Deck 9: Market Segmentation, Targeting, and Positioning

Question 1

Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers.This strategy is an example of

A)market segmentation.
B)mass customization.
C)customized manufacturing.
D)single chain marketing.
E)market specific selection.

Answer 1

A

Question 2

Which of the following statements regarding market segmentation is MOST ACCURATE?

A)Even if a firm finds only one potential market segment,it should take advantage of the opportunity,no matter what.
B)Market segmentation only works for large corporations because small businesses don't have the resources to engage in the process nor implement the resulting marketing actions.
C)Governments should not attempt market segmentation because there is no need for them to do so.
D)If a business firm goes to the trouble and expense of segmenting its markets,it expects to increase its sales,profits,and return on investment.
E)Market segmentation strategies work less than 25% of the time.However,for those instances that it does work,the benefits more than compensate for previous failures.

Answer 2

D

Question 3

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

A)pay attention to marketing messages.
B)respond similarly to a marketing action.
C)be responsive to marketing research.
D)use the same payment methods.
E)comply with the organization's core values.

Answer 3

B

Question 4

Building open and honest relationships with communication is an example of Zappos' __________.

A)profile for its target market
B)core values being adapted from its new owner,Amazon.com
C)ten core values for Zappos' culture
D)qualities required of Zappos' suppliers
E)qualities required of Zappos' retailers

Question 5

The Zappos segmentation strategy is based on

A)offering the best selection of shoes and the best service to online shoppers.
B)designing shoes for every type of occasion.
C)dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D)offering the best selection of shoes through multiple channels of distribution.
E)maintaining the simplest method of price points to make the purchase process as simple as possible for its customers.

Question 6

To be identified as a market segment,its members must

A)have common needs and respond similarly to a marketing action.
B)represent a large share of the entire market and have buying power.
C)have different needs and have potential for future growth.
D)have different needs and respond similarly to market actions.
E)have the potential for future growth and increased profit or ROI.

Question 7

Market segmentation involves aggregating prospective buyers into groups that (1)will respond similarly to a marketing action and (2)

A)respond similarly to marketing messages.
B)have similar shopping styles.
C)will become loyal customers.
D)will become stakeholders of the organization.
E)have common needs.

Question 8

The primary focus of Zappos' market segmentation strategy is to sell

A)a wide selection of shoes,clothes,accessories,and housewares to people who will buy them online.
B)a wide selection of leather shoes and boots to retailers.
C)all types of shoes,accessories,and clothing to department stores.
D)Spanish novelties and accessories to organizations.
E)shoes in its own retail stores.

Question 9

Market segments refer to

A)the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
B)all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
C)the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
D)the relatively homogenous groups of prospective buyers that result from the market segmentation process.
E)all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Question 10

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

A)increase sales and profitability.
B)stand up to legal scrutiny.
C)be socially responsible.
D)create sustainable demand.
E)produce product differentiation.

Question 11

Market segmentation stresses __________ and relating them to specific marketing actions.

A)grouping people randomly within a market
B)grouping people according to similar needs
C)splitting people randomly within a market
D)dividing people into the smallest groups possible
E)identifying potential new buyers who are not yet familiar with a new product

Question 12

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

A)consumer differentiation.
B)psychographics.
C)market segmentation.
D)market delineation.
E)aggregation marketing.

Question 13

The aggregation of prospective buyers into groups that (1)have common needs and (2)will respond similarly to a marketing action is referred to as __________.

A)market diversification
B)market differentiation
C)market segmentation
D)market augmentation
E)market repositioning

Question 14

Market segmentation involves aggregating prospective buyers into groups that (1)__________ and (2)will respond similarly to a marketing action.

A)respond similarly to marketing messages
B)have similar shopping styles
C)will become loyal customers
D)have common needs
E)will become stakeholders of the organization

Question 15

Tony Hsieh,CEO of Zappos,offers $2,000 to anyone who

A)identifies a completely new market segment with a product to match it.
B)finds a way of improving service to online customers.
C)takes the customer loyalty training class and decides to quit anyway.
D)finds a shoe-related product that Zappos does not already carry.
E)creates a humorous theme for one of the monthly company meetings.

Question 16

Which of the following statements about Zappos is most accurate?

A)Zappos limits its inventory to a selection of high-end fashion footwear.
B)Zappos carries more than 1,000 different brands.
C)Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
D)Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else."
E)Zappos offers a 30/60/90 return policy whereby refunds are based on how long you've had the shoes.

Question 17

According to Tony Hsieh,CEO of Zappos,the company devotes the greatest amount of time to

A)seeking out new and unusual styles of shoes from all over the world.
B)improving the website to make it faster,more interesting,and fun.
C)seeking out new markets that will go beyond the Internet.
D)finding the fastest and least expensive modes of delivery for its products.
E)finding ways to improve customer-service levels.

