Question 1

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

Accepted Answer

A)   product differentiation.
B)   product innovation.
C)   market delineation.
D)   market segmentation.
E)   product groupings.F) C) and E)
G) D) and E)

Question 2

Which of the following statements regarding when and how to segment markets is most accurate?

Accepted Answer

A)   Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors.
B)   Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process.
C)   Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D)   If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E)   Market segmentation strategies work less than 10 percent of the time.F) A) and B)
G) D) and E)

Question 3

A market-product grid is a

Accepted Answer

A)   visual representation of all products offered within a specific product class.
B)   framework used to compare the relative market share of one firm's product offerings to those of its competitors.
C)   technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
D)   framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
E)   technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.F) A) and B)
G) A) and C)

Question 4

Usage rate is

Accepted Answer

A)   the percentage of total possible users divided by the total number of consumers who actually use a product or service.
B)   the number of times a customer uses or recommends a product or service annually.
C)   the quantity consumed or patronage (store visits)  during a specific period.
D)   the maximum number of times a customer has used a product or service historically.
E)   the profits a firm earns from customers who consume a particular product or service.F) A) and E)
G) A) and C)

Question 5

Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drugstores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches

Accepted Answer

A)   compete for the same segment through different channels of distribution.
B)   develop similar products as Timex but under different names.
C)   use a differentiation positioning strategy.
D)   compete for the same customers through similar retail outlets.
E)   create cognitive dissonance in consumers who purchased Timex wristwatches.F) B) and E)
G) A) and B)

Question 6

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

Accepted Answer

A)   product repositioning.
B)   relative positioning.
C)   competitive positioning.
D)   product positioning.
E)   selective perception.F) A) and D)
G) None of the above

Question 7

Marketing synergies often come at the expense of product synergies because

Accepted Answer

A)   product synergies are more effective for penetrating a market rather than creating one.
B)   multiple market segments usually require multiple products.
C)   it is easier to change a product than to completely develop a new marketing plan.
D)   a single customer segment will likely require a variety of products, each of which must be designed and manufactured.
E)   no company can afford to do both at the same time.F) A) and B)
G) A) and C)

Question 8

Marketers use perceptual maps as a means to display in two dimensions the location of products or brands

Accepted Answer

A)   against large market segments in a market-product grid.
B)   against small market segments in a market-product grid.
C)   in virtual space that represents the business or product's time in existence and growth.
D)   in the minds of consumers.
E)   against the revenues generated by other products or brands within the company.F) A) and C)
G) A) and E)

Question 9

Market segmentation is

Accepted Answer

A)   the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time.
B)   sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
C)   disaggregating prospective buyers from groups into segments of one (individuals)  and then creating specific products that will satisfy this person's unique needs.
D)   aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E)   the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.F) A) and B)
G) A) and E)

Question 10

Which of these fast-food restaurants has the highest customer lifetime value?

Accepted Answer

A)   Wendy's
B)   McDonald's
C)   Burger King
D)   McDonald's and Burger King are roughly tied for highest
E)   Wendy's and Burger King are roughly tied for highestF) A) and D)
G) B) and D)

Question 11

According to an analysis of an Apple market-product grid for its personal computer line, Apple would get the least product synergies from the

Accepted Answer

A)   most expensive products, Mac Pro and MacBook Pro.
B)   most versatile products, Mac Pro and iMac.
C)   products with the most complimentary market segments, iMac and MacBook Air.
D)   products with the fewest complimentary market segments, Mac Pro and Mac Mini.
E)   least frequently updated products, MacBook Air and Mac Mini.F) B) and D)
G) B) and C)

Question 12

The effort and expense of segmentation should be undertaken by a business firm only when

Accepted Answer

A)   it can comfortably maintain market share.
B)   it expects this to result in increased sales and profits.
C)   it can also assume social responsibility.
D)   the firm's resources are very scarce.
E)   it desires to provide the best quality products on the market.F) B) and E)
G) C) and E)

Question 13

Product differentiation is

Accepted Answer

A)   a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
B)   the unique combination of product benefits received by targeted buyers.
C)   those characteristics of a product that make it superior to competitive substitutes.
D)   a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
E)   the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.F) A) and C)
G) A) and E)

Question 14

At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards-all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African Americans. This is an example of ________ segmentation.

