Question 1

Lexus targets wealthy consumers with similar needs and buying behaviors,even though the consumers are located in different countries.This is an example of ________.
A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) targeting segmentation
E) psychographic segmentation

Accepted Answer

Intermarket segmentation refers to dividing the market based on similarities in consumer needs and behaviors across different regions or countries. In this case, Lexus is targeting wealthy consumers with similar needs and buying behaviors in different countries, indicating the use of intermarket segmentation.

Question 2

Oil companies segment foreign markets by overall level of economic development.This firm segments on what basis?
A) political factors
B) legal factors
C) geographic factors
D) economic factors
E) cultural factors

Accepted Answer

Oil companies segment foreign markets based on economic factors such as GDP, income levels, and market potential. Political, legal, geographic, and cultural factors may also be considered, but economic factors are typically the primary driver for market segmentation in the oil industry.

Question 3

MTV targets teenagers located in different countries.This is known as ____________ segmentation.
A) intermarket segmentation
B) international segmentation
C) regional segmentation
D) mass-market segmentation
E) micromarketing

Accepted Answer

Intermarket segmentation involves targeting consumers who have similar needs and buying behaviors across different countries.

Question 4

When the size,purchasing power,and profiles of a market segment can be determined,it possesses the requirement of being ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) observable

Accepted Answer

The requirement described matches the characteristic of being measurable, meaning that the segment can be quantified or evaluated in terms of its size, purchasing power, and other relevant aspects. The other options do not fully capture the same idea: accessible refers to how easy it is to reach or communicate with the segment, substantial refers to the segment's potential profitability or attractiveness, actionable refers to whether the segment can be effectively targeted with marketing efforts, and observable refers to whether the segment's behavior or characteristics can be perceived or monitored.

Question 5

When New Asia Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called ________ marketing.
A) undifferentiated
B) differentiated
C) target
D) individual
E) niche

Accepted Answer

Segmented marketing involves targeting several segments with separate offers, which is the definition of differentiated marketing. Undifferentiated marketing involves targeting everyone in the same way, target marketing involves targeting a specific group, individual marketing involves customizing products for individuals, and niche marketing involves targeting a small specific group.

Question 6

ByWay Pte Ltd chose a differentiated marketing strategy.The company had to weigh ________ against ________ when selecting this strategy.
A) extra research; costs
B) sales analysis; sales
C) increased sales; increased costs
D) geographic segmentation; demographic segmentation
E) attitudes; perceptions

Accepted Answer

By choosing a differentiated marketing strategy, ByWay Pte Ltd is aiming to target multiple segments of the market with different products or marketing strategies. While this can lead to increased sales, it also comes with increased costs, such as research and development, production costs, and marketing expenses. Therefore, the company had to weigh the potential for increased sales against the higher costs associated with this strategy.

Question 7

Successful niche marketing is most dependent on a firm's ________ and its ________.
A) promotions strategy; services
B) individual relationships with customers; positioning
C) superior products; value network partners
D) greater knowledge of customers' needs; special reputation
E) competitive advantage in comparison to mass-market companies; affordable pricing

Accepted Answer

Successful niche marketing depends on a firm's greater knowledge of customers' needs to offer niche-specific products or services and its special reputation as a provider of those products or services within that niche market.

Question 8

The markets you have chosen to serve in four Asian cities can be effectively reached and served.You would tell the marketing manager that these segments are ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) profitable

Accepted Answer

The term "accessible" refers to the ability to effectively reach and serve the chosen market segments in the four Asian cities.

Question 9

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as ________.
A) accessible
B) measurable
C) reachable
D) actionable
E) differentiable

Accepted Answer

When a segment is actionable, it implies that an effective program can be designed specifically for attracting and serving that segment, making it a practical target for marketing efforts.

Question 10

Which of the following is NOT one of the reasons a segment would be less attractive to a company?
A) strong competitors
B) substitute products
C) concentrated market
D) power of buyers
E) power of suppliers

Accepted Answer

A concentrated market, implying a market dominated by a few large players, can actually make a segment more attractive if a company can secure a strong position within it. The other options (strong competitors, substitute products, power of buyers, and power of suppliers) all present challenges that can make a segment less attractive.

Question 11

As in consumer segmentation,many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets.
A) geographic; demographic
B) user status; user loyalty
C) benefits; buying behavior
D) age and life-cycle; psychographic
E) income; usage rate

Accepted Answer

Business markets are focused on specific benefits and behaviors, rather than demographics or geographic locations. Therefore, benefit and buying behavior segmentation provide the most useful basis for segmenting business markets. User status and user loyalty may also be relevant variables in B2B segmentation, but they are not as commonly used as benefits and buying behavior. Age and life-cycle and psychographic segmentation are typically more relevant in B2C segmentation, while income and usage rate may be important in certain B2B markets but are not as widely applicable as benefit and behavior-based segmentation.

Question 12

In general,a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; mass market its products
E) offer lower prices; develop customer loyalty

Accepted Answer

A company should focus on segments where it has a competitive advantage and can offer superior value compared to its competitors. This will allow the company to attract and retain customers, and ultimately gain market share. Simply offering lower prices or faster shipping may not be enough to ensure long-term success in a particular segment.

