Question 1

Segmenting customers by demographic variables is
A)highly effective.
B)cost-effective.
C)time-consuming.
D)rarely effective.
E)superior to using psychographic variables.

Accepted Answer

D

Question 2

Business success depends on segmenting markets in a way that is
A)based on marketing research.
B)determined by the sales function.
C)different from competitors.
D)based on geographic distribution.
E)determined by the marketing function.

Accepted Answer

C

Question 3

How did General Motors compete against Henry Ford,the consummate mass marketer?
A)by offering only one automobile colour
B)by increasing advertising spending
C)by expanding the sales force
D)by segmenting the customer base
E)by expanding distribution

Accepted Answer

General Motors competed against Henry Ford by segmenting the customer base. While Ford offered only one car model, General Motors offered different models aimed at different types of customers. This allowed General Motors to appeal to a wider range of consumers and compete with Ford's mass marketing strategy.

Question 4

Cessna,the aircraft manufacturer,focuses its efforts on serving the needs of the corporate customer.This is an example of
A)a product strategy.
B)customer segmentation.
C)sales execution.
D)cross-functional alignment.
E)a marketing communications strategy.

Accepted Answer

Customer segmentation refers to dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors. Cessna's focus on serving the needs of the corporate customer suggests that they have segmented their market and are targeting a specific group of customers rather than trying to appeal to everyone.

Question 5

Businesses that try to be all things to all people
A)conduct extensive marketing research.
B)lack a differentiated position in the marketplace.
C)save money on marketing communications.
D)manage customer value.
E)understand customer needs.

Accepted Answer

Businesses that try to be all things to all people lack a differentiated position in the marketplace. They cannot effectively target specific customer segments and end up diluting their brand and message.

Question 6

The business world has seen an explosion of
A)advertising agencies.
B)research firms.
C)websites.
D)competitors.
E)customer segments.

Accepted Answer

The answer of The business world has seen an explosion...

Question 7

To overcome the limitations of demographics as a segmentation variable,researchers turned to
A)geographic segmentation.
B)income segmentation.
C)age segmentation.
D)gender segmentation.
E)psychographic segmentation.

Accepted Answer

Psychographic segmentation is the best choice to overcome the limitations of demographics as a segmentation variable as it takes into account the lifestyle, personality traits, values, interests, and behaviors of consumers. This allows for a more comprehensive segmentation approach that can better capture the diverse needs and preferences of consumers beyond just their basic demographic information.

Question 8

The easiest way to segment customers is by
A)psychographics.
B)beliefs.
C)opinions.
D)attitudes.
E)geography.

Accepted Answer

Geography is the easiest and most straightforward way to segment customers. It involves dividing customers by their physical location or region. This method can provide insight into different market trends and preferences specific to certain areas, allowing companies to tailor their marketing and advertising strategies accordingly.

Question 9

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs,it is
A)wasting resources.
B)creating value for the customer.
C)segmenting its customers.
D)devising a positioning strategy.
E)saving time and resources.

Accepted Answer

Offering a service that is not needed or desired by every customer is a waste of resources, as it may not be utilized or valued by all customers. It would be better to offer the service selectively based on customer needs and preferences.

Question 10

In a survey of executives at 200 large firms,this percentage reported they had conducted a major segmentation exercise during the previous two years.
A)14%
B)25%
C)42%
D)59%
E)70%

Accepted Answer

The answer of In a survey of executives at 200...

Question 11

Supermarkets and drug stores require manufacturers to pay for putting products on the shelves.This process is known as
A)merchandising fees.
B)markups.
C)marketing fees.
D)cooperative advertising.
E)listing fees.

Accepted Answer

The process of requiring manufacturers to pay for their products to be placed on supermarket or drug store shelves is known as listing fees. These fees are paid by manufacturers to retailers in exchange for a spot on their shelves. The fees can vary depending on the retailer and the product, and they are typically negotiated between the manufacturer and the retailer.

Question 12

Businesses must focus on fewer customer segments and serve them well with fewer brands,otherwise they face
A)increased competition.
B)increased distribution.
C)escalating costs.
D)smaller product development budgets.
E)smaller marketing communications budgets.

Accepted Answer

Focusing on fewer customer segments and serving them well with fewer brands means that businesses can streamline their operations and reduce costs. By spreading themselves too thin with too many brands and customer segments, businesses can face escalating costs and strain on resources.

Question 13

Targeting upmarket travellers and training staff to accommodate their every need is an example of the Ritz-Carlton's
A)research strategy.
B)financial strategy.
C)marketing communications strategy.
D)segmentation strategy.
E)public relations strategy.

