MKT 210 Chapter - 8

Name Clas Dat
: s: e:
Chapter 8
1. An advantage of concentrated marketing is the potential for saving on production and marketing by using an
undifferentiated targeting strategy.
a. True
b. Fals
e
ANSWER: False
RATIONALE: In a concentrated targeting strategy, a firm selects a market niche for targeting its
marketing efforts. It uses a highly specialized marketing mix rather than an
undifferentiated targeting strategy. See 8-7: Strategies for Selecting Target
Markets
POINTS: 1
DIFFICULTY Moderate
:
QUESTION T True / False
YPE:
HAS VARIAB False
LES:
LEARNING O MKTG.LAMB.15.08.07
BJECTIVES:
TOPICS: A-head: Strategies for Selecting Target Markets
Bloom's: Understand
BUSPROG: Analytic
Target Markets
DATE CREAT 5/1/2015 4:22 PM
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: ABLVRKXBEXLKDWRUQ334

QUESTION I JFND-GO4G-G3BU-QCJ1
D:
QUESTIO GCID-E7BW-1TBP-8R5D-KCBT-CI1U-OPTW-CAA1-4A5R-GBO1-4CUD-GC4N-
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-8Y4D-YCB3-
L ID: 8BTD-1PMR-8YSU-OPTA-CRSU-YCJI-GOSU-EATS-8YSU-OAJA-CJTS-R3DG-
E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
2. A market is composed of people or organizations who have the ability to buy the products they desire.
a. True
b. Fals
e
ANSWER: True
RATIONALE: A market is composed of people or organizations who have the ability to buy the
products they desire. These people or organizations have needs or wants for
certain products and are willing to buy them. See 8-1: Markets and Market
Segments
POINTS: 1
Cengage Learning Testing, Powered by Cognero Page 1
Name Clas Dat
: s: e:
Chapter 8
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: Markets and Market Segments
Bloom's: Remember
BUSPROG: Analytic
Markets
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: GWMK130KN8KFM2KSA647

QUESTION I JFND-GO4G-G3BU-QCJT
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMD-CO5U-OPTI-
L ID: C3TU-1P31-GOSU-OPJA-CESU-NCT1-GOSU-QCTI-COSS-CCTU-GA3S-C3UN-
3. The final step in market segmentation is designing, implementing, and maintaining appropriate marketing mixes.
a. True
b. Fals
e
ANSWER: True
RATIONALE: The final step in market segmentation is designing, implementing, and maintaining
appropriate marketing mixes. A marketing mix has been described as product,
place, promotion, and pricing strategies intended to bring about a mutually
satisfying exchange relationship with a market. See 8-6: Steps in Segmenting a
Market
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: Steps in Segmenting a Market
Bloom's: Remember
Name Clas Dat
: s: e:
Chapter 8
BUSPROG: Analytic
Marketing Mix
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: GZLDCRRY9SBVBD561393

QUESTION I JFND-GO4G-G3BU-QCJO
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJS-G7OS-RP5B-CO4D-
L ID: Q3TZ-CRSS-C3JA-8YSU-1PMG-GOSU-KA31-8YSS-KQJW-GEAS-C3BI-E7JI-
YT4D-JFNN-4OTI-GO4W-NQNBEE
4. A firm's marketing mix is not influenced by the market segmentation process.
a. True
b. Fals
e
ANSWER: False
RATIONALE: Selecting markets is a natural outcome of the segmentation process, which
influences and often directly determines a firm's marketing mix. See 8-6: Steps in
Segmenting a Market
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Marketing Mix
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: HNJJ1TA0RAZLRRNQV235

QUESTION I JFND-GO4G-G3BU-QCJZ
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-GPUD-YCDB-
Name Clas Dat
: s: e:
Chapter 8
L ID: COAU-YA5G-CESU-R3JA-CRSS-RP3A-GOSS-E3TA-COSU-R3DR-CTTG-
ECBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
5. Promotion is one of the components that form a marketing mix.

a. True
b. Fals
e
ANSWER: True
RATIONALE: The final step in market segmentation is designing, implementing, and maintaining
appropriate marketing mixes. A marketing mix has been described as product,
place, promotion, and pricing strategies intended to bring about a mutually
satisfying exchange relationship with a market. See 8-6: Steps in Segmenting a
Market
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Marketing Mix
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: HXBW1HRXXP61XARXY980

QUESTION I JFND-GO4G-G3BU-QCJS
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMG-CF1G-GC5F-
L ID: 8RHD-1ATA-GHSU-GCMR-CESU-QAJO-GOSU-CCB3-GASS-EQDG-CCAG-
KQJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
6. A market segment is a subgroup of people or organizations having different characteristics that cause them to have
distinct product needs.
a. True
b. Fals
e
ANSWER: False
RATIONALE: A market segment is a subgroup of people or organizations sharing one or more
Name Clas Dat
: s: e:
Chapter 8
characteristics that cause them to have similar product needs. All people have
similar characteristics and needs, as do all organizations. See 8-1: Markets and
Market Segments
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Market Segments
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: KERLZMWLFZ11TBMKC761

QUESTION I JFND-GO4G-G3BU-QCJI
D:
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NCJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
7. A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.
a. True
b. Fals
e
ANSWER: True
RATIONALE: A marketing mix has been described as product, place, promotion, and pricing
strategies intended to bring about a mutually satisfying exchange relationship with
a market. See 8-6: Steps in Segmenting a Market
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Name Clas Dat
: s: e:
Chapter 8

Bloom's: Understand
BUSPROG: Analytic
Marketing Mix
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: TSGDQW4QU9JJ4KQ5Y357

QUESTION I JFND-GO4G-G3BU-QCJW
D:
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L ID: GEAS-RCBT-GYSU-Y3BU-CESU-EPT1-GOSS-GAMR-GYSU-RPBZ-CCHU-
OPTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
8. The purpose of market segmentation is to enable a marketer to tailor marketing mixes to meet the needs of specific
segments.
a. True
b. Fals
e
ANSWER: True
RATIONALE: Market segmentation is the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups. The purpose of market
segmentation is to enable a marketer to tailor marketing mixes to meet the needs of
specific segments. See 8-2: The Importance of Market Segmentation
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: The Importance of Market Segmentation
Bloom's: Remember
BUSPROG: Analytic
Market Segmentation
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: UMYG2PZJNZV0PX3QK508

