TRUE/FALSE QUESTIONS Answer whether the following statements are true or false
1 Describe the characteristics of markets and market segments
2 Explain the importance of market segmentation
2. Large companies like Coca-Cola do not practice segmentation because their products are targeted at the mass market. true false
3 Discuss criteria for successful market segmentation
3. It is important for a targeted market segment to be identifiable and measurable because it must sustain long-term sales and profit for the marketer. true false
4 Describe bases commonly used to segment consumer markets
4. Levi's produces Dockers clothing designed for the baby boomer generation. Levi's is using the family life cycle as a segmentation variable for Dockers. true false 5. The Sharper Image sells a variety of high-tech items through its catalogs and specialty shops. The items are designed to appeal to the wealthy "yuppie" market, especially those consumers who are adventurous and active and have a flair for self-expression. The Sharper Image should use demographic variables for market segmentation. true false 6. Oral-B makes a variety of toothbrushes. One type has hard nylon bristles for extra cleaning power, while another type has soft bristles for gentle care of sensitive teeth. Smaller brushes with cartoon characters on the handle are designed for children. Finally, a toothbrush with an angled handle is for taking care of hard-to-clean areas. Oral-B uses benefit segmentation. true false 7. Many beer companies target university and college-age males because this group consumes a disproportionate amount of the product. These beer companies practice usage rate segmentation. true false
4. Levi's produces Dockers clothing designed for the baby boomer generation. Levi's is using the family life cycle as a segmentation variable for Dockers. true false
5. The Sharper Image sells a variety of high-tech items through its catalogs and specialty shops. The items are designed to appeal to the wealthy "yuppie" market, especially those consumers who are adventurous and active and have a flair for self-expression. The Sharper Image should use demographic variables for market segmentation. true false
6. Oral-B makes a variety of toothbrushes. One type has hard nylon bristles for extra cleaning power, while another type has soft bristles for gentle care of sensitive teeth. Smaller brushes with cartoon characters on the handle are designed for children. Finally, a toothbrush with an angled handle is for taking care of hard-to-clean areas. Oral-B uses benefit segmentation. true false
7. Many beer companies target university and college-age males because this group consumes a disproportionate amount of the product. These beer companies practice usage rate segmentation. true false
7 Discuss alternative strategies for selecting target markets
8. The C&38;H sugar company does not single out any particular subgroup within the population of sugar users but instead directs one marketing mix at everyone. This is an undifferentiated targeting strategy, also known as mass marketing. true false 9. Johnson & Johnson makes bandages and other first-aid products. Some products are designed for adults, and others are designed specifically for children, with smaller sizes and cartoon figure decorations. Johnson & Johnson engages in multisegment targeting. true false
8. The C&38;H sugar company does not single out any particular subgroup within the population of sugar users but instead directs one marketing mix at everyone. This is an undifferentiated targeting strategy, also known as mass marketing. true false
9. Johnson & Johnson makes bandages and other first-aid products. Some products are designed for adults, and others are designed specifically for children, with smaller sizes and cartoon figure decorations. Johnson & Johnson engages in multisegment targeting. true false
8 Explain how and why firms implement positioning strategies and how product differentiation plays a role
10. Perceptual maps indicate where firms are trying to position their products. true false
MULTIPLE-CHOICE QUESTIONS Select the response that best answers the question, and write the corresponding letter in the space provided.
13. Karina owns the Coachlight Travel Agency and would like to improve customer satisfaction and increase repeat business. You ask Karina to describe a typical customer, and she says it is hard to find one kind of customer. With corporate travel, family vacations, retirement cruises, spring breaks, and honeymoons, it is hard to know how to serve all these accounts. You suggest that it is time for market segmentation because: a. Karina needs to learn how to group these markets together into one market to serve them adequately b. Karina needs to reduce the size of her market served c. it will enable Karina to build an accurate description of the customer needs by group and design a marketing mix to fit each segment d. it will help develop a generalized definition of the market as a whole and the optimal marketing mix for this market e. this will position Karina's company in the minds of her consumers as compared to the competition 14. The Poquet Company, a manufacturer of hand-held computers, completed a thorough examination and analysis of its business customers two years ago. They grouped the customers into four segments based on size, geographic region, and benefits sought. Would you recommend a new segmentation analysis this year? a. Yes, I would recommend one even more regularly because of the rapidly changing nature of most markets. b. No, once every five years is about average. c. No, business customer markets are not rapidly changing or developing like consumer goods markets. d. Yes, but use different bases to get some variety. e. No, segmentation is rarely done by business-to-business marketers because it is not useful.
