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Chapter 8: Identifying Market Segments and Targets
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. In ________ marketing, the seller engages in the mass production, mass distribution,
and mass promotion of one product for all buyers.
a. group
b. mass
c. general
d. segmented
e. differentiated
Answer: b Page: 226 Difficulty: Medium AACSB: Analytic Skills
2. The argument for ________ marketing is that it creates the largest potential market,
which leads to the lowest costs, which in turn can lead to lower prices or higher
margins.
a. niche
b. micro
c. macro
d. differentiated
e. mass
Answer: e Page: 226 Difficulty: Medium AACSB: Reflective Thinking
3. A ________ consists of a group of customers who share a similar set of needs and
wants.
a. market target
b. market group
c. market slice
d. market segment
e. market level
Answer: d Page: 226 Difficulty: Medium AACSB: Analytic Skills
4. A ________ consists of two parts: a naked solution and discretionary options.
a. differentiated market offering
b. flexible market offering
c. rigid market offering
d. vertical market offering
e. horizontal market offering
Answer: b Pages: 228 Difficulty: Hard AACSB: Analytic Skills
Part 3: Connecting with Customers
5. If a marketing manager observes that his or her market shows no natural segments
and consumers seem to have roughly the same preferences, the marketing manager
will most likely be faced with a ________ preferences pattern.
a. homogeneous
b. heterogeneous
c. diffused
d. clustered
e. scattered
Answer: a Page: 228 Difficulty: Medium AACSB: Analytic Skills
6. Procter & Gamble has many soap brands. One reason for this is that soap users tend
to group together in terms of preferences such as bleaching action, softness, stain
removal, et cetera. Which of the following preferences pattern would most likely
apply to P&G’s method of response to market needs?
a. Homogeneous preferences
b. Diffused preferences
c. Clustered preferences
d. Psychological preferences
e. Cultural preferences
Answer: c Page: 228 Difficulty: Medium AACSB: Analytic Skills
7. Marketers usually identify niches by ________.
a. dividing a segment into subsegments
b. conducting VALS tests
c. allowing consumers to gravitate toward product brands
d. examining the demographics section of The Handbook of Marketing
e. producing products that can be used in a variety of ways
Answer: a Page: 228 Difficulty: Medium
8. A niche is characterized as being all of the following EXCEPT that ________.
a. the customers in the niche have a distinct set of needs
b. the customers will pay a premium to the firm that satisfies their needs
c. the niche is not likely to attract other competitors
d. the customers generally have smaller amounts of income
e. the nicher gains certain economies through specialization
Answer: d Page: 229 Difficulty: Medium AACSB: Reflective Thinking
9. Those who favor localized marketing see national advertising as wasteful because
________.
a. it gets too up close and personal with consumers
b. it drives up manufacturing and marketing costs by reducing economies of scale
c. it magnifies logistical problems
d. it fails to address local needs
e. all of the above
Answer: d Page: 231 Difficulty: Medium AACSB: Reflective Thinking
Chapter 8: Identifying Market Segments and Targets
10. ________ combines operationally driven mass customization with customized
marketing in a way that empowers consumers to design the product service offering
of their choice.
a. Consumptionization
b. Viral marketing
c. Virtual marketing
d. Regionalization
e. Customerization
Answer: e Page: 233 Difficulty: Medium AACSB: Analytic Skills
11. All of the following are disadvantages of customerization EXCEPT that ________.
a. it requires more prior information about the customer than most customers are
willing to share
b. it is difficult to implement for complex products
c. it can raise the cost of goods by more than the customer is willing to pay
d. some customers don’t know what they want until they see the actual product
e. the product may be hard to repair and have little sales value
Answer: a Page: 233 Difficulty: Hard AACSB: Reflective Thinking
12. Regardless of the type of segmentation scheme used, the key is adjusting the
marketing program to recognize ________.
a. the level of disposable income earned by the target group
b. customer differences
c. the cost–benefit relationship of narrowing the target market
d. customer similarities
e. saturated markets
Answer: b Page: 233 Difficulty: Easy
13. If a marketer decides to segment a market based on neighborhoods, the marketer will
have chosen the ________ method of segmentation.
a. demographic
b. psychographic
c. geographic
d. cultural
e. social class
Answer: c Page: 233 Difficulty: Easy AACSB: Analytic Skills
Part 3: Connecting with Customers
14. When segmenting on the basis of family life cycle, all of the following are segment
categories EXCEPT ________.
