general business data bank

Chapter 8: Identifying Market Segments and Targets

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. Instead of scattering their marketing effort (a “shotgun”
approach), many companies are now
embracing target marketing where the focus is on those consumers that they have
thegreatest chance of satisfying (a ________
approach) with their products and services.
a. “rifle”
b. “focused”
c. “niche”
d. “macro”
e. “micro”

2. In ________
marketing, the seller engages in the mass production, mass distribution, and
mass promotion of one product for
all buyers.
a. group
b. mass
c. general
d. segmented
e. differentiated

3.
The argument for ________
marketing is that it creates the largest potential market, which leads to the
lowest costs, which in turn can lead to lower prices or higher margins.
a. niche
b. micro
c. macro
d. differentiated
e. mass

4. A ________
consists of a group of customers who share a similar set of needs and wants.
a. market target
b. market group
c. market slice
d. market segment
e. market level
5.
A ________ consists of two parts: a naked solution and discretionary options.
a.
differentiated market
offering
b.
flexible market offering
c.
rigid market offering
d.
vertical market offering
e.
horizontal market
offering

6. If a
marketing manager observes that his or her market shows no natural segments and
consumers seem to have roughly the same preferences, the marketing manager will
most likely be faced with a ________
preferences pattern.
a. homogeneous

b. heterogeneous
c. diffused
d. clustered
e.
scattered

7. Procter
& Gamble has many soap brands. One reason for this is that soap users tend
to group together in terms of preferences such as bleaching action, softness,
stain-removal, et cetera. Which of
the following preferences pattern would most
likely apply to P&G’s method of response to market needs?
a. Homogeneous
preferences.
b. Diffused preferences.
c. Clustered preferences.
d. Psychological preferences.
e. Cultural preferences.

8. Marketers usually identify niches by ________.
a. dividing a segment into subsegments
b. conducting VALS tests
c.
allowing consumers to gravitate toward product
brands
d.
examining the demographics
section of The Handbook of Marketing
e.
producing products that can be used in a variety of
ways
9. A niche
is characterized as being all of the following EXCEPT ________.
a. the customers in the niche have a
distinct set of needs
b. the customers will pay a premium
to the firm that satisfies their needs
c. the niche is not likely to attract
other competitors
d. the customers generally have
smaller amounts of income
e. the nicher gains certain economies
through specialization

10. Which of
the following has greatly facilitated niche marketing?
a. The Internet
b. Globalization
c. Industrialization
d. Recession
e. Excessive demand

11. When Nike attempts to get
close to its customers at the local level by sponsoring local school teams and
providing shoes, equipment, and clothing to many of them, Nike is using which
of the following marketing formats?
a. Differentiated marketing
b. Consumer marketing
c. Instructional marketing
d. Partner marketing
e. Grassroots marketing

12. According
to thoughts expressed by Pine and Gilmore
about a new economic era that is rapidly approaching, if you charge for the
time customers spend with you, then and only then are you in the ________
business.
a. niche
b. grassroots
c. experience
d. service
e. goods

13. Through
customer experience management (CEM), brands can create five different types of
experiences: sense, feel, think, relate, and ________.
a. remembering
b. forgetting
c. simulation
d. act
e. bargain
14. ________
combines operationally driven mass customization with customized marketing in a
way that empowers consumers to
design the product service offering of their choice.
a. Consumptionization
b. Viral marketing
c. Virtual marketing
d. Regionalization
e. Customerization

15. Two broad groups of variables are used to segment consumer
markets. One method uses descriptive characteristics such as geography. The
other method is to form segments by looking at ________ considerations.
a. gender
b. income
c. cultural
d. interest
e. behavioral

16. If a
marketer decides that segmenting a market based on neighborhoods, the marketer
will have chosen the ________ method of segmentation.
a. demographic
b. psychographic
c. geographic
d. cultural
e. social class

17. According
to established methods of segmenting markets, all of the following would an
appropriate segment category if the family life cycle was the segmentation base
ACCEPT ________.
a. young, single
b. male, female
c. young, married
d. older, married, no children under
18
e. young, married, youngest child 6
or over

