Segmentation & Brand Positioning Test Bank Answers Chapter 6

Applied Marketing, 2e (Padgett)

Chapter 6 Using Segmentation Targeting and Positioning to Distinguish a Brand

Within the Market

1) Both segmentation and mass marketing are essential if a company is to succeed in its marketing efforts.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

2) Demographics is an important part of looking at the environment. That same kind of information can be used to segment markets.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

3) Demographic information can be used in many ways. Marketers can even select music to accompany ads or play in stores based demographics.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

4) Marketers have a number of segmentation approaches they can use with customers that rely on where they live, what they have accomplished, what they want to do, and what they actually do. As businesses are not people, it is virtually impossible to segment businesses and they don't behave as people do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

5) To use demographic segmentation effectively marketers search for a unique, defining consumer characteristic.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

6) Despite the obvious difference in purchasing behaviors, uses, and sizes of transactions in marketing to businesses and marketing to consumers, segmentation can be used for B2B and B2C.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

7) It is important to identify which consumers are NOT interested in your product when segmenting a market.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

8) Once the segments have been identified using all of the selected variables, it is important to describe each one in detail to understand the market.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

9) The segments a firm develops will be the same as other competitors as the firms are operating in the same market with the same customers.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

10) Determining accurate and meaningful categories requires using a large number of segmentation variables.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: The Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

11) A firm creates a number of segments based on research and applies the five criteria to determine the segments are viable. Then, it will not use some of them.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

12) Positioning statements are essential for communications plans but operate independently of the other elements of the marketing mix.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

13) Perceptual maps are particularly useful as they establish positions relevant to all the markets in which the company is operating.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

14) When a firm is selecting target markets, it is important to consider ethical and moral reasons to choose the target.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

15) If the market is not responding to a firm's positioning statement, the best and least risky marketing option would be to reposition the brand to turn the situation around.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

16) Geographic segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.

B) the process of separating customer groups based on location.

C) the process of separating customer groups based on lifestyle.

D) the process of separating customers based on what they do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

17) Psychographic segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.

B) the process of separating customer groups based on location.

C) the process of separating customer groups based on lifestyle.

D) the process of separating customers based on what they do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

18) Behavioral segmentation is

A) the process of categorizing different groups of customers in a market, based on customer differences.

B) the process of separating customer groups based on location.

C) the process of separating customer groups based on lifestyle.

D) the process of separating customers based on what they do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

19) Demographic segmentation is

A) the process of categorizing different groups of customers in a market based personal characteristics such as age, race, and so on.

B) the process of separating customer groups based on location.

C) the process of separating customer groups based on lifestyle.

D) the process of separating customers based on what they do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

20) A key variable to demographic segmentation is

A) gender.

B) social class.

C) brand loyalty.

D) usage rate.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

21) Which of the following is NOT one of the variables used in behavioral segmentation?

A) Education attained

B) Brand loyalty

C) Benefits sought

D) Buyer readiness

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

22) Which variable is considered most accurate for segmenting customer groups?

A) Geographic

B) Demographic

C) Psychographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

23) Which variable is least useful when segmenting business markets?

A) Geographic

B) Demographic

C) Psychographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

24) What is the primary purpose of market segmentation?

A) To denote the differences between your company's offerings versus those of close competitors

B) To create focused marketing mixes that effectively meet the needs of specific customers

C) To research customer perceptions of products and services in an effort to develop marketing opportunities

D) To understand the various categories of customer groups, which aids companies in targeting an entire mass market

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

25) The process of putting customers or potential customers into groups based on customer differences is

A) market categorization.

B) market segmentation.

C) market division.

D) market assessment.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation Definition and Purpose

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

26) Once a marketer begins the process of market segmentation, he or she knows this will require developing

A) individual profitability analyses.

B) separate products and brands.

C) different marketing mixes.

D) mass personalization.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation Definition and Purpose

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

27) Which broad category of segments is easy to apply and where relevant information is readily available?

A) Geographic

B) Demographic

C) Psychographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

28) Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called

A) demographics.

B) needs response.

C) marketing segmentation.

D) market optimization.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

29) Bragg Company is going through the market segmentation process. They divide customers into two groups: 1) those over 50, and 2) those under 50. This is an example of

A) geographic segmentation.

B) demographic segmentation.

C) psychographic segmentation.

D) behavioral segmentation.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

30) Riley Surf Company is going through the market segmentation process. They divide customers into two groups: 1) those who live in California, and 2) those who don't. This is an example of

A) geographic segmentation.

B) demographic segmentation.

C) psychographic segmentation.

D) behavioral segmentation.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

31) Shredville Company is going through the market segmentation process. They divide customers into two groups: 1) those who prefer snow skiing, and 2) those who prefer snowboarding. This is an example of

A) geographic segmentation.

B) demographic segmentation.

C) psychographic segmentation.

D) behavioral segmentation.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

32) Brag Company is going through the market segmentation process. They divide customers into two groups: 1) those who snow ski 0-4 times a year, and 2) those who snow ski more than 4 times a year. This is an example of

A) geographic segmentation.