13. Karina owns the Coachlight Travel Agency and would like to improve customer satisfaction and increase repeat business. You ask Karina to describe a typical customer, and she says it is hard to find one kind of customer. With corporate travel, family vacations, retirement cruises, spring breaks, and honeymoons, it is hard to know how to serve all these accounts. You suggest that it is time for market segmentation because: a. Karina needs to learn how to group these markets together into one market to serve them adequately b. Karina needs to reduce the size of her market served c. it will enable Karina to build an accurate description of the customer needs by group and design a marketing mix to fit each segment d. it will help develop a generalized definition of the market as a whole and the optimal marketing mix for this market e. this will position Karina's company in the minds of her consumers as compared to the competition
14. The Poquet Company, a manufacturer of hand-held computers, completed a thorough examination and analysis of its business customers two years ago. They grouped the customers into four segments based on size, geographic region, and benefits sought. Would you recommend a new segmentation analysis this year? a. Yes, I would recommend one even more regularly because of the rapidly changing nature of most markets. b. No, once every five years is about average. c. No, business customer markets are not rapidly changing or developing like consumer goods markets. d. Yes, but use different bases to get some variety. e. No, segmentation is rarely done by business-to-business marketers because it is not useful.
15. Which of the following factors should a museum consider prior to engaging in segmentation? a. ability to identify and measure segments b. differentiated responses among segments c. ability to reach targeted segments d. sufficient size to warrant developing a unique marketing mix e. all of the above 16. A manufacturer of photographic equipment segments the camera market by use: family and personal, hobbyists, professional, and scientific. 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. responsiveness e. complexity 17. The manager of CritterEats noted that due to an increase in owners of nontraditional pets such as ferrets, the exotic animal feed segment could be classified as having substantiality. This means that it: a. has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group b. is too large and needs to be reduced to a more easily identifiable and measurable size c. exhibits a response rate to marketing variables different from the rates of other segments d. is large enough to permit a viable market effort toward its members e. will be difficult to develop a product to match this group of buyers 18. Marketers sometimes ignore small market niches-even if it has unfulfilled needs-because these niches lack: a. substantiality b. identifiability and measurability c. responsiveness d. accessibility e. causality 19. The Help-U Program will be offering a course to help people become more assertive. It wants to segment the market and to slant its ads based on a consumer's amount of timidity and shyness. The first segmentation criterion problem that would greet this proposal is: a. identifiability and measurability b. responsiveness c. accessibility d. substantiality e. responsibility 20. The city of Calsey has a literacy program for migrant farm workers but has had a difficult time reaching this group with information about the program, even though radio and television stations have provided public service announcements free of charge. This is a segmentation problem called: a. substantiality b. accessibility c. responsiveness d. identifiability and measurability e. causality 21. The Good Doggie firm has a new training program especially for puppies. After placing flyers around town, the classes filled up within two days. Which segmentation success criterion is in force? a. accessibility b. identifiability and measurability c. responsiveness d. substantiality e. causality
15. Which of the following factors should a museum consider prior to engaging in segmentation? a. ability to identify and measure segments b. differentiated responses among segments c. ability to reach targeted segments d. sufficient size to warrant developing a unique marketing mix e. all of the above
16. A manufacturer of photographic equipment segments the camera market by use: family and personal, hobbyists, professional, and scientific. 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. responsiveness e. complexity
17. The manager of CritterEats noted that due to an increase in owners of nontraditional pets such as ferrets, the exotic animal feed segment could be classified as having substantiality. This means that it: a. has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group b. is too large and needs to be reduced to a more easily identifiable and measurable size c. exhibits a response rate to marketing variables different from the rates of other segments d. is large enough to permit a viable market effort toward its members e. will be difficult to develop a product to match this group of buyers
18. Marketers sometimes ignore small market niches-even if it has unfulfilled needs-because these niches lack: a. substantiality b. identifiability and measurability c. responsiveness d. accessibility e. causality
19. The Help-U Program will be offering a course to help people become more assertive. It wants to segment the market and to slant its ads based on a consumer's amount of timidity and shyness. The first segmentation criterion problem that would greet this proposal is: a. identifiability and measurability b. responsiveness c. accessibility d. substantiality e. responsibility
20. The city of Calsey has a literacy program for migrant farm workers but has had a difficult time reaching this group with information about the program, even though radio and television stations have provided public service announcements free of charge. This is a segmentation problem called: a. substantiality b. accessibility c. responsiveness d. identifiability and measurability e. causality