Name Clas Dat
: s: e:
Chapter 8
QUESTION I JFND-GO4G-G3BU-QP1N
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMF-GT1D-CPDF-
L ID: CJOS-GCJO-CESS-KPDG-8RSU-YA3A-GOSS-KA5R-CCSS-K3UD-GJTD-N3J3-
9. Product differentiation is a positioning strategy that involves changing consumers' perceptions of a brand in relation to
competing brands.
a. True
b. Fals
e
ANSWER: True
RATIONALE: Product differentiation is a positioning strategy that some firms use to distinguish
their products from those of competitors. The distinctions between products can be
either real or perceived. See 8-9: Positioning
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: Positioning
Bloom's: Remember
BUSPROG: Analytic
Product Differentiation
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: XTUASJS9BB4ZNT9CB777

QUESTION I JFND-GO4G-G3BU-QP1B
D:
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L ID: CCMN-GASS-C3DG-CESS-K3DN-GOSU-K3BW-GWSU-OATO-GWAG-NAUB-
10. Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new
product.
a. True
b. Fals
Name Clas Dat
: s: e:
Chapter 8
e
ANSWER: False
RATIONALE: A situation that occurs when sales of a new product cut into sales of a firm's
existing products is known as cannibalization. This is a potential cost of
multisegment targeting. See 8-7: Strategies for Selecting Target Markets
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Target Markets
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: YVZYDHAJNZS2XFTMZ532

QUESTION I JFND-GO4G-G3BU-QPT3
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJZ-GEAD-NPMG-
L ID: GAAG-CCJU-GHSU-1PUR-CRSS-KAUB-GOSU-YAMD-CASU-NAJO-8Y4U-
EA5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
11. Which of the following is true of satisficers?

a. They are customers that are generally found in the consumer market.
b. They consider numerous suppliers and study all proposals carefully before selecting
one.
c. They place orders with the first supplier that fulfills their requirements.
d. They contact both familiar and unfamiliar suppliers when they need to purchase a
product.
ANSWER: c
RATIONALE: Satisficers are business customers who contact familiar suppliers and place orders
with the first one to satisfy product and delivery requirements. See 8-5: Bases for
Segmenting Business Markets
POINTS: 1
DIFFICULTY Moderate
:

Name Clas Dat
: s: e:
Chapter 8
QUESTION T Multiple Choice

YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: Bases for Segmenting Business Markets
Bloom's: Understand
BUSPROG: Analytic
Business Market Segmentation
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: EWQRNGH14UWSXW73D537

QUESTION I JFND-GO4G-G3BU-QPTA
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-CE4G-K3TT-
L ID: CFTU-1ATA-CCSU-YP5D-CRSS-NCDB-GOSU-OCDB-GCSS-NA5F-CC5D-
G3UN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
12. Which of the following best describes a multisegment targeting strategy?

a. It is the effort to ensure that sales of a new product do not cut into sales of an existing
product.
b It refers to choosing to serve two or more well-defined market segments and
. developing a distinct marketing mix for each.
c. It refers to selecting one segment of a market for targeting marketing efforts and
understanding the needs of the members in that segment.
d It is the division of a market by the amount of product bought or consumed.
.
ANSWER: b
RATIONALE: Multisegment targeting strategy refers to choosing to serve two or more well-
defined market segments and developing a distinct marketing mix for each.
Multisegment targeting offers many potential benefits to firms, including greater
sales volume, higher profits, and larger market share. See 8-7: Strategies for
Selecting Target Markets
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
Name Clas Dat
: s: e:
Chapter 8
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Multisegment Targeting Strategy
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: FTEDU04YZEKT87KJC165

QUESTION I JFND-GO4G-G3BU-QP1G
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMD-CR4D-OA31-
L ID: GHAS-KAJU-GYSS-C3BW-8RSU-R3TT-GOSU-CCDF-GOSU-EPUR-GJ1U-
K3BU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
13. Wesley Electronics Inc. manufactures electronic gadgets such as cell phones, computers, and laptops. To let people
know about the products offered, the marketing managers of Wesley Electronics Inc. spend a great deal of money on
advertising. They employed various methods of advertising such as print, television, and online advertising. Given this
information, Wesley Electronics Inc. is in which step of market segmentation?
a. Selecting a market category for study
b. Designing and implementing marketing mixes
c. Profiling and analyzing market segments
d. Selecting the segmentation descriptors for a market
ANSWER: b
RATIONALE: By advertising its products, Wesley Electronics Inc. is placing emphasis on
promotion. At this stage the company is most likely designing and implementing a
marketing mix. A marketing mix has been described as product, place, promotion,
and pricing strategies intended to bring about a mutually satisfying exchange
relationship with a market. See 8-6: Steps in Segmenting a Market
POINTS: 1
DIFFICULTY Challenging
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
BUSPROG: Reflective Thinking
Marketing Mix
Name Clas Dat
: s: e:
Chapter 8
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: FTMPKAX152L6XMFY6782

QUESTION I JFND-GO4G-G3BU-QP1F
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMN-CE3D-RATT-
L ID: GEHD-YAMN-GOSU-QCUN-8RSU-NP3I-GOSU-QQJO-GWSU-GCJU-8Y5S-
KAUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
14. The purpose of market segmentation is to:

a. change consumer attitudes and beliefs toward a product.
b. divide a market into submarkets of equal size that have equal number of customers in
each.
c. group a large number of markets together, enabling a company to serve them
simultaneously.
d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific
segments.
ANSWER: d
RATIONALE: The purpose of market segmentation is to enable a marketer to tailor marketing
mixes to meet the needs of one or more specific segments. Market segmentation is
the process of dividing a market into meaningful, relatively similar, and
identifiable segments or groups. See 8-1: The Importance of Market Segmentation
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Market Segmentation
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: KVQJR4AT57QNRZZRP476

