Kotler-Chapter-8-MCQ PDF

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Chapter 8 Identifying Market Segments and Targets 1) Which of the following statements about market segmentation is true? D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. 2) Establishing and communicating the distinctive benefit(s) of the company's market offering, for each target segment is called ________. B) market positioning 3) The process of selecting one or more market segments to enter is called ________. A) market targeting 4) A ________ consists of a group of customers who share a similar set of needs and wants. D) market segment 5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. D) geographic 6) When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? E) grassroots marketing 7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________. B) customer differences 8) If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation. C) geographic 9) If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoororiented groups, he or she is segmenting on the basis of ________. D) psychographic lifestyle 10) Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________. C) benefits 11) If a marketing researcher uses such names (categories) as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters. A) PRIZM 12) Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. C) age 13) According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles. B) beltway boomers 14) According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urbane couples in America's fast-growing cities. Concentrated in a handful of metros such as Las

Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates. C) cosmopolitans 15) According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars-from juice to coffee to microbrew. C) young digerati 16) According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants. A) old milltowns 17) Those who favor localized marketing see national advertising as wasteful because ________. D) it fails to address local needs 18) Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage 19) Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika? A) life stage 20) ________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium old luxury brands and are also based on emotions. E) Masstige goods 21) ________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet. C) Old Luxury brand extensions 22) Which of the following statements about Gen Yers is true? A) They are selective, confident, and impatient. 23) Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y. E) online buzz 24) If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market. C) Generation Y 25) As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The American Legacy Foundation is using ________ to reach Generation Y. B) street teams 26) Which of the following statements about Gen Xers is true? D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key. 27) Which of the following statements accurately describes what demographers are calling the "boomboom effect"? D) products that appeal to 21-year-olds also appeal to baby boomers

28) ________ is the science of using psychology and demographics to better understand consumers. A) Psychographics 29) According to the VALS segmentation system, ________ are successful, sophisticated, active, "takecharge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services. A) innovators 30) According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers. C) achievers 31) According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by ________. A) knowledge 32) Kim is a young professional who enjoys snowboarding and going to rock concerts with her friends. According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________. C) experiencer 33) Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system. B) thinkers 34) A hardware store is interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient, who like to work with their hands, or the ________ category. E) makers 35) According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands. D) survivors 36) According to the VALS segmentation system, ________ are considered to be trendy and fun-loving people who are resource-constrained. They favor stylish products that emulate the purchases of those with greater material wealth. A) strivers 37) According to the VALS segmentation system, ________ are conservative, conventional, and traditional people with concrete beliefs. They prefer familiar, U.S.-made products and are loyal to established brands. C) believers 38) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator 39) The key to attracting potential users, or even possibly nonusers, is ________. A) understanding the reasons they are not using 40) The sale of turkeys in the United States is highest in mid-to late November, as people buy turkeys to serve at Thanksgiving. Grocery stores who specifically advertise turkeys at this time of year are segmenting on the basis of ________. E) occasion 41) Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently

came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as ________. C) a shifting loyal 42) When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as ________. A) a switchcer 43) Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. D) user status 44) If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________. C) split loyals 45) Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content. Pete's loyalty status is best described as ________. D) hard-core loyal 46) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. B) split loyals 47) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can help identify the products' strengths. E) hard-core loyals 48) If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? B) demographic variables 49) In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation 50) A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables 51) A marketer is interested in segmenting a business market based on urgency of delivery and the size of the order. Which of the following major segmentation variables would the marketer most likely use to assist with the task? B) situational factors 52) A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would the marketer most likely use to assist with the task? E) operating variables 53) A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk. C) personal characteristics 54) A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship. B) purchasing approaches 55) A company can be said to have used ________ if the company distinguished among customers buying on the basis of price, service, and quality. B) microsegmentation

