chap006-test-bank

In this case, the segmentation approach used by the company is: Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases market

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Chap006 - test bank

Introduction to Marketing (Simon Fraser University)

Chap006 - test bank

Introduction to Marketing (Simon Fraser University)

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Segmentation, Targeting, and Positioning

Multiple Choice Questions

1 What is the first step in the STP process?

A Selecting segmentation bases

B Evaluating segment attractiveness

C Defining mission statement

D Establishing overall strategy

E Selecting the target market

The first step in planning process is to articulate the mission and the objectives of the

company's marketing strategy clearly The segmentation strategy must be consistent with and derived from the firm's mission & objectives

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Learning Objective: 06-01 Describe the bases marketers use to segment a market.

Topic: 06-02 Step 1: Establish Overall Strategy or Objectives

2 Geographic segmentation refers to the segmentation of consumers based on:

A the worth that they get from products or services

B where they live.

C their product preferences

D their level of intelligence

E easily measured, objective characteristics such as age and education

Geographic segmentation organizes customers into groups on the basis of where they live It

is most useful for companies whose products satisfy needs that vary by region

Blooms: Remember

Difficulty: Easy

Topic: 06-03 Step 2: Segmentation Bases

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3 A chainsaw company markets its products only in areas with forests In this case, the segmentation approach used by the company is:

4 A company makes packaged juices for the Canadian market, and different flavours are developed for specific regions In this case, the segmentation approach used by the company is:

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5 A company develops a variety of exotic breads targeted at suburban areas where large families reside, and the demand for easy breakfast options is high In this case, the

segmentation approach used by the company is:

Blooms: Apply

Difficulty: Difficult

6 Jimmy's Own Inc introduces different kinds of snacks for the Asian and European market

In the context of segmentation bases, this is an example of:

Blooms: Understand

Difficulty: Moderate

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7 Of the various methods for segmenting consumers, which of the following is the one that delves into how consumers describe themselves?

Blooms: Remember

Difficulty: Easy

8 A new startup company decided to target Canadians between age of 18 and 35 who use iPhone mobile for their new application Which segmentation base(s) does the company use?

A Demographic and behavioural segmentation

B Geographic, behavioural and psychographic segmentation

C Geographic and behavioural segmentation

D Behavioural, demographic, and geographic segmentation

E Psychographic, behavioural, and demographic segmentation

The company is targeting Canadian (geographic), between age of 18 and 35 (demographic) who use iPhone (behavioural)

Blooms: Apply

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9 A company that sells bags launches a category of bags featuring children's favourite

cartoon characters It also launches a line of stylish travel bags for adults In this case, the segmentation approach used by the company is:

to segment its customer base, it is using demographic segmentation

Blooms: Apply

10 Demographic segmentation refers to the segmentation of consumers based on:

A the worth that consumers get from products or services

B where the consumers live

C how consumers describe themselves

D the consumers' life goals

E the consumers' age, gender, or education.

Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, education, race, occupation, religion, marital status, family size, family life cycle, and home ownership These variables represent the most common means to define segments because they are easy to identify

Blooms: Remember

Difficulty: Easy

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11 A credit card company issues a special card only to those customers who spend more than

$100,000 a year on its other cards In this case, the segmentation approach used by the

12 A sports goods manufacturing company has started creating marketing campaigns to specifically target the female market In this case, the segmentation approach used by the company is:

Demographic segmentation groups consumers according to easily measured, objective

characteristics such as age, gender, income, and education Hence, when the company creates marketing campaigns to specifically target the female market, it is using demographic

segmentation to segment its consumers

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13 Skincare Inc., a company known for its women's care products, starts offering care products specifically developed for single men, with income of 50k or more/year who live in large cities in the US and Canada Which segmentation approach(es) used by the company?

skin-A Geographic, demographic, and behavioural segmentation

B Behavioural and demographic segmentation

C Demographic and geographic segmentation.