Accepted Answer

Targeting upmarket travellers is a clear example of segmentation strategy, which is the process of dividing a market into smaller groups of consumers who have similar needs or characteristics. By focusing on this specific group and training their staff to cater to their every need, Ritz-Carlton is practicing effective segmentation and differentiation from other hotel chains.

Question 14

W.L.Gore & Associates successfully marketed its shred-proof dental floss,Glide,by targeting
A)supermarkets.
B)drug stores.
C)seniors.
D)dentists.
E)children.

Accepted Answer

W.L. Gore & Associates marketed Glide dental floss to dentists, as they are the primary influencers in recommending oral care products to their patients.

Question 15

With only one value proposition,a business wastes resources because
A)it is segmenting its customers.
B)it is building brand image.
C)customer satisfaction levels are high.
D)it is over-serving or under-serving customer needs.
E)it is creating value for the customer.

Accepted Answer

With only one value proposition, a business may fail to address all the different needs and preferences that different segments of customers may have. This can result in either over-serving or under-serving certain segments, leading to a waste of resources. Therefore, having multiple value propositions that cater to different customer segments is a more efficient use of resources.

Question 16

Customers differ based on
A)their willingness to pay.
B)the size of the sales force.
C)the market share of the business.
D)the marketing communications strategy.
E)the sales execution plan.

Accepted Answer

Customers differ based on their willingness to pay, which refers to their ability and readiness to pay a certain price for a product or service. This is a crucial factor in determining the pricing strategy for a business. The other options listed are important factors in marketing and sales, but they do not directly relate to customer differences.

Question 17

A marketer that does not recognize customer needs and provides all customers with only one offer is practising
A)market segmentation.
B)mass marketing.
C)personal selling.
D)competitive positioning.
E)narrowcasting.

Accepted Answer

Mass marketing is the practice of offering the same product or service to all customers without regard to their specific needs or characteristics. This approach assumes that all customers have similar needs and preferences, and that a single marketing strategy can effectively reach and persuade all of them. However, it often results in lower customer satisfaction and less effective marketing outcomes compared to more targeted approaches like market segmentation.

Question 18

Without market segmentation,salespeople
A)do not know what to offer customers.
B)increase prices.
C)charge for the value they create.
D)withhold too much from the customer.
E)determine the marketing communications strategy.

Accepted Answer

Without market segmentation, salespeople do not have a clear understanding of their customer's needs, wants and preferences. This can lead to not knowing what to offer customers, resulting in ineffective sales strategies and lower sales.

Question 19

By offering all customers the same value proposition,businesses run the risk of
A)customers becoming less price-sensitive.
B)a competitor entering the market to satisfy unmet needs.
C)customer segmentation.
D)providing direction to the sales force.
E)reducing resources.

Accepted Answer

Offering all customers the same value proposition means that a business is not addressing the specific needs and wants of different customer segments. This creates an opportunity for a competitor to enter the market and offer a more tailored solution to these unmet needs, potentially taking market share away from the business. Customer segmentation is important in order to effectively target and satisfy different customer groups.

Question 20

Segmenting and targeting customers enables a business to dramatically
A)expand its distribution.
B)increase its advertising spending.
C)improve its profitability.
D)expand product development.
E)increase market share.

Accepted Answer

Segmenting and targeting customers allows a business to focus its resources and efforts on the most profitable and receptive customer groups. By providing tailored offerings and experiences to these groups, the business can increase customer loyalty, reduce marketing costs, and ultimately improve profitability.

Quiz 3: Choosing Which Customers to Serve

Segmenting customers by demographic variables is

Business success depends on segmenting markets in a way that is

How did General Motors compete against Henry Ford,the consummate mass marketer?

Cessna,the aircraft manufacturer,focuses its efforts on serving the needs of the corporate customer.This is an example of

Businesses that try to be all things to all people

The business world has seen an explosion of

To overcome the limitations of demographics as a segmentation variable,researchers turned to

The easiest way to segment customers is by

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs,it is

In a survey of executives at 200 large firms,this percentage reported they had conducted a major segmentation exercise during the previous two years.

Supermarkets and drug stores require manufacturers to pay for putting products on the shelves.This process is known as

Businesses must focus on fewer customer segments and serve them well with fewer brands,otherwise they face

Targeting upmarket travellers and training staff to accommodate their every need is an example of the Ritz-Carlton's

W.L.Gore & Associates successfully marketed its shred-proof dental floss,Glide,by targeting

With only one value proposition,a business wastes resources because

Customers differ based on

A marketer that does not recognize customer needs and provides all customers with only one offer is practising

Without market segmentation,salespeople

By offering all customers the same value proposition,businesses run the risk of

Segmenting and targeting customers enables a business to dramatically