1. A ____ is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.
A) segment
B) market
C) product
D) consumer forum
E) generic industry
2. A product-market is one in which
A) demand is inelastic.
B) products that are close substitutes for each other compete for customers by trying to satisfy very similar needs.
C) breakthrough opportunities are no longer possible.
D) one seller has a patent for a superior product and other competitors try to imitate the leader.
E) All of these alternatives are true
3. A firm's "relevant market for finding opportunities" should:
A) have no geographic boundaries.
B) be bigger than the firm's present product-market--but not so big that the firm couldn't be an important competitor.
C) be no larger than the firm's present product-market.
D) usually be named in product-related terms.
E) have no strong competitors.
4. Customer type
A) should be defined by identifying the buyer instead of the user.
B) should be assigned a nickname that describes all potential types of customers.
C) must always consider intermediaries even if they are not final users.
D) refers to the final consumer or user of a product type.
E) none of these alternatives is correct.
5. Which is the first step in market segmentation?
A) Finding one or two demographic characteristics to divide up the whole mass market.
B) Clustering people with similar needs into a market segment.
C) Naming a broad product-market of interest to the firm.
D) Evaluating market segments to determine if they are large enough.
E) None of these alternatives is the first step in market segmentation.
6. The marketing management team for Dada Motors brainstormed a variety of solutions to the problem of how to transport people in the world. This process came during the ____ step in the market segmentation process.
A) disaggregating
B) market definition
C) segmenting
D) aggregating
E) approach selection
7. According to the text, segmenting should be viewed as a(n) ______________ process.
A) assorting
B) mechanical, nonjudgmental
C) "clustering" or aggregating
D) "breaking apart" or disaggregating
E) combining
8. The main difference between naming broad product-markets and market segmentation is:
A) naming is a computerized process, while segmentation requires more thought.
B) naming is concerned with customers, while segmentation is concerned with product features.
C) naming involves breaking down markets, while segmentation involves aggregating customers with similar needs.
D) naming involves looking for similarities, while segmentation involves looking for differences.
E) None of these alternatives is correct.
9. A food processor considering snack-food opportunities identified three possible market segments and gave them "nicknames": the dieters, health faddists, and nutrition-conscious parents. It developed a marketing mix around a line of good tasting, nutritious children's snacks. The firm is apparently
A) relying on cluster analysis techniques.
B) using a multiple target market approach.
C) using a single target market approach.
D) using a combined target market approach.
E) ignoring the criteria that good market segments should be operational.
10. Watson's Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a ____ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment.
A) particular target market
B) multiple target market
C) combined target market
D) product-market target market
E) specialty targeting
11. Sanders Beverages, Inc., is targeting non-juice drinkers with a new line of healthy fruit juices. Identify the segmenting dimension most likely being used by Sanders Beverages.
A) Geographic
B) Behavioral
C) Geodemographic
D) Demographic
E) Urgency to get need satisfied
12. Tom and Sally Jones are preparing to purchase a new car. He currently has a Toyota Camry and she has a Honda Accord. They now have two children under age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom decided on a Honda Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this purchase situation, Tom and Sally's family life cycle stage is a _____________ segmenting dimension, and the benefit Sally seeks (reliability) is a _____________ segmenting dimension.
A) geographic; demographic
B) demographic; behavioral
C) geographic; behavioral
D) demographic; geographic
E) behavioral; demographic
13. When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?
A) Gender
B) Family size
C) Benefits sought
D) Rate of use
E) Size of city
14. Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it's time for the next oil change. This is an example of a ______ system.
A) customer relationship management
B) qualifying dimensions
C) a positioning matrix
D) geographic targeting
E) clustering
15. When PepsiCo asked its advertising agency to develop an advertising program for its Mountain Dew soft drink, it gave the agency a statement describing the age and fun-loving spirit of its target market and the one-of-a-kind citrus flavor of the new product, what type of statement was this?
A) Clustering
B) Determining
C) Combining
D) Positioning
E) Qualifying