Mini-Case 10-1

A group of investors are starting a for-profit college to be called HavenUniversity. They have
identified a small segment of society that is displeased with the high cost of college and is willing to
forego all social and sporting extracurricular activities in order to get an inexpensive, quality education in
four years. The university investors will advertise nationally. Its target audience is individuals between
22 and 40 years of age, who have either not started earning a college degree or who did not finish one
they began in the last ten years. The investors want to attract students who are currently working at a job
with which they are dissatisfied. Haven will only offer three degree programs, which cannot be modified
to individual student needs. Research has shown these are degrees this market segment repeatedly seeks.
Students can earn their degrees over the Internet and only have to attend a one-week seminar on campus
twice a year.

96. Refer to Mini-Case 10-1. These university investors are using _____ marketing to
identify their target market.
A. mass
B. niche
C. local
D. aggregated
E. individual

97. Refer to Mini-Case 10-1. The target market shows a ____ preference pattern.
A. homogeneous
B. stratified
C. heterogeneous
D. diffused
E. clustered

98. Refer to Mini-Case 10-1. To identify their market segment, the investors had to
undertake a three-step segmentation procedure. In the first step of this procedure, the
investors would have:
A. done a factor analysis
B. done exploratory research
C. used cluster analysis
D. profiled the segments
E. created a hierarchy of attributes

99. Refer to Mini-Case 10-1. The investors have identified their market through the use of _____
segmentation variables.
A. behavioral, geographic, and demographic
B. psychographic and behavioral
C. geographic and demographic
D. psychographic, behavioral, and geographic
E. demographic, psychographic, and behavioral

100. Refer to Mini-Case 10-1. The investors discovered there was a segment of the population
who was being passed over for promotions because they lacked a college degree. These
people had always assumed getting a degree was impossible because they did not have
time to attend classes. What kind of segmentation variable would be used to identify this
segment?
A. occasion
B. personality
 C. values
D. benefit
E. lifestyle

101. Refer to Mini-Case 10-1. After the investors identified the target market, they had to
select its market segmentation strategy. Which of the following segmentation strategies
is most appropriate for HavenUniversity?
A. single-segment concentration
B. selective specialization
C. product specialization
D. market specialization
E. full market coverage