Question 1

Hank operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.Hank has found it much easier to serve and satisfy the _____,who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.
A) adopters
B) adapters
C) optimizers
D) innovators
E) satisficers

Accepted Answer

Satisficers use a simple,quick purchasing strategy of looking for the first available adequate supplier.

Question 2

The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.
A) majority fallacy
B) equity fallacy
C) 80/20 principle
D) cannibalization rule
E) optimizer principle

Accepted Answer

This is the definition of the 80/20 principle.

Question 3

What is the first step in segmenting a market?
A) Set the segmentation goals
B) Choose a basis or bases for segmenting the market
C) Select a market or product category for study
D) Profile and analyze segments
E) Select target markets

Accepted Answer

The steps in segmenting a market are (1)select a market or product category for study; (2)choose a basis or bases for segmenting the market; (3)select segmentation descriptors; (4)profile and analyze segments; (5)select target markets; and (6)design,implement,and maintain appropriate marketing mixes.

Question 4

Zatarains offers packaged spice mixes for jambalaya,gumbo,and red beans and rice.Consumers can buy the product in the store,so Zatarains sells individual household-size packages to resellers.It also sells institutional-size packages to military bases,schools,restaurants,and other large organizations.The marketers of Zatarains would most likely segment the business market according to:
A) company characteristics.
B) the buying process.
C) financial terms.
D) customer relationship objectives.
E) length of distribution channel.

Accepted Answer

Each of the buyers of Zatarains' products has distinct characteristics to be met,such as type of company,company size,and product use.

Question 5

Market segmentation:
A) is a scientific technique for selecting ways to attract specific population samples
B) is rarely done by consumer products companies
C) only needs to be done once for each product
D) should be redone periodically
E) should be done every time a product enters a new stage of its life cycle

Accepted Answer

Markets are dynamic,so it is important that companies proactively monitor their segmentation over time.

Question 6

The Green Earth,a landscaping company,finds that the most difficult firms to get business from are the _____,because this group considers numerous and even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher levels of customer service.
A) actualizers
B) strivers
C) satisficers
D) optimizers
E) early adopters

Accepted Answer

Firms that use an optimizer purchasing strategy consider many suppliers and analyze their options carefully.

Question 7

Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT:
A) psychographic variables.
B) the method the company uses to make purchases.
C) geographic location.
D) personal characteristics of buyers themselves.
E) company size.

Accepted Answer

Psychographic variables are used in the consumer market.

Question 8

June LaVista owns a health and fitness gym.After dividing her customers into four segments based on income range,age,level of fitness,and other selected segmentation descriptors,she wrote out a description of each segment's size,expected growth,frequency of exercise,and overall profit potential.Which step in segmenting a market is LaVista engaged in?
A) Profiling and analyzing her market segments
B) Positioning her products to her market segments
C) Targeting promotions to her market segments
D) Differentiating her market segments
E) Concentrating her marketing mix on the most profitable marketing segments

Accepted Answer

The profiling and analysis of the segments step in segmenting a market involves analyzing the segments' size,expected growth,purchase frequency,and so on.

Question 9

All of the following are steps in the market segmenting process EXCEPT:
A) determining the objectives of the segmentation strategy
B) profiling and analyzing segments
C) designing, implementing, and maintaining appropriate marketing mixes
D) selecting a market or product category for study
E) choosing a basis or bases for segmenting the market

Accepted Answer

The steps in segmenting a market are (1)select a market or product category for study; (2)choose a basis or bases for segmenting the market; (3)select segmentation descriptors; (4)profile and analyze segments; (5)select target markets; and (6)design,implement,and maintain appropriate marketing mixes.

Question 10

Business marketers focus on all of the following market segments EXCEPT:
A) institutions.
B) producers.
C) households.
D) resellers.
E) government.

Accepted Answer

The business market consists of four broad segments: producers,resellers,government,and institutions.Households are part of the consumer market.

