Download Consumer Behavior, 10e (Schiffman/Kanuk)

Consumer Behavior, 10e (Schiffman/Kanuk)
Chapter 3 Market Segmentation and Strategic Targeting
1) The process of dividing a market into distinct subsets of consumers with common needs or
characteristics is known as ________.
A) target marketing
B) market segmentation
C) mass marketing
D) the marketing concept
E) market evaluation
Answer: B
Diff: 2 Page Ref: 52
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
2) When Henry Ford introduced the Model T, the first affordable, mass-produced car, he stated
that consumers "can have a car in any color they want, as long as it is black." Offering the same
product to all consumers in this fashion is known as ________.
A) mass marketing
B) behavioral targeting
C) benefit segmentation
D) micro-targeting
E) countersegmentation
Answer: A
Diff: 2 Page Ref: 52
AACSB: Analytic Skills
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
3) The ________ of a product or service is the value proposition, expressed through promotion,
stating the product's or service's capability to deliver specific benefits corresponding to
consumers' unfulfilled needs.
A) segmentation
B) target
C) positioning
D) psychographic inventory
E) concentrated marketing strategy
Answer: C
Diff: 2 Page Ref: 52
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
1
Copyright © 2010 Pearson Education, Inc.
4) Which of the following is most likely to successfully follow a mass-marketing strategy?
A) a company that produces personal computers
B) a company that runs a chain of discount grocery stores
C) a company that manufactures custom stereo equipment
D) a private university
E) a company that produces agricultural products
Answer: E
Diff: 2 Page Ref: 54
AACSB: Reflective Thinking
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
5) The primary advantage of mass marketing is ________.
A) it costs less
B) it leads to wider customer satisfaction
C) it leads to the production of products that better meet the needs of individual segments of the
market
D) it reaches more people
E) it more accurately describes the product being promoted
Answer: A
Diff: 3 Page Ref: 54
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
6) Most marketers prefer to target consumer segments that are relatively ________.
A) small
B) stable in terms of consumption patterns
C) unpredictable
D) inaccessible
E) expensive to pursue
Answer: B
Diff: 1 Page Ref: 55
Skill: Concept
Objective: 3.2: Understand the criteria for targeting selected segments effectively
2
Copyright © 2010 Pearson Education, Inc.
7) Consumers' characteristics can be classed as either facts or cognitions. In this context, facts
can be determined from direct questioning and categorized by a single objective measure.
Examples of facts include ________.
A) demographics, gender, and benefits wanted
B) usage rate, level of involvement and psychographics
C) personality traits, lifestyles, and family life cycle
D) education, usage situation, and social class
E) level of involvement, awareness of product alternatives, and benefits wanted
Answer: D
Diff: 3 Page Ref: 58, Figure 3.3
AACSB: Analytic Skills
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
8) Consumers' characteristics can be classed as either facts or cognitions. In this context,
cognitions are abstract, can be determined only through more complex questioning, and
generally have no single, universal definitions. Examples of cognitions include ________.
A) demographics, gender, and benefits wanted
B) usage rate, level of involvement and psychographics
C) personality traits, lifestyles, and family life cycle
D) education, usage situation, and social class
E) level of involvement, awareness of product alternatives, and benefits wanted
Answer: E
Diff: 3 Page Ref: 58, Figure 3.3
AACSB: Analytic Skills
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
9) Consumers' characteristics can be classed as either consumer-rooted or consumption-specific.
In this context, consumer-rooted features stem from the consumer's physical, social, and
psychological characteristics. Examples of consumer-rooted features include ________.
A) demographics, gender, and benefits wanted
B) usage rate, level of involvement and psychographics
C) personality traits, lifestyles, and family life cycle
D) education, usage situation, and social class
E) level of involvement, awareness of product alternatives, and benefits wanted
Answer: C
Diff: 3 Page Ref: 58, Figure 3.3
AACSB: Analytic Skills
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
3
Copyright © 2010 Pearson Education, Inc.
10) Consumers' characteristics can be classed as either consumer-rooted or consumptionspecific. In this context, consumption-specific features are attitudes and preferences toward
specific products or buying situations. Examples of consumption-specific features include
________.
A) demographics, gender, and benefits wanted
B) usage rate, level of involvement and psychographics
C) personality traits, lifestyles, and family life cycle
D) education, usage situation, and social class
E) level of involvement, awareness of product alternatives, and benefits wanted
Answer: B
Diff: 3 Page Ref: 58, Figure 3.3
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
11) In reference to consumer characteristics, ________ can be determined from direct
questioning and categorized by a simple objective measure, whereas ________ are abstract and
can be determined only through more complex questioning.