QUESTION I JFND-GO4G-G3BU-QP1R
D:
Name Clas Dat
: s: e:
Chapter 8
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJI-CW3G-GPJ1-GCAU-
L ID: GPMB-GWSU-KP5N-CESU-CAUB-GOSS-EQBZ-GHSU-EP3Z-GAHG-GC3O-
15. Volten Inc. is an online apparel store. It has separate sections for casual wear, office wear, and party wear. It also
divides its products on the basis of price to suit people of various income levels. In this way, it caters to different sections
of society. Which of the following bases has the company most likely used for positioning its products?
a. Product class
b. Emotion
c. Attribute
d. Product user
ANSWER: d
RATIONALE: Volten Inc. has based its position on product user. This positioning base focuses
on a personality or type of user. See 8-9: Positioning
POINTS: 1
DIFFICULTY: Challenging
QUESTION TY Multiple Choice
PE:
HAS VARIABLE False
S:
LEARNING OB MKTG.LAMB.15.08.09
JECTIVES:
Bloom's: Apply
Positioning Strategies
DATE CREATE 5/1/2015 4:22 PM
D:
DATE MODIFI 6/6/2015 2:30 AM
ED:
CUSTOM ID: CGI: KZUXLCDRCBESQD8EH646
QUESTION ID: JFND-GO4G-G3BU-QP1D
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJ1-GA5S-EATS-CITG-
L ID: C3UB-GYSU-Q3DG-CESU-Y3JW-GOSU-K3MD-GOSU-13UF-CT1U-RCBO-
16. Which of the following is a disadvantage associated with an undifferentiated targeting strategy?

a. It requires a firm to tailor marketing mixes to the preferences of market
segments.
b. It often results in product offerings that are unimaginative and sterile.
c. It involves a high risk of cannibalization of products.
d. It is expensive because of high production and marketing costs.
ANSWER: b
Name Clas Dat
: s: e:
Chapter 8
RATIONALE: A disadvantage of an undifferentiated targeting strategy is that products emerge by

default rather than design, resulting in often sterile, unimaginative product
offerings that have little appeal to anyone. In an undifferentiated targeting strategy,
a firm adopts a mass-market philosophy, viewing the market as one big market
with no individual segments. See 8-7: Strategies for Selecting Target Markets
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Undifferentiated Targeting Strategy
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: MNSPW466MNQ9BBP5D979

QUESTION I JFND-GO4G-G3BU-QPTU
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJZ-GJ1U-1PJU-GOHU-
L ID: OA3Z-CWSS-E3UR-CRSS-EP3T-GOSU-1ATA-GHSU-KAJS-CEAS-NAUB-E7JI-
17. Wine Tasters Inc. is a magazine that targets people who appreciate wine and good food. Its major customer base
include people who enjoy wine-tasting events and visit different restaurants. Given this information, Wine Tasters most
likely relies on which of the following variables to identify its target market?
a. Usage-rate segmentation
b. Demographic segmentation
c. Psychographic segmentation
d. Benefit segmentation
ANSWER: c
RATIONALE: Wine Tasters relies on psychographic segmentation to identify its target market.
Psychographic segmentation is market segmentation on the basis of variables such
as personality, motives, lifestyles, and geodemographics. See 8-4: Bases for
Segmenting Consumer Markets
POINTS: 1
:
Name Clas Dat
: s: e:
Chapter 8

YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: Bases for Segmenting Consumer Markets
Bloom's: Apply
Market Segmentation Variables
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: NKWHCM41C4N56B7L7491

QUESTION I JFND-GO4G-G3BU-QPT1
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJW-CJ1G-ECMG-
L ID: GA5U-1CBU-GWSU-KAJZ-8RSU-1CB3-GOSU-1C5R-CESU-QQJZ-CE5U-
C3MD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
18. In a concentrated targeting strategy, a firm:

a. selects one segment of a market for targeting its marketing
efforts.
b. adopts a mass-market philosophy for targeting a market.
c. views the market as one big market with no individual segments.
d. chooses to serve two or more well-defined market segments.
ANSWER: a
RATIONALE: In a concentrated targeting strategy, a firm selects a market niche—one segment of
a market—for targeting its marketing efforts. Because the firm is appealing to a
single segment, it concentrates on developing and maintaining a highly specialized
marketing mix. See 8-7: Strategies for Selecting Target Markets
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
Name Clas Dat
: s: e:
Chapter 8
Concentrated Targeting Strategy

ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: RZQLLV6LN5VRSBB3F390

QUESTION I JFND-GO4G-G3BU-QPTT
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJO-GCAD-GPBO-
L ID: GT1S-EQJ1-8RSU-NPTO-8YSU-1AJ1-GOSU-K3MN-CRSS-CAMR-GW5S-
KPBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
19. Apart from long-term company profits, the major aim of customer relationship management (CRM) is to:
a. implement concentrated targeting strategies.
b. optimize customer satisfaction.
c. reduce personalization of products according to customers'
needs.
d. minimize the use of database technology.
ANSWER: b
RATIONALE: Customer relationship management (CRM) entails tracking interactions with
customers to optimize customer satisfaction and long-term company profits.
Companies that successfully implement CRM tend to customize the goods and
services offered to their customers based on data generated through interactions
between customers and a company. See 8-8: CRM as a Targeting Tool
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
TOPICS: A-head: CRM as a Targeting Tool
Bloom's: Understand
BUSPROG: Analytic
Customer Satisfaction
ED:
DATE MODI 6/6/2015 2:30 AM
FIED:
CUSTOM ID: CGI: SUHDKJNRTTX84EFHD453


Name Clas Dat
: s: e:
Chapter 8
QUESTION I JFND-GO4G-G3BU-QPTO
D:
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L ID: GT1U-NQDD-8YSS-N3TA-8YSU-K3J3-GOSU-KA3Z-GHSU-OP31-CE5D-1PB3-
20. Which of the following is true of a concentrated targeting strategy?

a. It allows a firm to serve two or more well-defined market segments simultaneously.
b. It is often adopted by small firms to compete effectively with much larger firms.
c. It follows a mass-market philosophy by viewing the market as one big market without
any individual segments.
d. It often results in cannibalization, which occurs when sales of a new product cuts into
sales of an existing product.
ANSWER: b
RATIONALE: Small firms often adopt a concentrated targeting strategy to compete effectively
with much larger firms. In a concentrated targeting strategy, a firm selects a
market niche—one segment of a market—for targeting its marketing efforts. See
8-7: Strategies for Selecting Target Markets
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Concentrated Targeting Strategy
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: TJRCZ5051DE8AGAH3674