D Demographic, benefit and geographic segmentation

E Psychographic and geographic segmentation

Demographics: marital status, gender, and income

14 A lifestyle store deals with expensive and aesthetic products Most of its target customers belong to the elite class of society who want to make a style statement associated with exclusivity In this case, the segmentation approach used by the store is:

Blooms: Apply

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15 An automobile ad is created in such a way that it appeals to people who value

individuality The company aims at grouping customers based on their personality

characteristics This is an example of:

16 A furniture manufacturer deals in furniture with antique designs The furniture mimics the designs used in royal households and provides customers with a means of self-expression People who buy such furniture feel like they are part of a royal family In this case, the

segmentation approach used by the manufacturer is:

Blooms: Apply

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17 Goals for life, not just the goals one wants to accomplish in a day, are called:

Blooms: Remember

Difficulty: Easy

18 Which of the following allows people to describe themselves by using those

characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices?

Blooms: Remember

Difficulty: Easy

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19 The image a person has of himself or herself is called:

Blooms: Remember

Difficulty: Easy

20 An up-and-coming businessman buys a certain brand of apparel This brand is associated with the image of an individual who values exclusivity and style, which is the kind of person the businessman would like to be In the context of psychographic segmentation, the brand is appealing to the businessman's:

Blooms: Apply

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21 Self-respect, self-fulfillment, or a sense of belonging are typically examples of:

Blooms: Remember

Difficulty: Easy

22 How we live our lives to achieve goals is called:

Blooms: Remember

Difficulty: Easy

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23 Which of the following is part of the vertical dimension as established by VALS™?

VALS™ classifies consumers into eight segments in two dimensions On the vertical

dimension, segments are described by their resources, including their income, education, health, energy level, and degree of innovativeness

Blooms: Remember

Difficulty: Easy

24 A company uses a youth icon to endorse its new range of biker glasses The commercial symbolizes youth and freedom An individual who wants to live a life of freedom would be attracted to the ad In the context of psychographic segmentation, the commercial is appealing

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25 Which of the following types of segmentation groups consumers based on the benefits they derive from products or services, their usage rate, their user status, and their loyalty?

Behavioural segmentation groups consumers based on the benefits they derive from products

or services, their usage rate, their user status, and their loyalty Benefit segmentation is a type

of behavioural segmentation

Blooms: Remember

Difficulty: Easy

26 Behavioural segmentation based on when a product or service is purchased or consumed

Blooms: Remember

Difficulty: Easy

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27 Childcare Inc produces baby products It provides product samples to parents-to-be in order to capture a share of their future purchases It has created a website where parents can get expert parenting advice It targets potential user groups who can be converted into heavy users In this case, the company is using:

Blooms: Apply

28 Benefit segmentation refers to the segmentation of consumers based on:

A the worth they get from products or services.

B where they live

C how they describe themselves

D their lifestyle preferences

E easily measured, objective characteristics such as age, gender, income, and education

Benefit segmentation looks at the benefits customers derive from products or services Benefitsegmentation is a type of behavioural segmentation

Blooms: Remember

Difficulty: Easy

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29 Belco, a fast-food chain, targets young males as they account for almost 75 percent of all customers They are called Jumbo customers Belco has segmented its customers on the basis

of usage rate, with the Jumbo customers being the heavy users To segment its customers, Belco is using:

30 Olympic Athletic Wear segments its markets according to the advantages that different consumers seek from its products It has products for consumers who seek style, and it has products for others who seek performance This is an example of:

Blooms: Apply

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31 A toothpaste manufacturer segments its target population based on the four characteristics

of toothpaste that it believes a customer requires: economic worth, medicinal value, cosmetic value, and taste In this case, the segmentation approach used by the manufacturer is:

Blooms: Apply

32 Which of the following best describes loyalty segmentation?

A It refers to the segmentation of consumers based on the worth they get from products or services

B It refers to the segmentation of consumers on the basis of where they live

C It refers to the segmentation of consumers on the basis of how consumers describe

Blooms: Remember

Difficulty: Easy

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33 Makers Shoes often has interesting offers for regular customers These customers are the first to be informed about a new collection Also, when shoes are on sale, they receive a newsletter in which they are given the opportunity to be the first to avail themselves of the special discounts available In this case, the segmentation approach used by the company is:

customers, who are likely to be the most profitable, it is using loyalty segmentation

