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Test bank consumer behavior 10e schiffman kanuk chapter 03

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Examples of facts include ________.A demographics, gender, and benefits wanted B usage rate, level of involvement and psychographics C personality traits, lifestyles, and family life cyc

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Consumer Behavior, 10e (Schiffman/Kanuk)

Chapter 3 Market Segmentation and Strategic Targeting

1) The process of dividing a market into distinct subsets of consumers with common needs or characteristics is known as

Objective: 3.1: Understand why market segmentation is essential

2) When Henry Ford introduced the Model T, the first affordable, mass-produced car, he stated that consumers "can have a car in any color they want, as long as it is black." Offering the same product to all consumers in this fashion is known as

Diff: 2 Page Ref: 52

AACSB: Analytic Skills

Skill: Application

Objective: 3.1: Understand why market segmentation is essential

3) The of a product or service is the value proposition, expressed through promotion, stating the product's or service's capability to deliver specific benefits corresponding to

consumers' unfulfilled needs

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4) Which of the following is most likely to successfully follow a mass-marketing strategy?A) a company that produces personal computers

B) a company that runs a chain of discount grocery stores

C) a company that manufactures custom stereo equipment

D) a private university

E) a company that produces agricultural products

Answer: E

Diff: 2 Page Ref: 54

AACSB: Reflective Thinking

Skill: Application

Objective: 3.1: Understand why market segmentation is essential

5) The primary advantage of mass marketing is

A) it costs less

B) it leads to wider customer satisfaction

C) it leads to the production of products that better meet the needs of individual segments of the market

D) it reaches more people

E) it more accurately describes the product being promoted

Answer: A

Diff: 3 Page Ref: 54

Skill: Concept

Objective: 3.1: Understand why market segmentation is essential

6) Most marketers prefer to target consumer segments that are relatively

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7) Consumers' characteristics can be classed as either facts or cognitions In this context, facts can be determined from direct questioning and categorized by a single objective measure Examples of facts include .

A) demographics, gender, and benefits wanted

B) usage rate, level of involvement and psychographics

C) personality traits, lifestyles, and family life cycle

D) education, usage situation, and social class

E) level of involvement, awareness of product alternatives, and benefits wanted

Answer: D

Diff: 3 Page Ref: 58, Figure 3.3

AACSB: Analytic Skills

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

8) Consumers' characteristics can be classed as either facts or cognitions In this context,

cognitions are abstract, can be determined only through more complex questioning, and

generally have no single, universal definitions Examples of cognitions include .A) demographics, gender, and benefits wanted

B) usage rate, level of involvement and psychographics

C) personality traits, lifestyles, and family life cycle

D) education, usage situation, and social class

E) level of involvement, awareness of product alternatives, and benefits wanted

Answer: E

Diff: 3 Page Ref: 58, Figure 3.3

AACSB: Analytic Skills

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

9) Consumers' characteristics can be classed as either consumer-rooted or consumption-specific

In this context, consumer-rooted features stem from the consumer's physical, social, and

psychological characteristics Examples of consumer-rooted features include

A) demographics, gender, and benefits wanted

B) usage rate, level of involvement and psychographics

C) personality traits, lifestyles, and family life cycle

D) education, usage situation, and social class

E) level of involvement, awareness of product alternatives, and benefits wanted

Answer: C

Diff: 3 Page Ref: 58, Figure 3.3

AACSB: Analytic Skills

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

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10) Consumers' characteristics can be classed as either consumer-rooted or specific In this context, consumption-specific features are attitudes and preferences toward specific products or buying situations Examples of consumption-specific features include .

consumption-A) demographics, gender, and benefits wanted

B) usage rate, level of involvement and psychographics

C) personality traits, lifestyles, and family life cycle

D) education, usage situation, and social class

E) level of involvement, awareness of product alternatives, and benefits wanted

Answer: B

Diff: 3 Page Ref: 58, Figure 3.3

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

11) In reference to consumer characteristics, can be determined from direct

questioning and categorized by a simple objective measure, whereas are abstract and can be determined only through more complex questioning

A) consumption-specific features; consumer-rooted features

Objective: 3.3: Understand the bases for segmenting consumers

12) In reference to consumer characteristics, stem from consumer's physical, social, and psychological characteristics, whereas are a function of usage behaviors

