Chapter 5-Target Market Segmentation and Evaluation: Essay

Chapter 5Target Market Segmentation and Evaluation
ESSAY
1. How do business markets differ from consumer markets?
ANS:
Answer not provided.
PTS: 1 DIF: Easy OBJ: 05-01 Learn about markets.

NAT: AACSB: Communication | MKTG: Model Customer MSC: Knowledge
2. What are the conditions under which an undifferentiated targeting strategy is

effective? Why are these conditions essential?
ANS:
PTS: 1 DIF: Moderate

OBJ: 05-02 Understand the difference among general targeting strategies.
NAT: AACSB: Reflective Thinking | MKTG: Model Marketing Plan
MSC: Comprehension
3. What are the major steps of the target market selection process?
ANS:

NAT: AACSB: Communication | MKTG: Model Marketing Plan
MSC: Knowledge
4. Compare and contrast the concentrated and differentiated targeting strategies of

market segmentation.
ANS:

NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Knowledge
5. Would a person's political views be an effective variable with which to segment a

market? Why or why not?
ANS:

OBJ: 05-03 Become familiar with the major segmentation variables.
NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Application
6. Identify the four major categories of segmentation of variables for consumer
products, and give three examples of each.
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Communication | CBE: Model Marketing Plan | CBE: Model Customer
MSC: Knowledge
7. Why do marketers rely heavily on demographic characteristics when segmenting

consumer markets?
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Analytic | MKTG: Model Marketing Plan | MKTG: Model Customer
MSC: Comprehension
8. What variables are used to segment business markets?
ANS:
PTS: 1 DIF: Easy

NAT: AACSB: Communication | CBE: Model Marketing Plan | CBE: Model Customer
MSC: Knowledge
9. When evaluating market segments, which three major issues should be

considered?
ANS:
PTS: 1 DIF: Easy

OBJ: 05-05 Understand how to evaluate market segments.
MSC: Knowledge
10. Why is it important for marketers to forecast sales potential for the entire
industry as well as for the individual company?
ANS:

MSC: Knowledge
11. Discuss the differences between the breakdown and buildup approaches to
measuring company sales potential. What are the similarities between these two
approaches?
ANS:

MSC: Knowledge
12. Why is it important for marketers to assess competitors before entering a market
segment?
ANS:

MSC: Knowledge
13. Discuss the difference between sales forecasts and company sales potential. Why
is it important for a marketer to be able to forecast sales?
ANS:

MSC: Knowledge
14. Discuss the advantages and disadvantages of using executive judgment in

forecasting company sales.
ANS:

OBJ: 05-07 Become familiar with sales forecasting methods.
15. Why would a firm survey its sales force to forecast company sales? Why would a
firm choose an expert forecasting survey instead?
ANS:

MULTIPLE CHOICE
16. Any group of people who, as individuals or as organizations, have needs for
products in a product class and who have the ability, willingness, and authority to
buy such products is a(n)
a. business market.
b. market.
c. undifferentiated market
d. segmented market
e. market variable
ANS: B PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
MSC: Knowledge
17. Which of the following is not a characteristic of a consumer market?

a. it consists of purchasers who intend
to consume or benefit from the
purchased products
b. they do not buy products for the
main purpose of making a profit
c. they are sometimes referred to as
B2C markets
d. their purchasing decisions are
always made by only one individual
e. each of us belongs to numerous
markets of this type
ANS: D PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
NAT: AACSB: Analytic | MKTG: Model Customer MSC: Knowledge
18. Which of these statements is not true about business markets?

a. the purchase may be made to resell
the item
b. the purchase is always made by
more than one individual
c. the purchase may be made to use in
general daily operations
d. the purchase may be made to use in
production of another product
e. they can also be referred to as
organizational markets
ANS: B PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
19. Which of the following is not a requirement or characteristic of a market?
a. The ability to purchase a product
b. A large number of people or
organizations
c. The authority to buy a product
d. The willingness to use buying power
e. The need for a specific product in a
specific product category
ANS: B PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

markets.
MSC: Knowledge
20. In order to be considered a market, people do not have to have

a. a need or desire for a particular
product.
b. the ability to purchase the product.
c. discretionary income to purchase
the product.
d. the willingness to use their buying
power.
e. the authority to buy the specific
products.
ANS: C PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

markets.
MSC: Knowledge
21. Consumers that do not own dogs are not likely to be in the market for dog food
because
a. they lack the authority to purchase
the dog food.
b. they do not possess the buying
power for purchasing dog food.
c. their ability to purchase the dog
food is questionable.
d. they do not have the need or desire
for dog food.
e. they are willing to use their buying
power.
ANS: D PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
NAT: AACSB: Analytic | MKTG: Model Customer MSC: Application
22. The ability to purchase a product is a function of

a. buying power.
b. desire.
c. willingness.
d. authority.
e. needs.
ANS: A PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

markets.
23. Adolescents are not considered part of the market for casinos because they
a. have very little buying power.
b. do not have the desire to gamble.
c. are not willing to spend their money
on gambling.
d. cannot afford to gamble their
savings.
e. do not have the authority to
gamble.
ANS: E PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
24. Generally speaking, individuals who are unemployed would not be considered a
target market for Mercedes or other luxury European import sedans because
a. they would not desire such
products.
b. they would not be willing to
purchase such products.
c. they would not have the ability to
purchase such products.
d. such markets are narrowly defined
geographically.
e. they are not authorized to purchase
such products.
ANS: C PTS: 1 DIF: Easy

NAT: AACSB: Reflective Thinking | MKTG: Model Customer MSC: Application
25. Sixteen-year-old high school students do not form a market for alcoholic
beverages because they
a. lack sufficient buying power to form
a market.
b. lack the authority to purchase this
type of product.
c. do not want to purchase this type of
product.
d. do not have sufficient experience
with this type of product.
e. lack the money to purchase this
type of product.
ANS: B PTS: 1 DIF: Easy

NAT: AACSB: Communication | MKTG: Model Customer MSC: Application
26. When marketing research shows that a group of people does not desire a
particular product, the people in that group
a. are a market.
b. do not have the ability to purchase
the product.
c. do not have the authority to
purchase the product.
d. are not a market for the product.
e. are a market but will not purchase
the product.
ANS: D PTS: 1 DIF: Easy

27. The first step in the target market selection process is

a. determining which segmentation
variables to use.
b. selecting specific target markets.
c. identifying an appropriate targeting
strategy.
d. evaluating relevant market
segments.
e. developing market segment profiles.