Blooms: Apply

34 Magas is a business information service provider that helps companies by dividing the consumer market into different consumer segments One such segment consists of

neighbourhoods that are populated by wealthy families People in this segment are more likely to take vacations on cruises and store money in offshore banks To identify this

segment, Magas has used:

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35 The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics is called:

36 In a certain Canadian province, an area is populated by young Haitians who are mainly blue-collared workers as they are unskilled manual labourers They are not highly educated and live in rented apartments However, some Haitians who are college graduates also inhabit this low-income area They are white-collar workers as they have desk jobs Even though there is a difference in income, both the blue-collared workers and white-collared workers share the same lifestyle A company that develops products to serve both groups of people is using:

Blooms: Apply

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37 Which of the following is true of the PSYTE system?

A It refers to the display, in two or more dimensions, of the position of products or brands in the consumer's mind

B It refers to the segmentation that tailors a product or service to suit an individual customer'swants or needs

C It refers to the grouping of all neighbourhoods in Canada into 60 different lifestyles

clusters with specific locations

D It refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences

E It refers to the practice of interacting on a one-to-one basis with many people to create custom-made products or services

Canada Post uses PSYTE cluster profiles for geodemographic segmentation in Canada The PSYTE system groups all neighbourhoods in Canada into 60 different lifestyles clusters with specific locations

Blooms: Remember

Difficulty: Easy

38 Marketers can track and compare sales performance among various clusters in different locations with the help of PSYTE and PRIZM CE, which are:

lifestyle characteristics is called geodemographic segmentation

Blooms: Remember

Difficulty: Easy

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39 The concept of being identifiable as a prerequisite for market segmentation refers to the fact that:

A the customers in a particular segment should react similarly and positively to a firm's offering

B market segments should be accessible to firms through persuasive communications and product distribution

C market segments should be distinct from one another for a firm to be able to design

products or services to meet their needs

D the buying power of consumers should be high enough to generate substantial profits

E market segments should overlap to a great extent to facilitate marketing mix activities

The concept of being identifiable as a prerequisite for market segmentation refers to the fact that market segments should be distinct from one another for a firm to be able to design products or services to meet their needs Firms must ensure that the identified market

segments do not overlap too much, as this would mean that distinct marketing strategies aren'tnecessary to meet segment members' needs

Learning Objective: 06-02 Identify the criteria for determining the attractiveness of a segment and whether it is worth pursuing (targeting) Topic: 06-04 Step 3: Evaluate Segment Attractiveness

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40 The concept of being reachable as a prerequisite for market segmentation refers to the factthat:

A the customers in a market segment should react similarly and positively to a firm's

offering

B market segments should be accessible to firms through persuasive communications and

product distribution

C market segments should be distinct from one another for a firm to be able to design

D the buying power of customers should be high enough to generate substantial profits

The concept of being reachable as a prerequisite for market segmentation refers to the fact that market segments should be accessible to firms through persuasive communications and product distribution Consumers must know the product or service exists, understand what it can do for them, and recognize how to buy it

D the buying power of customers should be high enough to generate substantial profits

For a segmentation strategy to be successful, the customers in a market segment must react similarly and positively to a firm's offering If, through its distinctive competencies, the firm cannot provide products or services to that segment, it should not target it

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42 Mary plans to open a store in a small town north of Ontario to sell apparels, bags, and shoes The primary target market that she considers is females between age of 15 and 50 who live close by and are taller than 6.5 feet (about 2 meters) What is the main issue with this segment?

A The segment is not responsive

B The segment is not identifiable

C The segment is not substantial and profitable

D The segment is not identifiable

E The segment is too broad

This segment size won't be substantial in a small town Therefore, it is not an attractive segment

D the buying power of customers in a market segment should be high enough to generate

substantial returns from the market

E the preferences of customers in a market should overlap to a great extent

The concept of being substantial and profitable as a prerequisite for market segmentation refers to the fact that the buying power of customers in a market segment should be high enough to generate substantial returns from the market Marketers must also focus their assessments on the potential profitability of each segment, both current and future

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44 Customer lifetime value (CLV) refers to the:

A sum total of benefits that a vendor promises a customer will receive in return for the customer's loyalty for his or her lifetime

B strategy for managing a company's interactions with customers, clients, and sales

prospects

C total value of purchases of a customer over a lifetime of patronage.