QUESTION I JFND-GO4G-G3BU-QPTZ
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJI-8B1U-RA3W-CC4D-
L ID: C3TZ-CRSU-YAMG-CRSU-RA3S-GOSU-NQBS-CASU-R3J1-CT1G-NQBW-
21. Why do marketers who spend significant time promoting mass-marketing efforts need to be aware of customer
Name Clas Dat
: s: e:
Chapter 8
relationship management (CRM)?
a. One-size-fits-all marketing is no longer relevant because consumers want to be treated
as the individuals they are.
b The time that consumers spend on making purchase decisions have risen in recent
. times.
c. Mass-media approaches to marketing will rise in importance as technology allows
marketers to collect detailed information.
d The importance of rewarding individual consumers for their loyalty has declined in the
. recent years.
ANSWER: a
RATIONALE: One-size-fits-all marketing is no longer relevant because consumers want to be
treated as the individuals they are, and customer relationship management (CRM)
can fulfill this desire. See 8-8: CRM as a Targeting Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Analyze
BUSPROG: Analytic
Customer Relationship Management
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: TMMHE8AL3TACCH0MD357

QUESTION I JFND-GO4G-G3BU-QPTS
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMN-GC3G-RPUB-
L ID: CO5D-QA3U-COSU-Y3UG-8RSU-K3MR-GOSU-C3J3-GHSU-CCTU-CW5S-
CQJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
22. Which of the following is a similarity between a stock market and a labor market?
a. Both adopt a barter system to enable the exchange of products.
b. Both have people who are unwilling to spend a large sum of money for products or
services.
c. Both have people with the necessary resources to buy desired products or services.
d. Both deal with high-end, expensive products.

Name Clas Dat
: s: e:
Chapter 8
ANSWER: c
RATIONALE: All types of markets, such as stock markets and labor markets, share several
characteristics. One of the characteristics is that people in both a stock market and
a labor market have the necessary resources, usually money or credit, to buy the
products they seek. See 8-1: Markets and Market Segments
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Analyze
BUSPROG: Analytic
Markets
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: TUEB7T2CBAES5RTCZ326

QUESTION I JFND-GO4G-G3BU-QPTI
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJA-GTUD-G3TW-
L ID: C3OU-OATT-CCSU-QQBO-CESS-N3TI-GOSU-RPBO-CESU-KQJS-GI1U-
RCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
23. A multisegment targeting strategy differs from a concentrated targeting strategy in that it:
a. selects one segment of a market with a goal to satisfy its
members.
b. faces a high potential cost from cannibalization of products.
c. develops and maintains a common marketing mix for its products.
d. results in sterile, unimaginative product offerings.
ANSWER: b
RATIONALE: A firm that chooses to serve two or more well-defined market segments and
develops a distinct marketing mix for each has a multisegment targeting strategy.
A disadvantage of multisegment targeting is cannibalization. In a concentrated
targeting strategy, a firm selects a market niche—one segment of a market—for
targeting its marketing efforts. See 8-7: Strategies for Selecting Target Markets
POINTS: 1
:
Name Clas Dat
: s: e:
Chapter 8

YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Analyze
BUSPROG: Analytic
Target Markets
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: TZRK8BC5UZ4NENW5S255

QUESTION I JFND-GO4G-G3BU-QPTW
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJO-GA3U-CCMR-
L ID: GJTU-KQJO-CASU-OPT3-CRSU-RQDN-GOSU-QPUB-GOSS-NQJ1-8BTS-
NQDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
24. Kirksand Hotels is renowned for its service and individual treatment of its customers. All service staff and employees
are encouraged to listen carefully to customers' wants and needs. For instance, if a traveler ordered soft pillows, wanted
only martinis in his mini bar, and needed access to a fax machine, he would find all of these amenities in his room when
he arrived. In this scenario, on which of the following trends has Kirksand Hotels based its customer relationship
management (CRM)?
a. Personalization
b. Time savings
c. Loyalty
d. Technology
ANSWER: a
RATIONALE: Kirksand Hotels has based its customer relationship management (CRM) on the
trend of personalization. Consumers want to be treated as the individuals they are,
with their own unique sets of needs and wants. By its personalized nature, CRM
can fulfill this desire. See 8-8: CRM as a Targeting Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Name Clas Dat
: s: e:
Chapter 8

Bloom's: Apply
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: XPNQ5DWJG2LGKAZ71147

QUESTION I JFND-GO4G-G3BU-QP4N
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJZ-CW4G-KPB1-8Y5D-
L ID: Q3T3-GYSU-NATA-8YSS-C3DG-GOSU-1PUF-CESU-EC3W-GIUD-1PJZ-E7JI-
25. Brasco Motor Company produces a wide range of vehicles such as passenger cars, commercial trucks, specialty
vehicles, performance vehicles, and race cars. Each type of car has a separate and distinct customer base. Given this
information, Brasco Motor Company has divided its customer base by using the strategy of__________.
ANSWER: market segmentation
RATIONALE: Brasco Motor Company has used market segmentation to divide its market into
different subgroups. Market segmentation is the process of dividing a market into
meaningful, relatively similar, and identifiable segments or groups. See 8-2: The
Importance of Market Segmentation
POINTS: 1
:
QUESTION T Completion
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Market Segmentation
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: AWZULNQD7WS06TA9R871

QUESTION I JFND-GO4G-G3BU-QP4B
D:
Name Clas Dat
: s: e:
Chapter 8
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJS-GEHD-NP31-CA3U-
L ID: KCMR-GESS-CCDB-8YSU-OPJW-GOSS-KAMG-GYSS-CCTT-GE5G-KC5N-
26. __________is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or
groups of products in customers' minds.
ANSWER: Perceptual mapping
RATIONALE: Perceptual mapping is a means of displaying or graphing, in two or more
dimensions, the location of products, brands, or groups of products in customers'
minds. See 8-9: Positioning
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: DGTFKR3G24J8YR5J1777