A) consumption-specific features; consumer-rooted features

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13) Another term for psychographic characteristics is _

Objective: 3.3: Understand the bases for segmenting consumers

14) Age, gender, and education are bases of which of the following types of segmentation? A) geographic segmentation

Objective: 3.3: Understand the bases for segmenting consumers

15) consist(s) of activities, interests, and opinions, which are mostly attitudes toward various issues, and cannot be classified according to standardized definitions

Objective: 3.3: Understand the bases for segmenting consumers

16) Trends in the markets, such as shifts in age, gender, and income distribution, are often detected through information

Diff: 3 Page Ref: 58

AACSB: Reflective Thinking

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

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17) information is often the most accessible and cost-effective way to identify a target market

Objective: 3.3: Understand the bases for segmenting consumers

18) The largest age segment in the U.S population is , 76 million consumers born between 1946 and 1964

Diff: 2 Page Ref: 60

AACSB: Multicultural and Diversity

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

19) The fact that salsa outsells ketchup in the southwest, and that Jif peanut butter is preferred in the Midwest over Skippy, is an example of why segmentation is used

Objective: 3.3: Understand the bases for segmenting consumers

20) Traditionally, the has been the focus of most marketing efforts

A) mother

B) family

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21) The is a composite variable based explicitly on marital and family status but implicitly reflects relative age, income, and employment status

Objective: 3.3: Understand the bases for segmenting consumers

22) is felt by many marketers to be a strong indicator of the ability to pay for a

Objective: 3.3: Understand the bases for segmenting consumers

23) As a base for market segmentation, is/are commonly computed as a weighted index of education, occupation, and income

Objective: 3.3: Understand the bases for segmenting consumers

24) implies a hierarchy in which individuals in the same class generally have the samedegree of status, whereas members of other classes have either higher or lower status

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25) The most popular use of geography in strategic targeting is – a hybrid

segmentation scheme based on the premise that people who live close to one another are likely tohave similar financial means, tastes, preferences, lifestyles, and consumption habits

Objective: 3.3: Understand the bases for segmenting consumers

26) Lifestyles, also known as , consist of activities, interests, and opinions

Objective: 3.3: Understand the bases for segmenting consumers

27) It is often stated that while determine consumers' need for products and the ability

to buy them, and consumers' values explain buyers' purchase decisions and the choicesthey make within the buying options available to them

A) benefit segmentation; demographics

Diff: 3 Page Ref: 66

AACSB: Reflective Thinking

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

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28) Psychographic studies generally use to gauge respondents' level of agreement or disagreement with statements selected from a psychographic inventory.

A) semantic differential scales

B) Likert scales

C) behavior intention scales

D) rank order scales

E) focus groups

Answer: B

Diff: 3 Page Ref: 66

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

29) The most popular segmentation system combining lifestyle and values is

Objective: 3.3: Understand the bases for segmenting consumers

30) The VALS typology classifies the American adult population into eight distinctive subgroupsbased on their motivations and level of resources The three primary motivations include

A) ideals, education, and achievement

B) ideals, achievement, and self-expression

C) knowledge, education, and self-expression

D) independence, aptitude, and achievement

E) aptitude, ideals, and self-expression

Answer: B

Diff: 3 Page Ref: 67

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

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31) In the VALS typology, are motivated by ideals and tend to have low resources They are generally slow to change and technology averse, and tend to prefer familiar products and established brands.

Objective: 3.3: Understand the bases for segmenting consumers

32) In the VALS typology, achievers are motivated by achievement and tend to have high resources They have goal-oriented lifestyles that center on family and career This segment tends to prefer

A) familiar products and established brands

B) value over luxury, and tend to buy basic products

C) products that offer durability, functionality, and value

D) products that reflect cultivated tastes for upscale niche products and services

E) premium products that demonstrate success to their peers

Answer: E

Diff: 3 Page Ref: 68, Table 3.7

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

33) In the VALS typology, thinkers are motivated by ideals and tend to have high resources They tend to be well educated and actively seek out information in the decision-making process This segment tends to prefer

A) familiar products and established brands

B) value over luxury, and tend to buy basic products

C) products that offer durability, functionality, and value

D) products that reflect cultivated tastes for upscale niche products and services

