Chapter 09
Market Segmentation, Targeting, and Positioning
Multiple Choice Questions
1. | Tony Hsieh invested in the company Zappos and
A. | immediately changed its product mix. |
B. | helped to develop its segmentation strategy. |
C. | focused on value-oriented customers. |
D. | focused on unknown brands. |
E. | helped to shift to a more transactional focus. |
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2. | The primary focus of Zappos' market segmentation strategy is to sell
A. | a wide selection of shoes, clothes, accessories, beauty aids, and housewares to people who will buy them online. |
B. | a wide selection of leather shoes and boots to retailers. |
C. | all types of shoes, accessories, and clothing to department stores. |
D. | Spanish novelties and accessories to organizations. |
E. | shoes in its own retail stores. |
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3. | The Zappos segmentation strategy is based on
A. | offering the best selection of shoes and the best service to online shoppers. |
B. | designing shoes for every type of occasion. |
C. | dividing all their customers into two distinct segments: people shopping for low price and people shopping for style. |
D. | offering the best selection of shoes through multiple channels of distribution. |
E. | maintaining the simplest method of price points to make the purchase process easy. |
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4. | Which of the following statements about Zappos is most accurate?
A. | Zappos limits its inventory to a selection of high-end fashion footwear. |
B. | Zappos carries more than 1,000 different brands. |
C. | Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service. |
D. | Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else." |
E. | Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes. |
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5. | According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to
A. | seeking new and unusual styles of shoes from all over the world. |
B. | improving the website to make it faster, more interesting, and fun. |
C. | seeking new markets that will go beyond the Internet. |
D. | finding the fastest and least expensive modes of delivery for its products. |
E. | finding ways to improve customer service levels. |
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6. | Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who
A. | identifies a completely new market segment with a product to match it. |
B. | finds a way of improving service to online customers. |
C. | takes the customer loyalty training class and decides to quit anyway. |
D. | finds a shoe-related product that Zappos does not already carry. |
E. | creates a humorous theme for one of the monthly company meetings. |
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7. | Building open and honest relationships with communication is an example of one of Zappos'
B. | best practices being adapted from its new owner, Amazon.com. |
D. | supplier requirements. |
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8. | Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
A. | consumer differentiation. |
E. | aggregation marketing. |
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9. | Market segmentation refers to
A. | the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time. |
B. | sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service. |
C. | disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs. |
D. | aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. |
E. | the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong. |
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10. | A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
A. | increase sales and profitability. |
B. | stand up to legal scrutiny. |
C. | be socially responsible. |
D. | create sustainable demand. |
E. | produce product differentiation. |
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11. | Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action.
A. | respond similarly to marketing messages |
B. | have similar shopping styles |
C. | will become loyal customers |
E. | will become stakeholders of the organization |
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12. | Market segmentation involves aggregating prospective buyers into groups that have common needs and will
A. | pay attention to marketing messages. |
B. | respond similarly to a marketing action. |
C. | be responsive to marketing research. |
D. | use the same payment methods. |
E. | comply with the organization's core values. |
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13. | Market segmentation stresses __________ and relating them to specific marketing actions.
A. | aligning tasks to match competitor tactics |
B. | grouping people according to similar needs |
C. | dividing people within a market randomly into equally sized groups |
D. | dividing people into the smallest groups possible |
E. | identifying potential new buyers who are not yet familiar with a new product |
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14. | Small athletic shoe manufacturers such as Vans target niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of
C. | customized manufacturing. |
D. | single chain marketing. |
E. | market specific selection. |
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15. | Zappos focuses on people who will shop for and buy shoes online and like to use mobile technology. The strategy of appealing to specific types of customers in this way is an example of
D. | single chain marketing. |
E. | market specific selection. |
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16. | Market segments refers to
A. | the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. |
B. | all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. |
C. | the smallest number of buyers that have similar needs but do not react similarly in a buying situation. |
D. | the relatively homogenous groups of prospective buyers that result from the market segmentation process. |
E. | all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so. |
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17. | A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as
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18. | To be identified as a market segment, members of the group must
A. | be similar in terms of their consumption behavior. |
B. | represent a large share of the entire market and have buying power. |
C. | have diverse needs and have potential for future growth. |
D. | have diverse needs and be willing and able to purchase the product. |
E. | have the potential for future growth and increased profit or ROI. |
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19. | The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of
B. | organizational buyers. |
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20. | In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.
B. | organizational buyer group |
D. | ultimate consumer group |
E. | qualified prospect group |
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21. | A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as
C. | market differentiation. |
E. | product differentiation. |
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22. | Product differentiation refers to
A. | a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. |
B. | the unique combination of product benefits received by targeted buyers. |
C. | those characteristics of a product that make it superior to competitive substitutes. |
D. | a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. |
E. | the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights. |
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23. | Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's ___________ strategy.
C. | product differentiation |
E. | psychographic segmentation |
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24. | Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?
A. | product differentiation |
E. | psychographic segmentation |
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25. | Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today, you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a unique formulation to relieve a specific malady that makes it more specialized than competing products. The maker of Alka-Seltzer is using a ___________ strategy.
B. | product differentiation |
E. | product base development |
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26. | The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.