B) demographic segmentation.

C) psychographic segmentation.

D) behavioral segmentation.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

33) Gnarly Company makes shoes designed for skateboarding. What is the most likely demographic variable Gnarly will segment the market on?

A) Climate

B) Physical location

C) Lifestyle

D) Age

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Analysis

34) Ryder Company segmented the market based on the brand loyalty variable; what type of segmentation are they performing?

A) Psychographic

B) Lifestyle

C) Demographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

35) Tide segmented the market based on customer lifestyles; what type of segmentation are they performing?

A) Psychographic

B) Lifestyle

C) Demographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

36) Apple segmented the market based on whether customers were millennials; what type of segmentation are they performing?

A) Psychographic

B) Lifestyle

C) Demographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

37) Nike segmented the market based on whether customers considered themselves pessimistic; what type of segmentation are they performing?

A) Psychographic

B) Lifestyle

C) Demographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

38) Vineyard Vines segmented the market by dividing customers between those who make over $100,000 and those who don't; what type of segmentation are they performing?

A) Psychographic

B) Lifestyle

C) Demographic

D) Behavioral

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

39) Angela and Steve were expanding their business selling scooters that were ideal for an urban environment. This was their first attempt at segmentation, and they tried to look at the market in several ways. Which of the following is NOT one of the usual methods of geographic segmentation?

A) Density

B) Region

C) Size

D) State

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

40) Mario had two kitchen appliance stores in a mid-sized town, and he used geographic segmentation, particularly focusing on the location of the stores. The results were disappointing. Why do you think this geographic segmentation didn't work?

A) The stores were likely too close to each other to enable geographic segmentation.

B) The business was too small to be able to use segmentation effectively.

C) Geographic segmentation does not account for the key variables in decision making.

D) There are so many factors such as competition and weather that it would be impossible to analyze the failure definitively.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

41) Characteristics such as gender, race, religion and national origin may be effective in segmentation if

A) local laws and regulations permit profiling.

B) the marketer does not explicitly mention or show the characteristics in promotions.

C) alternatives would be too expensive to pursue.

D) the characteristics can be used to identify purchasing behaviors.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

42) Stephanie could not find a significant pattern in looking at the demographic characteristic of her current customers. She had tried age, gender, income, national origin, and more but was not satisfied. She knew she needed to segment her market and was considering whether it might be possible to use another characteristic such as personality. What kind of segmentation approach would you recommend to her?

A) Psychographics

B) Complex demographics

C) Geo demographics

D) Insight segmentation

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

43) Lawrence was monitoring the results of his demographic segmentation campaign for his mid-sized firm, and while it was doing okay, it felt it could be better. He was reluctant to go to psychographics as a basis for his segmentation effort because

A) he felt customers would feel this was an invasion of their privacy.

B) no one in the marketing area had a degree in psychology to support the segmentation.

C) psychographics works well with services but is not generally applicable to products.

D) he knew psychographics required sophisticated research to develop, which was beyond the capacity of his firm.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

44) Marketers have many choices on how to segment markets. What is the main advantage to using the behavioral segmentation approach? Behavioral segmentation

A) relies on external census data as in demographics.

B) accounts for people might be moving in and out of a geographic area.

C) focuses on the lifestyles of customers and potential customers.

D) is based on what customers do, not what they say they would do.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

45) Assume you are in the marketing area of a small firm selling office equipment to a range of business. You know segmentation would be better than mass marketing, and with limited resources, you want to use demographic segmentation. For consumers you might use family life cycle stage, and the equivalent demographic approach for business segmentation would be

A) number of employees.

B) stages in business partnership cycle.

C) depth of product lines.

D) years in business.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

46) Emily was beginning her first assignment as an assistant marketer when she examined the segments being used by her new employer. While she had learned the four distinct, broad categories used in segmentation, she found that in practice

A) the four categories overlap.

B) modern marketers used only three of the four categories.

C) these categories are not used in online marketing.

D) standard categories are used within industry groups.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

47) What common factor can be found in firms marketing food products, real estate, and sports equipment?

A) Marketers must change marketing objectives as customers tastes change.

B) Marketers should consider geographic segmentation at a minimum.

C) Marketers have found that segmentation is not cost effective.

D) Marketers should develop detailed segments within only one of the four broad categories.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

48) Which of the following is the best example of behavioral market segmentation?

A) Xiomara's Nail Salons are all located in upscale, urban areas.

B) Nycole's Spas advertise with stylish, female customers in mind.

C) Silver Fitness Centers cater to an older clientele.

D) Jenny's Hair Salons offer a specially priced hair-care package to their best customers.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

49) Which of the following is the best example of geographic market segmentation?

A) Stores focus lawn mower sales in rural and suburban areas.

B) Advertisements for lawn equipment are targeted to married couples and families.

C) Lawn mowers are sold online.

D) Televised commercials for lawn mowers are aimed at people who value order and beauty.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

50) Which statement best describes demographic segmentation?

