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Marketing: An Introduction, 6e (Armstrong et al.) Chapter 7 Segmentation, Targeting, and Positioning 1) Which of the following best describes market segmentation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy Answer: A Diff: 1 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1 2) Which of the following best describes market target? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy Answer: C Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1 3) Which of the following best describes positioning? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's mind that the brand or company should occupy relative to the competition Answer: E Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1

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4) Which of the following best describes differentiation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy Answer: D Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1 5) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation Answer: C Diff: 2 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1 6) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C Diff: 2 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1 7) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached ________ and effectively with products and services that match their unique needs. A) efficiently B) slowly C) intensely D) indirectly E) directly Answer: A Diff: 2 Type: MC Page Ref: 240 Skill: Concept Objective: 7-2 2 Copyright © 2017 Pearson Canada Inc.

8) There ________ to segment a market. A) is one single best way B) is no single way C) is not a most effective way D) are limited ways E) are four ways Answer: B Diff: 2 Type: MC Page Ref: 240 Skill: Concept Objective: 7-2 9) Your firm's research reveals that consumers have different tastes in different cities. As a result, management has decided to localize its products and services to meet local market demands. This is an example of ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image Answer: A Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-2 10) Pendergraff Pet Supplies divides the pet market according to the owners' ethnicity, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioural C) lifestyle D) demographic E) psychographic Answer: D Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2

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11) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) lifestyle C) psychographic D) behavioural E) geographic Answer: A Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 12) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments B) create more easily reached segments C) do not involve stereotypes D) tend to be easier to identify and measure E) involve fewer attributes to consider Answer: D Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 13) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) geographic B) age and life cycle C) psychographic D) behavioural E) usage rate Answer: B Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 14) Marketers must be careful to guard against ________ when using age and life cycle segmentation. A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias Answer: B Diff: 3 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 4 Copyright © 2017 Pearson Canada Inc.

15) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A) age and life cycle B) gender C) behaviour D) psychographic E) geographic Answer: B Diff: 2 Type: MC Page Ref: 242-243 Skill: Concept Objective: 7-2 16) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) life cycle C) occasion D) usage rate E) benefits sought Answer: B Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 17) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioural B) psychographic C) age and life cycle D) demographic E) geographic Answer: A Diff: 2 Type: MC Page Ref: 245 Skill: Concept Objective: 7-2

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18) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) demographic B) psychographic C) occasion D) impulse E) emergency Answer: C Diff: 2 Type: MC Page Ref: 245 Skill: Concept Objective: 7-2 19) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rate C) benefit D) behaviour E) loyalty status Answer: A Diff: 1 Type: MC Page Ref: 247 Skill: Concept Objective: 7-2 20) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate Answer: B Diff: 1 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2

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21) By studying its less loyal buyers, a company can detect which brands are most ________ with its own. A) competitive B) used C) often overlooked D) similar E) complementary Answer: A Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2 22) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing Answer: C Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2 23) Consumer and business marketers use many of the same variables to segment markets. Business marketers use which of the following? A) operational behaviours B) purchasing plans C) situational factors D) product characteristics E) brand personalities Answer: C Diff: 2 Type: MC Page Ref: 250 Skill: Concept Objective: 7-2 24) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behaviour D) age and life-cycle; psychographic E) income; usage rate Answer: C Diff: 2 Type: MC Page Ref: 250 Skill: Concept Objective: 7-2 7 Copyright © 2017 Pearson Canada Inc.

25) International Drilling Company is a business-to-business company that segments its foreign markets by the income levels of a country's population. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors Answer: D Diff: 1 Type: MC Page Ref: 251 Skill: Concept Objective: 7-2 26) Wealth TV is a channel that segments its market based on the household income levels of television viewers. This firm segments on what basis? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors Answer: B Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2 27) If Wealth TV decides to segment its market based on the social class of television viewers, what segmentation approach is Wealth TV using? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors Answer: C Diff: 2 Type: MC Page Ref: 244 Skill: Concept Objective: 7-2 28) In Canada, cranberry sauce sales spike right before Thanksgiving, Christmas, and other holidays. A segmentation that seems to describe this phenomenon is ________. A) social class B) personality C) occasion D) readiness stage E) education Answer: C Diff: 2 Type: MC Page Ref: 245 Skill: Concept Objective: 7-2 8 Copyright © 2017 Pearson Canada Inc.