MSC: Knowledge
28. To find a target market, a firm can use the

a. total market strategy and the
undifferentiated strategy.
b. product differentiation strategy and
the customer differentiation
strategy.
c. demographic strategy and the
psychographic strategy.
d. socioeconomic strategy and the
psychological strategy.
e. undifferentiated strategy, the
concentrated strategy, and the
differentiated strategy.
ANS: E PTS: 1 DIF: Easy

MSC: Knowledge
29. Pillsbury defines all purchasers of flour as its target market. What targeting
strategy would be most appropriate in this case?
a. Concentrated
b. Differentiated
c. Wide appeal
d. Undifferentiated
e. Clustered

30. When a firm designs a single marketing mix and directs it at an entire market for
a particular product, the company is using a(n) ____ strategy.
a. concentrated targeting
b. differentiated
c. heterogeneous market
d. undifferentiated
e. single mix
ANS: D PTS: 1 DIF: Moderate

MSC: Knowledge
31. Why would a company use the undifferentiated strategy?

a. The needs of individual consumers
are dissimilar, and distinctive
marketing mixes are required to
satisfy them.
b. The undifferentiated strategy is the
one strategy that provides
maximum satisfaction to the whole
market.
c. The needs of individual consumers
in the target market for a specific
product are similar, so the
organization can satisfy most
customers with a single marketing
mix.
d. The undifferentiated strategy is
expensive to implement but tends
to produce the most sales.
e. The undifferentiated strategy
requires less time and fewer
resources.
ANS: C PTS: 1 DIF: Moderate

NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Comprehension
32. When the needs of individual consumers in a target market for a specific product
are similar and the organization can satisfy most customers with a single
marketing mix, the best approach to use may be the ____ strategy.
a. undifferentiated
b. differentiated
c. segmented
d. concentrated
e. heterogeneous
ANS: A PTS: 1 DIF: Difficult

33. Which of the following statements about the undifferentiated targeting strategy is
false?
a. The undifferentiated targeting
strategy should be used when the
needs of individual customers are
similar.
b. The undifferentiated targeting
strategy uses one promotional
program aimed at everyone in the
target market.
c. The undifferentiated targeting
strategy is good for use with staple
items, such as sugar and salt.
d. The undifferentiated targeting
strategy uses multiple distribution
systems to best reach individuals in
the target market.
e. The opposite of the undifferentiated
targeting strategy is the
differentiated targeting strategy.

NAT: AACSB: Analytic | MKTG: Model Marketing Plan MSC: Comprehension
34. The ProMark Company manufactures and sells only one type of ballpoint pen at
just one price. All its advertising is the same and is directed at the mass market.
What type of targeting strategy is the ProMark Company using?
a. Extensive
b. Undifferentiated
c. Concentrated
d. Intensive
e. Differentiated
ANS: B PTS: 1 DIF: Moderate

MSC: Application
35. Marketers for C & H Sugar believe that consumers have similar needs for the
product. C & H will most likely use a(n) ____ approach in defining a target market.
a. undifferentiated
b. differentiated
c. product strategy
d. cost-benefit
e. demographic
ANS: A PTS: 1 DIF: Easy

36. If Morton Salt saw all table salt customers as pretty much alike and thus offered
only one marketing mix, it would be using the ____ strategy.
a. directed
b. undifferentiated
c. segmented
d. differentiated
e. product-use

37. A market in which a large proportion of customers have similar needs for a
product is called a(n) ____ market.
a. undifferentiated
b. heterogeneous
c. homogenous
d. differentiated
e. concentrated

MSC: Knowledge
38. The undifferentiated targeting strategy for finding a target market will likely not
be successful if
a. product positioning is needed.
b. the firm defines the total market as
its target market.
c. people within the market have
heterogeneous needs.
d. people within the market have
homogeneous needs.
e. the firm is capable of developing a
single marketing mix that satisfies
all people's needs.

MSC: Comprehension
39. Most markets for products are made up of individuals or groups with diverse
needs for products and are called ____ markets.
a. undifferentiated
b. concentrated
c. homogenous
d. differentiated
e. heterogeneous
ANS: E PTS: 1 DIF: Moderate

MSC: Knowledge
40. Toyota has learned that some people want sports cars, while others want vans,
trucks, sedans, and economy cars. In this instance, Toyota has found its markets
to be
a. heterogeneous.
b. undifferentiated.
c. concentrated.
d. homogeneous.
e. focused.

MSC: Application
41. Individuals, groups, or organizations with one or more similar characteristics that
cause them to have similar product needs are classified as
a. market segments.
b. heterogeneous markets.
c. concentrated markets.
d. demographic segments.
e. strategic segments.

MSC: Knowledge
42. Mattel views the toy market as composed of four age groupings, each with
different needs and desires. Each of these groups are known as
a. an undifferentiated market.
b. heterogeneous.
c. a market segment.
d. a marketing mix.
e. a concentrated market.

43. The purpose of market segmentation is to

a. differentiate products.
b. divide a total market to enable a
marketer to develop a more precise
marketing mix.
c. reduce the overall cost of marketing
activities.
d. identify a single marketing mix that
will be satisfactory for the general
market.
e. meet the needs of homogeneous
markets.

MSC: Comprehension
44. The process of dividing a total market into market groups because people within
each group have relatively similar product needs is called
a. segmentation.
b. diversification.
c. target marketing.
d. concentration.
e. customization.

MSC: Knowledge
45. Several conditions must exist for market segmentation to be successful. These
conditions include all of the following except
a. the total market should be divided
so that segments can be compared
on sales potential, costs, and profits.
b. customers' needs for the product
must be homogeneous.
c. the company must be able to reach
the chosen segment with a
particular marketing mix.
d. segments must be identifiable and
divisible.
e. at least one segment must have
enough profit potential to justify
developing and maintaining a
special marketing mix for that
segment.
ANS: B PTS: 1 DIF: Difficult

MSC: Knowledge
46. A business advantage of the concentrated targeting strategy for any company is
that it
a. requires less market research and
information.
b. requires less intensive analysis of
customers' characteristics and
needs.
c. allows a firm to utilize all of its
production capacity.
d. maintains the firm's flexibility in
moving into other market segments.
e. allows a firm to develop a special
marketing mix for a single market
segment.