Question 18

New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush,smooth,and stable ride." And its Made in America,top of the line,990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability,a stability-enhancing ABZORB^® midsole,and ENCAP to promote a healthy gait." This strategy is an example of

A)mass customization.
B)product segmentation.
C)market segmentation.
D)single chain marketing.
E)market specific selection.

Question 19

The company name Zappos was chosen because it

A)was the founder's family name.
B)conveyed in Spanish the type of product sold.
C)inferred how quickly you could purchase the product.
D)contained letters from the names of the three founders.
E)reflected the brand name of the first line of shoes they sold.

Question 20

Market segmentation refers to

A)the philosophy that to do a truly excellent job of marketing,a company should concentrate on only one customer segment at a time.
B)sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
C)disaggregating prospective buyers from groups into segments of one (individuals)and then creating specific products that will satisfy this person's unique needs.
D)aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E)the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Question 21

When Procter & Gamble introduced Crest toothpaste,the first fluoride toothpaste,it was intended for use by children and was therefore given a child-appealing bubblegum flavor.Sometime later,the same basic formula was given a fresh,minty flavor to appeal to adults.What marketing strategy did P&G use in this example?

A)product differentiation
B)product segmentation
C)market expansion
D)usage segmentation
E)psychographic segmentation

Question 22

Zappos' original target market customers consisted of people who wanted all of the following EXCEPT:

A)to receive quick delivery of their merchandise.
B)to buy sustainable shoes,accessories,and clothing.
C)to shop online in the convenience of their own homes.
D)to allow for free returns of goods if dissatisfied.
E)to have a wide selection of shoes.

Question 23

In Figure 9-1 above,"B" represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 24

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________.

A)product repositioning
B)points of difference
C)market differentiation
D)product positioning
E)product differentiation

Question 25

In marketing,each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

A)demographic cluster
B)organizational buyer group
C)market segment
D)ultimate consumer group
E)qualified prospect group

Question 26

A market-product grid refers to

A)a visual representation of all products offered within a specific product class.
B)a framework used to compare the relative market share of one firm's product offerings to those of its competitors.
C)a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
D)a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
E)a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 27

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach.Today,you can buy Original Alka-Seltzer,Extra Strength Alka-Seltzer,Alka-Seltzer Morning Relief (for morning headaches and fatigue),and Alka-Seltzer Heartburn Relief.Each Alka-Seltzer product has a unique formulation to relieve a specific malady that makes them more specialized than competing products.The maker of Alka-Seltzer is using

A)product variation.
B)product differentiation.
C)market sectioning.
D)product segmentation.
E)product base development.

Question 28

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.

A)market segments of potential buyers
B)marketing objectives of potential products
C)total anticipated revenue
D)total anticipated profit
E)market share of the closest competitor

Question 29

Product differentiation refers to

A)a good,service,or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
B)the unique combination of product benefits received by targeted buyers.
C)those characteristics of a product that make it superior to competitive substitutes.
D)a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
E)the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 30

The relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n)__________.

A)market segment
B)target market
C)customer base
D)ultimate consumer
E)preferred customer

Question 31

In Figure 9-1 above,"A" represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 32

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and

A)industry standards.
B)government regulations.
C)top-level management.
D)controllable environmental factors.
E)the organization's marketing program.

Question 33

In Figure 9-1 above,"C" represents which stage of the market segmentation process?

A)link needs to actions
B)identify market needs
C)establish a marketing protocol
D)execute marketing program actions
E)segment and select the target markets

Question 34

Apple's iPhone has a feature known as Siri that lets you use your voice to send messages,make calls,set reminders,and ask questions.This feature sets the smartphone apart from its competitors and thus provides

A)product segmentation.
B)market expansion.
C)product differentiation.
D)usage segmentation.
E)psychographic segmentation.

Question 35

Which strategy involves a firm's using different marketing mix actions to help consumers perceive the product as being different and better than competing products?

A)points of difference
B)market differentiation
C)market penetration
D)product positioning
E)product differentiation

Question 36

A market-product grid is a framework to relate

A)total estimated expenses for each product sold to each market segment.
B)total anticipated revenue for each product-market segment combination.
C)total anticipated profit for each product sold to each market segment.
D)the market segments of potential buyers to relative market share compared to the closest competitor.
E)the market segments of potential buyers to products offered or potential marketing actions by an organization.

Question 37

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program.

A)self-regulatory industry standards
B)government regulations
C)top-level management
D)buyers' or market needs
E)controllable environmental factors

Question 38

A market-product grid is a framework to relate the market segments of potential buyers to

A)estimated expenses for products sold.
B)products offered or potential marketing actions by an organization.
C)total anticipated revenue.
D)total anticipated profit.
E)market share of the closest competitor.

Question 39

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

A)demographic clusters.
B)organizational buyers.
C)ultimate consumers.
D)market segments.
E)qualified prospects.