a. young, single
b. male, female
c. young, married
d. older, married, no children under 18
e. young, married, youngest child 6 or over
Answer: b Page: 236 Difficulty: Medium AACSB: Analytic Skills
15. If a marketing manager segments the market into culture-oriented, sports-oriented, or
outdoor-oriented groups, he or she is segmenting on the basis of ________.
a. personality
b. behavioral occasions
c. user status
d. psychographic lifestyle
e. readiness stage
Answer: d Page: 241 Difficulty: Medium AACSB: Analytic Skills
16. If a market is segmented according to light, medium, and heavy product users, the
marketer segmenting this market is using the ________ as the means to segment.
a. user status
b. usage rate
c. buyer-readiness stage
d. occasion
e. benefit
Answer: b Page: 245 Difficulty: Easy AACSB: Analytic Skills
17. John and May have just divorced. Which of the following demographic segmentation
subsegment formats might be used by marketers to reach Jose or Erika?
a. Life stage
b. Benefits
c. Age segment
d. User segment
e. Occasion segment
Answer: a Page: 236 Difficulty: Medium AACSB: Reflective Thinking
Chapter 8: Identifying Market Segments and Targets
18. Men and women tend to have different attitudinal and behavioral orientations, based
partly on genetic makeup and partly on ________.
a. income
b. occupation
c. socialization
d. heredity
e. globalization
Answer: c Page: 243 Difficulty: Medium AACSB: Analytic Skills
19. ________ is the science of using psychology and demographics to better understand
consumers.
a. Psychographics
b. Segmentation
c. Clustering
d. Demographics
e. Social psychology
Answer: a Page: 241 Difficulty: Medium AACSB: Analytic Skills
20. According to the VALS segmentation system, ________ are successful, sophisticated,
active, ―take-charge‖ people with high self-esteem. Their purchases often reflect
cultivated tastes for relatively upscale, niche-oriented products and services.
a. innovators
b. thinkers
c. achievers
d. experiencers
e. believers
Answer: a Page: 242 Difficulty: Hard AACSB: Analytic Skills
21. Kim is a young professional who enjoys snowboarding and going to rock concerts
with her friends. According to the VALS eight-part typology segmentation system,
Kim is best described as a(n) ________.
a. thinker
b. achiever
c. experiencer
d. striver
e. survivor
Answer: c Page: 242 Difficulty: Medium AACSB: Analytic Skills
Part 3: Connecting with Customers
22. According to the VALS segmentation system, ________ are considered to be elderly,
passive people who are concerned about change and are loyal to their favorite brands.
a. believers
b. strivers
c. makers
d. survivors
e. experiencers
Answer: d Page: 242 Difficulty: Medium AACSB: Analytic Skills
23. A housewife requests a new treadmill for her birthday. With respect to consumer
decision roles, which role is the housewife currently playing?
a. Initiator
b. Influencer
c. Decider
d. Buyer
e. Gatekeeper
Answer: a Page: 243 Difficulty: Easy
24. The sale of turkeys in Asian countries like Hongkong, Singapore and The Philippines
is highest in December, as people buy turkeys to serve at Christmas. Supermarkets
that specifically advertise turkeys at this time of year are segmenting on the basis of
________.
a. benefits
b. user status
c. psychographics
d. demographics
e. occasion
Answer: e Page: 243 Difficulty: Easy AACSB: Analytic Skills
25. Mothers-to-be are potential users who will turn into heavy users of infant products
and services. By targeting mothers-to-be as future heavy users, producers of these
products and services are segmenting consumers on the basis of ________.
a. usage rate
b. buyer-readiness stage
c. loyalty status
d. user status
e. benefits
Answer: d Page: 245 Difficulty: Medium AACSB: Analytic Skills
Chapter 8: Identifying Market Segments and Targets
26. If a buyer is loyal to two or three different brands of soap, this buyer’s loyalty status
can be described as being among the ________.
a. switchers
b. shifting loyals
c. split loyals
d. hard-core loyals
e. antiloyals
Answer: c Page: 246 Difficulty: Easy
27. Pete always buys Purina dog food for his dog because he believes that it is the best
value for the nutritional content. Pete’s loyalty status is best described as ________.
