Q&A Hero

Q: The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's: a. status b. equity c. frame d. role e. position

Q: Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced to indicate product rarity. The other is in a run-down strip mall and contains some of the same type of merchandise, but the items are left in open boxes and placed haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies. a. market integration b. segmentation c. targeting d. positioning e. market combination

Q: _____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general, and is related to the place a product occupies in consumers' minds relative to competing offerings. a. Market differentiation b. Diversification c. Combination marketing d. Positioning e. Market aggregation

Q: Product positioning is the process of: a. finding the correct location for retail outlets to sell a product category b. finding the right channel of distribution for a product c. creating the desired image of the firm's product with respect to its competition d. competing with competitors' products in the retailers' stores for the best position on the shelf e. pricing the product to be at a competitive level with other brands on the market

Q: The Ritz Carlton hotel chain is renowned for its service and individual treatment of its customers. All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer. If a business traveler ordered soft pillows, only wanted martinis in his mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he arrived. The Ritz Carlton is basing its one-to-one marketing on which of the following trends? a. the growing number of customers who do not have time to spend shopping b. the fact consumers do not want to be treated like the masses c. data mining capabilities d. the use of reward systems to increase brand loyalty e. the growing market for luxury products

Q: All of the following have been identified as trends that will lead to the continuing growth of one-to-one marketing EXCEPT: a. the growing number of customers who do not have time to spend shopping b. the fact consumers do not want to be treated like the masses c. technology that allows the collection of detailed information on customers d. consumers are loyal to companies and brands that have earned their loyalty and reinforce it at every purchase occasion e. mass marketing is no longer appropriate, especially for consumer packaged-goods products

Q: The basic goal of one-to-one marketing is to: a. increase the market for the product category to new and current customers b. eliminate the use of mass media for promotion and locate a direct communications channel c. increase operating costs and locate new customers d. reduce the number of company employees and increase overall sales e. reduce costs through customer retention and increase revenue through customer loyalty

Q: Increasing share of customer means: a. selling more products to each customer b. increasing the number of customers c. winning market share from competitors d. the sales due to a customer relative to the costs of attaining and retaining that customer e. individual customer revenue minus costs to satisfy that customer

Q: Land's End offers customers the option of having jeans and other types of pants made to fit them according to their waist, hip, and leg length measurements. This is an example of: a. an application of the 80/20 rule b. firewall marketing c. one-to-one marketing d. transformational marketing e. data mining

Q: Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service. The resort is practicing: a. firewall marketing b. one-to-one marketing c. an application of the 80/20 rule d. transactional marketing e. marketing through technology

Q: An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer is referred to as: a. 80/20 marketing b. interpersonal marketing c. zoned marketing d. one-to-one marketing e. individual marketing

Q: Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient. This is an example of: a. demarketing b. cannibalization c. undifferentiation d. repositioning e. perceptual confusion

Q: When Procter & Gamble (P&G) 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 exemplifies a drawback of multisegment targeting strategy called: a. demarketing b. selective perception c. undifferentiation d. cannibalization e. market repositioning

Q: Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by neutralizing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids, then _____ has occurred. a. demarketing b. cannibalization c. undifferentiation d. repositioning e. perceptual confusion

Q: _____ is one of the potential disadvantages associated with a multisegment strategy. a. Inadequate demand b. Demarketing c. Lower profits d. Cannibalization e. Loss of synergy

Q: A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut into sales of a firm's existing products. a. cannibalization b. synergy c. positioning d. demarketing e. inelastic demand

Q: With multisegment targeting, a company could benefit from all of the following EXCEPT: a. greater sales volume b. greater product design and management cost c. higher profits d. larger market share e. economies of scale in manufacturing

Q: Pharmaceutical firms market many brands of cold remedies with highly similar ingredients. The primary difference among the brands is their promotions that emphasize that various brands will treat different symptoms, such as runny noses, headaches, and fever. This is one way to practice: a. concentrated segmenting b. segment differentiation c. multisegment targeting d. integrated targeting e. multiple-use product marketing

Q: Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy. a. market integration b. concentrated targeting c. undifferentiated targeting d. multisegment targeting e. heterogeneous positioning

Q: Piper Corporation makes aircrafts. It produces several different planes for three categories of customer: Professional, Personal, and Trainer. What type of targeting strategy is Piper using? a. demand positioning b. concentrated targeting c. undifferentiated targeting d. multisegment targeting e. market differentiation

Q: When a firm serves two or more well-defined market segments with a distinct marketing mix for each, it is using a(n) _____ targeting strategy. a. undifferentiated b. concentrated c. niche d. multisegment e. pluralistic

Q: Companies that adopt a concentrated marketing strategy violate which of the following old sayings? a. You can't bake a pie without breaking some eggs. b. Don't count your chickens before they hatch. c. Don't put all of your eggs in one basket. d. The grass is always greener on the other side of the fence. e. A rolling stone gathers no moss.

