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Homework answers / question archive / Western New Mexico University BSAD 340 Chapter 8 1)A______is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products
Western New Mexico University
BSAD 340
Chapter 8
1)A______is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products.
a. firm
b. buyer c. market
d. consumer
e. target
2. The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body, decorate it, and keep it for a lifetime. The primary market segment for the Belly Cast kit is:
a. all parents
b. expectant moms
c. recently married couples
d. parents of toddlers
e. collectors of unusual art
3. A market is people or organizations that have:
a. the ability, willingness, and power to buy.
b. a medium of exchange and products they desire.
c. needs and wants and an ability and willingness to buy.
d. unmet needs or wants and products or services that satisfy those unmet needs or wants.
e. communication, financial, and capital resources.
4. A(n) is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.
a. market universe b. market segment
c. aggregated market
d. segmentation base
e. population sample
5. A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes?
a. Yes, they are a potential market since they are all about the same age. b. No, they do not have the ability to purchase at this time.
c. No, to qualify as a market, they must need the product.
d. Yes, they are a market because this product could satisfy their consumer wants and desires.
e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.
6. Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called to divide its large market.
a. micromarketing
b. positioning
c. market segmentation
d. cannibalization
e. perceptual mapping
7. is the process of dividing a market into meaningful groups that are relatively similar and identifiable.
a. Perceptual mapping
b. Positioning
c. Micromarketing
d. Market sampling
e. Market segmentation
8. The purpose of market segmentation is to:
a. reduce the market down to a size the firm can handle
b. divide the market into equal size and profit regions for sales territories
c. group a large number of markets together, enabling a company to serve them simultaneously
d. develop a generalized definition of the market as a whole
e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
9. Home Cookin’ Catering would like to improve customer satisfaction and increase repeat business. When you ask the owners to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because:
a. it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment
b. the company needs to reduce the size of the market it serves
c. the company needs to learn how to group these markets together into one market to serve all of them adequately
d. it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market
e. this will position the company in the minds of its consumers as compared to its competitors
10. Market segmentation can assist marketers to do all of the following EXCEPT:
a. develop more precise definitions of customer needs and wants b. identify which variable base should be used for segmenting
c. more accurately define marketing objectives
d. improve resource allocation
e. evaluate performance
11. All of the following are criteria for successful market segmentation EXCEPT:
a. substantiality
b. identifiability and measurability c. accountability
d. accessibility
e. responsiveness
12. To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are:
a. segmentability, targetability, reliability and validity, and homogeneity
b. tangibility, inseparability, nonperishability, and uniqueness
c. substantiality, identifiability and measurability, accessibility, and responsiveness
d. reliability, flexibility, tangibility, and unbiased
e. complexity, compatability, relative advantage, trialability, and observability
13. A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who
sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT:
a. substantiality
b. accessibility
c. identifiability and measurability d. complexity
e. responsiveness
14. According to the criterion of , a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.
a. causality
b. accountability
c. responsiveness
d. accessibility e. substantiality
15. The marketing researcher for Bubastis Cat Treats has noticed a growing number of cat owners purchasing organic treats for their pets. The researcher thinks there is a market for organic cat treats, but she’s not sure if the segment is substantial. In this case, substantiality means the segment:
a. has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group
b. is large enough to permit a profitable market effort toward its members
c. exhibits a response rate to marketing variables different from the rates of other segments
d. is too large and needs to be reduced to a more easily identifiable and measurable size
e. will be difficult to develop a product to match this group of buyers
16. The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee. Even though gay lifestyles are becoming more accepted socially, the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly. Which criterion of a useful segment does this illustrate?
a. Substantiality
b. Identifiability and measurability
c. Complexity
d. Responsiveness
e. Validity
17. Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes?
a. Substantiality
b. Identifiability and measurability c. Accessibility
d. Responsiveness
e. Reliability
18. Many children on the autism spectrum like to chew on clothing, paper, or anything that they can find. Kid Companions manufactures nontoxic, plastic chewable jewelry for kids to wear. The product is a great way to keep kids from chewing on their clothes, while letting them work through their chewing tendencies. However, the company is unsure how to reach parents and therapists with information about their product. This illustrates a segmentation problem with:
a. substantiality.
b. identifiability and measurability.
c. responsiveness. d. accessibility.
e. accountability.