A) consumption-specific features; consumer-rooted features
B) facts; cognitions
C) product-specific features; consumption-specific features
D) cognitions; facts
E) consumer-rooted features; consumption-specific features
Answer: B
Diff: 2 Page Ref: 57
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
12) In reference to consumer characteristics, ________ stem from consumer's physical, social,
and psychological characteristics, whereas ________ are a function of usage behaviors.
A) consumption-specific features; consumer-rooted features
B) facts; cognitions
C) product-specific features; consumption-specific features
D) cognitions; facts
E) consumer-rooted features; consumption-specific features
Answer: E
Diff: 2 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
4
Copyright © 2010 Pearson Education, Inc.
13) Another term for psychographic characteristics is _________.
A) age
B) lifestyles
C) benefits sought
D) use-situation factors
E) use-related factors
Answer: B
Diff: 1 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
14) Age, gender, and education are bases of which of the following types of segmentation?
A) geographic segmentation
B) sociocultural segmentation
C) benefit segmentation
D) demographic segmentation
E) psychological segmentation
Answer: D
Diff: 1 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
15) ________ consist(s) of activities, interests, and opinions, which are mostly attitudes toward
various issues, and cannot be classified according to standardized definitions.
A) Demographics
B) Social class
C) Psychographics
D) Personality traits
E) Socio-cultural values
Answer: C
Diff: 2 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
16) Trends in the markets, such as shifts in age, gender, and income distribution, are often
detected through ________ information.
A) demographic
B) sociocultural
C) psychological
D) physiological
E) use-related
Answer: A
Diff: 3 Page Ref: 58
AACSB: Reflective Thinking
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
5
Copyright © 2010 Pearson Education, Inc.
17) ________ information is often the most accessible and cost-effective way to identify a target
market.
A) Demographic
B) Sociocultural
C) Psychological
D) Physiological
E) Benefit
Answer: A
Diff: 2 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
18) The largest age segment in the U.S. population is ________, 76 million consumers born
between 1946 and 1964.
A) Baby Boomers
B) Generation X
C) Generation Y
D) Net Gen
E) Echo Boomers
Answer: A
Diff: 2 Page Ref: 60
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
19) The fact that salsa outsells ketchup in the southwest, and that Jif peanut butter is preferred in
the Midwest over Skippy, is an example of why ________ segmentation is used.
A) demographic
B) geographic
C) psychographic
D) sociocultural
E) use-related
Answer: B
Diff: 2 Page Ref: 62
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
20) Traditionally, the ________ has been the focus of most marketing efforts.
A) mother
B) family
C) individual
D) child
E) teen
Answer: B
Diff: 1 Page Ref: 61
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
6
Copyright © 2010 Pearson Education, Inc.
21) The ________ is a composite variable based explicitly on marital and family status but
implicitly reflects relative age, income, and employment status.
A) psychographic profile
B) family life cycle
C) demographic profile
D) psychological profile
E) hybrid segment
Answer: B
Diff: 2 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
22) ________ is felt by many marketers to be a strong indicator of the ability to pay for a
product.
A) Age
B) Gender
C) Occupation
D) Education
E) Income
Answer: E
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
23) As a base for market segmentation, ________ is/are commonly computed as a weighted
index of education, occupation, and income.
A) social class
B) family life cycle
C) personality traits
D) socio-cultural values
E) psychographics
Answer: A
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
24) ________ implies a hierarchy in which individuals in the same class generally have the same
degree of status, whereas members of other classes have either higher or lower status.
A) Usage rate
B) Subculture
C) Family life cycle
D) Social class
E) Religion
Answer: D
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
7
Copyright © 2010 Pearson Education, Inc.
25) The most popular use of geography in strategic targeting is ________ – a hybrid
segmentation scheme based on the premise that people who live close to one another are likely to
have similar financial means, tastes, preferences, lifestyles, and consumption habits.
A) countersegmentation
B) geodemographics
C) behavioral targeting
D) social class
E) psychographics
Answer: B
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
26) Lifestyles, also known as ________, consist of activities, interests, and opinions.
A) psychographics
B) demographics
C) geodemographics
D) personality traits
E) benefit segmentation
Answer: A
Diff: 2 Page Ref: 66
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
27) It is often stated that while ________ determine consumers' need for products and the ability
to buy them, ________ and consumers' values explain buyers' purchase decisions and the choices
they make within the buying options available to them.
A) benefit segmentation; demographics
B) demographics; psychographics
C) psychographics; benefit segmentation
D) psychographics; demographics
E) benefit segmentation; psychographics
Answer: B
Diff: 3 Page Ref: 66
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
8
Copyright © 2010 Pearson Education, Inc.
28) Psychographic studies generally use ________ to gauge respondents' level of agreement or
disagreement with statements selected from a psychographic inventory.
