Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products, in the
collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve
good results.
Answer: D

2) Establishing and communicating the distinctive benefit(s) of the company's market offering, for each target
segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance
Answer: B

3) The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research
Answer: A

4) A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level
Answer: D

5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more
cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
Answer: D

7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to
recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
 C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets
Answer: B

8) If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the
________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
Answer: C

9) If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented

groups, he or she is segmenting on the basis of ________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage
Answer: D

10) Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his
directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that
the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the
car must be affordable enough for anybody making a good salary. In accordance with the given scenario,
Robert is trying to segment the market on the basis of ________.
A) occupation
B) family size
C) benefits
D) nationality
E) user status
Answer: C

12) Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler,
and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
Answer: C

18) Newlyweds in the United States buy more in the first six months than an established household does in five
years. Newlyweds are an example of a(n) ________ segment.
A) life stage
B) age
C) behavior
D) user status
E) income
Answer: A
19) Jose and Erika have just divorced. 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) personality type
E) social class
Answer: A

28) ________ is the science of using psychology and demographics to better understand consumers.
A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization
Answer: A

29) According to the VALS 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
Answer: A

30) According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on
career and family. They favor premium products that demonstrate success to their peers.
A) thinkers
B) innovators
C) achievers
D) believers
E) experiencers
Answer: C

31) According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by
________.
A) knowledge
B) social activity
C) products that demonstrate success to their peers
D) variety
E) risk
Answer: A

32) Kim is a young professional who enjoys snowboarding and going to rock concerts with her friends.
According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________.
A) thinker
B) achiever
C) experiencer
D) striver
 E) survivor
Answer: C

33) Mature and reflective people who seek durability, functionality, and value in products are most likely to be
categorized as ________ in the VALS system.
A) innovators
B) thinkers
C) achievers
D) experiencers
E) strivers
Answer: B

34) A hardware store is interested in reaching people who are characterized by the VALS system as being
practical, down-to-earth, and self-sufficient, who like to work with their hands, or the ________ category.
A) believers
B) strivers
C) survivors
D) experiencers
E) makers
Answer: E

35) According to the VALS segmentation system, ________ are considered to be elderly, passive people who are
concerned about change and are loyal to their favorite brands.
A) believers
B) strivers
C) makers
D) survivors
E) experiencers
Answer: D

36) According to the VALS segmentation system, ________ are considered to be trendy and fun-loving people
who are resource-constrained. They favor stylish products that emulate the purchases of those with greater
material wealth.
A) strivers
B) survivors
C) experiencers
D) makers
E) believers
Answer: A

37) According to the VALS segmentation system, ________ are conservative, conventional, and traditional
people with concrete beliefs. They prefer familiar, U.S.-made products and are loyal to established brands.
A) survivors
B) strivers
C) believers
D) makers
E) innovators
Answer: C

38) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision
roles, which role is Dennis currently playing?
A) initiator
 B) influencer
C) decider
D) buyer
E) gatekeeper
Answer: A

39) The key to attracting potential users, or even possibly nonusers, is ________.
A) understanding the reasons they are not using
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures
Answer: A

40) The sale of turkeys in the United States is highest in mid-to late November, as people buy turkeys to serve at
Thanksgiving. Grocery stores who specifically advertise turkeys at this time of year are segmenting on the
basis of ________.
A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion
Answer: E

41) Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently
came across The Convenience Store, another supermarket just a few miles away from her place and started
buying her groceries from them. Linda can be best described as ________.
A) a split loyal
B) an antiloyal
C) a shifting loyal
D) a hard-core loyal
E) a switcher
Answer: C

42) When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She
is very price conscious. On the basis of loyalty status, Amy can be described as ________.
A) a switchcer
B) a split loyal
C) a shifting loyal
D) a hard-core loyal
E) an antiloyal
Answer: A

43) Mothers-to-be are potential users who will turn into heavy users of infant products and services. By
targeting mothers-to-be as future heavy users, producers of these products and services are segmenting
consumers on the basis of ________.
A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits
Answer: D
44) 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) antiloyals
Answer: C

45) Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional
content. Pete's loyalty status is best described as ________.
A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher
Answer: D

46) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can
show the firm which brands are most competitive with its own.
A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals
Answer: B

47) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can
help identify the products' strengths.
A) switchers
B) split loyals
C) antiloyals
D) shifting loyals
E) hard-core loyals
Answer: E

48) If a marketer is seeking to segment a business market, which of the following variables is generally felt to be
the most important?
A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches
Answer: B

50) A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the
market based on industries and geographical areas to serve.
A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics
 Answer: A

56) 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
Answer: D

58) In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria
such as market growth and market access.
A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment "acid test"
Answer: C

59) In the ________ step of the market segmentation process, the marketer determines which demographics,
lifestyles, and usage behaviors make each needs-based segment distinct and identifiable.
A) segment "acid test"
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification
Answer: E

61) According to the ________ criterion for useful market segments, a segment should be the largest possible
homogenous group worth going after with a tailored marketing program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Answer: B

64) In evaluating different market segments, the firm must look at two factors: the segment's overall
attractiveness and ________.
A) the company's objectives and resources
B) the effectiveness of the suppliers
C) the flexibility of legal rules governing the business
D) the socio-economic infrastructure
E) the global nature of the product
Answer: A

65) To meet the ________ criterion of useful market segments, it must be possible to formulate effective
programs for attracting and serving the segments.
A) measurable
B) substantial
C) accessible
 D) differentiable
E) actionable
Answer: E

66) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail
the ________ criterion for useful market segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Answer: D

67) Which of the following statements is true about the five forces identified by Michael Porter, that
determine the intrinsic long-run attractiveness of a market or market segment?
A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity
supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.
Answer: B

70) In ________ marketing, the firm operates in several market segments and designs different products for each
segment.
A) individual
B) undifferentiated
C) differentiated
D) concentrated
E) niche
Answer: C

71) General Motors, a leading American multinational automaker, sells cars for every purpose, purse, and
personality. This is an example of ________ marketing.
A) undifferentiated
B) differentiated
C) concentrated
D) niche
E) micro
Answer: B

72) Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a single sized
bottle with the advertising theme "Coke is it," is an example of ________ marketing.
A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated
Answer: E

75) Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be
example s of what is called ________.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
Answer: A

76) 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
Answer: A

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
81) Effective target marketing requires that marketers use market segmentation, market targeting, and market
positioning to achieve success in the marketplace.
Answer: True False

82) A market segment consists of a group of consumers who share a similar set of needs and wants.
Answer: True False

83) Customer cloning is the practice of identifying the key characteristics of a market segment and then
identifying multiple geographic areas where the majority of the population possesses those characteristics.
Answer: True False

86) A local service company has decided to segment its market based on occupation; therefore, it has chosen a
form of demographic segmentation for its approach.
Answer: True False

88) Demographic variables are popular because they are often associated with consumer needs and wants and
they are easy to measure.
Answer: True False

89) Life stage defines a person's age.

Answer: True False

90) Income always predicts the best customers for a given product.
Answer: True False

97) Psychographics is the science of using psychology and demographics to better understand consumers.
Answer: True False

98) People in the same demographic group generally exhibit similar psychographic profiles.
Answer: True False

99) The main dimensions of the VALS segmentation framework are consumer motivation and consumer
resources.
 Answer: True False

100) In the VALS segmentation system, thinkers are characterized as being successful, sophisticated, active,
"take-charge" people with high self-esteem.
Answer: True False

101) Everyone who buys a given product wants the same benefits from it.
Answer: True False

103) Heavy users of a particular product are often a small percentage of the market but account for a high
percentage of total consumption.
Answer: True False

104) With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.
Answer: True False

105) Hard-core loyals can show the firm which brands are most competitive with its own.
Answer: True False

110) To be useful, market segments must be measurable.

Answer: True False

112) The most attractive segment is one in which entry barriers are low and exit barriers are high.
Answer: True False

113) A segment is attractive when there are actual or potential substitutes for the product.
Answer: True False

114) A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.
Answer: True False

81) TRUE

82) TRUE

83) FALSE

86) TRUE

88) TRUE

89) FALSE

90) FALSE

98) FALSE

99) TRUE

100) FALSE

101) FALSE
103) TRUE

104) FALSE

110) TRUE

112) FALSE

113) FALSE

114) TRUE