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Chapter 07

Segmenting, Targeting, and Finding Your Market Position

Multiple Choice Questions

1. The process of dividing a larger market into smaller groups based on meaningfully shared
characteristics is referred to as

A. mass marketing.

B. market segmentation.

C. positioning.

D. concept testing.

E. market fragmentation.

2. It has been Shelly's dream to open a bakery, and while she has experience in making all types
of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather
than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a
specialty cupcake shop to cater to that market only. This is an example of

A. mass marketing.

B. market fragmentation.

C. repositioning.

D. market segmentation.

E. limited marketing.

7-1
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3. A defined in your text, market segmentation involves dividing a larger market into smaller
market segments based on

A. meaningfully shared characteristics.

B. shopping habits.

C. potential interest in a product.

D. geographic region.

E. available sales force.

4. Market segmentation refers to

A. having regional sales forces that can market a product according to geographic area.

B. taking an overall marketing plan and dividing it into smaller campaigns based on each
product.

C. dividing a larger market into smaller groups based on meaningfully shared characteristics.

D. redesigning or repositioning a product so it meets the needs of a target market.

E. marketing a product so that each and every consumer can get value from it.

5. Market segmentation produces relatively homogenous groups of consumers called

A. consumer segments.

B. consumer targets.

C. market sectors.

D. consumer clusters.

E. market segments.

7-2
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6. Market segments are

A. the various types of advertising and promotional campaigns used to sway consumer
interest in a product.

B. relatively homogenous groups of consumers that result from the segmentation process.

C. the different geographical areas in which a product must be marketed differently.

D. the two buying groups: those that have never purchased a firm's product, and those that
are potential repeat customers.

E. relatively heterogeneous groups of consumers that result from the segmentation process.

7. Read the following statements to select the choice that is NOT true of market segmentation.

A. Market segmentation helps firms define the needs and wants of the customers who are
most interested in buying the firm's products.

B. Market segmentation helps firms design specific marketing strategies for the
characteristics of specific segments.

C. Market segmentation identifies which products will be profitable and which ones are not
worth pursuing.

D. Market segmentation helps firms decide how to allocate their marketing resources in a
way that maximizes profit.

E. Market segmentation results in identifying the relatively homogenous groups of consumers


that a firm can market its product to.

7-3
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8. Which of the following is NOT one of the broad segmentation bases outlined in your text that
can be used to segment a market?

A. demographic

B. demand

C. geographic

D. psychographic

E. behavioral

9. What are the two most commonly used demographic variables used by marketers?

A. age and income

B. gender and income

C. education and family size

D. age and gender

E. family size and age

10. Demographic segmentation divides markets by

A. geographic location.

B. characteristics such as age, gender, and income.

C. characteristics such as loyalty and price sensitivity.

D. consumer attitudes.

E. psychological traits.

7-4
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11. One of the most important sources of demographic information for marketers, which of the
following provides free information on data such as how households are segmented by race,
education, age, and occupation?

A. ACNielsen Company

B. Consumer Reports

C. the Social Security Administration

D. the U.S. Census Bureau

E. the U.S. Bureau of Labor Statistics

12. Clif Bar & Company, makers of energy and nutrition bars, expanded their product line to
include Clif Kid Z Bars. These bars are specifically designed to provide the right kind of
nutrition for growing children. For this product, Clif Bar & Company is segmenting the market
based on

A. lifestyle.

B. customer convenience.

C. motivation.

D. gender.

E. age.

13. Marketers particularly target older Americans because

A. they tend to have more time and money than other consumers.

B. they tend to pay more attention to advertisements than other consumers.

C. they tend to be more educated than other consumers.

D. there are more products available to that age group.

E. they purchase products not only for themselves, but also for their family members.

7-5
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14. Which of the following is a demographic segmentation variable?

A. lifestyle

B. motivation

C. gender

D. market size

E. population shifts

15. Quentin is a realtor selling high-end homes priced over $750,000. Before showing a property
to prospective clients, Quentin makes sure they are pre-qualified for a home loan
commensurate with the price of the house. This pre-qualification is based mainly on the
client's income, which is what type of segmentation variable?

A. demographic

B. psychographic

C. behavioral

D. financial

E. geographic

16. American households that have between $100,000 and $250,000 in investable assets are one
of the fastest growing segments in the United States and are referred to as

A. ultra-rich.

B. the well-to-dos.

C. the massively wealthy.

D. ultra-prosperous.

E. mass affluent.

7-6
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17. Contractors that advertise the ability to turn home attics or the space above a garage into
living areas are most likely targeting their market based on the demographic variable of

A. income.

B. gender.

C. family size.

D. usage rate.

E. neighborhoods.

18. Segmentation based on where prospective consumers live, work, and spend their leisure time
is referred to as

A. regional segmentation.

B. demographic segmentation.

C. residential segmentation.

D. geographic segmentation.

E. proximity segmentation.

19. Free-standing areas with a core urban population of at least 50,000 are what the U.S. Census
Bureau calls

A. metropolitan statistical areas.

B. urban numerical areas.

C. major cities.

D. metropolitan districts.

E. urban statistical areas.

7-7
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20. The fact that you see a Starbucks on practically every corner would indicate that Starbucks is
most likely geographically segmenting based on

A. market size.

B. customer convenience.

C. population shifts.

D. income.

E. lifestyle.

21. According to the 2010 U.S. Census, which is the only southern state that lost seats in the
House of Representatives due to population shifts out of the state?

A. Texas

B. Arizona

C. Florida

D. South Carolina

E. Louisiana

22. Psychographic segmentation refers to the science of segmenting markets based on

A. consumers' opinions and interests.

B. psychology and demographics.

C. behavior and demographics.

D. consumers' income and behavior.

E. psychology and geography.

7-8
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23. When marketers segment based on psychographics, the market is divided into groups
according to

A. a consumer's income and interest in the product.

B. how consumers act toward products.

C. how convenient the product is for the consumer.

D. the reason why the consumer made the purchase.

E. family size and marital status.

24. A psychographic segmentation variable that divides people into groups based on their opinion
and the interests and activities they pursue is called

A. behavioral segmentation.

B. socioeconomic segmentation.

C. psychological segmentation.

D. social segmentation.

E. lifestyle segmentation.

25. Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most likely
use what type of segmentation strategy?

A. psychographic segmentation

B. socioeconomic segmentation

C. demographic segmentation

D. geographic segmentation

E. behavioral segmentation

7-9
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26. The VALS framework classifies adults into eight psychographic groups: Innovators, Thinkers,
Believers, Achievers, Strivers, Experiencers, Makers, and

A. Creators.

B. Survivors.

C. Seekers.

D. Fighters.

E. Skeptics.

27. According to the VALS framework, why different consumer groups exhibit different behaviors
or why different consumer groups exhibit the same behaviors for different reasons is based
on

A. opinion and interests.

B. lifestyle and income.

C. motivation and resources.

D. opinion and resources.

E. motivation and desire.

28. Behavioral segmentation divides consumers according to

A. consumers' opinion and interests.

B. how consumers behave with or act towards products.

C. customer convenience and market size.

D. the various lifestyles of the consumer.

E. how motivated and how many resources a consumer has.

7-10
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29. Which of the following is a behavioral segmentation variable?

A. population shifts

B. customer convenience

C. family size

D. usage rate

E. lifestyle

30. The 80/20 rule is a theory that suggests that

A. 80 percent of a firm's profits is generated from 20 percent of its product line.

B. 80 percent of a firm's products are marketed to only 20 percent of the population.

C. 20 percent of the total demand for products comes from 80 percent of the target market.

D. 20 percent of a firm's products are never marketed to 80 percent of consumers.

E. 20 percent of heavy users account for 80 percent of the total demand.

31. According to your text, the segmentation base that is often the most difficult to use is

A. behavioral segmentation.

B. geographic segmentation.

C. lifestyle segmentation.

D. psychographic segmentation.

E. demographic segmentation.

7-11
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32. Business-to-business firms generally segment their markets according to what three
variables?

A. market size, customer convenience, and usage rate

B. demographic, geographic, and psychographic

C. demographic, geographic, and behavioral

D. price sensitivity, usage rate, and region

E. profit potential, price sensitivity, and demand

33. What type of business-to-business segmentation allows B2B marketers to segment based on
purchasing patterns, supplier requirements, and technological orientation?

A. behavioral

B. geographic

C. demographic

D. lifestyle

E. psychographic

34. Read the following statements to select which one is accurate regarding the use of social
media in market segmentation.

A. Social media is not very helpful in segmenting markets, but it can be a useful tool for
marketers once the market has already been segmented.

B. By segmenting the market by those who are active on social media, companies can
connect with a larger and more diverse consumer base.

C. Social media is most helpful in reaching out to older Americans and senior citizens.

D. As of yet, social media has not been proven to be an effective tool for segmenting markets.

E. As compared to traditional segmenting techniques, it is easier to know exactly how to


engage consumers on social networking sites.

7-12
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35. Which of the following is NOT characteristic of gathering the information needed to engage in
international market segmentation?

A. Obtaining the information required to segment international markets is both costly and
difficult.

B. The information needed to segment international markets may be hard to come by.

C. Not all countries collect or classify their data in the same way.

D. Social media sites and the Internet have made it possible to collect all the information
needed to segment international markets.

E. It is practically impossible to compare the data received across nations in order to form a
segment.

36. Firms typically segment international markets using three general bases: global, regional,
and

A. national.

B. cultural.

C. political.

D. economic.

E. unique.

37. As it pertains to international segmentation, global segmentation refers to identifying

A. products that can be marketed in the same way across the globe.

B. similar patterns in cultures that can be used to segment a market.

C. a group of consumers with common needs and wants that spans the entire globe.

D. products that will have a global appeal.

E. markets that will be favorable for exporting products internationally.

7-13
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38. Which international segmentation base usually results in market segments made up of young
people, those that have more money to spend, or those with access to the Internet?

A. global

B. cultural

C. national

D. regional

E. unique

39. As it pertains to international segmentation, unique segmentation is used when

A. a firm can identify a group of consumers with common needs and wants that spans the
entire globe.

B. the similarity in needs and wants only extends across the region or several countries.

C. the similarity in needs and wants exists within one country.

D. a product offering has market appeal in several countries.

E. a product offering has market appeal only in English-speaking regions.

40. To be effective, segmentation should create market segments that rate favorably on various
criteria. Which of the following is NOT one of the criteria outlined in your text?

A. substantial

B. variable

C. measurable

D. accessible

E. actionable

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41. Which market segment criteria refers to the fact that segments must be large enough for the
firm to make a profit by serving them?

A. substantial

B. differentiable

C. measurable

D. accessible

E. actionable

42. When it comes to criteria for segmenting markets, it is important that the size and purchasing
power of a market segment should be clearly identified. In other words, it should be

A. identifiable.

B. differentiable.

C. measurable.

D. accessible.

E. actionable.

43. An auto insurance company segmented its market by both gender and age, and designed
different marketing campaigns to appeal to both. In the end, both segments responded the
same to the different marketing strategies, in part, because both segments are required to
have auto insurance. This firm failed to understand the criteria of market segments needing
to be

A. substantial.

B. differentiable.

C. measurable.

D. accessible.

E. actionable.

7-15
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44. What does the criteria accessible mean regarding market segments?

