Question 1

Define the term "mass marketing" and provide an example.

Accepted Answer

Mass marketing is a concept that ignores...

Question 2

A method of classifying individuals into nine psychological types based on their lifestyles,attitudes,interests,and personality is known as

Accepted Answer

A)  the market segmentation plan.
B)  the Value and Lifestyles (VALS) program.
C)  geographic segmentation.
D)  demographic variable segmentation.
E)  mass marketing.

Question 3

The founders of Apple avoided the classic pitfalls in market segmentation by

Accepted Answer

A)  becoming big.
B)  not imitating their competitors.
C)  relying on the easiest segmentation methods.
D)  forgetting that segments change.
E)  always using the same segmentation approach.

Question 4

What is the ideal method for segmenting customers on the internet?

Accepted Answer

Usage segmentation groups customers by t...

Question 5

If a business is using the same segmentation approach as its competitors,it is not garnering a competitive advantage for itself.

Accepted Answer

A) True 
 B)False

Question 6

By offering all customers the same value proposition,businesses run the risk of

Accepted Answer

A)  customers becoming less price-sensitive.
B)  a competitor entering the market to satisfy unmet needs.
C)  customer segmentation.
D)  providing direction to the sales force.
E)  reducing resources.

Question 7

Starbucks gained a competitive advantage by segmenting the market based on where coffee was consumed and how it was viewed.

Accepted Answer

A) True 
 B)False

Question 8

Usage segmentation studies psychographic variables for segmenting customers on the internet.

Accepted Answer

A) True 
 B)False

Question 9

Explain why segmenting customers by demographic variables is rarely effective.

Accepted Answer

Two consumers may make the same amount o...

Question 10

When selecting target markets,it is important to balance revenue potential with

Accepted Answer

A)  market research.
B)  the cost to serve the segment.
C)  geographic variables.
D)  demographic variables.
E)  psychographic variables.

Question 11

Sony focused on this emerging segment when it introduced the transistor radio almost 60 years ago.

Accepted Answer

A)  teens
B)  adults
C)  married couples
D)  seniors
E)  small business owners

Question 12

In selecting target customers,businesses should analyze

Accepted Answer

A)  feedback from the sales force.
B)  customer attractiveness.
C)  competitive activity.
D)  segmentation methodology.
E)  emerging segments.

Question 13

Explain how segmenting and targeting customers was the key to W.L.Gore & Associates' successful introduction of its shred-proof dental floss,Glide.

Accepted Answer

They decided to target their innovation ...

Question 14

If a business offers all its customers only one value proposition,it is preserving its resources.

Accepted Answer

A) True 
 B)False

Question 15

Even with customer segmentation,salespeople do not know which customers to target or which value propositions to deliver.

Accepted Answer

A) True 
 B)False

Question 16

In a survey of executives at 200 large firms,this percentage reported they had conducted a major segmentation exercise during the previous two years.

Accepted Answer

A)  14%
B)  25%
C)  42%
D)  59%
E)  70%

Question 17

The best way to segment customers is by examining their needs and their attractiveness to you.

Accepted Answer

A) True 
 B)False  True

Question 18

Smart businesses use their segmentation to direct every business activity.

Accepted Answer

A) True 
 B)False  True

Question 19

Although customer needs change over time,market segments tend to stay relevant.

Accepted Answer

A) True 
 B)False

Question 20

Cessna,the aircraft manufacturer,focuses its efforts on serving the needs of the corporate customer.This is an example of

Accepted Answer

A)  a product strategy.
B)  customer segmentation.
C)  sales execution.
D)  cross-functional alignment.
E)  a marketing communications strategy. B

Exam 3: Choosing Which Customers to Serve

Define the term "mass marketing" and provide an example.

Correct AnswerverifiedMass marketing is a concept that ignores...View AnswerShow Answer

A method of classifying individuals into nine psychological types based on their lifestyles,attitudes,interests,and personality is known as

Correct AnswerverifiedShow Answer

The founders of Apple avoided the classic pitfalls in market segmentation by

Correct AnswerverifiedShow Answer

What is the ideal method for segmenting customers on the internet?

Correct AnswerverifiedUsage segmentation groups customers by t...View AnswerShow Answer

If a business is using the same segmentation approach as its competitors,it is not garnering a competitive advantage for itself.

Correct AnswerverifiedShow Answer

By offering all customers the same value proposition,businesses run the risk of

Correct AnswerverifiedShow Answer

Starbucks gained a competitive advantage by segmenting the market based on where coffee was consumed and how it was viewed.

Correct AnswerverifiedShow Answer

Usage segmentation studies psychographic variables for segmenting customers on the internet.

Correct AnswerverifiedShow Answer

Explain why segmenting customers by demographic variables is rarely effective.

Correct AnswerverifiedTwo consumers may make the same amount o...View AnswerShow Answer

When selecting target markets,it is important to balance revenue potential with

Correct AnswerverifiedShow Answer

Sony focused on this emerging segment when it introduced the transistor radio almost 60 years ago.

Correct AnswerverifiedShow Answer

In selecting target customers,businesses should analyze

Correct AnswerverifiedShow Answer

Explain how segmenting and targeting customers was the key to W.L.Gore & Associates' successful introduction of its shred-proof dental floss,Glide.

Correct AnswerverifiedThey decided to target their innovation ...View AnswerShow Answer

If a business offers all its customers only one value proposition,it is preserving its resources.

Correct AnswerverifiedShow Answer

Even with customer segmentation,salespeople do not know which customers to target or which value propositions to deliver.

Correct AnswerverifiedShow Answer

In a survey of executives at 200 large firms,this percentage reported they had conducted a major segmentation exercise during the previous two years.

Correct AnswerverifiedShow Answer

The best way to segment customers is by examining their needs and their attractiveness to you.

Correct AnswerverifiedTrue

Smart businesses use their segmentation to direct every business activity.

Correct AnswerverifiedTrue

Although customer needs change over time,market segments tend to stay relevant.

Correct AnswerverifiedShow Answer

Cessna,the aircraft manufacturer,focuses its efforts on serving the needs of the corporate customer.This is an example of

Correct AnswerverifiedB

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Mass marketing is a concept that ignores...
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Usage segmentation groups customers by t...
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Two consumers may make the same amount o...
View Answer

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Correct Answer
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They decided to target their innovation ...
View Answer

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True

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True

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B