Chapter 3: Market Segmentation

Multiple Choice Questions: 1. The more _____ there is in the marketplace, the more _____ is required. a. similarity; segmentation . di!ersity; mass marketing c. di!ersity; segmentation d. production; targeting e. similarity; targeting "c; #nderstanding, Moderate, p. $%& %. The process o' di!iding a market into distinct su sets o' consumers (ith common needs or characteristics is kno(n as _____. a. target marketing . market segmentation c. mass marketing d. the marketing concept e. market e!aluation "c; )act, Moderate, p. $$& 3. The necessary conditions 'or success'ul segmentation o' any market are _____. a. a small, homogeneous population (ith su''icient money to spend . a large population including more than one ethnic group c. a large population minimal e*penda le cash and su''icient di!ersity to lend itsel' to partitioning the market into si+a le segments d. a small population (ith su''icient money to spend co!ering a large geographic area e. a large enough population (ith su''icient money to spend and su''icient di!ersity to lend itsel' to partitioning the market into si+a le segments "e; )act, Moderate, p. $%& $. ,hen marketers pro!ide a range o' product or ser!ice choices to meet di!erse consumer interests, consumers are _____. a. etter satis'ied . less satis'ied c. highly dissatis'ied d. some(hat dissatis'ied e. indi''erent "a; #nderstanding, Moderate, p. $$&

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-. _____ means o''ering the same product and marketing mi* to all consumers. a. Concentrated marketing . .i''erentiated marketing c. Target marketing d. Mass marketing e. Market segmentation "d; )act, /asy, p. $$& 0. 1enry )ord o''ered the Model T automo ile to the pu lic 2in any color they (anted as long as it (as lack.3 This is an e*ample o' _____. a. market segmentation . mass marketing c. target marketing d. the marketing concept e. product positioning " ; 4pplication, Moderate, p. $$& 5. The primary ad!antage o' mass marketing is _____. a. it costs less . it leads to (ider customer satis'action c. it leads to the production o' products that etter meet the needs o' indi!idual segments o' the market d. it is !ie(ed y more people e. it more accurately descri es the product eing promoted "a; #nderstanding, Challenging, p. $$& 6. ,hich o' the 'ollo(ing types o' companies (ould ene'it 'rom using an undi''erentiated marketing strategy7 a. car manu'acturers . producers o' lu*ury goods c. producers o' agricultural products d. (atch manu'acturers e. clothing companies "c; 4pplication, Challenging, p. $$& 8. 4ny marketing strategy is a three step process that includes _____. a. market segmentation, marketing mi* and positioning . market segmentation, targeting and positioning c. market targeting, positioning and repositioning d. price, place and promotion e. market targeting, promotion, positioning " ; )act, Moderate, p. $$&

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19. Segmentation studies are used to _____. a. enhance consumer a(areness 'or a gi!en product or ser!ice . de!elop and promote speciali+ed goods and ser!ices to satis'y each group:s needs c. design and promote a single product that meets the needs o' all consumers in the market d. gain in'ormation a out competitors: products and ser!ices e. generate ideas 'or product impro!ements " ; #nderstanding, Challenging, p. $-& 11. 4nother term 'or psychographic characteristics is ______. a. age . li'estyle c. ene'its sought d. use;situation 'actors e. use;related 'actors " ; )act, /asy, p. $-& 1%. ,hen t(o types o' market segmentation are used, it is called _____. a. com ination segmentation . hy rid segmentation c. dual segmentation d. cross segmentation e. side; y;side segmentation " ; )act, /asy, p. $0& 13. Social class, religion, and 'amily li'e cycle are ases o' (hich o' the 'ollo(ing types o' segmentation7 a. sociocultural segmentation . geographic segmentation c. use;situation segmentation d. demographic segmentation e. psychographic segmentation "a; )act, /asy, p. $0, Ta le 3.1& 1$. 4ge, se*, and education are ases o' (hich o' the 'ollo(ing types o' segmentation7 a. geographic segmentation . sociocultural segmentation c. ene'it segmentation d. demographic segmentation e. psychological segmentation "d; )act, /asy, p. $0, Ta le 3.1&