A) It is often the first approach companies use.

B) Individual traits are more often effective than combinations of traits.

C) It includes customers in different stages of the buying process.

D) It is often difficult for marketers to measure and assign.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

51) Which of the following is the best example of psychographic market segmentation?

A) Old Spice targets those customers who have been loyal to the brand for decades.

B) Old Spice commercials target the "manly" man.

C) Old Spice primarily sells product in southern U.S. states.

D) Old Spice, once targeted toward men, now targets anyone.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

52) Which statement best describes behavioral segmentation?

A) Frequent shopper cards provide insight to marketers.

B) Marketers take this approach when using music to appeal to different age groups.

C) Variables include lifestyle and occupation.

D) It is often the first approach companies use.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

53) Which of the following describes the best similarity between segmentation tools PRIZM and Tapestry?

A) Each categorizes customers into more than 100 different segments

B) Each is owned by Nielsen

C) Each suggests that similar people live in close proximity

D) Each creates segments primarily using behavioral data

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

54) When firms are producing affordable goods that people buy because the goods increase their sense of self-esteem, they will most likely use what segmentation approach?

A) Identity segmentation

B) Income segmentation

C) Social segmentation

D) Psychographic segmentation

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

55) A manufacturer making high-quality speakers knows some younger consumers buy the speakers for gaming, some older consumers for music reproduction, and some other consumers, both older and younger, for movie viewing. The manufacturer will most likely use what kind of segmentation?

A) Behavioral segmentation

B) Income segmentation

C) Age-based segmentation

D) Psychographic segmentation

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation Variables

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

56) Which of the following is the best example of demographic market segmentation?

A) Personal razors are sold in mass merchandise stores across the United States.

B) Most brands sell a line of personal razors that are pink or purple.

C) Advertisements for personal razors often tout safety features.

D) Televised commercials for personal razors are aimed at people who value cleanliness and beauty.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

57) Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. Which segmentation method would Cover be least likely to use and why?

A) Demographic segmentation because nearly every household utilizes trash cans.

B) Behavioral segmentation because behavioral variables have little effect on the use and need for a trash can cover.

C) Psychographic segmentation because the variables are difficult for marketers to measure

D) Geographic segmentation because the use of trash cans isn't dependent upon geography.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

58) Jesse discovered a wealth of demographic information by looking at the U.S. Census data, and he wanted to use the information for demographic segmentation. What would be your best advice to him about demographic segmentation?

A) Find the one characteristic that makes the most sense and focus on that with laser-like precision.

B) Use no more than two variables to make segmentation more reliable and testable.

C) Use multiple segments to accommodate the purchasing behaviors of his customers.

D) Use as many characteristics as he could manipulate in his computer programs.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

59) A mass market approach

A) assumes the market is just one big segment.

B) assumes every customer is their own segment.

C) is the process of separating customer groups based on location.

D) is the process of separating customer groups based on lifestyle.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

60) A micromarketing approach

A) assumes the market is just one big segment.

B) assumes every customer is their own segment.

C) is the process of separating customer groups based on location.

D) is the process of separating customer groups based on lifestyle.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

61) Generally speaking, how many steps are there in the segmentation process?

A) 5

B) 6

C) 7

D) 8

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

62) Which of the following is NOT a criterion needed for a market segmentation approach to be effective?

A) Measurable

B) Substantial

C) Responsive

D) Marketable

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

63) Which of the following is NOT one of the steps in the Segmentation Process?

A) Research the market dimensions

B) Narrow the market

C) Select general variables within a selected category

D) Develop a profile for each segment

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Comprehension

64) Differentiated marketing is also known as

A) micromarketing.

B) variable marketing.

C) multi-segment marketing.

D) niche marketing.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

65) Which of the following is NOT one of the criteria for effective marketing segmentation?

A) Identifiable

B) Measurable

C) Accessible

D) Affordable

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Knowledge

66) What is the sixth and final step in the segmentation process?

A) Define the broad market.

B) Narrow the market.

C) Choose specific segmentation variables.

D) Develop a profile for each segment.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

67) Which term refers to the customization of the marketing mix for each customer?

A) Micromarketing

B) Differentiated marketing

C) Multi-segmented marketing

D) Niche marketing

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

68) The process of segmentation goes from narrowing down from the very broad market definition to

A) selecting general variable segments to be used.

B) identifying categories within each variable.

C) developing a profile for each segment.

D) identifying the individual consumers within the segment.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: The Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

69) As micromarketing is expensive and not often necessary, the firms that tend to use it are those firms that

A) have few products or services to offer.

B) have many, intense competitors.

C) have excess financial resources.

D) have products that are customized products and services.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: The Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

70) Which of the following is NOT one of the five criteria used to evaluate a segment?

A) Identifiable

B) Realistic

C) Substantial

D) Responsive

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

71) In which step of the segmentation process would a SWOT analysis be most useful?

