Deck 9: Marketing Segmentation, Targeting, and Positioning

Question 1

Which of the following basic requirements must market segmentation meet to be effective?

A) The firm must avoid focusing on non-variables, such as profitability and volume.
B) The market segment must reflect the population's changing attitudes and lifestyles.
C) The company must expand beyond its marketing capabilities to capture growing markets.
D) The market segment must have measurable purchasing power and size.

Answer 1

D

Question 2

When one product becomes part of another product that is destined for resale, what is the first product considered?

A) consumer product
B) business product
C) commercial market product
D) industrial market product

Answer 2

B

Question 3

What is the lumber a carpenter purchases to finish a client's basement known as?

A) raw material
B) business product
C) consumer good
D) home-improvement product

Answer 3

B

Question 4

What is the division of the total market into smaller, homogenous groups called?

A) customer aggregation
B) market capitalization
C) market segmentation
D) brand segmentation

Question 5

Which of the following is NOT a common basis for segmenting consumer markets?

A) geographic
B) psychographic
C) competitive
D) demographic

Question 6

What are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location known as?

A) core based information systems
B) inertial navigation systems (INS)
C) geographic information systems (GIS)
D) advanced navigation assessment systems

Question 7

What is one of the two largest metropolitan areas in the world?

A) Montreal
B) Tokyo
C) New York
D) London

Question 8

An automobile manufacturer generates approximately one-half of its sales in two provinces in Canada. What do these provinces constitute for the company?

A) primary consumer market
B) core region
C) secondary market
D) sales region

Question 9

How would a geographic area surrounding an urban core with a population of at least 100 000 be classified?

A) as a census metropolitan area (CMA)
B) as a primary metropolitan region (PMR)
C) as a metropolitan statistical area (MSA)
D) as a census agglomeration (CA)

Question 10

Which market segment could a marketing organization most effectively promote to and serve based on the segment's size and profit potential?

A) the staff of foreign embassies from European countries
B) baby boomers
C) captains and crews of sea-going vessels
D) collectors of classic MG sports cars

Question 11

Which statement does NOT accurately describe market segmentation?

A) Only for-profit organizations practice market segmentation.
B) Firms that practice market segmentation don't necessarily change their products to meet the needs of different market segments.
C) There are too many variables to attract all customers using the same marketing mix.
D) Market segmentation attempts to divide the total market into smaller groups.

Question 12

In addition to population and geography, a researcher might combine other indicators to segment markets geographically. Which of the following indicators would marketers be least likely to use?

A) income and job growth
B) migration patterns
C) average size of the households
D) product-usage patterns

Question 13

What type of segmentation is a firm practising when it divides its customers into homogeneous groups based on their locations?

A) psychographic
B) product-based
C) geographic
D) demographic

Question 14

Based on the most recent census data, where does the majority of the Canadian population live?

A) in Toronto, Ontario
B) between Montreal, Quebec, and Windsor, Ontario
C) in 33 metropolitan areas across the country
D) in Calgary, Alberta

Question 15

What is a commonly used basis for segmenting consumer markets?

A) geographic segmentation based on locations
B) career segmentation based on industry affiliation
C) national segmentation based on citizenship
D) institutional segmentation based on membership

Question 16

Kyle plans to buy new tires for a converted bus his family uses for camping trips. The tires are the same type used on General Motors commercial trucks and can be purchased from Industrial Tire Company. How are the tires that Kyle will buy for this bus classified?

A) business products
B) service products
C) commercial products
D) consumer products

Question 17

How might business products be identified?

A) as goods and services purchased for use either directly or indirectly in the production of other goods and services for resale
B) as goods and services of any kind bought for use in the home, but sold later as used items
C) as goods and services, such as legal services, that can be bought by businesses or individuals but do not enter into the production of finished goods
D) as goods and services sold in a finished state for use in the home or the business office

Question 18

What term refers to goods and services purchased by the ultimate user for personal use?

A) personal products
B) purchased products
C) consumer products
D) commercial products

Question 19

What is the basis for determining whether pencils are consumer products or business products?

A) the purpose for which the pencils are purchased
B) the number of pencils that are purchased
C) where the pencils are purchased from
D) the total price paid for the number of pencils

Question 20

Generally speaking, what are rubber and raw cotton examples of?

A) business products
B) consumer products
C) fabricated materials
D) nonpersonal products

Question 21

Which statement does NOT accurately describe socioeconomic market segmentation?

