Marketing The Core 8th Edition By Roger Kerin – Test Bank

Marketing The Core 8th Edition By Roger Kerin – Test Bank

Core: Marketing, 8e (Kerin)
Chapter 8 Market Segmentation, Targeting, and Positioning

1) Tony Hsieh’s most important contribution at Zappos was to
A) immediately change its product mix.
B) develop its segmentation strategy.
C) focus on value-oriented customers.
D) focus on unknown brands.
E) shift to a more transactional focus.

2) The primary focus of Zappos’ initial market segmentation strategy was to sell
A) shoes and other products to people who will buy them online and like to use mobile technology.
B) a wide selection of leather shoes and boots to high-end retailers.
C) all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices.
D) Spanish novelties and accessories to organizations that typically resell them.
E) shoes in its own retail stores to those who prefer face-to-face interaction.

3) Zappos offers value to its customers by
A) offering the best selection of shoes and the best service to online shoppers.
B) designing shoes for every type of occasion.
C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D) offering the best access to fashionable shoes through multiple channels of distribution.
E) maintaining the simplest method of pricing to make the purchase process easy.

4) Which of the following statements about Zappos is most accurate?
A) Zappos limits its inventory to a selection of high-end fashion footwear.
B) Zappos makes recommendations for purchases based on past ones and even the device being used to shop.
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
D) Zappos is so successful because it has chosen a single mission to “sell shoes and only shoes.”
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you had the shoes.

5) According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to
A) seeking new and unusual styles of shoes from all over the world.
B) improving the website to make it faster, more interesting, and fun.
C) seeking new markets that will go beyond the Internet.
D) finding the fastest and least expensive modes of delivery for its products.
E) finding ways to improve customer service levels.

6) Tony Hsieh, CEO of Zappos, offers up to $5,000 to anyone who
A) identifies a completely new market segment with a product to match it.
B) finds a way of improving service to online customers.
C) takes its customer loyalty training class and decides to quit anyway.
D) finds a shoe-related product that Zappos does not already carry.
E) creates a humorous theme for one of the monthly company meetings.

7) Building open and honest relationships with communication is an example of one of Zappos’
A) target markets.
B) best practices being adapted from its new owner, Amazon.com.
C) ten core values.
D) supplier requirements.
E) long-term goals.

8) Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
A) consumer differentiation.
B) psychographics.
C) market segmentation.
D) market delineation.
E) aggregation marketing.

9) Market segmentation refers to
A) the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time.
B) sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
C) disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person’s unique needs.
D) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
E) the belief that it is possible to satisfy every customer’s needs if you can identify the correct segment within which they belong.

10) Market segmentation involves aggregating prospective buyers into groups that have common needs and will
A) pay attention to marketing messages.
B) respond similarly to a marketing action.
C) be responsive to marketing research.
D) use the same payment methods.
E) comply with the organization’s core values.

11) New Balance has many offerings. It makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to “feel the trail.” Its 1260v2 shoe incorporates Stabilicore technology to “deliver a plush, smooth, and stable ride.” And its top of the line, 990v3 traditional running/walking shoe uses a “premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB insole, and ENCAP to promote a healthy gait.” The strategy of appealing to different types of customers in this way is an example of
A) mass customization.
B) product definition.
C) market segmentation.
D) single chain marketing.
E) market specific selection.

12) Market segments are
A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
B) all buyers of a product or service who have previously purchased a particular firm’s products or services and who intend to repeat that purchase sometime in the future.
C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
D) the relatively homogeneous groups of prospective buyers that result from the market segmentation process.
E) all potential buyers of a product or service who intend to purchase a firm’s products or services but who have not yet done so.

13) A relatively homogeneous group of prospective buyers that results from the market segmentation process is referred to as
A) a market segment.
B) a target market.
C) a customer base.
D) an ultimate consumer.
E) a preferred customer.

14) To be identified as a market segment, members of the group must
A) be similar in terms of their consumption behavior.
B) represent a large share of the entire market and have buying power.
C) have diverse needs and have potential for future growth.
D) have diverse needs and be willing and able to purchase the product.
E) have the potential for future growth and increased profit or ROI.

15) In marketing, each ________ consists of people who are relatively similar to each other in terms of their consumption behavior.
A) demographic cluster
B) organizational buyer group
C) market segment
D) ultimate consumer group
E) qualified prospect group

16) A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as
A) market penetration.
B) points of difference.
C) market differentiation.
D) product positioning.
E) product differentiation.

17) Product differentiation refers to
A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs.
B) the unique combination of product benefits received by targeted buyers.
C) those characteristics of a product that make it superior to competitive substitutes.
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization’s intellectual property rights.

18) Apple’s iPhone X has a feature known as Face ID that lets users securely unlock the phone, authenticate purchases, or sign in to apps with just a glance. This feature sets the smartphone apart from its competitors and is part of Apple’s ________ strategy.
A) product segmentation
B) market expansion
C) product differentiation
D) usage segmentation
E) psychographic segmentation

19) Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?
A) product differentiation
B) product segmentation
C) market expansion
D) usage segmentation
E) psychographic segmentation

20) A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
A) increase sales and profitability.
B) stand up to legal scrutiny.
C) be socially responsible.
D) create sustainable demand.
E) produce product differentiation.