21. The Good Doggie firm has a new training program especially for puppies. After placing flyers around town, the classes filled up within two days. Which segmentation success criterion is in force? a. accessibility b. identifiability and measurability c. responsiveness d. substantiality e. causality
22. The Merry Maid Home Cleaning Service offers three levels of cleaning: luxury-deluxe service (which includes a pet shampoo and ceiling scrubbing), the moderately priced basic package, and budget quick-clean service (vacuuming and laundry only). The income characteristic that has been used to divide its customers into segments is called the: a. accessibility quotient b. perceptual map c. segmentation base d. differentiation rule e. 80/20 principle 23. A new sport utility vehicle is targeting people who live in regions with rugged terrain, such as the desert or mountainous areas. This is an example of: a. topographic segmentation b. geographic segmentation c. demographic segmentation d. benefit segmentation e. geodemographic segmentation 24. At an affordable price, Dodge Neon is targeting Generation X. This is an example of: a. usage rate segmentation b. benefit segmentation c. psychographic segmentation d. demographic segmentation e. geodemographic segmentation 25. The director of marketing has just completed demographic research on the total market for home improvement supplies. Which of the following demographic data would be his best choice for developing his market segmentation strategy? a. age data about home improvement buyers b. lifestyles of home improvement buyers c. home improvement usage patterns among buyers d. the benefits sought by home improvement buyers e. values of home improvement buyers 26. A new minivan is targeting households with a married couple who have three or more young children. This kind of demographic targeting is based on: a. micromarkets b. the family life cycle c. the VALS program d. geodemographics e. psychographics 27. Early to Rise hot air balloon company targets people who are adventurous and fun-loving. This is an example of: a. demographic segmentation b. usage rate segmentation c. benefit segmentation d. psychographic segmentation e. family life cycle segmentation 28. Wrigley's Chewing Gum ran an advertising campaign that targeted heavy smokers. The advertising indicated that "when you can't smoke, chew Wrigley's." This is an example of what type of segmentation? a. geodemographic b. benefit c. demographic d. psychographic e. usage rate 29. The Parker Pen Company manufactures several different categories of writing instruments: inexpensive disposable ballpoints, pens with erasable ink, pens specifically designed for artwork, and expensive executive pens. The Parker Pen Company is using which type of segmentation? a. benefit b. usage rate c. demographic d. psychographic e. geodemographic 30. When Jon opened his music store he noticed that he sold most of his cassette tapes to the same small group of customers (about eighty people), even though his sales records showed that he had over 400 regular cassette tape purchasers. This is a marketing phenomenon called the: a. optimizer principle b. music loyalty rule c. 80/20 principle d. cannibalization rule e. majority fallacy
22. The Merry Maid Home Cleaning Service offers three levels of cleaning: luxury-deluxe service (which includes a pet shampoo and ceiling scrubbing), the moderately priced basic package, and budget quick-clean service (vacuuming and laundry only). The income characteristic that has been used to divide its customers into segments is called the: a. accessibility quotient b. perceptual map c. segmentation base d. differentiation rule e. 80/20 principle
23. A new sport utility vehicle is targeting people who live in regions with rugged terrain, such as the desert or mountainous areas. This is an example of: a. topographic segmentation b. geographic segmentation c. demographic segmentation d. benefit segmentation e. geodemographic segmentation
24. At an affordable price, Dodge Neon is targeting Generation X. This is an example of: a. usage rate segmentation b. benefit segmentation c. psychographic segmentation d. demographic segmentation e. geodemographic segmentation
25. The director of marketing has just completed demographic research on the total market for home improvement supplies. Which of the following demographic data would be his best choice for developing his market segmentation strategy? a. age data about home improvement buyers b. lifestyles of home improvement buyers c. home improvement usage patterns among buyers d. the benefits sought by home improvement buyers e. values of home improvement buyers
26. A new minivan is targeting households with a married couple who have three or more young children. This kind of demographic targeting is based on: a. micromarkets b. the family life cycle c. the VALS program d. geodemographics e. psychographics
27. Early to Rise hot air balloon company targets people who are adventurous and fun-loving. This is an example of: a. demographic segmentation b. usage rate segmentation c. benefit segmentation d. psychographic segmentation e. family life cycle segmentation
28. Wrigley's Chewing Gum ran an advertising campaign that targeted heavy smokers. The advertising indicated that "when you can't smoke, chew Wrigley's." This is an example of what type of segmentation? a. geodemographic b. benefit c. demographic d. psychographic e. usage rate
29. The Parker Pen Company manufactures several different categories of writing instruments: inexpensive disposable ballpoints, pens with erasable ink, pens specifically designed for artwork, and expensive executive pens. The Parker Pen Company is using which type of segmentation? a. benefit b. usage rate c. demographic d. psychographic e. geodemographic
30. When Jon opened his music store he noticed that he sold most of his cassette tapes to the same small group of customers (about eighty people), even though his sales records showed that he had over 400 regular cassette tape purchasers. This is a marketing phenomenon called the: a. optimizer principle b. music loyalty rule c. 80/20 principle d. cannibalization rule e. majority fallacy
5 Describe the bases for segmenting business markets