A) semantic differential scales
B) Likert scales
C) behavior intention scales
D) rank order scales
E) focus groups
Answer: B
Diff: 3 Page Ref: 66
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
29) The most popular segmentation system combining lifestyle and values is ________.
A) PALS
B) VALS
C) LAPS
D) SALS
E) CALS
Answer: B
Diff: 3 Page Ref: 66
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
30) The VALS typology classifies the American adult population into eight distinctive subgroups
based on their motivations and level of resources. The three primary motivations include
________.
A) ideals, education, and achievement
B) ideals, achievement, and self-expression
C) knowledge, education, and self-expression
D) independence, aptitude, and achievement
E) aptitude, ideals, and self-expression
Answer: B
Diff: 3 Page Ref: 67
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
9
Copyright © 2010 Pearson Education, Inc.
31) In the VALS typology, ________ are motivated by ideals and tend to have low resources.
They are generally slow to change and technology averse, and tend to prefer familiar products
and established brands.
A) Innovators
B) Believers
C) Thinkers
D) Strivers
E) Experiencers
Answer: B
Diff: 3 Page Ref: 68, Table 3.7
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
32) In the VALS typology, achievers are motivated by achievement and tend to have high
resources. They have goal-oriented lifestyles that center on family and career. This segment
tends to prefer ________.
A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers
Answer: E
Diff: 3 Page Ref: 68, Table 3.7
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
33) In the VALS typology, thinkers are motivated by ideals and tend to have high resources.
They tend to be well educated and actively seek out information in the decision-making process.
This segment tends to prefer ________.
A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers
Answer: C
Diff: 3 Page Ref: 68, Table 3.7
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
10
Copyright © 2010 Pearson Education, Inc.
34) In the VALS typology, makers are motivated by self-expression and tend to have low
resources. They choose hands-on constructive activities and spend leisure time with family and
close friends. This segment tends to prefer ________.
A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers
Answer: B
Diff: 3 Page Ref: 68, Table 3.7
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
35) In the VALS typology, innovators are successful, take-charge people with high self-esteem.
Because they have such abundant resources, they exhibit all three primary motivations in varying
degrees. They are change leaders and are the most receptive to new ideas and technologies.
This segment tends to prefer ________.
A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers
Answer: D
Diff: 3 Page Ref: 68, Table 3.7
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
36) Teenagers around the world tend to want products that are trendy, entertaining, and image
oriented, regardless of where those teens live. This is an example of ________.
A) a usage rate segment
B) a cross-cultural segment
C) a benefit-based segment
D) a cultural segment
E) usage situation segmentation
Answer: B
Diff: 2 Page Ref: 70
AACSB: Multicultural and Diversity
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
11
Copyright © 2010 Pearson Education, Inc.
37) Segmenting on the basis of cultural heritage can be useful because members of the same
culture tend to ________.
A) share the same values, beliefs, and customs
B) speak the same language
C) live in the same areas
D) have similar incomes
E) be loyal to the same brands
Answer: A
Diff: 2 Page Ref: 69
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
38) Marketers of many products such as soup, laundry detergent, beer, and dog food have found
that a relatively small group of heavy users accounts for a disproportionately large percentage of
the total product usage. Targeting these heavy users specifically is an example of ________.
A) benefit-based segmentation
B) demographic segmentation
C) cross-cultural segmentation
D) usage rate segmentation
E) usage situation segmentation
Answer: D
Diff: 2 Page Ref: 70
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
39) The theory behind geographic segmentation is that ________.
A) people who have the same activities, interests, and objectives will purchase the same products
B) people with the same cultural heritage will have similar needs and values
C) people who live in the same area share some similar needs and wants that differ from those of
people living in other areas
D) people who speak the same language have very similar needs and values
E) all people living in the same country will have very similar needs and can be best served by a
single advertising campaign
Answer: C
Diff: 3 Page Ref: 62
AACSB: Analytic Skills
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
12
Copyright © 2010 Pearson Education, Inc.
40) Beyond flavor and the presence or absence of sugar, Nicorette offers a gum that will whiten
your teeth while satisfying your nicotine craving and helping you quit smoking. This gum has
been positioned on the basis of ________.
A) demographic segmentation
B) family life cycle segmentation
C) psychographic segmentation
D) mass marketing
E) benefit segmentation
Answer: E
Diff: 2 Page Ref: 72
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
41) ________ segmentation differentiates among heavy users, medium users, light users, and
nonusers of a specific product, service or brand.
A) Brand awareness
B) Brand loyalty
C) Usage rate
D) Sociocultural
E) Benefit
Answer: C
Diff: 1 Page Ref: 70
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
42) Research has shown that 25 to 35 percent of beer drinkers account for more than 70 percent
of all beer consumed. This is an example of ________ segmentation.
