Kotler mcqs with answers for help PDF

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Chapter 8: Identifying Market Segments and Targets

GENERAL CONCEPT QUESTIONS Multiple Choice 1. Instead of scattering their marketing effort (a “shotgun” approach), many companies are now embracing target marketing where the focus is on those consumers that they have the greatest chance of satisfying (a ________ approach) with their products and services. a. “rifle” b. “focused” c. “niche” d. “macro” e. “micro” Answer: a Page: 240 Level of difficulty: Easy 2. In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers. a. group b. mass c. general d. segmented e. differentiated Answer: b Page: 240 Level of difficulty: Medium 3. The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins. a. niche b. micro c. macro d. differentiated e. mass Answer: e Page: 240 Level of difficulty: Medium

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4. A ________ consists of a group of customers who share a similar set of needs and wants. a. market target b. market group c. market slice d. market segment e. market level Answer: d Page: 240 Level of difficulty: Medium 5. A ________ consists of two parts: a naked solution and discretionary options. a. differentiated market offering b. flexible market offering c. rigid market offering d. vertical market offering e. horizontal market offering Answer: b Page: 241 Level of difficulty: Hard 6. 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 b. heterogeneous c. diffused d. clustered e. scattered Answer: a Page: 241 Level of difficulty: Medium 7. Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stainremoval, et cetera. Which of the following preferences pattern would most likely apply to P&G’s method of response to market needs? a. Homogeneous preferences. b. Diffused preferences. c. Clustered preferences. d. Psychological preferences. e. Cultural preferences. Answer: c Page: 242 Level of difficulty: Medium 8. Marketers usually identify niches by ________. a. dividing a segment into subsegments b. conducting VALS tests c. allowing consumers to gravitate toward product brands d. examining the demographics section of The Handbook of Marketing e. producing products that can be used in a variety of ways Answer: a Page: 242 Level of difficulty: Medium

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9. A niche is characterized as being all of the following EXCEPT ________. a. the customers in the niche have a distinct set of needs b. the customers will pay a premium to the firm that satisfies their needs c. the niche is not likely to attract other competitors d. the customers generally have smaller amounts of income e. the nicher gains certain economies through specialization Answer: d Page: 242 Level of difficulty: Medium 10. Which of the following has greatly facilitated niche marketing? a. The Internet b. Globalization c. Industrialization d. Recession e. Excessive demand Answer: b Page: 243 Level of difficulty: Medium 11. 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? a. Differentiated marketing b. Consumer marketing c. Instructional marketing d. Partner marketing e. Grassroots marketing Answer: e Page: 244 Level of difficulty: Medium 12. According to thoughts expressed by Pine and Gilmore about a new economic era that is rapidly approaching, if you charge for the time customers spend with you, then and only then are you in the ________ business. a. niche b. grassroots c. experience d. service e. goods Answer: c Page: 245 Level of difficulty: Hard 13. Through customer experience management (CEM), brands can create five different types of experiences: sense, feel, think, relate, and ________. a. remembering b. forgetting c. simulation d. act e. bargain Answer: d Page: 245 Level of difficulty: Medium

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Chapter 8: Identifying Market Segments and Targets

14. ________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice. a. Consumptionization b. Viral marketing c. Virtual marketing d. Regionalization e. Customerization Answer: e Page: 246 Level of difficulty: Medium 15. Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations. a. gender b. income c. cultural d. interest e. behavioral Answer: e Page: 247 Level of difficulty: Medium 16. If a marketer decides that segmenting a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation. a. demographic b. psychographic c. geographic d. cultural e. social class Answer: c Page: 247 Level of difficulty: Easy 17. According to established methods of segmenting markets, all of the following would an appropriate segment category if the family life cycle was the segmentation base ACCEPT ________. a. young, single b. male, female c. young, married d. older, married, no children under 18 e. young, married, youngest child 6 or over Answer: b Page: 248 Level of difficulty: Medium

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Chapter 8: Identifying Market Segments and Targets

18. A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets. a. personality b. behavioral occasions c. user status d. psychographic lifestyle e. readiness stage Answer: d Page: 248 Level of difficulty: Medium 19. PRIZM (Potential Rating Index by Zip Markets) identifies clusters of consumers based on a variety of characteristics such as education and affluence. Which of the following clusters would match to a consumer group that 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 are still pursuing kid-centered lifestyles. a. The cosmopolitans b. Beltway boomers c. Young digerati d. Winner’s circle e. Blue bloods Answer: b Page: 249 Level of difficulty: Hard 20. Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika? a. Life stage b. Benefits c. Age segment d. User segment e. Occasion segment Answer: a Page: 250 Level of difficulty: Medium 21. Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on ________. a. income b. occupation c. socialization d. heredity e. globalization Answer: c Page: 250 Level of difficulty: Medium