56) During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? D) Step 1—needs-based segmentation 57) If an organization's marketing department wished to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, this action would most likely occur in the ________ step of the segmentation process. D) segment "acid test" 58) In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. C) segment attractiveness 59) In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. E) segment identification 60) A ________ consists of two parts: a naked solution and discretionary options. B) flexible market offering 61) According to the ________ criterion for useful market segments, a segment should be the largest possible homogenous group worth going after with a tailored marketing program. B) substantial 62) Anderson and Mervin have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which part contains the product and service elements that all segment members value? A) naked solution 63) If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? D) segment positioning 64) In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and ________. A) the company's objectives and resources 65) To meet the ________ criterion of useful market segments, it must be possible to formulate effective programs for attracting and serving the segments. E) actionable 66) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. D) differentiable 67) Which of the following statements is true about the five forces identified by Michael Porter, that determine the intrinsic long-run attractiveness of a market or market segment? B) A segment is unattractive if buyers possess strong or growing bargaining power. 68) In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. B) mass 69) If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern. A) homogeneous 70) In ________ marketing, the firm operates in several market segments and designs different products for each segment. C) differentiated

71) General Motors, a leading American multinational automaker, sells cars for every purpose, purse, and personality. This is an example of ________ marketing. B) differentiated 72) Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a single sized bottle with the advertising theme "Coke is it," is an example of ________ marketing. E) undifferentiated 73) Marketers usually identify niches by ________. A) dividing a segment into subsegments 74) ________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice. E) Customerization 75) Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration 76) All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration 77) When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________. C) supersegments 78) Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy? B) It diversifies the firm's risk. 79) The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________. C) the product may be supplanted by an entirely new technology 80) With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group. D) market specialization

81) Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace. TRUE Page Ref: 213 Objective: 2 AACSB: Reflective thinking Difficulty: Easy

82) A market segment consists of a group of consumers who share a similar set of needs and wants. TRUE Page Ref: 214 Objective: 2 AACSB: Analytic skills Difficulty: Easy

83) Customer cloning is the practice of identifying the key characteristics of a market segment and then identifying multiple geographic areas where the majority of the population possesses those characteristics. FALSE Page Ref: 214 Objective: 2 Difficulty: Easy

84) Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments. FALSE Page Ref: 215 Objective: 2 AACSB: Analytic skills Difficulty: Easy

85) Local marketing reflects a growing trend called macromarketing. FALSE Page Ref: 214 Objective: 2 AACSB: Reflective thinking Difficulty: Easy

86) A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach. TRUE Page Ref: 216 Objective: 2 AACSB: Analytic skills Difficulty: Easy

87) Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe. FALSE Page Ref: 216 Objective: 2 Difficulty: Easy

88) Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure. TRUE Page Ref: 216 Objective: 2 AACSB: Reflective thinking Difficulty: Easy

89) Life stage defines a person's age. FALSE Page Ref: 217 Objective: 2 Difficulty: Easy

90) Income always predicts the best customers for a given product. FALSE Page Ref: 218 Objective: 2 Difficulty: Easy

91) Members of the same generational cohort share the same major cultural, political, and economic experiences and have similar outlooks and values. TRUE Page Ref: 219 Objective: 2 AACSB: Reflective thinking Difficulty: Easy

92) Baby boomers are consumers who have been "wired" almost from birth—playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones. FALSE Page Ref: 219 Objective: 2 Difficulty: Easy

93) Members of Generation Y are generally open to overt branding practices and a "hard sell," making product placements in computer and video games a popular way to reach this cohort. FALSE Page Ref: 220 Objective: 2 Difficulty: Easy

94) Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and individualistic. FALSE Page Ref: 221 Objective: 2 Difficulty: Easy

95) Baby boomers are also less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships. TRUE Page Ref: 221 Objective: 2 Difficulty: Easy

96) The norms, language nuances, buying habits, and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy, rather than added as an afterthought. TRUE Page Ref: 222 Objective: 2 Difficulty: Easy

97) Psychographics is the science of using psychology and demographics to better understand consumers. TRUE

Page Ref: 225 Objective: 2 AACSB: Analytic skills Difficulty: Easy

98) People in the same demographic group generally exhibit similar psychographic profiles. FALSE Page Ref: 226 Objective: 2 Difficulty: Easy

99) The main dimensions of the VALS segmentation framework are consumer motivation and consumer resources. TRUE Page Ref: 226 Objective: 2 Difficulty: Easy

100) In the VALS segmentation system, thinkers are characterized as being successful, sophisticated, active, "take-charge" people with high self-esteem. FALSE Page Ref: 226 Objective: 2 AACSB: Analytic skills Difficulty...