E) premium products that demonstrate success to their peers

Answer: C

Diff: 3 Page Ref: 68, Table 3.7

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

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34) In the VALS typology, makers are motivated by self-expression and tend to have low

resources They choose hands-on constructive activities and spend leisure time with family and close friends This segment tends to prefer

A) familiar products and established brands

B) value over luxury, and tend to buy basic products

C) products that offer durability, functionality, and value

D) products that reflect cultivated tastes for upscale niche products and services

E) premium products that demonstrate success to their peers

Answer: B

Diff: 3 Page Ref: 68, Table 3.7

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

35) In the VALS typology, innovators are successful, take-charge people with high self-esteem Because they have such abundant resources, they exhibit all three primary motivations in varyingdegrees They are change leaders and are the most receptive to new ideas and technologies Thissegment tends to prefer

A) familiar products and established brands

B) value over luxury, and tend to buy basic products

C) products that offer durability, functionality, and value

D) products that reflect cultivated tastes for upscale niche products and services

E) premium products that demonstrate success to their peers

Answer: D

Diff: 3 Page Ref: 68, Table 3.7

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

36) Teenagers around the world tend to want products that are trendy, entertaining, and image oriented, regardless of where those teens live This is an example of

A) a usage rate segment

Diff: 2 Page Ref: 70

AACSB: Multicultural and Diversity

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

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37) Segmenting on the basis of cultural heritage can be useful because members of the same culture tend to

A) share the same values, beliefs, and customs

B) speak the same language

C) live in the same areas

D) have similar incomes

E) be loyal to the same brands

Answer: A

Diff: 2 Page Ref: 69

AACSB: Multicultural and Diversity

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

38) Marketers of many products such as soup, laundry detergent, beer, and dog food have found that a relatively small group of heavy users accounts for a disproportionately large percentage of the total product usage Targeting these heavy users specifically is an example of .A) benefit-based segmentation

B) demographic segmentation

C) cross-cultural segmentation

D) usage rate segmentation

E) usage situation segmentation

Answer: D

Diff: 2 Page Ref: 70

AACSB: Reflective Thinking

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

39) The theory behind geographic segmentation is that

A) people who have the same activities, interests, and objectives will purchase the same productsB) people with the same cultural heritage will have similar needs and values

C) people who live in the same area share some similar needs and wants that differ from those of people living in other areas

D) people who speak the same language have very similar needs and values

E) all people living in the same country will have very similar needs and can be best served by a single advertising campaign

Answer: C

Diff: 3 Page Ref: 62

AACSB: Analytic Skills

Skill: Concept

Objective: 3.3: Understand the bases for segmenting consumers

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40) Beyond flavor and the presence or absence of sugar, Nicorette offers a gum that will whiten your teeth while satisfying your nicotine craving and helping you quit smoking This gum has been positioned on the basis of .

Diff: 2 Page Ref: 72

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

41) segmentation differentiates among heavy users, medium users, light users, and nonusers of a specific product, service or brand

Objective: 3.3: Understand the bases for segmenting consumers

42) Research has shown that 25 to 35 percent of beer drinkers account for more than 70 percent

of all beer consumed This is an example of segmentation

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43) Whether or not consumers need to be informed about a product relates to consumers'

Objective: 3.3: Understand the bases for segmenting consumers

44) The greeting card industry capitalizes on occasions to sell products; this is a perfect example

Diff: 3 Page Ref: 71

AACSB: Analytic Skills

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

45) Campbell's Soup has divided the domestic market into more than 20 regions, each with its own sales managers that develop specific advertising and promotional campaigns geared to local market needs and conditions This is an example of

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46) represent unfilled consumer needs and can be used to develop a positioning approach

Objective: 3.3: Understand the bases for segmenting consumers

47) Advertising for Hefty One Zip Bags emphasize "peace of mind." Eclipse gum stresses "fresh breath." They are two companies trying to attract customers on the basis of

Diff: 2 Page Ref: 72

AACSB: Reflective Thinking

Skill: Application

Objective: 3.3: Understand the bases for segmenting consumers

48) The market for toothpaste is a classic case of successful segmentation If

consumers are socially active, they want a toothpaste that can deliver white teeth and fresh breath; if they smoke, they want one that fights stains; if they want to prevent disease, they want one that will fight germs

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