QUESTION I JFND-GO4G-G3BU-QP33
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJU-GO5D-G3TZ-
L ID: GHAG-N3JT-GHSU-NAJ3-CESU-QCUN-GOSU-EAUB-GHSU-YPT3-GCAG-
KCJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
27. Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core
customers on the basis of demographic variables such as income, ethnic background, and family life cycle. These
divisions are known as__________.
ANSWER: market segments
RATIONALE: Nalpas Inc. divides its customers into different market segments. A subgroup of
people or organizations sharing one or more characteristics that cause them to have
similar product needs is called a market segment. See 8-1: Markets and Market
Segments
POINTS: 1

Name Clas Dat
: s: e:
Chapter 8
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Market Segments
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: JWHY8SZ19AS2NAGBB893

QUESTION I JFND-GO4G-G3BU-QP3A
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJ3-G71G-E3DR-CO5S-
L ID: KQBI-GRSU-Y3TT-CRSU-EAJO-GOSU-YCJ3-GHSS-EQJI-GYAD-CQBU-E7JI-
28. Sheera Jewelry sends birthday greeting cards to each of its customers as a token of appreciation for shopping at its
store. This exemplifies the customer relationship management (CRM) trend of__________.
ANSWER: loyalty
RATIONALE: This exemplifies the customer relationship management (CRM) trend of loyalty.
CRM techniques focus on finding a firm's best customers, rewarding them for their
loyalty, and thanking them for their business. See 8-8: CRM as a Targeting Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Customer Loyalty
ED:
Name Clas Dat
: s: e:
Chapter 8
DATE MODI 6/6/2015 2:31 AM

FIED:
CUSTOM ID: CGI: KUZFRUX5UHA0XB521247

QUESTION I JFND-GO4G-G3BU-QP4G
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJ3-G3UD-ECTZ-GY5D-
L ID: YCBT-GESS-RC3A-8RSU-ECJT-GOSU-Y3MN-GASU-YC5F-GCAG-GPJT-E7JI-
29. Tennot Designs Inc. manufactures and sells clothes and shoes to people who are over 6'6" tall — a rather small target
market. Given this information, Tennot Designs Inc. uses a(n)__________targeting strategy.
ANSWER: concentrated
RATIONALE: Tennot Designs Inc. uses a concentrated targeting strategy as it appeals to a small
target market. In a concentrated targeting strategy, a firm selects a market niche—
one segment of a market—for targeting its marketing efforts. See 8-7: Strategies
for Selecting Target Markets
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Target Markets
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: MDCS0YESZRX1Z5XGY892

QUESTION I JFND-GO4G-G3BU-QP4F
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMG-G7UD-G3JS-
L ID: CWAD-OCJ1-GRSU-NQJZ-8RSS-GC3U-GOSU-OQJ3-COSU-K3T1-GR4D-
OQBT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
30. __________are business customers who consider numerous suppliers, solicit bids, and study all proposals carefully
before selecting one.

Name Clas Dat
: s: e:
Chapter 8
ANSWER: Optimizers
RATIONALE: Optimizers are business customers who consider numerous suppliers, solicit bids,
and study all proposals carefully before selecting one. See 8-5: Bases for
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: RFPMGPHE1CZQDQ6H3456

QUESTION I JFND-GO4G-G3BU-QP4R
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJS-C3TS-GCTU-GO4D-
L ID: RAJA-GCSS-CCDN-CESU-NCJZ-GOSS-G3MR-CWSU-1ATU-GAHU-O3TI-E7JI-
31. __________segmentation refers to segmenting markets by region of a country or the world, market size, market
density, or climate.
ANSWER: Geographic
RATIONALE: Geographic segmentation refers to segmenting markets by region of a country or
the world, market size, market density, or climate. Marketers use segmentation
bases, or variables, which are characteristics of individuals, groups, or
organizations, to divide a total market into segments. See 8-4: Bases for
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
Name Clas Dat
: s: e:
Chapter 8
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: TFXDZNWYDPLZL2JSV197

QUESTION I JFND-GO4G-G3BU-QP4D
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMF-CCAD-EQB1-
L ID: CJOU-O3BA-8YSU-R3BI-8YSS-EQMD-GOSU-GPUR-CWSS-NQB3-GBOU-
EQBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
32. The customer relationship management (CRM) technique that focuses on thanking customers for their business to a
company exemplifies the trend of__________.
ANSWER: loyalty
RATIONALE: The customer relationship management (CRM) technique of loyalty focuses on
finding a firm's best customers, rewarding them for their loyalty, and thanking
them for their business. Consumers will be loyal only to those companies and
brands that have earned their loyalty and reinforced it at every purchase occasion.
See 8-8: CRM as a Targeting Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Customer Loyalty
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: VUGF47BMA9SE26KD2200

QUESTION I JFND-GO4G-G3BU-QP3U
Name Clas Dat
: s: e:
Chapter 8
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJW-GA4U-YPUF-
L ID: GBTG-EAJU-CESU-QQJ3-8RSU-CAJO-GOSU-RPUD-CWSS-CQDG-GJ1S-
RCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
33. When Prisly Inc. introduced a liquid detergent in the market, it noticed that the sales of its detergent powder
significantly declined. Prisly Inc.'s loyal customers who previously purchased detergent powder switched to liquid
detergent. As a result, Prisly Inc. was forced to reduce production of its detergent powder. This scenario
exemplifies__________.
ANSWER: cannibalization
RATIONALE: The sales of Prisly Inc.'s detergent powder significantly declined after the
introduction of liquid detergent in the market. This exemplifies
cannibalization. Cannibalization occurs when sales of a new product cut
into sales of a firm's existing products. See 8-7: Strategies for Selecting
Target Markets
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
Bloom's: Apply
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: VYYDSTX8FX3V5153X285

