Question 1

Lifestyle characteristics and personality characteristics are two types of variables used in segmentation.
A)demographic
B)user status
C)psychographic
D)behavioral
E)social class

Accepted Answer

Lifestyle characteristics and personality characteristics fall under the category of psychographic variables, which include attitudes, values, interests, and behaviors. Demographic variables include age, gender, income, education, etc. User status and behavioral variables measure the buying behavior of customers, while social class is also a demographic variable that classifies customers based on their income, occupation, and education.

Question 2

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

Accepted Answer

Mass marketers use an undifferentiated marketing approach where they do not tailor their offer to specific market segments but instead target the whole market with one offer.

Question 3

When it first opened for business,Home Depot claimed to offer better products at lower prices.This hard- to- sustain value proposition is called .
A)more- for- more
B)same- for- less
C)more- for- the- same
D)same- for- more
E)more- for- less

Accepted Answer

The value proposition "more-for-less" refers to offering better products at lower prices, which is what Home Depot claimed when it first opened.

Question 4

What are the four steps,in order,to designing a customer- driven marketing strategy?
A)market alignment,market segmentation,differentiation,and market positioning
B)market segmentation,differentiation,positioning,and targeting
C)positioning,market segmentation,mass marketing,and targeting
D)market recognition,market preference,market targeting,and market insistence
E)market segmentation,targeting,differentiation,and positioning

Accepted Answer

The four steps, in order, to designing a customer-driven marketing strategy are market segmentation, targeting, differentiation, and positioning. This process involves dividing the market into segments, selecting the most attractive segments to target, creating a unique value proposition for each segment, and positioning the product or service in the minds of the target customers.

Question 5

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage,expertise,and performance?
A)people differentiation
B)services differentiation
C)channel differentiation
D)price differentiation
E)product differentiation

Accepted Answer

Channel differentiation is the type of differentiation that is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance. By having a well-designed and executed distribution channel, a company can improve its reach, speed, and reliability in getting its products or services to the target market. This can lead to increased customer satisfaction, loyalty, and sales, which can ultimately provide a competitive edge over rivals who may have less effective or efficient channels.

Question 6

Neiman Marcus claims superior quality,performance,and style.The owners provide the most upscale products and services and charge a higher price to cover the higher costs.What type of positioning does Neiman Marcus use?
A)more- for- less
B)repositioning
C)more- for- the- same
D)more- for- more
E)the- same- for- less

Accepted Answer

Neiman Marcus positions itself as offering "superior quality, performance, and style" along with upscale products and services, which justifies their higher prices. This is an example of the "more-for-more" positioning strategy, where a company offers higher quality or better features and charges a higher price to cover the increased costs.

Question 7

"Less- for- much- less" positioning involves meeting consumers' .
A)lower quality requirements at the lowest possible price
B)lower quality requirements in exchange for a lower price
C)high quality requirements at a discounted rate
D)quality performance requirements at a lower price
E)high quality requirements at the lower possible price

Accepted Answer

"Less-for-much-less" positioning means offering lower quality requirements in exchange for a lower price. This strategy helps companies target price-sensitive customers who are willing to compromise on quality for a cheaper price.

Question 8

Few people can afford the best in everything they buy.At times everyone needs a product with less quality or performance with a correspondingly lower price.In this case a consumer would purchase a product positioned with a _ strategy.
A)same- for- less
B)all- or- nothing
C)more- for- the- same
D)less- for- much- less
E)more- for- less

Accepted Answer

The "less-for-much-less" strategy refers to a lower quality or lower performing product with a significantly lower price that is targeted toward consumers who cannot afford the higher-end products. This strategy is also known as the "economy" strategy. Therefore, the best choice is D.