A) benefit
B) usage rate
C) psychographic
D) lifestyle
E) usage-situation
Answer: B
Diff: 2 Page Ref: 70
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
13
Copyright © 2010 Pearson Education, Inc.
43) Whether or not consumers need to be informed about a product relates to consumers'
________.
A) awareness status
B) usage situation
C) attitude
D) usage rate
E) learning-involvement
Answer: A
Diff: 1 Page Ref: 71
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
44) The greeting card industry capitalizes on occasions to sell products; this is a perfect example
of ________ segmentation.
A) lifestyle
B) benefit
C) usage situation
D) demographic
E) geographic
Answer: C
Diff: 3 Page Ref: 71
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
45) Campbell's Soup has divided the domestic market into more than 20 regions, each with its
own sales managers that develop specific advertising and promotional campaigns geared to local
market needs and conditions. This is an example of ________.
A) microtargeting
B) mass marketing
C) ideal targeting
D) counter segmentation
E) hyper-segmentation
Answer: A
Diff: 3 Page Ref: 80
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
14
Copyright © 2010 Pearson Education, Inc.
46) ________ represent unfilled consumer needs and can be used to develop a positioning
approach.
A) Usage rates
B) Usage situations
C) Psychographics
D) Sought benefits
E) Social class
Answer: D
Diff: 2 Page Ref: 72
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
47) Advertising for Hefty One Zip Bags emphasize "peace of mind." Eclipse gum stresses "fresh
breath." They are two companies trying to attract customers on the basis of ________
segmentation.
A) use-related
B) benefit
C) lifestyle
D) sociocultural
E) demographic
Answer: B
Diff: 2 Page Ref: 72
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
48) The market for toothpaste is a classic case of successful ________ segmentation. If
consumers are socially active, they want a toothpaste that can deliver white teeth and fresh
breath; if they smoke, they want one that fights stains; if they want to prevent disease, they want
one that will fight germs.
A) use-related
B) lifestyle
C) sociocultural
D) family life cycle
E) benefit
Answer: E
Diff: 2 Page Ref: 72
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
15
Copyright © 2010 Pearson Education, Inc.
49) The behavioral component of brand loyalty involves ________.
A) the frequency and consistency of buying a given brand
B) consumers' feelings of commitment to the brand
C) the benefits offered to consumers as a result of repeated purchase of a given brand
D) the trust consumers place on a given brand
E) how consumers evaluate the functional features of a product or brand
Answer: A
Diff: 3 Page Ref: 74
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
50) The attitudinal component of brand loyalty involves ________.
A) the frequency and consistency of buying a given brand
B) consumers' feelings of commitment to the brand
C) the benefits offered to consumers as a result of repeated purchase of a given brand
D) the trust consumers place on a given brand
E) how consumers evaluate the functional features of a product or brand
Answer: B
Diff: 3 Page Ref: 74
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
51) The most common application of brand loyalty segmentation is ________, where marketers
offer rewards to buyers who purchase their offerings consistently.
A) VALS typology
B) microtargeting
C) the psychographic inventory
D) the frequency award program
E) mass marketing
Answer: D
Diff: 1 Page Ref: 74
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
52) Some marketers target consumers who show no brand loyalty in the belief that they represent
greater market potential than consumers who are brand loyal. When shopping and evaluating
prices and discounts, switchers are more likely to respond to ________ than other segments.
A) email marketing messages
B) televised marketing messages
C) coupons and price cuts
D) word-of-mouth and buzz marketing
E) point-of-sale displays
Answer: C
Diff: 2 Page Ref: 80
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
16
Copyright © 2010 Pearson Education, Inc.
53) Some marketers target consumers who show no brand loyalty in the belief that they represent
greater market potential than consumers who are brand loyal. Consumer innovators, often a
prime target for new products, ________.
A) tend not to be brand loyal
B) tend to be resistant to change
C) tend to have very limited resources
D) tend to be highly brand loyal
E) tend to be risk averse
Answer: A
Diff: 2 Page Ref: 80
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
54) Home Depot uses its individual customer purchase history to design customized ads. This is
an example of ________.
A) psychographic segmentation
B) geodeomgraphic segmentation
C) countersegmentation
D) mass marketing
E) behavioral targeting
Answer: E
Diff: 2 Page Ref: 79
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
55) The practice of transmitting individualized messages using e-mail, mobile devices, and even
door-to-door presentations to deliver personalized messages to individuals is known as
________.
A) broadcasting
B) mass marketing
C) narrowcasting
D) countersegmentation
E) functional marketing
Answer: C
Diff: 2 Page Ref: 80
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
17
Copyright © 2010 Pearson Education, Inc.
