Question 1

The airline industry can benefit from the implementation of CRM by .
A)reducing phone call volume
B)automating crucial information
C)identifying favored destinations
D)identifying flying patterns
E)all of the above

Accepted Answer

CRM systems can help airlines reduce phone call volume by providing self-service options, automate crucial information for efficiency, identify favored destinations and flying patterns to better understand customer preferences and improve service offerings.

Question 2

When many men in the baby boomer segment started getting gray hair,they were reluctant to use hair dyes made for women even though men were just as eager as women to fight the aging process.As a result,hair care product manufacturers introduced hair dying systems for men to use on their head and their facial hair.The hair care product manufacturers used segmentation to define its target markets.
A)socioeconomic
B)lifestyle
C)ethnicity
D)behavioral
E)demographic

Accepted Answer

The segmentation used here is demographic, as it targets a specific age group (baby boomers) and gender (men).

Question 3

Nutrisystem used ,which is the process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics ,in analyzing the dieters market.
A)segmentation
B)customerization
C)positioning
D)acculturation
E)market aggregation

Accepted Answer

Segmentation is the process of dividing a larger market into smaller pieces based on shared characteristics, which is what Nutrisystem used in analyzing the dieters market.

Question 4

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer.Some want presweetened cereal.Some want fruits and nuts in their cereal.Some people want whole- wheat cereal while others want a rice cereal.There are some who like hot cereal and others who like to eat their cereal right of the box.The diversity of consumers for cereal is an example of _ _.
A)market aggregation
B)market fragmentation
C)market similitude
D)disintermediation
E)economic aggregation

Accepted Answer

Market fragmentation refers to the division of a market into distinct groups of consumers with different needs or preferences, as illustrated by the diverse cereal preferences.

Question 5

Marketers segment regional markets more precisely using that is,people who live near one another and share similar characteristics.
A)ethnicity
B)income
C)culture
D)geocoding
E)geodemography

Accepted Answer

Geodemography refers to the study of people based on where they live, combining geographic and demographic data to segment markets more precisely.

Question 6

Age,ethnicity,geographical region,and lifestyle are all examples of .
A)positioning strategies
B)synergistic samples
C)segmentation variables
D)homogenous populations
E)sampling heuristics

Accepted Answer

These are examples of segmentation variables, which are used to divide a market into distinct groups of consumers with similar needs or characteristics.

Question 7

An area that is NOT a focus of customer relationship management (CRM)is _.
A)high value customer
B)customer equity
C)share of customer
D)lifetime value of the customer
E)promotions in a retail store

Accepted Answer

Promotions in a retail store are more related to marketing strategies rather than the core focus areas of CRM, which typically include managing customer relationships and maximizing customer value.

Question 8

If a company wanted to send e- mail to African American professional managers and business owners to promote its new employment service,it could buy a list of e- mail addresses of people who have visited BlackEnterprise.com and who have given permission for the marketing of their names and e- mail addresses.This company would be using segmentation variables.
A)behavioral
B)ethnocentric
C)geodemographic
D)demographic
E)psychographic

Accepted Answer

The answer of If a company wanted to send e-...

Question 9

Segments based on include recognizing groups such as African Americans,Hispanic Americans,and Asian Americans.
A)geocoding
B)age
C)ethnicity
D)gender
E)social class

Accepted Answer

Segments based on ethnicity include recognizing groups such as African Americans, Hispanic Americans, and Asian Americans.

Question 10

A soup company found its canned nacho cheese sauce was too hot for Americans in the East and not hot enough for those in the West and the Southwest.As a result,the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants.The company is using segmentation to satisfy these different markets.
A)geographic
B)lifestyle
C)psychographic
D)consumerist
E)usage

Accepted Answer

The company is using geographic segmentation, as it is adjusting its product based on the regional preferences of consumers in different parts of the country.

Question 11

To market Suave shampoo,Unilever used PRIZM to identify neighborhoods with high concentrations of young working women.These women responded best to advertising messages that Suave is inexpensive,yet will make their hair "look like they spend a fortune on it." What segmentation tool did Unilever use in this example?
A)psychographics
B)projective techniques
C)geodemography
D)ethnography
E)the hierarchy of needs

Accepted Answer

Unilever used geodemography, which involves segmenting markets based on geographic and demographic factors, to identify neighborhoods with high concentrations of their target demographic.