Question 11

What does the 80/20 principle propose?
A) Roughly 80 percent of the profit comes from 20 percent of the sales.
B) Roughly 80 percent of a firm's customers are repeat business.
C) Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
D) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
E) Sales are equally divided among heavy, medium, and light users, but they all need slightly different products.

Accepted Answer

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Question 12

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of _____ segmentation.
A) lifestyle
B) motive
C) usage-rate
D) demographic
E) personality

Accepted Answer

Usage-rate segmentation divides a market by the amount of product bought or consumed.

Question 13

Pocket-knife collector Sam Penley decided to open The Knife Depot,a store that sells pocket knives and related paraphernalia.After 18 months in business,Sam has noticed that most of his sales are to the same small group of customers (about 40 people)even though he has records to show there are over 200 active pocket-knife collectors within a 50-mile radius of his store.Sam's retailing experience is supportive of the:
A) optimizer principle
B) min-max rule
C) majority fallacy
D) rule of demand
E) 80/20 principle

Accepted Answer

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Question 14

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?
A) Once every 20 years
B) They should do them regularly because of the rapidly changing nature of most markets.
C) They don't need any because consumer markets don't rapidly change and develop like business goods markets.
D) Every year, using new bases for variety
E) Only when the market changes

Accepted Answer

Markets are dynamic,so it is important that companies proactively monitor their segmentation over time.

Question 15

Firms can be categorized by the type of purchasing strategy they use._____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.
A) Strugglers
B) Actualizers
C) Optimizers
D) Satisficers
E) Experiencers

Accepted Answer

This is the definition of satisficers.

Question 16

After selecting a market for study and choosing bases for segmenting that market,the marketer must select the segmentation _____,which identify the specific segmentation variables to use
A) descriptors
B) matrices
C) narratives
D) variations
E) networks

Accepted Answer

Descriptors identify the specific segmentation variables to use.

Question 17

ThinkGeek is an online retailer that caters to computer enthusiasts and other "geeky" social groups.Their merchandise includes clothing,electronic and scientific gadgets,unusual computer peripherals,office toys,pet toys,child toys,and caffeinated drinks and candy.ThinkGeek runs a points-for-reward system called Geek Points,under which customers can earn rewards for buying more products.This is an example of segmentation by:
A) demographic.
B) benefit.
C) aggregate.
D) economics.
E) usage rate.

Accepted Answer

Segmenting users by amount purchased or consumed is usage-rate segmentation.

Question 18

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.
A) Satisficers
B) Strivers
C) Optimizers
D) Actualizers
E) Innovators

Accepted Answer

This is the definition of optimizers.

Question 19

H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services like mortgages and investment advice.Block has great brand recognition,but consumers only care about it four months out of the year.H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round.
A) reposition
B) reengineer
C) demarket
D) undifferentiate
E) niche

Accepted Answer

Repositioning means changing the customers' perceptions of a brand in relation to competing brands.

Question 20

The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never utilized mass transit,(2)people who utilized mass transit in the past but not now,(3)people who utilized mass transit occasionally,and (4)people who utilized mass transit regularly.These groups have significantly different perceptions about transportation alternatives.This is an example of _____ segmentation.
A) demographic
B) benefit
C) aggregate
D) economic
E) usage-rate

Accepted Answer

Segmenting users by amount purchased or consumed is usage-rate segmentation.

Quiz 15: Segmenting and Targeting Markets

The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.

What is the first step in segmenting a market?

Market segmentation:

The Green Earth,a landscaping company,finds that the most difficult firms to get business from are the _____,because this group considers numerous and even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher levels of customer service.

All of the following are steps in the market segmenting process EXCEPT:

Business marketers focus on all of the following market segments EXCEPT:

What does the 80/20 principle propose?

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?

Firms can be categorized by the type of purchasing strategy they use._____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.

After selecting a market for study and choosing bases for segmenting that market,the marketer must select the segmentation _____,which identify the specific segmentation variables to use

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.