a. split loyal
b. shifting loyal
c. consistent loyal
d. hard-core loyal
e. switcher
Answer: d Page: 246 Difficulty: Easy AACSB: Analytic Skills
28. A company can learn a great deal by analyzing the degrees of brand loyalty. For
example, by studying the ________ the company can pinpoint which brands are most
competitive with its own.
a. hard-core loyals
b. split loyals
c. shifting loyals
d. switchers
e. antiloyals
Answer: b Page: 246 Difficulty: Hard AACSB: Reflective Thinking
29. All of the following are considered to be product attitude segments EXCEPT
________.
a. synergistic
b. enthusiastic
c. positive
d. indifferent
e. hostile
Answer: a Page: 247 Difficulty: Medium AACSB: Analytic Skills
Part 3: Connecting with Customers
30. A potato chip manufacturer is concerned about consumers leaving its brand and going
to competitive alternatives. Which of the following groups (based on strength of
commitment) would be most likely to leave the company’s offering and go
somewhere else for snack products?
a. Convertible
b. Shallow
c. Average
d. Entrenched
e. Hard rocks
Answer: a Page: 248 Difficulty: Medium AACSB: Reflective Thinking
31. If a consumer group is designated based on their ―balance of disposition,‖ the
________ group can be described as one that is made up of nonusers who are as
attracted to a competing brand as they are to their current brands.
a. strongly unavailable
b. weakly unavailable
c. ambivalent
d. available
e. desirable
Answer: c Page: 248 Difficulty: Medium AACSB: Analytic Skills
32. If a marketer is seeking to segment a business market, which of the following
variables is generally felt to be the most important?
a. Personal characteristics
b. Demographic variables
c. Situational factors
d. Operating variables
e. Purchasing approaches
Answer: b Page: 249 Difficulty: Hard AACSB: Analytic Skills
33. A marketer is interested in segmenting a business market based on technology and
customer capabilities. Which of the following major segmentation variables would
most likely be used by the marketer to assist with the task?
a. Demographic variables
b. Purchasing approaches
c. Situational factors
d. Personal characteristics
e. Operating variables
Answer: e Page: 249 Difficulty: Hard AACSB: Analytic Skills
Chapter 8: Identifying Market Segments and Targets
34. A marketer is interested in segmenting a business market on ________ if the marketer
intends to eventually segment the market based on loyalty and attitudes toward risk.
a. situational factors
b. purchasing approaches
c. personal characteristics
d. operating variables
e. demographic variables
Answer: c Page: 249 Difficulty: Medium
35. A marketer interested in segmenting a business market based on ________ intends to
eventually segment the market based on power structure and purchasing criteria.
a. situational factors
b. purchasing approaches
c. personal characteristics
d. operating variables
e. demographic variables
Answer: b Page: 249 Difficulty: Medium AACSB: Analytic Skills
36. During which step of the segmentation process would the marketer group customers
into segments based on similar needs and benefits sought by the customer in solving a
particular consumption problem?
a. Step 2—segment identification
b. Step 3—segment attractiveness
c. Step 6—segment ―acid test‖
d. Step 1—needs-based segmentation
e. Step 7—marketing-mix strategy
Answer: d Page: 250 Difficulty: Medium AACSB: Reflective Thinking
37. If an organization’s marketing department wished to create ―segment storyboards‖ to
test the attractiveness of each segment’s positioning strategy, this action would most
likely occur in the ________ step of the segmentation process.
a. needs-based segmentation
b. segment identification
c. segment profitability
d. segment ―acid test‖
e. marketing-mix strategy
Answer: d Page: 250 Difficulty: Hard AACSB: Analytic Skills
38. In the ________ step of the market segmentation process, the marketer evaluates the
segment using criteria such as market growth and market access.
a. need-based segmentation
b. segment identification
c. segment attractiveness
d. segment profitability
e. segment ―acid test‖
Answer: c Page: 250 Difficulty: Hard
Part 3: Connecting with Customers
39. To meet the ________ criterion of useful market segments, it must be possible to
formulate effective programs for attracting and serving the segments.
a. measurable
b. substantial
c. accessible
d. differentiable
e. actionable
Answer: e Page: 250 Difficulty: Medium AACSB: Analytic Skills
40. If married and unmarried women respond similarly to a sale on perfume, these
hypothetical segments fail the ________ criterion for useful market segments.