Question 12

Magazines targeted to people who love to in- line skate,to people who enjoy cooking,and to people who would prefer a simpler lifestyle use segmentation variables.
A)pychographic
B)geodemographic
C)demographic
D)socioeconomic
E)ethnographic

Accepted Answer

These magazines use psychographic segmentation, which involves dividing the market based on lifestyle, interests, and activities, such as in-line skating, cooking, or preferring a simpler lifestyle.

Question 13

A goal of CRM is to reap a return on the investments made in customer relationships and maximize the value of a firm's .
A)brand personality
B)VALS
C)customer equity
D)positioning
E)target market

Accepted Answer

Customer equity refers to the total combined customer lifetime values of all the company's customers, and maximizing it is a key goal of CRM to ensure a return on investments in customer relationships.

Question 14

In one- to- one marketing,after a marketer has identified customers and gets to know them in as much detail as possible,then the next step the the marketer .
A)needs to differentiate these customers in terms of both their needs and their value to the company
B)must interact with the customers and find ways to improve cost efficiency
C)needs to differentiate these customers in terms of only their value to the company
D)must strive toward effectiveness of the interactions with the customers
E)needs to customize some aspects of the products or services they offer to each customer

Accepted Answer

After identifying and understanding customers, the next step in one-to-one marketing is to differentiate them based on their needs and their value to the company. This helps in tailoring marketing efforts effectively.

Question 15

A company that uses a(n)targeting strategy is appealing to a broad spectrum of people.
A)undifferentiated
B)differentiated
C)concentrated
D)customized
E)fragmented

Accepted Answer

An undifferentiated targeting strategy aims to appeal to a broad spectrum of people by treating the entire market as a homogeneous group with similar needs and wants.

Question 16

Why would a company adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy?
A)to remove the need for disintermediation
B)to take advantage of economies of scale
C)to more efficiently focus on its CRM strategy
D)to move a product to the next stage of its product life cycle
E)all of the above

Accepted Answer

An undifferentiated targeting strategy allows a company to target the entire market with a single offer, which can lead to economies of scale in production, marketing, and distribution.

Question 17

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to males,as the endorser of the brand.
A)gender
B)geographic location
C)psychographics
D)lifestyle
E)age

Accepted Answer

Reebok's choice of Allen Iverson as an endorser targeted the male demographic, indicating segmentation based on gender.

Question 18

Positioning strategies often try to create a for a good or service,a distinct image that captures its character and benefits.
A)segment profile
B)trade promotion
C)FAB profile
D)brand personality
E)target market

Accepted Answer

Brand personality refers to the distinct image and character that a brand aims to convey to its audience, capturing its essence and benefits.

Question 19

The Asian American segment of the population .
A)will never be attractive to target marketers
B)is the largest ethnically based market segment
C)is the fastest growing minority group in the United States
D)has been an economically important market segment for almost five decades
E)has skrunk in the last 10 years

Accepted Answer

The Asian American segment is recognized as the fastest growing minority group in the United States, making it an attractive target for marketers.

Question 20

The group of American consumers born between 1965 and 1978 are called _.
A)Generation Y
B)baby boomers
C)tweens
D)Generation X
E)the silent majority

Accepted Answer

The group of American consumers born between 1965 and 1978 is referred to as Generation X.

Quiz 7: Sharpening the Focus: Target Marketing Strategies and Cus-Tomer Relationship Management

The airline industry can benefit from the implementation of CRM by .

Nutrisystem used ,which is the process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics ,in analyzing the dieters market.

Marketers segment regional markets more precisely using that is,people who live near one another and share similar characteristics.

Age,ethnicity,geographical region,and lifestyle are all examples of .

An area that is NOT a focus of customer relationship management (CRM) is _.

Segments based on include recognizing groups such as African Americans,Hispanic Americans,and Asian Americans.

Magazines targeted to people who love to in- line skate,to people who enjoy cooking,and to people who would prefer a simpler lifestyle use segmentation variables.

A goal of CRM is to reap a return on the investments made in customer relationships and maximize the value of a firm's .

In one- to- one marketing,after a marketer has identified customers and gets to know them in as much detail as possible,then the next step the the marketer .

A company that uses a(n) targeting strategy is appealing to a broad spectrum of people.

Why would a company adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy?

Reebok used to segment the market for basketball shoes when they chose Allen Iverson,a basketball player who appealed to males,as the endorser of the brand.

Positioning strategies often try to create a for a good or service,a distinct image that captures its character and benefits.

The Asian American segment of the population .

The group of American consumers born between 1965 and 1978 are called _.