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CHAPTER 8: MASTER TEST BANK
MARKET SEGMENTATION, TARGETING, AND POSITIONING
Test Item Table by Major Section of the Chapter and Bloom’s Level of Learning
Bloom’s Level of Learning (LL)

Major Section Level 1 Level 2 Level 3
of the Chapter Knowledge Comprehension Application
(Knows Basic (Understands Concepts (Applies Principles)
Terms & Facts) & Principles)
Chapter 1, 2, 3, 4, 5, 6, 7
Opener:
Zappos.com
(pp. 172-173)
Why Segment 8, 9, 19, 20, 23, 24, 10, 11, 12, 13, 14, 15, 16, 21, 22, 17, 18, 26, 27, 28, 41, 42, 43,
Markets? 36, 37, 38, 39, 40, 25, 29, 30, 31, 32, 33, 34, 35, 44, 59, 60, 62, 63, 64, 65, 66, 68,
67, 75, 77, 78, 81, 45, 46, 47, 48, 49, 50, 51, 52, 53, 69, 70, 71, 72, 73, 74, 76, 84
(pp. 174-177) 85 54, 55, 56, 57, 58, 61, 79, 80, 82,
83, 86, 87, 88, 243, 244
246, 247, 248, 249, 250
Steps in 112, 118, 127, 133, 89, 90, 91, 92, 93, 94, 95, 96, 97, 105, 106, 115, 116, 117, 120,
Segmenting and 146, 147, 150, 154, 98, 99, 100, 101, 102, 103, 104, 121, 122, 123, 124, 125, 130,
177, 178, 179, 206 107, 108, 109, 110, 111, 113, 114, 139, 140, 141, 142, 143, 144,
Targeting
119, 126, 128, 129, 131, 132, 134, 145, 148, 156, 160, 161, 162,
Markets 135, 136, 137, 138, 149, 151, 152, 170, 171, 172, 175, 176, 187,
(pp. 178-188) 153, 155, 157, 158, 159, 163, 164, 188, 189, 190, 199, 200, 201,
165, 166, 167, 168, 169, 173, 174, 202, 203, 204, 208, 209, 210,
180, 181, 182, 183, 184, 185, 186, 211
191, 192, 193, 194, 195, 196, 197, 253, 255
198, 205, 207, 212, 213, 214, 245
251, 252, 254, 256, 257, 258, 259,
260
Positioning the 215, 216, 217, 218, 1, 223, 226, 229, 233, 234, 235, 219, 220, 224, 227, 228, 241,
Product 221, 222, 225, 230, 236, 237, 238, 239, 240 242
231, 232 262 261
(pp. 188-190)
Video Case 8: 243, 244, 245
Prince Sports
(pp. 191-193)
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Test Item Table by Learning Objective and Bloom’s Level of Learning
Bloom’s Level of Learning (LL)