A. Segments must be large enough for the firm to make a profit by serving them.

B. The size and purchasing power of the segment should be clearly identified.

C. Marketers should develop strategies that can attract a market to its products.

D. Markets should be clearly identified with appropriate strategies developed for each.

E. Marketers must be able to reach and serve the segment.

45. When a firm is reasonably certain that its marketing mix can inform consumers about the
product, how it adds value to the consumer, and ultimately how to purchase it, then the firm
rates favorably on which market segment criteria?

A. substantial

B. differentiable

C. actionable

D. accessible

E. measurable

46. When a company evaluates each market segment to determine which segment or segments
present the most attractive opportunity to maximize sales, it is engaged in

A. positioning.

B. targeting.

C. segmenting.

D. situation analysis.

E. repositioning.

7-16
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47. Carson has opened up a new sports bar/restaurant in town. He has determined that his
market segments are (1) students from the nearby college campus, (2) families with small
children, and (3) young adult males. Carson now has to determine which of these segments
will provide him with the best opportunity to maximize sales. The process of doing this is
referred to as

A. targeting.

B. positioning.

C. segmenting.

D. marketing.

E. repositioning.

48. The group of customers toward which an organization has decided to direct its marketing
efforts is called its

A. marketing segment.

B. primary segment.

C. primary market.

D. target market.

E. target sector.

7-17
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49. After Carson opened up his new sports bar/restaurant, he determined that students from the
nearby college campus will provide him with the best opportunity to maximize sales, so he is
concentrating his marketing efforts on this group which will be his

A. marketing segment.

B. primary segment.

C. primary market.

D. target market.

E. target sector.

50. According to your text, when selecting a target market, firms should consider three important
factors: growth potential, level of competition, and

A. proximity to the market.

B. strategic fit.

C. profitability timeframe.

D. cultural factors.

E. economic conditions.

7-18
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51. What can be said of the level of competition when selecting a target market?

A. The more intense the competition within a segment, the more attractive it is to marketers.

B. The more competitors there are within a segment, the less of a chance there is for price
wars.

C. The more competitors there are within a segment, the less a company will have to spend
to reach out to consumers.

D. A market segment is less attractive to marketers if there are only a few competitors for
that segment.

E. The more competitors there are, the more a firm will have to invest in promotion to
increase market share.

52. What factor of the targeting process is at work when a marketer ensures that the target
market is appropriate for what the organization is and wants to be as defined in its mission
statement?

A. growth potential

B. strategic fit

C. cultural awareness

D. organizational fit

E. segment harmony

7-19
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53. According to your text, what tool provides an excellent framework to determine if a firm will
be successful targeting a specific segment?

A. a SWOT analysis

B. Maslow's hierarchy of needs

C. a perceptual map

D. a positioning map

E. a segmentation analysis

54. Which of the following represents the three basic strategies for targeting markets?

A. primary targeting, secondary targeting, and specialized marketing

B. targeting by product, targeting by price, and targeting by customer

C. demographic targeting, geographic targeting, and psychographic targeting

D. undifferentiated targeting, differentiated targeting, and niche marketing

E. print advertising, sales promotion, and public relations

55. Undifferentiated targeting is a strategy that

A. approaches the marketplace as one large segment.

B. simultaneously pursues several different market segments with a different strategy for
each.

C. involves pursuing a large share of a small market.

D. uses a different marketing strategy for each segment.

E. markets the same product to multiple regions.

7-20
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56. The potential savings in developing and marketing the product is the major advantage of

A. a differentiated targeting strategy.

B. a geographic targeting strategy.

C. a niche marketing strategy.

D. a specialized marketing strategy.

E. an undifferentiated targeting strategy.

57. What type of targeting strategy works with uniform products for which the firm can develop a
single marketing mix that satisfies the needs of all customers?

A. an undifferentiated targeting strategy

B. a geographic targeting strategy

C. a niche marketing strategy

D. a concentrated marketing strategy

E. a differentiated targeting strategy

58. Firms that market the same product to multiple regions with different preferences may need
to tweak the product to ensure that it meets a need unique to each segment. This represents
what type of targeting strategy?

A. an undifferentiated targeting strategy

B. a geographic targeting strategy

C. a niche marketing strategy

D. a differentiated marketing strategy

E. a concentrated targeting strategy

7-21
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59. Rico's firm manufactures homemade salsa. His product is sold around the country, but he
adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those
customers prefer the extra heat and spice. Rico also markets the product differently based on
the region of the country where it is sold. This represents what type of targeting strategy?

A. niche

B. differentiated

C. undifferentiated

D. geographic

E. concentrated

60. A firm marketing its product in the United States and abroad may have to tweak the product
for its international customers and as such may have to market it differently. What type of
targeting strategy would work best for this situation?

A. differentiated

B. niche

C. undifferentiated

D. geographic

E. concentrated

61. A targeting strategy that involves pursuing a large share of a small market segment is
referred to as

A. differentiated targeting.

B. niche marketing.

C. undifferentiated targeting.

D. geographic targeting.

E. lifestyle marketing.

7-22
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62. College Prep Tutors is a business that tutors high-school students who are preparing to take
the ACT test as part of their college entrance requirements. Because it possesses a unique
offering that is desirable to a specific market, College Prep Tutors would most likely use what
type of target market strategy?

A. differentiated targeting

B. lifestyle marketing

C. undifferentiated targeting

D. mass marketing

E. niche marketing

63. Read the following and select which one best represents a growing ethical concern in
targeting certain market segments.

A. Miller Brewing Company targeting its beer product line to sporting fans

B. Abercrombie and Fitch targeting tweens with sexualized clothing

C. Lane Bryant targeting clothing for plus-sized women

D. Sears giving discounts to military, fire, and police personnel

E. Skype.com targeting older Americans as a way to connect with their grandchildren

64. The activities a firm undertakes to create a certain perception of its product in the eyes of the
target market is referred to as

A. segmenting.

B. targeting.

C. conceptualizing.

D. positioning.

E. categorizing.

7-23
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65. According to your text, positioning assumes that consumers

A. will always want to pay the lowest price possible for a product.

B. are followers and will only buy products that appeal to their friends as well.

C. will compare goods and services on the basis of benefits.

D. are innovators and will always want the latest and most innovative products.

E. will make up their own minds about a product, regardless of how it is marketed.

66. The first step marketers should take when deciding how best to position their product is to

A. clearly define its competitive advantage.

B. analyze competitors' positions.

C. evaluate consumer feedback.

D. define the product attributes that make it unique.

E. determine what market segments will be interested in the product.

67. Regarding positioning a product, when is competitive analysis most important?

A. when competitors all appear to offer a similar good or service

B. when a product is unique compared to what other firms are offering

C. when selecting a target market for a product

D. when determining how to segment the market

E. when competitors all appear to offer lower priced options

7-24
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68. The competitive analysis tool that creates a visual picture of where products are located in
consumers' minds is called a

A. positioning map.

B. perceptual map.

C. conceptual map.

D. marketing map.

E. competitive map.

69. An advantage to using a perceptual map is that it

A. it is the quickest way to determine market segments.

B. shows how other companies are marketing their products.

C. can highlight potential market positions that might be underserved.

D. shows which products of a firm are most profitable.

E. shows the firms strengths, weaknesses, opportunities and threats.

70. The second step in deciding how best to position a product is to

A. analyze competitors' positions.

B. evaluate consumer feedback.

C. assess the product's profit potential.

D. conduct test marketing on the product.

E. clearly define the product's competitive advantage.

7-25
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71. Both Sam's Club and Costco have positioned themselves as providing a variety of items to
shoppers at prices lower than retail stores. These stores have positioned themselves based
on

A. application.

B. attributes.

C. product knowledge.

D. price/quality relationship.

E. personalized sales support.

72. When highlighting a product's competitive advantage based on attributes, a firm will

A. show how its product is priced lower than the competition.

B. show how its product use can be advantageous to the customer.

C. concentrate on the unique aspects of the product that sets it apart from the competition.

D. develop a relationship with the target market that will enhance the product's brand.

E. remind customers the value of the product received in comparison to its price.

73. According to your text, what step in deciding how to position a product should be done on a
continual basis since consumer tastes change for almost every product?

A. evaluate feedback

B. analyze competitors positions

C. review the perceptual map

D. define the product's competitive advantage

E. undergo market segmentation

7-26
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74. A succinct description of the core target market to which a product is directed and a
compelling picture of how the firm wants that core market to view the product is called a

A. mission statement.

B. marketing plan.

C. positioning statement.

D. vision statement.

E. business plan.

75. Today's health conscious society has caused cereal manufacturers to rethink their products.
Now many cereals such as Frosted Flakes are being marketed as being healthier because
they are made with whole grains and have less sugar. This is an example of

A. repositioning.

B. remarketing.

C. remanufacturing.

D. resegmenting.

E. retargeting.

Fill in the Blank Questions

76. Dividing a larger market into smaller groups based on meaningful shared characteristics is a
process referred to as ________.

________________________________________

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77. _______ are the relatively homogenous groups of consumers that result from the
segmentation process.

________________________________________

78. Market segmentation helps firms in three ways: by helping to define the needs and wants of
the customers most interested in buying the firm's products, by helping to design the specific
marketing strategies for the specific segments, and by _______.

________________________________________

79. When companies divide markets using characteristics such as age, gender, income,
education, and family size, they are segmenting the market by _______.

________________________________________

80. Marketers are particularly interested in segmenting older Americans because they typically
have two things that most of their younger counterparts do not: _______.

________________________________________

81. When it comes to segmenting markets based on income, the group of American households
that have between $100,000 and $250,000 in investable assets and is one of the fastest
growing segments in the U.S. is referred to as _______.

________________________________________

82. A department store that sells ski equipment in Colorado understands the importance of
_______ segmentation.

________________________________________

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83. Market size, customer convenience and population shifts are all factors related to _______
segmentation.

________________________________________

84. Figures from the 2010 Census illustrated a shifting population in the United States with
_______ states growing substantially compared to the rest of the country.

________________________________________

85. The science of using psychology and demographics to segment consumers is called _______.

________________________________________

86. The market is divided into groups according to the reason the consumer made the purchase
when marketers segment based on _______.

________________________________________

87. Stores such as Bass Pro Shops focus their attention on consumers who like to fish, hunt, and
pursue other outdoor activities. This represents the form of segmentation called _______.

________________________________________

88. The VALS framework measures two dimensions: _______ and _______.

________________________________________

89. The VALS framework identifies three primary motivations: ideals, achievement, and _______.

________________________________________

7-29
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90. Variables such as occasions, loyalty, and usage rate are all related to _______ segmentation.

________________________________________

91. It is important for many firms to identify their heavy users because of the rule that 20 percent
of heavy users account for _______ percent of the total demand.

________________________________________

92. _______ segmentation is often the most difficult to use because it is not only expensive but
also time-consuming.

________________________________________

93. In a B2B market, _______ segmentation might be the most beneficial because it allows
marketers to segment based on purchasing patterns, supplier requirements, and
technological orientation.

________________________________________

94. When a company seeks consumers who are active users of Facebook and Twitter, this is an
example of how _______ can be used as a market segmentation strategy.

________________________________________

95. _______ segmentation information, which is typically easy to acquire, may be slow in coming
or completely unavailable in international markets.