A) Define the broad market

B) Narrow the market

C) Select general variable category(ies) for segmentation

D) Choose specific segmentation variables within a selected category

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

72) Adidas is currently trying to decide if segmentation based on demographics or psychographics makes the most sense. In which step of the segmentation process are they?

A) Define the broad market

B) Narrow the market

C) Select general variable category(ies) for segmentation

D) Choose specific segmentation variables within a selected category

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

73) Microsoft has decided to that behavioral segmentation makes the most sense. Which step of the segmentation process is next?

A) Narrow the market

B) Select general variable category(ies) for segmentation

C) Define the broad market

D) Choose specific segmentation variables within a selected category

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Application

74) Able Co. is a brand-new clothing company. They've decided they want to make clothes. Specifically, they want to make clothes for outdoor recreation. Which steps of the segmentation process have they completed?

A) 1) Define the broad market

B) 1) Define the broad market, 2) Narrow the market

C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation

D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

75) Able Co. is a brand-new clothing company. They've decided they want to make clothes and divide the market between individuals who make more than $80,000 a year and those who make less. Which steps of the segmentation process have they completed?

A) 1) Define the broad market

B) 1) Define the broad market, 2) Narrow the market

C) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation

D) 1) Define the broad market, 2) Narrow the market, 3) Select general variable category(ies) for segmentation, 4) Choose specific segmentation variables within a selected category

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

76) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "identifiable" criterion?

A) Customers who live somewhere with an average temperature of at least 60 degrees.

B) Customers who typically vote republican.

C) Customers who are socially responsible.

D) Customers who are pessimistic.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

77) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "substantial" criterion?

A) Members of the segment typically vote democrat.

B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix.

C) All members of the segment are active on popular social media.

D) The segment represents approximately 200 million people.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

78) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "measurable" criterion?

A) Members of the segment typically vote democrat.

B) All members of the segment use cell phones.

C) All members of the segment are active on popular social media.

D) The segment represents approximately 200 million people.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

79) There are five criteria for effective marketing segmentation: 1) identifiable, 2) measurable, 3) substantial, 4) accessible, and 5) responsive. Which of the following segmentation variables best meets the "accessible" criterion?

A) Members of the segment typically vote democrat.

B) The segment represents $100 million in potential revenue and requires a roughly $10 million investment into the marketing mix.

C) All members of the segment are active on popular social media and the Company primarily advertises on social media.

D) The segment represents approximately 200 million people.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

80) Marketing segments should be internally ________ and externally ________.

A) diverse; fragmented

B) accessible; consistent

C) fragmented; different

D) consistent; different

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Steps in the Segmentation Process

Standard 1: AACSB || Communication

Standard 2: Bloom's || Application

81) Judith has invented a cell phone battery that lasts for two weeks without needing to be recharged. Some of her friends think she should just announce it to the world, and marketing isn't necessary. Other friends are recommending Judith look at segmenting the market which would help her to

A) keep within a reasonable marketing budget.

B) develop protection from competitive pressures.

C) ensure she will be able to patent the battery without letting the entire market know.

D) focus on those potential customers with the greatest need.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

82) Matt had a passion for antique tools and decided to turn that passion into a brick and mortar store. He defined the broad market then narrowed it, but then he was stuck. He discussed his problem with his aunt what had years of experience in marketing positions in a large retailing firm. How could his aunt help him to take the next steps as he did know what to do next?

A) To be successful, an entrepreneur should get advice from someone of the opposite gender.

B) To make tough decisions about which kind of segmentation to use is often a judgment by someone with extensive experience.

C) To be able to determine the next steps, it's best for a small business to discuss segmentation only with people one can trust.

D) To help start-up firms, larger companies will develop mentorship programs to help the entrepreneur.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

83) Alicia had taken a marketing position in a small company which had never had a marketing function or individual before. She explained segmentation to the owner of the firm, and the owner asked Alicia to come up with as many segment variables as possible using behavioral segmentation. Alicia argued for fewer segment variable as it makes the process less complicated and is generally preferred as long as the fewer variables allow for accurate and meaningful categorization and

A) no other segmentation approaches are used.

B) competitors and industry standards use fewer variables.

C) there are clear distinctions among different customer groups.

D) adequate research can support the choices.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

84) Justin has a bookstore, both online and a physical store. He had not been using any sort of segmentation, but you have worked with him to identify the market for his book selections, and after brainstorming the two of you have decided on a behavioral approach to maximize his marketing efforts. What is your next move?

A) Narrow the market further

B) Decide which behavioral variables are significant for customer distinctions

C) Examine his merchandise to see if there are sufficient books and merchandise to meet the demands of the segments

D) Rank order the segmentation approaches within the behavioral approach.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

85) Alejandro has created a line of small and intense chocolates. He has found a way to give the user the satisfaction of a regular chocolate candy but with its small size, there are far fewer calories. He feels there are many potential customers. Would micromarketing would work well for his business? Why or why not?

A) Yes. Micromarketing is ideal for miniaturized products.

B) No. Micromarketing is for highly customized products with small segments.

