Question 1

A positioning map:
A)is used primarily by companies utilizing undifferentiated marketing strategies.
B)can be used only for already successful products in the market.
C)shows how consumers view a product relative to competitive products.
D)outlines how to introduce a new product to the marketplace.

Accepted Answer

A positioning map is a visual representation of how consumers perceive a product or brand in relation to its competitors. It helps companies understand their position in the marketplace and make strategic decisions to differentiate themselves and stand out from the competition. It is not limited to successful products and can be used for both new and established products. Undifferentiated marketing strategies do not require a positioning map as they target a broad market segment without focusing on specific consumer perceptions.

Question 2

​Bill wants to use VALS to segment the market for his firm's costly but cutting-edge gaming software.He knows that his potential customers are likely to be:
A)​Survivors
B)​Gamers
C)​Innovators
D)​Techies
E)​Millennials

Accepted Answer

VALS is a segmentation tool that focuses on the psychographic characteristics of consumers. Innovators are typically early adopters of new technology and ideas, making them a good target market for cutting-edge gaming software. Survivors are focused on meeting their basic needs, while Gamers may not have the discretionary income to invest in expensive software. Techies may be interested in the technology behind the software but may not necessarily be gamers, and Millennials are a demographic group rather than a psychographic segment.

Question 3

​Market segmentation has interested you ever since your first marketing course,and you want to work for the type of organization that uses this technique.This means you should avoid pursuing a job with:
A)​Retail business organizations
B)​Wholesale business organizations
C)​Not-for-profit organizations
D)​Manufacturing business organizations
E)​You could pursue a job with any of the above, since all would use market segmentation.

Accepted Answer

Market segmentation is a strategy used by all types of organizations, including retail, wholesale, not-for-profit, and manufacturing, to identify and target specific groups of consumers or clients based on various characteristics. This approach helps organizations tailor their products, services, and marketing efforts to meet the specific needs and preferences of different segments, thereby improving efficiency and effectiveness in reaching their target audience.

Question 4

The United States population is increasingly diverse and more companies are recognizing the opportunity to target the Hispanic population since they are expected to become the dominant ethnic group in the near future.Which requirement of segmentation does the growing number of Hispanic customers fulfill?
A)​large market segment offering good profit potential
B)​a segment with measurable purchasing power
C)​ability to effectively aim promotional efforts at the segment
D)​ability to match the segment with the firm's marketing capabilities

Accepted Answer

The growing number of Hispanic customers represents a large market segment that offers good profit potential due to their increasing population and purchasing power.

Question 5

​A junior member of your marketing department has recommended demographic segmentation for your fast food brand.In a memo,he wrote: "We should be marketing to females who are Hispanic,low-income,unmarried,and have four or more children." You express at least one strong concern about this recommendation.What concern(s)do you express?
A)​Gender is not a demographic segmentation variable.
B)​Ethnicity is not a demographic segmentation variable.
C)​Marital status is not a demographic segmentation variable.
D)​The recommendation could lead to stereotyping and market alienation.
E)​The recommendation is clearly outdated.

Accepted Answer

The recommendation could lead to stereotyping and market alienation. Demographic segmentation based on stereotypical attributes such as ethnicity, marital status, or number of children can result in the alienation of potential customers who do not fit into these categories. It is important to avoid assumptions based on demographics and instead focus on understanding the needs and preferences of the target audience.

Question 6

Adrienne has received her first solo assignment since she was hired as a junior marketing researcher for a national food and beverage distributor.She has been asked to formulate some preliminary ideas about new product development for coffee products sold in the distributor's on-premise consumption outlets.She understands that this assignment is a test to see whether she knows the process.She decides to start with the basics,adding a twenty-first-century twist.How will Adrienne begin the process of formulating ideas about new product development?​
A)​Adrienne will include a customer questionnaire in a local bulk mail package asking consumers about their coffee consumption habits and what kind of new coffee products they would like to see.
B)​Adrienne will send online coupons to customers who are Facebook friends or have visited the company's website, and ask them to complete a brief online AIO lifestyle survey that inquires about their activities, interests, and opinions.
C)​Adrienne will telephone retail outlets in the company's core regions to ask whether they have had any feedback from customers about what kinds of new coffee products they would like.
D)​Adrienne will mail a brief printed AIO lifestyle survey to retail outlets in their core regions that inquires about customer activities, interests, and opinions. The survey will be placed in customers' bags along with their food purchases.
E)​Adrienne will take a "man on the street" poll at the nearest retail outlet and process the feedback from customers about their coffee consumption habits and what kinds of coffee products they would like to see.