a. measurable
b. substantial
c. accessible
d. differentiable
e. actionable
Answer: d Page: 250 Difficulty: Medium
41. According to the ________ criterion for useful market segments, a segment should be
the largest possible homogenous group worth going after with a tailored marketing
program.
a. measurable
b. substantial
c. accessible
d. differentiable
e. actionable
Answer: b Page: 250 Difficulty: Medium AACSB: Analytic Skills
42. In evaluating different market segments, the firm must look at two factors: the
segment’s overall attractiveness and ________.
a. company’s objectives and resources
b. the product to be sold
c. the purchasing process
d. competition’s strategies
e. the global nature of the product
Answer: a Page: 251 Difficulty: Medium AACSB: Reflective Thinking
43. Volkswagen concentrates on the small-car market and Porsche on the sports car
market. These would be examples of what is called ________.
a. single-segment concentration
b. selective specialization
c. product specialization
d. market specialization
e. full market coverage
Answer: a Page: 251 Difficulty: Easy AACSB: Analytic Skills
Chapter 8: Identifying Market Segments and Targets
44. All of the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment’s needs, a strong market presence,
operating economies through specializing in production, distribution, and promotion.
a. single-segment concentration
b. selective specialization
c. product specialization
d. market specialization
e. full market coverage
Answer: a Page: 251 Difficulty: Medium AACSB: Reflective Thinking
45. When a symphony orchestra targets people who have broad cultural interests, rather
than only those who regularly attend concerts, the orchestra is targeting ________.
a. market mavens
b. strategic segments
c. supersegments
d. occasion segments
e. psychodemographic segments
Answer: c Page: 251 Difficulty: Hard AACSB: Analytic Skills
46. The chief disadvantage to a firm that decides to follow a product specialization
strategy in selecting target markets is that ________.
a. no synergy exists
b. logistics can become a nightmare
c. the product may be supplanted by an entirely new technology
d. competitors can easily copy any new product introductions
e. e-commerce becomes difficult for the company
Answer: c Page: 251 Difficulty: Hard AACSB: Reflective Thinking
47. With ________ as a target market strategy, the firm concentrates on serving many
needs of a particular customer group.
a. single-segment concentration
b. selective specialization
c. product specialization
d. market specialization
e. full market coverage
Answer: d Page: 252 Difficulty: Easy AACSB: Analytic Skills
48. In ________ marketing, the firm operates in several market segments and designs
different products for each segment.
a. segmented
b. undifferentiated
c. differentiated
d. geodemographic
e. niche
Answer: c Page: 252 Difficulty: Easy
Part 3: Connecting with Customers
49. Johnson & Johnson broadened its target market for its baby shampoo to include
adults through ________.
a. countersegmentation
b. metamarketing
c. undifferentiated marketing
d. product specialization
e. single-segment concentration
Answer: a Page: 252 Difficulty: Medium AACSB: Analytic Skills
50. ________ is the strategic coordination of economic, psychological, political, and
public relations skills, to gain the cooperation of a number of parties in order to enter
or operate in a given market.
a. Metamarketing
b. Macromarketing
c. Micromarketing
d. Megamarketing
e. Modular marketing
Answer: d Page: 254 Difficulty: Medium AACSB: Analytic Skills
51. When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing
what is called ________.
a. primary marketing
b. micromarketing
c. macromarketing
d. segmented marketing
e. mass marketing
Answer: e Page: 226 Difficulty: Medium AACSB: Analytic Skills
52. The marketer ________ the segments; the marketer’s task is to identify the segments
and decide which one(s) to target.
a. plans
b. creates
c. does not create
d. rarely controls
e. controls
Answer: c Page: 226 Difficulty: Hard AACSB: Reflective Thinking
53. The recipe for Internet niching success is to ________.
a. find a need and fill it
b. choose a hard-to-find product that customers do not need to see and touch
c. choose a low-budget product that is heavily demanded by Gen Y
Chapter 8: Identifying Market Segments and Targets
d. choose an exclusive product sold primarily to seniors
e. find a product that has some attraction to a health-conscious market
Answer: b Page: 228 Difficulty: Medium AACSB: Reflective Thinking
54. Hilton Hotels customizes rooms and lobbies according to location. Northeastern
hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This
is an example of ________ segmentation.