56) Differentiated marketing is a highly appropriate segmentation strategy for ________.
A) innovative companies in new industries with few competitors
B) established companies developing new technologies in their industries
C) financially strong companies that are undisputed market leaders in their industries
D) new companies that are trying to break into the market for an existing product category for
which there is already a strong market leader
E) financially strong companies that are well established in a product category and competitive
with other firms that are also strong in the category
Answer: E
Diff: 3 Page Ref: 82
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
57) When segments evolve in such a way that they no longer warrant individually designed
marketing programs, research aimed at discovering a more generic need or consumer
characteristic applicable to the members of two or more segments can be undertaken to facilitate
________.
A) mass marketing
B) target marketing
C) countersegmentation
D) market segmentation
E) microsegmentation
Answer: C
Diff: 3 Page Ref: 82
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
58) A college that decreases the number of courses it offers as a result of under-enrollment in indepth courses by combining those in-depth courses into one single course is engaging in
________.
A) mass marketing
B) target marketing
C) countersegmentation
D) market segmentation
E) microsegmentation
Answer: C
Diff: 3 Page Ref: 82
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
18
Copyright © 2010 Pearson Education, Inc.
MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by
trying to draw more people to the museum. Research has shown that the most frequent users of
the museum are over 55 years old, have college degrees, and have a household income of over
$100,000. Less frequent users of the museum have the same education and income profile as
frequent users, but tend to be younger, between 35 and 55. Surveys suggest that these younger
adults would use the museum more frequently, but have do not have enough time due to the
demands of their children and families. In order to increase museum entrance revenues, the
administrative team wants to attract people who are likely to become heavy users of the museum
when they get older, and try to bring them into the heavy user category at an earlier age. In an
effort to encourage heavy museum use, the museum has begun a membership program that offers
discounts on museum entrance and gift shop purchases and special exhibit preview events for
members. The museum has also begun to offer free children's art and museum appreciation
classes on weekend afternoons that will allow younger adults to drop their children off once a
week and then enjoy the museum's exhibits and café. In order to promote its new children's
programming, the museum acquired an address list of local households with children, including
the ages of those children, and intends to send tailored messages specifically highlighting
programming that is age-appropriate for each household's children.
59) In the MUSEUM MINI CASE, dividing museum attendees into frequent users, less frequent
users, and non-users is known as ________.
A) geographic segmentation
B) benefit segmentation
C) rate of usage segmentation
D) sociocultural segmentation
E) psychographic segmentation
Answer: C
Diff: 2 Page Ref: 70
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
60) In the MUSEUM MINI CASE, providing museum members with special perks associated
with heavy museum use is an example of a(n) ________.
A) micromarketing program
B) relationship program
C) awareness drive
D) countersegmentation strategy
E) segmentation study
Answer: B
Diff: 2 Page Ref: 74
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
19
Copyright © 2010 Pearson Education, Inc.
61) In the MUSEUM MINI CASE, the museum's approach to promoting its new children's
programming is best described as ________.
A) countersegmentation
B) mass marketing
C) narrowcasting
D) concentrated marketing
E) demographic segmentation
Answer: E
Diff: 3 Page Ref: 58
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
62) In the MUSEUM MINI CASE, the most important differentiating factor between frequent
and less frequent users is ________.
A) income
B) age
C) gender
D) education
E) stage of family life cycle
Answer: E
Diff: 3 Page Ref: 62
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
63) In the MUSEUM MINI CASE, segmenting families based on the age of their children
constitutes a ________ segmentation basis.
A) consumer-rooted, fact-based
B) consumer-rooted, cognition-based
C) consumption-specific, fact-based
D) consumption-specific, cognition based
E) consumption-specific, consumer-rooted
Answer: A
Diff: 3 Page Ref: 58
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
20
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CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day
cruises along five Caribbean routes. It has developed a reputation as a party cruise operator
and the majority of its revenue comes from vacationing college students. This type of customer
demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers
are in college, but practically disappears after graduation. In an effort to encourage its
customers to continue taking Sunshine Cruises after they have graduated, the cruise operator
has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and
biodiversity, both on land and off shore, appealing to young professionals who like to hike and
scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message
for Adventure Cruises on activities at port stops and the convenience of being able to explore
several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly
15% more expensive than party cruises, priced to discourage a raucous college-age party
crowd, and do not allow children under 18. The first season of Adventure Cruises was a great
success and, much to Sunshine's surprise, attracted not only the intended young professional
crowd, but also many empty nester couples that were looking for a reasonably priced, active
vacation.