________________________________________

7-30
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96. Firms typically segment international markets using three general bases: global, regional, and
_______.

________________________________________

97. _______ is used when the firm can identify a group of consumers with common needs and
wants that spans the entire globe.

________________________________________

98. Firms will often use a _______ segmentation strategy when they want to capitalize on the
financial savings of global segmentation but still adjust for local customs and culture.

________________________________________

99. When the similarity in needs and wants exists only within one country, a _______
segmentation strategy will be used.

________________________________________

100.The market segment criteria stating that market segments must be large enough for the firm
to make a profit by serving them is _______.

________________________________________

101.When marketers ensure that market segments will not respond the same to different
marketing strategies, they understand that market segments should be _______.

________________________________________

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102.If a market segment is _______, a firm should be reasonably certain that its marketing mix
can inform consumers about the product, how it adds value to the consumer, and ultimately
how to purchase it.

________________________________________

103._______ occurs when marketers evaluate each market segment and determine which
segment or segments present the most attractive opportunity to maximize sales.

________________________________________

104.The more intense the competition within a segment, the _______ attractive it is to marketers.

________________________________________

105.Marketers concerned about ________ when selecting a target market may use a SWOT
analysis to determine if the firm will be successful targeting a specific segment.

________________________________________

106.The major advantage of a(n) _______ targeting strategy is the potential savings in developing
and marketing the product.

________________________________________

107.A company that sells beef sandwiches across the country makes the sandwich with green
chilies and jalape–os in the Southwestern states, but makes it with green peppers in the
Northeastern states. This is an example of a(n) _______ targeting strategy.

________________________________________

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108.Consumers of _______ marketing products typically have very specialized needs and will pay
higher prices to meet those needs.

________________________________________

109.The ethical implications of targeting some market segments can be seen when marketers at
Abercrombie and Fitch began marketing clothes with sexualized characteristics to _______.

________________________________________

110._______ assumes that consumers compare goods and services on the basis of benefits.

________________________________________

111.A _______ is a competitive analysis tool that creates a visual picture of where products are
located in consumers' minds.

________________________________________

112.The second step in deciding how to best position a product is to clearly define the firm's
_______.

________________________________________

113.Consumer tastes for everything change from time to time, which is why it is important to
evaluate customer _______ when deciding how to best position a product.

________________________________________

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114.A succinct description of the core target market to which a product is directed and a
compelling picture of how the firm wants that core market to view the product is referred to
as a _______.

________________________________________

115._______ typically involves changing one or more marketing mix elements, often product or
promotion.

________________________________________

True / False Questions

116.The process of dividing a larger market into smaller groups based on meaningfully shared
characteristics is called positioning.

True False

117.Market segmentation helps firms decide how to allocate their marketing resources in a way
that maximizes profit.

True False

118.The four broad segmentation bases that marketers use to divide the market into segments
are: substantial, measurable, differentiable, and accessible.

True False

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119.Marketers particularly target younger consumers because compared to the rest of the
population, they typically have more time and money.

True False

120.Consumers who have between $100,000 and $250,000 in investable assets are termed mass
affluent and are one of the fastest growing segments in the United States.

True False

121.Market size, customer lifestyles, and population shifts are all important geographic
segmentation tools.

True False

122.The 2010 Census showed that the only southern state that lost seats in the House of
Representatives was Louisiana.

True False

123.When marketers segment based on psychographics, the market is divided into groups
according to the reason the consumer made the purchase.

True False

124.The two dimensions of the VALS framework, needs and wants, helps to explain why different
consumer groups exhibit different behaviors, and why different consumer groups often
exhibit the same behaviors for different reasons.

True False

7-35
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125.Psychographic segmentation involves categorizing customers based on what they actually do
with their goods and services.

True False

126.Behavioral segmentation is often the most difficult of the four segmentation bases to use.

True False

127.Social media outlets like Facebook are not generally helpful in segmenting markets because
of the wide variety of people who utilize this type of technology.

True False

128.Global segmentation usually results in market segments made up of young people, those that
have money to spend, or those with access to the Internet.

True False

129.Unique segmentation is used when the similarity in needs and wants only extends across the
region or several countries.

True False

130.One of the criteria for segmenting a market is that the market should be actionable, meaning
that a firm should be reasonably certain that its marketing mix can inform consumers about
the product, how it adds value to the consumer, and ultimately how to purchase it.

True False

7-36
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131.Firms should consider three important factors during the targeting process: growth potential,
level of competition and strategic fit.

True False

132.In an undifferentiated targeting strategy, a firm can approach all consumers with the same
product offering and marketing mix.

True False

133.The major advantage of a differentiated targeting strategy is the potential savings in


developing and marketing the product.

True False

134.Regardless of what target marketing strategy firms use, they must keep in mind the growing
ethical concerns around targeting some market segments, in particular children, non-native
language speakers, and the elderly.

True False

135.As it relates to marketing, segmenting and positioning are essentially the same thing.

True False

136.A perceptual map is a competitive analysis tool that creates a visual picture of where
products are located in consumer's minds.

True False

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137.A firm that uses a price/quality relationship to highlight its competitive advantage will
negotiate discounts from wholesalers and keep distribution costs low so it can pass the
savings on to its customers.

True False

138.Firms can choose to promote one or multiple competitive advantages, as long as they can
clearly articulate those advantages to their target market.

True False

139.A successful positioning statement should include the competitive advantages of the
product.

True False

140.Repositioning refers to re-segmenting a target market that failed to produce enough buyers
for a product.

True False

7-38
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Chapter 07 Segmenting, Targeting, and Finding Your Market Position
Answer Key

Multiple Choice Questions

1. The process of dividing a larger market into smaller groups based on meaningfully shared
characteristics is referred to as

A. mass marketing.

B. market segmentation.

C. positioning.

D. concept testing.

E. market fragmentation.

Market segmentation is the process of dividing a larger market into smaller groups based
on meaningfully shared characteristics.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-39
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McGraw-Hill Education.
2. It has been Shelly's dream to open a bakery, and while she has experience in making all
types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So,
rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to
open a specialty cupcake shop to cater to that market only. This is an example of

A. mass marketing.

B. market fragmentation.

C. repositioning.

D. market segmentation.

E. limited marketing.

Rather than trying to offer a menu where every potential consumer can find something,
Shelly has chosen to segment the market and provide the best possible product to her
target market.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-40
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McGraw-Hill Education.
3. A defined in your text, market segmentation involves dividing a larger market into smaller
market segments based on

A. meaningfully shared characteristics.

B. shopping habits.

C. potential interest in a product.

D. geographic region.

E. available sales force.

Market segmentation is the process of dividing a larger market into smaller groups based
on meaningfully shared characteristics.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

4. Market segmentation refers to

A. having regional sales forces that can market a product according to geographic area.

B. taking an overall marketing plan and dividing it into smaller campaigns based on each
product.

C. dividing a larger market into smaller groups based on meaningfully shared


characteristics.

D. redesigning or repositioning a product so it meets the needs of a target market.

E. marketing a product so that each and every consumer can get value from it.

Market segmentation is the process of dividing a larger market into smaller groups based
on meaningfully shared characteristics.

AACSB: Reflective Thinking

7-41
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McGraw-Hill Education.
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

5. Market segmentation produces relatively homogenous groups of consumers called

A. consumer segments.

B. consumer targets.

C. market sectors.

D. consumer clusters.

E. market segments.

Market segments are the relatively homogenous groups of consumers that result from the
segmentation process.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-42
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McGraw-Hill Education.
6. Market segments are

A. the various types of advertising and promotional campaigns used to sway consumer
interest in a product.

B. relatively homogenous groups of consumers that result from the segmentation process.

C. the different geographical areas in which a product must be marketed differently.

D. the two buying groups: those that have never purchased a firm's product, and those
that are potential repeat customers.

E. relatively heterogeneous groups of consumers that result from the segmentation


process.

Market segments are the relatively homogenous groups of consumers that result from the
segmentation process.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-43
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McGraw-Hill Education.
7. Read the following statements to select the choice that is NOT true of market
segmentation.

A. Market segmentation helps firms define the needs and wants of the customers who
are most interested in buying the firm's products.

B. Market segmentation helps firms design specific marketing strategies for the
characteristics of specific segments.

C. Market segmentation identifies which products will be profitable and which ones are
not worth pursuing.

D. Market segmentation helps firms decide how to allocate their marketing resources in a
way that maximizes profit.

E. Market segmentation results in identifying the relatively homogenous groups of


consumers that a firm can market its product to.

Market segmentation is the process of dividing a larger market into smaller groups based
on meaningfully shared characteristics. This process has many benefits for a firm, but it
cannot determine which products will be profitable or which ones should not be pursued.

AACSB: Reflective Thinking


Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-44
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McGraw-Hill Education.
8. Which of the following is NOT one of the broad segmentation bases outlined in your text
that can be used to segment a market?

A. demographic

B. demand

C. geographic

D. psychographic

E. behavioral

The four broad bases used to segment a consumer market are geographic segmentation,
demographic segmentation, behavioral segmentation, and psychographic segmentation.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

9. What are the two most commonly used demographic variables used by marketers?

A. age and income

B. gender and income

C. education and family size

D. age and gender

E. family size and age

Because they are often the easiest to identify, age and gender are the most commonly
used demographic variables used by marketers.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium

7-45
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McGraw-Hill Education.
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

10. Demographic segmentation divides markets by

A. geographic location.

B. characteristics such as age, gender, and income.

C. characteristics such as loyalty and price sensitivity.

D. consumer attitudes.

E. psychological traits.

Demographic segmentation divides markets by characteristics such as age, gender,


income, education, and family size.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-46
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11. One of the most important sources of demographic information for marketers, which of the
following provides free information on data such as how households are segmented by
race, education, age, and occupation?

A. ACNielsen Company

B. Consumer Reports

C. the Social Security Administration

D. the U.S. Census Bureau

E. the U.S. Bureau of Labor Statistics

Small businesses and other organizations often have a very limited marketing research
budget. For them, websites like www.census.gov, which provide large amounts of market
information for free, are an increasingly valuable tool.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-47
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McGraw-Hill Education.
12. Clif Bar & Company, makers of energy and nutrition bars, expanded their product line to
include Clif Kid Z Bars. These bars are specifically designed to provide the right kind of
nutrition for growing children. For this product, Clif Bar & Company is segmenting the
market based on

A. lifestyle.

B. customer convenience.

C. motivation.

D. gender.

E. age.

Age is an especially valuable segmentation tool and marketers have had success in
targeting young consumers.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-48
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McGraw-Hill Education.
13. Marketers particularly target older Americans because

A. they tend to have more time and money than other consumers.

B. they tend to pay more attention to advertisements than other consumers.

C. they tend to be more educated than other consumers.

D. there are more products available to that age group.

E. they purchase products not only for themselves, but also for their family members.

Age is an especially valuable segmentation tool in areas such as food, housing, and health
care because older Americans spend significantly more than younger consumers. In
addition, older consumers typically have two things that most of their younger
counterparts do not: time and money.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-49
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14. Which of the following is a demographic segmentation variable?

