MBA 6140 Quiz 3
1.
T4: What is true of the notion of catering to markets of one? P55 i.
It is the opposite of mass marketing.[one product fits all] ii.
It commonly entails mass customization. iii.
Technological advances are increasingly enabling many firms to engage in mass customization and in targeting markets of one. iv.
All of the above v.
None of the above
2.
T4: According to the Marketer's Toolkit, what is always true of a market segment that is considered substantial? P57 i.
It is huge. ii.
It is the largest segment. iii.
It is potentially profitable. iv.
All of the above v.
None of the above
[The segment of interest must be large enough to be profitably served by you. Segmentation is in terms of annual income, gender, and age usually]
3.
T4: What is true of effective positioning?P61 i.
It generally defies the so-called Law of Exclusivity. ii.
It is perceptual in nature. iii.
All of the above iv.
None of the above
[Attempts to manage how potential customers perceive a product or service.]
4.
A2: According to "Rediscovering Market Segmentation," what is true? P1 i.
Firms have largely abandoned market segmentation. ii.
Market segmentation has become narrowly focused on the needs of advertising. iii.
Market segmentation is being used less and less for advertising purposes, but has become a mainstay of product development. iv.
None of the above.
5.
A2: According to "Rediscovering Market Segmentation," what is true? P3 i.
Segmentation is capable of informing all 4Ps, not just advertising.

ii.
Psychographics have proven very useful in predicting what people are likely to purchase in any given product category. [ proved to be effective at brand reinforcement and positioning not predicting purchases] i.
Psychographic segmentation generally is vastly superior to other types of segmentation, including demographic segmentation. ii.
All of the above.
6.
A2: According to "Rediscovering Market Segmentation," what is true?P8 i.
Generally, businesses need to segment their markets no more than once every five to ten years. ii.
Segmentation that effectively illuminates one marketing mix element, such as how to advertise to targeted segments, generally also sheds much light on the remaining marketing mix elements. iii.
All of the above. iv.
None of the above.
[The most common error marketers commit is applying segmentations designed to shed light on one kind of issue to some other purpose for which they were not designed.]
7.
A2: According to "Rediscovering Market Segmentation," what is true? P3 i.
Since the early 1960s, correspondence between purchasing patterns and income has diminished, as has correspondence between purchasing patterns and demographics in general. ii.
As products became less distinctive, sellers tried increasingly to sell products via imagery. iii.
As products became less distinctive, sellers tried increasingly to sell products via emotional appeals. iv.
All of the above. v.
None of the above.
8.
A2: What is true of VALS?P4 i.
It was intended to offer advice for a fee on making effective marketing decisions based on lifestyle research. ii.
It drew heavily from the works of sociologist David Riesman. iii.
It drew heavily from the works of psychologist Abraham Maslow. iv.
All of the above. v.
None of the above.
9.
A2: What is true of psychographic research?P4-5

i.
It has shed much light on effective ways of changing buyer behavior. ii.
It has been used effectively to position brands and reinforce brand preferences. iii.
Arguably, the Pepsi Generation campaign was the biggest failure spawned by psychographic research. iv.
All of the above.
[What’s more, psychographic segmentations have done little to enlighten the companies that commission them about which markets to enter or what kinds of offers to make, how products should be taken to market, and how they should be priced.]
10.
A2: What is true of conjoint analysis?P7 i.
It serves to predict brand sales based on market share of industry sales. ii.
It has proven most useful in assessing demand for complimentary products, such demand for toner based on sales of printers. iii.
It is used to study tradeoffs (e.g., among luxury, reliability, and price) that customer make when deciding which of several brands or product configurations to buy. iv.
It facilitates grouping customers simultaneously on demographics and psychographuics.
11.
A2: What is true of the "gravity of decision spectrum"?P3 i.
Last week's lecture on buyer behavior suggests that involvement is likely to increase as gravity increases ii.
Last week's lecture on buyer behavior suggests that gravity depends greatly on credence qualities. iii.
Last week's lecture on buyer behavior suggests that reinforcement drives gravity. iv.
Gravity refers to an offering's power of attraction, which sometimes depends more on psychogenic factors than on functional attributes.[not this P3]
12.
A3: What is true of moneyed mass market? P2-4 i.
It consists of the super rich. ii.
It has been in existence for more than a century, but was overlooked until recently. iii.
Pinpoint target marketing is the key to reaching it. iv.
None of the above
13.
A3: Which of the following is the first step in developing a marketing strategy focused on the moneyed masses?P3 i.
segmentation of the moneyed mass market ii.
choosing target segments within the moneyed mass market

iii.
measuring customer satisfaction iv.
positioning
[First you'll need to rethink how to position your offerings and even reconsider the entire "position map" of your industry. Next, you'll have to design or modify your offerings with a more affluent mass market in mind. And finally, you'll need to adjust how you go to market, in terms of both retail channels and promotions.]
14.
A3: Assume that JBL makes competitively priced speakers of good quality that are sold widely through such stores as R.C. Willey and BestBuy. To develop products for the moneyed masses, what should JBL do?P5-6 i.
Consider both the benefits that JBLs speakers provide and the benefits that true high-end speakers deliver. ii.
Imagine what JBL could offer at prices that are 2 to 10 times higher than the prices of its current speakers, but lower than the prices of the very best speakers. iii.
All of the above iv.
None of the above
15.
A3: As prices of big-screen LCD HD TVs drop, wealthy people spend less on them and have more to spend on the latest expensive toys. In the article, this type of phenomenon was referred to as
P11 i.
product status erosion ii.
the trickle-up effect iii.
product democratization iv.
technology induced redistribution