C) Yes. Until the business can grow, micromarketing works until large scale is required.

D) No. Micromarketing is no longer practiced for consumer goods.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

86) Carly and Diane had worked out a thoughtful behavioral segmentation approach for their consulting business, and when they were looking at the specific individuals in the segments, they found a significant group of customers that appeared in more than one segment. They should

A) concentrate on these potential customers as their needs are highly relevant in several areas.

B) revise the segment variables to eliminate the overlap.

C) ignore the overlap unless it represents more than 20% of a segment.

D) go back to the data to ensure the segments were done accurately.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

87) Stuart is the owner of a small furniture refinishing and rebuilding firm. He has been skeptical but agreed to hear your proposal for behavioral segmentation. When you described a segment, he asked, "How am I supposed to know who these people are?" Intuitively he has addressed which of the criteria for marketing segmentation?

A) Responsive

B) Accessible

C) Measurable

D) Differentiable

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

88) You and a friend are studying for a Marketing midterm, and she says, "I don't get why measurable is a separate criterion for marketing segments. I don't see any difference between "measurable" and "substantial." How should you explain the difference so she that can respond if this is a question asked in the exam?

A) They are related concepts, but since each of the five criteria correspond to the 5 Ps, the criteria are phrased differently.

B) Measurable is concerned with size of segments, and substantial deals with issues such as how many customers are in a segment.

C) Measurable is more objective, counting things for example, and substantial is variable, such as size of the company which would be different for small and large firms.

D) Measurable is active, derived from the verb measure, but substantial is a more passive description.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

89) Why is it important to define the broad market during the segmentation process?

A) To determine how many segmentation variables are needed

B) To determine the markets in which you will and will not participate

C) To determine the uniqueness of your market segment

D) To set parameters for segmentation

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

90) Whole Foods sells organic foods to affluent, health-conscious customers in what is often considered a "luxurious" environment. This is an example of

A) micromarketing.

B) differentiated marketing.

C) multi-segmented marketing.

D) niche marketing.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

91) Which of the following statements accurately describes the segmentation process?

A) Companies generally try to use the smallest segments possible to limit their financial exposure.

B) The more segmentation variables, the more specific the group and the easier the segmentation becomes.

C) Companies rely on market research to determine appropriate variables to use.

D) Segments should be externally homogeneous, but internally heterogeneous.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

92) Which of the following statements accurately describes one of the five criteria of effective market segmentation?

A) A segment requires a large number of customers to be considered substantial.

B) Responsiveness is a function of reaching out to customers or bringing them to your business.

C) Knowing the number of customers in each segment is critical to determining marketing potential.

D) Effective marketing strategies often blur boundaries between market segments.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

93) Tom was working on developing segments for a new product his firm was launching. He commissioned research to discover what customers really wanted so he could match what his firm could provide. In what stage of the segmentation process was he?

A) Marketing research and analysis

B) Product differentiation

C) Defining the broad market

D) Market planning

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: The Segmentation Process

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

94) Mike's firm is a manufacturer of sealing tapes. The firm recognizes that there are several large groups of businesses that could use these products, and the firm has a reasonable but not unlimited budget for segmentation. What marketing segmentation strategy would most likely be appropriate?

A) Multi-segment marketing

B) Cost-effective marketing

C) High-impact marketing

D) Niche marketing

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: The Segmentation Process

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

95) Kim has been developing a segmentation approach for her catering service. She has identified a group of potential customers who seem to be good candidates, except they are far away from where her kitchens and prep areas are. She is not sure she can effectively service these customers. What segmentation criterion is this potential segment failing?

A) Identifiable

B) Substantial

C) Accessible

D) Responsive

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

96) Logan is a personal trainer specializing in work with professional athletes. Since athletes' needs vary and their travel schedules are hectic, Logan customizes his marketing mix for each athlete with whom he hopes to work. This is an example of

A) micromarketing.

B) undifferentiated marketing.

C) multi-segmented marketing.

D) niche marketing.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

97) Blue Buffalo is a pet-food company that uses only natural ingredients in its products. It targets pet owners who want only high-quality foods for their pets, which is a significantly large and distinct group. This is an example of

A) micromarketing.

B) undifferentiated marketing.

C) multisegmented marketing.

D) niche marketing.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

98) Akemi is a product manager tasked with launching a new line of canned, spiked iced tea. After studying the market research, she decided that customers in her market will differ based on their behavior with product benefits–the most important variable. Which step in the segmentation process has Akemi most recently completed?

A) Select variables for segmentation.

B) Select variables within each category.

C) Narrow the market.

D) Identify categories within each variable.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

99) Which of the following scenarios represents a market segment that likely does NOT meet the "substantial" criterion?

A) Members of the segment have agreeable personalities and the Company makes shoes.

B) Members of the segment generally don't use cell phones and the Company makes a cell phone app.

C) Members of the segment are below the poverty line and the Company makes jewelry.

D) Members of the segment buy grain and the Company sells grain.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

100) Which of the following scenarios represents a market segment that likely does NOT meet the "responsive" criterion?