A. lifestyle

B. motivation

C. gender

D. market size

E. population shifts

Gender, along with age, income, family size and marital status is a demographic
segmentation variable. Marketers are expanding beyond traditional gender segmentation
as new trends shift marketing dollars away from male- or female-oriented marketing to try
to appeal to both genders.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-50
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15. Quentin is a realtor selling high-end homes priced over $750,000. Before showing a
property to prospective clients, Quentin makes sure they are pre-qualified for a home loan
commensurate with the price of the house. This pre-qualification is based mainly on the
client's income, which is what type of segmentation variable?

A. demographic

B. psychographic

C. behavioral

D. financial

E. geographic

Income is a demographic segmentation variable and is valuable information for marketers


to know since income affects consumers' ability to buy goods and services.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-51
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16. American households that have between $100,000 and $250,000 in investable assets are
one of the fastest growing segments in the United States and are referred to as

A. ultra-rich.

B. the well-to-dos.

C. the massively wealthy.

D. ultra-prosperous.

E. mass affluent.

Mass affluents are one of the fastest growing segments in the United States. They have
between $100,000 and $250,000 in investable assets.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-52
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McGraw-Hill Education.
17. Contractors that advertise the ability to turn home attics or the space above a garage into
living areas are most likely targeting their market based on the demographic variable of

A. income.

B. gender.

C. family size.

D. usage rate.

E. neighborhoods.

In recent years, the size of families living under one roof has increased as more college-
age students move back home and more adult couples take care of their elderly parents.
Marketers at major U.S. homebuilders hope to appeal to these larger family units by
building and promoting houses that come with additional rooms or garage apartments with
a separate entrance.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-53
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18. Segmentation based on where prospective consumers live, work, and spend their leisure
time is referred to as

A. regional segmentation.

B. demographic segmentation.

C. residential segmentation.

D. geographic segmentation.

E. proximity segmentation.

Geographic segmentation divides markets into groups such as nations, regions, states,
and neighborhoods.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

19. Free-standing areas with a core urban population of at least 50,000 are what the U.S.
Census Bureau calls

A. metropolitan statistical areas.

B. urban numerical areas.

C. major cities.

D. metropolitan districts.

E. urban statistical areas.

The U.S. Census Bureau divides cities and urbanized areas into Metropolitan Statistical
Areas (MSAs), which are free-standing areas with a core urban population of at least
50,000.

AACSB: Analytic

7-54
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McGraw-Hill Education.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

20. The fact that you see a Starbucks on practically every corner would indicate that
Starbucks is most likely geographically segmenting based on

A. market size.

B. customer convenience.

C. population shifts.

D. income.

E. lifestyle.

Segmenting by geography allows marketers to capitalize on convenience to the customer.


Starbucks has been successful in locating its stores in convenient geographic locations.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-55
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McGraw-Hill Education.
21. According to the 2010 U.S. Census, which is the only southern state that lost seats in the
House of Representatives due to population shifts out of the state?

A. Texas

B. Arizona

C. Florida

D. South Carolina

E. Louisiana

After Hurricane Katrina, New Orleans lost 29 percent of its residents, making the state of
Louisiana the only southern state to lose seats in the House of Representatives.
Marketers must be aware of these population shifts to understand where and why
potential customers are moving.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

22. Psychographic segmentation refers to the science of segmenting markets based on

A. consumers' opinions and interests.

B. psychology and demographics.

C. behavior and demographics.

D. consumers' income and behavior.

E. psychology and geography.

The science of using psychology and demographics to segment consumers is referred to


as psychographic segmentation.

AACSB: Analytic

7-56
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McGraw-Hill Education.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

23. When marketers segment based on psychographics, the market is divided into groups
according to

A. a consumer's income and interest in the product.

B. how consumers act toward products.

C. how convenient the product is for the consumer.

D. the reason why the consumer made the purchase.

E. family size and marital status.

When marketers segment based on psychographics, the market is divided into groups
according to the reason the consumer made the purchase. Salespeople who highlight
specific features of their product based on an understanding of individual consumer
motivations increase the likelihood of a sale because the features highlighted are more
likely to match the customer's specific needs and wants.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-57
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McGraw-Hill Education.
24. A psychographic segmentation variable that divides people into groups based on their
opinion and the interests and activities they pursue is called

A. behavioral segmentation.

B. socioeconomic segmentation.

C. psychological segmentation.

D. social segmentation.

E. lifestyle segmentation.

Lifestyle segmentation divides people into groups based on their opinions and the
interests and activities they pursue.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

25. Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most
likely use what type of segmentation strategy?

A. psychographic segmentation

B. socioeconomic segmentation

C. demographic segmentation

D. geographic segmentation

E. behavioral segmentation

Lifestyle segmentation divides people into groups based on their opinions and the
interests and activities they pursue and is a type of psychographic segmentation.

AACSB: Reflective Thinking


Blooms: Apply

7-58
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McGraw-Hill Education.
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

26. The VALS framework classifies adults into eight psychographic groups: Innovators,
Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and

A. Creators.

B. Survivors.

C. Seekers.

D. Fighters.

E. Skeptics.

VALS classifies adults on the basis of their responses to 34 attitudinal and 4 demographic
questions into 8 psychographic groups: Innovators, Thinkers, Believers, Achievers, Strivers,
Experiencers, Makers, and Survivors.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-59
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McGraw-Hill Education.
27. According to the VALS framework, why different consumer groups exhibit different
behaviors or why different consumer groups exhibit the same behaviors for different
reasons is based on

A. opinion and interests.

B. lifestyle and income.

C. motivation and resources.

D. opinion and resources.

E. motivation and desire.

VALS measures two dimensions: primary motivation and resources. How motivation and
resources combine explains why different consumer groups exhibit different behaviors,
and why different consumer groups often exhibit the same behaviors for different reasons.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

28. Behavioral segmentation divides consumers according to

A. consumers' opinion and interests.

B. how consumers behave with or act towards products.

C. customer convenience and market size.

D. the various lifestyles of the consumer.

E. how motivated and how many resources a consumer has.

Behavioral segmentation divides consumers according to how they behave with or act
toward products.

AACSB: Analytic

7-60
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McGraw-Hill Education.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

29. Which of the following is a behavioral segmentation variable?

A. population shifts

B. customer convenience

C. family size

D. usage rate

E. lifestyle

Behavioral segmentation variables include occasions, loyalty, and usage rate.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-61
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McGraw-Hill Education.
30. The 80/20 rule is a theory that suggests that

A. 80 percent of a firm's profits is generated from 20 percent of its product line.

B. 80 percent of a firm's products are marketed to only 20 percent of the population.

C. 20 percent of the total demand for products comes from 80 percent of the target
market.

D. 20 percent of a firm's products are never marketed to 80 percent of consumers.

E. 20 percent of heavy users account for 80 percent of the total demand.

Many firms subscribe to the 80/20 rule, which suggests that the 20 percent of heavy users
account for 80 percent of the total demand.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

31. According to your text, the segmentation base that is often the most difficult to use is

A. behavioral segmentation.

B. geographic segmentation.

C. lifestyle segmentation.

D. psychographic segmentation.

E. demographic segmentation.

Behavioral segmentation is often the most difficult of the four bases to use. The marketing
research required to track and understand how consumers behave with a certain product
is very expensive and time-consuming.

AACSB: Reflective Thinking


Blooms: Understand

7-62
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McGraw-Hill Education.
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

32. Business-to-business firms generally segment their markets according to what three
variables?

A. market size, customer convenience, and usage rate

B. demographic, geographic, and psychographic

C. demographic, geographic, and behavioral

D. price sensitivity, usage rate, and region

E. profit potential, price sensitivity, and demand

Business-to-business firms generally segment their markets using three types of


variables: demographic, geographic, and behavioral.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-63
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McGraw-Hill Education.
33. What type of business-to-business segmentation allows B2B marketers to segment based
on purchasing patterns, supplier requirements, and technological orientation?

A. behavioral

B. geographic

C. demographic

D. lifestyle

E. psychographic

Behavioral segmentation might be the most beneficial variable to B2B marketers because
it allows them to segment based on purchasing patterns, supplier requirements, and
technological orientation.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-64
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McGraw-Hill Education.
34. Read the following statements to select which one is accurate regarding the use of social
media in market segmentation.

A. Social media is not very helpful in segmenting markets, but it can be a useful tool for
marketers once the market has already been segmented.

B. By segmenting the market by those who are active on social media, companies can
connect with a larger and more diverse consumer base.

C. Social media is most helpful in reaching out to older Americans and senior citizens.

D. As of yet, social media has not been proven to be an effective tool for segmenting
markets.

E. As compared to traditional segmenting techniques, it is easier to know exactly how to


engage consumers on social networking sites.

Social media can be especially effective in market segmentation strategies. By segmenting


the market by those who are active on social media, companies can, with minimal financial
responsibility, engage and interact personally through individualized social media channels
such as Facebook and Twitter with a larger and more diverse consumer base.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: The Role of Social Media in Market Segmentation

7-65
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McGraw-Hill Education.
35. Which of the following is NOT characteristic of gathering the information needed to
engage in international market segmentation?

A. Obtaining the information required to segment international markets is both costly and
difficult.

B. The information needed to segment international markets may be hard to come by.

C. Not all countries collect or classify their data in the same way.

D. Social media sites and the Internet have made it possible to collect all the information
needed to segment international markets.

E. It is practically impossible to compare the data received across nations in order to form
a segment.

Even with the help social media channels provide in reaching international markets,
international market segmentation is a costly exercise, and often a very difficult one. Even
demographic information, which is typically the easiest to acquire, may be slow in coming
or completely unavailable.

AACSB: Reflective Thinking


Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-66
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McGraw-Hill Education.
36. Firms typically segment international markets using three general bases: global, regional,
and

A. national.

B. cultural.

C. political.

D. economic.

E. unique.

Firms typically segment international markets using three general bases: global, regional,
and unique.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

37. As it pertains to international segmentation, global segmentation refers to identifying

A. products that can be marketed in the same way across the globe.

B. similar patterns in cultures that can be used to segment a market.

C. a group of consumers with common needs and wants that spans the entire globe.

D. products that will have a global appeal.

E. markets that will be favorable for exporting products internationally.

Global segmentation is used when a firm can identify a group of consumers with common
needs and wants that spans the entire globe.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

7-67
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McGraw-Hill Education.
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

38. Which international segmentation base usually results in market segments made up of
young people, those that have more money to spend, or those with access to the Internet?

A. global

B. cultural

C. national

D. regional

E. unique

Global segmentation usually results in market segments made up of young people, those
that have more money to spend, or those with access to the Internet.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-68
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McGraw-Hill Education.
39. As it pertains to international segmentation, unique segmentation is used when

A. a firm can identify a group of consumers with common needs and wants that spans the
entire globe.

B. the similarity in needs and wants only extends across the region or several countries.

C. the similarity in needs and wants exists within one country.

D. a product offering has market appeal in several countries.

E. a product offering has market appeal only in English-speaking regions.

Unique segmentation is used when the similarity in needs and wants exists only within
one country.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

40. To be effective, segmentation should create market segments that rate favorably on
various criteria. Which of the following is NOT one of the criteria outlined in your text?

A. substantial

B. variable

C. measurable

D. accessible

E. actionable

Markets should rate favorably on five criteria. They should be: substantial, measurable,
differentiable, accessible, and actionable.

AACSB: Analytic
Blooms: Remember

7-69
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McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

41. Which market segment criteria refers to the fact that segments must be large enough for
the firm to make a profit by serving them?

