Question 1

Which of the following is NOT true of a product-market?

Accepted Answer

A)   Competing suppliers offer close substitutes to satisfy needs.
B)   Customers in a product-market have very similar needs.
C)   Very different types of products may compete for consumer dollars.
D)   Naming product-markets includes consideration of where the customers are.
E)   None of the above statements is true.

Question 2

When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n) :

Accepted Answer

A)   aggregating approach.
B)   CRM database.
C)   clustering approach.
D)   disaggregating approach.
E)   generic market.

Question 3

Which of the following is the BEST example of a "generic market?"

Accepted Answer

A)   the meat market.
B)   the minivan market.
C)   the e-commerce market.
D)   the beer market.
E)   the "singles" entertaining market.

Question 4

A generic market

Accepted Answer

A)   competitor might have only a tiny market share in the generic market but a large share in its product-market.
B)   often includes consumers who will satisfy the same need in quite different ways.
C)   often involves sellers who compete in different product-markets.
D)   All of the above are true.
E)   None of the above is true.

Question 5

______________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market.

Accepted Answer

A)   Operational
B)   Qualifying
C)   Customer-related
D)   Determining
E)   Situation-related

Question 6

Which of the following statements about the combined target market approach is True?

Accepted Answer

A)   Combiners develop several offerings and tailor them to the unique needs of several different segments.
B)   Combiners try to extend their basic offering to satisfy customers from multiple segments with a single marketing mix.
C)   Combiners may fall victim to an innovative segmenter that offers a more attractive marketing mix to a segment of the combined target market.
D)   All of the above.
E)   B and C only.

Question 7

"Good" market segments are those that are:

Accepted Answer

A)   homogeneous between.
B)   heterogeneous within.
C)   operational and substantial.
D)   international in nature.
E)   All of the above.

Question 8

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Accepted Answer

A) True 
 B)False

Question 9

Differentiating the marketing mix is important because:

Accepted Answer

A)   It can help the firm build a competitive advantage with a group of target customers.
B)   It can help target customers to view the firm's position in the market as uniquely suited to their preferences and needs.
C)   It can clarify the position the firm wants to achieve with customers.
D)   It can contribute to better blending of marketing mix decisions to achieve desired objectives.
E)   All of the above.

Question 10

Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

Accepted Answer

A) True 
 B)False

Question 11

In the seven-step approach, qualifying dimensions are identified in Step 3 but determining dimensions are not identified until Step 4.

Accepted Answer

A) True 
 B)False

Question 12

The MOST USEFUL dimensions for segmenting markets are:

Accepted Answer

A)   geographic and demographic dimensions.
B)   brand familiarity and consumption patterns.
C)   social class.
D)   benefits sought.
E)   It depends on what product-market one is segmenting.

Question 13

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

Accepted Answer

A) True 
 B)False

Question 14

A "market" consists of:

Accepted Answer

A)   customers who are willing to exchange something of value.
B)   a group of potential customers with similar needs.
C)   sellers offering various ways of satisfying customer needs.
D)   all of the above.
E)   none of the above.

Question 15

A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment--one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of

Accepted Answer

A)   too much aggregating.
B)   insulting the manufacturers by putting them in the same market segment with the wholesalers.
C)   picking market segments based on qualifying dimensions.
D)   selecting market segments that were not substantial.
E)   using too many segmenting dimensions.

Question 16

Regarding segmenting, as opposed to combining:

Accepted Answer

A)   Segmenting is usually a riskier approach than combining.
B)   Segmenters try to satisfy consumers "very well" instead of "pretty well."
C)   Segmenting limits a firm to smaller sales potential and lower profits.
D)   A segmenter with limited resources may have to use the multiple target market approach instead of the single target market approach.
E)   All of the above are true.

Question 17

A firm's "relevant market for finding opportunities":

Accepted Answer

A)   should be as large as possible.
B)   should have no geographic limits.
C)   should be no larger than its present product-market.
D)   should always be named in product-related terms.
E)   None of the above is a true statement.

Question 18

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

Accepted Answer

A) True 
 B)False

Question 19

Unlike a generic market description, a product-market definition includes

Accepted Answer

A)   customer needs.
B)   customer types.
C)   geographic area.
D)   product type.
E)   organization chart.

Question 20

A complete product-market definition includes a four-part description comprising of all of the following except

Accepted Answer

A)   geographic area.
B)   customer needs.
C)   customer types.
D)   product type.
E)   marketing mix.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

A generic market

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Which of the following is the BEST example of a "generic market?"

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Which of the following is NOT true of a product-market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

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______________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market.

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Which of the following statements about the combined target market approach is True?

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In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

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A firm's "relevant market for finding opportunities":

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In the seven-step approach, qualifying dimensions are identified in Step 3 but determining dimensions are not identified until Step 4.

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In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Correct AnswerverifiedShow Answer

The MOST USEFUL dimensions for segmenting markets are:

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Unlike a generic market description, a product-market definition includes

Correct AnswerverifiedShow Answer

"Good" market segments are those that are:

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A complete product-market definition includes a four-part description comprising of all of the following except

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Market segmentation applies only to consumer goods and services; it cannot be applied to business products.

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Differentiating the marketing mix is important because:

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A "market" consists of:

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When a customer orders a book at Amazon.com, the online retailer recommends related books that have been purchased by other customers who bought that book. Amazon is using a(n) :

Correct AnswerverifiedShow Answer

Regarding segmenting, as opposed to combining:

Correct AnswerverifiedShow Answer

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