Q&A Hero

Q: Figure 8-7 Figure 8-7 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus with chosen market segments and product groupings. The next step is to develop a simple marketing action to reach a target market. Placing flyers under windshield wipers of cars parked in student parking lots on weekdays between 7:00 a.m. and 4:00 p.m. that offer a $2 off coupon on lunch meal would be especially targeted at potential A. faculty customers. B. staff customers. C. day commuter customers. D. night commuter customers. E. nonstudent customers.

Q: Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just A. formed a market segment using critical product features. B. formed products to be sold into groups. C. developed a market-product grid and estimating size of markets. D. taken a marketing action to reach a target market segment. E. formed prospective buyers into segments.

Q: During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of A. selecting target market segments to reach. B. forming products to be sold into groups. C. developing a market-product grid and estimating size of markets. D. taking marketing actions to reach target markets. E. forming prospective buyers into segments.

Q: A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market would A. have no expected growth. B. not be compatible with the company's current resources. C. not be worth doing since its market size is very small. D. not be readily accessible to the firm's marketing programs. E. be relatively expensive to reach.

Q: Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments? A. Best Foods' competitive position in the segment B. Best Foods' product groupings C. expected growth of the market segment D. size of the market segment E. cost of reaching the segment

Q: It is not recommended that a firm select a target segment that A. would require entry in a global marketplace. B. requires more than one marketing action. C. has few competitors that target this same segment. D. is incompatible with its company's goals or objectives. E. has a growth potential that would require increasing the current workforce.

Q: Five general criteria are often used to select target segments. They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________. A. compatibility with the organization's objectives and resources B. potential of a marketing action to reach a segment C. similarity of needs of potential buyers within a segment D. difference of needs of buyers among segments E. potential for increased profit

Q: Which of the following is a criterion used for selecting a target segment? A. potential for increased profit B. similarity of needs of potential buyers within a segment C. cost of reaching the segment D. difference of needs of buyers among segments E. potential of a marketing action to reach a segment

Q: Which of the following is a criterion used for selecting a target segment? A. potential for increased profit B. competitive position C. similarity of needs of potential buyers within a segment D. difference of needs of buyers among segments E. potential of a marketing action to reach a segment

Q: Which of the following is a criterion used for selecting a target market? A. similarity of needs of potential buyers within a segment B. difference of needs of buyers between segments C. expected growth of a segment D. feasibility of a marketing action to reach a segment E. simplicity and cost of assigning potential buyers to segments

Q: Which of the following is a criterion used for selecting a target market? A. similarity of needs of potential buyers within a segment B. difference of needs of sellers between segments C. feasibility of a marketing action to reach a segment D. market size E. simplicity and cost of assigning potential buyers to segments

Q: All of the following are criterion used for selecting target market segments EXCEPT: A. compatibility with the organization's objectives and resources. B. market size. C. simplicity and cost of assigning potential buyers to segments. D. competitive position. E. cost of reaching the segment.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The largest potential market segment consists of A. students that live in a dormitory. B. students that live in an apartment. C. students that are day commuters. D. students that are night commuters. E. faculty or staff members.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is A. breakfast. B. lunch. C. between-meal snack. D. dinner. E. after-dinner snack.

Q: Figure 8-6 Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. The best way to describe how the student market is segmented is A. whether the student is a faculty or staff member. B. whether the student lives near the campus or far away. C. whether the student has the disposable income to eat at Wendy's. D. combining the factors of where the student lives and when (s)he is on campus. E. the meals eaten at the Wendy's restaurant.

Q: Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and A. how to implement the 80-20 rule. B. which products to group into meaningful categories. C. how to implement a harvesting strategy. D. which product groupings to offer. E. which products to reposition.

Q: One advantage of a market-product grid is that it can be used to A. make cost-cutting decisions under conditions of uncertainty. B. screen many new product ideas in order to select the one with the best long-run market potential. C. determine which target market segments to select and which product groupings to offer. D. select representative samples of consumers for marketing research studies. E. relate the product life cycle to consumer demand.

Q: After establishing the market segments and product groupings on a market-product grid, the next step is to A. fill in the appropriate cells with precise statistical data from primary and/or secondary sources. B. estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three. C. total the vertical columns to identify the greatest marketing synergies and efficiencies. D. total the horizontal rows to identify greatest operations/production synergies and efficiencies. E. identify a marketing action for every product-market combination in the grid.

Q: Each cell of the complete market-product grid shows the __________. A. relative market share B. estimated market size C. investment required to reach the market D. market growth rate E. estimated profit

Q: A market-product grid is a framework to relate the market segments of potential buyers to A. estimated expenses for products sold. B. products offered or potential marketing actions by an organization. C. total anticipated revenue. D. total anticipated profit. E. market share of the closest competitor.

Q: A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. A. market segments of potential buyers B. marketing objectives of potential products C. total anticipated revenue D. total anticipated profit E. market share of the closest competitor

Q: A market-product grid is a framework to relate A. total estimated expenses for each product sold to each market segment. B. total anticipated revenue for each product-market segment combination. C. total anticipated profit for each product sold to each market segment. D. the market segments of current buyers to relative market share compared to the largest competitor. E. the market segments of potential buyers to products offered or potential marketing actions by an organization.

