Question 1

Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation?
A)Thorson and Moore's model
B)PRIZM
C)SIC Codes
D)VALS

Accepted Answer

PRIZM is a geodemographic segmentation system developed by Claritas that identifies 62 market segments based on zip codes and the personal characteristics of their residents. It is a well-known tool for marketers that helps them better understand their target audience and tailor their marketing efforts accordingly. Thorson and Moore's model is a communication model, SIC Codes are a classification system for industries, and VALS is a psychographic segmentation system.

Question 2

A firm hires an agency to attract barbers, spas, and hair salons with its line of hair care products, grooming equipment, and professional tools.The agency will be specifically involved in
A)psychographic research.
B)business-to-business marketing.
C)the competitive field
D)lifestyle segmentation.

Accepted Answer

The agency is hired to attract barbers, spas, and hair salons, which are all businesses, meaning the agency is specifically involved in business-to-business (B2B) marketing. Therefore, option (B) is the best choice. Psychographic research, competitive field, and lifestyle segmentation are not mentioned in the given scenario.

Question 3

One well-known research classification system is VALS, which has identified a number of segments
A)based on entirely different traits beyond standard demographics.
B)created largely by geographic location.
C)to identify groups of consumers with different product usage rates.
D)with no particular category as a focus.

Accepted Answer

The answer of One well-known research classification system is VALS,...

Question 4

Several essential characteristics have been found to be necessary to build an effective positioning strategy.In a nutshell, it should be
A)bold, aggressive, and unique.
B)broad, universal, and all-encompassing.
C)meaningful, consistent, and simple.
D)substantive, familiar, and flexible.

Accepted Answer

A positioning strategy should be meaningful, as in it should resonate with the target audience, consistent, as in it should be consistently applied across all aspects of the brand, and simple, as in it should be easy to communicate and understand. Boldness, aggression, universality, being all-encompassing, having familiarity, or flexibility may or may not be important depending on the specific brand and its objectives.

Question 5

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds.To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one?
A)expanding on its menu
B)adding extra drive-up windows
C)hiring more order-takers
D)hanging up digital timers behind the counter

Accepted Answer

Expanding on its menu could potentially slow down the ordering process and contradict the brand's positioning as the best choice for customers in a hurry. Therefore, this step should not be taken to maintain internal consistency. The other options - adding extra drive-up windows, hiring more order-takers, and hanging up digital timers behind the counter - are all in line with the brand's positioning and would help maintain consistency.

Question 6

Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus?
A)Estée Lauder
B)Folgers
C)Mobil
D)Pillsbury

Accepted Answer

The text highlights Pillsbury as the company that interviewed 3,000 consumers and created five distinct segments to target in different ways, customizing lifestyle segmentation with a particular focus.

Question 7

"Careful Cooks," "Down-Home Stokers," and "Functional Feeders" are all segments identified by a major food company based on ____ segmentation.
A)geopsychographic
B)niche
C)repositioned
D)lifestyle

Accepted Answer

The segments identified by the food company - "Careful Cooks," "Down-Home Stokers," and "Functional Feeders" - are all based on lifestyle segmentation. This type of segmentation is based on activities, interests, and opinions of consumers, and is useful for identifying groups of consumers who share similar values and preferences.

Question 8

An ad agency marketing a line of office products segments a consumer market using PRIZM data and then segments a business market using SIC data.These two systems have one thing in common, in that they both involve
A)geographic locations of markets.
B)target markets already categorized by gender and age.
C)psychographic data.
D)extensive consumer interviews.

Accepted Answer

Both PRIZM and SIC data involve geographic locations of markets, as PRIZM segments consumers based on geographic and demographic factors, while SIC codes categorize businesses by industry, which can also be geographically analyzed.

Question 9

Though advertisers cannot predict the future, what is one key element that may influence their decisions in years to come concerning the demographic group called "woopies"?
A)They are identified by free spirits in their 20s and 30s who have yet to commit to long-term careers, relationships, lifestyles, or even geographic locations.
B)They represent the youngest demographic segment in the U.S., based on babies born in the past five years.
C)They will make up one-third of the U.S.population by 2025, those age 50 and older.
D)They consist of pre-teens and early adolescents, who will have great buying power within a few years.

Accepted Answer

"Woopies" refers to the demographic group of individuals aged 50 and older, who are expected to make up one-third of the U.S. population by 2025, making them a significant target for advertisers.

Question 10

One big plus from a product position that stays consistent over time, like State Farm's "Good Neighbor" campaign, is that it
A)is more likely to break through advertising clutter.
B)successfully reaches nonusers.
C)doesn't need to target a particular segment.
D)is easily repositioned.

Accepted Answer

Staying consistent over time helps a product or brand break through advertising clutter as consumers become more familiar with the messaging, making it easier to remember and recognize.

Question 11

Benefit positioning is demonstrated in product campaigns that
A)feature distinctive reasons for its purchase.
B)announce new features and functions.
C)build a customer base of new purchasers.
D)revitalize an identity that has been lost in the market.

Accepted Answer

Benefit positioning focuses on highlighting the unique benefits and reasons for purchasing a product, rather than simply announcing new features or trying to revitalize a branding identity. A good benefit positioning campaign will showcase specific, tangible benefits that set the product apart from competitors and encourage consumers to make a purchase.

Question 12

Which firm did the text highlight as one with a long-term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy?
A)Exedrin
B)Jack Daniels
C)Nike
D)Tylenol

Accepted Answer

The text highlighted Jack Daniels as the firm with a long-term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy.

Question 13

Psychographics emerged in the 1960s as a new research method, one that would better understand consumer's
A)PRIZMs.
B)SICs.
C)AIOs.
D)STPs.