D tendency of a customer to stick with a brand even when it is priced higher than an

otherwise equal product

E the provision of service to customers before, during, and after a purchase

Customer lifetime value (CLV) refers to the total value of purchases of a customer over a lifetime of patronage CLV helps in evaluating the attractiveness of a particular market segment

A differentiated segmentation value

B undifferentiated segmentation value

C perceptual mapping value

D ideal point value

E customer lifetime value.

Customer lifetime value (CLV) refers to the total value of purchases of a customer over a lifetime of patronage Hence, the total value that the company is likely to receive from its customers over the period of three years of subscription is the CLV

Blooms: Apply

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46 Sam has a roofing company He is planning to target a new segment; cottages in Northern Quebec The segment size in that region is 80,000 houses He believes he could reach 1% adoption in the first year The average selling price for shingles installation in that area is

$6,000 with a profit margin of 25% His fixed cost to target the new segment would be around

$100,000 What would be the segment profit?

Topic: 06-04 Step 3: Evaluate Segment Attractiveness

47 Which of the following is an advantage of using the undifferentiated targeting strategy?

A It helps firms to obtain a bigger share of the market and increase the market for their products overall

B It appeals to more customer segments

C It helps to diversify the business, thereby lowering the company's overall risk

D It is much easier to plan promotional strategies for different products being offered to different segments of the market

E It does away with the need to develop separate strategies for different groups.

Undifferentiated targeting strategy is used by a firm if the product or service it provides is perceived to provide the same benefits to everyone An advantage of using undifferentiated targeting strategy is that it does away with the need to develop separate strategies for differentgroups

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48 Which of the following companies is more likely to use undifferentiated targeting

Blooms: Analyze

Learning Objective: 06-03 Explain the differences among targeting strategies: undifferentiated; differentiated; concentrated; or

micromarketing.

Topic: 06-05 Step 4: Select Target Market

49 A company has launched a milk beverage containing chocolate Since the beverage appeals to all age groups, the company develops a single strategy to attract children,

teenagers, and adults alike In this case, the company is using a(n):

A geographic targeting strategy

B brand repositioning strategy

C perceptual mapping strategy

D undifferentiated targeting strategy.

E ideal point strategy

Undifferentiated targeting strategy is used by a firm if the product or service it provides is perceived to provide the same benefits to everyone In the given scenario, as the company is providing a product that is appealing to everyone, it is using an undifferentiated targeting strategy

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50 Sturdy International sells its helmets to everyone in the market There are no different strategies or products for different groups This is an example of a(n):

A loyalty segmentation strategy

B behavioural segmentation strategy

C geodemographic segmentation strategy

D undifferentiated targeting strategy.

E concentrated targeting strategy

Undifferentiated targeting strategy is used by a firm if the product or service it provides is perceived to provide the same benefits to everyone As Sturdy International targets everyone

in the market, it is using an undifferentiated targeting strategy

micromarketing.

51 The government of Ontario, like other provincial governments, charges the same fee to issue driver license Any citizen who is eligible with get the same card and has to pay the same cost This is an example of a(n):

A geodemographic segmentation strategy

B undifferentiated targeting strategy.

C concentrated targeting strategy

D differentiated targeting strategy

E micromarketing

The service provide the same benefits to everyone and cost the same

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52 Which of the following strategies refers to the marketing strategy a firm can use if the product or service it provides is perceived to provide the same benefits to everyone and there

is no need to develop separate strategies for different groups?

A Distinguished targeting strategy

B Behavioural targeting strategy

C Perceptual mapping strategy

D Undifferentiated targeting strategy

E Ideal point strategy

Undifferentiated targeting strategy is used by a firm if the product or service it provides is perceived to provide the same benefits to everyone An advantage of using the

undifferentiated targeting strategy is that it does away with the need to develop separate strategies for different groups

Difficulty: Easy

micromarketing.