Learning Objective Level 1 Level 2 Level 3
(LO) Knowledge Comprehension Application
(Knows Basic Terms (Understands Concepts (Applies
& Facts) & Principles) Principles)
LO1 Explain what market 8, 9, 19, 20, 23, 24, 36, 3, 4, 5, 6, 7, 10, 11, 12, 13, 17, 18, 26, 27, 28,
segmentation is and 37, 38, 39, 40, 67, 75, 14, 15, 16, 21, 22, 25, 29, 41, 42, 43, 59, 60,
when to use it. 77, 78, 81, 85 30, 31, 32, 33, 34, 35, 44, 62, 63, 64, 65, 66,
45, 46, 47, 48, 49, 50, 51, 68, 69, 70, 71, 72,
(pp. 174-177) 52, 53, 54, 55, 56, 57, 58, 73, 74, 76, 84
61, 79, 80, 82, 83, 86, 87,
88, 243, 244
246, 247, 248, 249, 250
LO2 Identify the five steps 89, 90, 91, 92, 93, 94, 95, 105, 106
involved in segmenting 96, 97, 98, 99, 100, 101, 253
and targeting markets. 102, 103, 104
(p. 178) 251, 252
LO3 Recognize the bases 112, 118, 127, 133, 107, 108, 109, 110, 111, 115, 116, 117, 120,
used to segment 146, 147, 150, 154 113, 114, 119, 126, 128, 121, 122, 123, 124,
consumer and 129, 131, 132, 134, 135, 125, 130, 139, 140,
organizational 136, 137, 138, 149, 151, 141, 142, 143, 144,
(business) markets. 152, 153, 155, 157, 158, 145, 148, 156, 160,
159, 163, 164, 165, 166, 161, 162, 170, 171,
(pp. 179-183) 167, 168, 169, 173, 174, 172, 175, 176
245 255
254, 256, 257
LO4 Develop a market- 177, 178, 179, 206 2, 180, 181, 182, 183, 184, 187, 188, 189, 190,
product grid to 185, 186, 191, 192, 193, 199, 200, 201, 202,
identify a target 194, 195, 196, 197, 198, 203, 204, 208, 209,
market and 205, 207, 212, 213, 214 210, 211
recommend resulting 258, 259, 260
actions.
(pp. 183-188)
LO5 Explain how 215, 216, 217, 218, 1, 223, 226, 229, 233, 234, 219, 220, 224, 227,
marketing managers 221, 222, 225, 230, 235, 236, 237, 238, 239, 228, 241, 242
position products in 231, 232 240 261
the marketplace. 262
(pp. 188-190)
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
MULTIPLE CHOICE QUESTIONS
8-1 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION
The company name Zappos was chosen because it

a. was the founder’s family name.
b. conveyed in Spanish the type of product sold.
c. inferred how quickly you could purchase the product.
d. contained letters from the names of the three founders.
e. reflected the brand name of the first line of shoes they sold.
Answer: b Page(s): 173 LO: 5 AACSB: Analytic QD: Medium

Rationale: The company name is derived from the Spanish word zapatos, which means shoes.
The primary focus of Zappos’ market segmentation strategy is to sell

a. a wide selection of shoes, clothes, accessories, and housewares to people who will buy them
online.
b. a wide selection of leather shoes and boots to retailers.
c. all types of shoes, accessories, and clothing to department stores.
d. Spanish novelties and accessories to organizations.
e. shoes in its own retail stores.
Answer: a Page(s): 173 LO: 4 AACSB: Analytic QD: Medium

Rationale: Hsieh, Lin, and founder Nick Swinmurn have given Zappos a clear, specific market
segmentation strategy: sell a huge selection of shoes, clothes, accessories, and housewares to
people who will buy them online.
According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to
a. seeking out new and unusual styles of shoes from all over the world.
b. improving the website to make it faster, more interesting, and fun.
c. seeking out new markets that will go beyond the Internet.
d. finding the fastest and least expensive modes of delivery for its products.
e. finding ways to improve customer-service levels.
Answer: e Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

Rationale: Asked about Zappos, Tony Hsieh says, “We try to spend most of our time on stuff
that will improve customer-service levels.” This customer service obsession for its market
segment of online customers means that all new Zappos employees—whether the chief financial
officer or children’s footwear buyer—go through four weeks of customer-loyalty training.
-3-
Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who

a. identifies a completely new market segment with a product to match it.
b. finds a way of improving service to online customers.
c. takes the customer loyalty training class and decides to quit anyway.
d. finds a shoe-related product that Zappos does not already carry.
e. creates a humorous theme for one of the monthly company meetings.
Answer: c Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

Rationale: Hsieh offers $2,000 to anyone who wants to leave Zappos after completing the
training. The theory: If you take the money and run, you’re not right for Zappos. Few take the
money!
Which of the following statements about Zappos is most accurate?

a. Zappos limits its inventory to a selection of high-end fashion footwear.
b. Zappos carries more than 1,000 different brands.
c. Zappos can guarantee overnight shipping to all its customers because they know ahead of
time what they will be charged for express service.
d. Zappos is so successful because it has chosen a single mission to “sell shoes and nothing
else.”
e. Zappos offers a 30/60/90 return policy whereby refunds are based on how long you’ve had
the shoes.

