Marketing Management: Marketing Management chapter 8 practice test Flashcards


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Identifying Market Segments and Targets
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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.

Page: 213

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

Page: 213

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

Page: 213

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

Page: 214

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

Page: 214

D

6

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) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Page: 214

E

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

Page: 214

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

Page: 214

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

Page: 215

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

Page: 215

C

11

If a marketing researcher uses such names (categories) as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.
A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS

Page: 215

A

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

Page: 216

C

13

According to PRIZM, the ________ cluster 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 pursuing kid-centered lifestyles.
A) cosmopolitans
B) beltway boomers
C) young digerati
D) winner's circle
E) old milltowns

Page: 216

B

14

According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urbane couples in America's fast-growing cities. Concentrated in a handful of metros such as Las
Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates.
A) beltway boomers
B) old milltowns
C) cosmopolitans
D) young digerati
E) winner's circle

Page: 216

C

15

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars-from juice to coffee to microbrew.
A) beltway boomers
B) old milltowns
C) young digerati
D) cosmopolitans
E) winner's circle

Page: 216

C

16

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.
A) old milltowns
B) young digerati
C) winner's circle
D) beltway boomers
E) cosmopolitans

Page: 216

A

17

Those who favor localized marketing see national advertising as wasteful because ________.
A) it gets too up close and personal with consumers
B) it drives up manufacturing and marketing costs by reducing economies of scale
C) it magnifies logistical problems
D) it fails to address local needs
E) it sends conflicting marketing messages

Page: 216

D

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

Page: 217

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

Page: 217

A

20

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium old luxury brands and are also based on emotions.
A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods

Page: 218

E

21

________ are products such as the Mercedes Benz C-class and the American Express Blue card, that
extend historically high-priced brands down-market while retaining their cachet.
A) Hourglass products
B) Mass market products
C) Old Luxury brand extensions
D) Masstige goods
E) Accessible superpremium products

Page: 218

C

22

Which of the following statements about Gen Yers is true?
A) They are selective, confident, and impatient.
B) They are more likely to associate retirement with "the beginning of the end".
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents' standard of living a serious challenge.

Page: 219

A

23

Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.
A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz

Page: 220

E

24

If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.
A) Generation Z
B) Generation X
C) Generation Y
D) Silent generation
E) Baby boomers

Page: 220

C

25

As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The American Legacy Foundation is using ________ to reach Generation Y.
A) computer games
B) street teams
C) unconventional sports
D) online buzz
E) videos

Page: 221

B

26

Which of the following statements about Gen Xers is true?
A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.

Page: 221

D

27

Which of the following statements accurately describes what demographers are calling the "boom-boom effect"?
A) consumers are demanding more "bang for their buck"
B) Baby boomers still rule the marketplace
C) Generation Y and their concern about environmental issues will dominate the market in the future
D) products that appeal to 21-year-olds also appeal to baby boomers
E) companies must gain success quickly

Page: 221

D

28

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

Page: 225

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

Page: 226

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

Page: 226

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

Page: 226

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

Page: 226

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

Page: 226

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

Page: 227

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

Page: 227

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

Page: 227

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

Page: 227

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

Page: 227

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 228

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

Page: 230

B

49

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.
A) macrosegmentation
B) microsegmentation
C) geographic segmentation
D) global segmentation
E) short-term segmentation

Page: 230

A

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

Page: 230

A

51

A marketer is interested in segmenting a business market based on urgency of delivery and the size of the order. Which of the following major segmentation variables would the marketer most likely use to assist with the task?
A) purchasing approaches
B) situational factors
C) operating variables
D) personal characteristics
E) demographic variables

Page: 230

B

52

A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would the marketer most likely use to assist with the task?
A) demographic variables
B) purchasing approaches
C) situational factors
D) personal characteristics
E) operating variables

Page: 230

E

53

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) demographic variables

Page: 230

C

54

A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Page: 230

B

55

A company can be said to have used ________ if the company distinguished among customers buying on the basis of price, service, and quality.
A) global segmentation
B) microsegmentation
C) short-term segmentation
D) macrosegmentation
E) geographic segmentation

Page: 230- 231

B

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

Page: 231

D

57

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

Page: 231

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"

Page: 231

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

Page: 231

E

60

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

Page: 231

B

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

Page: 231

B

62

Anderson and Mervin have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which part contains the product and service elements that all segment members value?
A) naked solution
B) discretionary solution
C) maximum solution
D) pseudo solution
E) virtual solution

Page: 231

A

63

If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?
A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment "acid-test"

Page: 231

D

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

Page: 232

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

Page: 232

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

Page: 232

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.

