Nova Southeastern University

MKT 5070

Chapter 7 Identifying Market Segments and Targets

1)Which of the following statements about market segmentation is true?

1. 1. It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
   2. It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
   3. It is a process of creating an image or identity of the product in the minds of the target market.
   4. It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
   5. It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

2. Establishing and communicating the distinctive benefit(s) of the company's market offering, for each target segment is called                                                                            .
   1. market research
   2. market positioning
   3. marketing effectiveness
   4. market segmentation
   5. market dominance

3. The process of selecting one or more market segments to enter is called                             .
   1. market targeting
   2. market dominance
   3. market positioning
   4. market segmentation
   5. market research

4. A                         consists of a group of customers who share a similar set of needs and wants.
   1. vertical marketing system
   2. market basket
   3. market share
   4. market segment
   5. market level  

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.
   1. demographic
   2. behavioral
   3. psychographic
   4. geographic
   5. cultural  

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?
   1. differentiated marketing
   2. affiliate marketing
   3. guerrilla marketing
   4. affinity marketing
   5. grassroots marketing

7. Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize                                                                       .
   1. the level of disposable income earned by the target group
   2. customer differences
   3. the cost-benefit relationship of narrowing the target market
   4. customer complaints
   5. saturated markets

8. If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the      method of segmentation.
   1. demographic
   2. psychographic
   3. geographic
   4. cultural
   5. behavioral  

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                                                                .
   1. loyalty status
   2. behavioral occasions
   3. user status
   4. psychographic lifestyle
   5. readiness stage

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 any man making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of                                                 .
    1. occupation
    2. family size
    3. benefits
    4. nationality
    5. user status

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.
    1. PRIZM
    2. behavioral
    3. psychographic
    4. demographic
    5. VALS

12. Pampers divides its market demographically on the basis of                               into prenatal, new baby, baby, toddler, and preschooler.
    1. life stage
    2. gender
    3. age
    4. income
    5. social class  

13. 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.
    1. life stage
    2. age
    3. behavior
    4. user status
    5. income

14. Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?
    1. life stage
    2. benefits
    3. age segment
    4. personality type
    5. social class

15. Which of the following statements about Gen Yers is true?
    1. They are selective, confident, and impatient.
    2. They are more likely to associate retirement with "the beginning of the end."
    3. They are more pragmatic and individualistic.
    4. They were born between 1964 and 1978.
    5. They were the first generation to find surpassing their parents' standard of living a serious challenge

16. 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.
    1. student ambassadors
    2. unconventional sports
    3. cool events
    4. computer games
    5. online buzz  

17. 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.
    1. Generation Z
    2. Generation X
    3. Generation Y
    4. Silent generation
    5. Baby boomers

18. Which of the following statements about Gen Xers is true?
    1. Gen Xers are more optimistic and team-oriented.
    2. Gen Xers are selective, confident, and impatient.
    3. Gen Xers highly socially conscious and concerned about environmental issues.
    4. Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
    5. Technology is a barrier for Gen Xers.

19.                        is the science of using psychology and demographics to better understand consumers.
    1. Psychographics
    2. Interactionism
    3. Clustering
    4. Demographic transition
    5. Customerization

20. Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?
    1. initiator
    2. influencer
    3. decider
    4. buyer
    5. gatekeeper  

21. The key to attracting potential users, or even possibly nonusers, is                              .
    1. understanding the reasons they are not using
    2. offering financial incentives for first-time use
    3. increasing the usage rate of existing users
    4. developing a new product that better meets their needs
    5. increasing advertising expenditures

22. 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        .
    1. benefits
    2. user status
    3. buyer-readiness stage
    4. demographics
    5. occasion  

23. 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

                     .

1. a split loyal
2. an antiloyal
3. a shifting loyal
4. a hard-core loyal
5. a switcher

24. 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

                     .

1. a switcher
2. a split loyal
3. a shifting loyal
4. a hard-core loyal
5. an antiloyal