Question 1

Market segmentation is a two-step strategic process,and the first step is to

Accepted Answer

The first step of market segmentation is to identify groups of people with shared characteristics within the broad product market. This allows for targeted marketing efforts and more effective use of resources. Option A is more related to market research, option C is focused on finding profitable niches rather than segmentation, and options D and E are not directly related to segmentation.

Question 2

Gary Silva,senior vice president of sales,U.S.Auto Parts Group at Genuine Parts,says NAPA doesn't have a cookie-cutter layout but builds stores based on market need,with each designed independently."It would be easier if all the stores had the exact same layout,but it's not the right thing to do for independent owners because some areas have more professional customers and others have more do-it-yourselfers," he explained.From this information,you know that NAPA targets both _____ markets.

Accepted Answer

The statement mentions that some areas have more professional customers and others have more do-it-yourselfers, indicating that NAPA targets both business (professional customers) and consumer (do-it-yourselfers) markets.

Question 3

With an administered vertical marketing system,one company owns multiple levels of the distribution or production channel.

Accepted Answer

In an administered vertical marketing system, one company does not own multiple levels of the distribution or production channel; instead, it has enough power to lead the other members of the channel, often through the size of its operations.

Question 4

Manufacturers' representatives,distributors,and retailers are considered resellers.

Accepted Answer

Resellers are entities that purchase goods from manufacturers or wholesalers and resell them to end customers. Manufacturers' representatives, distributors, and retailers are all examples of resellers.

Question 5

Hard apple cider is making a comeback.Cider consumption is expected to hit 15 million cases annually this decade.Early adopters of cider are the same group that first gravitated to the microbreweries.Apple cider's drinkers like the notion that it is basically a fruit drink.It conjures up healthy associations and appeals to people who do not view themselves as serious connoisseurs.What segmentation variable would you recommend Woodchuck Draft Cider use to define its market?

Accepted Answer

Psychographic segmentation would be the best choice for Woodchuck Draft Cider as it allows them to target consumers based on their personality, values, interests, and lifestyle. As mentioned in the passage, early adopters of cider are similar to those who first gravitated towards microbreweries, indicating a shared interest in craft and quality. By using psychographic segmentation, Woodchuck Draft Cider can target consumers who value unique and high-quality beverages, as well as those who prioritize health and wellness.

Question 6

With _____,marketers group people by their values,attitudes,personality,and lifestyle.

Accepted Answer

Psychographics is the practice of grouping individuals based on their personality traits, values, attitudes, and lifestyle choices. Demographics refers to characteristics such as age, gender, income, and education. Geodemographics groups people based on their location and other demographic factors. Attitudinal positioning and lifestyle positioning are not commonly used marketing terms.

Question 7

Intensive distribution involves limiting the number of wholesalers who can sell a product in order to gain a prestige image or maintain premium prices.

Accepted Answer

Intensive distribution involves distributing a product through as many channels or retailers as possible to maximize distribution and availability. Limiting the number of wholesalers to gain a prestige image or maintain premium prices is known as exclusive distribution.

Question 8

Harris Teeter Inc.is a chain of supermarkets in the Atlanta area.In one of its stores in a predominantly Jewish neighborhood,the store has three rabbis on staff who make sure the foods sold at the store are kosher.Every Harris Teeter store has distinct characteristics that align it with the neighborhood in which it is located.The chain is using _____ segmentation.

Accepted Answer

Geodemographic segmentation is the practice of dividing a market based on geographic and demographic characteristics of the customers. In this case, Harris Teeter is tailoring their store and offerings to the predominantly Jewish neighborhood where it is located by employing rabbis to ensure the food is kosher.

Question 9

Fast-food companies like Hardee's create advertising campaigns to appeal to "heavy fast-food users," the people who already eat fast food most days of the week,in order to encourage them to buy at their chain.Hardee's is using

Accepted Answer

Volume segmentation is used because Hardee's targets customers based on the volume of product they consume, focusing on those who eat fast food most days of the week.