Page: 232

B

68

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer.
A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated

Page: 233

B

69

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

Page: 233

A

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

Page: 233

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

Page: 233

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

Page: 233

E

73

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

Page: 234

A

74

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.
A) Consumptionism
B) Viral marketing
C) Virtual marketing
D) Regionalization
E) Customerization

Page: 234

E

75

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

Page: 234

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

Page: 234

A

77

When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________.
A) market mavens
B) strategic segments
C) supersegments
D) occasion segments
E) psychodemographic segments

Page: 234

C

78

Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?
A) It makes the company almost bulletproof 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.

Page: 234

B

79

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________.
A) no synergy exists
B) logistics can become a nightmare
C) the product may be supplanted by an entirely new technology
D) competitors can easily copy any new product introductions
E) e-commerce becomes difficult for the company

Page: 234

C

80

With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage

Page: 234

D

81

Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace.

Page: 213

true

82

A market segment consists of a group of consumers who share a similar set of needs and wants.

Page: 214

true

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.

Page: 214

false

84

Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

Page: 215

false

85

Local marketing reflects a growing trend called macromarketing.

Page: 214

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.

Page: 216

true

87

Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe.

Page: 216

false

88

Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

Page: 216

true

89

Life stage defines a person's age.

Page: 217

false

90

Income always predicts the best customers for a given product.

Page: 218

false

91

Members of the same generational cohort share the same major cultural, political, and economic experiences and have similar outlooks and values.

Page: 219

true

92

Baby boomers are consumers who have been "wired" almost from birth—playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones.

Page: 219

false

93

Members of Generation Y are generally open to overt branding practices and a "hard sell," making product placements in computer and video games a popular way to reach this cohort.

Page: 220

false

94

Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and individualistic.

Page: 221

false

95

Baby boomers are also less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships.

Page: 221

true

96

The norms, language nuances, buying habits, and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy, rather than added as an afterthought.

Page: 222

true

97

Psychographics is the science of using psychology and demographics to better understand consumers.

Page: 225

true

98

People in the same demographic group generally exhibit similar psychographic profiles.

Page: 226

false

99

The main dimensions of the VALS segmentation framework are consumer motivation and consumer
resources.

Page: 226

true

100

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

Page: 226

false

101

Everyone who buys a given product wants the same benefits from it.

Page: 227

false

102

Believers favor stylish products that emulate the purchases of those with greater material wealth.

Page: 227

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.

Page: 228

true

104

With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.

Page: 228

false

105

Hard-core loyals can show the firm which brands are most competitive with its own.

Page: 228

false

106

Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.

Page: 229

true

107

Purchasing approaches segmentation variables in the business marketplace include technology, user and nonuser status, and general purchasing policies.

Page: 230

false

108

Situational factor segmentation variables in the business marketplace include urgency, specific application, and size of order.

Page: 230

true

109

The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

Page: 231

true

110

To be useful, market segments must be measurable.

Page: 231

true

111

With respect to market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

Page: 231

true

112

The most attractive segment is one in which entry barriers are low and exit barriers are high.

Page: 232

false

113

A segment is attractive when there are actual or potential substitutes for the product.

Page: 232

false

114

A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

Page: 232

true

115

An undifferentiated marketing approach to full market coverage designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers.

Page: 233

true

116

An attractive niche consists of customers having a distinct set of needs.

Page: 234

true

117

The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

Page: 234

true

118

Companies following a market specialization strategy offer one product to as many markets as possible.

Page: 234

false

119

A company is customerized when it is able to respond to individual customers by customizing its products, services, and messages on a one-to-one basis.

Page: 235

true

120

All attempts to target marketing to children, minorities, or other special segments are discriminatory and unethical.

Page: 236

false