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More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals, such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using ________ as the basis to segment its market.


A) usage rates
B) usage patterns
C) demographic characteristics
D) behavior characteristics
E) psychographic characteristics

F) B) and D)
G) C) and D)

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"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability" is a ________ statement for Volvo in North America.


A) perception
B) positioning
C) market-product
D) vision
E) differentiation

F) C) and D)
G) All of the above

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In an the Apple market-product grid for its personal computer line, the iMac is popular among all the segments Apple can target. This product would allows Apple to enjoy


A) segmentation synergies.
B) marketing synergies.
C) product synergies.
D) the benefits of the 80/20 rule.
E) frequency marketing.

F) None of the above
G) C) and E)

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Alamo, a national car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using ________ segmentation.


A) geographic
B) demographic
C) loyalty
D) psychographic
E) behavioral

F) A) and D)
G) A) and E)

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Explain the 80/20 rule.

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Usage rate is sometimes referred to in t...

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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.

F) A) and B)
G) C) and D)

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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

F) A) and B)
G) C) and E)

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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

F) D) and E)
G) C) and D)

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Cannibalization would most likely occur if


A) Dell adds high-end speaker systems to its line.
B) General Mills launches Caramel Crunch Cheerios.
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike.
D) Pillsbury adds boxed sugar to its product mix.
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

F) A) and D)
G) A) and C)

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Head-to-head positioning requires a product to


A) compete with products from competitors of the same size and country of origin.
B) compete with competitors on similar product attributes but in a different market.
C) compete with competitors on similar product attributes in the same market.
D) compete against very similar products from its own company.
E) compete against a single competitor with an identical offering.

F) C) and D)
G) A) and B)

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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.

F) B) and E)
G) A) and E)

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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.

F) B) and E)
G) D) and E)

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What are the three types of data needed from consumers to develop a perceptual map?

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In determining a brand's position and th...

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What is market segmentation and why is it important?

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People have different needs and wants, e...

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Magazines such as CondΓ© Nast Traveler, Field & Stream, Golf Digest, and Fitness focus on how people live their lives, and thus all use a ________ segmentation strategy.


A) psychographic
B) behavioral
C) situational
D) socioeconomic
E) geographic

F) A) and C)
G) A) and D)

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A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as


A) competitive repositioning.
B) head-to-head positioning.
C) differentiation positioning.
D) downsize positioning.
E) product repositioning.

F) A) and C)
G) B) and E)

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When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other hamburger chains but also the


A) meals at golf and country clubs.
B) dormitory meal plans at surrounding colleges and universities.
C) items for sale at gas stations and convenience stores.
D) local farmer's markets that sell produce.
E) nearly every food item sold at local grocery stores.

F) None of the above
G) A) and C)

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Marketing synergies often come at the expense of product synergies because


A) product synergies are more effective for penetrating a market rather than creating one.
B) multiple market segments usually require multiple products.
C) it is easier to change a product than to completely develop a new marketing plan.
D) a single customer segment will likely require a variety of products, each of which must be designed and manufactured.
E) no company can afford to do both at the same time.

F) A) and D)
G) A) and C)

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Behavioral segmentation may be based on


A) lifestyles and demographics.
B) retailer and wholesaler behaviors.
C) geographic and demographic criteria.
D) product features and user status.
E) demand and supply.

F) A) and B)
G) A) and C)

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Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market?


A) behavioral and geographic
B) number of employees and behavioral
C) purchase location and purchase type
D) NAICS code and geographic
E) behavioral and NAICS code

F) B) and C)
G) A) and C)

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