A) Members of the segment have agreeable personalities and the Company makes shoes.

B) Members of the segment generally don't use cell phones and the Company makes a cell phone app.

C) Members of the segment are below the poverty line and the Company makes jewelry.

D) Members of the segment buy grain and the Company sells grain.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Criteria for Effective Marketing Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

101) Stephanie has been segmenting the market to help her grow her catering business. She is now at final stage in the segmentation process, and she will develop profiles for the customer groups. Why is this important?

A) Profiles will indicate why the group is unique, so a marketing mix can address that group specifically.

B) Profiles are the key to developing a customer relationship management system that will help in future data collection and monitoring.

C) Profiles help marketers develop communications and promotion plans to reach that specific customer group.

D) Profiles will help limit the number of groups being considered as each profile will tell a clear story.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Synthesis

102) With a degree in pastry arts, you now are opening a cupcake bakery in your hometown. While performing marketing research, you discover that there is a strong market for craft cocktails in the area. To be successful, what is the best next step?

A) Move forward with market segmentation research to find the best target market for your cupcake bakery. Keep the idea of adding craft cocktails to your business for the future.

B) Abandon the cupcake bakery idea and perform market segmentation research to find the best target market for a craft cocktail business.

C) Seek a partner who has expertise in bartending. Then perform market segmentation research to find the best target market for your combined businesses.

D) Ignore the craft cocktail information since it does not pertain to your business model.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

103) You are a new marketing manager at a consumer products company. During a meeting on your first day, you learn that the company is contemplating the creation of a line of personal products for people with red hair. When someone asks if you think this an effective segmentation approach, what is your best response?

A) Yes, redheadedness meets three of the five criteria for effective segmentation.

B) No, while redheadedness is identifiable, measurable, and responsive, it is neither substantial nor accessible.

C) No, while redheadedness is identifiable, measurable, and substantial, it is neither accessible nor responsive.

D) Yes, redheadedness is identifiable, measurable, and substantial. While accessing redheads is only slightly different from reaching other customers, redheads likely will prove responsive to consumer products–shampoos, makeup, etc.–targeted to their specific needs.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

104) You are the marketing manager for a company that creates content for online coursework. An employee approaches you with an idea for a course targeted to parents who home school their children. Subsequent research shows that this market is small, but passionate, and that there are no competitive products on the market. There are, however, plenty of products targeted to the homeschooled children. What is the best way to proceed with this suggestion?

A) Since homeschoolers meet all five criteria for effective market segmentation, you should proceed using a niche marketing approach.

B) Since homeschoolers meet all five criteria for effective market segmentation, but the market size is so small, you should consider a micromarketing approach.

C) Since homeschoolers are identifiable, measurable, and responsive, they meet only three of the five criteria. The idea should be abandoned.

D) Since homeschoolers are identifiable, measurable, accessible, and responsive, they only meet four of the five criteria. But, because there are no competitors in the market, you can ignore their small size and proceed with a differentiated strategy.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

105) A target market is

A) the group of customers a company decides to focus its marketing efforts on.

B) the group of companies a given company must take customers away from.

C) a group of customers loyal to another company.

D) a group of customers a company doesn't want to market to because those customers are the least profitable.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

106) Positioning is

A) the act of categorizing different groups of customers in a market, based on customer differences.

B) used externally to give customers a sense of the company's brand.

C) the act of creating a specific perception in the customer's mind relative to other options.

D) the act of strategically locating products with a given geographic area.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

107) How many steps are typically involved in developing a target market?

A) 5

B) 4

C) 2

D) 3

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Target Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

108) What is the first step in developing a target market?

A) Selecting a variable within the base.

B) Narrowing the market.

C) Rank the segments in order of attractiveness.

D) Decide which segments to target.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Target Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

109) What is the third step in developing a target market?

A) Selecting a variable within the base.

B) Narrowing the market.

C) Rank the segments in order of attractiveness.

D) Decide which segments to target.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Target Marketing

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

110) Which of the following terms refers to the efforts to discourage customers to decrease product or service demand?

A) Demarketing

B) Positioning

C) Repositioning

D) Micromarketing

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

111) To what component of a positioning statement does the unique selling proposition refer?

A) Company brand

B) Target customer

C) Key benefit

D) Competitive reference

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Communication

Standard 2: Bloom's || Comprehension

112) The key benefit is also known as the

A) differentiation point.

B) customer preference.

C) unique selling proposition.

D) product strength.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Communication

Standard 2: Bloom's || Knowledge

113) What is the general rule for how many segments to focus on at a time?

A) Companies should focus on all segments for which the required return on investment can be made.

B) Companies should focus on the most attractive segment.

C) Companies should focus on the three most attractive segments.

D) Companies should eliminate half of the segments by focusing on the most attractive 50%.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

114) When a company is deciding on a target market, their first step is to rank the segments in order of ________ based on attributes such as ________ and ________.

A) attractiveness; size; growth

B) size; growth; attractiveness.