A) It is easy in foreign markets where income and life-cycle stage are not measured.
B) It is the most common type of market segmentation.
C) It is defined by variables that include age, gender, income, occupation, and education.
D) It is most often compiled through data taken from Statistics Canada.

Question 22

Which of the following is a characteristic of a Geographic Information Systems (GIS)?

A) It is very expensive to use because of the high cost of leasing the technology from the military.
B) It is complicated to use because the data is produced using logarithmic displays that most small computer systems cannot handle.
C) It has very sophisticated digital readouts that require three-dimensional colour coding to read.
D) It assembles, stores, and displays data by location.

Question 23

What is the most common method of market segmentation?

A) product-related
B) demographic
C) economic
D) psychographic

Question 24

What do pizza delivery companies use to succeed in delivering thousands of pizzas to Canadian homes on Super Bowl Sunday?

A) advertising shown during the game
B) statistical databases and written reports from area managers
C) motor scooters rather than automobiles as delivery vehicles
D) geographic information system that can display location-specific data

Question 25

Which age group would marketers of life insurance most likely target?

A) teenagers
B) between 25 and 35 years old
C) baby boomers
D) over 60 years old

Question 26

What greatly attributes to the Canadian population growth and change in Canada's racial and ethnic make-up?

A) North American Free Trade Agreement
B) immigration among some minority groups
C) shifts in population to urban areas
D) increasing birth rate for the entire population

Question 27

How can Chinese Canadian consumers be described?

A) as trusting in family, hardworking, and thrifty
B) as having a preference for North American food products and groceries
C) as being part of a homogenous segment
D) as more likely to obtain information about products and services from national media sources

Question 28

What is "The Millennial Generation" also known as?

A) the Baby Boomers generation
B) Generation Next
C) Generation X
D) the Tweens generation

Question 29

In terms of numbers, which age group is the largest?

A) baby boomers
B) Generation X
C) 9/11 Generation
D) World War II Generation

Question 30

Compared with other ethnic groups, what best describes the Chinese Canadian ethnic group in Canada?

A) small and homogenous
B) small and heterogeneous
C) large and homogenous
D) large and heterogeneous

Question 31

What type of segmentation is a company that markets its breakfast cereal to children using to segment its markets?

A) psychographic
B) demographic
C) end-use
D) geographic

Question 32

What is the group born between 1966 and 1981, now generally in their 30s to 40s, often referred to as?

A) baby boomers
B) teenagers
C) seniors
D) Generation X

Question 33

What is another name for socioeconomic market segmentation?

A) product-related segmentation
B) demographic segmentation
C) psychographic segmentation
D) geographic segmentation

Question 34

LuLuLemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, what type of segmentation is LuLuLemon Athletica is using?

A) geographic
B) psychographic
C) demographic
D) core based

Question 35

What does the cohort effect describe?

A) why members of the same psychographic group decide to vote the same way
B) how Generation X uses its financial power to influence product trends
C) the predictability of demographic characteristics in analyzing purchase habits, as well as product-usage rates, and brand preference
D) the tendency of members of a generation to be influenced and bound together by events occurring during the key formative years

Question 36

Which of the following is NOT a life-cycle stage?

A) unmarried
B) first-child families
C) remarried
D) empty nesters

Question 37

Ford Motor Company surveyed 10,000 customers to analyze their needs and preferences in automobiles. At the end of the survey, respondents were asked to provide demographic information, including age. Responses concerning preferences were strikingly similar for each group within a specific five-year age range. What is this a result of?

A) income effect
B) life-cycle effect
C) cohort effect
D) global-generation effect

Question 38

What does the family life cycle refer to?

A) a way to apply psychographic segmentation
B) the process of family formation and dissolution
C) insights into relationships among age, occupation, income, and housing
D) the 11 stages of personal growth from infancy to retirement

Question 39

What type of segmentation defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle?

A) geographic
B) end-use
C) product-based
D) demographic

Question 40

What is the group born between 1947 and 1965 and are a popular segment to target because of their numbers and income levels called?

A) gaby boomers
B) Generation X
C) Generation Y
D) tweens

Question 41

When can product-usage segmentation be an important tool for marketers?

A) as they attempt to eliminate competition
B) as they attempt to identify heavy users
C) as they attempt to reduce costs from 80 percent to 20 percent
D) as they attempt to increase profitability

Question 42

Which segmentation approach is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?