A. | self-regulatory industry standards |
B. | government regulations |
D. | buyers' or market needs |
E. | controllable environmental factors |
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27. | The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and
B. | government regulations. |
D. | controllable environmental factors. |
E. | the organization's marketing program. |
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28. | Market segmentation first stresses the importance of grouping people or organizations, according to the similarity of their needs and the benefits they are looking for in making a purchase, as represented by which stage of the market segmentation process?
A. | Link needs to actions. |
B. | Identify market needs. |
C. | Establish a marketing protocol. |
D. | Execute marketing program actions. |
E. | Segment and select the target markets. |
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29. | _______ links market needs to an organization's marketing program.
D. | Marketing program actions |
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30. | Market segmentation is only a means to an end. It leads to tangible marketing program actions that can
A. | clarify specific unmet needs. |
B. | identify market needs. |
C. | establish a marketing protocol. |
D. | increase sales and profitability. |
E. | segment and select the target markets. |
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31. | Zappos' original target market customers consisted of people who wanted all of the following except
A. | to receive quick delivery of their merchandise. |
B. | to buy sustainable shoes, accessories, and clothing. |
C. | to shop online in the convenience of their own homes. |
D. | to allow for free returns of goods if dissatisfied. |
E. | to have a wide selection of shoes. |
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32. | A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a
E. | product differentiation table. |
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33. | Market-product grid refers to
A. | a visual representation of all products offered within a specific product class. |
B. | a framework used to compare the relative market share of one firm's product offerings to those of its competitors. |
C. | a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
D. | a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. |
E. | a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. |
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34. | A market-product grid is a framework to relate
A. | total estimated expenses for each product sold to each market segment. |
B. | total anticipated revenue for each product-market segment combination. |
C. | total anticipated profit for each product sold to each market segment. |
D. | the market segments of potential buyers to relative market share compared to the largest competitor. |
E. | the market segments of potential buyers to products offered or potential marketing actions by an organization. |
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35. | A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.
A. | market segments of potential buyers |
B. | marketing objectives of potential products |
C. | total anticipated revenue |
D. | total anticipated profit |
E. | market share of the closest competitor |
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36. | A market-product grid is a framework to relate the market segments of potential buyers to
A. | estimated expenses for products sold. |
B. | products offered or potential marketing actions by an organization. |
C. | total anticipated revenue. |
D. | total anticipated profit. |
E. | market share of the closest competitor. |
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37. | To create a market-product grid for bed pillows, the most effective way to segment the market would be using
A. | the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older. |
B. | the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over. |
C. | the sleeper's gender: male or female. |
D. | the time of sleep: day or night. |
E. | how the sleeper sleeps: side, back, or stomach. |
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38. | The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to
A. | maintain market share. |
B. | increase sales and profits. |
C. | assume social responsibility. |
D. | use the firm's resources most efficiently. |
E. | provide the best quality products on the market. |
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39. | Which of the following statements regarding when and how to segment markets is most accurate?
A. | Even if a firm finds only one potential market segment, it should take advantage of the method to appear cutting-edge to its competitors and customers. |
B. | Market segmentation only works for large corporations; small businesses don't have the resources to engage in the process. |
C. | Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. |
D. | If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. |
E. | Market segmentation strategies work less than 10 percent of the time. |
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40. | When expenses are greater than the potential increased sales from market segmentation, a firm should
A. | not consider market segmentation at this time. |
B. | combine departments within the company to make the process more streamlined. |
C. | reduce production costs or increase prices to facilitate the segmentation process. |
D. | seek alternate channels of distribution, including Internet sales. |
E. | discontinue manufacturing any products that are not in the mature stage of their product life cycle. |
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41. | All of the following are market segmentation strategies except
B. | multiple products, multiple market segments. |
C. | one product, multiple market segments. |
D. | multiple products, one segment. |
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42. | When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids
A. | the extra cost of developing and producing additional versions of the product. |
B. | creating a customer service gap. |
C. | indirect distribution and logistics problems. |
D. | restructuring the firm's strategic planning. |
E. | amortization costs of product enhancements. |
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43. | When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy
A. | is a much more effective means of meeting consumers' individual needs. |
B. | creates greater savings in production costs. |
C. | is a more effective way of meeting organizational objectives. |
D. | has significantly higher distribution costs. |
E. | is more profitable since a firm can charge the new segments higher prices without changing the product. |
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44. | One marketing action that can be taken to sell a single product or service to multiple market segments is to
A. | develop and produce another version of the product. |
B. | manufacture products that appeal to different markets. |
C. | develop separate promotional campaigns. |
D. | purchase another firm that has additional products that would appeal to multiple markets. |
E. | issue stock to fund additional research and development for new products. |
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45. | The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 of the U.S. regions. What is the basis of its market segmentation strategy?
A. | psychographic segmentation |
B. | retail outlet segmentation |
C. | demographic segmentation |
D. | behavioral segmentation |
E. | geographic segmentation |
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46. | The annual Sporting News Baseball Yearbook uses 17 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of the following segmentation strategies?
A. | multiple products with one segment |
B. | one product with one channel of distribution |
C. | one product with multiple market segments |
D. | one product with changes based on customer behavior |
E. | multiple products with multiple segments |
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47. | Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?