C) competition; size; ethics

D) growth; size; competition

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

115) Carrie's Convenience offers the Cincinnati community premium groceries at discount prices with more convenience and friendlier service than large chain grocery stores. This is an example of

A) a targeting statement.

B) a value proposition.

C) a positioning statement.

D) a target market proposition.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

116) How many positioning statements does a company typically have?

A) None, since a "positioning statement" isn't a real thing.

B) Companies only have one positioning statement since its essentially a mission statement.

C) Companies typically have a positioning statement for each target market.

D) Companies usually have a positioning statement for their 3 primary sustainable markets.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

117) Alison had developed a dozen segments for her firm's new product, but she felt she needed to check the company's code of ethics before targeting one of the segments. Alison's action was

A) inconsistent with good marketing practice in identifying segments with strong potential.

B) consistent with good marketing practice that suggests all actions must be reviewed to ensure they are consistent with the firm's code of ethics.

C) inappropriate as she was reflecting her own biases.

D) appropriate as some firms may want to exclude some segments on moral or ethical grounds.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

118) Jim needed to reduce the number of segments he had identified as his firm had limited resources and wanted to concentrate its efforts. In addition to looking at how attractive a segment appeared to be, he also needed to consider whether the segment was

A) consistent with the firm's goals and objectives.

B) supported by quantitative research.

C) consistent with the firm's communications plan to reach them.

D) being dominated by a competitor.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

119) Kim had launched her new enterprise–a health maintenance service for pets. Working with a marketing consultant, she identified five segments of pet owners who would be thrilled to subscribe to her new service. Her marketing consultant cautioned against tackling all five at once, suggesting that focusing on one would allow her to develop her expertise and

A) capture the next four as soon as possible.

B) concentrate her marketing resources.

C) become a strong niche player.

D) avoid attracting competitors.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

120) Some segments are so attractive that many competitors are also pursuing those customers. A firm is considering whether to include this segment in its targets and should

A) invest resources heavily before trying to capture this segment.

B) select the segment as it's an obvious target.

C) revise its segmentation approach to come up with similar segments.

D) ignore this segment to avoid competitive pressures.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

121) After selecting the target segments, a firm needs to create a positioning statement. Which of the following is NOT one of the four components of a positioning statement?

A) The customers being sought

B) The benefit customers of interest to customers

C) The value the customer will receive

D) The comparable competitor's products

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

122) The Chief Marketing Officer of a consumer electronics firm wanted to bring out a line of less expensive, simpler appliances to reach new markets. Which of the following would you recommend as her best alternative?

A) Repositioning her current lines

B) Launching a new brand

C) Abandoning the idea

D) Testing the products overseas to determine the best approach

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

123) Which of the following statements most accurately describes targeting?

A) Effective marketing strategies often place individual customers in two or more market segments at one time.

B) Focusing on two or more market segments at once allows companies to use resources efficiently and effectively.

C) Target marketing is best used to determine viable and attractive customer bases.

D) The attractiveness of specific market segments depends upon potential competitive pressures.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

124) Some consumer electronic stores charge high restocking fees to discourage a targeted customer group from repeatedly purchasing, trying, and returning merchandise. What term refers to this marketing effort?

A) Niche marketing

B) Positioning

C) Repositioning

D) Demarketing

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

125) Chuck Financial Services helps retirement-ready individuals take control of their finances without the exorbitant fees associated with traditional brokerage firms. This is an example of

A) a positioning statement.

B) a repositioning statement.

C) demarketing.

D) a perceptual map.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

126) Which of the following is an example of repositioning?

A) Nordstrom created Nordstrom Rack to appeal to discount-savvy shoppers.

B) Hallmark is seeking younger audiences with its movie streaming services.

C) Cellular phone companies created simple phones with large buttons for the senior market.

D) Netflix increased its monthly fees to remain in line with other streaming services.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

127) Which of the following statements most accurately describes positioning?

A) A positioning statement must include three of the four WXYZ components.

B) Marketing information is provided via market research and customer perceptions.

C) Effective marketers position the company in the same way while targeting different segments in different markets.

D) One positioning statement is created for the company and should guide marketing efforts throughout.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

128) Roberto has been working on segmenting the market for his firm's new ergonomic bicycle. He has narrowed the number of segments by eliminating those that failed to satisfy the five segmentation criteria. He has several segments left, and to get to the target market segments, he needs to identify the attractiveness of the segment and

A) the potential competitors in the market.

B) the firm's goals and resources.

C) the profitability of the segmentation efforts.

D) the strength of the marketing mix.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

129) Sometimes a company will choose a less attractive target market instead of a more attractive one, even if all segmentation criteria are successfully met. Why?

A) The company has created a reputation for being an underdog.

B) The company has too many target markets to develop effectively.

C) The company has determined one target market is B2B and the others are B2C.

D) The level of competitive pressure is already intense.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

130) You were recently hired as a brand manager for a new body wash and are tasked with evaluating market segments and choosing a target market. Your supervisor tells you to use the 80/20 rule, which means

A) 80% of sales of your body wash come from 20% of the mass soap market.

