When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.

A) adapted marketing

B) mass marketing

C) market targeting

D) segmenting

E) differentiation

Answer:  C

Diff: 2        Page Ref: 190

Skill:  Concept

Objective:  7-1

2) What are the four steps, in order, to designing a customer-driven marketing strategy?

A) market segmentation, differentiation, positioning, and targeting

B) positioning, market segmentation, mass marketing, and targeting

C) market segmentation, targeting, differentiation, and positioning

D) market alignment, market segmentation, differentiation, and market positioning

E) market recognition, market preference, market targeting, and market insistence

Answer:  C

Diff: 2        Page Ref: 190

Skill:  Concept

Objective:  7-1

3) Even though several options are available at any one time, there ________ to segment a market.

A) is one single best way

B) is no single way

C) is a most effective way

D) are limited ways

E) are four ways

Answer:  B

Diff: 2        Page Ref: 191

Skill:  Concept

Objective:  7-2

4) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation.

A) geographic

B)  benefit

C)  end-use

D)  customer

E)  image

Answer:  A

Diff: 1        Page Ref: 191

Skill:  Concept

Objective:  7-2

5) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use?

A) geographic

B) behavioral

C) lifestyle

D) demographic

E) psychographic

Answer:  D

Diff: 1        Page Ref: 191

AACSB:  Multicultural and Diversity Understanding

Skill:  Concept

Objective:  7-2

6) Which of the following is the most popular method for segmenting markets?

A) demographic

B) gender

C) psychographic

D) behavioral

E) geographic

Answer:  A

Diff: 2        Page Ref: 191

Skill:  Concept

Objective:  7-2

7) Demographic variables are frequently used in market segmentation because they ________.

A) create smaller segments than other methods do

B) create more easily reached segments than other methods do

C) do not involve stereotypes

D) are easy to measure in comparison to many other methods

E) involve fewer attributes to consider than other methods do

Answer:  D

Diff: 2        Page Ref: 191

Skill:  Concept

Objective:  7-2

8) Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation?

A) underestimating

B) stereotyping

C) traditional marketing

D) cultural bias

E) gender bias

Answer:  B

Diff: 2        Page Ref: 193

AACSB:  Multicultural and Diversity Understanding

Skill:  Concept

Objective:  7-2

9) When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most likely uses which type of segmentation?

A) readiness

B) gender

C) behavior

D) occasions

E) geographic

Answer:  B

Diff: 2        Page Ref: 193

AACSB:  Multicultural and Diversity Understanding

Skill:  Concept

Objective:  7-2

10) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

A) gender

B) income

C) occasion

D) usage rate

E) readiness stage

Answer:  B

Diff: 2        Page Ref: 194

AACSB:  Multicultural and Diversity Understanding

Skill:  Concept

Objective:  7-2

11) Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation.

A) demographic

B) behavioral

C) social class

D) psychographic

E) user status

Answer:  D

Diff: 2        Page Ref: 194

Skill:  Concept

Objective:  7-2

12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.

A) behavioral

B) psychographic

C) age and life cycle

D) demographic

E) geographic

Answer:  A

Diff: 1        Page Ref: 196

Skill:  Concept

Objective:  7-2

13) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A) behavioral

B) psychographic

C) occasion

D) impulse

E) emergency

Answer:  C

Diff: 2        Page Ref: 196

Skill:  Concept

Objective:  7-2

14) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________.

A) user status

B) usage rates

C) benefit

D) behavior

E) loyalty status

Answer:  A

Diff: 2        Page Ref: 197

Skill:  Concept

Objective:  7-2

15) Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called?

A) benefit

B) behavioral

C) age and life cycle

D) psychographic

E) demographic

Answer:  A

Diff: 2        Page Ref: 197

Skill:  Concept

Objective:  7-2