Question 1

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?
A) Will our new products steal customers or sales from our older ones?
B) Will the products compete head-to-head with those of a competitor?
C) Can this action successfully draw customers away from competitors?
D) Are there enough similarities within the market segment to warrant such high costs?
E) Will this action eliminate the need for individualized advertising and promotion?

Accepted Answer

Cannibalization refers to the potential of a new product taking away customers or sales from an existing product. Therefore, the marketers should ask whether the new products will steal customers or sales from older ones to prevent cannibalization.

Question 2

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as
A) amortization.
B) guerrilla marketing.
C) shrinkage.
D) marketing Darwinism.
E) cannibalization.

Accepted Answer

The situation described in the question, where a company's own products or stores are negatively impacting sales of their other products, is known as cannibalization. In this case, Ann Taylor was losing sales to its own LOFT stores.

Question 3

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as
A) functional aggregation.
B) organizational synergy.
C) task segmentation.
D) task amalgamation.
E) project valuation.

Accepted Answer

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as organizational synergy. This is when the various functions of an organization work together in a coordinated manner to achieve better results than they would if they worked independently.

Question 4

Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
A) mass customization.
B) specialty customization.
C) virtual merchandising.
D) one product and multiple market segments.
E) multiple products and multiple market segments.

Accepted Answer

This is an example of mass customization, where a company offers a large variety of customizable options to customers, but only produces the final product after the order is placed.

Question 5

When a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets, it is referred to as
A) cannibalization.
B) amortization.
C) product appropriation.
D) product pilfering.
E) marketing Darwinism.

Accepted Answer

Cannibalization refers to when a new product or retail chain takes customers and sales away from existing products or stores within the same company. This can be detrimental to the overall profitability of the organization.

Question 6

Cannibalization would most likely occur if
A) Dell adds high-end speaker systems to its line.
B) General Mills launches Caramel Crunch Cheerios.
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike.
D) Pillsbury adds boxed sugar to its product mix.
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

Accepted Answer

The answer of Cannibalization would most likely occur if
A) Dell...

Question 7

Nike employs a ________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.
A) product sampling
B) product clustering
C) mass customization
D) usage segmentation
E) psychographic segmentation

Accepted Answer

Mass customization is a strategy that involves giving customers the opportunity to design a product to their own unique specifications. Nike's website, nikeid.com, allows customers to design their own personalized sneakers, making it an example of mass customization. Product sampling involves offering free samples to customers, product clustering involves grouping similar products together, usage segmentation involves dividing customers based on how they use a product, and psychographic segmentation involves dividing customers based on their lifestyles and personalities. None of these strategies accurately describe Nike's approach at nikeid.com.

Question 8

All of the following are examples of increased customer value from organizational synergy except which?
A) lower prices
B) increased brand awareness
C) more products
D) improved distribution
E) improved quality of existing products

Accepted Answer

The key to successful product differentiation and market segmentation strategies is finding the ideal balance between satisfying a customer's individual wants and achieving organizational synergy,the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.The "increased customer value" can take many forms: more products,improved quality of existing products,lower prices,easier access to products through improved distribution,and so on.Brand awareness is beneficial to the firm,but not a component of customer value likely to occur here.

Question 9

Which of the following is an example of a Tiffany/Walmart strategy?
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D) Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

Gap's Banana Republic and Old Navy stores cater to different market segments with different price points. This is a typical Tiffany/Walmart strategy.

Question 10

Manufacturing a product only when there is an order from a customer is referred to as
A) order customization.
B) a one product, one market segment strategy.
C) synergistic marketing.
D) build-to-order.
E) specialty customization.

Accepted Answer

Build-to-order refers to the manufacturing of a product only when there is an order from a customer. This is often used to reduce inventory costs, improve efficiency, and increase customer satisfaction by offering products that meet their specific needs. Option A (order customization) and Option E (specialty customization) are similar concepts but do not necessarily involve manufacturing only when there is an order. Options B (one product, one market segment strategy) and C (synergistic marketing) do not relate to this specific manufacturing method.

Question 11

Wonk is a unique furniture company that design, builds, and retails in Brooklyn, NY. You can customize your design with creative input, including personalizing items with wood and lacquer options or environmentally conscious materials and finishes, though the options are not unlimited. Wonk relies on
A) order customization.
B) a one product, one market segment strategy.
C) build-to-order manufacturing.
D) specialty customization.
E) mass customization.

