Multiple choice questions:
Question 1
The first level of customer relationship marketing is a ________ strategy that recognizes individual customers by name and buying behavior.
mass-personalization
decentralization
mass-market
core-segment
sub-segment
Question 2
When differences in customer needs are small or demographics are not distinctive, a business may elect to use a ________ strategy.
small-segment
vertical integration
horizontal integration
mass-market
niche-segment
Question 3
Niche-segment strategies differ from mass-market strategy in that niche-market strategies ________.
address one set of core customer needs of a large market segment
have no segment focus
are used when demographics are not distinctive
are used when the company markets to a closely related attractive segment first
involve highly refined marketing effort directed at an overlooked, small group of customers
Question 4
Karen is interested in assessing a market segment's attractiveness by analyzing the market demand. Which of the following would be a variable should she assess?
number of companies
ease of entry
customer familiarity with her company
market size
access to channels that reach target customers
Question 5
Which of the following is true about database marketing?
It is at the core of customer relationship marketing.
It assumes that all customers have the same needs.
It avoids building a more personal relationship between the business and the customer.
It treats all customers as the same, instead of assuming that each customer is unique.
It prioritizes creating efficiency through technological advances over building customer relationships.
Question 6
A large-segment strategy differs from a mass-market strategy in that a large-segment strategy ________.
addresses one set of core customer needs
has no segment focus
is used when demographics are not distinctive
is used when differences in customer needs are small
allows customers to build their own products
Question 7
Which of the following is true of needs-based market segments?
Relevant demographics that cause differences in needs include investments, size of investment portfolio, and portfolio diversification.
To make the segments actionable, the observable demographics and behaviors have to be determined.
The main advantage is that individual customers who fall into each segment can be identified.
The main disadvantage is that the segments are not directly based on specific customer needs.
The usage behaviors that cause differences in needs include income and assets.
Question 8
Differences in values, attitudes, and interests are examples of ________ forces shaping consumer needs.
demographic
lifestyle
usage behavior
geographic
firmographic
Question 9
Mass-customization differs from mass-personalization in that mass-customization ________.
is a customer relationship marketing strategy
assumes that all customers have the same needs
allows each customer to build a custom product to meet that customer's specific needs
involves pursuing a large-segment strategy
recognizes individual customers by name, needs, and buying behavior.
Question 10
Which of the following forces that shape segment attractiveness include market size, growth rate, and growth potential?
competitive intensity
market access
market demand
profitability
feasibility
Question 11
When a market is segmented and marketing resources are limited, a business could elect to pursue a large-segment strategy.
True
False
Question 12
When pursuing a large-segment strategy, a business presents a generic value proposition built around the core customer need and the business's generic positioning strategy to the entire market.
True
False
Question 13
Common to most assessments of segment attractiveness are measurements of market demand, competitive intensity, and market access.
True
False
Question 14
In order to implement a mass-personalization strategy, a business's database marketing system must be able to track individual customers and their buying history.
True
False
Question 15
Both consumers and businesses have market needs, and the factors influencing their needs are essentially the same.
True
False