Question 40

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.

A)payoff table
B)cross-tabulation
C)market-product grid
D)growth-share matrix
E)product differentiation table

Question 41

When expenses are greater than the potential increased sales from market segmentation,a firm should

A)not consider market segmentation at this time.
B)combine departments within the company to make the process more streamlined.
C)reduce production costs or increase prices to facilitate the segmentation process.
D)seek alternate channels of distribution,including Internet sales.
E)discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Question 42

One marketing action that can be taken to sell a single product or service to multiple market segments is to

A)develop and produce another version of the product.
B)manufacture products that appeal to different markets.
C)develop separate promotional campaigns.
D)purchase another firm that has additional products that would appeal to multiple markets.
E)issue stock to fund additional research and development for new products.

Question 43

When compared to a multiple products,multiple market segments strategy,a one product,multiple market segment strategy

A)is a much more effective means of meeting consumers' individual needs.
B)creates greater savings in production costs.
C)is a more effective way of meeting organizational objectives.
D)has significantly higher distribution costs.
E)is more profitable since a firm can charge the new segments higher prices without changing the product.

Question 44

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firm's resources most efficiently.
E)provide the best quality products on the market.

Question 45

All of the following are market segmentation strategies EXCEPT:

A)build-to-order.
B)multiple products,multiple market segments.
C)one product,multiple market segments.
D)multiple products,one segment.
E)mass customization.

Question 46

In the United States,the Harry Potter series of books were often at the top of The New York Times fiction bestseller list.These books have been marketed to preteen,teen,and adult readers around the world.Scholastic Press,the publisher of the Harry Potter books in the U.S. ,is using which of the following segmentation strategies?

A)multiple products with one segment
B)one product with one channel of distribution
C)one product with multiple market segments
D)one product with changes based on customer behavior
E)multiple products with multiple segments

Question 47

The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S.What is the basis of its market segmentation strategy?

A)psychographic segmentation
B)retail outlet segmentation
C)demographic segmentation
D)behavioral segmentation
E)geographic segmentation

Question 48

A business firm goes to the trouble and expense of segmenting its markets when

A)it changes its advertising campaign.
B)competitors enter the marketplace.
C)the environment becomes uncertain.
D)it expects that this will increase its sales,profit,and return on investment.
E)there is a recessionary economic environment.

Question 49

To create a market-product grid for bed pillows,the most effective way to segment the market would be using

A)the age of the sleeper: less than 18 years of age,18 to 44 years of age,or 45 years and older.
B)the sleeper's annual income: less than $25,000,$25,000 to $49,999,or $50,000 and over.
C)the sleeper's gender: male or female.
D)the time of sleep: day or night.
E)how the sleeper sleeps: side,back,or stomach.

Question 50

The greatest benefit to consumers when a firm chooses a one product,multiple market segment strategy is __________.

A)improved service
B)increased number of choices
C)higher product quality and consumer value
D)lower retail prices because of lower marketing costs
E)lower retail prices because of lower production costs

Question 51

Which of the following is a disadvantage of employing a multiple products,multiple market segments strategy if NOT implemented well?

A)higher sales but lower profits
B)reduced quality and higher prices
C)meeting customer needs but at the expense of higher prices
D)lower prices but with higher production costs
E)higher quality but lower prices

Question 52

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

A)side sleepers.
B)sleepers with sleep disorders,such as sleep apnea.
C)sleepers with annual incomes of $50,000 and over.
D)back sleepers.
E)stomach sleepers.

Question 53

The annual Sporting News Baseball Yearbook used 17 different covers featuring a baseball star from each of its regions in the United States.Four covers are shown above.This is an example of a(n)

A)sporting interest-based segmentation.
B)segmenting organizational markets.
C)one product and multiple market segments.
D)multiple products and multiple market segments.
E)segments of one or mass customization.

Question 54

Market segmentation helps business firms to respond more effectively to the wants of groups of potential buyers in order to

A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firm's resources most efficiently.
E)provide the best quality products on the market.

Question 55

When a firm produces only a single product or service and attempts to sell it to two or more market segments,it avoids __________.

A)the extra cost of developing and producing additional versions of the product
B)creating a customer service gap
C)indirect distribution and logistics problems
D)restructuring the firm's strategic planning
E)amortization costs of product enhancements

Question 56

A market-product grid relates the market segments to the products offered or potential marketing actions.With respect to pillows,the most effective way to segment the pillow market would be based on __________.

A)the age of the sleeper: less than 18 years of age;18 to 44 years of age;or 45 years and older
B)the sleeper's annual income: less than $25,000;$25,000 to $49,999;or $50,000 and over
C)the sleeper's gender: male or female
D)whether the sleeper has sleeping problems: yes or no
E)how the sleeper sleeps: side;back;or stomach

Question 57

Consider Figure 9-2 above.My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Its market research reveals the size of each sleeper segment,as shown by both the percentages and circles.Which market-product combination should My Pillow target?