QUESTION I JFND-GO4G-G3BU-QP31
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMD-GFUD-KC3S-
L ID: GF1S-ECUB-CASU-EAUF-8YSU-QAMD-GOSU-EQBA-GESS-RC5N-GA5S-
RPMD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
34. Candy's Chocolates Inc. is a confectionary company that manufactures only one product. Unlike its competitors, the
firm does not have its target customer base as children. Instead, it promotes its product using the same strategy across
consumers of all age groups. Given this information, Candy's Chocolates Inc. has adopted a(n)__________strategy.
ANSWER: undifferentiated targeting
RATIONALE: Candy's Chocolates Inc. has adopted an undifferentiated targeting strategy since it
has not divided its market into specific segments. In an undifferentiated targeting
strategy, a firm adopts a mass-market philosophy, viewing the market as one big
Name Clas Dat
: s: e:
Chapter 8
market with no individual segments. See 8-7: Strategies for Selecting Target
Markets
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: WUEJTJRBF99J8CSZJ494

QUESTION I JFND-GO4G-G3BU-QP3T
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMN-CEAD-NPJI-
L ID: GF1D-G3DF-GYSU-K3DD-CRSU-QPMN-GOSU-Y3MR-CRSU-GCTA-GC4D-
QCMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
35. Online Web sites that greet their users by name and offer information that users are interested in portray the customer
relationship management (CRM) trend of__________.
ANSWER: technology
RATIONALE: New technology offers marketers a more cost-effective way to reach customers
and enables businesses to personalize their messages. For example,
My.Yahoo.com greets each user by name and offers information in which the user
has expressed interest. See 8-8: CRM as a Targeting Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
Name Clas Dat
: s: e:
Chapter 8
BUSPROG: Analytic
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: YVCLNJVRA768VPS7H745

QUESTION I JFND-GO4G-G3BU-QP3O
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJI-GAAU-ECBS-
L ID: GEHU-GC5N-GWSU-YCDF-8RSU-EQBW-GOSS-E3TW-GESS-E3UF-GR4D-
KPTO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
36. How is market segmentation useful to marketers?

ANSWER: Market segmentation is the process of dividing a market into meaningful,
relatively similar, and identifiable segments or groups. Market segmentation plays
a key role in the marketing strategy of almost all successful organizations and is a
powerful marketing tool for several reasons. Most important, nearly all markets
include groups of people or organizations with different product needs and
preferences. Market segmentation helps marketers define customer needs and
wants more precisely. Because market segments differ in size and potential,
segmentation helps decision makers to more accurately define marketing
objectives and better allocate resources. In turn, performance can be better
evaluated when objectives are more precise.
POINTS: 1
DIFFICULTY Moderate
:
QUESTION T Essay
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Market Segmentation
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: KQHAFBYLYNSZPDMZ3268

QUESTION I JFND-GO4G-G3BU-QP3Z
D:
Name Clas Dat
: s: e:
Chapter 8
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJA-8FTU-C3T1-CITD-
L ID: YC5G-CCSU-NCBO-8YSU-QCMF-GOSU-KAMB-GWSS-KCMN-GRAD-KA31-
37. Write a note on the final step of the market segmentation process.

ANSWER: The final step in market segmentation is to design, implement, and maintain
appropriate marketing mixes. The marketing mix has been described as product,
place (distribution), promotion, and pricing strategies intended to bring about a
mutually satisfying exchange relationship with a market. Markets are dynamic, so
it is important that companies proactively monitor their segmentation strategies
over time.
POINTS: 1
DIFFICULTY Moderate
:
QUESTION T Essay
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Marketing Mix
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: LLGE5174GC3MW7GV0418

QUESTION I JFND-GO4G-G3BU-QP3S
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-GO4S-N3MD-
L ID: GRAU-1QMG-GOSS-GQMB-8YSU-Q3JU-GOSU-QPBT-GHSU-Y3UN-GPUD-
K3TU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
38. How do organizations use a product differentiation strategy to distinguish their products from competitors?
ANSWER: The positioning strategy that many firms use to distinguish their products from
competitors is based on product differentiation. The distinctions between products
can be real or perceived. For example, Kentucky Fried Chicken differentiates itself
from other fast-food fried chicken restaurants with its secret blend of eleven herbs
and spices (perceived), as well as unique offerings like the Double Down, Famous
Bowl, and Bucked & Bites Meal (real). However, many everyday products, such
as bleaches, aspirin, unleaded regular gasoline, and some soaps, are differentiated
by such trivial means as brand names, packaging, color, smell, or “secret"
Name Clas Dat
: s: e:
Chapter 8
additives. The marketer attempts to convince consumers that a particular brand is

distinctive and that they should demand it.
POINTS: 1
:
QUESTION T Essay
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Analyze
BUSPROG: Analytic
Product Differentiation
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: SWSH6S7M5BPEXGCRP368

QUESTION I JFND-GO4G-G3BU-QP3I
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMF-8RHG-EPJT-
L ID: GO4U-NP5F-GOSU-NAJZ-CESU-G3JZ-GOSS-RPB1-GHSU-KPJ1-CR5D-EA5R-
39. How do marketers use customer relationship management (CRM) as a targeting tool?

ANSWER: Customer relationship management (CRM) entails tracking interactions with
customers to optimize customer satisfaction and long-term company profits.
Companies that successfully implement CRM tend to customize the goods and
services offered to their customers based on data generated through interactions
between carefully defined groups of customers and the company. CRM can also
allow marketers to target customers with extremely relevant advertisements. A
detailed and segmented understanding of customers can be advantageous. There
are at least four trends that will lead to the continuing growth of CRM:
personalization, time savings, loyalty, and technology.
POINTS: 1
DIFFICULTY Moderate
:
QUESTION T Essay
YPE:
HAS VARIAB False
LES:
Name Clas Dat
: s: e:
Chapter 8
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: CGI: WNLU90MG1VN4DX4VA139

QUESTION I JFND-GO4G-G3BU-QP3W
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMF-GCHD-RCDN-
L ID: GRHU-C3UN-GWSS-K3MB-8RSU-Q3UD-GOSU-GQDR-CWSS-CQMN-GA5G-
RQMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
40. Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core
customers on the basis of demographic variables such as income, ethnic background, and family life cycle. These
divisions are known as _____.
a. positioning bases
b. market segments
c. perceptual maps
d. market positions
ANSWER: b
RATIONALE: Nalpas Inc. divides its customers into different market segments. A subgroup of
people or organizations sharing one or more characteristics that cause them to have
similar product needs is called a market segment. See 8-1: Markets and Market
Segments
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Market Segments
DATE CREAT 5/25/2015 11:47 PM
ED:
DATE MODI 6/6/2015 2:31 AM
Name Clas Dat
: s: e:
Chapter 8
FIED:
CUSTOM ID: JWHY8SZ19AS2NAGBB893