Rationale: The choices for its online customers are staggering. Zappos carries more than 1,000
different brands. Recently, Zappos has added lines of clothes, accessories, and housewares.
The Zappos segmentation strategy is based on

a. offering the best selection of shoes and the best service to online shoppers.
b. designing shoes for every type of occasion.
c. dividing all their customers into two distinct segments: people shopping for low price and
people shopping for style.
d. offering the best selection of shoes through multiple channels of distribution.
e. maintaining the simplest method of price points to make the purchase process as simple as
possible for its customers.

Rationale: Zappos.com has a clear, specific market segmentation strategy: Offer a huge selection
of shoes to people who will buy them online. Recently Zappos.com has added lines of clothes,
accessories, beauty aids, and housewares. This focus on the segment of online buyers generates
over $1 billion in sales annually.
-4-
Building open and honest relationships with communication is an example of Zappos’

__________.
a. profile for its target market
b. core values being adapted from its new owner, Amazon.com
c. ten core values for Zappos’ culture
d. qualities required of Zappos’ suppliers
e. qualities required of Zappos’ retailers

Rationale: Ten “core values” are the foundation for the Zappos culture, brand, and business
strategies. These include: deliver WOW through service, create fun and a little weirdness, and
build open and honest relationships with communication, just to name a few.
8-8 MARKET SEGMENTATION KNOWLEDGE
Aggregating prospective buyers into groups that have common needs and will respond similarly
to a marketing action is referred to as
a. consumer differentiation.
b. psychographics.
c. market segmentation.
d. market delineation.
e. aggregation marketing.
Answer: c Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

Rationale: Key term definition—market segmentation.
8-9 MARKET SEGMENTATION KNOWLEDGE
Market segmentation refers to

a. the philosophy that to do a truly excellent job of marketing, a company should concentrate
only one customer segment at a time.
b. sorting prospective buyers into groups that are willing (or not) to pay more than the cost of
production for a good or service.
c. disaggregating prospective buyers from groups into segments of one (individuals) and
creating specific products that will satisfy each individual’s unique needs.
d. aggregating prospective buyers into groups that have common needs and will respond
similarly to a marketing action.
e. the belief that it is possible to satisfy every customer’s needs if you can identify the correct
segment within which they belong.
Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

Rationale: Key term definition—market segmentation.
8-10 MARKET SEGMENTATION COMPREHENSION
-5-
A basic test of the usefulness of the market segmentation process is whether it leads to tangible
marketing actions that can
a. increase sales and profitability.
b. stand up to legal scrutiny.
c. be socially responsible.
d. create sustainable demand.
e. create product differentiation.

Rationale: A basic test of the usefulness of the segmentation process is whether it leads to
tangible marketing actions that can increase sales and profitability.
Market segmentation involves aggregating prospective buyers into groups that have common
needs and will
a. pay attention to marketing messages.
b. respond similarly to a marketing action.
c. be responsive to marketing research.
d. use the same payment methods.
e. comply with the organization’s core values.

Rationale: Market segmentation involves aggregating prospective buyers into groups, or
segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Market segmentation involves aggregating prospective buyers into groups that (1) __________
and (2) will respond similarly to a marketing action.
a. respond similarly to marketing messages
b. have similar shopping styles
c. will become loyal customers
d. have common needs
e. will become stakeholders of the organization
Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

Market segmentation involves aggregating prospective buyers into groups that (1) will respond
similarly to a marketing action and (2)
a. respond similarly to marketing messages.
b. have common needs.
c. have similar shopping styles.
d. will become loyal customers.
-6-
e. will become stakeholders of the organization.