A. substantial

B. differentiable

C. measurable

D. accessible

E. actionable

Designing a cereal for people who are over 100 years of age or athletic shoes for people
who wear larger than a size 24 shoe are not viable options because the market for each
product is not substantial enough for the firm to make sustainable profits.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

7-70
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42. When it comes to criteria for segmenting markets, it is important that the size and
purchasing power of a market segment should be clearly identified. In other words, it
should be

A. identifiable.

B. differentiable.

C. measurable.

D. accessible.

E. actionable.

A market segment needs to be measurable. Managers today demand high levels of


accountability from marketers who must show measurable results of the success or failure
of specific marketing strategies.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

7-71
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43. An auto insurance company segmented its market by both gender and age, and designed
different marketing campaigns to appeal to both. In the end, both segments responded the
same to the different marketing strategies, in part, because both segments are required to
have auto insurance. This firm failed to understand the criteria of market segments
needing to be

A. substantial.

B. differentiable.

C. measurable.

D. accessible.

E. actionable.

A market segment must be differentiable. Dividing the market into segments does no good
if all the segments respond the same to different marketing strategies.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

7-72
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McGraw-Hill Education.
44. What does the criteria accessible mean regarding market segments?

A. Segments must be large enough for the firm to make a profit by serving them.

B. The size and purchasing power of the segment should be clearly identified.

C. Marketers should develop strategies that can attract a market to its products.

D. Markets should be clearly identified with appropriate strategies developed for each.

E. Marketers must be able to reach and serve the segment.

Marketers must be able to reach and serve the segment. If the firm doesn't have the size,
financial capital, expertise, or government permits to serve a certain market segment, all
of the other criteria are irrelevant.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

45. When a firm is reasonably certain that its marketing mix can inform consumers about the
product, how it adds value to the consumer, and ultimately how to purchase it, then the
firm rates favorably on which market segment criteria?

A. substantial

B. differentiable

C. actionable

D. accessible

E. measurable

In order to have a market segment that is actionable, marketers should be able to develop
strategies that can attract certain market segments to their firms' goods and services.

AACSB: Reflective Thinking

7-73
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McGraw-Hill Education.
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

46. When a company evaluates each market segment to determine which segment or
segments present the most attractive opportunity to maximize sales, it is engaged in

A. positioning.

B. targeting.

C. segmenting.

D. situation analysis.

E. repositioning.

Targeting is the act of evaluating each market segment to determine which segment or
segments present the most attractive opportunity to maximize sales.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-74
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McGraw-Hill Education.
47. Carson has opened up a new sports bar/restaurant in town. He has determined that his
market segments are (1) students from the nearby college campus, (2) families with small
children, and (3) young adult males. Carson now has to determine which of these
segments will provide him with the best opportunity to maximize sales. The process of
doing this is referred to as

A. targeting.

B. positioning.

C. segmenting.

D. marketing.

E. repositioning.

Targeting is the act of evaluating each market segment to determine which segment or
segments present the most attractive opportunity to maximize sales.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-75
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McGraw-Hill Education.
48. The group of customers toward which an organization has decided to direct its marketing
efforts is called its

A. marketing segment.

B. primary segment.

C. primary market.

D. target market.

E. target sector.

A target market is the group of customers toward which an organization has decided to
direct its marketing efforts.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

49. After Carson opened up his new sports bar/restaurant, he determined that students from
the nearby college campus will provide him with the best opportunity to maximize sales, so
he is concentrating his marketing efforts on this group which will be his

A. marketing segment.

B. primary segment.

C. primary market.

D. target market.

E. target sector.

A target market is the group of customers toward which an organization has decided to
direct its marketing efforts.

AACSB: Reflective Thinking

7-76
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McGraw-Hill Education.
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

50. According to your text, when selecting a target market, firms should consider three
important factors: growth potential, level of competition, and

A. proximity to the market.

B. strategic fit.

C. profitability timeframe.

D. cultural factors.

E. economic conditions.

Firms should consider three important factors during the targeting process: growth
potential, level of competition, and strategic fit.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-77
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McGraw-Hill Education.
51. What can be said of the level of competition when selecting a target market?

A. The more intense the competition within a segment, the more attractive it is to
marketers.

B. The more competitors there are within a segment, the less of a chance there is for
price wars.

C. The more competitors there are within a segment, the less a company will have to
spend to reach out to consumers.

D. A market segment is less attractive to marketers if there are only a few competitors for
that segment.

E. The more competitors there are, the more a firm will have to invest in promotion to
increase market share.

The more intense the competition within a segment, the less attractive it is to marketers.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-78
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McGraw-Hill Education.
52. What factor of the targeting process is at work when a marketer ensures that the target
market is appropriate for what the organization is and wants to be as defined in its
mission statement?

A. growth potential

B. strategic fit

C. cultural awareness

D. organizational fit

E. segment harmony

Marketers should work to ensure that the target markets selected fit with what the
organization is and wants to be as defined in its mission statement.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-79
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McGraw-Hill Education.
53. According to your text, what tool provides an excellent framework to determine if a firm
will be successful targeting a specific segment?

A. a SWOT analysis

B. Maslow's hierarchy of needs

C. a perceptual map

D. a positioning map

E. a segmentation analysis

By analyzing a firm's strengths, weaknesses, opportunities, and threats, a SWOT analysis


provides an excellent framework to determine if a firm will be successful targeting a
specific segment.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

54. Which of the following represents the three basic strategies for targeting markets?

A. primary targeting, secondary targeting, and specialized marketing

B. targeting by product, targeting by price, and targeting by customer

C. demographic targeting, geographic targeting, and psychographic targeting

D. undifferentiated targeting, differentiated targeting, and niche marketing

E. print advertising, sales promotion, and public relations

The three basic strategies for targeting markets include: undifferentiated targeting,
differentiated targeting, and niche marketing.

AACSB: Analytic
Blooms: Understand

7-80
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McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

55. Undifferentiated targeting is a strategy that

A. approaches the marketplace as one large segment.

B. simultaneously pursues several different market segments with a different strategy for
each.

C. involves pursuing a large share of a small market.

D. uses a different marketing strategy for each segment.

E. markets the same product to multiple regions.

An undifferentiated targeting strategy approaches the marketplace as one large segment.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-81
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56. The potential savings in developing and marketing the product is the major advantage of

A. a differentiated targeting strategy.

B. a geographic targeting strategy.

C. a niche marketing strategy.

D. a specialized marketing strategy.

E. an undifferentiated targeting strategy.

An undifferentiated targeting strategy approaches the marketplace as one large segment.


Its major advantage is the potential savings in developing and marketing the product.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

57. What type of targeting strategy works with uniform products for which the firm can
develop a single marketing mix that satisfies the needs of all customers?

A. an undifferentiated targeting strategy

B. a geographic targeting strategy

C. a niche marketing strategy

D. a concentrated marketing strategy

E. a differentiated targeting strategy

An undifferentiated targeting strategy approaches the marketplace as one large segment.


It works best with uniform products, such as salt or bananas, for which the firm can
develop a single marketing mix that satisfies the needs of all customers.

AACSB: Reflective Thinking


Blooms: Understand

7-82
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McGraw-Hill Education.
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

58. Firms that market the same product to multiple regions with different preferences may
need to tweak the product to ensure that it meets a need unique to each segment. This
represents what type of targeting strategy?

A. an undifferentiated targeting strategy

B. a geographic targeting strategy

C. a niche marketing strategy

D. a differentiated marketing strategy

E. a concentrated targeting strategy

A differentiated targeting strategy simultaneously pursues several different market


segments, usually with a different strategy for each.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-83
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McGraw-Hill Education.
59. Rico's firm manufactures homemade salsa. His product is sold around the country, but he
adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those
customers prefer the extra heat and spice. Rico also markets the product differently based
on the region of the country where it is sold. This represents what type of targeting
strategy?

A. niche

B. differentiated

C. undifferentiated

D. geographic

E. concentrated

A differentiated targeting strategy simultaneously pursues several different market


segments, usually with a different strategy for each. In Rico's case, while the core product
remained the same, select flavors were distributed to certain regions based on local
preferences.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-84
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McGraw-Hill Education.
60. A firm marketing its product in the United States and abroad may have to tweak the
product for its international customers and as such may have to market it differently. What
type of targeting strategy would work best for this situation?

A. differentiated

B. niche

C. undifferentiated

D. geographic

E. concentrated

A firm marketing to a region outside the U.S. may also need to modify products according
to local government regulations and cultural preferences. Firms that market the same
product to multiple regions with different preferences often use differentiated target
marketing.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-85
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McGraw-Hill Education.
61. A targeting strategy that involves pursuing a large share of a small market segment is
referred to as

A. differentiated targeting.

B. niche marketing.

C. undifferentiated targeting.

D. geographic targeting.

E. lifestyle marketing.

Consumers of niche marketing products typically have very specialized needs and will pay
higher prices to meet those needs.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-86
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McGraw-Hill Education.
62. College Prep Tutors is a business that tutors high-school students who are preparing to
take the ACT test as part of their college entrance requirements. Because it possesses a
unique offering that is desirable to a specific market, College Prep Tutors would most
likely use what type of target market strategy?

A. differentiated targeting

B. lifestyle marketing

C. undifferentiated targeting

D. mass marketing

E. niche marketing

Consumers of niche marketing products typically have very specialized needs and will pay
higher prices to meet those needs. Niche product firms possess a unique offering or
specialization that is desirable to their targeted customers.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-87
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McGraw-Hill Education.
63. Read the following and select which one best represents a growing ethical concern in
targeting certain market segments.

A. Miller Brewing Company targeting its beer product line to sporting fans

B. Abercrombie and Fitch targeting tweens with sexualized clothing

C. Lane Bryant targeting clothing for plus-sized women

D. Sears giving discounts to military, fire, and police personnel

E. Skype.com targeting older Americans as a way to connect with their grandchildren

An analysis of popular online children's retailers showed that almost 30 percent of


children's clothes have sexualized characteristics and that the highest proportion of
sexualized clothing came from stores aimed at tweens, which is what Abercrombie and
Fitch began doing in the early 2000s. Several grassroots organizations have been formed
to promote ethical marketing to children, and marketers should consider the ethical
implications of any target marketing strategies they implement.

AACSB: Ethics
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 07-07 Summarize the ethical issues in target marketing.
Topic: Ethical Issues in Target Marketing

7-88
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McGraw-Hill Education.
64. The activities a firm undertakes to create a certain perception of its product in the eyes of
the target market is referred to as

A. segmenting.

B. targeting.

C. conceptualizing.

D. positioning.

E. categorizing.

Success within the target market depends, to some degree, on how the firm positions its
product. The set of activities a firm undertakes to create a certain perception of its
product in the eyes of the target market is referred to as positioning.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-89
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65. According to your text, positioning assumes that consumers

A. will always want to pay the lowest price possible for a product.

B. are followers and will only buy products that appeal to their friends as well.

C. will compare goods and services on the basis of benefits.

D. are innovators and will always want the latest and most innovative products.

E. will make up their own minds about a product, regardless of how it is marketed.

Positioning happens in many different ways and assumes that consumers compare goods
and services on the basis of benefits. Positioning often takes into account the identity of
the organization and where it fits relative to the competition.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-90
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66. The first step marketers should take when deciding how best to position their product is
to

A. clearly define its competitive advantage.

B. analyze competitors' positions.

C. evaluate consumer feedback.

D. define the product attributes that make it unique.

E. determine what market segments will be interested in the product.

As a first step, firms must understand the position other competitors have taken in the
marketplace. Positioning does not occur in isolation, and it is important for marketers to
have a realistic view of how customers perceive competitive offerings.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-91
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67. Regarding positioning a product, when is competitive analysis most important?