19. The requirement for a market segment to be responsive means:
a. over half of the consumers in the identified segment will be actively interested in the product
b. all the segments identified by a marketer should respond to the marketing mix
c. all the segments identified by a marketer should not respond to the marketing mix
d. the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix
e. the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix
20. Altria Group, Inc.’s Phillip Morris failed at an attempt to target Americans looking for a potentially safer cigarette. This market exhibits a lack of:
a. substantiality.
b. identifiability and measurability. c. responsiveness.
d. reliability.
e. accessibility.
21. A research firm has conducted marketing research on the market for metal roofing for homes. The research firm has determined there are thousands of homeowners who want the durability provided by metal roofs. These homeowners are generally married and between 25 and 54 years of age. They tend to live in suburban neighborhoods, and most subscribe to lifestyle magazines. If you were interpreting these results, you might suggest that the research firm:
a. conduct additional research because it has no idea about the measurability of its segments.
b. examine the research report again to see if it can determine segment accessibility.
c. conduct a follow-up analysis to determine if the segments it might choose would respond differently than other segments to its marketing strategy.
d. not segment the concrete siding market because the only market for siding is contractors who build the homes.
e. segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between ages 25 and 54 years who read lifestyle magazines.
22. If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program?
a. Responsiveness
b. Identifiability and measurability
c. Substantiality
d. Accessibility
e. Functionality
23. A health club has a new fitness program for expectant mothers. After flyers were placed at the offices of area obstetricians, classes filled up within two days. Which segmentation success criterion was most influential in the success of this promotion?
a. Substantiality
b. Identifiability
c. Measurability
d. Causality
e. Responsiveness
24. are characteristics of individuals, groups, or organizations that marketers use to divide a total market into segments.
a. Differentiation guides b. Segmentation bases
c. Perceptual maps
d. Responsiveness quotients
e. Accessibility quotients
25. Military Spouses is the only publication in the world that targets readers who are “married to the military.” Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n):
a. market base.
b. selector base.
c. identifier.
d. segmentation base.
e. discriminator base.
26. Scott owns Buffalo Mountain Coffee in Deer Park, Ohio. He understands the need to segment his market, and available marketing research indicates there is much demand in the community for unique coffee drinks. However, he has few resources and cannot engage in intensive consumer research to precisely identify a segment. Which of the following strategies would you suggest he employ?
a. Develop an undifferentiated strategy, because it is not a large community and he could create a single marketing mix that would serve the entire community
b. Employ a macrosegmentation strategy, because the data needed for such a strategy are both easy to get and fit his needs exactly
c. Use a single-variable strategy, because it offers an inexpensive alternative that would not require much experience to employ
d. Use a multiple-variable segmentation strategy, because it is easier to use than single-variable segmentation
e. Conduct a VALS investigation of his buying market
27. is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate.
a. Community segmentation b. Geographic segmentation
c. Geodemographic segmentation
d. PRIZM segmentation
e. Demonstrated regionalization
28. Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use segmentation when stocking condiment merchandise. a. geographic
b. economic
c. demographic
d. benefit
e. geodemographic
29. A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed. Segmenting the market according to climate is an example of
segmentation.
a. psychographic
b. lifestyle
c. perceptual
d. demographic e. geographic
30. The Coca-Cola Company has over 450 brands in over 195 countries. According to their Web site, their products range from Samurai, an energy drink available in Asia to Vita, an African juice drink. It uses segmentation in this marketing strategy.
a. geographic
b. economic
c. demographic
d. usage-rate
e. multipositioning
31. Almost all cell phones sold in the United States are black or gray. Almost all cell phones sold in Europe are colorful, and very few black phones are sold. A cell phone manufacturer knowing this information could use segmentation when selling its phones internationally.
a. geographic
b. economic
c. demographic
d. benefit
e. multipositioning
32. All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach EXCEPT:
a. Many firms need to find new ways to generate sales because of sluggish and intensely competitive markets.
b. A regional approach gives marketing managers control over the competitive environment.
c. Computerized checkout stations with scanners enable retailers to assess accurately which brands sell the best in each region.
d. Many packaged-goods manufacturers are introducing new regional brands intended to appeal to local preferences.
e. A more regional approach allows consumer goods companies to react more quickly to competition.
