Question 1

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

Optimizers consider all options and thoroughly analyze them to make the best purchasing decision. The other options do not prioritize or focus on this level of analysis and consideration of suppliers.

Question 2

Ayres Corp.makes airplanes.It sells about 50 planes a year to be used as crop dusters.It sells another 75 a year to delivery companies.In addition,it manufactures another dozen or so that are used for fire fighting and about six a year that are sold for military transport purposes.Ayres Corp.uses _____ variables.
A) demographic
B) company characteristics
C) benefit
D) buyer ethnicity
E) usage rate

Accepted Answer

The answer of Ayres Corp.makes airplanes.It sells about 50 planes...

Question 3

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

The rapidly changing nature of markets dictates a regular reexamination of the segmentation process.

Question 4

An eighteen-year-old college freshman might be a "party animal" living in a dorm.Another eighteen-year old freshman might be a husband with a small child and a full-time job.If you were in charge of a marketing program aimed at these men,what segmentation technique would be the easiest to employ that might help you to distinguish between them?
A) age cohort analysis
B) benefit
C) product differentiation
D) concentration
E) gender

Accepted Answer

Benefit segmentation focuses on the specific needs and benefits sought by different consumers, which can distinguish between the two individuals based on their lifestyle and responsibilities.

Question 5

Business marketers focus on four broad market segments.Which of the following is NOT one of those segments?
A) institutions
B) producers
C) households
D) resellers
E) governments

Accepted Answer

The four broad market segments that business marketers focus on are institutions, producers, resellers, and governments. Households are not considered as a primary target for business marketing, as they are not typically purchasing goods or services on a large scale for commercial purposes.

Question 6

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 type of purchasing strategy, where a firm is satisfied with the first supplier that meets their requirements, is known as satisficing. Therefore, the correct choice is D) Satisficers.

Question 7

A(n)_____ is a group of people or organizations for which an organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges.
A) heterogeneous segment
B) target market
C) responsive segment
D) aggregated market
E) undifferentiated target

Accepted Answer

Target market is a group of people for whom an organization creates and maintains a marketing mix to meet their needs, resulting in mutually satisfying exchanges. Option A is incorrect because a heterogeneous segment refers to a group with diverse needs and characteristics. Option C, responsive segment, is not a marketing term. Option D, aggregated market, refers to different market segments that are combined for analysis purposes. Option E, undifferentiated target, refers to a marketing strategy in which an organization targets the entire market with a single marketing mix.

Question 8

Nearly everyone has eaten instant mashed potatoes.Manufacturers of instant potato flakes sell to resellers,institutional food services,and to movie production companies.(Instant potato flakes are typically used in movies when the scene calls for falling snow.)The manufacturers of instant potato flakes would most likely segment their market according to:
A) company characteristics
B) the buying process
C) financial terms
D) customer relationship objectives
E) length of distribution channel

Accepted Answer

The manufacturers of instant potato flakes would most likely segment their market according to company characteristics, such as resellers, institutional food services, and movie production companies. This would allow them to tailor their marketing strategies and product offerings to each type of customer.

Question 9

After selecting a market for study,and choosing a basis for segmenting that market,the next step is to:
A) select segmentation descriptors
B) implement and maintain a marketing mix
C) design a marketing mix
D) profile and analyze segments
E) select target markets

Accepted Answer

The answer of After selecting a market for study,and choosing...

Question 10

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

The Box Tops for Education Program is designed to encourage current light users to become heavier users by offering a reward (money for schools) for collecting and submitting box tops. This type of program is an example of usage-rate segmentation, as it targets customers based on the frequency and amount of product usage.

Question 11

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed that most of their sales are to the same small group of customers (about 40 people)even though they have records to show their are over 200 active train collectors within a 50-mile radius of their store.Their 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 situation described in the question is an example of the 80/20 principle, also known as the Pareto principle. This principle states that 80% of effects come from 20% of causes, or in this case, 80% of sales come from 20% of customers. In this situation, the same small group of customers is responsible for the majority of the store's sales, even though there are many more potential customers in the area. This suggests that the store should focus on catering to the needs and preferences of this small group of customers in order to maximize sales.

Question 12

The Hudson-May Company manufactures and installs above-ground swimming pools.When the company began in 1989,it completed a thorough examination of its business customers.It grouped the customers into three segments based on size,geographic region,and benefits sought.Would you recommend a new segmentation analysis this year?
A) No,once every twenty years is about average.
B) Yes,I would recommend one be done regularly because of the rapidly changing nature of most markets.
C) No,consumer markets are not rapidly changing or developing like business goods markets.
D) Yes,a new analysis would be in order,but it should use different bases to get some variety.
E) No,segmentation is rarely done by consumer marketers because it simply is not useful.