Question 9

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

Accepted Answer

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

Question 10

Which of the following statements illustrates why stereotypes should be avoided when using age and life- cycle segmentation?
A)Some 70 year olds use wheelchairs;others play tennis.
B)The majority of 20 year olds have to work;the same holds true for 30 and 40 year olds.
C)Old women love to shop;young women love it more!
D)Most 10- year- old boys are mischievous.
E)both C and D

Accepted Answer

This statement illustrates why stereotypes should be avoided when using age and life-cycle segmentation by showing that people of the same age can have vastly different abilities and interests. Stereotyping based on age can lead to incorrect assumptions and ineffective marketing strategies.

Question 11

Today,the low cost of setting up shop makes it even more profitable to serve very small niches.
A)in malls in major cities
B)far from competitors
C)on the Internet
D)near major competitors
E)in central business districts

Accepted Answer

The low cost of setting up shop is mainly applicable to online businesses as they do not require physical space and incur lower overhead costs compared to brick-and-mortar stores. Therefore, serving very small niches on the internet can be highly profitable.

Question 12

Using concentrated marketing,the marketer goes after a share of _ .
A)large;the mass market
B)small;a small market
C)large;one or a few niches
D)small;a large market
E)moderate;local

Accepted Answer

Concentrated marketing involves focusing on one or a few specific niches in a larger market. Therefore, the marketer is going after a large market but only targeting a small segment within that market.

Question 13

When comparing itself to its competitors,Hidden Valley describes its Ranch dressing as the original.This is the the manufacturer has planned for the product.
A)market segment
B)position
C)services differentiation
D)marketing mix
E)channel differentiation

Accepted Answer

The description of their Ranch dressing as the original indicates that Hidden Valley is positioning itself as the first and, therefore, the best in the market. This is a deliberate positioning strategy that sets Hidden Valley apart from its competitors.

Question 14

Sanguine Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches.Sanguine practices which one of these strategies?
A)mass
B)concentrated
C)geographically dispersed
D)differentiated
E)undifferentiated

Accepted Answer

Sanguine Services is practicing a concentrated marketing strategy by going after two small niches with its limited resources. This strategy allows the company to focus its marketing efforts and resources on a specific target market, potentially leading to better results and higher efficiency.

Question 15

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent.Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase.Within three months,the writing utensils were a hit! Herb Marks had never thought of marketing his talent,but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources,Herb contacted three additional specialty shops within 100 miles.He explained his
manufacturing processes and engraving options to each.All three shops' owners placed a trial order.Within two months,just prior to the holiday season,each shop owner placed an additional order.Herb was ecstatic!
"I figured business would slow down after that," Herb stated,"but in February I was contacted by Elmore Distributors.At that point,I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven- state area.Herb was offered a two- year contract and immediate inclusion in Elmore's promotional flyer.Herb Marks accepted the offer and,along with it,the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added."I couldn't grow out of control.I was already working to capacity."
Herb decided to place his major focus on the large contract with Elmore.However,to avoid placing his total emphasis with one customer,Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point,I had set up an assembly line in a rented building," Herb explained."I had to hire three full- time employees to work the line while I managed the customer orders and purchased materials." Herb paused."But I can't take the Elmore project for granted.It might not always be there.I'll have to have a good alternate plan if that day comes."
-If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order,he would be practicing .
A)concentrated marketing
B)local marketing
C)micromarketing
D)undifferentiated marketing
E)mass customization

Accepted Answer

Mass customization involves tailoring products to meet the specific needs of individual customers. This is what Herb would be doing if he produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order.

Question 16

When Pacific Fisheries groups its customers by regions such as Asia,Australia,or New Zealand,it is using which segmenting base?
A)political and legal factors
B)demographics
C)economic factors
D)benefits sought
E)geographic location

Accepted Answer

Pacific Fisheries is using geographic location as a segmenting base when it groups its customers by regions such as Asia, Australia, or New Zealand.

Question 17

The division of buyers into groups based on their knowledge,attitudes,uses,or responses to a product is segmentation.
A)age and life cycle
B)psychographic
C)demographic
D)behavioral
E)geographic

Accepted Answer

Behavioral segmentation divides buyers based on their behaviors, such as their usage rates, brand loyalty, and response to marketing efforts. The other options (A, B, C, E) represent different types of segmentation, but do not specifically focus on behaviors.