A. | higher sales but lower profits |
B. | reduced quality and higher prices |
C. | meeting customer needs but at the expense of higher prices |
D. | lower prices but with higher production costs |
E. | higher quality but lower prices |
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48. | Which of the following is an example of a multiple products, multiple market segments strategy?
A. | College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States. |
B. | A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. |
C. | Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. |
D. | Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. |
E. | Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. |
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49. | Which of the following is an example of a multiple products, multiple market segments strategy?
A. | College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. |
B. | A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. |
C. | Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. |
D. | Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. |
E. | Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. |
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50. | Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
A. | conforms to all FDA guidelines. |
B. | uses the same promotion and packaging for all segments. |
C. | decreases the cost of the physical plant. |
D. | stabilizes competition. |
E. | better serves customers' needs. |
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51. | Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and
A. | conforms to all FDA guidelines. |
B. | creates economy of scale. |
C. | doesn't reduce quality or increase price. |
D. | decreases the cost of the physical plant. |
E. | stabilizes the sales revenues and profits. |
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52. | Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it meets customers' needs better, doesn't reduce quality or increase price, and
A. | conforms to all FDA guidelines. |
B. | adds to the manufacturer's sales revenues and profits. |
C. | creates economy of scale. |
D. | decreases the cost of the physical plant. |
E. | stabilizes the sales revenues and profits. |
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53. | Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as
C. | product differentiation. |
D. | economies of scale marketing. |
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54. | Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
B. | specialty customization. |
C. | virtual merchandising. |
D. | one product and multiple market segments. |
E. | multiple products and multiple market segments. |
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55. | ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
C. | multiple products and multiple market segments. |
D. | one product and multiple market segments. |
E. | specialty customization. |
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56. | MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of
C. | multiple products and multiple market segments. |
E. | specialty customization. |
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57. | Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of
C. | "Tiffany/Walmart" marketing. |
E. | specialty customization. |
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58. | Nike employs a __________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.
E. | psychographic segmentation |
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59. | Chip-N-Dough Cookie Co. will let you select cookies and put a photo of yourself on the tin. This is an example of
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60. | Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is priced from $24.95 to $32.95 per 12-foot roll. This is an example of
C. | synergistic marketing. |
D. | "Tiffany/Walmart" marketing. |
E. | specialty customization. |
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61. | Manufacturing a product only when there is an order from a customer is referred to as
B. | a one product, one market segment strategy. |
C. | synergistic marketing. |
E. | specialty customization. |
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62. | Model E is a new type of car manufacturer that relies on Internet ordering. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures each car when a customer chooses from a limited number of options and orders. Model E relies on
B. | a one product, one market segment strategy. |
C. | build-to-order manufacturing. |
D. | specialty customization. |
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63. | Organizational synergy is the increased customer value achieved through
A. | performing organizational functions more efficiently. |
B. | more discounts or larger rebates at the point of sale. |
C. | involvement of the ultimate consumer in product design. |
D. | an increase in the knowledge of competitors. |
E. | shared ownership of the organization through publicly traded stock. |
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64. | The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as
B. | organizational synergy. |
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65. | The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies.
B. | market share increases |
C. | product deficiencies decrease |
D. | customers should be better off |
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66. | All of the following are examples of increased customer value from organizational synergy except
B. | increased brand awareness. |
D. | improved distribution. |
E. | improved quality of existing products. |
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67. | When a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets, it is referred to as
C. | product appropriation. |
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68. | When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own Loft outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as
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69. | Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?
A. | Will our new products steal customers or sales from our older ones? |
B. | Will the products compete head-to-head with those of a competitor? |
C. | Can this action successfully draw customers away from competitors? |
D. | Are there enough similarities within the market segment to warrant such high costs? |
E. | Will this action eliminate the need for individualized advertising and promotion? |
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70. | Cannibalization would most likely occur if
A. | Dell adds high-end speaker systems to its line. |
B. | General Mills launches Caramel Crunch Cheerios. |
C. | General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike. |
D. | Pillsbury adds boxed sugar to its product mix. |
E. | Procter & Gamble adds a new line of baby clothing to its Pampers stable of products. |
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71. | Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer
A. | a low-priced product to a high-income or high net worth segment. |
B. | a high-priced product to a low-income or low net worth segment. |
C. | different variations of the same basic offering to high-end and low-end segments. |
D. | a high-priced and a low-priced offering to a single market segment. |
E. | different offerings to high-end and low-end segments. |
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72. | Which of the following is an example of a Tiffany/Walmart strategy?