The aggregation of prospective buyers into groups that (1) have common needs and (2) will
respond similarly to a marketing action is referred to as __________.
a. market diversification
b. market differentiation
c. market segmentation
d. market augmentation
e. market repositioning

To be identified as a market segment, its members must

a. represent a large share of the entire market and have buying power.
b. have common needs and respond similarly to a marketing action.
c. have different needs and have potential for future growth.
d. have different needs and respond similarly to market actions.
e. have the potential for future growth and increased profit or ROI.

Market segmentation stresses __________ and relating them to specific marketing actions.
a. grouping people randomly within a market
b. grouping people according to similar needs
c. splitting people randomly within a market
d. dividing people into the smallest groups possible
e. identifying potential new buyers who are not yet familiar with a new product

Rationale: Market segmentation first stresses the importance of grouping people or organizations
in a market according to the similarity of their needs and the benefits they are looking for in
making a purchase. Second, such needs and benefits must be related to specific marketing
actions the organization can take.
-7-
8-17 MARKET SEGMENTATION APPLICATION
Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes
designed to satisfy the needs of different specific groups of customers. This strategy is an
example of
a. market segmentation.
b. mass customization.
c. customized manufacturing.
d. single chain marketing.
e. market specific selection.
Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Hard

Rationale: Market segmentation links market needs to an organization’s marketing program—
specific marketing mix actions that satisfy customers’ needs.
8-18 MARKET SEGMENTATION APPLICATION
New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for
those who want to “feel the trail.” Its 1260v2 shoe incorporates Stabilicore technology to
“deliver a plush, smooth, and stable ride.” And its Made in America, top of the line, 990
traditional running/walking shoe uses a “premium pigskin upper with mesh inserts for
breathability, a stability-enhancing ABZORB® midsole, and ENCAP to promote a healthy gait.”
This strategy is an example of
a. mass customization.
b. product segmentation.
c. market segmentation.
d. single chain marketing.
e. market specific selection.
Answer: c Page(s): 174 LO: 1 AACSB: Analytic QD: Hard

specific marketing mix actions to satisfy those needs. New Balance targets the specific needs of
particular segments of runners with its different types of shoes.
8-19 MARKET SEGMENTS KNOWLEDGE
Market segments refer to

a. the relatively heterogeneous groups of prospective buyers that result from the market
segmentation process.
b. all buyers of a product or service who have previously purchased a particular firm’s products
or services and who intend to repeat that purchase sometime in the future.
c. the smallest number of buyers that have similar needs but do not react similarly in a buying
situation.
d. the relatively homogenous groups of prospective buyers that result from the market
segmentation process.
e. all potential buyers of a product or service who intend to purchase a firm’s products or
services but who have not yet done so.

-8-
Rationale: Key term definition—market segment.
8-20 MARKET SEGMENTS KNOWLEDGE
The relatively homogenous group of prospective buyers that results from the market segmentation
process is referred to as a(n) __________.
a. market segment
b. target market
c. customer base
d. ultimate consumer
e. preferred customer
Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

Rationale: Key term definition—market segment.
8-21 MARKET SEGMENTS COMPREHENSION
The phrase “relatively homogeneous collections of prospective buyers” is most descriptive of

a. demographic clusters.
b. organizational buyers.
c. ultimate consumers.
d. market segments.
e. qualified prospects.

Rationale: Market segments are the relatively homogeneous groups of prospective buyers that
result from the market segmentation process.
8-22 MARKET SEGMENTS COMPREHENSION
In marketing, each __________ consists of people who are relatively similar to each other in
terms of their consumption behavior.
a. market segment
b. demographic cluster
c. organizational buyer group
d. ultimate consumer group
e. qualified prospect group

Rationale: Market segments are the relatively homogeneous groups of prospective buyers that
result from the market segmentation process. Each market segment consists of people who are
relatively similar to each other in terms of their consumption behavior.
8-23 PRODUCT DIFFERENTIATION KNOWLEDGE
-9-
A marketing strategy that involves a firm using different marketing mix activities to help
consumers perceive the product as being different and better than competing products is referred
to as __________.
a. product repositioning
b. points of difference
c. market differentiation
d. product positioning
e. product differentiation
Answer: e Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