B) 80% of sales of your body wash come from 20% of your target market.

C) 20% of sales of your body wash should come from 80% of your target market.

D) 20% of your marketing efforts should focus on 80% of your target market.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

131) A beautiful island has become such a popular travel destination that it has become overcrowded. The local travel bureau decides to position the island as a luxury destination by offering only high-priced hotels and restaurants. This makes the island less attractive to middle-income tourists. This is an example of

A) demarketing.

B) perceptualizing.

C) repositioning.

D) micromarketing.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

132) Which of the following statements uses the most unique selling proposition?

A) Our coffee has a rich, smooth taste.

B) Wake up to a wonderful aroma.

C) We make the world's strongest coffee.

D) Try something new in your cup.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

133) Which response describes the problem with the following positioning statement? "Road Dog gas stations are committed to offering competitive prices and a unique customer experience at our locations."

A) The statement lacks the competitive component.

B) The statement lacks the key benefit.

C) The statement lacks the competitive component and the key benefit.

D) The statement lacks the competitive component and the target customer.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

134) What is the best synthesis of a market segmentation and a target market?

A) They represent a subset of a mass market in which the company might operate.

B) They represent a particular group of customers on which a company should focus marketing efforts.

C) They represent classification systems for various types of customers.

D) They represent categories of best and worst customer groups.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Synthesis

135) You and some college friends are finally opening the cupcake bakery you've always dreamed about. After a great deal of research, you have chosen a target market and are now busy crafting your marketing strategy. To be successful, what should be your next step?

A) You should now differentiate your product offerings from those of your competitors in ways that are meaningful to your target market.

B) You should use technological tools like PRIZM or Tapestry to segment your target market to find a grouping of customers that is meaningful to your business.

C) You should move forward with creating your marketing mix for the target market you have selected.

D) You should begin to study what your target market really wants and why it wants it.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Reflective Thinking

Standard 2: Bloom's || Evaluation

136) Rebecca has evaluated the potential segments for her travel advisory service, and she has about 10 to 12 possible segments. What general advice would you offer as she considers the next steps?

A) Focus on a single segment, get it right, and move on from there.

B) Determine five or six segments that have the highest potential return on marketing investment and use successes from that effort to fund pursuing the rest.

C) Implement a pilot test or conduct market research on samples within each segment to get a better idea of each segment's potential.

D) Pursue all of the segments knowing that some will not be as successful as others and eliminate those in future efforts.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Targeting

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

137) JX Manufacturing has created a positioning statement: "JX will cheerfully offer the fastest, highest-quality parts of any company in the tri-state area." What essential part is missing?

A) What are the three states?

B) Who are the target customers?

C) What specific parts are being offered?

D) What level of profitability is required?

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

138) As the marketing team was finishing the STP process, one of the senior members reminded the team that they had not created a perceptual map. Another senior member bluntly added the project was already way over budget. The team needed to decide whether or not to proceed with a map. Which of the following represents the kind of information that would NOT be revealed in the mapping process?

A) Whether the product has the competitive features it needs to succeed.

B) How the company can find the ideal location to ensure project success.

C) If there is some space that competitors have not already occupied, and the company could move into that area.

D) How strong the brand is compared to close competitors.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Analysis

139) Cover Co. is a new company with two employees: the husband and wife that founded the company. Cover makes trash can covers that help keep outdoor trash cans secure. You've been hired as a marketing consultant for the new company. Using your choice of two out of the four segmentation categories, pick a variable from each category that could be used to segment Cover Co.'s market, and explain why it could be used.

Learning Objective: 6.1 Define market segmentation and describe the four common categories of variables for segmenting a market.

Section Reference: Market Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

140) Selecting a segmentation approach is a tough decision, but that's not the last of the tough decisions. Assume you've chosen a geographic segmentation approach for pickup trucks. What are some of the variables you might select?

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Evaluation

141) If a market segment meets only four of the five criteria, would it be a good idea to go ahead? Why? Make sure your response demonstrates your understanding of the five criteria.

Learning Objective: 6.2 List and describe the six steps in the market segmentation process and describe the key criteria for effectively segmenting a market.

Section Reference: Applied Segmentation

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Synthesis

142) If you were the Chief Marketing Officer of Apple, what might your positioning statement be or contain?

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

143) Provide two real examples of a company repositioning a brand.

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Positioning

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Application

144) What is your dream laptop computer? Assume that there are others with similar needs and means. Suggest a positioning statement the company might use to appeal to you and others like you in your target segment?

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Synthesis

145) If a marketer has examined the competitive landscape and has accurate and comprehensive data, why is a perceptual map useful?

Learning Objective: 6.3 Define targeting and positioning and describe the purpose and process of each for developing marketing strategy.

Section Reference: Using Segmentation as a Foundation for Marketing Strategy

Standard 1: AACSB || Analytic

Standard 2: Bloom's || Synthesis

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