A. | College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. |
B. | A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience. |
C. | Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. |
D. | Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. |
E. | Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. |
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73. | The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of
B. | a Tiffany/Walmart strategy. |
C. | one product and multiple market segments. |
E. | psychographic market segmentation. |
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74. | You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of
B. | organizational synergy. |
C. | one product and multiple market segments. |
E. | a Tiffany/Walmart strategy. |
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75. | The purpose of the five key steps in segmenting and targeting markets is to
A. | identify competitors that provide similar products that satisfy a firm's customers' needs. |
B. | provide guidance to reposition a firm's products. |
C. | generate new-product ideas for firms that are not growing in market share. |
D. | link market needs of customers to the organization's marketing program. |
E. | correlate directly to each of the five environmental forces. |
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76. | The first step in segmenting and targeting markets that links customer needs to marketing actions is to
A. | group potential buyers into segments. |
B. | group products to be sold into categories. |
C. | develop a market-product grid and estimate size of the overall market. |
D. | select target markets. |
E. | take marketing actions to reach target markets. |
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77. | The second step in segmenting and targeting markets that link customer needs to marketing actions is to
A. | group potential buyers into segments. |
B. | develop a market-product grid and estimate size of the overall market. |
C. | select target markets. |
D. | take marketing actions to reach target markets. |
E. | group products to be sold into categories. |
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78. | The third step in segmenting and targeting markets that links customer needs to marketing actions is to
A. | group potential buyers into segments. |
B. | group products to be sold into categories. |
C. | select target markets. |
D. | develop a market-product grid and estimate size of markets. |
E. | take marketing actions to reach target markets. |
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79. | The fourth step in segmenting and targeting markets that links customer needs to marketing actions is to
A. | group potential buyers into segments. |
B. | select target markets. |
C. | group products to be sold into categories. |
D. | develop a market-product grid and estimate size of the overall market. |
E. | take marketing actions to reach target markets. |
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80. | The fifth step in segmenting and targeting markets that links customer needs to marketing actions is to
A. | take marketing actions to reach target markets. |
B. | group potential buyers into segments. |
C. | select target markets. |
D. | group products to be sold into categories. |
E. | develop a market-product grid and estimate size of the overall market. |
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81. | There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?
A. | Create product groupings. |
B. | Identify market needs. |
C. | Take marketing actions to reach target markets. |
D. | Develop a market-product grid and estimate size of markets. |
E. | Form prospective buyers into market segments. |
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82. | A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then __________ without encountering excessive costs.
A. | eliminate potential nonbuyers |
B. | identify segmentation variables |
C. | select the market segment(s) to target |
D. | redirect their purchase behaviors |
E. | ignore any and all similarities |
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83. | All of the following are criteria used for forming market segments except
A. | difference of needs of buyers among segments. |
B. | potential for increased profit. |
C. | cost of reaching the segment. |
D. | potential of a marketing action to reach a segment. |
E. | simplicity and cost-effectiveness of assigning potential buyers to segments. |
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84. | Which of the following is a criterion used in forming market segments?
A. | similarity of segments to competitors' segments |
B. | differences between potential suppliers or distributors |
C. | differences of needs of buyers within a segment |
D. | market size of the segment |
E. | simplicity and cost-effectiveness of assigning potential buyers to segments |
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85. | The best segmentation approach is the one that
A. | makes it easiest to reach the segment. |
B. | maximizes the opportunity for future profit and ROI. |
C. | recognizes different needs of buyers among different segments. |
D. | recognizes similarities of needs of potential buyers within a segment. |
E. | is simplest and least costly in assigning potential buyers to segments. |
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86. | Which of the following is not a reason to segment a market?
A. | The ability to assign buyers to a segment is simple and cost-effective. |
B. | It would cause an increase in market share or profit. |
C. | All the buyers in the entire market have similar wants and needs. |
D. | There is a potential marketing action to reach it. |
E. | There are different wants and needs of buyers in the entire market. |
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87. | Which of the following is not a criterion to use in forming market segments?
A. | The ability to assign buyers to a segment is cost-effective and simple. |
B. | The result of segmenting will cause an increase in market share or profit. |
C. | There are significant similarities among buyers in the market segment. |
D. | There is a potential marketing action to reach the segment. |
E. | The cost to reach the segment exceeds its profitability. |
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88. | Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should
A. | increase the advertising budget. |
B. | prune the product offerings. |
C. | family brand the products. |
E. | group products into categories. |
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89. | Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments.
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90. | Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?
A. | Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar. |
B. | Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. |
C. | The needs of buyers should be different, both between segments and within segments. |
D. | The needs of buyers should be the same, both between segments and within segments. |
E. | If there are any differences at all, you should forgo any segmentation. |
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91. | Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:
A. | Is this product useful on a global scale? |
B. | Is it possible to reposition this product? |
C. | Is there too much competition for this product? |
D. | Is the market loyal to the product? |
E. | Would segmentation be worth doing and is it possible? |
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92. | About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?
A. | different needs of buyers among different segments |
B. | similarity of needs of potential buyers within a segment |
C. | simplicity and cost-effectiveness of assigning potential buyers to segments |
D. | potential for increased profit and ROI |
E. | potential of a marketing action to reach a segment |
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93. | Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.
D. | psychographic segmentation |
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94. | Segmentation based on where prospective customers live or work is referred to as
A. | zip code segmentation. |
B. | geographic segmentation. |
C. | regional segmentation. |
E. | NAICS code segmentation. |
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95. | Region and city size are both variables used to employ __________ segmentation.
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96. | Campbell Soup Co. found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. Campbell's is using __________ segmentation.
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97. | Which of the following statements best illustrates geographic segmentation?
A. | GE builds a downsized microwave oven to hang under kitchen cabinets. |
B. | Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. |
C. | Campbell's plants in Texas and California produce a hotter nacho cheese sauce to serve those regions better. |
D. | A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. |
E. | A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area. |
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98. | Universal Concerts wants to bring a series of music concerts to Canada next year. In general, western Canadians prefer country music while eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to
A. | geographic characteristics. |
B. | demographic characteristics. |
C. | music format characteristics. |
D. | behavioral characteristics. |
E. | psychographic characteristics. |
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99. | Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base?