QUESTION I JFND-GO4G-GR3W-EO3U
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-C3TG-KQMF-
L ID: CO3S-EPJA-GOSU-1C3U-8YSU-RQJT-GOSS-KQB3-GCSU-KCBS-GEHD-1P3Z-
41. Brasco Motor Company produces a wide range of vehicles such as passenger cars, commercial trucks, specialty
vehicles, performance vehicles, and race cars. Each type of car has a separate and distinct customer base. Given this
information, Brasco Motor Company has divided its customer base by using the strategy of _____.
a. perceptual mapping
b. positioning
c. cannibalization
d. market segmentation
ANSWER: d
RATIONALE: Brasco Motor Company has used market segmentation to divide its market into
different subgroups. Market segmentation is the process of dividing a market into
meaningful, relatively similar, and identifiable segments or groups. See 8-2: The
Importance of Market Segmentation
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Market Segmentation
DATE CREAT 5/25/2015 11:54 PM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: AWZULNQD7WS06TA9R871

QUESTION I JFND-GO4G-GR3W-ETNF
D:
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L ID: GE4G-CP3W-8YSU-GAMG-CRSU-RP3U-GOSS-K3B3-GCSU-GCDB-GH3U-
Name Clas Dat
: s: e:
Chapter 8
EPTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
42. _____ segmentation refers to segmenting markets by region of a country or the world, market size, market density, or
climate.
a. Geographic
b. Benefit
c.
Demographi
c
d. Usage-rate
ANSWER: a
RATIONALE: Geographic segmentation refers to segmenting markets by region of a country or
the world, market size, market density, or climate. Marketers use segmentation
bases, or variables, which are characteristics of individuals, groups, or
organizations, to divide a total market into segments. See 8-4: Bases for
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
DATE CREAT 5/25/2015 11:58 PM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: TFXDZNWYDPLZL2JSV197

QUESTION I JFND-GO4G-GR3W-EC1N
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMN-GOAD-K3B1-
L ID: CC4D-QCMG-GYSU-RAJW-CRSU-NCUF-GOSU-KCTI-GHSU-E3TU-GE3G-
KAT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
43. _____ are business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before
selecting one.
a. Laggards
b. Innovators
Name Clas Dat
: s: e:
Chapter 8
c. Optimizers
d. Satisficers
ANSWER: c
RATIONALE: Optimizers are business customers who consider numerous suppliers, solicit bids,
and study all proposals carefully before selecting one. See 8-5: Bases for
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
DATE CREAT 5/26/2015 12:01 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: RFPMGPHE1CZQDQ6H3456

QUESTION I JFND-GO4G-GR3W-EC1D
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJW-COHU-KCB1-
L ID: GR5G-G3TA-CESU-NQBA-CRSU-RPUF-GOSU-1C5D-CCSS-KCBI-8FOU-
OQB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
44. Candy’s Chocolates Inc. is a confectionary company that manufactures only one product. Unlike its competitors, the
firm does not have its target customer base as children. Instead, it promotes its product using the same strategy across
consumers of all age groups. Given this information, Candy’s Chocolates Inc. has adopted a(n) _____ strategy.
a. multisegment targeting
b. niche targeting
c. undifferentiated targeting
d. concentrated targeting
ANSWER: c
RATIONALE: Candy’s Chocolates Inc. has adopted an undifferentiated targeting strategy since it
has not divided its market into specific segments. In an undifferentiated targeting
strategy, a firm adopts a mass-market philosophy, viewing the market as one big
market with no individual segments. See 8-7: Strategies for Selecting Target
Markets

Name Clas Dat
: s: e:
Chapter 8
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
DATE CREAT 5/26/2015 12:05 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: WUEJTJRBF99J8CSZJ494

QUESTION I JFND-GO4G-GR3W-ECTW
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMR-G3TG-GAJO-
L ID: 8Y4S-KP5D-GWSS-RC3T-CRSU-EPMD-GOSS-EC3T-GCSS-G3UD-GHHG-
GAJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
45. Tennot Designs Inc. manufactures and sells clothes and shoes to people who are over 6’6” tall — a rather small target
market. Given this information, Tennot Designs Inc. uses a(n) _____ targeting strategy.
a. multisegment
b. undifferentiated
c. concentrated
d. one-to-one
ANSWER: c
RATIONALE: Tennot Designs Inc. uses a concentrated targeting strategy as it appeals to a small
target market. In a concentrated targeting strategy, a firm selects a market niche—
one segment of a market—for targeting its marketing efforts. See 8-7: Strategies
for Selecting Target Markets
POINTS: 1
:
YPE:
HAS VARIAB False
LES:

Name Clas Dat
: s: e:
Chapter 8
BJECTIVES:
Bloom's: Apply
Target Markets
DATE CREAT 5/26/2015 12:08 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: MDCS0YESZRX1Z5XGY892

QUESTION I JFND-GO4G-GR3W-EC4D
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJT-C31G-RPMF-
L ID: GHAD-OP3S-8YSS-CQBS-8YSU-NC3U-GOSU-GCBT-GYSU-CQBW-CW3G-
RPB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
46. When Prisly Inc. introduced a liquid detergent in the market, it noticed that the sales of its detergent powder
significantly declined. Prisly Inc.’s loyal customers who previously purchased detergent powder switched to liquid
detergent. As a result, Prisly Inc. was forced to reduce production of its detergent powder. This scenario exemplifies
_____.
a. segmentation
b. diversification
c. differentiation
d.
cannibalizatio
n
ANSWER: d
RATIONALE: The sales of Prisly Inc.’s detergent powder significantly declined after the
introduction of liquid detergent in the market. This exemplifies cannibalization.
Cannibalization occurs when sales of a new product cut into sales of a firm’s
existing products. See 8-7: Strategies for Selecting Target Markets
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Name Clas Dat
: s: e:
Chapter 8
DATE CREAT 5/26/2015 12:11 AM

ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: VYYDSTX8FX3V5153X285

QUESTION I JFND-GO4G-GR3W-EC3I
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJZ-CRAS-CA3U-
L ID: GA5G-GATU-CASS-NCMN-CESU-YA33-GOSS-KP31-GOSU-C3DN-8BTD-
NQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
47. Sheera Jewelry sends birthday greeting cards to each of its customers as a token of appreciation for shopping at its
store. This exemplifies the customer relationship management (CRM) trend of _____.
a. loyalty
b. technology
c. time savings
d.
personalizatio
n
ANSWER: a
RATIONALE: This exemplifies the customer relationship management (CRM) trend of loyalty.
CRM techniques focus on finding a firm’s best customers, rewarding them for
their loyalty, and thanking them for their business. See 8-8: CRM as a Targeting
Tool
POINTS: 1
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Apply
Customer Loyalty
DATE CREAT 5/26/2015 12:13 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: KUZFRUX5UHA0XB521247

QUESTION I JFND-GO4G-GR3W-ECB1
Name Clas Dat
: s: e:
Chapter 8
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMN-CTOS-RPMF-
L ID: CE4S-GQMD-GOSU-R3DN-CRSS-KCMB-GOSS-NC3W-GESU-1AUR-CAHD-
E3MG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
48. The customer relationship management (CRM) technique that focuses on thanking customers for their business to a
company exemplifies the trend of _____.
a. time savings
b.
personalizatio
n
c. technology
d. loyalty
ANSWER: d
RATIONALE: The customer relationship management (CRM) technique of loyalty focuses on
finding a firm’s best customers, rewarding them for their loyalty, and thanking
them for their business. Consumers will be loyal only to those companies and
brands that have earned their loyalty and reinforced it at every purchase occasion.
See 8-8: CRM as a Targeting Tool
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
Customer Loyalty
DATE CREAT 5/26/2015 12:18 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: VUGF47BMA9SE26KD2200

QUESTION I JFND-GO4G-GR3W-ECJU
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJ1-8R4U-QQJU-
L ID: CWHU-N3TW-GRSS-EPBT-CRSS-GQB3-GOSS-EPBW-GOSU-OAJS-CIOU-
CCTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

Name Clas Dat
: s: e:
Chapter 8
49. Online Web sites that greet their users by name and offer information that users are interested in portray the customer
relationship management (CRM) trend of _____.
a. gratitude
b. time savings
c. loyalty
d. technology
ANSWER: d
RATIONALE: New technology offers marketers a more cost-effective way to reach customers
and enables businesses to personalize their messages. For example,
My.Yahoo.com greets each user by name and offers information in which the user
has expressed interest. See 8-8: CRM as a Targeting Tool
POINTS: 1
DIFFICULTY Moderate
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Understand
BUSPROG: Analytic
DATE CREAT 5/26/2015 12:21 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: YVCLNJVRA768VPS7H745

QUESTION I JFND-GO4G-GR3W-EP1B
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMMB-GHHD-Y3BT-
L ID: GA3D-1QMF-GRSS-GCJI-CESU-1CBO-GOSU-EA3W-CCSU-QP5R-CWHU-
ECUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
50. _____ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of
products in customers’ minds.
a. Market segmentation
b. Product positioning
c. Perceptual mapping
d. Product tracing
ANSWER: c
RATIONALE: Perceptual mapping is a means of displaying or graphing, in two or more
Name Clas Dat
: s: e:
Chapter 8
dimensions, the location of products, brands, or groups of products in customers’

minds. See 8-9: Positioning
POINTS: 1
DIFFICULTY Easy
:
YPE:
HAS VARIAB False
LES:
BJECTIVES:
Bloom's: Remember
BUSPROG: Analytic
DATE CREAT 5/26/2015 12:25 AM
ED:
DATE MODI 6/6/2015 2:31 AM
FIED:
CUSTOM ID: DGTFKR3G24J8YR5J1777

QUESTION I JFND-GO4G-GR3W-EPTZ
D:
N GLOBA 4P5F-GY5N-4CJT-GPTU-EATO-G7DI-GWN8-EPRW-EMJT-CRAU-GCDF-
L ID: CO3D-YA5F-CRSU-1CBW-CRSU-NQBO-GOSU-CQB1-CCSS-N3BO-G7TD-
YP5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

MKT 210 Chapter - 8

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Name Clas Dat

5. Promotion is one of the components that form a marketing mix.

TOPICS: A-head: Steps in Segmenting a Market

11. Which of the following is true of satisficers?

Cengage Learning Testing, Powered by Cognero Page 8

QUESTION T Multiple Choice

12. Which of the following best describes a multisegment targeting strategy?

14. The purpose of market segmentation is to:

16. Which of the following is a disadvantage associated with an undifferentiated targeting strategy?

RATIONALE: A disadvantage of an undifferentiated targeting strategy is that products emerge by

QUESTION T Multiple Choice

18. In a concentrated targeting strategy, a firm:

Concentrated Targeting Strategy

Cengage Learning Testing, Powered by Cognero Page 15

20. Which of the following is true of a concentrated targeting strategy?

Cengage Learning Testing, Powered by Cognero Page 17

QUESTION T Multiple Choice

TOPICS: A-head: CRM as a Targeting Tool

Cengage Learning Testing, Powered by Cognero Page 21

DATE MODI 6/6/2015 2:31 AM

Cengage Learning Testing, Powered by Cognero Page 23

36. How is market segmentation useful to marketers?

37. Write a note on the final step of the market segmentation process.

additives. The marketer attempts to convince consumers that a particular brand is

39. How do marketers use customer relationship management (CRM) as a targeting tool?

Cengage Learning Testing, Powered by Cognero Page 34

Cengage Learning Testing, Powered by Cognero Page 35

DATE CREAT 5/26/2015 12:11 AM

Cengage Learning Testing, Powered by Cognero Page 38

dimensions, the location of products, brands, or groups of products in customers’

Cengage Learning Testing, Powered by Cognero Page 40

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