33. Marketers use to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior.
a. benefits
b. psychographics c. demographics
d. usage rates
e. sociocultural attributes
34. Income, ethnic background, gender, and age are all examples of segmentation bases.
a. geodemographic
b. organizational c. demographic
d. socioeconomic
e. psychographic
35. Colgate manufactures a fruit-flavored SpongeBob Squarepants toothpaste for kids. The age-based variable that distinguishes the market for this product is an example of segmentation.
a. geographic b. demographic
c. psychographic
d. benefits
e. usage rate
36. Modern Maturity magazine is targeted toward adults aged 50 years and older. It has articles on health and fitness as well as the arts and finance. What segmenting base is Modern Maturity using? a. Demographic
b. Geographic
c. Nomological
d. Economic
e. Generational
37. Fisher-Price developed a rugged, waterproof camera for children. This product uses
segmentation.
a. ethnicity
b. income c. age
d. gender
e. occupation
38. While most marketing to Generation Y tries so hard to be hip that it borders on parody, Vans has kept the decadesold brand real and vital for Gen Yers. Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks, which operate in malls around the country; the wildly successful Vans Warped Tour for alternative music; and the Vans Triple Crown, the brand’s answer to the X Games. The segmentation plan used by Vans relies heavily on segmentation.
a. ethnicity
b. income c. age
d. gender
e. occupation
39. Redbook magazine targets what it calls “Redbook jugglers,” defined as 25to
44yearold women who must juggle family, husband, and job. According to a Redbook ad, “She’s the product of the ‘me generation,’ the thirtysomething woman who balances home, family, and career— more than any generation before her, she refuses to put her pleasures aside. She’s old enough to know what she wants, and young enough to get it.” This is an example of segmentation.
a. demographic and psychographic
b. benefit desired and usage rate
c. geodemographic and benefit desired
d. demographic and usage rate
e. benefit desired and demographic
40. Which of the following statements about the teen market is TRUE?
a. Teens represent half of all spending in the United States.
b. Teens have considerable influence over major family purchase decisions.
c. Teens typically have very little influence over major family purchase decisions.
d. Teens spend a considerable amount of money on health-related purchases.
e. All of the above are true.
41. Deal$ stores sell a wide variety of low-priced merchandise: party supplies, cleaning products, toys, food, housewares, and health and beauty products for both men and women. Many items in the store are priced no higher than one dollar. Which type of demographic segmentation is Deal$ using?
a. Ethnic
b. Usage rate c. Income
d. Gender
e. Age
42. H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands, so only women will be permitted to shop there. Which type of demographic segmentation is H&M using?
a. Lifestyle
b. Usage rate
c. Benefit
d. Age
e. Gender
43. Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts, Tips, and Advice for Dads-to-Be. It is an advice book for men whose partners are expecting a baby. What demographic variables have been used to define the market for this book?
a. Benefit desired and lifestyle
b. Gender and family life cycle stage
c. Age, gender, and personality
d. Benefit desired and gender
e. Usage-rate and lifestyle
44. Coca-Cola launched a new Black History television commercial on BET to coincide with the Martin Luther King Jr. holiday. The ad is just one element of a strategy for connecting with African American consumers. CocaCola’s segmentation plan for this promotional campaign is based on
segmentation. a. demographic
b. sociocultural attributes
c. psychographic
d. usage rate
e. geodemographic
45. Johnson Publishing Company, the world’s largest African Americanowned
publishing company and home of Ebony magazine, has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. This brand will use the strong relationship the publisher has with the African American market to sell the brand. What form of demographic segmentation will be used to market the Ebony Home brand?
a. Geographic
b. Income
c. Ethnic
d. Benefit
e. Lifestyle
46. In Miami, several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida. The radio stations are using segmentation.
a. usage rate b. ethnic
c. socioeconomic
d. geographic
e. gender
47. Modern Bride is a publication that contains articles and lots of ads for the bride-to-be. Many young women consult this magazine as they plan their special day. The segmentation base used to define the publication’s target market is based on variables.
a. geodemographic
b. geographic
c. family life cycle
d. lifestyle
e. psychographic
48. A series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the:
a. generation gap. b. family life cycle.
c. maturation process.
d. segmentation cycle.
e. psychographic process.