64) In the CRUISE MINI CASE, Sunshine specifically markets its party cruises to college
students in January and February in anticipation of spring break. This is an example of
________.
A) usage situation segmentation
B) demographic segmentation
C) rate of usage segmentation
D) sociocultural segmentation
E) benefit segmentation
Answer: A
Diff: 3 Page Ref: 71
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
65) In the CRUISE MINI CASE, of the eight VALS segments, Sunshine is most likely targeting
________ with its new adventure Cruises.
A) Makers
B) Survivors
C) Experiencers
D) Strivers
E) Believers
Answer: C
Diff: 3 Page Ref: 68, Table 3.7
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
21
Copyright © 2010 Pearson Education, Inc.
66) In the CRUISE MINI CASE, Sunshine has developed a new cruise offering and is targeting a
single, specific segment with a single marketing message. This is an example of ________.
A) countersegmentation
B) mass marketing
C) microtargeting
D) differentiated marketing
E) concentrated marketing
Answer: E
Diff: 2 Page Ref: 82
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
67) In the CRUISE MINI CASE, Sunshine markets Adventure Cruises as a way to see multiple
islands from the comfort of a single ship, alleviating the hassle of flying between islands and
staying in a different hotel every couple of nights. Targeting consumers who view this
convenience as appealing is an example of ________.
A) countersegmentation
B) cultural segmentation
C) usage rate segmentation
D) demographic segmentation
E) benefit segmentation
Answer: E
Diff: 2 Page Ref: 72
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
68) In the CRUISE MINI CASE, Sunshine is surprised to see that many of its Adventure Cruise
guests are retired empty nesters with disposable income and an interest in travel. These
consumers are most likely members of ________.
A) the echo boomer generation
B) the Net generation
C) Generation Y
D) Generation X
E) the baby boomer generation
Answer: E
Diff: 2 Page Ref: 61
AACSB: Multicultural and Diversity
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
22
Copyright © 2010 Pearson Education, Inc.
RENTAL CAR MINI CASE: Rosetta Car Rental operates car rental lots at airports nationwide. It
specifically targets vacationers and advertises in travel magazines and through travel web sites
with a campaign that emphasizes its quality customer service and well-maintained cars. Rosetta
stocks its lots based on a number of factors, including climate and the type of activities it expects
its renters to undertake. For example, Rosetta stocks more convertible cars in its warm
California lots than in New York. Its Colorado lots stock a large number of station wagons, vans,
and SUVs to accommodate skiers and snow-boarders and all their gear.
69) In the RENTAL CAR MINI CASE, Rosetta exercises ________ when it stocks more
convertible cars in California than in New York.
A) demographic segmentation
B) geographic segmentation
C) sociocultural segmentation
D) psychographic segmentation
E) usage-situation segmentation
Answer: B
Diff: 1 Page Ref: 62
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
70) In the RENTAL CAR MINI CASE, Rosetta exercises ________ when it stocks large
numbers of bigger cars in Colorado.
A) demographic segmentation
B) countersegmentation
C) sociocultural segmentation
D) psychological segmentation
E) usage-situation segmentation
Answer: E
Diff: 2 Page Ref: 71
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
71) In the RENTAL CAR MINI CASE, Rosetta focuses on vacation travelers, as opposed to
business travelers. Dividing the market in this way is known as ________.
A) psychographic segmentation
B) geographic segmentation
C) demographic segmentation
D) sociocultural segmentation
E) psychological segmentation
Answer: A
Diff: 3 Page Ref: 58
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
23
Copyright © 2010 Pearson Education, Inc.
72) In the RENTAL CAR MINI CASE, by focusing on a single segment (vacationers) of the
market, Rosetta is using a(n) ________.
A) differentiated marketing strategy
B) undifferentiated marketing strategy
C) concentrated marketing strategy
D) mass marketing strategy
E) countersegmentation strategy
Answer: C
Diff: 3 Page Ref: 82
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
73) In the RENTAL CAR MINI CASE, segmenting consumers on the basis of their purpose for
travel is an example of a ________ segmentation basis.
A) cognition-based, consumption-specific
B) cognition-based, consumer-rooted
C) fact-based, consumption-specific
D) fact-based, consumer-rooted
E) consumption-based, consumer-rooted
Answer: C
Diff: 3 Page Ref: 82
AACSB: Analytic Skills
Skill: Application
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
74) A company that employs a mass marketing strategy typically offers a variety of specialized
products.
Answer: FALSE
Diff: 2 Page Ref: 54
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
75) One advantage of segmented marketing is that it costs less in terms of advertising campaign
costs and production costs of a standardized product.
Answer: FALSE
Diff: 1 Page Ref: 54
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
76) When trying to sell the same product to every prospective customer with a single advertising
campaign, the marketer must portray its product as a means for satisfying a common or generic
need and, therefore, often ends up appealing to nearly no one.