Accepted Answer

Adrienne should utilize online surveys to gather data on customer habits and preferences. Sending coupons to customers who are Facebook friends or who have visited the company's website is a practical way to prompt customers to complete a brief online AIO lifestyle survey that inquires about their activities, interests, and opinions. This method will offer her more comprehensive data on consumer behavior and preferences than options A, C, D, and E.

Question 7

A micropolitan statistical area is an area that:
A)includes a set a counties within an area of 1-million-plus population.
B)has a urban center of 50,000 or more inhabitants.
C)includes two or more primary metropolitan statistical areas.
D)has at least one town of 10,000 to 49,999 people.

Accepted Answer

A micropolitan statistical area is defined as an area that includes at least one urban center with a population of between 10,000 and 49,999. This urban center, known as the core, must also be surrounded by adjacent counties that have a high degree of social and economic integration with the core. The core and its surrounding counties together form a micropolitan statistical area (µSA).

Question 8

If a company markets its breakfast cereal to children,it is using _____ segmentation to segment its markets.
A)psychographic
B)demographic
C)end-use
D)geographic

Accepted Answer

By targeting children, the company is using demographic segmentation which divides the market based on characteristics such as age, gender, income, education, etc.

Question 9

The VALS system divides consumers into _____categories.
A)five
B)six
C)seven
D)eight

Accepted Answer

The VALS (Values and Lifestyles) system divides consumers into eight categories based on their psychological traits and key demographics.

Question 10

You want to encourage your longtime customers to continue their relationship with the service your company provides,and so you implement an approach commonly used to segment a market by brand loyalty.What approach did you use?​
A)​Praedo's law
B)​multiple segmentation
C)​benefits segmentation
D)​the 80/20 principle
E)​frequent purchase program

Accepted Answer

A frequent purchase program is designed to reward customers for their continued loyalty, encouraging them to maintain their relationship with the company.

Question 11

Clairol offers a line of hair color called "Nice n Easy" which allows women to touch-up their hair and easily cover their gray hairs conveniently and easily at home.Based on research,Clairol knows that women aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a youthful appearance.What type of segmentation does Clairol use by targeting women over 30?
A)​demographic
B)​geographic
C)​psychographic
D)​benefit

Accepted Answer

Clairol is using demographic segmentation by targeting women over the age of 30 who are more likely to need their hair coloring product to cover gray hair. Demographic segmentation involves dividing the market based on characteristics such as age, gender, income, education, and other demographic factors. In this case, age is the main factor being used to target the segment.

Question 12

The Fayetteville-Springdale-Rogers region of Arkansas has approximately 340,000 people.Fayetteville is an urban center and it alone has a population of 60,000.The Fayetteville-Springdale-Rogers region would be classified as a:
A)consolidated metropolitan statistical area (CMSA).
B)primary metropolitan region (PMR).
C)metropolitan statistical area (MSA).
D)micropolitan statistical area (µSA).

Accepted Answer

The Fayetteville-Springdale-Rogers region of Arkansas is classified as a Metropolitan Statistical Area (MSA) because it has a central urban center (Fayetteville) with a population of 50,000 or more and a total population of at least 100,000 in the surrounding areas.

Question 13

Which of the following is a basic requirement for effective market segmentation?
A)The firm must avoid focusing on consumer-dependent variable, such as discretionary income, while conducting market segmentation.
B)The market segment must present measurable purchasing power and size.
C)The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle.
D)The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.

Accepted Answer

A basic requirement for effective market segmentation is that the market segment must present measurable purchasing power and size. This means that the segment should be large enough to be profitable and the customers in the segment should have the ability and willingness to buy the product or service being offered. Focusing on consumer-dependent variables such as discretionary income may not always be effective in identifying profitable market segments. Expanding beyond marketing capabilities or targeting a large number of small market segments does not necessarily guarantee effective segmentation.

Question 14

Five years ago,Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment.Today,Joshua is earning $60,000 annually.According to Engel's laws,the percentage of income he will spend on his new apartment will be:
A)more than 70 percent.
B)the same as it was back then, about 28 percent.
C)about 50 percent.
D)less than 10 percent.