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100. | Which of the following is a consumer market demographic segmentation variable?
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101. | More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals, such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market.
C. | demographic characteristics |
D. | behavior characteristics |
E. | psychographic characteristics |
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102. | Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable?
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103. | When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income fall into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market?
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104. | The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.
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105. | Which of the following statements demonstrate the formation of a segment based on household size?
A. | Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine. |
B. | GE built a downsized microwave oven to hang under kitchen cabinets. |
C. | Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. |
D. | A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. |
E. | A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area. |
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106. | At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African Americans. This is an example of __________ segmentation.
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107. | Which of the following statements regarding segmentation bases is most accurate?
A. | The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. |
B. | Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic. |
C. | The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective. |
D. | Behavioral segmentation is based primarily on personality. |
E. | Psychographic segmentation is based primarily on product features. |
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108. | Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as
A. | behavioral segmentation. |
B. | affective segmentation. |
C. | socioeconomic segmentation. |
D. | psychographic segmentation. |
E. | psychosocial segmentation. |
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109. | All of the following are psychographic segmentation variables except
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110. | Personality and lifestyle are both variables used to employ __________ segmentation.
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111. | Magazines such as Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy.
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112. | The Nielsen PRIZM lifestyle segmentation is based on the belief that "birds of a feather flock together." This type of consumer segmentation is referred to as
A. | situational segmentation. |
B. | socioeconomic segmentation. |
C. | geographic segmentation. |
D. | psychographic segmentation. |
E. | behavioral segmentation. |
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113. | Nielsen PRIZM segmentation classifies every household into one of 66 demographically and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code.
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114. | Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as
A. | demographic segmentation. |
B. | psychographic segmentation. |
C. | geographic segmentation. |
D. | behavioral segmentation. |
E. | socioeconomic segmentation. |
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115. | Segmentation based on what product features are important to different customers is known as
A. | demographic segmentation. |
B. | behavioral segmentation. |
C. | psychographic segmentation. |
D. | geographic segmentation. |
E. | socioeconomic segmentation. |
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116. | Product features and usage rate are both variables used to employ __________ segmentation.
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117. | Behavioral segmentation may be based on
A. | lifestyles and demographics. |
B. | retailer and wholesaler behaviors. |
C. | geographic and demographic criteria. |
D. | product features and retail store type. |
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118. | Banana Republic, the clothing retailer, focuses a large proportion of its promotional activities toward its Banana Republic Luxe credit card holders. These Luxe cardholders must reach a specific spending threshold in each year of patronage. The company is using __________ segmentation.
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119. | College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge marketers understand this and offer a combination microwave, refrigerator, and freezer targeted to these students. MicroFridge is most likely using which basis of segmentation?
A. | sociocultural segmentation |
B. | psychographic segmentation |
C. | geographic segmentation |
D. | behavioral segmentation |
E. | socioeconomic segmentation |
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120. | Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?
A. | demographic segmentation |
B. | psychographic segmentation |
C. | behavioral segmentation |
D. | geographic segmentation |
E. | socioeconomic segmentation |
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121. | Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly to create loyal customers. Airlines are using __________ segmentation here.
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122. | Many companies have cut travel budgets so that very few businesspeople are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its trans-Atlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carryout a full day's schedule. The segmentation strategy of British Airways is an example of
A. | life stage segmentation. |
B. | lifestyle segmentation. |
C. | social class segmentation. |
D. | behavioral segmentation. |
E. | psychographic segmentation. |
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123. | ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable?
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124. | The quantity consumed or patronage (store visits) during a specific period is referred to as
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125. | Usage rate refers to
A. | the percentage of total possible users divided by the total number of consumers who actually use a product or service. |
B. | the number of times a customer uses or recommends a product or service annually. |
C. | quantity consumed or patronage (store visits) during a specific period. |
D. | the maximum number of times a customer has used a product or service historically. |
E. | the profits a firm earns from customers who consume a particular product or service. |
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126. | Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Alamo likely segments its market by
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127. | Frequency marketing is a strategy that focuses on
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128. | The market segmentation strategy known as frequency marketing focuses on
B. | the average number of times a person in the target audience is exposed to an advertisement. |
C. | consumption preferences. |
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129. | Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on
A. | geographic segmentation. |
B. | behavioral segmentation. |
C. | psychographic segmentation. |
D. | demographic segmentation. |
E. | buying condition segmentation. |
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130. | Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a(n) __________ strategy.
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131. | A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most?
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132. | The 80/20 rule suggests that
A. | 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. |
B. | 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. |
C. | 80 percent of a firm's sales are obtained from 20 percent of its customers. |
D. | 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. |
E. | 80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers. |
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133. | The 80/20 rule is most closely related to which basis of segmentation?
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134. | Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions. This is an example of what classic concept?
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135. | As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market. Which segmentation base and associated variable(s) should you use?
A. | psychographic: VALS and personality |
B. | demographic: gender and age |
C. | behavioral: students and nonstudents |
D. | geographic: city size and zip code |
E. | transportation mode: car, bike, public transportation, and none (walking) |
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136. | Which of the following is a basis used to segment U.S. organizational markets?