47. A targeting strategy in which an organization targets a single market segment

using one marketing mix is called a(n) ____ strategy.
a. selective
b. focused
c. differentiated
d. concentrated
e. undifferentiated

MSC: Knowledge
48. When markets are comprised of people with differing product needs, the
marketing manager should use a(n) ____ strategy.
a. concentrated or differentiated
targeting
b. market-intensive
c. integrated
d. product-oriented
e. undifferentiated

MSC: Knowledge
49. A disadvantage of the concentrated targeting strategy is that

a. the firm's financial condition is tied
to a single and specialized
marketing mix.
b. large sales volumes cannot be
generated.
c. production costs may be higher than
with other strategies.
d. marketing personnel may become
dissatisfied with the limited
opportunities provided by this
approach.
e. marketing costs are often higher
than for other strategies.
ANS: A PTS: 1 DIF: Moderate

50. If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals
earning more than $250,000, it would be using a(n) ____ strategy.
a. homogeneous
b. undifferentiated
c. multisegmented
d. concentrated
e. stratified

51. Tiffany's markets its exclusive jewelry and gifts to high-income individuals
interested in high-quality products and a well-known brand name. It uses the
same marketing mix to reach this market. Tiffany's uses a(n) ____ strategy.
a. undifferentiated
b. differentiated targeting
c. exclusive targeting
d. heterogeneous
e. concentrated targeting

MSC: Application
52. Interior Designs Inc. sells expensive custom-made draperies, bedding, and
accessories using a single marketing mix and is therefore most likely using a(n)
____ targeting strategy.
a. concentrated
b. differentiated
c. exclusive
d. focused
e. undifferentiated

MSC: Application
53. The primary advantage of a concentrated targeting strategy is
a. it meets the needs of a wide range
of consumers.
b. it allows a firm to specialize to meet
specific customer needs.
c. it is more flexible than any other
approach.
d. it is the least risky targeting
approach.
e. its customers are the most willing to
repurchase the same brands.

54. Procter & Gamble markets Cheer detergent to young singles and couples and
Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy
for laundry detergents.
a. multiuse
b. differentiated
c. stratified
d. undifferentiated
e. concentrated

55. Volkswagen markets its Routan to large families, its R32 racecar to men, and its
Jetta to young singles. What targeting approach is Volkswagen using?
a. Concentrated
b. Strategic
c. Differentiated
d. Undifferentiated
e. Multisegmented

56. A targeting strategy in which an organization directs its marketing efforts at

several segments is called a(n) ____ targeting strategy.
a. differentiated
b. total market
c. concentrated
d. undifferentiated
e. integrated

MSC: Knowledge
57. Which of the following products is most likely to be marketed, using an

undifferentiated approach?
a. bicycle
b. computer
c. notebook
d. seasoning salt
e. oscillating fan

MSC: Knowledge
58. After a firm has identified an appropriate targeting strategy, the next step in the
target market selection process is
a. determining the demographic
variables of the target market.
b. developing market segment profiles.
c. determining which segmentation
variables to use.
d. selecting specific target markets.
e. evaluating relevant market
segments.

MSC: Knowledge
59. Characteristics of individuals, groups, or organizations that are used for dividing a
total market into smaller homogeneous groups are called ____ variables.
a. marketing
b. classification
c. segmentation
d. stratification
e. dividing

MSC: Comprehension
60. Age, rate of product use, location, and gender are all examples of common
a. demographic variables.
b. geographic characteristics.
c. targeting strategies.
d. psychographic variables.
e. segmentation variables.

MSC: Knowledge
61. Segmentation variables are usually grouped into four categories:

a. demographic, geographic, religion,
and income.
b. geopolitical, income, behavioristic,
and psychographic.
c. attitudes, lifestyles, behaviors, and
gender.
d. geographic, demographic,
psychographic, and attitudes.
e. demographic, geographic,
psychographic, and behavioristic.

MSC: Knowledge
62. Which of the following is not one of the major categories of consumer market
segmentation variables?
a. Demographic characteristics
b. Geographic variables
c. Psychographic dimensions
d. Situational variables
e. Behavioristic characteristics

63. Alpine Ski Shops U.S, is looking for new markets. Since their market is based
mainly on access to snow, they would most likely use which base for
segmentation?
a. behavioristic
b. demographic
c. psychographic
d. environmental
e. geographic

MSC: Knowledge
64. McDonald's uses a segmentation strategy for its sandwiches based on market
characteristics such as age, gender, or income. Which of the following
segmentation variables is McDonald's using?
a. Demographic
b. Geographic
c. Psychographic
d. Product-related
e. Education

65. With its Venus razor, Gillette was the first marketer to offer a triple blade razor
specifically designed for women. This is an example of market segmentation
using ____ variables.
a. demographic
b. psychographic
c. geographic
d. family life cycle
e. product use

MSC: Application
66. Kelly's Kids is a home-based business that sells high-quality children's clothing at
premium prices using in-home parties. These in-home parties typically cater to
families with small children and middle- to upper-middle-class income. Kelly's Kids
is using ____ variables to segment its market.
a. demographic
b. psychographic
c. sociographic
d. behavioristic
e. geographic

67. Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products
whose marketers have used segmentation based on
a. age.
b. education.
c. product use.
d. gender.
e. income.

MSC: Application
68. A marketer that targets customers based on marital status and the presence and
age of children is using
a. behavioristic segmentation.
b. lifestyle variables.
c. psychographic variables.
d. family life cycle.
e. phase of life segmentation.

69. Which of the following products is most likely to have its market segment based
on age?
a. Bass shoes
b. Lipton Iced Tea
c. Bic pens
d. Legos
e. Carpet

70. If Campbell were to offer single serving "Soup for One" packages to small
household markets, it would be using segmentation based on
a. income.
b. ethnicity.
c. taste.
d. geographic considerations.
e. family life cycle.