Question 18

Cheap Heaps Auto specializes in lower quality vehicles,with a few dents,that are priced a great deal lower than other used cars.Cheap Heaps has chosen to position its products with a strategy.
A)more- for- the same
B)same- for- less
C)less- for- much- less
D)more- for- less
E)A or C

Accepted Answer

Cheap Heaps Auto's strategy is to offer lower quality vehicles with a few dents at a significantly lower price compared to other used cars. This positioning aligns with the "less-for-much-less" strategy, where customers receive a lower quality product for a significantly lower price. Option C best describes this strategy. Option A, "more-for-the-same," would suggest that Cheap Heaps is offering higher quality vehicles for the same price, which is not the case. Option B, "same-for-less," does not accurately reflect the lower quality of the vehicles that Cheap Heaps is offering. Option D, "more-for-less," is not applicable because Cheap Heaps is not offering higher quality vehicles for less money. Therefore, the best choice is C.

Question 19

You have just created the "perfect" ad.It communicates the full mix of benefits upon which the brand is differentiated and positioned.This full positioning of the brand is called .
A)value profiling
B)differentiated marketing
C)target marketing
D)its value proposition
E)capturing the consumers' attention

Accepted Answer

The full mix of benefits upon which the brand is differentiated and positioned is called the brand's value proposition. So, the "perfect" ad that communicates the full mix of benefits upon which the brand is differentiated and positioned is communicating the brand's value proposition. Therefore, the correct answer is D) its value proposition.

Question 20

Which of the following is the narrowest marketing strategy?
A)undifferentiated marketing
B)differentiated marketing
C)local marketing
D)mass marketing
E)segmented strategy

Accepted Answer

Local marketing targets a specific geographical area with customized marketing mix elements according to the local consumer preferences and demographics. It is the narrowest marketing strategy as it focuses on a very small and specific group of consumers. The other strategies are broader as they target larger consumer segments or the entire market.

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

Lifestyle characteristics and personality characteristics are two types of variables used in segmentation.

Mass marketers,such as Target and Venture Stores,often ignore market segment differences and target the whole market with one offer.What is their approach to segmenting?

When it first opened for business,Home Depot claimed to offer better products at lower prices.This hard- to- sustain value proposition is called .

What are the four steps,in order,to designing a customer- driven marketing strategy?

Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage,expertise,and performance?

Neiman Marcus claims superior quality,performance,and style.The owners provide the most upscale products and services and charge a higher price to cover the higher costs.What type of positioning does Neiman Marcus use?

"Less- for- much- less" positioning involves meeting consumers' .

Few people can afford the best in everything they buy.At times everyone needs a product with less quality or performance with a correspondingly lower price.In this case a consumer would purchase a product positioned with a _ strategy.

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

Which of the following statements illustrates why stereotypes should be avoided when using age and life- cycle segmentation?

Today,the low cost of setting up shop makes it even more profitable to serve very small niches.

Using concentrated marketing,the marketer goes after a share of _ .

When comparing itself to its competitors,Hidden Valley describes its Ranch dressing as the original.This is the the manufacturer has planned for the product.

Sanguine Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches.Sanguine practices which one of these strategies?

When Pacific Fisheries groups its customers by regions such as Asia,Australia,or New Zealand,it is using which segmenting base?

The division of buyers into groups based on their knowledge,attitudes,uses,or responses to a product is segmentation.

Cheap Heaps Auto specializes in lower quality vehicles,with a few dents,that are priced a great deal lower than other used cars.Cheap Heaps has chosen to position its products with a strategy.

You have just created the "perfect" ad.It communicates the full mix of benefits upon which the brand is differentiated and positioned.This full positioning of the brand is called .

Which of the following is the narrowest marketing strategy?