Q: Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because A. it was easier to forecast future sales since there were fewer market-product combinations. B. customers could buy in quantity and take advantage of quantity discounts. C. their suppliers provided free displays and shelving to highlight Hallmark's products. D. it helped buyers relate to the products and make decisions in a more meaningful way. E. it allowed customers to compare price and quality with competitors who displayed their products in a similar manner.

Q: Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?A. The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis.B. This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility.C. The products are grouped so people can relate to them in a more meaningful way when they shop.D. Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.E. Suppliers get preferential treatment based upon the number of different UPCs they provide.

Q: If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells? A. grouping by caloric intake B. grouping by price C. grouping by meal occasion D. grouping by usage rate E. grouping by level of uniqueness

Q: Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market? A. behavioral and geographic B. number of employees and behavioral C. purchase location and purchase type D. NAICS code and geographic E. behavioral and NAICS code

Q: The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people. Thus, the agency is using __________ segmentation. A. entertainment B. psychographic C. geographic D. usage rate E. behavioral

Q: Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which segmentation variable might Evergreen use to segment the market? A. NAICS sector, such as manufacturers, or retailers, or lawyers B. number of locations C. who buys, such as individual buyer or buying groups D. metropolitan statistical area E. number of employees

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

Q: Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to A. differentiate products. B. forecast sales to a consumer market. C. segment an organizational market. D. promote NAFTA. E. segment a consumer market.

Q: Which of the following is a basis used to segment U.S. organizational markets? A. geographic B. psychographic C. income D. prospects E. education

Q: As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market. Which segmentation base and associated variable (s) should you use? A. psychographic: VALS and personality B. demographic: gender and age C. behavioral: students and nonstudents D. geographic: city size and zip code E. transportation mode: car, bike, public transportation, and none (walking)

Q: Figure 8-4To the owner of a Wendy's fast-food restaurant, the information in Figure 8-4 above suggestsA. new menu items or promotional strategies may be needed to convert prospects into users.B. most of the respondents think of Wendy's as their primary fast food restaurant.C. McDonald's has fewer "exclusively loyal" customers than does Wendy's.D. Burger King is closing in on your market share.,E. a need to devise a marketing program to change the minds of nonprospects.

Q: Figure 8-4 For an owner of a Wendy's fast-food restaurant, the information in Figure 8-4 above suggests A. Wendy's has an advantage over both McDonald's and Burger King as being the most preferred "second choice" restaurant. B. most of the respondents think of Wendy's as their primary fast food restaurant. C. a need to devise a marketing program to win customers from McDonald's and Burger King. D. McDonald's has fewer "exclusively loyal" customers than does Wendy's. E. Burger King is closing in on your market share.

Q: Figure 8-4 To the owner of a Wendy's fast food restaurant, the information in Figure 8-4 above suggests that Wendy's prospects are __________ of the total compared to __________ for McDonald's. A. 57.0 percent, 51.0 percent B. 15.2 percent, 40.5 percent C. 14.6 percent, 14.6 percent D. 15.2 percent, 19.0 percent E. 57.0 percent, 26.0 percent

Q: Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions. This is an example of what classic concept? A. the two quarter gap B. the 80/20 rule C. the law of usage D. the 75/25 exchange E. Paul's Law

Q: The 80/20 rule is most closely related to which basis of segmentation? A. geographic B. psychographic C. opportunistic D. demographic E. behavioral

Q: The 80/20 rule suggests that A. 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. B. 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. C. 80 percent of a firm's sales are obtained from 20 percent of its customers. D. 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. E. 80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers.

Q: A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most? A. behavioral B. psychographic C. geographic D. demographic E. product

Q: Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy. A. rate of recurrence B. product utilization C. incidence D. frequency marketing E. consumption index

Q: Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on A. geographic segmentation. B. behavioral segmentation. C. psychographic segmentation. D. demographic segmentation. E. buying condition segmentation.

Q: The market segmentation strategy known as frequency marketing focuses on A. trial. B. the average number of times a person in the target audience is exposed to an advertisement. C. consumption preferences. D. turnover. E. usage rate.

Q: Frequency marketing is a strategy that focuses on A. demographics. B. benefits offered. C. usage rate. D. geography. E. lifestyle.

Q: Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Alamo likely segments its market by A. usage rate. B. benefits offered. C. demographics. D. geography. E. lifestyle.

Q: Usage rate refers to 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. 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.

Q: ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable? A. needs B. lifestyle C. behavioral D. psychographic E. demographic

Q: Many companies have cut travel budgets so that very few business people are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its transatlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. The segmentation strategy of British Airways is an example of A. life stage segmentation. B. lifestyle segmentation. C. social class segmentation. D. behavioral segmentation. E. psychographic segmentation.