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1-. ,hich o' the 'ollo(ing is a ase o' use;related segmentation7 a. city si+e . usage rate c. marital status d. social class e. income " ; )act, /asy, p. $5, Ta le 3.1& 10. Con!enience, social acceptance, long lasting, economy and !alue 'or the money are all 'orms o' _____ segmentation. a. demographic . ene'it c. use;related d. psychographic e. psychological " ; )act, Challenging, p. $5, Ta le 3.1& 15. /conomy;minded, couch potatoes, outdoor enthusiasts and status;seekers are all 'orms o' _____ segmentation. a. psychological . psychographic c. sociocultural d. demographic e. use;related " ; #nderstanding, Moderate, p. $0, Ta le 3.1& 16. 4'rican 4mericans, Caucasians, 4sians and 1ispanics are all 'orms o' _____ segmentation. a. demographic . geographic c. psychographic d. sociocultural e. use;situation "d; #nderstanding, Challenging, p. $0, ta le 3.1& 18. The 'act that salsa outsells ketchup in the south(est, and that <i' peanut utter is pre'erred in the Mid(est o!er Skippy, is an e*ample o' (hy _____ segmentation is used. a. demographic . geographic c. psychographic d. sociocultural e. use;related " ; 4pplication, Moderate, p. $5&

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%9. The theory ehind geographic segmentation is that _____. a. people (ho ha!e the same acti!ities, interests, and o =ecti!es (ill purchase the same products . people (ith the same cultural heritage (ill ha!e similar needs and !alues c. people (ho li!e in the same area share some similar needs and (ants that di''er 'rom those o' people li!ing in other areas d. people (ho speak the same language ha!e !ery similar needs and !alues e. all people li!ing in the same country (ill ha!e !ery similar needs and can e est ser!ed y a single ad!ertising campaign "c; #nderstanding, Challenging, p. $5& %1. ,hen a company decides to put its catalog on the >nternet, it is ringing do(n _____ segmentation oundaries. a. demographic . geographic c. sociocultural d. psychographic e. use situation " ; 4pplication, Moderate, p. $5& %%. Camp ell:s Soup has di!ided the domestic market into more than %9 regions, each (ith its o(n sales managers that de!elop speci'ic ad!ertising and promotional campaigns geared to local market needs and conditions. This is an e*ample o' _____. a. micromarketing . mass marketing c. ideal targeting d. counter segmentation e. hyper;segmentation "a; 4pplication, Challenging, p. $6& %3. .emographics help to _____ a target market, (hereas psychological and sociocultural characteristics help to _____. a. descri e the !alues o'; locate it . understand the needs o'; descri e ho( it (ill react to a particular ad!ertising campaign c. generate ne( ad!ertising campaigns 'or; generate ne( packaging 'or products d. identi'y the ene'its o' a product 'or; (hether or not that target market (ill purchase the product e. locate; descri e ho( its mem ers think and 'eel "e; #nderstanding, Challenging, p. $6&

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%$. _____ in'ormation is o'ten the most accessi le and cost;e''ecti!e (ay to identi'y a target market. a. .emographic . Sociocultural c. ?sychological d. ?hysiological e. @ene'it "a; )act, Moderate, p. $6& %-. Trends in the markets, such as shi'ts in age, gender, and income distri ution, are o'ten detected through _____ in'ormation. a. demographic . sociocultural c. psychological d. physiological e. use;related "a; #nderstanding, Challenging, p. $6& %0. _____ are occurrences due to chronological age, (hereas _____ are occurrences due to gro(ing up during a speci'ic time period. a. Cohort e''ects; age e''ects . Cohort e''ects; generational e''ects c. Aenerational e''ects; age e''ects d. 4ge e''ects; cohort e''ects e. Aenerational e''ects; cohort e''ects "d; )act, Moderate, p. $8& %5. _____ stress the in'luence o' the period (hen a person is orn and the shared e*periences (ith others o' the same age. a. 4ge e''ects . Aenerational e''ects c. Cohort e''ects d. Colleague e''ects e. ?eriod e''ects "c; #nderstanding, Moderate, p. -9& %6. The 'act that people gain an interest in leisure tra!el and gol' in their late 'i'ties and early si*ties is an e*ample o' _____. a. age e''ects . cohort e''ects c. seniority e''ects d. retirement necessities e. colleague e''ects "a; 4pplication, Moderate, p. -9&