18. A
marketing manager is considering several options to market to market segments
identified as being either culture-oriented, sports-oriented, or
outdoor-oriented. This manager has selected the ________ format for segmenting
markets.
a. personality
b. behavioral occasions
c. user status
d. psychographic lifestyle
e. readiness stage

19. PRIZM
(Potential Rating Index by Zip Markets) identifies clusters of consumers based
on a variety of characteristics such as education and affluence. Which of the
following clusters would match to a consumer group that is characterized as
being in their late forties and fifties, college-educated, upper-middle-class
homeowners that married late and are still raising children in comfortable
suburban subdivisions and are still pursuing kid-centered lifestyles.
a. The cosmopolitans
b. Beltway boomers
c. Young digerati
d. Winner’s circle
e. Blue bloods

20. Jose and
Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be
used by marketers to reach Jose or Erika?
a. Life stage
b. Benefits
c. Age segment
d. User segment
e. Occasion segment

21. Men and
women tend to have different attitudinal and behavioral orientations, based
partly on genetic makeup and partly on ________.
a. income
b. occupation
c. socialization
d. heredity
e. globalization

22. Which of
the following American Generations is characterized as being great acquisitors
and are value- and cause-driven despite indulgences and hedonism?
a. GI
generation
b. Silent
generation
c. Baby
boomers
d. Generation
X
e. Millennials

23. ________ is the science of using psychology
and demographics to better
understand consumers.
a. Psychographics
b. Segmentation
c. Clustering
d. Demographics
e. Social psychology
a
24.
To reach Generation Y, rock band Foo Fighters created a digital street
team that sends targeted e-mail messages to members who “get the latest news,
exclusive audio/video sneak previews, tons of chances to win great Foo Fighters
prizes, and become part of the Foo Fighters Family. Which of the following
techniques for reaching Generation Y are the Foo Fighters using?
a.
Student ambassadors
b.
Unconventional sports
c.
Cool events
d.
Computer
games
e.
Online buzz

25. In 2003,
4.1 million Americans turned 21. An interesting fact is that the share of
college students who plan to move
back home after graduation is ________.
a. 10 percent
b. 25 percent
c. 50 percent
d. 60 percent
e. 75 percent

26. According
to the VALS 8-part typology segmentation system, ________ are successful,
sophisticated, active, “take-charge” people with high self-esteem. Their
purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.
a. innovators
b. thinkers
c. achievers
d. experiencers
e. believers

27. According
to the VALS 8-part typology segmentation system, ________ are considered to be
elderly, passive people who are
concerned about change. They are loyal to their favorite brands.
a. believers
b. strivers
c. makers
d. survivors
e. experiencers

28. A
housewife requests a new treadmill for her birthday. With respect to consumer
decision roles, which role is the housewife currently playing?
a. Initiator
b. Influencer
c. Decider
d. Buyer
e. Gatekeeper

29. With
respect to occasion segmentation, Christmas, Valentine’s Day, and ________
account for just over half of gifters’ budgets.
a. Halloween
b. Father’s Day
c. Mother’s Day
d. Thanksgiving
e. Independence Day

30. Mobil identified five different
benefit segments for which products and services could be designed. ________
(27 percent of the market) shops
Mobil outlets for fast fuel, fast service, and fast food.
a. Road warriors
b. Generation F
c. True blues
d. Home bodies
e. Price shoppers

31. With respect to user status (a
segmentation possibility), ________ tend to focus on attracting potential users
because they have the most to gain.
a. smaller firms
b. niche firms
c. followers
d. aggressive specialists
e. market-share leaders

32. If a
market is segmented according to light, medium, and heavy product users, the
marketer segmenting this market is using the ________ as the means to segment.
a. user status
b. usage rate
c. buyer-readiness stage
d. occasion
e. benefit

33. If a
buyer is loyal to two or three different brands of soap, this buyer’s loyalty
status can be described as being among
the ________.
a. switchers
b. shifting loyals
c. split loyals
d. hard-core loyals
e. anti-loyals

34. A company
can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive
with its own.
a. hard-core loyals
b. split loyals
c. shifting loyals
d. switchers
e. anti-loyals
All of
the following have been designated as groups
that might be found using attitude as the primary segmentation variable EXCEPT ________.