Q: Potluck participants bring a variety of dishes to share with family, friends, or coworkers at these events, but it is easy to forget to take the bowl that you brought home with you. Reynolds responded to this problem by creating PotLux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds is using __________ segmentation here. A. psychographic B. behavioral C. demographic D. social E. geographic

Q: Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences? A. demographic segmentation B. psychographic segmentation C. behavioral segmentation D. geographic segmentation E. socioeconomic segmentation

Q: 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 marketers understand this and offer a combination microwave, refrigerator, and freezer targeted to these students. MicroFridge is most likely using which basis of segmentation? A. sociocultural segmentation B. psychographic segmentation C. geographic segmentation D. behavioral segmentation E. socioeconomic segmentation

Q: A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ segmentation. A. geographic B. demographic C. loyalty D. psychographic E. behavioral

Q: Behavioral segmentation may be based onA. lifestyles and demographics.B. retailer and wholesaler behaviors.C. geographic and demographic criteria.D. product features and retail store type.E. demand and supply.

Q: Product features and usage rate are both variables used to employ __________ segmentation. A. geographic B. demographic C. loyalty D. psychographic E. behavioral

Q: Segmentation based on what product features are important to different customers is known as A. demographic segmentation. B. behavioral segmentation. C. psychographic segmentation. D. geographic segmentation. E. socioeconomic segmentation.

Q: Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as A. demographic segmentation. B. psychographic segmentation. C. geographic segmentation. D. behavioral segmentation. E. socioeconomic segmentation.

Q: Nielsen PRIZM segmentation classifies every household into one of 66 demographically and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code. A. financially B. behaviorally C. ethnically D. socially E. ethnographically

Q: The Nielsen PRIZM lifestyle segmentation is based on the belief that "birds of a feather flock together." This type of consumer segmentation is referred to as A. situational segmentation. B. socioeconomic segmentation. C. geographic segmentation. D. psychographic segmentation. E. behavioral segmentation.

Q: Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy. A. psychographic B. behavioral C. situational D. socioeconomic E. geographic

Q: Personality and lifestyle are both variables used to employ __________ segmentation. A. geographic B. behavioral C. attitudinal D. psychographic E. demographic

Q: All of the following are psychographic segmentation variables EXCEPT: A. lifestyle B. needs C. birth era D. PRIZM E. personality

Q: Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as A. behavioral segmentation. B. affective segmentation. C. socioeconomic segmentation. D. psychographic segmentation. E. psychosocial segmentation.

Q: Which of the following statements regarding segmentation bases is most accurate? A. The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. B. Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic. C. The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective. D. Behavioral segmentation is based primarily on personality. E. Psychographic segmentation is based primarily on product features.

Q: 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. A. regional B. lifestyle C. demographic D. geographic E. psychographic

Q: Which of the following statements demonstrate the formation of a segment based on household size? A. Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine. B. GE built a downsized microwave oven to hang under kitchen cabinets. C. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. D. A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. E. A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Q: The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables. A. demographic B. regional C. socioeconomic D. geographic E. psychographic

Q: When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income falls into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market? A. usage B. behavior C. demographic D. buying situation E. psychographic

Q: Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable? A. behavioral B. demographic C. lifestyle D. geographic E. psychographic

Q: More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals - such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market. A. usage rates B. usage patterns C. demographic characteristics D. behavior characteristics E. psychographic characteristics

Q: Which of the following is a consumer demographic segmentation variable? A. personality B. gender C. usage rate D. needs E. region

Q: Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base? A. personality B. usage C. needs D. demographic E. behavioral

Q: Universal Concerts wants to bring a series of music concerts to Canada next year. In general, Western Canadians prefer country music while Eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to __________. A. geographic characteristics B. demographic characteristics C. music format characteristics D. behavioral characteristics E. psychographic characteristics

Q: Which of the following statements best illustrates geographic segmentation? A. GE builds a downsized microwave oven to hang under kitchen cabinets. B. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. C. In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas. D. A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. E. A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Q: Campbell's Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. Campbell's is using __________ segmentation. A. demographic B. behavioral C. economic D. geographic E. psychographic

Q: Region and city size are both variables used to employ __________ segmentation. A. geographic B. behavioral C. district D. psychographic E. demographic

Q: Segmentation based on where prospective customers live or work is referred to as A. zip code segmentation. B. geographic segmentation. C. regional segmentation. D. MSA segmentation. E. NAICS code segmentation.

Q: Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. A. supplier segmentation B. demand segmentation C. regional segmentation D. psychographic segmentation E. product segmentation

Q: About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments? A. different needs of buyers among different segments B. similarity of needs of potential buyers within a segment C. simplicity and cost-effectiveness of assigning potential buyers to segments D. potential for increased profit and ROI E. potential of a marketing action to reach a segment

Q: Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question: A. "Is this product useful on a global scale?" B. "Is it possible to reposition this product?" C. "Is there too much competition for this product?" D. "Is the market loyal to the product?" E. "Would segmentation be worth doing and is it possible?"

Q: Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate? A. Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar. B. Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. C. The needs of buyers should be different, both between segments and within segments. D. The needs of buyers should be the same, both between segments and within segments. E. If there are any differences at all, you should forgo any segmentation.

Q: Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments. A. between; among B. throughout; absent in C. within; among D. absent in; throughout E. among; across