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%8. Much o' the change in gender roles has occurred mainly ecause o' _____. a. single parent 'amilies . dual;income households c. the integration o' cultures d. the adoption o' digital technologies e. the emergence o' ne( marketing techniques " ; #nderstanding Challenging, p. -1& 39. Traditionally, the _____ has een the 'ocus o' most marketing e''orts. a. mother . 'amily c. indi!idual d. child e. teen " ; )act, /asy, p. -%& 31. _____ is 'elt my many marketers to e a strong indicator o' the a ility to pay 'or a product. a. 4ge . Aender c. Bccupation d. /ducation e. >ncome "e; )act, /asy, p. -%;-3& 3%. ?sychological characteristics re'er to _____. a. a household:s stage in the 'amily li'e cycle . the !alue an indi!idual places on his or her time c. the inner or intrinsic qualities o' the indi!idual consumer d. the marital status o' the indi!idual e. the com ined income o' the household "c; )act, /asy, p. -3& 33. >' consumers are segmented ased on their moti!ations, personality, perceptions, learning and attitudes, then a _____ segmentation approach has een implemented. a. demographic . sociocultural c. psychological d. psychographic e. use;situation "c; #nderstanding, Moderate, p. -3&

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3$. 4 _____ can e thought o' as a composite o' consumers: measured acti!ities, interests, and opinions. a. psychographic pro'ile . psychological pro'ile c. hy rid pro'ile d. demographic pro'ile e. sociocultural pro'ile "a; )act, Moderate, p. -3& 3-. _____ research is a 'orm o' consumer research that has pro!en to e a !alua le marketing tool that helps identi'y promising consumer segments that are likely to e responsi!e to speci'ic marketing messages. a. ?sychological . ?sychographic c. Sociocultural d. @ene'it e. .emographic " ; #nderstanding, Challenging, p. -3& 30. ,hen using psychographic segmentation, 4>Bs are _____, _____ and _____. a. actions; interests; options . acti!ities; interests; opinions c. acti!ities; ideas; opinions d. actions; ideas; options e. actions; interests; o =ecti!es " ; )act, /asy, p. -3& 35. The _____ is a composite !aria le ased e*plicitly on marital and 'amily status ut implicitly re'lects relati!e age, income, and employment status. a. psychographic pro'ile . 'amily li'e cycle c. demographic pro'ile d. psychological pro'ile e. hy rid segment " ; )act, Moderate, p. --& 36. _____ implies a hierarchy in (hich indi!iduals in the same class generally ha!e the same degree o' status, (hereas mem ers o' other classes ha!e either higher or lo(er status. a. #sage rate . Su culture c. )amily li'e cycle d. Social class e. Celigion "d; #nderstanding, /asy, p. -0&

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38. Segmenting on the asis o' cultural heritage can e use'ul ecause mem ers o' the same culture tend to _____. a. share the same !alues, elie's, and customs . speak the same language c. li!e in the same areas d. ha!e similar incomes e. e loyal to the same rands "a; #nderstanding, Moderate, p. -0& $9. #se;related segmentation categori+es consumers in terms o' le!el o' usage, le!el o' a(areness, and _____. a. ene'its sought . degree o' rand loyalty c. rand kno(ledge d. social class e. learning;in!ol!ement " ; )act, Moderate, p. -5& $1. _____ segmentation di''erentiates among hea!y users, medium users, light users, and nonusers o' a speci'ic product, ser!ice or rand. a. @rand a(areness . @rand loyalty c. Cate o' usage d. Sociocultural e. @ene'it "c; )act, /asy, p. -5& $%. Cesearch has sho(n that %- to 3- percent o' eer drinkers account 'or more than 59 percent o' al eer consumed. This is an e*ample o'_____ segmentation. a. ene'it . use;related c. psychographic d. li'estyle e. use;situation " ; 4pplication, Moderate, p. -5& $3. >n relation to rate o' usage, marketers ha!e 'ound that _____. a. rate o' consumption is 'airly e!enly spread across the (hole population . teens tend to e the most relia le market segment c. e!ery consumer consumes roughly the same amount d. a relati!ely small group o' hea!y users accounts 'or a disproportionately large percentage o' product usage e. (omen use a greater !ariety o' products than do men "d; )act, Moderate, p. -5&