A)stomach sleeper-firm pillow
B)back sleeper-medium pillow
C)side sleeper-firm pillow
D)stomach sleeper-soft pillow
E)side sleeper-soft pillow

Question 58

Which of the following statements regarding when and how to segment markets is most accurate?

A)Even if a firm finds only one potential market segment,it should take advantage of the method to appear cutting-edge to its competitors and customers.
B)Market segmentation only works for large corporations;small businesses don't have the resources to engage in the process.
C)Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D)If a business firm goes to the trouble and expense of segmenting its markets,it expects to increase its sales,profits,and return on investment.
E)Market segmentation strategies work less than 10 percent of the time.

Question 59

When a firm chooses a one product,multiple market segment strategy,its customers are likely to see __________.

A)improved service
B)increased number of choices
C)higher retail prices because of higher marketing costs
D)higher product quality and consumer value
E)lower retail prices because of lower production costs

Question 60

Which marketing program strategy does a firm use to sell a single product or service to multiple market segments?

A)developing and producing another version of the product
B)manufacturing different products that appeal to different markets
C)developing separate promotional campaigns for each market
D)acquiring another firm that has additional products that would appeal to multiple markets
E)issuing stock to fund additional research and development for new products

Question 61

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

Question 62

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

A)College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S.
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)Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
D)Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
E)Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 63

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.

Question 64

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.

Question 65

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)"Tiffany/Walmart" marketing.
D)economies of scale marketing.
E)build-to-order.

Question 66

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.

Question 67

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.

Question 68

Name Maker is an online company that sells 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 priced from $24.95 to $32.95 per 12-foot roll.This is an example of

A)family branding.
B)mass customization.
C)synergistic marketing.
D)"Tiffany/Walmart" marketing.
E)specialty customization.

Question 69

When a new product or a new retail chain steals customers and sales from older existing ones of an organization,this is referred to as

A)cannibalization.
B)amortization.
C)product appropriation.
D)product pilfering.
E)marketing Darwinism.

Question 70

Custom Foot operates six retail locations.At first glance,none looks any different from your basic old-fashioned shoe store,but the only boots on hand are display models.There's no inventory for sale and customers go home empty-handed-at least initially.Customers browse the store,mixing and matching design components such as style,color,and leather type.About 100 display boots provide style guidelines.Once you choose a boot style,you select materials,colors,and textures.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.

Question 71

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 sales revenues and profits,doesn't reduce quality or increase price,and

A)conforms to all FDA guidelines.
B)uses the same promotion and packaging for all segments.
C)decreases the cost of the physical plant.
D)stabilizes competition.
E)better serves customers' needs.

Question 72

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

A)aggregation
B)organizational synergy
C)segmentation
D)amalgamation
E)valuation

Question 73

Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin.This is an example of

A)mass customization.
B)multiple marketing.
C)target marketing.
D)product clustering.
E)repositioning.

Question 74

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before."Think of Model E as the Dell of the auto industry.We design just a few products that consumers truly want,leveraging best-in-class components and micro-factory approaches for rapid design,launch,and direct delivery," said William Santana Li,president and CEO of Model E.Model E manufactures each car when a customer chooses from a limited number of options and orders.Model E relies on

A)order customization.
B)a one product one market segment strategy.
C)build-to-order.
D)specialty customization.
E)mass customization.

Question 75

Which of the following is an example of a multiple products and 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 U.S.
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.

Question 76

All of the following are examples of increased customer value from organizational synergy EXCEPT:

A)lower prices
B)increased market share
C)more products
D)improved distribution
E)improved quality of existing products

Question 77

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 one,but seems worthwhile if it adds to the manufacturer's sales revenues and profits,serves customers' needs better,and

A)conforms to all FDA guidelines.
B)creates economy of scale.
C)doesn't reduce quality or increase price.
D)decreases the cost of the physical plant.
E)stabilizes the sales revenues and profits.

Question 78

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 one,but seems worthwhile if it serves customers' needs better,doesn't reduce quality or increase price,and

A)conforms to all FDA guidelines.
B)adds to the manufacturer's sales revenues and profits.
C)creates economy of scale.
D)decreases the cost of the physical plant.
E)stabilizes the sales revenues and profits.

Question 79

MyTwinn makes dolls that look like young girls.For $119,the firm will make a doll that looks just like a photograph.So,if you send in the money and a photo of your young niece,she could have a doll that is her twin! This is an example of

A)family branding.
B)"Tiffany" marketing.
C)multiple products and multiple market segments.
D)mass customization.
E)specialty customization.

Question 80

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

A)product sampling
B)product clustering
C)mass customization
D)usage segmentation
E)psychographic segmentation