Rationale: Key term definition—product differentiation.
8-24 PRODUCT DIFFERENTIATION KNOWLEDGE
Product differentiation refers to

a. a good, service, or idea consisting of a bundle of tangible and intangible attributes that
satisfies consumers’ needs.
b. the unique combination of product benefits received by targeted buyers.
c. those characteristics of a product that make it superior to competitive substitutes.
d. a marketing strategy that involves a firm using different marketing mix activities to help
consumers perceive the product as being different and better than competing products.
e. the legal requirement that requires a specified degree of distinction between products to
ensure an organization’s intellectual property rights.

8-25 PRODUCT DIFFERENTIATION COMPREHENSION
Which strategy involves a firm’s using different marketing mix activities to help consumers
perceive the product as being different and better than competing products?
a. points of difference
b. market differentiation
c. product differentiation
d. market penetration
e. product positioning

8-26 PRODUCT DIFFERENTIATION APPLICATION
Apple’s iPhone has a feature known as Siri that lets you use your voice to send messages, make
calls, set reminders, and ask questions. This feature sets the smartphone apart from its
competitors and thus provides
a. product segmentation.
b. market expansion.
c. product differentiation.
- 10 -
d. usage segmentation.
e. psychographic segmentation.

Rationale: Product differentiation involves a firm’s using different marketing mix activities, such
as product features and advertising, to help consumers perceive the product as being different and
better than competing products. In the case of Apple, Siri helps consumers to perceive the iPhone
as different and better than competing products from Samsung, HTC, etc.
When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended
for use by children and was therefore given a child-appealing bubblegum flavor. Sometime later,
the same basic formula was given a fresh, minty flavor to appeal to adults. What marketing
strategy did P&G use in this example?
a. product segmentation
b. market expansion
d. usage segmentation
e. psychographic segmentation

better than competing products. In the case of Crest, the change of flavor (a product feature)
helped consumers to perceive the product as different as and better than competing products.
Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the
stomach. Today, you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer
Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each
Alka-Seltzer product has a different formulation to relieve a specific malady which makes them
more specialized than competing products. The maker of Alka-Seltzer is using
a. product segmentation.
b. market sectioning.
c. product differentiation.
d. product segmentation.
e. product base development.

better than competing products. Bayer, the maker of Alka-Seltzer, is selling four versions with
different product features to appeal to different market segments.
8-29 SEGMENTATION: LINKING NEEDS TO ACTIONS COMPREHENSION
- 11 -
The process of segmenting a market and selecting specific segments as targets is the link between
__________ and the organization’s marketing program.
a. self-regulatory industry standards
b. government regulations
c. top-level management
d. buyers’ or market needs
e. controllable environmental factors

Rationale: The process of segmenting and targeting markets links buyer or market needs to an
organization’s marketing program. See Figure 8-1 in the textbook.
The process of segmenting a market and selecting specific segments as targets is the link between
the various market needs and
a. industry standards.
b. government regulations.
c. top-level management.
d. controllable environmental factors.
e. the organization’s marketing program.

Rationale: Figure 8-1 in the textbook illustrates how the process of segmenting and targeting
markets links market needs to an organization’s marketing program.
Which of the following statements regarding market segmentation is most accurate?

a. Even if a firm finds only one potential market segment, it should take advantage of the
opportunity, no matter what.
b. Market segmentation only works for large corporations because small businesses don’t have
the resources to engage in the process or implement the resulting marketing actions.
c. Governments should not attempt market segmentation because there is no need for them to do
so.
d. If a business firm goes to the trouble and expense of segmenting its markets, it expects to
increase its sales and profits.
e. Market segmentation strategies work less than 25% of the time. However, for the instances
that it does work, the benefits more than compensate for previous failures.