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$$. ,hether or not consumers need to e in'ormed a out a product relates to consumers: _____. a. a(areness status . usage situation c. attitude d. usage rate e. learning;in!ol!ement "a; )act, /asy, p. -5;-6& $-. The greeting card industry capitali+es on occasions to sell products; this is a per'ect e*ample o'_____ segmentation. a. li'estyle . ene'it c. usage situation d. demographic e. geographic "c; 4pplication, Challenging, p. 09& $0. @ene'it segmentation can e used to _____. a. target di''erent ad!ertising campaigns to di''erent geographic regions (ithin a city . apply the same marketing mi* to the population as a (hole c. re(ard rand;loyal consumers d. position !arious rands (ithin the same product category e. identi'y the needs;moti!ation o' the consumer "d; #nderstanding, Moderate, p. 01& $5. 4d!ertising 'or 1e'ty Bne Dip @ags emphasi+e 2peace o' mind.3 /clipse gum stresses 2'resh reath.3 They are t(o companies trying to attract customers on the asis o' _____ segmentation. a. use;related . ene'it c. li'estyle d. sociocultural e. psychological " ; 4pplication, Moderate, p. 01;0%&

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$6. The classic case o' success'ul _____ segmentation is the market 'or toothpaste. >' consumers are socially acti!e, they (ant a toothpaste that can deli!er (hite teeth and 'resh reath; i' they smoke, they (ant one that 'ights stains; i' they (ant to pre!ent disease, they (ant one that (ill 'ight germs. a. use;related . li'estyle c. sociocultural d. 'amily li'e cycle e. ene'it "e; 4pplication, Moderate, p. 01;0%& $8. ______ pro'iling has een (idely used in the de!elopment o' ad!ertising campaigns to ans(er the questions, 2,hom should (e target73 2,hat should (e say73 and 2,here should (e say it73 a. psychographic;demographic . geo;demographic c. socio;demographic d. E4FS e. Gankelo!ich "a; #nderstanding, Challenging, p. 0%& -9. Aeodemographic segmentation is ased on the notion that _____. a. people (ho li!e close to one another are likely to ha!e similar 'inancial means, tastes, pre'erences, li'estyles, and consumption ha its . all people ha!e the same 'undamental needs c. some characteristics o' mem ers o' a certain age group are due to their chronological age, (hereas others are due to the shared e*perience o' gro(ing up in the same time period d. people (ho li!e in the same area are likely to kno( one another !ery (ell and recommend products to each other e. people (ho are o' the same ethnic ackground tend to li!e in the same neigh orhoods "a; )act, /asy, p. 0$& -1. The E4FS typology classi'ies the population into segments ased on _____. a. the consumption characteristics o' inner city !ersus su ur an residents . the religious ideals held y di''erent sects c. cultural heritage d. consumer responses to attitudinal and demographic questions e. education, income, and occupation "d; )act, Moderate, p. 00;06&

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-%. To e an e''ecti!e target, a market segment should e: identi'ia le, su''icient, sta le or gro(ing, and _____. a. modern . international c. accessi le d. desira le e. o =ecti!e "c; )act, Moderate, p. 5-& -3. _____ targets se!eral segments using indi!idual marketing mi*es, (hereas _____ targets =ust one segment (ith a unique marketing mi*. a. Concentrated marketing; mass marketing . .i''erentiated marketing; concentrated marketing c. Mass marketing; di''erentiated marketing d. .i''erentiated marketing; mass marketing e. Concentrated marketing; di''erentiated marketing " ; #nderstanding, Moderate, p. 55& -$. .i''erentiated marketing is a highly appropriate segmentation strategy 'or _____. a. inno!ati!e companies in ne( industries (ith 'e( competitors . esta lished companies de!eloping ne( technologies in their industries c. 'inancially strong companies that are undisputed market leaders in their industries d. ne( companies that are trying to reak into the market 'or an e*isting product category 'or (hich there is already a strong market leader e. 'inancially strong companies that are (ell esta lished in a product category and competiti!e (ith other 'irms that are also strong in the category "e; #nderstanding, Challenging, p. 55& --. 4 college that decreases the num er o' courses it o''ers as a result o' under; enrollment in in;depth courses y com ining those in;depth courses into one single course are engaging in _____ a. mass marketing . target marketing c. countersegmentation d. market segmentation e. microsegmentation "e; 4pplication, Challenging, p. 55&