71. Which of the following products is least likely to be segmented according to

stages in the family life cycle?
a. Single-family homes
b. Ford automobiles
c. European vacations
d. Diet Coke
e. General Electric appliances

72. Family life cycle is most typically based on

a. income.
b. geographic location.
c. marital status and age of children.
d. occupation.
e. buying power.
NAT: AACSB: Communication | MKTG: Model Marketing Plan | MKTG: Model
Customer
MSC: Knowledge
73. Population density and city size are ____ variables used for market segmentation.
a. geographic
b. demographic
c. psychographic
d. environmental
e. geodemographic

MSC: Knowledge
74. Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the
North. Which of the following segmentation variables is Zerex using?
a. Demographic
b. Psychographic
c. Life cycle
d. Geographic
e. Product use

75. Many marketers are concerned about the number of potential customers within a
certain area of land because of the different requirements to serve dissimilar
areas. What is this segmentation variable called?
a. Micromarketing
b. Population
c. Market density
d. MSA
e. PMSA

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Knowledge
76. Subaru is producing a new crossover van with all-wheel drive. Which of the
following would be a likely variable for segmenting the market for this new
model?
a. Religion
b. Geographic location
c. Income
d. Political views
e. Ethnicity
ANS: B PTS: 1 DIF: Easy REF: p. 166
NAT: AACSB: Analytic | CBE: Model Marketing Plan MSC: Application
77. Systems such as PRIZM and Acorn provide companies with lifestyle and
demographic information about neighborhoods throughout the United States. This
information is used to aid
a. behavioristic segmentation.
b. geodemographic segmentation.
c. market density analysis.
d. demographic segmentation.
e. geographic segmentation.

MSC: Knowledge
78. Justin Franklin's company is interested in locating areas where the average
income is high, the average age range is 25-35 years, and the lifestyles of the
people involve extreme adventures and dangerous leisure activities. His company
would most likely find possible markets through
a. U.S. Census Bureau information.
b. geographic segmentation variables.
c. geodemographic segmentation.
d. climate information.
e. psychographic segmentation.

79. Micromarketing is
a. a market segmentation approach in
which firms focus precise marketing
efforts on very small geographic
markets.
b. developing a very specific
marketing mix that will effectively
meet the needs of only a small
segment of the market.
c. marketing efforts that are tightly
controlled by high-level executives
in the organization.
d. a way to segment the market to
meet the needs of individuals with
the same motives and personality
attributes.
e. creating advertising that is so
specific to a certain type of
individual that few people outside
that micromarket will respond to the
message.

MSC: Knowledge
80. Retail-site location analyses, unique product offerings, and special advertising
campaigns are all examples of the use of
a. market density.
b. demographic segmentation.
c. behavioristic segmentation.
d. environmental segmentation.
e. micromarketing.

MSC: Knowledge
81. Which of the following is the biggest drawback to using psychographic variables?
a. They are not strongly reflective of
consumer behavior.
b. They are difficult to measure.
c. They give poor information about
consumer needs.
d. They do not reflect socioeconomic
characteristics of consumers.
e. The resulting segments are difficult
to be reached.

NAT: AACSB: Analytic | MKTG: Model Customer MSC: Comprehension
82. The three most commonly used psychographic segmentation variables are
a. personality, perception, and
learning.
b. personality, perception, and
behavior.
c. motives, attitudes, and lifestyles.
d. attitudes, personality, and
perception.
e. personality, motives, and lifestyles.

83. When research indicated that Bluetooth's products were not reaching the correct
target market, marketers of Bluetooth decided to change from demographic
segmentation to psychographic segmentation. Which group of new segmentation
variables will Bluetooth now be using?
a. Geographic location of customers
b. Age, sex, and socioeconomic
characteristics
c. Social class variables
d. Personality characteristics, motives,
and lifestyles
e. Family life cycle, social class, and
religion

NAT: AACSB: Reflective Thinking | MKTG: Model Marketing Plan | MKTG: Model
Customer
MSC: Application
84. When using personality characteristics as a market segmentation variable,

marketers generally
a. conduct personality assessments of
their potential target market to
determine which personality
characteristics they possess.
b. use research developed by clinical
psychologists to determine which
personality characteristics
consumers using their products are
most likely to have.
c. use generic characteristics that all
members of the population have.
d. use a positively viewed
characteristic they assume much of
their target market has or would like
to have.
e. conduct a series of focus groups to
determine both the positive and
negative characteristics members of
their target market are perceived to
have.

Customer
MSC: Knowledge
85. The psychographic variable that includes numerous characteristics related to

people's activities, interests, and opinion is
a. motive.
b. social class.
c. personality.
d. stage in family life cycle.
e. lifestyle.

Customer
MSC: Knowledge
86. If a company segments its market on the basis of their reasons for purchasing a
particular product, the primary segmentation variable in use is
a. lifestyle.
b. motives.
c. personality.
d. benefit expectations.
e. personality attributes.

Customer
MSC: Knowledge
87. Demographic variables such as income and occupation, as well as how people
spend their time and the importance of things in their surroundings, are all
factors considered in ____ segmentation.
a. psychographic
b. social class
c. lifestyle
d. personality
e. family life cycle

Customer
MSC: Knowledge
88. A widely used system for classifying individuals on the basis of lifestyle is
a. VALS.
b. PRIZM.
c. CMSA.
d. LIFO.
e. Prospect Zone.

MSC: Knowledge
89. Which of the following is an example of a behavioristic segmentation variable?

a. Family size
b. Climate
c. Age
d. Usage rate
e. Personality characteristics
90. Budweiser may choose to segment its market based on heavy, moderate, and
light drinkers of its alcoholic beverages. This is an example of market
segmentation based on
a. behavioristic variables.
b. benefits.
c. lifestyles.
d. psychographic variables.
e. demographic variables.

91. End use, price sensitivity, and brand loyalty are all ____ variables that can be
used in market segmentation.
a. psychographic
b. usage
c. demographic
d. geodemographic
e. behavioristic

MSC: Knowledge
92. Alli segments its diet pills based on those who have morning cravings, those who
tend to overeat near the end of the day, those who need all day long appetite
suppression, and those who want appetite control and more energy. This is an
example of market segmentation based on variables of
a. demographics.
b. lifestyles.
c. psychographics.
d. behavior.
e. personality characteristics.