Accepted Answer

AIOs (Activities, Interests, and Opinions) is a form of psychographic segmentation that emerged in the 1960s, making it the best choice for the question. PRIZMs, SICs, and STPs are other types of marketing segmentation methods that are not related to psychographics.

Question 14

In Mobil's positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did.But one issue that was NOT a factor was that the segment
A)spent the largest amount of money at service stations.
B)had the greatest number of consumers in sheer numbers.
C)had potential for growth.
D)bought little extras besides just gas.

Accepted Answer

Mobil's target market selection was not based on the sheer number of consumers, but rather on factors like spending habits, potential for growth, and purchasing additional items beyond just gas.

Question 15

A major criterion to consider during segment selection involves the companies that are vying for that segment's business.What term is used to define this concept?
A)ad clutter
B)business market
C)competitive field
D)target market

Accepted Answer

The term used to define the companies that are vying for a particular segment's business is the competitive field. The other choices are not relevant to this concept: 
A) Ad clutter refers to the excessive amount of advertising messages in a particular medium or channel. 
B) Business market refers to a market of organizations that purchase goods and services to support their operations. 
D) Target market refers to a specific group of consumers that a company is trying to reach with its marketing efforts.

Question 16

The text mentions Avon Products as one of many corporations that has successfully added emotional benefits to its positioning, creating intense feelings regarding its products, by linking its brand to
A)a celebrity endorsement.
B)an important social cause.
C)a YouTube video.
D)a viral Internet promotion.

Accepted Answer

The text mentions Avon Products as having successfully added emotional benefits by linking its brand to an important social cause, specifically promoting breast cancer awareness with its "Avon Walk for Breast Cancer" events.

Question 17

Two fundamental questions must be asked by an advertiser when trying to determine which market segment to target.They are "What do members of the segment want in a product?" and
A)"How much are they willing to pay for it?"
B)"Is the segment currently growing?"
C)"What are they willing to settle for?"
D)"Can my company provide it?"

Accepted Answer

The advertiser needs to determine if their company can provide what the segment wants, ensuring they can meet the needs and demands of the target market.

Question 18

What is a market niche?
A)A small group of consumers with unique needs and who typically are willing to pay a premium to have those needs met.
B)A small segment that a firm tries to dominate but ultimately shares with many other competitors.
C)A competitive position that has cost a firm in time and money but has shown little profitability.
D)Astrategy that positions the firm's brand as close to the market leader as possible.

Accepted Answer

A market niche refers to a small group of consumers with unique needs that aren't being fully met by mainstream products or services. These consumers are typically willing to pay a premium to have those needs met, making them an attractive target market for businesses.

Question 19

Why is benefit positioning often used by a firm when its competitors offer comparable products that basically do the same thing?
A)to point out emotional benefits that differentiate its product from others
B)to send new messages about its product's identity
C)to spell out functional benefits that its product offers
D)to suggest new uses for its product

Accepted Answer

When competitors offer similar products, benefit positioning is often used to differentiate the product based on emotional benefits. By emphasizing the unique feelings or experiences that the product can provide, the firm can distinguish its product from others and create a stronger connection with consumers.

Question 20

Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is an example of ____ segmentation.
A)psychographic
B)behavioral
C)geographic
D)geodemographic

Accepted Answer

The segmentation in this case is geographic as it is based on factors such as climate, topography, community size, and national region. Geographical segmentation involves dividing a market into different regions based on variables such as location, climate, population density, and other physical or environmental factors that affect consumer behavior.

Quiz 6: Market Segmentation, Positioning, and the Value Proposition

Which system has identified 62 market segments based on zip codes and the personal characteristics of their residents, creating a well-known tool for geodemographic segmentation?

A firm hires an agency to attract barbers, spas, and hair salons with its line of hair care products, grooming equipment, and professional tools.The agency will be specifically involved in

One well-known research classification system is VALS, which has identified a number of segments

Several essential characteristics have been found to be necessary to build an effective positioning strategy.In a nutshell, it should be

A fast-food restaurant is attempting to position itself as the best choice when you're in a hurry because it serves all customers within 90 seconds.To maintain internal consistency, the firm might take all of the following steps below, EXCEPT for which one?

Which company was highlighted in the text because it interviewed 3,000 consumers and created five distinct segments that it could then target in different ways, customizing lifestyle segmentation with a particular focus?

"Careful Cooks," "Down-Home Stokers," and "Functional Feeders" are all segments identified by a major food company based on ____ segmentation.

An ad agency marketing a line of office products segments a consumer market using PRIZM data and then segments a business market using SIC data.These two systems have one thing in common, in that they both involve

Though advertisers cannot predict the future, what is one key element that may influence their decisions in years to come concerning the demographic group called "woopies"?

One big plus from a product position that stays consistent over time, like State Farm's "Good Neighbor" campaign, is that it

Benefit positioning is demonstrated in product campaigns that

Which firm did the text highlight as one with a long-term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy?

Psychographics emerged in the 1960s as a new research method, one that would better understand consumer's

In Mobil's positioning as the "Friendly Serve" station, it had many good reasons to select the particular target market that it did.But one issue that was NOT a factor was that the segment

A major criterion to consider during segment selection involves the companies that are vying for that segment's business.What term is used to define this concept?

The text mentions Avon Products as one of many corporations that has successfully added emotional benefits to its positioning, creating intense feelings regarding its products, by linking its brand to

Two fundamental questions must be asked by an advertiser when trying to determine which market segment to target.They are "What do members of the segment want in a product?" and

What is a market niche?

Why is benefit positioning often used by a firm when its competitors offer comparable products that basically do the same thing?

Climate, topography, community size, and national region have been found to make dramatic differences in consumption, including habits involving eating and food preparation, entertainment, and recreation.This is an example of ____ segmentation.