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Multiple Choice Mini Cases: MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum !esearch has shown that the most "re#uent users o" the museum are over $$ years old% have college degrees% and have a household income o" over &'((%((( )ess "re#uent users o" the museum have the same education and income pro"ile as "re#uent users% but tend to be younger% between *$ and $$ Surveys suggest that these younger adults would use the museum more "re#uently% but have do not have enough time due to the demands o" their children and "amilies In order to increase museum entrance revenues% the administrative team wants to attract people who are likely to become heavy users o" the museum when they get older% and try to bring them into the heavy user category at an earlier age In an e""ort to encourage heavy museum use% the museum has begun a membership program that% "or a moderate initial "ee% o""ers discounts on museum entrance and at the gi"t shop% a special restaurant and lounge% and special e+hibit preview events "or members ,he museum has also begun to o""er "ree children-s art and museum appreciation classes on weekend a"ternoons that will allow younger adults to drop their children o"" once a week and then en.oy the museum-s e+hibits and ca"/ -0. >n the M#S/#M M>H> C4S/, di!iding museum attendees into 'requent users, less 'requent users, and non;users is kno(n as _____. a. geographic segmentation . ene'it segmentation c. rate o' usage segmentation d. sociocultural segmentation e. psychographic segmentation "c; 4pplication, Moderate, p. -5& -5. >n the M#S/#M M>H> C4S/, re(arding 'requent users o' the museum through museum mem ership is an e*ample o' a"n& _____. a. micromarketing program . relationship programs c. a(areness dri!e d. countersegmentation strategy e. segmentation study " ; 4pplication, Challenging, p. -8& -6. >n the M#S/#M M>H> C4S/, the most important di''erentiating 'actor et(een 'requent and less 'requent users is _____. a. income . age c. gender d. education e. stage o' 'amily li'e cycle "e; 4pplication, Challenging, p. --&

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-8. >n the M#S/#M M>H> C4S/, the age di''erences et(een 'requent and less 'requent users are most attri uta le to _____. a. age e''ects . geographic e''ects c. demographic e''ects d. cohort e''ects e. colleague e''ects "a; 4pplication, Challenging, p. $8& C!UISE MINI CASE: Sunshine Cruise )ines is a cruise operator that o""ers three0 to seven0day cruises along any o" "ive Caribbean routes It has developed a reputation as a party cruise operator and the ma.ority o" its revenue comes "rom vacationing college students Sunshine would like to scale up its reputation to attract more "amilies and a more mature% more a""luent clientele while continuing to cater to the college crowd In order to do so% Sunshine has begun o""ering cruises speci"ically geared toward "amilies% with babysitting services% day0time programming "or younger children% and a separate games room with pool tables and ping pong to appeal to older children 1aving "ound that a preponderance o" its "amily passengers book through travel agents% Sunshine speci"ically promotes these "amily cruises through travel agencies that will be able to "ully e+plain the bene"its o" a Sunshine cruise to potential buyers Sunshine has also remodeled a number o" its smaller ships to o""er more spacious cabins with more lu+urious "ittings ,hese small 23irst Class Cruises%4 which do not allow children% o""er not only a gourmet che"% but a string #uartet to serenade passengers during their evening meal and a pianist to provide background music during their evening cocktails ,hey are advertised in business and travel maga5ines and have a dedicated website "or travel in"ormation and reservations 09. >n the CC#>S/ M>H> C4S/, Sunshine is trying to _____ itsel' as a cruise carrier 'or young 'amilies and a''luent empty;nesters as (ell as 'or college spring reakers. a. target . segment c. reposition d. microsegment e. countersegment "c; 4pplication, Moderate, p. 0&

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01. >n the CC#>S/ M>H> C4S/, Sunshine o''ers di''erent ser!ices to meet the needs o' di''erent market segments, ad!ertising each (ith a di''erent campaign and strategy. This is kno(n as _____. a. ene'it segmentation . mass marketing c. rate o' usage segmentation d. concentrated marketing e. di''erentiated marketing "e; 4pplication, Moderate, p. 50;55& 0%. >n the CC#>S/ M>H> C4S/, Sunshine has di!ided the potential market into _____ and de!eloped t(o completely ne( cruise options to meet the !acationing needs o' 'amilies and upper;class adults. a. demographic segments . rate o' usage segments c. ene'it segments d. geographic segments e. sociocultural segments "e; 4pplication, Challenging, p. --;-0& 03. >n the CC#>S/ M>H> C4S/, Sunshine speci'ically markets its party cruises to college students in <anuary and )e ruary in anticipation o' spring reak. This is an e*ample o' _____. a. usage situation segmentation . demographic segmentation c. rate o' usage segmentation d. sociocultural segmentation e. ene'it segmentation "a; 4pplication, Challenging, p. 09& !EN,A) CA! MINI CASE: !osetta Car !ental operates car rental lots "rom airports nationwide It speci"ically targets vacationers and advertises in travel maga5ines and through travel websites with a campaign that emphasi5es its #uality customer service and well0maintained cars !osetta stocks its lots based on a number o" "actors% including climate and the type o" activities it e+pects its renters to be undertaking 3or e+ample% it stocks more convertible cars in its warm Cali"ornia lots than it does in New 6ork Its Colorado lots stocks a large number o" station wagons% vans% and SU7s to accommodate skiers and snow0boarders and all their gear