Question 13

Developing a strong position within several segments creates more total sales than ________ marketing across all segments.
A) undifferentiated
B) differentiated
C) niche
D) target
E) individual

Accepted Answer

Undifferentiated marketing treats all segments the same, which can lead to less effective positioning and lower total sales compared to developing strong positions in multiple segments.

Question 14

Mass marketers,such as BHG and Robinsons department stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?
A) undifferentiated marketing
B) differentiated marketing
C) target marketing
D) concentrated marketing
E) micromarketing

Accepted Answer

BHG and Robinsons department stores use undifferentiated marketing which means they ignore market segment differences and target the entire market with one offer. This approach is also known as mass marketing.

Question 15

The 55-year-old baby boomers share common needs in music and performers.When a music company decides to serve this group,the group is called a(n)________.
A) market segment
B) target market
C) niche market
D) micro market
E) undifferentiated market

Accepted Answer

The group of 55-year-old baby boomers is a specific market segment that a music company can target with specific marketing strategies and products. Therefore, the best choice is B- target market.

Question 16

Clean Pte Ltd sells six brands of laundry detergent in Southeast Asia,each designed for one of six laundry segments identified.Together,these six brands take 62% of market share.Which of the following is a disadvantage of Clean Pte Ltd's differentiated marketing strategy?
A) lost sales that would have been made with an undifferentiated marketing strategy across all segments
B) lost customer loyalty due to lack of brand loyalty
C) increased costs for separate marketing plans for each brand
D) other suppliers controlling pricing
E) lack of resources to succeed in an attractive segment

Accepted Answer

The disadvantage of Clean Pte Ltd's differentiated marketing strategy is increased costs for separate marketing plans for each brand. This strategy requires a significant investment in research, development, and marketing for each brand to appeal to its specific segment, leading to higher costs compared to an undifferentiated strategy.

Question 17

Brian Ho has compiled a list of things that make segments more attractive.Which one of the following items should NOT be on the list?
A) relative power of buyers
B) lack of powerful suppliers to control prices
C) few substitute products
D) competition with superior resources
E) financial resources

Accepted Answer

Competition with superior resources would not make a segment more attractive, as it would make it harder for companies to compete effectively within that segment. The other options (A, B, C, and E) would all make a segment more attractive by reducing competition or increasing profitability.

Question 18

You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.These segments are ________.
A) accessible
B) measurable
C) reachable
D) differentiable
E) observable

Accepted Answer

Conceptual distinguishability is an important characteristic of effective market segments. The segments that respond differently to different marketing mix elements and programs are known as differentiable. The other choices refer to different characteristics of market segments, but they do not address the issue of conceptual distinguishability.

Question 19

To evaluate the different market segments your company serves,you would look at all of these factors EXCEPT which one?
A) segment size
B) segment growth
C) segment structural attractiveness
D) company values
E) company resources

Accepted Answer

Company values are not a factor used to evaluate market segments. The other factors listed (segment size, segment growth, segment structural attractiveness, and company resources) are all important considerations when determining which market segments a company should target.

Question 20

When a business market segment is large or profitable enough to serve,it is termed ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable

Accepted Answer

When a market segment is large or profitable enough to serve, it is considered substantial. Measurable refers to the ability to quantitatively measure the segment, accessible refers to the ability to reach the segment, actionable refers to the ability to take action to attract the segment, and differentiable refers to the segment being unique and different from others.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Lexus targets wealthy consumers with similar needs and buying behaviors,even though the consumers are located in different countries.This is an example of ________.

Oil companies segment foreign markets by overall level of economic development.This firm segments on what basis?

MTV targets teenagers located in different countries.This is known as ____________ segmentation.

When the size,purchasing power,and profiles of a market segment can be determined,it possesses the requirement of being ________.

When New Asia Shipping uses segmented marketing,it targets several segments and designs separate offers for each one.This approach is called ________ marketing.

ByWay Pte Ltd chose a differentiated marketing strategy.The company had to weigh against when selecting this strategy.

Successful niche marketing is most dependent on a firm's and its .

The markets you have chosen to serve in four Asian cities can be effectively reached and served.You would tell the marketing manager that these segments are ________.

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as ________.

Which of the following is NOT one of the reasons a segment would be less attractive to a company?

As in consumer segmentation,many marketers believe that and segmentation provide the best basis for segmenting business markets.

In general,a company should enter only segments in which it can and .

Developing a strong position within several segments creates more total sales than ________ marketing across all segments.

Mass marketers,such as BHG and Robinsons department stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

The 55-year-old baby boomers share common needs in music and performers.When a music company decides to serve this group,the group is called a(n) ________.

Clean Pte Ltd sells six brands of laundry detergent in Southeast Asia,each designed for one of six laundry segments identified.Together,these six brands take 62% of market share.Which of the following is a disadvantage of Clean Pte Ltd's differentiated marketing strategy?

Brian Ho has compiled a list of things that make segments more attractive.Which one of the following items should NOT be on the list?

You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.These segments are ________.

To evaluate the different market segments your company serves,you would look at all of these factors EXCEPT which one?

When a business market segment is large or profitable enough to serve,it is termed ________.