A) psychographic
B) demographic
C) geographic
D) product-based

Question 43

Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment. Today, Joshua is earning $60,000 annually. According to Engel's laws, what percentage of income will he spend on his new apartment?

A) less than 19 percent
B) about 28 percent
C) about 52 percent
D) more than 71 percent

Question 44

Which factor falls under the resource dimension of the VALS system?

A) social attitudes
B) primary motivation
C) eagerness to buy
D) political views

Question 45

According to Engel's laws, what happens as family income increases?

A) the percentage spent on recreation and education increases
B) the percentage spent for clothing and household operations increases
C) the percentage spent for food and household operations decreases
D) the percentage spent on housing and food decreases

Question 46

A marketer of a new brand of outdoor furniture wants to know more about the personalities and lifestyles of the intended consumer market in order to help match its product offerings with this segment's needs. What would be wise to use as a means of achieving this goal?

A) demographic segmentation
B) geographic segmentation
C) psychographic segmentation
D) geographic information systems

Question 47

VALS™ defines eight personality types that impact purchasing decisions. Which of the following set of traits is NOT part of the VALS matrix?

A) Achievers and Strivers
B) Experiencers and Survivors
C) Thinkers and Believers
D) Makers and Definers

Question 48

Why is segmentation by benefits used?

A) to determine the marketer's effectiveness in satisfying the consumer
B) to measure brand loyalty
C) to evaluate post-consumption
D) to focus on the attributes that people seek in a product

Question 49

What type of segmentation divides a population into groups with similar psychological characteristics, values, and lifestyles?

A) demographic
B) polymorphic
C) psychographic
D) parallelgraphic

Question 50

What is the product-related segment of the consumer market that is based on the attributes people seek when they buy a product?

A) price-shopper
B) lifestyle
C) expenditure pattern
D) benefits-sought

Question 51

What does the VALS segmentation system categorize consumers based on?

A) religious affiliations
B) political views
C) self-motivation
D) social values

Question 52

Who does the "empty nest" stage in the family lifecycle include?

A) young unmarried people
B) married couples whose children are living on their own
C) married couples with children in their growing years
D) newly married couples without children

Question 53

Which change is seen as a result of a rise in households with only one person?

A) increase in apartment building developments
B) decrease in the average size of new cars
C) decrease in the marketing of vacations
D) increase in single-serve food products

Question 54

According to researchers in the past decade, what has been an observed change in family life cycle behaviour?

A) the tendency of unmarried people becoming customers for new homes and expensive furnishings
B) the tendency of newly married people cooking at home almost every meal instead of dining out
C) the tendency of "boomerang" children returning home, sometimes with their own families
D) the tendency of parents with a second or subsequent child buying new sets of cribs, changing tables, and so forth for each child

Question 55

How can the use of demographic segmentation abroad be characterized?

A) challenging, because many countries do not take regular censuses
B) standardized, with most countries using the same global guidelines
C) simplified, due to the wealth of income data available in certain countries, such as Italy and Japan
D) sometimes worthless, because the integrity of the data is called into question

Question 56

In the VALS system, how can action-motivated consumers be described?

A) They have a set of ideas and morals or principles they live by.
B) They are influenced by symbols of success.
C) They seek physical activity, variety, and adventure.
D) They have high energy level and are eager to buy products.

Question 57

What is psychographic segmentation based on?

A) quantitative side of the consumer demographic analysis
B) quantitative side of the consumer geographic analysis
C) individual's residential patterns and life cycle preferences
D) group's psychological characteristics, values, and lifestyles

Question 58

What type of products would a young single person setting up an apartment for the first time most likely to be a good prospect for?

A) expensive furnishings
B) luxury cars, personalized gifts, and power tools
C) small home appliances such as coffee makers and toasters
D) health care products and insurance policies

Question 59

How does the VALS system categorize consumers who are influenced by symbols of success?

A) action-motivated
B) achievement-motivated
C) principle-motivated
D) self-expression motivated

Question 60

What is the largest segment that values professional and material goals more than other groups?

A) strivers
B) devouts
C) altruists
D) fun seekers

Question 61

What is the product-related segmentation of consumers that is based on the strength of their attachment and allegiance to their preferred products?

A) values and lifestyles
B) business-to-business
C) psychographic
D) brand loyalty

Question 62

What is the purpose of conducting market segmentation and market opportunity analysis in the second stage of the market segmentation process?