A. when competitors all appear to offer a similar good or service

B. when a product is unique compared to what other firms are offering

C. when selecting a target market for a product

D. when determining how to segment the market

E. when competitors all appear to offer lower priced options

Positioning does not occur in isolation, and it is important for marketers to have a realistic
view of how customers perceive competitive offerings. Competitive analysis becomes even
more important when competitors all appear to offer a similar good or service.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-92
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68. The competitive analysis tool that creates a visual picture of where products are located in
consumers' minds is called a

A. positioning map.

B. perceptual map.

C. conceptual map.

D. marketing map.

E. competitive map.

A perceptual map provides a valuable tool for understanding competitor positions in the
marketplace by creating a visual picture of where products are located in consumers'
minds.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-93
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69. An advantage to using a perceptual map is that it

A. it is the quickest way to determine market segments.

B. shows how other companies are marketing their products.

C. can highlight potential market positions that might be underserved.

D. shows which products of a firm are most profitable.

E. shows the firms strengths, weaknesses, opportunities and threats.

A perceptual map provides a valuable tool for understanding competitor positions in the
marketplace by creating a visual picture of where products are located in consumers'
minds. Therefore, it can uncover potential market positions that might be underserved.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

70. The second step in deciding how best to position a product is to

A. analyze competitors' positions.

B. evaluate consumer feedback.

C. assess the product's profit potential.

D. conduct test marketing on the product.

E. clearly define the product's competitive advantage.

The second step in deciding how to best position a product is to clearly define the
product's competitive advantage.

AACSB: Analytic
Blooms: Remember

7-94
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McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

71. Both Sam's Club and Costco have positioned themselves as providing a variety of items to
shoppers at prices lower than retail stores. These stores have positioned themselves
based on

A. application.

B. attributes.

C. product knowledge.

D. price/quality relationship.

E. personalized sales support.

One way to highlight a firm's competitive advantage is based on price/quality relationship.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-95
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McGraw-Hill Education.
72. When highlighting a product's competitive advantage based on attributes, a firm will

A. show how its product is priced lower than the competition.

B. show how its product use can be advantageous to the customer.

C. concentrate on the unique aspects of the product that sets it apart from the
competition.

D. develop a relationship with the target market that will enhance the product's brand.

E. remind customers the value of the product received in comparison to its price.

Often a product will have multiple attributes that create a unique position in the market.
Marketers should evaluate those attributes that put its product in a special category of
value to the customer.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-96
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McGraw-Hill Education.
73. According to your text, what step in deciding how to position a product should be done on
a continual basis since consumer tastes change for almost every product?

A. evaluate feedback

B. analyze competitors positions

C. review the perceptual map

D. define the product's competitive advantage

E. undergo market segmentation

Since consumer tastes change for almost everything, firms should continually listen to
customer feedback in order to position their products to satisfy their target markets.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-97
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McGraw-Hill Education.
74. A succinct description of the core target market to which a product is directed and a
compelling picture of how the firm wants that core market to view the product is called a

A. mission statement.

B. marketing plan.

C. positioning statement.

D. vision statement.

E. business plan.

A positioning statement is a succinct description of the core target market to which a


product is directed and a compelling picture of how the firm wants that core market to
view the product.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-98
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McGraw-Hill Education.
75. Today's health conscious society has caused cereal manufacturers to rethink their
products. Now many cereals such as Frosted Flakes are being marketed as being healthier
because they are made with whole grains and have less sugar. This is an example of

A. repositioning.

B. remarketing.

C. remanufacturing.

D. resegmenting.

E. retargeting.

Repositioning is the act of reestablishing a product's position to respond to changes in the


marketplace.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

Fill in the Blank Questions

7-99
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McGraw-Hill Education.
76. Dividing a larger market into smaller groups based on meaningful shared characteristics is
a process referred to as ________.

market segmentation

The days of one-size-fits-all mass marketing are largely over. Marketers who try to be all
things to all people typically end up serving no one well. Instead, marketers concentrate on
segmenting the market to provide the best possible product to its target market.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

77. _______ are the relatively homogenous groups of consumers that result from the
segmentation process.

Market segments

Market segmentation is the process of dividing a larger market into smaller homogenous
groups of consumers, called market segments.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-100
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McGraw-Hill Education.
78. Market segmentation helps firms in three ways: by helping to define the needs and wants
of the customers most interested in buying the firm's products, by helping to design the
specific marketing strategies for the specific segments, and by _______.

helping firms decide how to allocate their resources in a way that maximizes profit

Market segmentation helps firms in three ways: by helping to define the needs and wants
of the customers most interested in buying the firm's products, by helping to design the
specific marketing strategies for the specific segments, and by helping firms decide how
to allocate their marketing resources in a way that maximizes profit.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

79. When companies divide markets using characteristics such as age, gender, income,
education, and family size, they are segmenting the market by _______.

demographics

Demographic segmentation divides markets by characteristics such as age, gender,


income, education, and family size.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-101
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McGraw-Hill Education.
80. Marketers are particularly interested in segmenting older Americans because they
typically have two things that most of their younger counterparts do not: _______.

time and money

The median age for residents of the U.S. is the highest in the history of the country,
providing marketers with expanding market segments of older Americans for their
products that represent billions of dollars in potential sales. Older consumers typically
have two things that most of their younger counterparts do not: time and money.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

81. When it comes to segmenting markets based on income, the group of American
households that have between $100,000 and $250,000 in investable assets and is one of
the fastest growing segments in the U.S. is referred to as _______.

mass affluent

Firms like Merrill Lynch target American households that are considered mass affluent,
that is, those that have between $100,000 and $250,000 in investable assets. Mass
affluents are one of the fastest growing segments in the U.S. and many need the type of
financial planning that Merrill Lynch offers.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-102
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McGraw-Hill Education.
82. A department store that sells ski equipment in Colorado understands the importance of
_______ segmentation.

geographic

Geographic segmentation divides markets into groups such as nations, regions, states,
and neighborhoods. It wouldn't make sense for a marketer to promote ski equipment in
Florida, but it makes perfect sense to promote that same equipment in Colorado.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

83. Market size, customer convenience and population shifts are all factors related to _______
segmentation.

geographic

Geographic segmentation divides markets into groups such as nations, regions, states,
and neighborhoods. Factors such as population shifts, market size, and customer
convenience are all related to this type of segmentation.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-103
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McGraw-Hill Education.
84. Figures from the 2010 Census illustrated a shifting population in the United States with
_______ states growing substantially compared to the rest of the country.

southern

Southern states like Texas and Florida are growing substantially while northern states,
including Ohio, Michigan, and New York, are growing at a slower rate or not at all. It is
important for marketers to research patterns of consumer movement to understand why
and where they are moving.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

85. The science of using psychology and demographics to segment consumers is called
_______.

psychographic segmentation

Psychographic segmentation combines psychology and demographics to segment


consumers.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-104
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McGraw-Hill Education.
86. The market is divided into groups according to the reason the consumer made the
purchase when marketers segment based on _______.

psychographics

While demographic characteristics give marketers multiple ways to segment markets,


consumers within the same demographic profile can have very different psychological or
personality traits that influence their purchasing behavior. Psychographic segmentation
allows marketing professionals to create a more meaningful profile of market segments by
focusing on how those psychological traits intersect with demographic characteristics.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

87. Stores such as Bass Pro Shops focus their attention on consumers who like to fish, hunt,
and pursue other outdoor activities. This represents the form of segmentation called
_______.

lifestyle segmentation

Lifestyle segmentation divides people into groups based on their opinions and the
interests and activities they pursue.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-105
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McGraw-Hill Education.
88. The VALS framework measures two dimensions: _______ and _______.

primary motivation; resources

How motivation and resources combine explains why different consumer groups exhibit
different behaviors, and why different consumer groups often exhibit the same behaviors
for different reasons.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

89. The VALS framework identifies three primary motivations: ideals, achievement, and
_______.

self-expression

The VALS framework identifies three primary motivations: ideals, achievement, and self-
expression.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-106
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McGraw-Hill Education.
90. Variables such as occasions, loyalty, and usage rate are all related to _______
segmentation.

behavioral

Behavioral segmentation divides consumers according to how they behave with or act
towards products.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

91. It is important for many firms to identify their heavy users because of the rule that 20
percent of heavy users account for _______ percent of the total demand.

80

The 80/20 rule is a theory that suggests that 20 percent of heavy users account for 80
percent of the total demand.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-107
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McGraw-Hill Education.
92. _______ segmentation is often the most difficult to use because it is not only expensive but
also time-consuming.

Behavioral

Behavioral segmentation is often the most difficult of the four bases to use. The marketing
research required to track and understand how consumers behave with a certain product
is very expensive and time-consuming.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

93. In a B2B market, _______ segmentation might be the most beneficial because it allows
marketers to segment based on purchasing patterns, supplier requirements, and
technological orientation.

behavioral

Behavioral segmentation is often the most difficult of the four bases to use, but to
marketers it may be the most beneficial because it allows segmentation based on
purchasing patterns, supplier requirements, and technological orientation.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-108
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McGraw-Hill Education.
94. When a company seeks consumers who are active users of Facebook and Twitter, this is
an example of how _______ can be used as a market segmentation strategy.

social media

Social media can be especially effective in market segmentation strategies. By segmenting


the market by those who are active on social media, companies can, with minimal financial
responsibility, engage and interact personally through individualized social media channels
such as Facebook and Twitter with a larger and more diverse consumer base.

AACSB: Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: The Role of Social Media in Market Segmentation

95. _______ segmentation information, which is typically easy to acquire, may be slow in
coming or completely unavailable in international markets.

Demographic

Even with the help social media channels provide in reaching international markets,
international market segmentation is a costly exercise, and often a very difficult one. Even
demographic information, which is typically the easiest to acquire, may be slow in coming
or completely unavailable.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-109
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McGraw-Hill Education.
96. Firms typically segment international markets using three general bases: global, regional,
and _______.

unique

The three general bases firms typically use to segment international markets are global,
regional, and unique.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

97. _______ is used when the firm can identify a group of consumers with common needs and
wants that spans the entire globe.

Global segmentation

Global segmentation usually results in market segments made up of young people, those
that have more money to spend, or those with access to the Internet.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-110
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McGraw-Hill Education.
98. Firms will often use a _______ segmentation strategy when they want to capitalize on the
financial savings of global segmentation but still adjust for local customs and culture.

regional

Regional segmentation is used when the similarity in needs and wants only extends across
the region or several countries.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

99. When the similarity in needs and wants exists only within one country, a _______
segmentation strategy will be used.

unique

If a firm wants to completely localize, it may choose unique segmentation, which targets
the preferences of a segment within one country.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-111
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McGraw-Hill Education.
100. The market segment criteria stating that market segments must be large enough for the
firm to make a profit by serving them is _______.

substantial

Designing a cereal for people who are over 100 years of age or athletic shoes for people
who wear larger than a size 24 shoe are not viable options because the market for each
product is not substantial enough for the firm to make sustainable profits.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

101. When marketers ensure that market segments will not respond the same to different
marketing strategies, they understand that market segments should be _______.

differentiable

Dividing the market into segments does no good if all the segments respond the same to
different marketing strategies.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

7-112
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McGraw-Hill Education.
102. If a market segment is _______, a firm should be reasonably certain that its marketing mix
can inform consumers about the product, how it adds value to the consumer, and
ultimately how to purchase it.

actionable

If a market segment is actionable, marketers should be able to develop strategies that can
attract certain market segments to their firms' goods and services.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

103. _______ occurs when marketers evaluate each market segment and determine which
segment or segments present the most attractive opportunity to maximize sales.

