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

D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

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

B) market positioning

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

A) market targeting

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

D) market segment

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

D) geographic

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

E) grassroots marketing

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

B) customer differences

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

C) geographic

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

D) psychographic lifestyle

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

C) benefits

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

A) PRIZM

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

C) age

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

B) beltway boomers

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

C) cosmopolitan

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

C) young digerati

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

A) old milltowns

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

D) it fails to address local needs

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

A) life stage

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

A) life stage

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

E) Masstige goods

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

C) Old Luxury brand extensions

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.

A) They are selective, confident, and impatient.

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

E) online buzz

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

C) Generation Y

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

B) street teams

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.

C) Gen Xers are highly socially conscious and concerned about environmental issues.

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

D) products that appeal to 21-year-olds also appeal to baby boomers

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

A) Psychographics

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

A) innovators

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

C) achievers

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

A) knowledge

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

C) experiencer

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

B) thinkers

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

E) makers

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

D) survivors

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

B) survivors

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) innovator

C) believers

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

A) initiator

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

A) understanding the reasons they are not using

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

E) occasion

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

C) a shifting loyal

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

A) a switchcer

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

D) user status

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

C) split loyals

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

D) hard-core loyal

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

B) split loyals

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

E) hard-core loyals

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

B) demographic variables

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

A) macrosegmentation

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

A) demographic variables

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

B) situational factors

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

E) operating variables

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

C) personal characteristics

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

B) purchasing approaches

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

B) microsegmentation

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

D) Step 1—needs-based segmentation

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

D) segment "acid test"

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"

C) segment attractiveness

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

E) segment identification

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

B) flexible market offering

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

B) substantial

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

A) naked solution

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"

D) segment positioning

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

A) the company's objectives and resources

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

E) actionable

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

D) differentiable

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

B) A segment is unattractive if buyers possess strong or growing bargaining power.

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

B) mass

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

A) homogeneous

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

C) differentiated

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

B) differentiated

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

E) undifferentiated

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

A) dividing a segment into subsegments

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

E) Customerization

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

A) single-segment concentration

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

A) single-segment concentration

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

C) supersegments

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

B) It diversifies the firm's risk.

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

C) the product may be supplanted by an entirely new technology

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

D) market specialization