MSC: Application
93. The division of a market according to what benefits consumers want from the
product is called ____ segmentation.
a. behavioristic
b. product usage
c. benefit
d. end-purpose
e. advantage
Customer
MSC: Knowledge
94. Variables such as geographic location, type of organization, customer size, and
type of product usage are used to segment ____ markets.
a. consumer
b. business
c. government
d. international
e. most target

MSC: Knowledge
95. Dell segments its business markets into small business, corporate, government
agencies, K-12 schools, and higher education institutions. The primary
segmentation variable used in this example is
a. geographic location.
b. type of organization.
c. secondary product use.
d. customer size.
e. market potential.

96. Which of the following variables would most likely be used to segment a business
market?
a. An attitude of the company's CEO
b. The geographic location of the
company
c. The lifestyle of the company's
buying agent
d. Net income generated by the
company
e. Common opinions of the company's
employees

97. Through marketing newsprint to newspaper publishers and glass manufacturers

that use it in packing, International Paper segments its market based on
a. customer size.
b. psychographics.
c. demographics.
d. use of product.
e. geographic location.

98. Bethlehem Steel provides steel for a variety of uses to its various customers.
Customers have different needs for the steel and thus Bethlehem has to prepare
the raw steel differently depending on how customers will use it in their
production processes. The primary business segmentation variable in this
example is
b. customer size.
c. product use.
d. customer importance.
e. organization classification.

MSC: Application
99. After an organization has determined which of the many segmentation variables
it will use, the next step in the target market selection process is
a. evaluating each of the relevant
market segments.
b. selecting the specific target
markets.
c. reviewing the appropriate marketing
strategy.
d. analyzing the interaction between
segmentation variables.
e. developing market segment profiles.

100. ____ describe the similarities among potential customers within a market segment
and explain the differences among people in different market segments.
a. Market segmentation variables
b. Market segment profiles
c. Segmentation grids
d. Market differentiation indexes
e. Market concentrations

OBJ: 05-04 Know what segment profiles are and how they are used.
101. Yvonne and Garret are looking at information about how their organization's
products could fit potential customers' needs. This information deals with
demographic characteristics, product benefits sought, lifestyles, geographic
factors, brand preferences, and usage rates. They are most likely looking at
a. the sales force survey results.
b. the results of sales forecasting.
c. a market trend analysis.
d. a market segmentation
discrimination analysis.
e. a market segment profile.

102. The total volume of a product, for all firms in an industry, that would be
purchased by specific customer groups within a specified time period at a given
level of industry-wide marketing activity, is the
a. competitor sales potential.
b. sales objective.
c. forecasted sales.
d. company sales potential.
ANS: E PTS: 1 DIF: Difficult

103. The maximum percentage of market potential that an individual firm can expect
to obtain for a specific product is the
a. sales forecast.
b. market potential.
c. company sales potential.
d. company sales objective.
e. market share goal.

NAT: AACSB: Communication | MKTG: Model Strategy MSC: Knowledge
104. General Electric calculates that the total number of light bulbs sold to consumers
in the next year by all light bulb producers is 1 billion, given anticipated
marketing efforts by the firms involved. This figure represents the industry's
a. sales potential.
c. target growth rate.
d. sales forecast.
e. sales objective.

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Application
105. If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream
cones sold in the United States, this percentage would represent the ice cream
marketer's
a. target growth rate.
b. sales forecast.
c. sales objective.
d. company sales potential.
ANS: D PTS: 1 DIF: Difficult

NAT: AACSB: Communication | MKTG: Model Strategy MSC: Application
106. Using the breakdown approach to sales potential, estimates are made
a. by referring to specific geographic
factors.
b. by establishing levels of marketing
effort that will be required to
achieve specific levels of sales.
c. without reference to industry
marketing efforts.
d. without reference to general
economic conditions.
e. by starting with general economic
conditions.
ANS: E PTS: 1 DIF: Difficult

107. The manager at a local recreational vehicle store, Off-Road Rage, believes the
next two years will be difficult because of an economic recession. Using this
forecast, he determines the effect on the industry's market potential and then
estimates how his company's potential sales will look based on this outlook. This
manager is using a ____ approach to estimating sales potential.
a. breakdown
b. recessionary
c. buildup
d. pyramid
e. dimensional
ANS: A PTS: 1 DIF: Difficult

108. Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find
out how much fiberglass insulation he intends to use in building homes during the
next year. Albert then multiplies that number by the total number of builders in
the territory. He is using a ____ approach to measure sales potential.
a. multivariable
b. use of product
c. breakdown
d. regression
e. buildup

109. The buildup approach measure of sales potential

a. starts with broad estimates of
general economic activity.
b. ends with an estimate of a single
firm's sales of a specific product.
c. starts with forecasts about demand
for a specific product within a
relatively small area.
d. does not use sales estimates.
e. is seldom employed by industrial
firms.

110. When evaluating market segments, assessment of competitors is important

because
a. it is difficult to segment a market
when it has multiple competitors.
b. an absence of competitors usually
creates difficulties in accurately
measuring segment sales potential.
c. sales estimates may cause a
segment to appear to be lucrative,
but there may be several
competitors that together have a
large share of that segment.
d. a competitive analysis may lead to
confusion as to who are the key
competitors.
e. competition is generally not a major
problem as long as a marketer is
aware of it.

111. Estimating the cost of entering a market and focusing on a specific target
segment is important because
a. cost estimates are crucial to
estimating sales potential
accurately.
b. higher costs will keep other
potential competitors from entering
that particular segment.
c. customers are more likely to be
attracted to marketers that invest
heavily in the target segment.
d. the organization's marketers need
to know if they can reach the
segment at costs equal to or below
competitors' costs.
e. higher cost generally ensures long-
term success.

112. The final step in the target market selection process is

a. implementing the appropriate
marketing mix for the target market.
b. evaluating relative market
segments.
c. eliminating market segments that
are cost prohibitive.
d. selecting specific target markets.
e. revising the final segmentation
variables based on target selection.

