C) multiple segmentation bases
Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.
A) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting
B) positioning, market segmentation, mass marketing, and targeting
C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs.
A) efficiently
B) effectively
C) intensely
D) indirectly
E) both A and B
4) Even though several options are available at any one time, there ________ to segment a market.
A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.
A) geographic
B) benefit
C) end-use
D) customer
E) image
6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?
A) geographic
B) behavioral
C) lifestyle
D) demographic
E) psychographic
7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it?
A) demographic
B) gender
C) psychographic
D) behavioral
E) geographic
8) Demographic variables are so frequently used in market segmentation because they ________.
A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do
9) Marketers must be most careful to guard against which of the following when using age and life cycle segmentation?
A) underestimating
B) stereotyping
C) traditional marketing
D) cultural bias
E) gender bias
10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation?
A) age and life cycle
B) gender
C) behavior
D) psychographic
E) geographic
11) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?
A) gender
B) income
C) occasion
D) usage rate
E) benefits sought
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
A) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic
13) Many marketers believe that which of the following variables are the best starting point for building marketing segments?
A) behavioral
B) family size
C) gender
D) age
E) beneficial
14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?
A) behavioral
B) psychographic
C) occasion
D) impulse
E) emergency
15) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________.
A) user status
B) usage rates
C) benefit
D) behavior
E) loyalty status
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________.
A) user status
B) loyalty status
C) store type
D) brand preference
E) usage rate
17) By studying its less loyal buyers, a company can detect which brands are most ________ its own.
A) competitive with
B) used with
C) overlooked with
D) similar to
E) complementary to
18) Many firms make an effort to identify smaller, better-defined target groups by using ________.
A) user rates
B) loyalty segmentation
C) multiple segmentation bases
D) positioning
E) mass marketing
19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________.
A) operating characteristics
B) purchasing approaches
C) situational factors
D) personal characteristics
E) brand personalities
20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate
21) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis?
A) political factors
B) legal factors
C) geographic factors
D) economic factors
E) cultural factors
22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.
A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation
23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) observable
24) When a business market segment is large or profitable enough to serve, it is termed ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable
25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
A) accessible
B) measurable
C) reachable
D) actionable
E) differentiable
26) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________.
A) accessible
B) measurable
C) reachable
D) differentiable
E) observable
27) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one?
A) segment size
B) segment growth
C) segment structural attractiveness
D) company values
E) company resources
28) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list?
A) relative power of buyers
B) lack of powerful suppliers to control prices
C) few substitute products