Targeting

The act of evaluating each market segment to determine which segment or segments
present the most attractive opportunity to maximize sales is called targeting.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-113
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McGraw-Hill Education.
104. The more intense the competition within a segment, the _______ attractive it is to
marketers.

less

Generally, more competitors means a firm has to work harder and invest more in
promotion to earn business and increase market share.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

105. Marketers concerned about ________ when selecting a target market may use a SWOT
analysis to determine if the firm will be successful targeting a specific segment.

strategic fit

Strategic fit means that marketers should work to ensure that the target markets selected
fit with what the organization is and wants to be as defined in its mission statement.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-114
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McGraw-Hill Education.
106. The major advantage of a(n) _______ targeting strategy is the potential savings in
developing and marketing the product.

undifferentiated

An undifferentiated targeting strategy approaches the marketplace as one large segment.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

107. A company that sells beef sandwiches across the country makes the sandwich with green
chilies and jalape–os in the Southwestern states, but makes it with green peppers in the
Northeastern states. This is an example of a(n) _______ targeting strategy.

differentiated

Differentiated targeting occurs when an organization simultaneously pursues several


different market segments, usually with a different strategy for each.

AACSB: Reflective Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-115
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McGraw-Hill Education.
108. Consumers of _______ marketing products typically have very specialized needs and will
pay higher prices to meet those needs.

niche

Niche marketing involves targeting a large share of a small market segment.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

109. The ethical implications of targeting some market segments can be seen when marketers
at Abercrombie and Fitch began marketing clothes with sexualized characteristics to
_______.

tweens

Regardless of what target marketing strategy firms use, they must keep in mind the
growing ethical concerns around targeting some market segments, in particular children,
non-native language speakers, and the elderly.

AACSB: Ethics
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-07 Summarize the ethical issues in target marketing.
Topic: Ethical Issues in Target Marketing

7-116
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McGraw-Hill Education.
110. _______ assumes that consumers compare goods and services on the basis of benefits.

Positioning

Positioning refers to the activities a firm undertakes to create a certain perception of its
product in the eyes of the target market.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

111. A _______ is a competitive analysis tool that creates a visual picture of where products are
located in consumers' minds.

perceptual map

A perceptual map provides a valuable tool for understanding competitor positions in the
marketplace.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-117
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McGraw-Hill Education.
112. The second step in deciding how to best position a product is to clearly define the firm's
_______.

competitive advantage

Great marketers understand competitive advantage and why consumers buy their firm's
goods and services. If a marketer cannot clearly establish why a consumer should buy a
product, then that product may not realize its full potential.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

113. Consumer tastes for everything change from time to time, which is why it is important to
evaluate customer _______ when deciding how to best position a product.

feedback

The third step in market positioning is constantly evaluating consumer feedback.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-118
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McGraw-Hill Education.
114. A succinct description of the core target market to which a product is directed and a
compelling picture of how the firm wants that core market to view the product is referred
to as a _______.

positioning statement

A successful positioning statement should clearly reflect the steps of the positioning
process, including the competitive advantages of the product.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

115. _______ typically involves changing one or more marketing mix elements, often product or
promotion.

Repositioning

Repositioning is the act of reestablishing a product's position to respond to changes in the


marketplace.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

True / False Questions

7-119
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McGraw-Hill Education.
116. The process of dividing a larger market into smaller groups based on meaningfully shared
characteristics is called positioning.

FALSE

Market segmentation is the process of dividing a larger market into smaller groups based
on meaningfully shared characteristics.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

117. Market segmentation helps firms decide how to allocate their marketing resources in a
way that maximizes profit.

TRUE

By understanding the needs and wants of its market segment, marketers are able to
funnel resources toward more profitable markets.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain the importance of effective market segmentation.
Topic: Market Segmentation

7-120
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McGraw-Hill Education.
118. The four broad segmentation bases that marketers use to divide the market into segments
are: substantial, measurable, differentiable, and accessible.

FALSE

The broad bases used in segmenting a market are demographic, geographic,


psychographic and behavioral. To be effective, however, segmentation should create
markets that are substantial, measurable, differentiable, accessible, and actionable.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

119. Marketers particularly target younger consumers because compared to the rest of the
population, they typically have more time and money.

FALSE

Older consumers typically have more time and money than younger consumers and firms
that develop marketing strategies for products geared to this age group have found
success appealing to older market segments.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-121
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McGraw-Hill Education.
120. Consumers who have between $100,000 and $250,000 in investable assets are termed
mass affluent and are one of the fastest growing segments in the United States.

TRUE

Income affects consumers' ability to buy goods and services and provides marketers with
a valuable segmentation tool. Mass affluents are one of the fastest growing segments in
the United States.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

121. Market size, customer lifestyles, and population shifts are all important geographic
segmentation tools.

FALSE

Market size and population shifts are geographic segmentation tools, but customer
lifestyles are a psychographic segmentation tool.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-122
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McGraw-Hill Education.
122. The 2010 Census showed that the only southern state that lost seats in the House of
Representatives was Louisiana.

TRUE

It is important for marketers to research patterns of consumer movement to understand


why and where they are moving. Louisiana's largest city, New Orleans, lost 29 percent of
its residents in the years following Hurricane Katrina.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

123. When marketers segment based on psychographics, the market is divided into groups
according to the reason the consumer made the purchase.

TRUE

Consumers may purchase a new Mercedes automobile for a variety of reasons. One
segment of consumers may buy a Mercedes for the status that a luxury car will provide
them. A different segment may buy the car because of its superior safety features. This is
an example of psychographics.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-123
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
124. The two dimensions of the VALS framework, needs and wants, helps to explain why
different consumer groups exhibit different behaviors, and why different consumer groups
often exhibit the same behaviors for different reasons.

FALSE

The two dimensions of the VALS framework are primary motivation and resources.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

125. Psychographic segmentation involves categorizing customers based on what they actually
do with their goods and services.

FALSE

Behavioral segmentation involves categorizing customers based on what they actually do


with their goods and services.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

7-124
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
126. Behavioral segmentation is often the most difficult of the four segmentation bases to use.

TRUE

The marketing research required to track and understand how consumers behave with a
certain product is very expensive and time-consuming, making behavioral segmentation
one of the most difficult of the four bases to use.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: Segmentation Bases

127. Social media outlets like Facebook are not generally helpful in segmenting markets
because of the wide variety of people who utilize this type of technology.

FALSE

Social media can be especially effective in market segmentation strategies. By segmenting


the market by those who are active on social media, companies can, with minimal financial
responsibility, engage and interact personally through individualized social media channels
such as Facebook and Twitter with a larger and more diverse consumer base.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Describe the four bases for segmenting markets.
Topic: The Role of Social Media in Market Segmentation

7-125
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
128. Global segmentation usually results in market segments made up of young people, those
that have money to spend, or those with access to the Internet.

TRUE

Global segmentation is used when the firm can identify a group of consumers with
common needs and wants that spans the entire globe.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

129. Unique segmentation is used when the similarity in needs and wants only extends across
the region or several countries.

FALSE

Unique segmentation is used when the similarity in needs and wants exists in only one
country.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the elements of international market segmentation.
Topic: International Market Segmentation

7-126
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
130. One of the criteria for segmenting a market is that the market should be actionable,
meaning that a firm should be reasonably certain that its marketing mix can inform
consumers about the product, how it adds value to the consumer, and ultimately how to
purchase it.

TRUE

For a segment to be actionable, marketers should be able to develop strategies that can
attract certain market segments to their firms' goods and services.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss the criteria for successful market segmentation.
Topic: Criteria for Effective Market Segmentation

131. Firms should consider three important factors during the targeting process: growth
potential, level of competition and strategic fit.

TRUE

Selecting an appropriate target market is crucial to a successful marketing strategy. Firms


should take into consideration growth potential, level of competition, and strategic fit
when selecting a target market.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Describe the strategies for selecting target markets.
Topic: Selecting Target Markets

7-127
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
132. In an undifferentiated targeting strategy, a firm can approach all consumers with the same
product offering and marketing mix.

TRUE

An undifferentiated targeting strategy approaches the marketplace as one large segment.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

133. The major advantage of a differentiated targeting strategy is the potential savings in
developing and marketing the product.

FALSE

The potential savings in developing and marketing the product is the major advantage of
an undifferentiated targeting strategy.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Compare the most common target marketing strategies.
Topic: Target Marketing Strategies

7-128
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
134. Regardless of what target marketing strategy firms use, they must keep in mind the
growing ethical concerns around targeting some market segments, in particular children,
non-native language speakers, and the elderly.

TRUE

Several grassroots organizations have been formed to promote ethical marketing to


children, and marketers should consider the ethical implications of any target marketing
strategies they implement.

AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Summarize the ethical issues in target marketing.
Topic: Ethical Issues in Target Marketing

135. As it relates to marketing, segmenting and positioning are essentially the same thing.

FALSE

Segmenting involves dividing a larger market into smaller segments, while positioning
attempts to create a certain perception of a product in the eyes of the target market.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-129
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
136. A perceptual map is a competitive analysis tool that creates a visual picture of where
products are located in consumer's minds.

TRUE

A perceptual map provides a valuable tool for understanding competitor positions in the
marketplace. Marketers can develop a perceptual map based on marketing research or
from their knowledge about a specific market.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

137. A firm that uses a price/quality relationship to highlight its competitive advantage will
negotiate discounts from wholesalers and keep distribution costs low so it can pass the
savings on to its customers.

TRUE

Walmart is a great example of a low-cost retailer that has successfully positioned itself
using a price/quality relationship strategy.

AACSB: Reflective Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-130
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
138. Firms can choose to promote one or multiple competitive advantages, as long as they can
clearly articulate those advantages to their target market.

TRUE

If a marketer cannot clearly establish why a consumer should buy the product, the product
may not realize its full potential.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

139. A successful positioning statement should include the competitive advantages of the
product.

TRUE

A positioning statement consists of a succinct description of the core target market to


which a product is directed and a compelling picture of how the firm wants that core
market to view the product. A successful positioning statement should include the
competitive advantages of the product.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-131
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
140. Repositioning refers to re-segmenting a target market that failed to produce enough
buyers for a product.

FALSE

Repositioning is the act of reestablishing a product's position to respond to changes in the


marketplace.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-08 Outline the three steps of effective market positioning and explain why firms may choose to
use repositioning strategies.
Topic: Market Positioning

7-132
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of My dog and I
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.

Title: My dog and I


Being a concise treatise of the various breeds of dogs, their
origins and uses. Written expressly for the novice,
containing a comprehensive mode of treatment both in
health and sickness, together with the names of some
prominent breeders.