Accepted Answer

Segmentation analysis should be done regularly because markets are constantly evolving and changing. It is important to keep up with changes in customer needs, behaviors, and preferences in order to stay competitive and relevant.

Question 13

Ever since Hunter got his new Shell credit card,which gives him a 5 percent rebate on all purchases of Shell gas,he will only buy gas at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing _____ segmentation.
A) lifestyle
B) motive
C) usage-rate
D) demographic
E) personality

Accepted Answer

The fact that Shell introduced a credit card plan to incentivize customers to only buy their gas suggests that they are implementing usage-rate segmentation, which targets customers based on their frequency of use or loyalty to a particular brand.

Question 14

Why are many retail firms interested in customer loyalty cards and programs?
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 Pareto Principle, or 80/20 rule, states that roughly 20 percent of a firm's customers are responsible for 80 percent of their sales volume. By implementing customer loyalty cards and programs, retail firms can incentivize these valuable customers to continue purchasing from them, increasing their revenue and profitability.

Question 15

After dividing his catering customers into three segments based on income range and selecting segmentation descriptors,Kathy Stein wrote out a description of each segment's size,expected growth,frequency of parties,and overall profit potential.Stein engaged in:
A) profiling and analyzing his segments
B) positioning his products to his market segments
C) targeting promotions to his market segments
D) differentiating his market segments
E) concentrating his marketing mix on the most profitable marketing segments

Accepted Answer

Kathy Stein engaged in profiling and analyzing his segments by dividing his catering customers into three segments based on income range and selecting segmentation descriptors, and then writing out a description of each segment's size, expected growth, frequency of parties, and overall profit potential. This helped him to understand the characteristics and needs of each segment and tailor his marketing efforts accordingly.

Question 16

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

The 80/20 principle, also known as the Pareto principle, states that 80% of effects come from 20% of the causes. In the context of business, it suggests that a minority of a firm's customers (20%) purchase a majority (80%) of the volume of the product. This principle can be useful in identifying and focusing on the highest value customers or products.

Question 17

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

This is an example of usage-rate segmentation because the segmentation is based on the level of usage of mass transit.

Question 18

Llewelyn Trucking Company finds that the most difficult firms to provide service for are the _____.This group considers numerous,even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher level of customer service and follow-up on quotations.
A) actualizers
B) strivers
C) satisficers
D) optimizers
E) early adopters

Accepted Answer

Optimizers are known for being highly analytical and detail-oriented in their decision-making process. They tend to consider multiple suppliers and carefully analyze options before making a decision, which can require a higher level of customer service and follow-up on quotations. This aligns with the difficulty that Llewelyn Trucking Company finds in providing service for this group.

Question 19

Terri LaVoile operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.LaVoile 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) adaptors
C) optimizers
D) innovators
E) satisficers

Accepted Answer

The term "satisficers" is used to describe customers who are satisfied with meeting their basic product and delivery requirements and are not interested in exploring new options or suppliers. This aligns with the description given in the question, making E the correct answer. The other answer choices (adopters, adaptors, optimizers, innovators) are not relevant to the described purchasing strategy.

Question 20

Tower Fasteners developed a commanding position in the fastener industry by carrying 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 purchase decision makers
E) company size

Accepted Answer

Psychographic variables are related to the personal values, attitudes, interests, and lifestyles of individuals, rather than organizational characteristics. Therefore, it is not a relevant characteristic for the segmentation of Tower's buying organization. The other choices (B, C, D, and E) are all relevant characteristics for segmentation, as they relate to the company's purchasing behavior, location, decision makers, and size.

Quiz 7: Segmenting and Targeting Markets

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

Market segmentation:

Business marketers focus on four broad market segments.Which of the following is NOT one of those segments?

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(n) _____ is a group of people or organizations for which an organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges.

After selecting a market for study,and choosing a basis for segmenting that market,the next step is to:

Ever since Hunter got his new Shell credit card,which gives him a 5 percent rebate on all purchases of Shell gas,he will only buy gas at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing _____ segmentation.

Why are many retail firms interested in customer loyalty cards and programs?

After dividing his catering customers into three segments based on income range and selecting segmentation descriptors,Kathy Stein wrote out a description of each segment's size,expected growth,frequency of parties,and overall profit potential.Stein engaged in:

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

Llewelyn Trucking Company finds that the most difficult firms to provide service for are the _____.This group considers numerous,even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher level of customer service and follow-up on quotations.