A) to identify the specific members of each segment and contact each of them directly
B) to determine the level of resources that must be committed to each segment
C) to produce a forecast of market potential within each segment
D) to design a marketing strategy and tactics to reinforce the firm's image

Question 63

What factor sets the upper limit on demand generated by a particular market segment?

A) market potential for the segment under analysis
B) market share held by the firm
C) geographic dispersion of potential customers
D) lifestyle characteristics of area population

Question 64

Which of the following describes the 80/20 principle?

A) Market segmentation succeeds about 80 percent of the time and fails 20 percent.
B) Roughly 80 percent of total product sales come from 20 percent of customers.
C) Roughly 80 percent of the market segment is tapped and 20 percent has not yet been reached.
D) Roughly 80 percent of the market can be segmented and 20 percent cannot.

Question 65

Which statement best describes an undifferentiated marketing strategy?

A) It involves developing different marketing mixes for different segments.
B) It benefits from the control and efficiency of short production runs.
C) It is also known as a concentrated marketing strategy.
D) It is efficient from a production point of view.

Question 66

In the process of market segmentation, what is the next step once market potential has been estimated?

A) forecast probable market share
B) determine potential sales
C) develop a marketing mix
D) seek strategies to meet the outcomes

Question 67

The Gap markets apparel to children, teens, and adults through different storefronts, including The Gap, Gap Kids, and Baby Gap. What is this practice called?

A) undifferentiated marketing
B) differentiated marketing
C) mass marketing
D) micromarketing

Question 68

What is a frequent flyer program used by an airline an example of?

A) segmentation by benefits sought
B) brand loyalty segmentation
C) psychographic segmentation
D) socioeconomic segmentation

Question 69

What would be the best choice of product to market using an undifferentiated marketing strategy?

A) luxury automobiles
B) snack foods
C) table salt
D) imported wine

Question 70

What type marketing strategy focuses on producing several products and pricing, promoting, and distributing them with several marketing mixes designed to satisfy smaller segments?

A) mass
B) differentiated
C) societal
D) demographic

Question 71

CoreLogix Inc. has segmented the market as per product usage rates. They have also developed the relevant profile for each of their segments. What would be the next logical step for them in this process of segmentation?

A) commit resources in developing one or more segments
B) forecast market potential
C) forecast probable market share
D) design specific marketing strategy

Question 72

Regina is an independent strategy consultant. She has guided her client's company through the market segmentation process and has posed the question: "Does the potential for achieving company goals justify committing resources to develop each or any of these segments?" What stage of the market segmentation process is the company at?

A) estimating cost-benefit for each segment
B) developing a relevant profile for each segment
C) forecasting market potential
D) selecting specific market segments

Question 73

What strategy is sometimes referred to as mass marketing?

A) concentrated marketing
B) macromarketing
C) undifferentiated marketing
D) differentiated marketing

Question 74

What can sometimes drive a company from undifferentiated to differentiated marketing?

A) competitive pressures
B) efficient production
C) homogeneous products
D) lower promotional costs

Question 75

A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. What approach is this an example of?

A) segmentation by benefits sought
B) geographic segmentation
C) segmentation by usage rates
D) distributive segmentation

Question 76

Why can an undifferentiated marketing strategy be considered efficient?

A) It serves the consumer better because the products offered are designed to meet the needs of a specific group of people.
B) It maintains control of short production runs.
C) It captures high profits in small segments of the market.
D) It supports mass production and promotion.

Question 77

While researching the idea of opening his own health club, Tomas learned that 90 percent of health club members are between the ages of 18 and 49. They prefer to exercise with people of their own gender, are more likely to buy foreign-brand cars, and are urban dwellers. How can Tomas use this assembled information?

A) observational analysis
B) identifying dimensions for segmenting markets
C) forecasting total market potential
D) developing a market segment profile

Question 78

Compared to undifferentiated marketing, what can the firm that practices differentiated marketing generally expect?

A) less sales by segment
B) lower total production costs
C) greater promotional costs
D) lower inventory costs

Question 79

A marketer of a variety of meat products introduced Lunchables, a product specifically aimed at children. What strategy is the company using to reach its target market?

A) undifferentiated marketing
B) differentiated marketing
C) mass marketing
D) micromarketing

Question 80

What should a firm do before beginning the market segmentation process?

A) identify bases for segmenting markets
B) forecast total market potential
C) forecast market share
D) select target market segments