f. synergistic
g. enthusiastic
h. positive
i. indifferent
j. hostile

35. A snack
chip manufacturer is concerned about consumers leaving its brand and going to
competitive alternatives. Which of
the following groups (based on
strength of commitment) would be most
likely to leave the company’s
offering and go somewhere else for snack products?
a. Convertible
b. Shallow
c. Average
d. Entrenched
e. Hard rocks

36. If a
consumer group is designated based on their “balance of disposition,” the ________
group can be described as one that is made up of nonusers who are as attracted
to a competing brand as they are to
their current brands.
a. strongly unavailable
b. weakly unavailable
c. ambivalent
d. available
e. desirable

37. If a
marketer is seeking to segment a business market, which of the following variables
is generally felt to be important
enough by marketers to place it first among
the list of other variables that can be used in segmentation process?
a. Personal characteristics
b. Demographic
c. Situational factors
d. Operating variables
e. Purchasing approaches

38. A
marketer is interested in segmenting a business market based on technology and
customer capabilities. Which of the following major segmentation variables
would most likely be used by the
marketer to assist with the task?
a. Demographic
b. Purchasing approaches
c. Situational factors
d. Personal characteristics
e. Operating variables

39. A
marketer is interested in segmenting a business market on ________ if the
marketer intends to eventually segment the market based on loyalty and
attitudes toward risk.
a. situational factors
b. purchasing approaches
c. personal characteristics
d. operating variables
e. demographics

40. A company
can be said to have used ________ if the company
distinguished customers buying on the basis of price, service, and quality.
a. macrosegmentation
b. microsegmentation
c. strategic segmentation
d. global segmentation
e. short-term segmentation

41. Business buyers seek different
bundles based on their stage in the purchase decision process. ________ are
customers who are starting their purchasing relationship and they want
easy-to-read manuals, hot lines, high levels of training, and knowledgeable
sales reps.
a. First-time prospects
b. Sophisticates
c. Global partners
d. Trend-setters
e. Novices

42. If your
marketing department established a priority in reaching solution-oriented
customers (e.g., those that want value through more
benefits and advice), ________ would be the best means for connecting with
these customers.
a. transaction selling
b. consultative selling
c. enterprise selling
d. dual selling
e. psychological selling

43. During
which step of the segmentation process would the marketer group customers into
segments based on similar needs and benefits sought by the customer in solving
a particular consumption
problem?
a. Step 2—segment identification
b. Step 3—segment attractiveness
c. Step 6—segment “acid test”
d. Step 1—needs-based segmentation
e. Step 7—marketing-mix strategy
44. If an
organization’s marketing department wished to create “segment storyboards” to
test the attractiveness of each segment’s positioning strategy, this action
would most likely occur in the ________
step of the segmentation process.
a. needs-based segmentation
b. segment identification
c. segment profitability
d. segment “acid test”
e. marketing-mix strategy

45. To be
useful, market segments must rate favorably on five key criteria. In the ________
criterion, effective programs can be formulated for attracting and serving the
segments.
a. measurable
b. substantial
c. accessible
d. differentiable
e. actionable

46. In
evaluating different market segments, the firm must look at two factors: the
segment’s overall attractiveness and ________.
a. company’s
objectives and resources
b. the product to be sold
c. the purchasing process
d. competition’s
strategies
e. the global nature of the product

47. Volkswagen
concentrates on the small-car market and Porsche on the sports car market. These
would be examples of what is called ________.

a. single-segment concentration
b. selective specialization
c. product specialization
d. market specialization
e. full market coverage

48. All of
the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment’s needs, a strong market presence,
operating economies through specializing in production, distribution, and promotion.
a. single-segment concentration
b. selective specialization
c. product specialization
d. market specialization
e. full market coverage

49. When a
symphony orchestra targets people
who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting what
are called ________.
a. market mavens
b. strategic segments
c. supersegments
d. occasion segments
e. psychodemographic
segments

50. Which of
the following best represents the chief advantage of pursuing a multisegment
strategy?
a. It makes the company almost
bullet proof to competitors’
actions.
b. It diversifies the firm’s risk.
c. It creates synergy between
markets.
d. It is a low cost strategy.
e. It treats all buyers the same and,
therefore, lowers promotion costs.