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0$. >n the C/HT4F C4C M>H> C4S/, Cosetta e*ercises _____ (hen it stocks more con!erti le cars in Cali'ornia than in He( Gork. a. demographic segmentation . geographic segmentation c. sociocultural segmentation d. psychographic segmentation e. usage;situation segmentation " ; 4pplication, /asy, p. $5& 0-. >n the C/HT4F C4C M>H> C4S/, Cosetta e*ercises _____ (hen it stocks large num ers o' igger cars in Colorado. a. demographic segmentation . geographic segmentation c. sociocultural segmentation d. psychological segmentation e. usage;situation segmentation "e; 4pplication, Challenging, p. 09& 00. >n the C/HT4F C4C M>H> C4S/, Cosetta 'ocuses on !acation tra!elers, as opposed to usiness tra!elers. .i!iding the market in this (ay is kno(n as _____. a. psychographic segmentation . geographic segmentation c. demographic segmentation d. sociocultural segmentation e. psychological segmentation "a; 4pplication, Challenging, p. -3& 05. >n the C/HT4F C4C M>H> C4S/, y 'ocusing on a single segment "!acationers& o' the market, Cosetta is using a"n& _____. a. di''erentiated marketing strategy . undi''erentiated marketing strategy c. concentrated marketing strategy d. mass marketing strategy e. countersegmentation strategy "c; 4pplication, Challenging, p. 55& True/False Questions: 06. 4 company that employs a mass marketing strategy typically o''ers a !ariety o' speciali+ed products. ")alse; #nderstanding, Moderate, p. $$& 08. Bne ad!antage o' segmented marketing is that it costs less in terms o' ad!ertising campaign costs and production costs o' a standardi+ed product. ")alse; #nderstanding, /asy, p. $$&

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59. >n most cases, consumers readily accept the passed;through cost increases 'or products that more closely satis'y their speci'ic needs. "True; #nderstanding, Challenging, p. $$& 51. Marriott operates 13 lodging rands, such as )air'ield >nn, Cesidence >nn, and Marriott Cesorts. This is an e*ample o' Marriott adopting a mass marketing strategy. ")alse; 4pplication, Moderate, p. $-& 5%. ?ersonality and needs;moti!ation are ases o' psychographic segmentation. ")alse; )act, Challenging, p. $0, Ta le 3.1& 53. Climate is a ase o' geographic segmentation. "True; )act, /asy, p. $0, Ta le 3.1& 5$. @y placing their catalogs on the >nternet, marketers hope to o!ercome psychological oundaries. ")alse; )act, Moderate, p. $5& 5-. Aeographic characteristics are most o'ten used as the asis 'or market segmentation. ")alse; )act, Moderate, p. $6& 50. .emographic !aria les re!eal ongoing trends that signal usiness opportunities, such as shi'ts in age, gender, and income distri ution. "True; #nderstanding, Moderate, p. $6& 55. #nlike cohort e''ects, age e''ects are ongoing and li'elong. ")alse; #nderstanding, Challenging, p. $8;-9& 56. Aender roles ha!e ecome more distinct and are the most e''ecti!e (ay to distinguish consumers in most product categories. ")alse; #nderstanding, /asy, p. -9& 58. The changes in gender roles in today:s society are largely due to the continued impact o' dual;income households. "True; #nderstanding, Challenging, p. -1& 69. 4s a result o' the continued impact o' dual;income households, (omen are not as readily accessi le through traditional media as they once (ere. "True; #nderstanding, Moderate, p. -1& 61. Cesearch has sho(n that men and (omen di''er in terms o' the (ay they look at their >nternet usage. ,hile men are in'ormation hungry, (omen e*pect communications media to entertain and educate. "True; #nderstanding, Challenging, p. -1&