OBJ: 05-06 Identify the factors that influence the selection of specific market
segments for use as target markets. NAT: AACSB: Communication |
MKTG: Model Marketing Plan
MSC: Knowledge
113. Frito-Lay Snack Foods is currently conducting market segmentation studies. For
several segments, they have completed competitive assessments and cost
estimates. The next major step they must take is to
a. determine which segmentation
variables to use.
b. develop market segment profiles.
c. identify the appropriate targeting
strategy.
d. select specific target markets.
e. develop sales forecasts.

MKTG: Model Marketing Plan
MSC: Application
114. When a marketer is engaged in the target market selection process and has
assessed relevant market segments by considering such factors as sales
estimates, competition, and estimated costs, the marketer is ready for the next
step, which is to
a. identify the appropriate targeting
strategy.
b. determine which segmentation
variables to use.
c. develop market segment profiles.
d. evaluate relevant market segments.
e. select specific target markets.

segments for use as target markets. NAT: AACSB: Analytic | MKTG:
Model Marketing Plan
MSC: Knowledge
115. When selecting specific target markets, a firm should

a. revert to an undifferentiated
approach if the market is deemed
heterogeneous.
b. choose the segments most in line
with the firm's objectives and long-
term growth.
c. choose all segments that are
determined to be profitable for the
organization.
d. choose the minimum number of
segments necessary to achieve
company sales potential.
e. pick the segments with the best
sales forecasts for the upcoming
period of time.

Model Strategy
MSC: Knowledge
116. Guess? will be spending $22 million on marketing activities next year and expects
to sell 30 million pairs of jeans. These 30 million pairs represent the company's
a. sales potential.
c. sales forecast.
d. market sales.
e. selected market.

117. The amount of product a company expects to sell during a specific period at a
specified level of marketing activity is called the
a. company sales potential.
b. revenue estimate.
c. company sales prediction.
d. market potential.
e. sales forecast.

118. All of the following are categories of common forecasting techniques for business
except
a. surveys.
b. time series analysis.
c. customer determined.
d. executive judgment.
e. market tests.

119. Relying on executive judgment for forecasting may be adequate when

a. levels of marketing efforts put forth
by competitors vary considerably.
b. recent events give the executive
specific impressions of product
demand.
c. product demand is erratic.
d. the executive conducts surveys.
e. the executive has considerable
experience and product demand is
relatively stable.

120. Intuition and expediency are primary characteristics of which of the following
sales forecasting methods?
a. Surveys
b. Executive judgment
c. Cycle analysis
d. Market tests
e. Industry indicators

121. Company sales forecasts are least likely to be based on

a. executive judgment.
b. customer surveys or sales force
surveys.
c. time series analysis.
d. market tests.
e. single-variable segmentation.

122. When a business has a relatively small number of customers, a preferred method
of forecasting is
a. regression analysis.
b. trend analysis.
c. the Delphi technique.
d. a market test.
e. a customer forecasting survey.

NAT: AACSB: Analytic | MKTG: Model Strategy MSC: Comprehension
123. The most important reason that a firm might use a sales force forecasting survey
to determine its sales forecast is
a. salespeople are generally optimistic
about the future and will provide
excellent forecast targets.
b. most salespeople tend to have a
pessimistic outlook, which is more
likely to result in an achievable sales
forecast.
c. this tends to be the fastest way to
determine a good sales forecast for
the upcoming period.
d. the averaging and other statistical
techniques applied to these
forecasts result in extremely
accurate numbers.
e. the sales staff is closer to the actual
customers on a regular basis than
anyone else in the organization.

124. When a company has its sales forecasts prepared by management consultants,
economists, or college professors, it is using a(n)
a. expert forecasting survey.
b. Delphi technique.
c. random factor analysis.
d. external judgment survey.
e. market test.
NAT: AACSB: Communication | MKTG: Model Research MSC: Knowledge
125. Often, the Delphi technique is used in conjunction with an expert forecasting
survey. The major objective is to
a. allow an opportunity to obtain
diverse expert opinions.
b. allow experts to work separately to
reach a consensus as to their
forecasts.
c. reach an accurate sales forecast
through the use of multiple sales
forecasting techniques.
d. determine if the expert forecasting
survey is superior to regression
analysis.
e. assess the extent to which this
year's sales forecast is more
accurate than that of previous
years.

126. The forecasting techniques that assume past sales patterns will continue into the
future are all variations of
b. random factor analysis.
c. seasonal analysis.
d. time series analysis.
e. past sales forecasting surveys.

127. A forecasting method that predicts sales based on relationships between past
sales and other variables is called
b. customer forecasting surveys.
c. the Delphi technique.
d. random factor analysis.
e. time series analysis.

128. While developing a company sales forecast at Safeway, Barb Herrington

discovered a pattern in sales volume over the past five years. She likely used
which sales forecasting technique?
a. Surveys
c. Time series analysis
d. Market tests
e. Regression analysis

NAT: AACSB: Analytic | MKTG: Model Research MSC: Application
129. Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting
company sales, she finds a direct association between past sales and per capita
income. Which sales forecasting technique is Katy using?
a. Surveys
d. Market tests

130. The sales prediction technique based on the correlation between sales and other
factorssuch as population density, per capita income, or family sizeis
a. executive judgment.
b. time series analysis.
c. regression analysis.
d. a market test.
e. an expert survey.

131. The Sara Lee Company is attempting to forecast sales for a new ice cream cake.
To come up with an accurate forecast, Sara Lee places the product in Atlanta
supermarkets for a period of four months. In this instance, Sara Lee is using
which forecasting method?
a. Time series analysis
b. Market test
c. Executive judgment
d. Regression analysis
e. Survey

132. The sales forecasting method that consists of making a product available to
buyers in one or more locations and measuring purchase response is
a. a market test.
b. regression analysis.
c. trend analysis.
d. a survey.
e. the Delphi technique.

133. The forecasting method that utilizes a firm's historical sales data to find patterns
in the firm's sales volume over time is
a. the regression method.
b. customer forecasting.
c. a market test.
d. sales force forecasting.
e. time series analysis.