53 Mancer is a company that sells clothes It has three different retail store formats to serve the varied needs of diverse fashion segments In this case, which targeting strategy is the company using?

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54 Ace Inc is a company that sells clothes It has two brand names, Ace 1 and Ace Kid Each

of these brands caters to the needs of two dissimilar market segments There are varied strategies and products for the dissimilar groups In this case, which targeting strategy is the company using?

Blooms: Apply

micromarketing.

55 A strategy through which a firm targets several market segments with a varied offering foreach is called a(n):

A differentiated targeting strategy.

B specialized targeting strategy

C generalized targeting strategy

D undifferentiated targeting strategy

E concentrated targeting strategy

Differentiated targeting strategy is a strategy through which a firm targets several market segments with a different offering for each Firms embrace differentiated segmentation because it helps them obtain a bigger share of the market and increase the market for their products overall

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56 Firms embrace differentiated segmentation because:

A it is much easier to plan promotional strategies for different products being offered to different segments of the market

B it helps them obtain a bigger share of the market and increase the market for their products

overall

C it does not require them to develop separate strategies for different groups

D it protects the dilution of the brand

E it is inexpensive and cost effective

Differentiated targeting strategy is a strategy through which a firm targets several market segments with a different offering for each Firms embrace differentiated segmentation because it helps them obtain a bigger share of the market and increase the market for their products overall

micromarketing.

57 A large passenger-ship company targets only old rich people for its around-the-world cruises It ensures that all its rooms are designed to be as comfortable as possible for older people In this case, the company is using the:

A perceptual stimulation strategy

B geographic targeting strategy

C brand repositioning strategy

E concentrated targeting strategy.

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs, it is using a concentrated or niche targeting strategy As the passenger-ship company is focusing all its energies on providing a product to fit older people, it is using the concentrated targeting strategy

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58 The marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs is called a(n):

A perceptual mapping strategy

B behavioural mapping strategy

C brand repositioning strategy

E concentrated targeting strategy.

When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs, it is using a concentrated or niche targeting strategy Entrepreneurial startup ventures often benefit from using a concentrated strategy, which allows them to employ their limited resources more efficiently

Blooms: Remember

Difficulty: Easy

micromarketing.

59 A crane manufacturing company that solely manufactures and sells salvage cranes for salvage companies is using which strategy?

it is using the concentrated targeting strategy

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60 Which of the following is true of micromarketing?

A It refers to the display, in two or more dimensions, of the position of products or brands in the consumer's mind

B It refers to the segmentation that tailors a product or service to suit an individual customer's

wants or needs

C It refers to the mental picture that people have about a company and its products or

services relative to competitors

D It refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences

E It refers to a marketing strategy a firm can use if a product or service is perceived to

provide the same benefits to everyone

Micromarketing refers to the segmentation that tailors a product or service to suit an

individual customer's wants or needs Small producers and service providers generally can tailor their offering to individual customers more easily, whereas it is far more difficult for larger companies to achieve this degree of segmentation

Blooms: Remember

Difficulty: Easy

micromarketing.

61 Rick, a neighbourhood tailor, makes clothes according to the requirements of each of his individual customers This is an example of:

individual customer's wants or needs As Rick makes clothing according to the requirements

of each of his customers, he is using micromarketing

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62 A company that sells shoes has a website with a make-your-own-shoe feature It makes a vast number of styles in every major performance category available to the customer for personalization This is an example of:

Blooms: Apply

micromarketing.

63 A tattoo artist creates tattoos according to his customers' specifications This is an exampleof:

individual customer's wants or needs As the tattoo artist creates tattoos according to his customers' specifications, he is using micromarketing

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64 A company launches a wide range of perfumes Customers can go to the company's store and combine the perfumes in different ways to create unique scents This is an example of:

micromarketing.

65 A local bakery customizes its pastries and cakes to suit individual customer requirements This is an example of:

individual customer's wants or needs As the bakery customizes its pastries and cakes to suit its individual customer's requirements, it is using micromarketing

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Tiêu đề	Segmentation, Targeting, and Positioning
Trường học	Simon Fraser University
Chuyên ngành	Marketing
Thể loại	test bank