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22. Which of the following American Generations is characterized as being great acquisitors and are value- and cause-driven despite indulgences and hedonism? a. GI generation b. Silent generation c. Baby boomers d. Generation X e. Millennials Answer: c Page: 252 Level of difficulty: Hard 23. ________ is the science of using psychology and demographics to better understand consumers.

a. Psychographics b. Segmentation c. Clustering d. Demographics e. Social psychology Answer: a Page: 252

Level of difficulty: Medium

24. To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who “get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family. Which of the following techniques for reaching Generation Y are the Foo Fighters using? a. Student ambassadors b. Unconventional sports c. Cool events d. Computer games e. Online buzz Answer: e Page: 253 Level of difficulty: Medium 25. In 2003, 4.1 million Americans turned 21. An interesting fact is that the share of college students who plan to move back home after graduation is ________. a. 10 percent b. 25 percent c. 50 percent d. 60 percent e. 75 percent Answer: d Page: 253 Level of difficulty: Hard

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Chapter 8: Identifying Market Segments and Targets

26. According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, “take-charge” people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services. a. innovators b. thinkers c. achievers d. experiencers e. believers Answer: a Page: 254 Level of difficulty: Hard 27. According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favorite brands. a. believers b. strivers c. makers d. survivors e. experiencers Answer: d Page: 254 Level of difficulty: Medium 28. A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing? a. Initiator b. Influencer c. Decider d. Buyer e. Gatekeeper Answer: a Page: 255 Level of difficulty: Easy 29. With respect to occasion segmentation, Christmas, Valentine’s Day, and ________ account for just over half of gifters’ budgets. a. Halloween b. Father’s Day c. Mother’s Day d. Thanksgiving e. Independence Day Answer: c Page: 256 Level of difficulty: Medium

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30. Mobil identified five different benefit segments for which products and services could be designed. ________ (27 percent of the market) shops Mobil outlets for fast fuel, fast service, and fast food. a. Road warriors b. Generation F c. True blues d. Home bodies e. Price shoppers Answer: b Page: 256 Level of difficulty: Hard 31. With respect to user status (a segmentation possibility), ________ tend to focus on attracting potential users because they have the most to gain. a. smaller firms b. niche firms c. followers d. aggressive specialists e. market-share leaders Answer: e Page: 256 Level of difficulty: Hard 32. If a market is segmented according to light, medium, and heavy product users, the marketer segmenting this market is using the ________ as the means to segment. a. user status b. usage rate c. buyer-readiness stage d. occasion e. benefit Answer: b Page: 256 Level of difficulty: Easy 33. 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 ________. a. switchers b. shifting loyals c. split loyals d. hard-core loyals e. anti-loyals Answer: c Page: 256 Level of difficulty: Easy 34. A company can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive with its own. a. hard-core loyals b. split loyals c. shifting loyals d. switchers e. anti-loyals Answer: b Page: 257 Level of difficulty: Hard

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35. All of the following have been designated as groups that might be found using attitude as the primary segmentation variable EXCEPT ________. a. synergistic b. enthusiastic c. positive d. indifferent e. hostile Answer: a Page: 257 Level of difficulty: Medium 36. A snack chip manufacturer is concerned about consumers leaving its brand and going to competitive alternatives. Which of the following groups (based on strength of commitment) would be most likely to leave the company’s offering and go somewhere else for snack products? a. Convertible b. Shallow c. Average d. Entrenched e. Hard rocks Answer: a Page: 258 Level of difficulty: Medium 37. If a consumer group is designated based on their “balance of disposition,” the ________ group can be described as one that is made up of nonusers who are as attracted to a competing brand as they are to their current brands. a. strongly unavailable b. weakly unavailable c. ambivalent d. available e. desirable Answer: c Page: 258 Level of difficulty: Medium 38. If a marketer is seeking to segment a business market, which of the following variables is generally felt to be important enough by marketers to place it first among the list of other variables that can be used in segmentation process? a. Personal characteristics b. Demographic c. Situational factors d. Operating variables e. Purchasing approaches Answer: b Page: 258 Level of difficulty: Hard