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6%. /ducation, occupation, and income tend to e closely correlated. "True; )act, /asy, p. -3& 63. ?sychographic research is commonly re'erred to as li'estyle analysis. "True; )act, /asy, p. -3& 6$. The appeal o' psychographic research lies in the 'requently !i!id and practical pro'iles o' consumer segments that it can produce. "True; #nderstanding, /asy, p. -3& 6-. The traditional 'amily li'e cycle (ill go through the 'ollo(ing stages: achelorhood, honeymooners, parenthood, post;parenthood and dissolution. "True; )act, Challenging, p. --& 60. Cesearch on su cultural di''erences tends to re!eal that consumers are more responsi!e to promotional messages that they percei!e relate to their o(n ethnicity. "True; )act, Moderate, p. -0& 65. >t is sa'e to assume that i' a product is success'ul locally it (ill e accepted internationally. ")alse; #nderstanding, Challenging, p. -0& 66. Culturally distinct segments can e prospects 'or the same product and are o'ten target most e''iciently (ith the same promotional appeal. ")alse; #nderstanding, Moderate, p. -0& 68. B'ten marketers target consumers (ho are kno(n to e rand s(itchers, in elie' that such people represent greater market potential than consumers (ho are loyal to competing rands. "True; #nderstanding, Challenging, p. -6& 89. Consumer inno!ators tend to e rand loyal. ")alse; )act, Challenging, p. -6;-8& 81. Celationship programs re(ard customers (ho are rand loyal. "True; #nderstanding, /asy, p. -8& 8%. Changing li'estyles play a ma=or role in determining the product ene'its that are important to consumers and pro!ide marketers (ith opportunities 'or ne( products and ser!ices. "True; #nderstanding, Challenging, p. 01& 83. ?sychographic and demographic pro'iles are highly complementary approaches that (ork est (hen used together "True; #nderstanding, Moderate, p. 0%&

01

8$. )or products and ser!ices used y a road cross section o' the pu lic, geodemographic segmentation schemes are most producti!e. ")alse; #nderstanding, Moderate, p. 00& 8-. Gankelo!ich Mind aseI segmentation 'ocuses on institutional in!estors. ")alse; )act, Moderate, p. 51& 80. Most marketers pre'er to target consumer segments that are relati!ely sta le in terms o' demographic and psychological 'actors and needs that are likely to gro( larger o!er time. "True; )act, /asy, p. 50& 85. >n counter segmentation strategy, a company seeks to disco!er a more generic consumer need that (ould apply to the mem ers o' t(o or more segments and recom ine those segments into a larger single segment that can e targeted (ith an indi!idually tailored product or promotional campaign. "True; )act, Moderate, p. 55& Essay Questions: 86. .escri e the ad!antages and disad!antages o' a mass marketing strategy. )or (hat types o' companies does this strategy (ork est7 Mass marketing is a strategy (here y a company o''ers one standardi+ed product and de!elops only one marketing strategy and ad!ertising campaign to sell that product to the entire population. The ad!antage o' mass marketing is that it carries a lo(er cost 'or the company. #n'ortunately, (hen trying to sell the same product to e!ery prospecti!e customer (ith a single ad!ertising campaign, the marketer must portray its product as a means 'or satis'ying a common or generic need and, there'ore, o'ten ends up appealing to no one. He!ertheless, this strategy tends to (ork (ell 'or producers o' generic manu'actured goods, like ru er ands, and 'or producers o' agricultural products like potatoes. "#nderstanding, Moderate, p. 1;%&

0%

88. >denti'y and de'ine the nine ma=or categories o' consumer characteristics that pro!ide the most popular ases 'or market segmentation. Aeographic 'actors: di!ides the market y location. a. .emographic 'actors: di!ides the market y such 'actors as age, gender, marital status, income, occupation, and education. . ?sychological 'actors: di!ides the market y the inner or intrinsic qualities o' the indi!idual consumer. c. ?sychographic 'actors: generates a composite o' consumers: measured acti!ities, interests, and opinions in order to segment the market. d. Sociocultural !aria les: di!ides the market on the asis sociological and anthropological !aria les such as 'amily li'e cycle, social class, core cultural !alues, and su cultural mem erships. e. #se;related characteristics: di!ides consumers in terms o' product, ser!ice, or rand usage characteristics, such as le!el o' usage, le!el o' a(areness, and degree o' rand loyalty. '. #se;situation 'actors: di!ides the market on the asis o' the occasion or situation that determines (hat consumers (ill purchase or consume g. @ene'its sought: identi'ies the most important ene'it o' a product or ser!ice that (ill e most meaning'ul to consumers. h. 1y rid segmentation: com inations o' se!eral segmentation ases to create rich and comprehensi!e pro'iles o' particular consumer segments ")act, /asy, p. $;15& 199. /*plain the di''erence et(een age e''ects and cohort e''ects.