49. Jane graduated from high school in 1978, is married, and has two teenage children. Most of Jane’s friends from high school have children who have already graduated from college and gotten married, and some have grandchildren. Jane and her former classmates are at different stages of the:
a. internalization phase.
b. segmentation process. c. family life cycle.
d. psychographic cycle.
e. maturation process.
50. Evenflo makes baby gates to keep toddlers away from stairs. What demographic segmentation variable will Evenflo use to identify its target market?
a. Gender
b. Benefit
c. Usage rate
d. Family life cycle
e. Ethnic
51. Which of the following businesses would be most likely to use family life cycle segmentation?
a. Those that produce and market computer software and hardware
b. The snack industry
c. Fast-food restaurants
d. Business-to-business marketers
e. Wedding planners, couples-only resorts, and day care centers
52. segmentation is based on personality, motives, and lifestyles. a. Psychographic
b. Demographic
c. Benefit
d. Family life cycle
e. Character
53. All of the following are bases for psychographic segmentation EXCEPT: a. benefits
b. personality
c. motives
d. lifestyles
e. geodemographics
54. A Small World is a nonprofit retail store that sells gift items made by artisans from over 30 different countries. This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price. The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible. The store uses segmentation.
a. demographic b. psychographic
c. geodemographic
d. ethnic
e. geographic
55. NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the pouring rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph of a NASCAR driver. These fans are not concentrated in any one area but are dispersed throughout the United States. A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used segmentation to determine its target market.
a. demographic b. psychographic
c. geodemographic
d. usage rate
e. family life cycle
56. Wine Spectator is a magazine that targets people who appreciate good wine and food. However, the discriminating reader of this magazine is also interested in travel and health, so the magazine features travel and health-related stories. This publication relies on variables to identify its target market.
a. psychographic
b. demographic
c. usage rate
d. geodemographic
e. family life cycle
57. Magazines like Martha Stewart Living, Better Homes & Gardens, and other magazines targeted to people who are interested in improving their personal spaces rely on segmentation.
a. psychographic
b. demographic
c. usage rate
d. geodemographic
e. family life cycle
58. The James Hardie Siding Company sells concrete siding. It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed. So Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed not to rot or crack for 50 years. In terms of psychographic segmentation, the siding company used the variable.
a. lifestyles b. motives
c. benefits
d. demographic
e. personality
59. divides individuals into groups according to the way they spend their time, the importance of items in their surroundings, their beliefs, and socioeconomic characteristics.
a. Life cycle segmentation
b. Temporal segmentation c. Lifestyle segmentation
d. Microsegmentation
e. Macrosegmentation
60. is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentations.
a. Geodemographic segmentation
b. Microsegmentation
c. Sociocultural clustering
d. Acculturation
e. Lifestyle segmentation
61. In Baton Rouge, Louisiana, everyone who is anybody in society can’t wait to get a copy of 225 magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features articles on how they work and play. The editor of 225 magazine is relying on segmentation.
a. geodemographic
b. graphic
c. benefit
d. socioeconomic
e. income
62. Which of the following statements best describes the reason marketers find geodemographic segmentation so effective?
a. “A bird in the hand is worth two in the bush.”
b. “Every action has an opposite and equal reaction.”
c. “A rifle is more exact than a shotgun.”
d. “Don’t put all of your eggs in one basket.” e. “Birds of a feather flock together.”
63. Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example, viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during the same commercial breaks as nonHispanics living in a different neighborhood. Kraft’s strategy best exemplifies segmentation.
a. sociocultural
b. lifestyle
c. cluster benefit d. geodemographic
e. systematic geographic
64. is the process of grouping customers into market segments according to the benefits sought from the product.
a. Benefit segmentation
b. Value-added segmentation
c. Lifestyle segmentation
d. Macrosegmentation
e. Psychographic segmentation
65. Miller Lite’s longrunning “Great Taste...Less Filling!” advertising campaign was ranked by Advertising Age magazine as the 8th-best advertising campaign in history. Miller Lite was using
segmentation in this ad campaign.
a. geographic
b. demographics
c. psychographics d. benefit
e. usage rate
66. ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints. The product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing warmth can work at night while you sleep to restore your body. The manufacturer of ThermaCare heat wraps is using segmentation.