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Chapter 8: Identifying Market Segments and Targets

39. A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would most likely be used by the marketer to assist with the task? a. Demographic b. Purchasing approaches c. Situational factors d. Personal characteristics e. Operating variables Answer: e Page: 259 Level of difficulty: Hard 40. 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. a. situational factors b. purchasing approaches c. personal characteristics d. operating variables e. demographics Answer: c Page: 259 Level of difficulty: Medium 41. A company can be said to have used ________ if the company distinguished customers buying on the basis of price, service, and quality. a. macrosegmentation b. microsegmentation c. strategic segmentation d. global segmentation e. short-term segmentation Answer: b Page: 260 Level of difficulty: Hard 42. Business buyers seek different bundles based on their stage in the purchase decision process. ________ are customers who are starting their purchasing relationship and they want easy-to-read manuals, hot lines, high levels of training, and knowledgeable sales reps. a. First-time prospects b. Sophisticates c. Global partners d. Trend-setters e. Novices Answer: e Page: 260 Level of difficulty: Hard

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43. If your marketing department established a priority in reaching solution-oriented customers (e.g., those that want value through more benefits and advice), ________ would be the best means for connecting with these customers. a. transaction selling b. consultative selling c. enterprise selling d. dual selling e. psychological selling Answer: b Page: 261 Level of difficulty: Medium 44. 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? a. Step 2—segment identification b. Step 3—segment attractiveness c. Step 6—segment “acid test” d. Step 1—needs-based segmentation e. Step 7—marketing-mix strategy Answer: d Page: 261 Level of difficulty: Medium 45. 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. a. needs-based segmentation b. segment identification c. segment profitability d. segment “acid test” e. marketing-mix strategy Answer: d Page: 261 Level of difficulty: Hard 46. To be useful, market segments must rate favorably on five key criteria. In the ________ criterion, effective programs can be formulated for attracting and serving the segments. a. measurable b. substantial c. accessible d. differentiable e. actionable Answer: e Page: 262 Level of difficulty: Medium

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Chapter 8: Identifying Market Segments and Targets

47. In evaluating different market segments, the firm must look at two factors: the segment’s overall attractiveness and ________. a. company’s objectives and resources b. the product to be sold c. the purchasing process d. competition’s strategies e. the global nature of the product Answer: a Page: 262 Level of difficulty: Medium 48. 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 b. selective specialization c. product specialization d. market specialization e. full market coverage Answer: a Page: 262 Level of difficulty: Easy 49. 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 b. selective specialization c. product specialization d. market specialization e. full market coverage Answer: a Page: 262 Level of difficulty: Medium 50. When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting what are called ________. a. market mavens b. strategic segments c. supersegments d. occasion segments e. psychodemographic segments Answer: c Page: 262 Level of difficulty: Hard 51. Which of the following best represents the chief advantage of pursuing a multisegment strategy? a. It makes the company almost bullet proof to competitors’ actions. b. It diversifies the firm’s risk. c. It creates synergy between markets. d. It is a low cost strategy. e. It treats all buyers the same and, therefore, lowers promotion costs. Answer: b Page: 262 Level of difficulty: Medium

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52. The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________. a. no synergy exists b. logistics can become a nightmare c. the product may be supplanted by an entirely new technology d. competitors can easily copy any new product introductions e. e-commerce becomes difficult for the company Answer: c Page: 263 Level of difficulty: Hard 53. With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group. a. single-segment concentration b. selective specialization c. product specialization d. market specialization e. full market coverage Answer: d Page: 263 Level of difficulty: Easy 54. The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing. a. undifferentiated b. logistical c. psychological d. niche e. macromarketing Answer: a Page: 263 Level of difficulty: Easy 55. In ________ marketing, the firm operates in several market segments and designs different products for each segment. a. segmented b. undifferentiated c. differentiated d. geodemographic e. niche Answer: c Page: 263 Level of difficulty: Easy 56. The best way to manage multiple segments is to appoint ________ with sufficient authority and responsibility for building the segment’s business. a. a product champion b. segment managers c. promotion managers d. strategic managers e. mid-level managers Answer: b Page: 263 Level of difficulty: Easy

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57. All of the following costs are likely to be higher if a marketer pursues a differentiated marketing approach EXCEPT ________. a. product modification costs b. manufacturing costs c. administrative costs d. inventory costs e. pricing costs Answer: e Page: 264 Level of difficulty: Hard 58. ...