Answer: TRUE
Diff: 1 Page Ref: 54
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
24
Copyright © 2010 Pearson Education, Inc.
77) Marriott operates 13 lodging brands, such as Fairfield Inn, Residence Inn, and Marriott
Resorts. This is an example of Marriott adopting a mass marketing strategy.
Answer: FALSE
Diff: 2 Page Ref: 54
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
78) Catering to the distinct needs of consumers by offering them clearly differentiated products
is significantly more profitable than mass marketing because it is significantly less expensive.
Answer: FALSE
Diff: 3 Page Ref: 54
AACSB: Reflective Thinking
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
79) Marketers use segmentation research to identify the most appropriate media in which to
place advertisements.
Answer: TRUE
Diff: 2 Page Ref: 55
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
80) Most marketers prefer to target consumer segments that are relatively stable in terms of
demographic and psychological factors and needs that are likely to grow larger over time.
Answer: TRUE
Diff: 1 Page Ref: 55
Skill: Concept
Objective: 3.2: Understand the criteria for targeting selected segments effectively
81) Every segment that can be identified is inherently viable and profitable as a basis for targeted
marketing.
Answer: FALSE
Diff: 2 Page Ref: 55
AACSB: Reflective Thinking
Skill: Concept
Objective: 3.2: Understand the criteria for targeting selected segments effectively
82) Personality and sociocultural values are consumer-rooted, fact-based forms of segmentation.
Answer: TRUE
Diff: 3 Page Ref: 58, Figure 3.3
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
25
Copyright © 2010 Pearson Education, Inc.
83) Geographic characteristics serve as the core of almost all segmentations.
Answer: FALSE
Diff: 2 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
84) Demographic variables can reveal ongoing trends that signal business opportunities, such as
shifts in age, gender, and income distribution.
Answer: TRUE
Diff: 2 Page Ref: 58
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
85) Marketplace decision difficulty - an attribute depicting one's hardship in making buying
decisions - is more typical of older, less-educated consumers.
Answer: TRUE
Diff: 2 Page Ref: 60
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
86) Consumers in different social classes tend to vary in terms of values, product preferences,
and buying habits.
Answer: TRUE
Diff: 2 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
87) Climate is a basis of geographic segmentation.
Answer: TRUE
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
88) Education, occupation, and income tend to be closely correlated.
Answer: TRUE
Diff: 1 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
89) The traditional family life cycle will go through the following stages: bachelorhood,
honeymooners, parenthood, post-parenthood and dissolution.
Answer: TRUE
Diff: 3 Page Ref: 62
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
26
Copyright © 2010 Pearson Education, Inc.
90) Psychographic research is commonly referred to as lifestyle analysis.
Answer: TRUE
Diff: 1 Page Ref: 66
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
91) A recent study found that individuals who purchase their magazines at newsstands are more
active consumers and are more receptive to advertising than consumers who subscribe to the
same magazines. Advertisers that segment consumers based on where they purchase their
magazines are practicing usage situation segmentation.
Answer: TRUE
Diff: 3 Page Ref: 71
AACSB: Analytic Skills
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
92) Culturally distinct segments are rarely prospects for the same product and can only be
targeted efficiently with unique promotional appeals for unique products.
Answer: FALSE
Diff: 2 Page Ref: 69
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
93) Often marketers target consumers who are known to be brand switchers, in belief that such
people represent greater market potential than consumers who are loyal to competing brands.
Answer: TRUE
Diff: 3 Page Ref: 75
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
94) Consumer innovators tend to be brand loyal.
Answer: FALSE
Diff: 3 Page Ref: 75
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
95) Frequency award programs attempt to reward customers who are brand loyal.
Answer: TRUE
Diff: 1 Page Ref: 74
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
27
Copyright © 2010 Pearson Education, Inc.
96) Compared with other hybrid segmentations, microtargeting stands out because the very large
number and diverse origins of the sources used to classify people.
Answer: TRUE
Diff: 2 Page Ref: 80
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
97) Differentiated marketing is a highly appropriate segmentation strategy for financially strong
companies that are well established in a product category and competitive with other firms that
are also strong in that category.
Answer: TRUE
Diff: 2 Page Ref: 82
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
98) In counter segmentation strategy, a company seeks to discover a more generic consumer
need that would apply to the members of two or more segments and recombine those segments
into a larger single segment that can be targeted with an individually tailored product or
promotional campaign.
Answer: TRUE
Diff: 2 Page Ref: 82
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
99) Describe the advantages and disadvantages of a mass marketing strategy. For what types of
companies does this strategy work best?
Answer: Mass marketing is a strategy whereby a company offers one standardized product and
develops only one marketing strategy and advertising campaign to sell that product to the entire
population. The advantage of mass marketing is that it carries a lower cost for the company.