a. geodemographic
b. functional c. benefit
d. socioeconomic
e. feature-based
67. KarryLite, the manufacturer of lightweight suitcases with wheels, uses as its slogan, “Takes the ‘lug’ out of luggage.” This slogan illustrates the use of segmentation.
a. geodemographic b. benefit
c. functional
d. usage-rate
e. feature-based
68. There are many furniture manufacturers. Tall Paul’s is the only one that makes furniture to meet the needs of people who are over 6’6” tall. These people find furniture designed for averagesized people to be cramped and uncomfortable. Tall Paul’s uses segmentation.
a. geodemographic
b. usage-rate
c. demographic
d. psychographic e. benefit
69. When asked to name a brand of sports drink, most people will answer Gatorade, and some will respond with POWERade. But people with diabetes who still need to replenish electrolytes lost during activity or illness cannot drink these sports drinks because they are high in sugar and thus cannot be consumed by diabetics. As a result, a manufacturer has developed Champion Lyte, which contains no sugar. The manufacturer of Champion Lyte has used segmentation to identify its market.
a. geodemographic
b. usage-rate
c. demographic
d. psychographic e. benefit
70. Many people find it difficult to peel hard-boiled eggs. Eggies is a kitchen gadget designed to help make cooking hard boiled eggs quicker and easier. The product allows customers to hard-boil eggs without the shell. Consumers simply crack an egg, pour it into the plastic “Eggie,” boil, then twist to enjoy hardboiled eggs without the messy peeling of the eggshell after they're done. Eggies is using
segmentation.
a. usage-rate
b. demographic
c. geodemographic
d. competitive e. benefit
71. Which type of segmentation divides a market by the amount of product bought or consumed?
a. Benefit segmentation
b. Characteristic segmentation c. Usage-rate segmentation
d. Demographic segmentation
e. Psychographic segmentation
72. Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing
segmentation.
a. lifestyle
b. motive
c. usage-rate
d. demographic
e. personality
73. The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1) people who never utilized mass transit,
(2) people who utilized mass transit in the past but not now, (3) people who utilized mass transit occasionally, and (4) people who utilized mass transit regularly. These groups have significantly different perceptions about transportation alternatives. This is an example of segmentation.
a. demographic
b. benefit
c. aggregate
d. economic e. usage-rate
74. ThinkGeek is an online retailer that caters to computer enthusiasts and other “geeky” social groups. Their merchandise includes clothing, electronic and scientific gadgets, unusual computer peripherals, office toys, pet toys, child toys, and caffeinated drinks and candy. ThinkGeek runs a points-for-reward system called Geek Points, under which customers can earn rewards for buying more products. This is an example of segmentation by:
a. demographic.
b. benefit.
c. aggregate.
d. economics. e. usage rate.
75. General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children’s schools. This program, called the Box Tops for Education Program, is a means of changing light users into heavier users. In other words, it is a form of segmentation.
a. lifestyle
b. motive
c. usage-rate
d. demographic
e. personality
76. What does the 80/20 principle propose?
a. Roughly 80 percent of the profit comes from 20 percent of the sales.
b. Roughly 80 percent of a firm’s customers are repeat business.
c. Roughly 50 percent of a firm’s customers purchase 80 percent of the sales volume of the product. d. Roughly 20 percent of a firm’s customers purchase 80 percent of the sales volume of the product.
e. Sales are equally divided among heavy, medium, and light users, but they all need slightly different products.
77. The proposes that a minority of a firm’s customers purchase a majority of the volume of the product.
a. majority fallacy
b. equity fallacy c. 80/20 principle
d. cannibalization rule
e. optimizer principle
78. Pocket-knife collector Sam Penley decided to open The Knife Depot, a store that sells pocket knives and related paraphernalia. After 18 months in business, Sam has noticed that most of his sales are to the same small group of customers (about 40 people) even though he has records to show there are over 200 active pocket-knife collectors within a 50mile radius of his store. Sam’s retailing experience is supportive of the:
a. optimizer principle
b. min-max rule
c. majority fallacy
d. rule of demand e. 80/20 principle
79. H&R Block launched a $100 million marketing campaign to parlay the company’s intimate knowledge of 20 million customers’ finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to itself to make people think of it as a company offering services year-round.
a. reposition
b. reengineer
c. demarket
d. undifferentiate
e. niche
80. Business marketers focus on all of the following market segments EXCEPT:
a. institutions.
b. producers. c. households.
d. resellers.
e. government.
81. Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also sells institutional-size packages to military bases, schools, restaurants, and other large organizations. The marketers of Zatarains would most likely segment the business market according to:
a. company characteristics.
b. the buying process.
c. financial terms.
d. customer relationship objectives.
e. length of distribution channel.
82. Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners. Tower’s primary market is defined as companies with a need for specialized fasteners. All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT:
a. psychographic variables.
b. the method the company uses to make purchases.
c. geographic location.
d. personal characteristics of buyers themselves.
e. company size.
83. Firms can be categorized by the type of purchasing strategy they use. usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.
a. Strugglers
b. Actualizers
c. Optimizers d. Satisficers
e. Experiencers
84. Hank operates a plumbing and electrical supply store. He has categorized its business customers by their purchasing strategy. Hank has found it much easier to serve and satisfy the , who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.
a. adopters
b. adapters
c. optimizers
d. innovators e. satisficers
85. Firms can be categorized by the type of purchasing strategy used. consider numerous, even unfamiliar, suppliers and solicit and analyze options.
a. Satisficers
b. Strivers
c. Optimizers
d. Actualizers
e. Innovators
86. The Green Earth, a landscaping company, finds that the most difficult firms to get business from are the , because this group considers numerous and even unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a higher levels of customer service.
a. actualizers
b. strivers
c. satisficers
d. optimizers
e. early adopters
87. What is the first step in segmenting a market?
a. Set the segmentation goals
b. Choose a basis or bases for segmenting the market c. Select a market or product category for study
d. Profile and analyze segments
e. Select target markets
88. All of the following are steps in the market segmenting process EXCEPT: a. determining the objectives of the segmentation strategy
b. profiling and analyzing segments
c. designing, implementing, and maintaining appropriate marketing mixes
d. selecting a market or product category for study
e. choosing a basis or bases for segmenting the market
89. June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment’s size, expected growth, frequency of exercise, and overall profit potential. Which step in segmenting a market is LaVista engaged in?
a. Profiling and analyzing her market segments
b. Positioning her products to her market segments
c. Targeting promotions to her market segments
d. Differentiating her market segments
e. Concentrating her marketing mix on the most profitable marketing segments
90. After selecting a market for study and choosing bases for segmenting that market, the marketer must select the segmentation , which identify the specific segmentation variables to use.
a. descriptors
b. matrices
c. narratives
d. variations
e. networks
91. Thompson Pools installs and maintains swimming pools. They group their customers according to their needs: new installs, regular maintenance, and frequent product consumers. When do they need a new segmentation analysis?
a. Once every 20 years
b. They should do them regularly because of the rapidly changing nature of most markets.
c. They don’t need any because consumer markets don’t rapidly change and develop like business goods markets.
d. Every year, using new bases for variety
e. Only when the market changes
92. Market segmentation:
a. is a scientific technique for selecting ways to attract specific population samples
b. is rarely done by consumer products companies
c. only needs to be done once for each product d. should be redone periodically
e. should be done every time a product enters a new stage of its life cycle
93. A(n) is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
a. heterogeneous segment b. target market
c. responsive segment
d. aggregated market
e. undifferentiated target
94. The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture manufacturer, are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable:
a. market sample. b. target market.
c. perceived market.
d. functional market.
e. market base.
95. Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers but now also carries a line of rugs, window treatments, and bedding. Its is described as women with average annual household income of $60,000 or more.
a. market audience
b. market differentiation
c. perceived market d. target market
e. aggregated market
96. Which of the following is NOT an advantage of an undifferentiated marketing strategy? a. effectively protects firm from competition
b. very cost effective
c. low complexity
d. reaches anyone
e. offers a single channel of distribution
97. Which of the following is a potential disadvantage associated with an undifferentiated strategy?
a. Large competitors may more effectively market to niche segment b. Unimaginative product offerings
c. Segments too small
d. High costs
e. Loss of synergy
98. One segment of a market is called a:
a. slice
b. wedge
c. pocket
d. slot e. niche
99. Which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix?
a. Undifferentiated
b. Concentrated
c. Niche
d. Uniform
e. Multisegmented
100. Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) strategy.
a. multisegment targeting
b. universal product
c. concentrated targeting
d. undifferentiated targeting
e. product differentiation