Accepted Answer

Wonk relies on build-to-order manufacturing, which means they only create furniture after receiving an order and customize the design according to customer preferences. This allows for greater flexibility and reduces waste in their production process. The other choices (A, D, and E) all involve some form of customization but do not necessarily involve build-to-order manufacturing. B is not a valid option as Wonk offers a range of products targeted towards different market segments.

Question 12

Which of the following is an example of a multiple products, multiple market segments strategy?
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Accepted Answer

The answer of Which of the following is an example...

Question 13

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's profits and
A) meets standards for new product testing.
B) uses the same promotion and packaging for all segments.
C) cannibalizes the earlier products.
D) stabilizes competition.
E) better serves customers' needs.

Accepted Answer

By offering different cereals targeted at different types of users, Kellogg's is better serving the diverse needs of its customers. This can lead to increased customer satisfaction and loyalty, resulting in higher profits for the manufacturer.

Question 14

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer
A) a low-priced product to a high-income or high net worth segment.
B) a high-priced product to a low-income or low net worth segment.
C) different variations of the same basic offering to high-end and low-end segments.
D) a high-priced and a low-priced offering to a single market segment.
E) entirely different offerings to high-end and low-end segments.

Accepted Answer

A Tiffany/Walmart strategy refers to offering different variations of the same basic offering to high-end and low-end segments. This helps companies appeal to a larger customer base and maximize profits by offering options at different price points.

Question 15

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.
A) costs decrease
B) market share increases
C) product deficiencies decrease
D) customers should be better off
E) new products flourish

Accepted Answer

The ultimate goal of marketing is to create value for the customers. Marketing success is measured by how well an organization is able to satisfy its customers' needs and wants. If customers are better off as a result of the organization's marketing efforts, it can be considered a success. This may result in increased customer loyalty, positive word-of-mouth, and ultimately, increased sales and profits.

Question 16

Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of
A) family branding.
B) mass customization.
C) "Tiffany/Walmart" marketing.
D) market melding.
E) specialty customization.

Accepted Answer

This is an example of mass customization, where Lands' End is able to offer personalized features to their customers without drastically increasing the cost or production time of the product.

Question 17

Name Maker is an online company that sells, among other items, high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is an example of
A) family branding.
B) mass customization.
C) synergistic marketing.
D) "Tiffany/Walmart" marketing.
E) specialty customization.

Accepted Answer

The gift wrapping that Name Maker offers is an example of mass customization, as each order is customized to the specific name or slogan requested by the customer. This type of customization allows customers to feel like they are getting a personalized product while also allowing the company to produce the product on a large scale.

Question 18

ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
A) family branding.
B) mass customization.
C) multiple products and multiple market segments.
D) one product and multiple market segments.
E) specialty customization.

Accepted Answer

The fact that ChoiceShirts allows customers to customize their T-shirts using any downloaded photo and 600 templates shows that they offer mass customization. Customers can create a unique product tailored to their individual needs and preferences.

Question 19

Organizational synergy is the increased customer value achieved through
A) performing organizational functions more efficiently.
B) more discounts or larger rebates at the point of sale.
C) involvement of the ultimate consumer in product design.
D) an increase in the knowledge of competitors.
E) shared ownership of the organization through publicly traded stock.

Accepted Answer

Organizational synergy refers to the collaboration of different departments, functions, and stakeholders within an organization to achieve a common goal. By working together towards a common goal, organizational synergy can lead to more efficient processes and operations, ultimately resulting in increased customer value. Therefore, performing organizational functions more efficiently is the option that best describes achieving organizational synergy.

Question 20

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as
A) family branding.
B) mass customization.
C) product differentiation.
D) economies of scale marketing.
E) build-to-order.

Accepted Answer

Mass customization refers to the ability to tailor products or services to the unique tastes of individual customers on a large scale. This combines the efficiency of mass production with the personalization of customized products. The options A, C, D, and E all refer to different concepts that are not directly related to mass customization.

Quiz 8: Market Segmentation, Targeting, and Positioning

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as

When a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets, it is referred to as

Cannibalization would most likely occur if

Nike employs a ________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.

All of the following are examples of increased customer value from organizational synergy except which?

Which of the following is an example of a Tiffany/Walmart strategy?

Manufacturing a product only when there is an order from a customer is referred to as

Which of the following is an example of a multiple products, multiple market segments strategy?

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's profits and

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

The ultimate criterion for an organization's marketing success is that ________ as a result of increased synergies.

Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of

Name Maker is an online company that sells, among other items, high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is an example of

ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of

Organizational synergy is the increased customer value achieved through

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as