Unfortunately, when trying to sell the same product to every prospective customer with a single
advertising campaign, the marketer must portray its product as a means for satisfying a common
or generic need and, therefore, often ends up appealing to no one. Nevertheless, this strategy
tends to work well for producers of generic manufactured goods, like rubber bands, and for
producers of agricultural products like potatoes.
Diff: 2 Page Ref: 54
Skill: Concept
Objective: 3.1: Understand why market segmentation is essential
28
Copyright © 2010 Pearson Education, Inc.
100) Describe and give examples of consumer-rooted versus consumption-specific bases for
segmentation.
Answer: Consumer-rooted features stem from the consumer's physical, social, and psychological
characteristics, such as demographics, personality traits, and sociocultural values and beliefs.
Consumption-specific features stem from product-specific usage-behaviors or attitudes and
preferences toward specific products or buying situations, such as benefits wanted, level of
involvement, and usage occasion.
Diff: 2 Page Ref: 58
AACSB: Analytic Skills
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
101) Explain how segmentation and targeting can work to the advantage of small players in
industries dominated by large companies.
Answer: Segmentation and targeting enable small producers to avoid head-on competition in the
marketplace by differentiating their offerings on the basis of such features as price, styling,
packaging, promotional appeal, method of distribution, and level of service. This is particularly
important for small players in industries dominated by large companies because small players are
unlikely to have the resources to challenge large market leaders, but may be able to survive in the
market if they are able to develop a market proposition that large incumbents find to be nonthreatening or target segments that large incumbents may find to be too small to service
profitably.
Diff: 2 Page Ref: 54
AACSB: Reflective Thinking
Skill: Application
Objective: 3.1: Understand why market segmentation is essential
102) What personality traits do consumer innovators tend to display, and how can marketers
leverage those traits to help launch new products?
Answer: Consumers who are open-minded and generally perceive less risk than others in trying
new things are likely to be consumer innovators. If personality tests also discover that
innovators tend to score high on exhibition - a trait where a person wants to be the center of a
group - the promotion directed at this group should encourage the innovators to initiate positive
word of mouth and tell others about the new product.
Diff: 2 Page Ref: 64
AACSB: Reflective Thinking
Skill: Application
Objective: 3.3: Understand the bases for segmenting consumers
29
Copyright © 2010 Pearson Education, Inc.
103) Why is family life cycle an important basis for segmentation?
Answer: Because many families pass through similar phases in their formation, growth and
financial dissolution, at each phase the family unit needs differ.
Young singles going through the bachelorhood stage will need basic furniture for their
apartments, and a small, inexpensive vehicle to start them off. Once singles get married and
move into the honeymooners stage, their focus becomes buying a new home and furnishing it,
then when they become parents, the majority of their disposable income will be spent on their
children's needs.
Diff: 2 Page Ref: 62
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
104) Describe the two components of brand loyalty.
Answer: Brand loyalty consists of two components: (1) behavior - the frequency and
consistency of buying a given brand; and (2) attitude - the consumer's feeling of commitment to
the brand.
Diff: 1 Page Ref: 74
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
105) Identify and discuss the five strategic brand benefits that facilitate benefit segmentation.
Answer:
a. Functional benefits (quality)
b. Value for money
c. Social benefit
d. Positive emotional benefits
e. Negative emotional benefits
Diff: 3 Page Ref: 72
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
106) Describe the VALS typology. How does it segment the population?
Answer: The VALS typology classifies the population into 8 distinctive segments based on
consumer responses to attitudinal and demographic questions. The system identifies three
primary motivations: the ideals motivated, the achievement motivated, and the self-expression
motivated. Each of these three major self-motivations represents distinct attitudes, lifestyles, and
decision-making styles.
Diff: 3 Page Ref: 66
Skill: Concept
Objective: 3.3: Understand the bases for segmenting consumers
30
Copyright © 2010 Pearson Education, Inc.
107) Identify and discuss the four criteria that make market segments effective targets.
Answer: To be an effective target, a market segment should be:
a. identifiable.
b. sufficient, in terms of size.
c. stable or growing.
d. accessible in terms of both media and cost.
Diff: 2 Page Ref: 55
Skill: Concept
Objective: 3.2: Understand the criteria for targeting selected segments effectively
108) What is countersegmentation?
Answer: Counter segmentation occurs when companies find that some segments have contracted
over time to the point that they do not warrant an individually designed marketing program. In
this case a company will seek to discover a more generic need that would apply to two or more
segments and recombine those segments into a larger segment that would be targeted with one
promotional campaign.
Diff: 2 Page Ref: 82
Skill: Concept
Objective: 3.4: Understand how segmentation and strategic targeting are carried out
31
Copyright © 2010 Pearson Education, Inc.