Rationale: A business firm segments its markets so it can respond more effectively to the wants
of groups of potential buyers and thus increase its sales and profits.
- 12 -
Figure 8-1
In Figure 8-1 above, “A” represents which stage of the market segmentation process?
a. link needs to actions
b. identify market needs
c. establish a marketing protocol
d. execute marketing program actions
e. segment and select the target markets

specific marketing mix actions to satisfy those needs. The stages in the market segmentation
process are: (“A”) identify market needs; (“B”) link needs to actions; and (“C”) execute
marketing program actions.
In Figure 8-1 above, “B” represents which stage of the market segmentation process?

- 13 -
In Figure 8-1 above, “C” represents which stage of the market segmentation process?

8-35 ZAPPOS SEGMENTATION STRATEGY COMPREHENSION
Zappos’ original target market customers consisted of people who wanted all of the following
EXCEPT:
a. to receive quick delivery of their merchandise.
b. to buy sustainable shoes, accessories, and clothing.
c. to shop online in the convenience of their own homes.
d. to allow for free returns of goods if dissatisfied.
e. to have a wide selection of shoes.

Rationale: The Zappos.com target customer segment originally consisted of people who wanted
to (1) have a wide selection of shoes, (2) shop online in the convenience of their own homes, and
(3) receive quick delivery and allow free returns.
8-36 MARKET-PRODUCT GRID KNOWLEDGE
A framework to relate the market segments of potential buyers to products offered or potential
marketing actions by an organization is referred to as a __________.
a. payoff table
b. cross-tabulation
c. market-product grid
d. growth-share matrix
e. product differentiation table

Rationale: Key term definition—market-product grid.
A market-product grid refers to

a. a visual representation of all products offered within a specific product class.
- 14 -
b. a framework used to compare the relative market share of one firm’s product offerings to
those of its competitors.
c. a technique that seeks opportunities by finding the optimum balance between marketing
efficiencies versus R&D–manufacturing efficiencies.
d. a framework used to relate the market segments of potential buyers to products offered or
potential marketing actions by an organization.
e. a technique that helps a firm search for growth opportunities from among current and new
markets as well as current and new products.

Rationale: Key term definition—market-product grid.
A market-product grid is a framework to relate

a. total estimated expenses for each product sold to each market segment.
b. total anticipated revenue for each product-market segment combination.
c. total anticipated profit for each product sold to each market segment.
d. the market segments of potential buyers to relative market share compared to the closest
competitor.
e. the market segments of potential buyers to products offered or potential marketing actions by
an organization.

Rationale: A market-product grid is a framework to relate the market segments of potential
buyers to products offered or potential marketing actions by an organization.
A market-product grid is a framework to relate the __________ to products offered or potential

marketing actions by an organization.
a. market segments of potential buyers
b. marketing objectives of potential products
c. total anticipated revenue
d. total anticipated profit
e. market share of the closest competitor

A market-product grid is a framework to relate the market segments of potential buyers to

a. estimated expenses for products sold.
b. products offered or potential marketing actions by an organization.
c. total anticipated revenue.
d. total anticipated profit.
- 15 -
e. market share of the closest competitor.
Answer: b Page(s): 175 LO: 4 AACSB: Analytic QD: Easy

8-41 MARKET-PRODUCT GRID APPLICATION
To create a market-product grid for bed pillows, the most effective way to segment the market
would be using
a. the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older.
b. the sleeper’s annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over.
c. the sleeper’s gender: male or female.
d. the time of sleep: day or night.
e. how the sleeper sleeps: side, back, or stomach.
Answer: e Page(s): 175 LO: 1 AACSB: Analytic QD: Hard

buyers to products offered or potential marketing actions. The market-product grid for pillows
shows the different market segments for bed pillows—the side, back, and stomach sleepers—in
the horizontal rows. The product offerings—the pillows—appear in the vertical columns and are
based on three different pillow firmnesses. See Figure 8-2 in the textbook.
A market-product grid relates the market segments to the products offered or potential marketing
actions. With respect to pillows, the most effective way to segment the pillow market would be
based on __________.
a. the age of the sleeper: less than 18 years of age; 18 to 44 years of age; or 45 years and older
b. the sleeper’s annual income: less than $25,000; $25,000 to $49,999; or $50,000 and over
c. the sleeper’s gender: male or female
d. whether the sleeper has sleeping problems: yes or no
e. how the sleeper sleeps: side; back; or stomach