Author: Harry Woodworth Huntington

Illustrator: Neville Cain

Release date: February 26, 2024 [eBook #73034]

Language: English

Original publication: New York: The Caxton Press, 1897

Credits: Sonya Schermann and the Online Distributed Proofreading


Team at https://www.pgdp.net (This file was produced from
images generously made available by The Internet Archive)

*** START OF THE PROJECT GUTENBERG EBOOK MY DOG


AND I ***
MY DOG AND I.
Reproductions of any of the Half-Tones of dogs published in “My
Dog and I,” printed on finest woodcut paper (9½ × 12½) especially
for framing, will be sent to any address on receipt of price, 25c.
each.
H. W. Huntington,
5 West Thirty-Ninth Street,
New York City.

MY DOG AND I
BEING A CONCISE TREATISE OF THE VARIOUS BREEDS OF
DOGS
THEIR ORIGINS AND USES. WRITTEN EXPRESSLY
FOR THE NOVICE

CONTAINING A COMPREHENSIVE MODE OF


TREATMENT BOTH IN HEALTH AND SICKNESS
TOGETHER WITH THE
NAMES OF SOME PROMINENT BREEDERS

BY
H. W. HUNTINGTON
PRESIDENT OF THE NATIONAL GREYHOUND CLUB OF AMERICA
ILLUSTRATED WITH HALF-TONES OF TYPICAL DOGS
ORIGINAL MARGINAL ILLUSTRATIONS BY
MR. NEVILLE CAIN, CLARENCEVILLE, L.I.

NEW YORK
PUBLISHED BY THE CAXTON PRESS
1897

Copyright, 1897, by
H. W. Huntington.

THE NEW YORK TYPE-SETTING COMPANY.


CONTENTS.
PAGE
Preface 7
Bulldog
English 9
French 11
Chesapeake Bay Dog 12
Collie
Rough-coated 14
Smooth-coated 16
Dalmatian (Coach-dog) 17
Great Dane 19
Hound
Basset 21
Beagle 23
Bloodhound 25
Dachshund 27
Deerhound 29
Foxhound (American) 31
Foxhound (English) 32
Greyhound (English) 34
Harrier 36
Greyhound (Italian) 37
Otterhound 39
Wolfhound (Irish) 41
Wolfhound (Russian) 43
Mastiff 45
Mexican Hairless 48
Newfoundland 49
Pointer 51
Pomeranian 53
Poodle
Black, curly-coated 55
Black, corded 57
White-and-red 57
Pug
Fawn 58
Black 59
Retriever
Black, curly-coated 60
Black, flat- or wavy-coated 62
St. Bernard
Rough-coated 64
Smooth-coated 66
Schipperke 67
Setter
English 69
Gordon 71
Irish 73
Sheep-dog (Old English or Bobtail) 75
Spaniel
Blenheim 90
Clumber 77
Cocker 79
Field 81
Irish Water- 83
Japanese 85
King Charles 91
Prince Charles 89
Ruby 89
Sussex 87
Terrier
Airedale 93
Bedlington 95
Black-and-tan 97
Boston 99
Bull 101
Clydesdale 103
Dandie Dinmont 105
Fox (Smooth-coated) 107
Fox (Wire-haired) 109
Irish 110
Maltese 112
Paisley 103
Scottish 113
Skye 115
Toy 116
Welsh 117
White English 119
Yorkshire 121
Whippet 123
Treatment of the Dog in Health 124
Treatment of the Dog in Sickness 130
Technical Terms 138
Breeders’ Directory 140
PREFACE.
Stonehenge, Shaw, and others have at various times written
exhaustive treatises on the dog, its care in health and sickness; and
while there is no question but that they are invaluable to the owners
of large kennels, I consider that they are too complex for the novice
who owns but one or two dogs. They use very largely technical
terms not thoroughly understood by the layman, while certain
treatments prescribed are quite impracticable except where one has
a kennel-man. Besides, I think not one of the above-named writers
has ever told the novice what to avoid in selecting a puppy or a
grown dog, or what good points to insist upon. Recognizing all these
facts, and recalling how I strove twenty years ago to find some work
that would aid me in my search for knowledge of the dog, I have
concluded to write a short treatise concerning its origin, uses, and all
things pertaining to it, that will aid the reader in learning its good
points, and bad ones too, the proper scale of “points” that go to
make up the perfect specimen, the treatment in health and sickness,
and such other data as may be of value to him. Experience as a
successful breeder and owner, and having won many prizes largely
through “condition,” confirms me in the belief that I may perhaps be
able to help a fancier in purchasing the proper kind of dog, or, if he
already has one, to aid him in keeping it in health, to know its value,
and how to properly show it (if he is so inclined), so that its faults
may be hidden to the greatest degree, while its good points may
become more pronounced.
Perfection does not exist in either man or beast, so we will strive to
select that specimen which has the fewest and least noticeable
faults, remembering always that in the large breeds there are ten
good little ones where there is one good large one.
If this work shall have aided any lover of the dog in any direction
desired, it shall have done its work. If it shall have failed, the public
will surely be lenient in its criticism of
The Author.
THE BULLDOG (ENGLISH).

Beaver Brook Kennels, Danvers, Mass.

Beaver Brook Sultan (formerly Rustic Sultan).

Origin.—As bull-baiting existed as far back as 1209, the bulldog


must have then existed, but its origin is unknown.
Uses.—Formerly for baiting bulls, but of late years, since this
“sport” has ceased to be indulged in, it is simply kept as a watchdog
and for exhibition.
* Scale of Points, Etc.
Value.
General appearance 10
Skull 15
Stop 5
Eyes 5
Ears 5
Face 5
Chops 5
Mouth 5
Neck and chest 5
Shoulders 5
Body 5
Back 5
Tail 5
Fore legs and feet 5
Hind legs and feet 5
Size 5
Coat 5
Total 100
Note.—An asterisk denotes that the “scale of points, etc.,”
given are those adopted by the Specialty Club of that particular
breed; the other “scale of points, etc.,” are from “Dogs of the
British Isles” and Mr. Rawdon B. Lee.
General Appearance.—The general
appearance of the bulldog is that of a smooth-
coated, thick-set, broad, powerful, and compact dog.
Head massive, large in proportion to its size; face
extremely short; muzzle broad, blunt, and inclined
upward. Body short and well knit; limbs stout and
muscular; hind quarters very high and strong, but
lightly made in comparison with its heavy fore parts. The dog should
convey the impression of determination, strength, and activity.
Head.—Very large, the larger the better; forehead
flat, and skin about the head very loose, hanging in
large wrinkles; frontal bones very prominent, broad,
square, and high, causing a deep, wide groove
between the eyes, called the stop, which should be
broad and deep and extend up the middle of the
forehead. Eyes set low in skull, as far from the ears as possible,
round, very dark, almost black, and showing no white when looking
forward. Ears set high, small and thin, “rose-ear” preferred. Face
short as possible, with skin deeply wrinkled; muzzle short, broad,
turned upward, and very deep from corner of eye to corner of mouth.
Nose very large, broad, and black, deeply set back, almost between
the eyes; nostrils large, wide, and black, with well-defined straight
line between them. Flews thick, broad, pendent, and very deep,
hanging over lower jaw at sides (not in front). Teeth should show
when mouth is closed; jaw broad, massive, square, and tusks wide
apart; lower jaw projects in front of upper, and turns up, with six
small front teeth between tusks in an even row. Teeth strong and
large.
Neck.—Very deep, thick, and strong, well arched,
with much loose skin at throat.
Shoulders.—Deep, broad, slanting, and
muscular; chest wide and deep.
Back.—Short and strong, very broad at shoulders, comparatively
narrow at loins, and forming the “roach” or “wheel” back.
Body.—Well ribbed, round, deep, with belly well tucked up.
Tail.—Set on low, jutting out, and then turned downward, free
from fringe or coarse hair, rather short than long, thick at root, but
tapering to a fine point carried downward, and the dog should not be
able to raise it above the back.
Fore Legs.—Wide apart, very stout, strong, and straight; pasterns
short, straight, and strong; fore feet straight; toes compact and thick;
knuckles prominent and high.
Hind Legs.—Large, muscular, longer in proportion than fore legs;
hocks slightly bent; lower part of legs short.
Coat.—Fine, short, close, and smooth.
Stifles.—Round, turned outward. On account of
formation the dog walks with quick, short step,
apparently skimming the ground.
Colors (in order of merit).—If bright and pure of
its sort, 1st, brindles, reds, white, with their varieties,
as whole fawns, fallows, etc.; 2d, pied and mixed
colors.
Weight.—Fifty pounds.
THE BULLDOG (FRENCH).

G. N. Phelps’s, 20 Tremont Street, Boston, Mass.

Monsieur Boulot.

Origin.—Nothing definite can be learned of this breed of dogs.


Many exhibitors claim that it is little else than a diminutive English
bulldog, bred originally in Brussels and later (about 1860) in France,
with the exception that it has prick-ears and generally carries them
erect, as that term indicates. Its weight should not be over 24
pounds, the lighter the better. In France the breed is fast becoming
very popular among the haut ton, and promises to be well received
here. As yet there is neither a scale of points for judging nor a club to
foster the breed, so the reader will be obliged to consult the picture
of Mr. G. N. Phelps’s winning dog, Monsieur Boulot, in order to form
a correct idea as to its outline, etc. Its exceeding intelligence is
greatly in favor of its becoming a popular breed of pet dogs. The
extreme difficulty attending its breeding and rearing precludes the
possibility of it ever becoming common. At present even ordinary
specimens are held at long prices.
THE CHESAPEAKE BAY DOG.

Robt. Millbank’s, 154 West Forty-eighth Street, New York.

Pride.

Origin.—Not known positively, but probably a


cross between the two Labrador dogs that swam
ashore from a sinking ship in Chesapeake Bay and
the English water-spaniel.
Uses.—Retrieving wild fowl from the water. There
are three classes of these dogs: the otter, tawny,
sedge-colored, with very short hair; the curly-haired
and the straight-haired, each red brown; a white spot is not unusual.
* Scale of Points, Etc.
Value.
Head 15
Neck 5
Shoulders 10
Chest 15
Size 5
Loins 10
Coat 15
Tail 5
Feet 10
Legs 10
Total 100
Weight.—Dogs, 80 pounds; bitches, 65 pounds.
Height.—About 25 inches in dogs; 23 inches in
bitches.
Measurements are as follows:
from fore toe to top of back, 25
inches; tip of nose to base of head,
10 inches; girth of body, 33 inches; breast, 9 inches;
around fore foot, 6 inches; around forearm below
shoulder, 7 inches; between eyes, 2¼ inches; length
of ears, 5 inches; from occiput to root of tail, 35
inches; tail, 16 inches long; around muzzle below eyes, 10 inches.
The Standard says nothing as to
the dog’s conformation. The
illustration, therefore, must be the
guide.
THE COLLIE (ROUGH-COATED).

J. Pierpont Morgan’s, New York.

Rufford Ormonde.

Origin.—It is among the oldest of known breeds of dogs, and


probably came from India. Buffon, the great writer, considers it the
parent of all dogs.
Uses.—Attending flocks of sheep and herds of
cattle.
* Scale of Points, Etc.
Value.
Head and expression 15
Ears 10

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