Accepted Answer

Engel's law states that as the income increases, the percentage of income spent on food, clothing, and housing decreases. Therefore, since Joshua's income has increased, it is likely that the percentage he spends on his new apartment will be less than the 28% he spent on his bachelor apartment five years ago. However, without any information on Joshua's current expenses, it is reasonable to assume that the percentage will be relatively similar to the percentage he spent on his previous apartment. Therefore, the best choice is B, the same as it was back then, about 28 percent.

Question 15

Places where more than half the population is a single racial or ethnic group other than non-Hispanic white are called as _____.
A)minority counties
B)majority-minority counties
C)majority counties
D)native-majority counties

Accepted Answer

Majority-minority counties refer to places where more than half the population belongs to a single racial or ethnic group other than non-Hispanic white. This term is used to describe areas where diverse racial or ethnic groups are concentrated, and one particular group has a numerical advantage over others.

Question 16

A young single person setting up an apartment for the first time is most likely to be a good prospect for:
A)expensive furnishings.
B)luxury cars, personalized gifts and power tools.
C)small home appliances such as coffee makers and toasters.
D)health care products and insurance policies.

Accepted Answer

A young single person setting up their apartment for the first time is most likely on a tight budget and in need of practical and affordable items such as small home appliances like coffee makers and toasters. Expensive furnishings, luxury cars, personalized gifts, power tools, health care products, and insurance policies are not the main priorities for someone starting out on their own.

Question 17

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.
A)positioning
B)social referencing
C)value engineering
D)optimizing

Accepted Answer

Positioning is the process of establishing a unique identity and image for a brand or product in the minds of consumers relative to competitor offerings. It is essential for businesses to position their products effectively to differentiate themselves from competitors and appeal to their target market. Social referencing refers to the process of using other people's opinions or behaviors as a reference point for one's own decisions. Value engineering involves analyzing the costs and benefits of different product designs to optimize value for the customer while minimizing costs. Optimizing refers to the process of improving the effectiveness or efficiency of a product or process.

Question 18

Bose has developed a new high fidelity line of speakers and is attempting to determine the amount of sales that could be generated by target customers in various segments in order to determine whether or not they should proceed with introduction of the new speakers.Which step of the marketing segmentation process best describes this activity?​
A)​forecast market potential
B)​forecast probably market share
C)​select specific segments
D)​develop a profile of each segment

Accepted Answer

This activity is about estimating the total sales potential of the target market, which aligns with forecasting market potential.

Question 19

_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.
A)Impulse goods
B)Shopping goods
C)Business products
D)Unsought products

Accepted Answer

Business products are goods and services used in the production of other goods and services for resale. They are also known as industrial products.

Question 20

AIO statements describe which of the following?
A)Age, interests, and opinions
B)Activities, interests, and opinions
C)Activities, interpersonal relationships, and opinions
D)Aptitude, intelligence, and opinions

Accepted Answer

AIO statements typically refer to a person's Activities, Interests, and Opinions.

Quiz 9: Market Segmentation, targeting, and Positioning

A positioning map:

​Bill wants to use VALS to segment the market for his firm's costly but cutting-edge gaming software.He knows that his potential customers are likely to be:

​Market segmentation has interested you ever since your first marketing course,and you want to work for the type of organization that uses this technique.This means you should avoid pursuing a job with:

A micropolitan statistical area is an area that:

If a company markets its breakfast cereal to children,it is using _____ segmentation to segment its markets.

The VALS system divides consumers into _____categories.

You want to encourage your longtime customers to continue their relationship with the service your company provides,and so you implement an approach commonly used to segment a market by brand loyalty.What approach did you use?​

The Fayetteville-Springdale-Rogers region of Arkansas has approximately 340,000 people.Fayetteville is an urban center and it alone has a population of 60,000.The Fayetteville-Springdale-Rogers region would be classified as a:

Which of the following is a basic requirement for effective market segmentation?

Five years ago,Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment.Today,Joshua is earning $60,000 annually.According to Engel's laws,the percentage of income he will spend on his new apartment will be:

Places where more than half the population is a single racial or ethnic group other than non-Hispanic white are called as _____.

A young single person setting up an apartment for the first time is most likely to be a good prospect for:

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.

_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

AIO statements describe which of the following?

Bill wants to use VALS to segment the market for his firm's costly but cutting-edge gaming software.He knows that his potential customers are likely to be:

Market segmentation has interested you ever since your first marketing course,and you want to work for the type of organization that uses this technique.This means you should avoid pursuing a job with:

You want to encourage your longtime customers to continue their relationship with the service your company provides,and so you implement an approach commonly used to segment a market by brand loyalty.What approach did you use?