a. demographic
b. behavioral
c. psychographic
d. geographic
e. user status
Answer: d Page: 233 Difficulty: Easy
55. Pampers divides its market demographically on the basis of ________ into prenatal,
new baby, baby, toddler, and preschooler.
a. life stage
b. gender
c. age
d. income
e. social class
Answer: c Page: 235 Difficulty: Easy AACSB: Analytic Skills
56. Newlyweds in the Asia buy more in the first six months than an established
household does in five years. Newlyweds are an example of a(n) ________ segment.
a. life stage
b. gender
c. behavior
d. user status
e. income
Answer: a Page: 236 Difficulty: Medium AACSB: Analytic Skills
57. Which of the following statements accurately describes what demographers are
calling the ―boom-boom effect‖?
a. Consumers are demanding more ―bang for their buck.‖
b. Baby boomers still rule the marketplace.
c. Generation X and its taste for violence will dominate the market in the future.
d. Products that appeal to 20-somethings also appeal to baby boomers.
e. Companies must have success quickly or go bust.
Answer: d Page: 238 Difficulty: Medium
58. If a marketing manager employs such marketing techniques as online buzz, student
ambassadors, cool events, and street teams to reach target markets, the manager is
most likely appealing to the ________ market.
a. pre-school
b.Generation X
Part 3: Connecting with Customers
c. Generation Y
d.Generation Z
e. latent baby boomers
Answer: c Page: 238 Difficulty: Easy AACSB: Communications
59. Mature and reflective people who seek durability, functionality, and value in products
are most likely to be categorized as ________ in the VALS system.
a. innovators
b. thinkers
c. achievers
d. experiencers
e. strivers
Answer: b Pages: 241-242 Difficulty: Medium AACSB: Analytic Skills
60. A hardware store is interested in reaching people who are characterized by the VALS
system as being practical, down-to-earth, and self-sufficient who like to work with
their hands, the ________ category.
a. believers
b.strivers
c. survivors
d.experiencers
e. makers
Answer: e Pages: 241-242 Difficulty: Hard AACSB: Reflective Thinking
61. The key to attracting potential users, or even possibly nonusers, is ________.
a. understanding the reasons they are not using
b. offering financial incentives for first-time use
c. increasing the usage rate of existing users
d. developing a new product that better meets their needs
e. increasing advertising expenditures
Answer: a Page: 245 Difficulty: Medium AACSB: Reflective Thinking
62. ________ are often a small percentage of the market but account for a high
percentage of total consumption.
a. Light users
b. Medium users
c. Heavy users
d. Nonusers
e. None of the above
Answer: c Page: 245 Difficulty: Easy
63. By analyzing the behaviors of ________, companies can learn about their marketing
weaknesses and attempt to correct them.
a. hard-core loyals
b. split loyals
c. shifting loyals
Chapter 8: Identifying Market Segments and Targets
d. switchers
e. ambivalents
Answer: d Page: 246 Difficulty: Medium AACSB: Reflective Thinking
64. Users of a brand can be segmented into several groups based on the strength of
commitment to the brand. If a brand manager is seeking to identify those users who
are actively considering alternative brands, he or she should look for users that are
labeled as ________.
a. convertible
b.shallow
c. average
d.entrenched
e. latent
Answer: b Page: 248 Difficulty: Medium
65. You have decided to take a purchasing approach to segmenting a proposed business
market. All of the following would be potential means (subsegments) for segmenting
under the ―purchasing approach‖ EXCEPT ________.
a. purchasing-function organization
b. power structure
c. specific application
d. nature of existing relationships
e. purchasing criteria
Answer: c Page: 249 Difficulty: Hard AACSB: Analytic Skills
66. If your assignment was (for each segment) to create a value proposition and product-
price positioning strategy based on the segment’s unique customer needs and
characteristics, you would be in which of the following steps of the segmentation
process?
a. Needs-based segmentation
b. Segment identification
c. Segment attractiveness
d. Segment positioning
e. Segment ―acid-test‖
Answer: d Page: 250 Difficulty: Medium AACSB: Analytic Skills
67. As a brand manager you have decided to use the ________ full market coverage
approach in marketing to your customers, whereby your firm will operate in several
market segments and design different products for each segment.
a. undifferentiated
b.differentiated
c. concentrated
d.introverted
e. parallel
Answer: b Page: 252 Difficulty: Medium AACSB: Analytic Skills