4ge e''ects are occurrences due to chronological age, such as heightened interest in leisure tra!el and gol', that o'ten occurs (hen people reach middle age. Cohort e''ects are occurrences due to gro(ing up during a speci'ic period o' time, such as i' gro(ing up (hile listening to rock and roll means you (ill e a rock and roll 'an regardless o' your age. Bne stresses the impact o' aging (hile the other stresses the in'luence o' the period (hen one (as orn. "#nderstanding, Moderate, p. 6&

03

191.

/*plain ho( gender roles ha!e o!ercome this change in roles7

lurred.

,hat are marketers doing to

,omen are no longer the traditional users o' cosmeticsJmany men are increasingly spending more money on skin care and hair products, and (omen are ecoming an important segment in the repair tools market. The main reason ehind this change in roles is due to the 'act that more (omen are (orking, (hich has created more dual;income household that led to changing and sharing all responsi ilities. Marketers are trying to o!ercome the change in gender roles y changing the (ays they target (omen, such as o''ering maga+ines like ,orking ,oman or ,orking Mother, and y increasing their pressure on (omen to use catalogs, 699 num ers and the >nternet 'or shopping rather than going to the mall. "#nderstanding, Challenging; p. 6;8& 19%. ,hy is )amily Fi'e Cycle an important asis 'or segmentation7

@ecause many 'amilies pass through similar phases in their 'ormation, gro(th and 'inancial dissolution, at each phase the 'amily unit needs di''er. Goung singles going through the achelorhood stage (ill need asic 'urniture 'or their apartments, and a small, ine*pensi!e !ehicle to start them o''. Bnce singles get married and mo!e into the honeymooners stage, their 'ocus ecomes uying a ne( home and 'urnishing it, then (hen they ecome parents, the ma=ority o' their disposa le income (ill e spent on their children:s needs. "#nderstanding Moderate, p. 1%;13& 193. 1o( is rand loyalty used as a asis 'or segmentation7

Marketers try to identi'y the characteristics o' their rand loyal customers so that they can direct their promotional e''orts to people (ith similar characteristics in larger populations. They try to increase their loyalty y o''ering them types o' relationship programs (hich re(ard them 'or eing continuous users o' the product or ser!ice. "4pplication, Moderate; p. 1-;10& 19$. >denti'y and discuss the 'i!e strategic rand ene'its that 'acilitate ene'it segmentation. a. )unctional ene'its "quality& . Ealue 'or money c. Social ene'it d. ?ositi!e emotional ene'its e. Hegati!e emotional ene'its ")act, Challenging, p. 15&

0$

19-.

.escri e the E4FS typology. 1o( does it segment the population7

The E4FS typology classi'ies the population into 6 distincti!e segments ased on consumer responses to attitudinal and demographic questions. The system identi'ies three primary moti!ations: the ideals moti!ated, the achie!ement moti!ated, and the sel'; e*pression moti!ated. /ach o' these three ma=or sel';moti!ations represents distinct attitudes, li'estyles, and decision;making styles. "#nderstanding, Challenging, p. %9& 190. >denti'y and discuss the 'our criteria that make market segments e''ecti!e targets.

To e an e''ecti!e target, a market segment should e: a. identi'ia le. . su''icient, in terms o' si+e. c. sta le or gro(ing. d. accessi le in terms o' oth media and cost. "#nderstanding, Moderate, p. %1& 195. ,hat is countersegmentation7

Counter segmentation occurs (hen companies 'ind that some segments ha!e contracted o!er time to the point that they do not (arrant an indi!idually designed marketing program. >n this case a company (ill seek to disco!er a more generic need that (ould apply to t(o or more segments and recom ine those segments into a larger segment that (ould e targeted (ith one promotional campaign. ")act, Moderate; p. %3&

0-