Question 1

A retailer that wanted to target prospective grooms between the ages of twenty- one and forty who are within six months of their marriage is using segmentation to define its target market.
A)socioeconomic
B)behavioral
C)lifestyle
D)ethnicity
E)demographic

Accepted Answer

The retailer is using demographic segmentation, which involves dividing the market based on variables such as age and marital status.

Question 2

Companies that successfully practice customer relationship management (CRM)measure success by .
A)business potential and industry potential
B)current future value of the customer and share of market
C)a perceptual map and share of voice
D)share of market and net present value of customers over a period of years
E)share of customer and lifetime value of the customer

Accepted Answer

Companies practicing CRM focus on maximizing the share of customer and understanding the lifetime value of each customer to ensure long-term profitability and customer loyalty.

Question 3

According to the writings of Don Peppers and Martha Rogers,there is/are _ _ step(s)in one- to- one marketing.
A)one
B)two
C)three
D)four
E)five

Accepted Answer

Don Peppers and Martha Rogers outlined four steps in one-to-one marketing: identify, differentiate, interact, and customize.

Question 4

Harley- Davidson's user profile includes both thrill- seeking and affinity for a countercultural image.In addition to demographics,H- D uses segmentation to target their markets.
A)socioeconomic
B)psychographic
C)behavioral
D)geodemographic
E)value analysis

Accepted Answer

Harley-Davidson targets their markets using psychographic segmentation, which focuses on the lifestyle, values, and personality traits of consumers, such as thrill-seeking and a countercultural image.

Question 5

Average collectors of an artist's collectible miniatures will buy four new ones each year.The collectibles are available at a number of different retail locations and from several different catalog retailers.As part of her _ program,the owner of The Door Gift Shop sends her customers,who are collectors,a postcard every time the store adds a new one to her store's inventory.
A)marketing with a product- orientation
B)transactional marketing programs
C)product fragmentation strategy
D)undifferentiated marketing
E)CRM

Accepted Answer

The owner of The Door Gift Shop is engaging in Customer Relationship Management (CRM) by sending postcards to collectors whenever new collectibles are added, aiming to maintain and enhance customer relationships.

Question 6

People who are regular visitors to ScFoi.com (a website maintained by a science fiction cable network)and those who are regular visitors to BHG.com (a website maintained by the producers of BHG- TV and the publishers of a women's magazine)belong to different segments.
A)ethnographic
B)demographic
C)socioeconomic
D)psychographic
E)geodemographic

Accepted Answer

Psychographic segmentation involves dividing a market into different segments based on social class, lifestyle, or personality characteristics. Regular visitors to ScFoi.com and BHG.com likely have different interests and lifestyles, which aligns with psychographic segmentation.

Question 7

Which of the following statements about the lifetime value of a customer is true?
A)CRM helps companies identify their customers' lifetime value.
B)All customers have the same lifetime value.
C)A customer's lifetime value is easy to calculate.
D)The value of the customer is related to the value of the brand.
E)A company can either increase customer share or a customer's lifetime value but not both.

Accepted Answer

CRM systems are designed to help companies analyze customer data, which can be used to estimate the lifetime value of a customer.

Question 8

A perceptual map is used to .
A)identify psychographic segments such as people who cheat on their income taxes or steal from their employers
B)identify at which stage of the targeting process the marketer needs to be
C)locate consumers within a primary metropolitan statistical area (PMSA)
D)create consumer cross- tabulations for marketing research
E)determine how consumers position products in relation to one another

Accepted Answer

A perceptual map is a visual representation used in marketing to show how consumers perceive different products or brands in relation to each other, often based on various attributes or dimensions.

Question 9

If Sam described Coca- Cola as an all- American,Pepsi- Cola as a young daredevil,and Dr.Pepper as a nonconformist,he would be describing the sodas' .
A)segment profiles
B)trade promotions
C)brand personalities
D)target markets
E)FAB profiles

Accepted Answer

Sam is describing the brand personalities of the sodas, attributing human characteristics to each brand.

Question 10

The Why Bros.Collection is a catalog retailer that sells clothing and collectibles to aviation enthusiasts.Its might be men and women between the ages of twenty- five and fifty- five who are risk takers.They belong to organizations such as the American Legion,the VFW,and the National Rifle Association of America.They are either pilots themselves or have close ties to a pilot.They prefer camping to taking a luxury cruise.Annually,they spend $900 on items purchased from nonstore retailers.
A)segment profile
B)internal market audit
C)customer guide
D)customer potential assessment
E)value analysis

Accepted Answer

The description provided is a segment profile, which outlines the characteristics and behaviors of a specific target market segment.

Question 11

Customizing Web advertising so that people who log on in different places will see ad banners for local businesses is known as _ .
A)geodemography
B)positioning
C)income
D)ethnicity
E)geocoding

Accepted Answer

Geocoding involves customizing web advertising based on the geographical location of the user, allowing them to see ads relevant to local businesses.