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137. | Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to
A. | differentiate products. |
B. | forecast sales to a consumer market. |
C. | segment an organizational market. |
E. | segment a consumer market. |
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138. | Which of the following statements about market segmentation for organizational markets is most accurate?
A. | Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. |
B. | Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. |
C. | Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. |
D. | Consumer markets use market segmentation criteria while organizational markets do not. |
E. | The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process. |
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139. | Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which segmentation variable might Evergreen use to segment the market?
A. | NAICS sector, such as manufacturers, or retailers, or lawyers |
C. | who buys, such as individual buyer or buying groups |
D. | metropolitan statistical area |
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140. | The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. Imagine that the agency decided the singer would not perform at venues located in communities that have less than 100,000 people. Thus, the agency is using __________ segmentation.
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141. | Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market?
A. | behavioral and geographic |
B. | number of employees and behavioral |
C. | purchase location and purchase type |
D. | NAICS code and geographic |
E. | behavioral and NAICS code |
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142. | If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells?
A. | grouping by caloric intake |
C. | grouping by meal occasion |
D. | grouping by usage rate |
E. | grouping by level of uniqueness |
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143. | Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?
A. | The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. |
B. | This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. |
C. | The products are grouped so people can relate to them in a more meaningful way when they shop. |
D. | Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. |
E. | Suppliers get preferential treatment based upon the number of different UPCs they provide. |
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144. | Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because
A. | it was easier to forecast future sales since there were fewer market-product combinations. |
B. | customers could buy in quantity and take advantage of quantity discounts. |
C. | their suppliers provided free displays and shelving to highlight Hallmark's products. |
D. | it helped buyers relate to the products and make decisions in a more meaningful way. |
E. | it allowed customers to compare price and quality with competitors who displayed their products in a similar manner. |
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145. | A market-product grid is a framework to relate
A. | total estimated expenses for each product sold to each market segment. |
B. | total anticipated revenue for each product-market segment combination. |
C. | total anticipated profit for each product sold to each market segment. |
D. | the market segments of current buyers to relative market share compared to the largest competitor. |
E. | the market segments of potential buyers to products offered or potential marketing actions by an organization. |
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146. | A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.
A. | market segments of potential buyers |
B. | marketing objectives of potential products |
C. | total anticipated revenue |
D. | total anticipated profit |
E. | market share of the closest competitor |
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147. | A market-product grid is a framework to relate the market segments of potential buyers to
A. | estimated expenses for products sold. |
B. | products offered or potential marketing actions by an organization. |
C. | total anticipated revenue. |
D. | total anticipated profit. |
E. | market share of the closest competitor. |
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148. | Each cell of the complete market-product grid shows the
A. | relative market share. |
B. | estimated market size. |
C. | investment required to reach the market. |
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149. | After establishing the market segments and product groupings on a market-product grid, the next step is to
A. | fill in the appropriate cells with precise statistical data from primary and/or secondary sources. |
B. | estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three. |
C. | total the vertical columns to identify the greatest marketing synergies and efficiencies. |
D. | total the horizontal rows to identify greatest operations/production synergies and efficiencies. |
E. | identify a marketing action for every product-market combination in the grid. |
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150. | One advantage of a market-product grid is that it can be used to
A. | make cost-cutting decisions under conditions of uncertainty. |
B. | screen many new-product ideas in order to select the one with the best long-run market potential. |
C. | determine which target market segments to select and which product groupings to offer. |
D. | select representative samples of consumers for marketing research studies. |
E. | relate the product life cycle to consumer demand. |
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151. | Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and
A. | how to implement the 80-20 rule. |
B. | which products to group into meaningful categories. |
C. | how to implement a harvesting strategy. |
D. | which product groupings to offer. |
E. | which products to reposition. |
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152. | All of the following are criterion used for selecting target market segments except
A. | compatibility with the organization's objectives and resources. |
C. | simplicity and cost of assigning potential buyers to segments. |
E. | cost of reaching the segment. |
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153. | Which of the following is a criterion used for selecting a target market?
A. | similarity of needs of potential buyers within a segment |
B. | difference of needs of sellers between segments |
C. | feasibility of a marketing action to reach a segment |
E. | simplicity and cost of assigning potential buyers to segments |
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154. | Which of the following is a criterion used for selecting a target market?
A. | similarity of needs of potential buyers within a segment |
B. | difference of needs of buyers between segments |
C. | expected growth of a segment |
D. | feasibility of a marketing action to reach a segment |
E. | simplicity and cost of assigning potential buyers to segments |
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155. | Which of the following is a criterion used for selecting a target segment?
A. | potential for increased profit |
C. | similarity of needs of potential buyers within a segment |
D. | difference of needs of buyers among segments |
E. | potential of a marketing action to reach a segment |
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156. | Which of the following is a criterion used for selecting a target segment?
A. | potential for increased profit |
B. | similarity of needs of potential buyers within a segment |
C. | cost of reaching the segment |
D. | difference of needs of buyers among segments |
E. | potential of a marketing action to reach a segment |
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157. | Five general criteria are often used to select target segments. They include: (1) the size of the market, (2) expected growth of the market, (3) competitive position of the firm with respect to the market, (4) cost of reaching the segment, and (5) __________.