Accepted Answer

A)   regional
B)   lifestyle
C)   demographic
D)   geographic
E)   psychographicF) All of the above
G) D) and E)

Question 15

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Accepted Answer

A)   take marketing actions to reach target markets.
B)   group potential buyers into segments.
C)   select target markets.
D)   group products to be sold into categories.
E)   develop a market-product grid and estimate size of the overall market.F) A) and D)
G) D) and E)

Question 16

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation?

Accepted Answer

A)   sociocultural segmentation
B)   psychographic segmentation
C)   geographic segmentation
D)   behavioral segmentation
E)   socioeconomic segmentationF) B) and C)
G) B) and E)

Question 17

All of these are examples of increased customer value from organizational synergy except which?

Accepted Answer

A)   lower prices
B)   increased brand awareness
C)   more products
D)   improved distribution
E)   improved quality of existing productsF) A) and B)
G) A) and C)

Question 18

In the athletic shoe market, Adidas AG and Nike Inc. practice ________ positioning since both companies vie for the same customers with technologically advanced products.

Accepted Answer

A)   psychological
B)   perceptual
C)   differentiation
D)   head-to-head
E)   marketF) B) and E)
G) A) and B)

Question 19

Which of the following statements about market segmentation for organizational markets is most accurate?

Accepted Answer

A)   Criteria for segmenting markets are the same whether the market is composed of consumers or organizations.
B)   Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets.
C)   Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets.
D)   Consumer markets use market segmentation criteria while organizational markets do not.
E)   The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.F) B) and C)
G) B) and D)

Question 20

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on ________ segmentation.

Accepted Answer

A)   geographic
B)   behavioral
C)   psychographic
D)   demographic
E)   rate-basedF) B) and C)
G) B) and D)

Exam 9: Market Segmentation, Targeting, and Positioning

All of these are examples of increased customer value from organizational synergy except which?

Correct Answer
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The effort and expense of segmentation should be undertaken by a business firm only when

Correct Answer
verified

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

Correct Answer
verified

Which of these fast-food restaurants has the highest customer lifetime value?

Correct Answer
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Usage rate is

Correct Answer
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Correct Answer
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Marketers use perceptual maps as a means to display in two dimensions the location of products or brands

Correct Answer
verified

Correct Answer
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Which of the following statements regarding when and how to segment markets is most accurate?

Correct Answer
verified

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Correct Answer
verified

Market segmentation is

Correct Answer
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Product differentiation is

Correct Answer
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Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on ________ segmentation.

Correct Answer
verified

According to an analysis of an Apple market-product grid for its personal computer line, Apple would get the least product synergies from the

Correct Answer
verified

In the athletic shoe market, Adidas AG and Nike Inc. practice ________ positioning since both companies vie for the same customers with technologically advanced products.

Correct Answer
verified

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

Correct Answer
verified

Marketing synergies often come at the expense of product synergies because

Correct Answer
verified

Which of the following statements about market segmentation for organizational markets is most accurate?

Correct Answer
verified

Correct Answer
verified

A market-product grid is a

Correct Answer
verified

Exam 9: Market Segmentation, Targeting, and Positioning

All of these are examples of increased customer value from organizational synergy except which?

Correct AnswerverifiedShow Answer

The effort and expense of segmentation should be undertaken by a business firm only when

Correct AnswerverifiedShow Answer

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

Correct AnswerverifiedShow Answer

Which of these fast-food restaurants has the highest customer lifetime value?

Correct AnswerverifiedShow Answer

Usage rate is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Marketers use perceptual maps as a means to display in two dimensions the location of products or brands

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements regarding when and how to segment markets is most accurate?

Correct AnswerverifiedShow Answer

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Correct AnswerverifiedShow Answer

Market segmentation is

Correct AnswerverifiedShow Answer

Product differentiation is

Correct AnswerverifiedShow Answer

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on ________ segmentation.

Correct AnswerverifiedShow Answer

According to an analysis of an Apple market-product grid for its personal computer line, Apple would get the least product synergies from the

Correct AnswerverifiedShow Answer

In the athletic shoe market, Adidas AG and Nike Inc. practice ________ positioning since both companies vie for the same customers with technologically advanced products.

Correct AnswerverifiedShow Answer

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

Correct AnswerverifiedShow Answer

Marketing synergies often come at the expense of product synergies because

Correct AnswerverifiedShow Answer

Which of the following statements about market segmentation for organizational markets is most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A market-product grid is a

Correct AnswerverifiedShow Answer

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