Chpt. 8 Exam Questions
1. ________ segmentation divides a market by the amount of product bought or consumed, such as
irregular users or heavy users.
a. Demographic
b. Usage-rate
c. Benefit
d. Lifestyle
2. In the 1950s, Clara's produced only one lotion aimed at the entire skin care market. Today, Clara's
produces over a dozen creams and lotions with loyal fans for each one. In this case, Clara's has
successfully used the strategy of ________ .
a. cause-related marketing
b. cause-related marketing
c. market segmentation
d. rebranding
3. Krunchies was originally marketed as children's cereal. However, after it began losing that market to
sweeter cereals, such as Caramels, Krunchies' ads began targeting adults, stressing its high-fiber content.
Which of the following is true about Krunchies?
a. Krunchies used product quality positioning to regain sales over Caramels.
b. Krunchies used product class positioning to regain sales over Caramels.
c. Krunchies positioned itself against Caramels.
d. Krunchies successfully repositioned its cereal away from Caramels.
4. A means of displaying, in two or more dimensions, the location of products, brands, or groups of
products in customers' minds is called ________ .
a. perceptual mapping
b. rebranding
c. repositioning
d. product differentiation
5. ________ segmentation is the process of grouping customers into market segments according to the
value they seek from the product.
a. Demographic
b. Benefit
c. Usage-rate
d. Geographic
6. Business customers who place an order with the first familiar supplier to meet product and delivery
requirements are called ________ .
a. augmenters
b. maximizers
c. optimizers
d. satisficers
7. A situation that occurs when sales of a new product cut into sales of a firm's existing products is
known as ________ .
a. differentiation
b. diversification
c. segmentation
d. cannibalization
8. Which of the following is true of business customers known as optimizers?
a. They consider numerous suppliers and study all proposals carefully before selecting.
b. They choose to settle for mediocrity if it speeds up the buying process.
c. They contact familiar suppliers instead of soliciting new bids.
d. They choose the first supplier that meets the minimum product expectations.
9. If a market segment reacts to a marketing mix differently than other segments, the criterion of
________ for successful segmentation is met.
a. substantiality
b. accessibility
c. measurability
d. responsiveness
10. Segmenting markets on the basis of personality, motives, lifestyles, and geodemographics is called
________ segmentation.
a. ethnic
b. psychographic
c. geographic
d. gender
11. The process of dividing a market into meaningful, relatively similar, and identifiable groups is called
________ .
a. market positioning
b. market segmentation
c. horizontal diversification
d. fractional attribution
12. A ________ strategy develops a distinct marketing mix for each of the various well-defined segments
it targets.
a. niche segment marketing
b. concentrated targeting
c. multisegment targeting
d. one-to-one marketing
13. Which of the following is a characteristic that is required for a group to be considered a market?
a. Advertising
b. A wide variety of products or services
c. Customer service
d. Willingness to buy
14. With a(n) ________ strategy, a firm selects one segment of a market for targeting its marketing
efforts.
a. concentrated targeting
b. one-to-one marketing
c. one-to-one marketing
d. undifferentiated targeting
15. Which of the following is a basis for demographic segmentation?
a. Climate
b. Benefits sought
c. Gender
d. Personality
16. A positioning strategy that some firms use to distinguish their products from those of competitors is
known as ________ .
a. product diversification
b. market segmentation
c. product differentiation
d. market penetration
17. Changing consumers' perceptions of a brand in relation to competing brands is known as ________ .
a. diversifying
b. perceptual mapping
c. repositioning
d. satisficing
18. Which of the following is true of a concentrated targeting strategy?
a. It is the preferred strategy to market commodity goods such as flour and sugar.
b. It protects the firm from segments that are too small or shrinking.
c. It increases marketing costs as the firm promotes too many segments.
d. It can better meet the needs of a narrowly defined segment.
19. To fulfill the ________ criterion of a segmentation scheme, a firm must be able to reach members of
target markets with customized marketing mixes.
a. substantiality
b. accessibility
c. measurability
d. identifiability
20. Based on family life cycle segmentation, a cutting-edge fashion designer will most likely be
successful in targeting ________ .
a. Marge, an 80-year-old widowed grandmother
b. Tim, a 65-year-old married man with no children
c. Brianna, a 45-year-old married mother of three
d. Pierre, an unmarried 25-year-old graphic designer