Quiz Answers and Explanations
Chapter 8: Market Segmentation, Targeting, and Positioning Strategies
1. Dividing the consumer market into domestic users and foreign users is an example of
  1. undifferentiated marketing
    Incorrect.

  2. market segmentation
    Correct. Dividing a larger market into smaller markets that are similar in important ways is an example of market segmentation.

  3. custom marketing
    Incorrect.

  4. benefit segmentation
    Incorrect.

See Page 192 of the text for more information.
2. When Ace Hardware designs an advertising program to attract "all comers" to buying hacksaw blades in its stores, this is an example of
  1. differentiated marketing
    Incorrect.

  2. undifferentiated marketing
    Correct. A marketing effort designed to appeal to a broad range of mass market customers is called an undifferentiated strategy.

  3. concentrated marketing
    Incorrect.

  4. the 80/20 principle
    Incorrect.

See Page 196 of the text for more information.
3. When a manufacturer designs an advertising program to sell its chain saws only to farm and professional segments, it is using what type of strategy?
  1. undifferentiated strategy
    Incorrect.

  2. mass market strategy
    Incorrect.

  3. concentration strategy
    Correct. Selling products to a single target market segment is known as a concentrated marketing strategy.

  4. differentiated strategy
    Incorrect.

See Page 198 of the text for more information.
4. When Marriott Corporation designs its hotel/motel service at many different price ranges (Residence Inns, Fairfield Inns, Marriott Resort Hotels), it is using what type of strategy?
  1. undifferentiated strategy
    Incorrect.

  2. mass market strategy
    Incorrect.

  3. focus strategy
    Incorrect.

  4. differentiated strategy
    Correct. Developing a different marketing mix for each target market segment is known as a differentiated strategy.

See Page 200 of the text for more information.
5. When an organization attempts to develop a different marketing mix for each of its customers, it is using which type of strategy?
  1. custom marketing strategy
    Correct. Customized marketing requires designing a different marketing mix for each customer.

  2. mass marketing strategy
    Incorrect.

  3. differentiated marketing strategy
    Incorrect.

  4. undifferentiated marketing strategy
    Incorrect.

See Page 201 of the text for more information.
6. Another term for customized marketing is
  1. data-based marketing
    Correct. Customized marketing is called both data-based marketing and one-on-one marketing.

  2. undifferentiated marketing
    Incorrect.

  3. differentiated marketing
    Incorrect.

  4. the 80/20 rule
    Incorrect.

See Page 202 of the text for more information.
7. When Hallmark designs kiosks for use in shopping malls so that customers can design personalized greeting cards, this is an example of
  1. mass customization
    Correct. Using computers to mass produce cards for a small market segment is an example of mass customization.

  2. undifferentiated marketing
    Incorrect.

  3. focus marketing
    Incorrect.

  4. concentrated marketing
    Incorrect.

See Page 203 of the text for more information.
8. Gender is one of the examples of which market segmentation variable?
  1. lifestyle/psychographic
    Incorrect.

  2. behavior pattern
    Incorrect.

  3. demographic
    Correct. Personal characteristics, such as gender, age, race, and marital status, are called demographic variables.

  4. consumer predisposition
    Incorrect.

See Page 206 of the text for more information.
9. The Southwestern States in the U.S. represent which type of market segmentation variable?
  1. geographic
    Correct. Defining market segments according to geographical boundaries is using a geographic variable.

  2. consumer patterns
    Incorrect.

  3. demographic
    Incorrect.

  4. socioeconomic
    Incorrect.

See Page 205 of the text for more information.
10. Targeting soft drink users as light, medium, or heavy users depending on their consumption patterns is an example of which segmentation variable?
  1. geographic
    Incorrect.

  2. demographic
    Incorrect.

  3. consumption patterns
    Correct. The frequency with which consumers use a product is part of their consumption patterns.

  4. socioeconomic
    Incorrect.

See Page 206 of the text for more information.
11. Market segmentation requires creating subgroups of consumers which are similar to one another in important buying behavior characteristics.
  1. True
    Correct. The subgroups should be similar in gender, age, or income, depending on the type of product that is being purchased so that different marketing mixes can be designed for each subgroup.

  2. False
    Incorrect.

See Page 192 of the text for more information.
12. When a large group of consumers is subdivided into smaller groups of consumers depending on their demographic variables, we say that the market has been aggregated.
  1. True
    Incorrect.

  2. False
    Correct. Breaking down a large group into smaller groups is disaggregating the larger group.

See Page 193 of the text for more information.
13. Undifferentiated marketing strategies are always unsuccessful.
  1. True
    Incorrect.

  2. False
    Correct. A small retail store in a rural area can successfully try to attract all people who live within a given radius of the store if there is little competition from other retailers.

See Page 196 of the text for more information.
14. The largest market segment that contains the heaviest users of the product should always be pursued by an organization.
  1. True
    Incorrect.

  2. False
    Correct. The largest segment is likely to attract the most competition and it is frequently difficult to be successful when competitors keep lowering their price to try to attract buyers from their competitors.

See Page 198 of the text for more information.
15. When the St. Louis Art Museum tries to attract "all people who live in or visit St. Louis" as its customers, this is an example of differentiated marketing.
  1. True
    Incorrect.

  2. False
    Correct. This is undifferentiated mass marketing, not differentiated marketing.

See Page 196 of the text for more information.
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