Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

101) Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

Answer:  FALSE

Diff: 2        Page Ref: 190

Skill:  Concept      

Objective:  7-1

102) Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

Answer:  FALSE

Diff: 2        Page Ref: 190

Skill:  Concept

Objective:  7-1

103) Demographic segmentation can be used to divide the market by different time periods of people's lives and different family situations.

Answer:  TRUE

Diff: 2        Page Ref: 191

Skill:  Concept

Objective:  7-2

104) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

Answer:  TRUE

Diff: 2        Page Ref: 193

AACSB:  Multicultural and Diversity Understanding

Skill:  Concept

Objective:  7-2

105) Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

Answer:  TRUE

Diff: 2        Page Ref: 194

Skill:  Concept

Objective:  7-2

106) Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Answer:  FALSE

Diff: 2        Page Ref: 197

Skill:  Concept

Objective:  7-2

107) For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

Answer:  FALSE

Diff: 2        Page Ref: 198

Skill:  Concept

Objective:  7-2

108) Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.

Answer:  TRUE

Diff: 2        Page Ref: 198

AACSB:  Use of Information Technology

Skill:  Concept

Objective:  7-2

109) There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

Answer:  TRUE

Diff: 2        Page Ref: 199

AACSB:  Dynamics of the Global Economy

Skill:  Concept

Objective:  7-2

110) Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

Answer:  FALSE

Diff: 2        Page Ref: 199

AACSB:  Dynamics of the Global Economy

Skill:  Concept

Objective:  7-2

111) In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

Answer:  TRUE

Diff: 2        Page Ref: 201

Skill:  Concept

Objective:  7-3

112) At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.

Answer:  TRUE

Diff: 1        Page Ref: 201

Skill:  Concept

Objective:  7-3

113) Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

Answer:  TRUE

Diff: 2        Page Ref: 202

Skill:  Concept

Objective:  7-3

114) Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

Answer:  TRUE

Diff: 1        Page Ref: 203

Skill:  Concept

Objective:  7-3

115) Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

Answer:  TRUE

Diff: 3        Page Ref: 205

Skill:  Concept

Objective:  7-3

116) Mass marketing is becoming a marketing principle for the 21st century.

Answer:  FALSE

Diff: 2        Page Ref: 205

Skill:  Concept

Objective:  7-3

117) When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life-cycle stage.

Answer:  TRUE

Diff: 3        Page Ref: 206

Skill:  Concept

Objective:  7-3

118) A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributesthe place the product occupies in the retailers' minds relative to competing products.

Answer:  FALSE

Diff: 2        Page Ref: 207

AACSB:  Communication Abilities

Skill:  Concept

Objective:  7-4

119) Consumers position products in their minds in order to simplify the buying process.

Answer:  TRUE

Diff: 3        Page Ref: 207

Skill:  Concept

Objective:  7-4

120) A market rarely exists for products that offer less and therefore cost less.

Answer:  FALSE

Diff: 3        Page Ref: 214

Skill:  Concept

Objective:  7-4