Chapter 5 تسويق

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 ex-
pert 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 Mer-
cedes 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 ap-
propriate 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 re-
. quired 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 cus-
. tomers 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 strat-
. egy.
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 Pro-
Mark 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 rela-
tively 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 main-
. taining 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 fami-
lies. 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 us-
ing 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 out-
. side that micromarket will respond to the message.
MSC: Knowledge
80. Retail-site location analyses, unique product offerings, and special advertising campaigns are all exam-
ples 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, market-
ers 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 per-
. sonality characteristics they possess.
b use research developed by clinical psychologists to determine which personality charac-
. teristics 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 characteris-
. tics members of their target market are perceived to have.
MSC: Knowledge
85. The psychographic variable that includes numerous characteristics related to people's activities, inter-
ests, and opinion is
a motive.
.
b social class.
.
c personality.
.
d stage in family life cycle.
.
e lifestyle.
.
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.
.
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
.
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 alco-
holic 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 segmen-
tation.
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 con-
trol 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
.
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 cus-
tomers will use it in their production processes. The primary business segmentation variable in this ex-
ample 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 dif-
ferences 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 poten-
tial 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 cus-
tomer 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.
.
e market 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.
.
b market 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.
.
e market 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 indus-
try's market potential and then estimates how his company's potential sales will look based on this out-
look. 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 tar-
get 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.
.
get markets. NAT: AACSB: Communication | 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.
.
get 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.
.
get markets. NAT: AACSB: Analytic | MKTG: 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.
.
b market 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 mar-
keting 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 meth-
ods?
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 pe-
. riod.
d the averaging and other statistical techniques applied to these forecasts result in ex-
. tremely 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 objec-
tive 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 varia-
tions 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 popu-
lation 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 lo-
cations 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 vol-
ume 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 pur-
chase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Origi-
nally 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 mar-
ket?
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 Swe-
den and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by sev-
eral 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 us-
ing?
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 mar-
ket?
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.

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

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 tar-
geting 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 po-
tential.
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.

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.

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 par-
ticular product.

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 ca-
pabilities.

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 pe-
riod.

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 deter-
mine 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 organiza-
tion 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.

get markets. NAT: AACSB: Analytic | MKTG: 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 facili-
ties needed to effectively compete in the selected segments.

get 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.

get markets. NAT: AACSB: Communication | MKTG: Model Strategy
MSC: Knowledge
190. At times, after doing segmentation analysis, marketers in an organization decide not to enter any seg-
ments.

get markets. NAT: AACSB: Communication | MKTG: Model Strategy
MSC: Knowledge
191. A company sales forecast is the amount of a product that a firm actually expects to sell during a spe-
cific 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.

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Easy

PTS: 1 DIF: Easy

8. What variables are used to segment business markets?

PTS: 1 DIF: Easy

PTS: 1 DIF: Easy

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

PTS: 1 DIF: Moderate

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

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

19. Which of the following is not a requirement or characteristic of a market?

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

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

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

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

31. Why would a company use the undifferentiated strategy?

43. The purpose of market segmentation is to

49. A disadvantage of the concentrated targeting strategy is that

53. The primary advantage of a concentrated targeting strategy is

61. Segmentation variables are usually grouped into four categories:

72. Family life cycle is most typically based on

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

109. The buildup approach measure of sales potential

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

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

115. When selecting specific target markets, a firm should

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

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

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

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

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

ANS: F PTS: 1 DIF: Moderate OBJ: 05-01 Learn about markets.

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Easy

153. A company sometimes defines a total market as its target market.

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Easy

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

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Easy

168. Motives can be used to segment markets.

ANS: T PTS: 1 DIF: Moderate

169. Lifestyle is a product-related variable.