21) The process of segmenting a market and selecting specific segments as targets is the link between ________ and the organization’s marketing program.
A) self-regulatory industry standards
B) government regulations
C) top-level management
D) buyers’ or market needs
E) controllable environmental factors

22) ________ links market needs to an organization’s marketing program.
A) Market segmentation
B) Product design
C) Marketing protocol
D) Marketing mix development
E) Product selection

23) Zappos’ original target market customers consisted of people who wanted all of the following except which?
A) to receive quick delivery of their merchandise
B) to buy sustainable shoes, accessories, and clothing
C) to shop online in the convenience of their own homes
D) to return goods for free if dissatisfied
E) to choose from a wide selection of shoes

24) A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

25) A market-product grid is
A) a visual representation of all products offered within a specific product class.
B) a framework used to compare the relative market share of one firm’s product offerings to those of its competitors.
C) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
D) a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
E) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

26) A market-product grid is a framework to relate the ________ to products offered or potential marketing actions by an organization.
A) market segments of potential buyers
B) marketing objectives of potential products
C) total anticipated revenue annually
D) total anticipated profit annually
E) market share of the closest competitor

27) In the segmentation process, pairing side sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

Figure 8-2

28) The table in Figure 8-2 is known as a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.

29) Consider Figure 8-2. My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be “the most comfortable pillow you’ll ever own!” Based on the market research shown in Figure 8-2, which market-product combination should My Pillow target?
A) stomach sleeper-firm pillow
B) back sleeper-medium pillow
C) side sleeper-firm pillow
D) stomach sleeper-soft pillow
E) side sleeper-soft pillow

30) A business firm goes to the trouble and expense of segmenting its markets when
A) it can comfortably maintain market share.
B) it expects this to result in increased sales and profits.
C) it can also assume social responsibility.
D) the firm’s resources are very scarce.
E) it desires to provide the best quality products on the market.

31) Which of the following statements regarding when and how to segment markets is most accurate?
A) Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors.
B) Market segmentation is only feasible for large corporations; small businesses don’t have the resources to engage in the process.
C) Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E) Market segmentation strategies work less than 10 percent of the time.

32) When expenses are greater than the potential increased sales from market segmentation, a firm should
A) not consider market segmentation at this time.
B) combine departments within the company to make the process more streamlined.
C) reduce production costs or increase prices to facilitate the segmentation process.
D) seek alternate channels of distribution, including Internet sales.
E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.

33) All of the following are market segmentation strategies except which?
A) build-to-order
B) multiple products, multiple market segments
C) one product, multiple market segments
D) multiple products, one segment
E) mass customization

34) When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids
A) the extra cost of developing and producing additional versions of the product.
B) creating a customer service gap.
C) indirect distribution and logistics problems.
D) restructuring the firm’s strategic planning.
E) amortization costs of product enhancements.

35) When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy
A) is a much more effective means of meeting consumers’ individual needs.
B) creates greater savings in production costs.
C) is a more effective way of meeting organizational objectives.
D) has significantly higher distribution costs.
E) is more profitable since a firm can charge the new segments higher prices without changing the product.

36) One marketing action that can be taken to sell a single product or service to multiple market segments is to
A) develop and produce another version of the product.
B) manufacture products that appeal to different markets.
C) develop a new channel of distribution.
D) purchase another firm that has additional products that would appeal to multiple markets.
E) issue stock to fund additional research and development for new products.

37) The annual Street & Smith’s Baseball magazine had exactly the same stories but with 15 different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its market segmentation strategy?
A) psychographic segmentation
B) retail outlet segmentation
C) demographic segmentation
D) behavioral segmentation
E) geographic segmentation

38) The annual Street & Smith’s Baseball magazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of the following segmentation strategies?
A) multiple products with one segment
B) one product with one channel of distribution
C) one product with multiple market segments
D) one product with changes based on customer behavior
E) multiple products with multiple segments

39) Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?
A) inability to meet high demand
B) reduced quality and higher prices
C) failure to meet diverse customer needs
D) employee dissatisfaction
E) frequent research and development failures

40) Which of the following is an example of a multiple products, multiple market segments strategy?
A) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
D) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
E) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

41) Which of the following is an example of a multiple products, multiple market segments strategy?
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
E) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

42) Kellogg’s has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer’s profits and
A) meets standards for new product testing.
B) uses the same promotion and packaging for all segments.
C) cannibalizes the earlier products.
D) stabilizes competition.
E) better serves customers’ needs.

43) Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as
A) family branding.
B) mass customization.
C) product differentiation.
D) economies of scale marketing.
E) build-to-order.

44) Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models. There is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
A) mass customization.
B) specialty customization.
C) virtual merchandising.
D) one product and multiple market segments.
E) multiple products and multiple market segments.

45) ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
A) family branding.
B) mass customization.
C) multiple products and multiple market segments.
D) one product and multiple market segments.
E) specialty customization.

46) Lands’ End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of
A) family branding.
B) mass customization.
C) “Tiffany/Walmart” marketing.
D) market melding.
E) specialty customization.

47) Nike employs a ________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.
A) product sampling
B) product clustering
C) mass customization
D) usage segmentation
E) psychographic segmentation

48) Name Maker is an online company that sells, among other items, high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is an example of
A) family branding.
B) mass customization.
C) synergistic marketing.
D) “Tiffany/Walmart” marketing.
E) specialty customization.

49) Manufacturing a product only when there is an order from a customer is referred to as
A) order customization.
B) a one product, one market segment strategy.
C) synergistic marketing.
D) build-to-order.
E) specialty customization.