29) Lexus targets wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation Answer: A Diff: 1 Type: MC Page Ref: 251 Skill: Concept Objective: 7-2 30) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2 31) When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable Answer: C Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2 32) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2 9 Copyright © 2017 Pearson Canada Inc.

33) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2 34) To evaluate the different market segments your company is serving, you would look at which of the following factors? A) consumer size B) product growth C) segment structural attractiveness D) company culture E) company competitors Answer: C Diff: 3 Type: MC Page Ref: 252 Skill: Concept Objective: 7-3 35) Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should be on the list? A) profitability B) powerful suppliers to control prices C) many substitute products D) competition with superior resources E) financial resources Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-3

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36) Which of the following is one of the reasons a segment would be less attractive to a company? A) no competitors B) substitute products C) concentrated market D) does not match company's long run objectives E) power of suppliers Answer: D Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 37) Purrsonals.com calls itself "the cat lover's social network." Which targeting approach best describes the site's approach? A) undifferentiated marketing B) differentiated marketing C) mass marketing D) niche marketing E) substitute marketing Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3 38) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; offer new products E) identify behaviours; understand spending power Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 39) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market Answer: B Diff: 1 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 11 Copyright © 2017 Pearson Canada Inc.

40) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing Answer: A Diff: 1 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 41) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) individual D) mass E) niche Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 42) Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual Answer: A Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3 43) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3 12 Copyright © 2017 Pearson Canada Inc.

44) Procter & Gamble sells six brands of laundry detergent in North America, each designed for one of six laundry type segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3 45) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; the local market Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3 46) It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3

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47) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; desired by B) unimportant to; overlooked by C) too large; undesirable to D) unknown by; desired by E) disappointed by; geographically far from Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3 48) Today, companies are ________ because they have the tools to interact on a one-to-one basis with masses of customers. A) in malls in major cities B) in mail-order catalogs C) hyper-customizing D) near major competitors E) far from competitors Answer: C Diff: 1 Type: MC Page Ref: 257 Skill: Concept Objective: 7-3 49) Which of the segmenting strategies makes the most sense when a company introduces a new product? A) concentrated B) mass C) differentiated D) individual marketing E) multiple-segment Answer: A Diff: 2 Type: MC Page Ref: 257 Skill: Concept Objective: 7-3

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50) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) micro C) variable D) mass E) undifferentiated Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3 51) ________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated C) Niche D) Local E) Variable Answer: D Diff: 1 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3 52) Which of the following is an extreme form of market segmentation? A) segmented strategy B) micromarketing C) differentiated marketing D) mass marketing E) undifferentiated marketing Answer: B Diff: 3 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3 53) Which of the following is a drawback of local marketing? A) It can drive up manufacturing agents. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics opportunities. D) A brand's overall image will be enhanced through added variation. E) Supporting technologies are not cost-effective. Answer: B Diff: 3 Type: MC Page Ref: 256 Skill: Concept Objective: 7-3 15 Copyright © 2017 Pearson Canada Inc.

54) Under what circumstances would local marketing likely be the most effective? A) when pronounced differences in psychographics are present B) when pronounced differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present D) when regional demographics and lifestyles are similar E) when pronounced similarities in psychographics are present Answer: C Diff: 2 Type: MC Page Ref: 256 Skill: Concept Objective: 7-3 55) When Walmart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing Answer: C Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3 56) When a company interacts one-on-one with large numbers of customers to create customerunique value by designing products and services tailor-made to individual needs, it is following ________. A) concentrated marketing B) mass marketing C) mass customization D) undifferentiated marketing E) localization Answer: C Diff: 2 Type: MC Page Ref: 256 Skill: Concept Objective: 7-3 57) Mass customization has made relationships with customers ________. A) irrelevant B) more important than ever C) less profitable D)...