Q: E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use? a. market aggregation b. undifferentiated targeting c. multisegment marketing d. concentrated targeting e. limited demand

Q: When a firm uses a concentrated targeting strategy, it can: a. view the total market as receptive to its product b. offer a highly specialized marketing mix c. reach customers in two or more segments that might otherwise be missed d. avoid the danger of putting all resources in one micromarket e. concentrate on one generalized product to fit the mass market, maximizing sales volume

Q: Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market. Tall Paul's uses a(n) _____ targeting strategy. a. benefit b. undifferentiated c. multisegment marketing d. universal product code e. concentrated

Q: All of the following are advantages of using a concentrated targeting strategy EXCEPT: a. concentration of resources b. can better meet the needs of a narrowly defined segment c. allows some small firms to better compete with larger firms d. strong positioning e. high cannibalization

Q: A(n) _____ strategy entails selecting one segment of a market to target, and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly specialized marketing mix. a. universal product b. undifferentiated targeting c. concentrated targeting d. market development e. product development

Q: 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

Q: When Henry Ford first made the model T, he said consumers "can have any color they want as long as it is black." This was a case of _____. a. repositioning b. reengineering c. one-to-one marketing d. undifferentiated targeting e. niche marketing

Q: 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

Q: 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

Q: 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

Q: A(n) _____ is a group of people or organizations for whom 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

Q: 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

Q: 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 is about average 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

Q: After selecting a market for study and choosing bases for segmenting that market, the next step is to: a. choose a basis or bases for segmenting the market b. implement and maintain a marketing mix c. design a marketing mix d. profile and analyze segments e. select target markets

Q: 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

Q: All of the following are steps in the market segmenting process EXCEPT: a. determine the objectives of the segmentation strategy b. profile and analyze segments c. design, implement, and maintain appropriate marketing mixes d. select a market or product category for study e. choose a basis or bases for segmenting the market

Q: 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

Q: The Green Earth, a landscaping company, finds that the most difficult firms to get business from are the _____ because this group considers numerous, 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

Q: 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

Q: 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. adaptors c. optimizers d. innovators e. satisficers

Q: 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

Q: 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 purchase decision makers e. company size

Q: 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

Q: Business marketers focus on all of the following market segments EXCEPT: a. institutions b. producers c. households d. resellers e. governments

Q: Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs. After 18 months in business, they have noticed most of their sales are to the same small group of customers (about 40 people) even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store. Their retailing experience is supportive of the: a. optimizer principle b. min-max rule c. majority fallacy d. rule of demand e. 80/20 principle

Q: 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

Q: 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.

Q: 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

Q: A number of plastic surgery groups in Great Britain are making use of loyalty cards. Patients who have five procedures performed at their offices will receive either a free procedure or a discount off another more complex surgical procedure. Aimed at patients who get maintenance treatments such as Botox or regular face peels, the loyalty cards may be used toward any type of surgical procedure. This is an example of segmentation by: a. demographic b. benefit c. aggregate d. economic e. usage-rate

Q: 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

Q: 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

Q: 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

Q: Private Ears are earphones that a person with limited hearing can use to hear the television without turning the volume up full blast. That way, other family members with normal hearing can watch the television at the appropriate volume for them. Private Ears is using _____ segmentation. a. usage-rate b. demographic c. geodemographic d. competitive e. benefit

Q: When asked to name a brand of sports drink, most people will answer Gatorade, and some will respond with Powerade also. 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 drunk 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

Q: 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 average-sized people to be cramped and uncomfortable. Tall Paul's uses _____ segmentation. a. geodemographic b. usage rate c. demographic d. psychographic e. benefit

Q: Karry-Lite, 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

Q: 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

Q: Heavenly Ham is a ham and sandwich store that stresses in its advertisements that customers should choose them "when taste matters." Heavenly Ham uses _____ segmentation. a. geographic b. demographic c. psychographic d. benefit e. usage rate

Q: _____ is the process of grouping customers into market segments according to what is sought from the product. a. Benefit segmentation b. Value-added segmentation c. Lifestyle segmentation d. Macrosegmentation e. Psychographic segmentation

Q: 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 non-Hispanics living in a different neighborhood. Kraft's strategy best exemplifies _____ segmentation. a. sociocultural b. lifestyle c. cluster benefit d. geodemographic e. systematic geographic

Q: 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.

Q: What is PRIZM? a. a software program for classifying consumers psychographically b. a method of dividing the United States into 66 manageable submarkets c. a way to identify the importance of ethnic origin to the proposed target market d. a software program for storing purchase habit data e. the method of market segmentation used by businesses in the service industry

Q: 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

Q: _____ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentation. a. Geodemographic segmentation b. Microsegmentation c. Sociocultural clustering d. Acculturation e. Lifestyle segmentation

Q: _____ 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

Q: 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. lifestyle b. motives c. benefits d. demographic e. personality

Q: 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

Q: 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

Q: 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 super 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

Q: 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

Q: All of the following are bases for psychographic segmentation EXCEPT: a. benefits b. personality c. motives d. lifestyles e. geodemographics

Q: _____ segmentation is based on personality, motives, and lifestyle. a. Psychographic b. Demographic c. Benefit d. Family life cycle e. Character

Q: Which of the following businesses would be most likely to use family life-cycle segmentation? a. businesses 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

Q: Evenflo makes baby-gates to keep toddlers off 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

Q: Jane graduated from high school in 1978, is married, and has two teenaged children. Most of Jane's friends from high school have children who have already graduated from college, gotten married, and some with grandchildren. Jane and her former classmates are at difference stages of the: a. internalization phase b. segmentation process c. family life cycle d. psychographic cycle e. maturation process

Q: 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

Q: 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

Q: 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