buyers to products offered or potential marketing actions. The market-product grid for pillows
shows the different market segments for bed pillows—the side, back, and stomach sleepers—in
the horizontal rows. The product offerings—the pillows—appear in the vertical columns and are
based on three different pillow firmnesses. See Figure 8-2 in the textbook.
An analysis of the pillow market using a market-product grid suggests that the most important
segment to target is
a. side sleepers.
b. sleepers with sleep disorders, such as sleep apnea.
c. sleepers with annual incomes of $50,000 and over.
- 16 -
d. back sleepers.
e. stomach sleepers.

Rationale: The market-product grid for pillows shows the different market segments for bed
pillows—the side, back, and stomach sleepers—in the horizontal rows. The product offerings—
the pillows—appear in the vertical columns and are based on three different pillow firmnesses.
Market research reveals the size of each sleeper segment, as shown by both the percentages and
circles in Figure 8-2. As Figure 8-2 shows, the side sleeper–firm pillow market-product segment
is almost three times larger (73 percent) than the combined sizes of the other two. Therefore,
meeting the needs of this segment is especially important to a pillow manufacturer. See Figure 8-
2 in the textbook.
Figure 8-2
Consider Figure 8-2 above. My Pillow uses infomercials and product demonstrations at events
such as state fairs to market its line of pillows that are guaranteed to be “the most comfortable
pillow you’ll ever own!” Its market research reveals the size of each sleeper segment, as shown
by both the percentages and circles. Which market-product combination should My Pillow
target?
a. stomach sleeper-firm pillow
b. back sleeper-medium pillow
c. side sleeper-firm pillow
d. stomach sleeper-soft pillow
e. side sleeper-soft pillow

Rationale: A market segmentation research study among users of pillows revealed the size of
each sleeper segment, which is shown in Figure 8-2. The sizes and percentages of the circles tells
pillow manufacturers the relative importance of each of the three market segments and three
pillow offerings in terms of their firmness level. The figure depicts the importance of the firm
pillow product targeted at the side sleeper market segment, which is almost three times the size of
- 17 -
the other two market-product combinations shown. Therefore, meeting the needs of this market
segment with the right pillow firmness is especially important.
8-45 WHEN/HOW TO SEGMENT MARKETS COMPREHENSION
Which of the following statements regarding market segmentation is most accurate?

a. Even if a firm finds only one potential market segment, it should take advantage of the
method to appear cutting-edge to competitors and customers.
b. Market segmentation only works for large corporations because small businesses don’t have
the resources to engage in the process or implement the resulting marketing actions.
c. Governments should not attempt market segmentation because the criteria are not applicable.
d. If a business firm goes to the trouble and expense of segmenting its markets, it expects to
increase its sales, profits, and return on investment.
e. Market segmentation strategies work less than 25 percent of the time. However, for the
instances that it does work, the benefits more than compensate for other failures.

Rationale: The process of segmenting a market and selecting specific segments as targets is the
link between the various buyers’ needs and the organization’s marketing program, as shown in
Figure 8-1. Market segmentation is only a means to an end: It leads to tangible marketing actions
that can increase sales and profitability.
The purpose of market segmentation is to respond more effectively to the wants of groups of
potential buyers in order to
a. maintain market share.
b. increase sales and profits.
c. assume social responsibility.
d. use the firm’s resources most efficiently.
e. provide the best quality products on the market.

Rationale: A business firm segments its markets so it can respond more effectively to the wants
of groups of potential buyers and thus increase sales and profits.
A business firm goes to the trouble and expense of segmenting its markets when
a. it changes its advertising campaign.
b. competitors enter the marketplace.
c. the environment becomes uncertain.
d. it expects that this will increase its sales, profit, and return on investment.
e. there is a recessionary economic environment.