134. In an effort to forecast his firm's sales for the coming year, Henry Thompson
takes sales for the last three years and calculates a growth trend. Henry is
employing which forecasting method?
a. Time series analysis
c. Surveys
d. Regression analysis
e. Market tests

NAT: AACSB: Analytic | MKTG: Model Research MSC: Knowledge
135. Which of the following sales forecasting techniques would generally be most
suitable for estimating sales of a new product?
a. Executive judgment
b. Customer surveys
d. Market tests
e. Regression methods

136. Which of the following forecasting methods is least dependent on historical sales
data?
a. Regression analysis
b. Trend analysis
d. Cycle analysis
e. A market test

NAT: AACSB: Analytic | MKTG: Model Research MSC: Comprehension
137. What is the main problem with using a market test as a forecasting tool?
a. Difficult to interpret
b. Expensive
c. Inaccurate
d. Unacceptable to consumers
e. Overused

Scenario 6.1
Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger
customer. Treatment options include manicures, pedicures, facials, tea parties,
and dress up photos. Parents can even purchase a birthday party package. Lil'
Angels offers its services only to girls under the age of 14. Originally begun in
Delaware, Lil' Angels is considering opening its spa/salons in other parts of the
country and is planning to expand its offerings to girls aged 14 to 17. The
company realizes that some changes may be needed. For example, management
wants to find out if the older girls will be interested in their birthday party and tea
party services.
138. Refer to Scenario 6.1. Lil' Angels Kids Spa is currently using a(n)____ targeting
strategy.
a. undifferentiated
b. exclusive
c. concentrated
d. differentiated
e. selective

139. Refer to Scenario 6.1. Which of the following best describes Lil' Angels' current
approach to the market?
a. It is segmenting the market
according to demographic variables.
b. It is segmenting the market
according to product-related
variables.
c. It has chosen a segment that is not
identifiable and divisible.
d. Its market is impossible to reach
because of legal constraints.
e. It is not segmenting the market but
is attempting to reach everyone
with the product.

140. Refer to Scenario 6.1. Which of the following bases is Lil' Angels using to segment
its market?
a. behavioristic
b. frequency of use
c. age
d. income
e. family life cycle

MSC: Application
141. Refer to Scenario 6.1. What method should Lil' Angels use to forecast sales in new
regions?
a. Sales force survey
b. Time series analysis
c. Correlation method
d. Market test

Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the

world. After looking at the total market for locomotive engines, the company
found that different rail lines wanted engines. Major rail lines in the U.S. and
South America wanted engines to haul heavy freight. Rail lines in Sweden and
Germany were interested in a cleaner, greener locomotive engine. Rail lines
operated by several Eastern European countries wanted locomotive engines for
running short distances between cities in their own country. GE Transportation is
currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and
its Dash 9, suited for shortline transport.
142. Refer to Scenario 6.2. Which of the following targeting strategies is GE

Transportation most likely using?
a. Undifferentiated
b. Differentiated
c. Concentrated
d. Selective
e. Market diffusion

MSC: Application
143. Refer to Scenario 6.2. What segmentation variable is GE Transportation using to

select a target market?
a. Demographic
b. Benefit expectations
c. Income
d. Volume usage
e. Psychographic

MSC: Application
144. Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only
locomotive engines for rail lines in the United States. The segmentation variable
then would be
b. type of organization.
c. market density.
d. product use.
e. customer size.

145. Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail
lines throughout the world will purchase some kind of locomotive engine next
year. That number represents the
a. company sales potential.
b. breakdown approach.
c. market potential.
d. buildup approach.
e. company sales forecast.
ANS: C PTS: 1 DIF: Difficult

146. Refer to Scenario 6.2. If a GE Transportation researcher analyzes monthly sales

data for a four-year time frame, looking for periodic fluctuations, the researcher is
doing a ____ analysis.
a. trend
b. seasonal
c. cycle
d. random factor
e. regression

NAT: AACSB: Communication | MKTG: Model Research MSC: Application
TRUE/FALSE
147. A market is a group of people who, as individuals, have needs for products in a
product class and have the ability, willingness, and authority to purchase such
products.
ANS: T PTS: 1 DIF: Easy OBJ: 05-01 Learn about

markets.
148. Individuals' ability to buy depends on the amount of their buying power.

markets.
149. The four requirements of a market are that the individuals in the market must
have a need for the product and the ability, willingness, and authority to buy it.

markets.
150. A person who has buying power also has the authority to buy.
ANS: F PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

markets.
151. The five-step process usually used for target market selection includes identifying
the appropriate targeting strategy, determining which segmentation variables to
use, developing market segment profiles, evaluating relevant market segments,
and deciding which targeting strategy to use.
ANS: F PTS: 1 DIF: Moderate

152. There are only two basic strategies for selecting target markets: the
undifferentiated targeting strategy and the concentrated targeting strategy.
ANS: F PTS: 1 DIF: Easy

153. A company sometimes defines a total market as its target market.
ANS: T PTS: 1 DIF: Easy

154. One condition for effective segmentation is that at least one segment must have
substantial profit potential.
ANS: T PTS: 1 DIF: Moderate

155. A firm using a concentrated targeting strategy aims its marketing activities at one
segment of a market.

156. The undifferentiated strategy can be effective for an organization that has a
homogeneous market and can develop and maintain a single marketing mix.

157. An undifferentiated targeting strategy does not target a single market with one
marketing mix.

MSC: Knowledge
158. The concentrated targeting strategy is one in which an organization directs its
marketing efforts toward a single market segment through one marketing mix.

MSC: Knowledge
159. A differentiated targeting strategy is when the organization targets two or more
markets by developing a single marketing mix.

MSC: Knowledge
160. Only one variable can be used to segment a market.

161. Segmentation variables are characteristics of individuals, groups, or organizations

in a total market.

MSC: Knowledge
162. A segmentation variable is used to group smaller markets into one larger market.

MSC: Knowledge
163. Demographic characteristics are commonly used to segment a market because

they are closely related to consumers' product needs and purchasing behavior.

Customer
MSC: Knowledge
164. Family life cycle is a psychological dimension used for segmenting markets.