A. | compatibility with the organization's objectives and resources |
B. | potential of a marketing action to reach a segment |
C. | similarity of needs of potential buyers within a segment |
D. | difference of needs of buyers among segments |
E. | potential for increased profit |
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158. | It is not recommended that a firm select a target segment that
A. | would require entry in a global marketplace. |
B. | requires more than one marketing action. |
C. | has few competitors that target this same segment. |
D. | is incompatible with its company's goals or objectives. |
E. | has a growth potential that would require increasing the current workforce. |
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159. | Best Foods Co. is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments?
A. | Best Foods' competitive position in the segment |
B. | Best Foods' product groupings |
C. | expected growth of the market segment |
D. | size of the market segment |
E. | cost of reaching the segment |
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160. | A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market may
A. | have no expected growth. |
B. | not be compatible with the company's current resources. |
C. | not be worth doing since its market size is very small. |
D. | not be readily accessible to the firm's marketing programs. |
E. | be relatively expensive to reach. |
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161. | During its market segmentation process for the Nike LeBron X basketball shoe, which sells for more than $200 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of
A. | selecting target market segments to reach. |
B. | forming products to be sold into groups. |
C. | developing a market-product grid and estimating size of markets. |
D. | taking marketing actions to reach target markets. |
E. | forming prospective buyers into segments. |
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162. | Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just
A. | formed a market segment using critical product features. |
B. | formed products to be sold into groups. |
C. | developed a market-product grid and estimating size of markets. |
D. | taken a marketing action to reach a target market segment. |
E. | formed prospective buyers into segments. |
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163. | Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations—one that is or may soon be near this Wendy's?
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164. | When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other hamburger chains but also the
A. | meals at golf and country clubs. |
B. | dormitory meal plans at surrounding colleges and universities. |
C. | items for sale at gas stations and convenience stores. |
D. | local farmer's markets that sell produce. |
E. | nearly every food item sold at local grocery stores. |
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165. | In the early 1980s, Apple, Inc., was often called "Camp Runamok" because
A. | every employee was encouraged to do his or her own thing. |
B. | it was concentrating on laptops while everyone else was concentrating on personal computers. |
C. | all the employees were so young, so they often played more than they worked. |
D. | there were no coherent product lines targeted at identifiable market segments. |
E. | its personal computers were running amok with viruses, spyware, and other problems. |
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166. | In an Apple market-product grid for its personal computer line, the professional segment of medium/large businesses seems willing to purchase all of the items in Apple's product line. This allows Apple to enjoy cost savings due to
A. | segment differentiation. |
D. | segment repositioning. |
E. | product differentiation. |
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167. | In an Apple market-product grid for its personal computer line, the iMac is popular among all the segments Apple can target. This allows Apple to enjoy
A. | segmentation synergies. |
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168. | Two key types of synergies are
A. | supplier and distributor synergies. |
B. | marketing and product synergies. |
C. | industry-dominated and consumer-dominated. |
D. | product and production synergies. |
E. | consumer and market synergies. |
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169. | Marketing synergies often come at the expense of product synergies because
A. | product synergies are more effective for penetrating a market rather than creating one. |
B. | multiple market segments usually require multiple products. |
C. | it is easier to change a product than to completely develop a new marketing plan. |
D. | a single customer segment will likely require a variety of products. |
E. | no company can afford to do both at the same time. |
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170. | __________ often come at the expense of __________ because a single customer segment will likely require a variety of products, each of which will have to designed and manufactured.
A. | Product synergies; marketing synergies |
B. | Marketing synergies; product synergies |
C. | Supplier synergies; consumer synergies |
D. | Distributor synergies; supplier synergies |
E. | Marketing synergies; finance synergies |
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171. | The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as
A. | product repositioning. |
C. | competitive positioning. |
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172. | Product positioning refers to
A. | an outdated concept that assigns product value by association with social class. |
B. | the place a product offering occupies in consumers' minds on important attributes. |
C. | the competitive advantage of one product over another. |
D. | changing the place a product occupies in a consumer's mind relative to competitive products. |
E. | using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets. |
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173. | Changing the place an offering occupies in consumers' minds relative to competitive products is referred to as
D. | product repositioning. |
E. | product differentiation. |
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174. | Product repositioning refers to
A. | the place a product offering occupies in consumers' minds on important attributes. |
B. | using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets. |
C. | changing the place an offering occupies in consumers' minds relative to competitive products. |
D. | the practice of selling a firm's least successful product line and redirecting that revenue into a totally new product. |
E. | the competitive advantage of one product over another. |
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175. | Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers.
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176. | Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier. Mott's used a __________ strategy.
D. | product differentiation |
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177. | Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as
A. | competitive repositioning. |
C. | differentiation positioning. |
D. | head-to-head positioning. |
E. | product distinction positioning. |
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178. | One approach to positioning a new product in a market is __________ positioning, which involves competing directly with competitors on similar product attributes in the same target market.
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179. | Head-to-head positioning requires a product to
A. | compete with products from competitors of the same size and country of origin. |
B. | compete with competitors on similar product attributes but in a different market. |
C. | compete with competitors on similar product attributes in the same market. |
D. | compete against very similar products from its own company. |
E. | compete against a single competitor with an identical offering. |
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180. | In the athletic shoe market, Reebok and Nike practice __________ positioning since both manufacturers vie for the same customers with technologically advanced products.
