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BUS 111
Introduction to Business
Exercise Set 7A
Student Name _____________________________________
Chapter 11- Customer Driven Marketing
(1)
Users of demographic segmentation market by age, gender, hobbies, income, ethnic
background and family life cycle.
(a) True
(b) False
(2)
When Tabasco first introduced its pepper sauce, it used an undifferentiated targeted
strategy, which means it adopted a mass - market philosophy.
(a) True
(b) False
(3)
People in any age group can have arthritis. The primary segmentation variable used by a
drug designed to relieve arthritic symptoms would be __________ .
(a)
geographic
(b)
geodemographic
(c)
psychographic
(d)
benefit
(4)
TravelCenters of America is a chain of truck stops. Many are bigger than small towns.
A typical TravelCenters complex contains a motel, two restaurants, a laundry, a wing of
showers, a sign shop, a CB radio shop, a game room, two TV lounges, a store that rents
DVDs and books - on - tape and a parking lot that can hold 300 big rigs. TravelCenters of
America primarily uses a positioning strategy based on __________ .
(a)
product class
(b)
brand loyalty
(c)
price and quality
(d)
product user
Marketers can use various segmentation bases. Indicate which segmentation base is
being used for the following products. Explain your answer.
(1)
The American Rifleman, a magazine published by the National Rifle Association.
(5)
(2)
Pedigree brand Breathbuster Biscuits to fight bad dog breath.
(3)
PageNet wireless messaging service. Because it was not able to compete on
price when it started operation, it targeted states where there was no wireless
messaging service available.
(4)
Family Dollar Stores. The typical customer at any one of these stores earns less
than $ 25,000 annually.
(5)
Gillette's Mach3 razor for men and its Venus razor for women.
(6)
Use psychographic segmentation to classify the kinds of consumers who would be
interested in the products offered by Nike.
(7)
The 80 / 20 principle is one which holds that 80 percent of all customers generate 20
percent of the demand.
(a) True
(b) False
© Copyright 2013 by P.E.P.
1
BUS 111
(8)
Introduction to Business
Exercise Set 7A
Describe the 6 steps in the Consumer Behavior process.
1.
2.
3.
4.
5.
6.
(9)
Which Consumer behavioral step looks at feedback based on the consumers experience
with the product?
(10)
What are the benefits of Relationship Marketing? Site examples which show how a firm
can establish a positive relationship with a customer.
© Copyright 2013 by P.E.P.
2