165. A firm operating in a one-state market would not regionalize its market.

166. The term market density refers to the number of potential customers per unit of
land area, such as per square mile.

167. One problem with using psychographic variables for segmentation purposes is
that they are difficult to measure accurately.

168. Motives can be used to segment markets.

169. Lifestyle is a product-related variable.

170. Lifestyle analysis focuses on people's activities, interests, and opinions.

171. The ways in which customers use a particular product may be a basis for
segmenting the market.

Customer
MSC: Knowledge
172. One way marketers can segment business markets is according to their
geographic location.

MSC: Knowledge
173. A marketer may segment a market in terms of the benefits that customers expect
to receive from a particular product.

Customer
MSC: Knowledge
174. A market segment profile deals primarily with demographic characteristics.

175. A market segment profile describes the similarities among potential customers
within a segment and explains the differences among people across market
segments.

176. A market segment profile may cover such aspects as demographic

characteristics, geographic factors, product benefits sought, lifestyles, brand
preferences, and usage rates.

177. A market segment profile provides customers with an understanding of how a

business can use its capabilities.

178. Market segment profiles help determine the most desirable segment or segments
in relation to the firm's strengths, weaknesses, objectives, and resources.

179. The information yielded by market segment profiles usually is not very useful
later in the marketing process.

180. The two general approaches to measuring company sales potential are the
breakdown and the buildup approach.

181. Company sales potential is the maximum percentage of market potential that an
individual firm within an industry can expect to obtain for a specific product.

182. Market potential is the amount of a product that an organization could sell during
a specified time period.

183. The size of the market potential places limits on the size of the company sales
potential.

184. During the evaluation of relevant market segments, competitive assessment is

used primarily to determine the possibility of additional competitors entering
particular segments.

185. The sum of firms' marketing efforts equals industry marketing efforts.

186. When evaluating relevant market segments, cost estimates are important to
determine if an organization entering a particular segment can operate at costs
equal to or below those of competitors.

187. It is likely that during the fifth step of the target market selection process,
marketers will decide not to enter and compete in any market segments.

Model Strategy
MSC: Knowledge
188. When a firm's management is making the final selection of specific target
markets to enter, it should consider whether the organization has the financial
resources, managerial skills, expertise, and facilities needed to effectively
compete in the selected segments.

segments for use as target markets. NAT: AACSB: Reflective Thinking |
MKTG: Model Strategy
MSC: Knowledge
189. Consideration of the firm's overall objectives usually does not influence the final
selection of a target market segment.

MSC: Knowledge
190. At times, after doing segmentation analysis, marketers in an organization decide

not to enter any segments.

MSC: Knowledge
191. A company sales forecast is the amount of a product that a firm actually expects
to sell during a specific time period.

192. Sales forecasts are always long-range in nature.

193. The executive judgment method of sales forecasting is very accurate in predicting
future sales.

194. In developing a company sales forecast, the forecasting methods are limited to
surveys and correlation methods.

195. The types of surveys used to forecast sales are customer, executive, and
competitor surveys.

196. Surveys are sometimes used to forecast sales.

197. In a customer survey, a marketer would question customers about the types and
quantities of products they intend to buy during a specific time period.

198. Customer surveys as a means of forecasting sales are not appropriate for a firm
that has relatively few customers.

199. One limitation of the sales force survey technique is that salespeople often
believe that their sales goals are determined by their sales estimates.

200. Trend analysis is a sales forecasting technique based on historical sales data.

201. A marketer can use regression analysis techniques to predict the sales of new
products.

202. Through market tests, a forecaster gains data regarding consumers' intended
purchases.

203. A firm ordinarily uses the same sales forecasting method for determining short-
range and long-range sales forecasts.


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Chapter 5Target Market Segmentation and Evaluation

1. How do business markets differ from consumer markets?

PTS: 1 DIF: Easy OBJ: 05-01 Learn about markets.

2. What are the conditions under which an undifferentiated targeting strategy is

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

4. Compare and contrast the concentrated and differentiated targeting strategies of

PTS: 1 DIF: Moderate

5. Would a person's political views be an effective variable with which to segment a

PTS: 1 DIF: Moderate

PTS: 1 DIF: Easy

7. Why do marketers rely heavily on demographic characteristics when segmenting

PTS: 1 DIF: Easy

8. What variables are used to segment business markets?

PTS: 1 DIF: Easy

9. When evaluating market segments, which three major issues should be

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

14. Discuss the advantages and disadvantages of using executive judgment in

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

ANS: B PTS: 1 DIF: Easy OBJ: 05-01 Learn about

17. Which of the following is not a characteristic of a consumer market?

ANS: D PTS: 1 DIF: Easy OBJ: 05-01 Learn about

18. Which of these statements is not true about business markets?

ANS: B PTS: 1 DIF: Easy OBJ: 05-01 Learn about

ANS: B PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

20. In order to be considered a market, people do not have to have

ANS: C PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

ANS: D PTS: 1 DIF: Easy OBJ: 05-01 Learn about

22. The ability to purchase a product is a function of

ANS: A PTS: 1 DIF: Moderate OBJ: 05-01 Learn about

ANS: E PTS: 1 DIF: Easy OBJ: 05-01 Learn about

ANS: C PTS: 1 DIF: Easy

ANS: B PTS: 1 DIF: Easy

ANS: D PTS: 1 DIF: Easy

27. The first step in the target market selection process is

ANS: C PTS: 1 DIF: Easy

28. To find a target market, a firm can use the

ANS: E PTS: 1 DIF: Easy

ANS: D PTS: 1 DIF: Easy

ANS: D PTS: 1 DIF: Moderate

31. Why would a company use the undifferentiated strategy?

ANS: C PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Difficult

ANS: D PTS: 1 DIF: Moderate

ANS: B PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Easy

ANS: B PTS: 1 DIF: Easy

ANS: C PTS: 1 DIF: Easy

ANS: C PTS: 1 DIF: Easy

ANS: E PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Easy

ANS: A PTS: 1 DIF: Easy

ANS: C PTS: 1 DIF: Easy

43. The purpose of market segmentation is to

ANS: B PTS: 1 DIF: Moderate

ANS: A PTS: 1 DIF: Easy

ANS: B PTS: 1 DIF: Difficult