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181. | A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as
A. | competitive repositioning. |
B. | head-to-head positioning. |
C. | differentiation positioning. |
E. | product repositioning. |
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182. | Differentiation positioning requires a product to
A. | emphasize unique product attributes to compete directly with competitors. |
B. | compete directly with competitors on similar product attributes in the same target market. |
C. | compete with competitors on similar product attributes but in a different market. |
D. | seek a less-competitive, smaller market niche in which to locate a brand. |
E. | develop marketing actions to move a product or brand to an ideal position. |
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183. | In the sneaker business, Heelys practiced __________ positioning when it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe's heel marketed to young teens.
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184. | Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drugstores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches
A. | compete for the same segment through different channels of distribution. |
B. | develop similar products as Timex but under different names. |
C. | use a differentiation positioning strategy. |
D. | compete for the same customers through similar retail outlets. |
E. | create cognitive dissonance in consumers who purchased Timex wristwatches. |
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185. | "For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability" is a __________ statement for Volvo in North America.
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186. | A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a
E. | product differentiation chart. |
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187. | Perceptual map refers to
A. | a framework used to compare one firm's product offerings with another firm's offerings in relationship to their relative market share. |
B. | a framework used to demonstrate the growth or decline of specific market segments within an industry. |
C. | a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand. |
D. | a framework to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization. |
E. | the place a product occupies in a single consumer's mind on unimportant attributes relative to competitive products. |
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188. | A graph displaying consumers' perceptions of product attributes in two dimensions is referred to as a
E. | product differentiation chart. |
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189. | Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands
A. | against large market segments in a market-product grid. |
B. | against small market segments in a market-product grid. |
C. | in virtual space that represents the business or product's time in existence and growth. |
D. | in the minds of consumers. |
E. | against the revenues generated by other products or brands within the company. |
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190. | A perceptual map enables a manager to see how __________ perceive competing products or brands, as well as the firm's own product or brand.
C. | independent rating organizations such as Consumer Reports |
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191. | The axes on a perceptual map are
A. | sales and profitability. |
B. | two product attributes, ranging from high to low on that attribute. |
C. | market share and market growth rate. |
D. | product variety and profitability. |
E. | customer perceptions of the firm's product versus the brand of the firm's principal competitor. |
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192. | Which of these is collected from consumers to develop a product's perceptual map?
A. | consumer judgments about the important attributes for a product or brand class |
B. | a listing of all prospective brands and products |
C. | managerial judgments about how consumers perceive products |
D. | rank order of the ratings of an existing brand's preference relative to its competitors |
E. | detailed explanations of why consumers make the choices they do |
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193. | To effectively position a product or brand, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to critical attributes; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.
A. | decide whether to keep or delete the market segment that your product offering targets |
B. | identify the competitors' brands that make up the consideration set |
C. | identify the important attributes for the product or brand class |
D. | create a marketing plan based on customers' perceptions |
E. | identify market niches that were not selected during the market segmentation process |
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194. | To effectively position a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2) __________; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.
A. | decide whether to keep or delete the market segment that your product offering targets |
B. | identify the competitors' brands that make up the consideration set |
C. | identify market niches that were not selected during the market segmentation process |
D. | discover how target customers rate competing products or brands with respect to these attributes |
E. | create a marketing plan based on customers' perceptions |
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195. | To effectively position a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company's product or brand in the minds of potential customers.
A. | discover where the company's product or brand is on these attributes in the minds of potential customers |
B. | decide whether to keep or delete the market segment that your product offering targets |
C. | identify the competitors' brands that make up the consideration set |
D. | create a marketing plan based on customers' perceptions |
E. | identify market niches that were not selected during the market segmentation process |
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196. | A depiction of a __________ for beverages in the minds of adults is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers.
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197. | By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called
A. | product differentiation. |
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198. | The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame. Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet technology.
A. | competitive segmentation |
C. | product differentiation |
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Short Answer Questions
199. | What is market segmentation and why is it important?
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200. | What is product differentiation? How does it relate to market segmentation? How does it potentially improve a firm's revenues?
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201. | Describe the market segmentation process.
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202. | Why would an organization produce a single product or service and then attempt to sell it to two or more market segments?
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203. | Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?
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204. | Explain the difference between mass customization and build-to-order.
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205. | There are five key steps in segmenting and targeting markets, which link market needs of customers to the organization's marketing program. List these five key steps.
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206. | A marketing manager should develop segments for a market that meet five principal criteria. List these important factors in forming market segments.
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207. | A nonprofit food bank was handing out food to anyone who requested it on a weekly basis. It now wants to give free food only to people who go hungry on a daily basis. This will be the market segment it targets. How does the formation of its market segments differ from the strategy used for a retail store?
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208. | Describe the four general bases that are used to segment consumer markets.
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209. | Assume you are manager of The Outback Steak House, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.
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210. | Explain the 80/20 rule.
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211. | What are the segmentation bases for U.S. organizational (business) markets?
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212. | Explain what a market-product grid is and how it is used.
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213. | What are the criteria used to select target markets?
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214. | Explain the difference between marketing synergies and product synergies.
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215. | Define product positioning. What are two approaches to product positioning? Give an example of each approach.
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216. | What are the three types of data needed from consumers to develop a perceptual map?
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217. | What are the four steps to positioning a product with a perceptual map?
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