Question 10

Home builders are using _____ segmentation to target people over 55 with homes that have wheelchair-friendly door widths,lever door handles,roll-out shelves,raised toilets,and direct 911 wiring.

Accepted Answer

The segmentation mentioned in the scenario is based on demographics, specifically targeting people over 55. The features mentioned such as wheelchair-friendly door widths and raised toilets are tailored to the needs of this demographic group.

Question 11

In the United States,more than 40 percent of all retail sales are made through franchise outlets.

Accepted Answer

According to the International Franchise Association, as of 2021, more than 40 percent of all retail sales in the United States are made through franchise outlets.

Question 12

The Values and Lifestyles (VALS)typology uses a two-dimensional structure based on

Accepted Answer

The VALS typology uses a two-dimensional structure based on primary motivation (inner-directed or outer-directed) and resources (high or low). This results in eight segments: innovators, thinkers, achievers, experiencers, believers, strivers, makers, and survivors. This segmentation is used to identify and target consumers with specific attitudes and values towards products and brands. The other options are not accurate descriptions of the two-dimensional structure used in VALS.

Question 13

_____ is the product's ability to satisfy both functional needs and symbolic wants.

Accepted Answer

Product utility refers to the product's ability to satisfy both functional needs (what the product can do for the customer in practical terms) and symbolic wants (what the product represents or means to the customer).

Question 14

An ad for Crest's whitening strips shows a woman with white teeth and several boxes with possible ages,suggesting her white teeth make her look younger.Crest is using

Accepted Answer

The answer of An ad for Crest's whitening strips shows...

Question 15

The Visitors Bureau of Greenville,Mississippi,uses an ad with the following headline: "Join some others who got inspired here" and then lists the famous authors that came from that part of the state.The message in this headline indicates the city is using _____ to attract tourists.

Accepted Answer

The answer of The Visitors Bureau of Greenville,Mississippi,uses an ad...

Question 16

Customers who might buy Muir Glen brand organic soups are people who like soup,want to try something different,don't have time to cook,worry about putting chemicals in their bodies,and are vegetarians.These various groups who may be in the market for Muir Glen soups are all examples of

Accepted Answer

The different groups of customers mentioned in the statement represent market segments, which are identifiable groups of consumers with similar needs or characteristics that may benefit from a specific marketing mix. Muir Glen can use this information to target its marketing activities to meet the specific needs of each segment and increase its sales.

Question 17

According to the research of Stephan and Tannenholz,_____ are the most brand loyal group and require the least amount of promotion.

Accepted Answer

According to the research of Stephan and Tannenholz, sole users are the most brand loyal group and require the least amount of promotion. Sole users are those customers who exclusively use a particular brand in a product category and do not switch to any other brand.

Question 18

Exclusive distribution is a strategy commonly used in the high fashion apparel industry.

Accepted Answer

High fashion apparel brands often use exclusive distribution to maintain their brand image and pricing power by limiting the availability of their products to select retailers or locations. This enhances the perceived value of the brand and often leads to higher profit margins.

Question 19

Over the past decade,brands that were once available only to the wealthy have created more affordable product extensions,giving a far broader range of consumers a taste of the good life.Jaguar,for instance,launched its X-type sedan,which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury.By marketing to people who desire a luxurious lifestyle,Jaguar is using

Accepted Answer

By targeting consumers who aspire to live in luxury, Jaguar is using psychographic segmentation, which focuses on attitudes, values, and lifestyle rather than on demographic or geographic factors.

Question 20

The Japan Weather Association tracked buying patterns on 20,000 items and correlated them to the outside temperature.When the temperature goes up,people buy more sunshades,air conditioners,watermelons,and swimwear.When there's a chill in the air,sales of suits,sweaters,and heaters take off.This would be an example of

Accepted Answer

The tracking of buying patterns based on the outside temperature is an example of purchase-occasion segmentation. This means that marketers are targeting consumers based on their behaviors related to specific occasions or situations. In this case, the occasion is the weather and how it affects consumer buying habits. This is not related to psychographic, demographic, lifestyle, or volume segmentation.

Quiz 4: Targeting and the Marketing Mix