to suit the customer's individual needs.In this scenario,Five Elements Spa is using
A)corporate governance.
B)social audit.
C)customer relationship management.
D)supply chain management.
E)service design prototyping.

Accepted Answer

CRM data is generally used by firms to develop a prediction score for each customer.The database stores information that is useful for segmentation.Analytic software aids in identifying customer segments,so that each can be delivered a different marketing mix.

Question 9

When evaluating international markets,the marketing manager should
A)focus primarily on consumer markets because foreign business markets are in general too risky.
B)not worry very much about segmenting because marketing concepts are not very well developed in most other economies.
C)consider the whole "foreign market" as a segment.
D)use broad criteria,such as geographic region or stage of economic development,to define submarkets before further segmenting.
E)treat each foreign market as a separate segment.

Accepted Answer

Marketers segment by country or region looking at demographic,cultural,and other characteristics,including stage of economic development.

Question 10

The ultimate in personalization occurs when
A)merging multiple submarkets.
B)targeting a segment of one.
C)identifying generic markets.
D)creating opportunities in niche markets.
E)offering extended warranties.

Accepted Answer

The ultimate in personalization occurs when firms consider each customer his or her own segment.Business-to-business markets,with very large customers,have typically treated customers individually as "segments of one."

Question 11

The first step in segmenting international markets is to
A)develop a marketing mix.
B)treat all the countries in the "foreign market" as one segment.
C)segment by country or region-looking at demographic,cultural,and other characteristics.
D)list the suppliers who serve the market.
E)consider the number,size,kind,and location of business and organizational customers.

Accepted Answer

Marketers segment by country or region looking at demographic,cultural,and other characteristics,including stage of economic development.This may help them find regional or national submarkets that are similar.

Question 12

Segmenting in international markets can be more challenging than segmenting in domestic markets because
A)there is less diversity in the key segmenting dimensions.
B)there is often more data available about key segmenting dimensions.
C)critical data is often less available and less dependable.
D)profit is the balancing point that determines the marketing mix; and the markets are homogenous between and heterogeneous within.

Accepted Answer

Critical data is often less available and less dependable as firms move into international markets.

Question 13

In the context of segmenting international markets,which of the following statements is true?
A)Segmenting based on demographic,cultural,and other characteristics helps find regional or national submarkets that are similar.
B)Qualifying and determining dimensions of segmenting work independent of each other in marketing strategy planning.
C)It is not possible for each different submarket within a broad product-market to be motivated by a different set of segmenting dimensions.
D)Segmenting dimensions become less specific when the target market segment seeks to purchase a particular brand of a product.
E)Critical data is easily available and highly dependable as firms move into international markets.

Accepted Answer

Marketers segment international markets by country or region-looking at demographic,cultural,and other characteristics,including stage of economic development.This may help them find regional or national submarkets that are similar.

Question 14

When a customer orders a book at Amazon.com,the online retailer recommends related books that have been purchased by other customers who bought that book.Amazon is using a(n)
A)aggregating approach.
B)CRM database.
C)clustering approach.
D)disaggregating approach.
E)generic market.

Accepted Answer

The CRM system at the website recommends related books that have been purchased by other customers who bought that book.A CRM system usually includes data on a customer's past purchases as well as other segmenting information.

Question 15

A variant of the clustering approach relies on ________,where the seller adjusts the marketing effort with information from a database with customer information.
A)customer relationship management
B)corporate governance
C)social audit
D)cluster sampling
E)data warehouse management

Accepted Answer

A variation of the clustering approach relies on customer relationship management (CRM),where the seller fine-tunes the marketing effort with information from a detailed customer database.The database stores information that is useful for segmentation.

Question 16

Customer relationship management (CRM)data is generally used by firms to
A)reduce their focus on local customers.
B)treat all submarkets as a single huge market.
C)develop a prediction score for each customer.
D)limit the need for customization.
E)deliver the same marketing mix to all customer segments.

Accepted Answer

CRM data is generally used by firms to develop a prediction score for each customer.The database stores information that is useful for segmentation.Analytic software aids in identifying customer segments,so that each can be delivered a different marketing mix.

Question 17

Clustering techniques
A)help sellers fine-tune the marketing effort with information from a detailed customer database.
B)establish how customers think about proposed or present brands in a market.
C)try to find similar patterns within sets of data.
D)group customers into heterogeneous segments.
E)use intuition and judgment to do what was previously done by computers.

Accepted Answer

Clustering techniques try to find similar patterns within sets of data.Clustering groups customers who are similar on their segmenting dimensions into homogeneous segments.

Question 18

Segmenting international markets can be more difficult because
A)the concepts and approaches for segmenting domestic markets simply do not apply.
B)there are more dimensions and many unfamiliar variables.
C)there are fewer useful dimensions.
D)a manager must rely entirely on his or her own judgments about people in other countries.
E)the quantity and quality of available market data are usually greater.

Accepted Answer

Segmenting international markets may require more dimensions.Critical data is often less available and less dependable as firms move into international markets.

Question 19

Clustering techniques applied to segmenting markets
A)usually require computers to group people based on data from market research.
B)remove the need for managerial judgment.
C)eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers.
D)affect the customer's purchase of specific product or brand.
E)include the specialty markets that the segmenters are working with.

Accepted Answer

The computer searches all the data for homogeneous groups of people.When it finds them,marketers then study the dimensions of the people in the groups to see why the computer clustered them together.The results sometimes suggest new,or at least better,marketing strategies.

Question 20

When moving to international markets,some firms insist that local operations and decisions should be handled by natives because
A)their operations and decision making can be centralized.
B)international markets are less particular about segmenting dimensions.
C)the needs and preferences of target customers are the same in all submarkets.
D)their local responsiveness can be reduced.
E)the natives have a feel for the market.

Accepted Answer

Critical data is often less available-and less dependable-as firms move into international markets.This is one reason why some firms insist that local operations and decisions be handled by natives.They,at least,have a feel for their markets.

Quiz 4: Focusing Marketing Strategy With Segmentation and Positioning

The clustering techniques that can be used in segmenting

Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it's time for the next oil change.This is an example of a ________ system.

Business-to-business markets,with very large customers,have typically

How can the current location of target customers help marketing managers?

Customer relationship management (CRM) helps consumer marketers

A detailed customer database,containing past purchases and other segmenting information,is used to focus marketing efforts on individual customers in a

Customer relationship management (CRM) helps consumer marketers

When evaluating international markets,the marketing manager should

The ultimate in personalization occurs when

The first step in segmenting international markets is to

Segmenting in international markets can be more challenging than segmenting in domestic markets because

In the context of segmenting international markets,which of the following statements is true?

When a customer orders a book at Amazon.com,the online retailer recommends related books that have been purchased by other customers who bought that book.Amazon is using a(n)

A variant of the clustering approach relies on ________,where the seller adjusts the marketing effort with information from a database with customer information.

Customer relationship management (CRM) data is generally used by firms to

Clustering techniques

Segmenting international markets can be more difficult because

Clustering techniques applied to segmenting markets

When moving to international markets,some firms insist that local operations and decisions should be handled by natives because