Question 12

Starting in February and ending sometime in late April,department stores promote the fact that they stock a wide range of formal attire to wear to high school proms.The dresses and tuxedoes are available year- round,but because most proms are held in the spring that is when the heaviest promotion of these products occur.This spring promotion to high school students is based on usage occasion and uses both _ and segmentation.
A)socioeconomic,psychographic
B)demographic,behavioral
C)geographic,demographic
D)geodemographic,sociocultural
E)psychographic,demographic

Accepted Answer

The promotion targets high school students (demographic) and is based on the occasion of prom (behavioral).

Question 13

data is useful in understanding why some people who are older than sixty- five lead active lives,take regular vacations,and eat a healthy diet although others in the same age segment do not exercise,eat and drink to excess,and refuse to walk more than five feet to pick up their mail.
A)Geoclustering
B)Socioeconomic
C)Ethnocentric
D)Demographic
E)Psychographic

Accepted Answer

Psychographic data helps in understanding the lifestyle, interests, and attitudes of individuals, which can explain why some older adults lead active and healthy lives while others do not.

Question 14

CRM stands for _ .
A)consumer relationship management
B)consumer relationship marketing
C)customer relationship marketing
D)customer relationship management
E)customer relations marketing

Accepted Answer

CRM stands for Customer Relationship Management, which refers to practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.

Question 15

The only time many people entertain is during November and December when their homes are decorated for the holidays.The increase in ads for prepared trays of food to be served at these functions is directly related to _ _ segmentation.
A)geodemographic
B)sociocultural
C)geographic
D)demographic
E)behavioral

Accepted Answer

Behavioral segmentation focuses on the behavior of consumers, such as occasions and usage rates. The increase in ads for prepared trays of food during November and December is related to the holiday season, which is a specific occasion influencing consumer behavior.

Question 16

A viable target market should .
A)not be reachable by other organizations
B)be the most profitable possible target market
C)have needs that can adequately be served by the marketer
D)have the same needs as similar- sized groups
E)all of the above

Accepted Answer

A viable target market should have needs that can adequately be served by the marketer, ensuring that the marketer can effectively meet the demands of the market.

Question 17

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to the youth market,as the endorser of the brand.
A)gender
B)geographic location
C)age
D)lifestyle
E)psychographics

Accepted Answer

Reebok targeted the youth market by choosing Allen Iverson, indicating segmentation based on age.

Question 18

CRM firms focus on increasing their share of the customer's business because _.
A)it is usually easier but more expensive to keep an existing customer than to get a new customer
B)customers come and go so quickly
C)it is easier and less expensive to keep an existing customer than to get a new customer
D)it is harder but less expensive to keep an existing customer than to get a new customer
E)it is always hard and expensive to get new customers

Accepted Answer

It is generally more cost-effective to retain existing customers than to acquire new ones, as existing customers are already familiar with the brand and require less marketing effort.

Question 19

A condition of exists today as a result of people's diverse interests and backgrounds,which divide them into numerous groups with distinct wants and needs.
A)disintermediation
B)economic aggregation
C)market aggregation
D)market similitude
E)market fragmentation

Accepted Answer

Market fragmentation refers to the division of a market into smaller segments with distinct needs and preferences, often due to diverse interests and backgrounds of people.

Question 20

To determine customer equity,firms .
A)develop a target marketing strategy
B)analyze the investments they make in acquiring customers
C)compare one relationship enhancement with another relationship enhancement
D)calculate the value of the brand equity
E)analyze the investments they make in plant and equipment

Accepted Answer

Customer equity involves analyzing the investments made in acquiring and retaining customers, as it reflects the total value of the firm's customer base.

Quiz 7: Sharpening the Focus: Target Marketing Strategies and Cus-Tomer Relationship Management

A retailer that wanted to target prospective grooms between the ages of twenty- one and forty who are within six months of their marriage is using segmentation to define its target market.

Companies that successfully practice customer relationship management (CRM) measure success by .

According to the writings of Don Peppers and Martha Rogers,there is/are _ _ step(s) in one- to- one marketing.

Harley- Davidson's user profile includes both thrill- seeking and affinity for a countercultural image.In addition to demographics,H- D uses segmentation to target their markets.

People who are regular visitors to ScFoi.com (a website maintained by a science fiction cable network) and those who are regular visitors to BHG.com (a website maintained by the producers of BHG- TV and the publishers of a women's magazine) belong to different segments.

Which of the following statements about the lifetime value of a customer is true?

A perceptual map is used to .

If Sam described Coca- Cola as an all- American,Pepsi- Cola as a young daredevil,and Dr.Pepper as a nonconformist,he would be describing the sodas' .

Customizing Web advertising so that people who log on in different places will see ad banners for local businesses is known as _ .

data is useful in understanding why some people who are older than sixty- five lead active lives,take regular vacations,and eat a healthy diet although others in the same age segment do not exercise,eat and drink to excess,and refuse to walk more than five feet to pick up their mail.

CRM stands for _ .

The only time many people entertain is during November and December when their homes are decorated for the holidays.The increase in ads for prepared trays of food to be served at these functions is directly related to _ _ segmentation.

A viable target market should .

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to the youth market,as the endorser of the brand.

CRM firms focus on increasing their share of the customer's business because _.

A condition of exists today as a result of people's diverse interests and backgrounds,which divide them into numerous groups with distinct wants and needs.

To determine customer equity,firms .