31. The Teletech Telephone Supply Company has categorized its business customers by their purchasing strategy used. Teletech has found that it is much easier to serve the customer that prefers to recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable. These customers can be described as: a. experiencers b. satisfiers c. optimizers d. strugglers e. actualizers 32. The Teletech Telephone Supply Company finds that the most difficult firms to service in the purchasing-strategy-used segmentation scheme are the ____________. This group considers numerous, even unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a higher level of customer service and follow-up on quotations. a. actualizers b. strivers c. satisfiers d. achievers e. optimizers 7 Discuss alternative strategies for selecting target markets 33. Industry-Quip has decided to enter the industrial heating and air-conditioning market, and all the current competitors in that market use a differentiated product market strategy. Which strategy would make the LEAST sense for Industry-Quip? a. product differentiation strategy b. specialized product strategy c. concentrated or niche targeting strategy d. undifferentiated targeting strategy e. multisegment targeting strategy 34. Which of the following marketers is most likely to be able to practice undifferentiated marketing? a. the owner of the only hardware store in a small rural town located in Nova Scotia b. the owner of a three-store chain of budget outlets on the lower eastern shore of Newfoundland c. the owner of a print-shop in Montreal d. the administration of a small private college in Edmonton e. the operator of a year-round resort in British Columbia 35. Left-Out, Inc., manufactures knives, scissors, and other utensils specifically designed for left-handed consumers. Left-Out is using which type of strategy? a. concentrated or niche targeting b. undifferentiated targeting c. multisegment marketing d. universal product coding e. specialized marketing 36. When Procter & Gamble introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This drawback of a multisegment targeting strategy is called: a. shift fallacy b. perceptual confusion c. undifferentiation d. repositioning e. cannibalization
31. The Teletech Telephone Supply Company has categorized its business customers by their purchasing strategy used. Teletech has found that it is much easier to serve the customer that prefers to recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable. These customers can be described as: a. experiencers b. satisfiers c. optimizers d. strugglers e. actualizers
32. The Teletech Telephone Supply Company finds that the most difficult firms to service in the purchasing-strategy-used segmentation scheme are the ____________. This group considers numerous, even unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a higher level of customer service and follow-up on quotations. a. actualizers b. strivers c. satisfiers d. achievers e. optimizers
7 Discuss alternative strategies for selecting target markets 33. Industry-Quip has decided to enter the industrial heating and air-conditioning market, and all the current competitors in that market use a differentiated product market strategy. Which strategy would make the LEAST sense for Industry-Quip? a. product differentiation strategy b. specialized product strategy c. concentrated or niche targeting strategy d. undifferentiated targeting strategy e. multisegment targeting strategy
34. Which of the following marketers is most likely to be able to practice undifferentiated marketing? a. the owner of the only hardware store in a small rural town located in Nova Scotia b. the owner of a three-store chain of budget outlets on the lower eastern shore of Newfoundland c. the owner of a print-shop in Montreal d. the administration of a small private college in Edmonton e. the operator of a year-round resort in British Columbia
35. Left-Out, Inc., manufactures knives, scissors, and other utensils specifically designed for left-handed consumers. Left-Out is using which type of strategy? a. concentrated or niche targeting b. undifferentiated targeting c. multisegment marketing d. universal product coding e. specialized marketing
36. When Procter & Gamble introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This drawback of a multisegment targeting strategy is called: a. shift fallacy b. perceptual confusion c. undifferentiation d. repositioning e. cannibalization
37. A producer of teas commissioned a large research project on different brands of tea. The result was a graphical display of how consumers viewed these brands. Some brands were viewed as being "for iced tea," while others were considered as "hot teas." Also, some brands were viewed as traditional, while others were considered to have a variety of flavors. This is an example of: a. a positioning map b. cannibalization c. a segmentation study d. a perceptual map e. target marketing 38. In the late 1980s, Oldsmobile tried to change its image from being a car for older people to being a car for younger people by using an advertising campaign, "This is Not Your Father's Oldsmobile." This effort is an example of: a. reimaging b. perceptual mapping c. resegmenting d. market segmentation e. repositioning
37. A producer of teas commissioned a large research project on different brands of tea. The result was a graphical display of how consumers viewed these brands. Some brands were viewed as being "for iced tea," while others were considered as "hot teas." Also, some brands were viewed as traditional, while others were considered to have a variety of flavors. This is an example of: a. a positioning map b. cannibalization c. a segmentation study d. a perceptual map e. target marketing
38. In the late 1980s, Oldsmobile tried to change its image from being a car for older people to being a car for younger people by using an advertising campaign, "This is Not Your Father's Oldsmobile." This effort is an example of: a. reimaging b. perceptual mapping c. resegmenting d. market segmentation e. repositioning
9 Discuss global market segmentation and targeting issues
39. You are a marketing manager wanting to segment European and Asian food markets. You might use all of the following segmentation variables EXCEPT: a. per capita GNP b. VALS c. religion d. culture e. political system