Rationale: A business firm goes to the trouble and expense of segmenting its markets when it
expects that this will increase its sales, profit, and return on investment.
- 18 -
When expenses are greater than the potential increased sales from market segmentation, a firm
should
a. not consider market segmentation at this time.
b. combine departments within the company to make the process more streamlined.
c. reduce production costs or increase prices to facilitate the segmentation process.
d. seek alternate channels of distribution, including Internet sales.
e. discontinue manufacturing any products that are not in the mature stage of their product life
cycle.

expects that this will increase its sales, profit, and return on investment. When expenses are
greater than the potentially increased sales from segmentation, a firm should not attempt to
segment its market.
Market segmentation helps business firms to respond more effectively to the wants of groups of
potential buyers in order to
a. maintain market share.
b. increase sales and profits.
c. assume social responsibility.
d. use the firm’s resources most efficiently.
e. provide the best quality products on the market.

expects that this will increase its sales, profit, and return on investment. When expenses are
greater than the potentially increased sales from segmentation, a firm should not attempt to
segment its market.
8-50 MARKET SEGMENTATION STRATEGIES COMPREHENSION
All of the following are market segmentation strategies EXCEPT:

a. build-to-order.
b. multiple products, multiple market segments.
c. one product, multiple market segments.
d. multiple products, one segment.
e. mass customization.
Answer: d Page(s): 175-177 LO: 1 AACSB: Analytic QD: Medium

Rationale: The segmentation strategies are (1) one product and multiple market segments, (2)
multiple products and multiple market segments, and (3) segments of one, or mass customization,
which is the next step beyond build-to-order (BTO)—manufacturing a product only when there is
- 19 -
an order from a customer. The multiple products, one segment would be a product differentiation
strategy.
8-51 ONE PRODUCT, MULTIPLE MARKET SEGMENTS COMPREHENSION
When a firm produces only a single product or service and attempts to sell it to two or more
market segments, it avoids __________.
a. the extra cost of developing and producing additional versions of the product
b. creating a customer service gap
c. indirect distribution and logistics problems
d. restructuring the firm’s strategic planning
e. amortization costs of product enhancements

Rationale: When an organization produces only a single product or service and attempts to sell it
to two or more market segments, it avoids the extra costs of developing and producing additional
versions of the product. In this case, the incremental costs of taking the product into new market
segments are typically those of a separate promotional campaign or a new channel of distribution.
When compared to a multiple products, multiple market segments strategy, a one product,
multiple market segment strategy
a. is a much more effective means of meeting consumers’ individual needs.
b. creates greater savings in production costs.
c. is a more effective way of meeting organizational objectives.
d. has significantly higher distribution costs.
e. is more profitable since a firm can charge the new segments higher prices without changing
the product.

Rationale: When a firm produces only a single product or service and attempts to sell it to two or
more market segments, it avoids the extra cost of developing and producing additional versions of
the product, which often entails higher expenses.
When a firm chooses a one product, multiple market segment strategy, its customers are likely to
see __________.
a. improved service
b. increased number of choices
c. higher retail prices because of higher marketing costs
d. higher product quality and consumer value
e. lower retail prices because of lower production costs

Rationale: Producing a single product and selling it to multiple market segments gives important
production economies of scale and reduced costs that may be passed on to consumers as lower
- 20 -
prices. In this case, the incremental costs of taking the product into new market segments are
typically those of a separate promotional campaign or a new channel of distribution. Moreover,
producing separate covers for magazines is expensive but relatively minor when compared to the
costs of producing multiple versions of the magazine for multiple geographic markets.
One marketing action that can be taken to sell a single product or service to multiple market
segments is to
a. develop and produce another version of the product.
b. manufacture products that appeal to different markets.
c. develop separate promotional campaigns.
d. purchase another firm that has additional products that would appeal to multiple markets.
e. issue stock to fund additional research and development for new products.

versions of the product, which often entail extremely high research, engineering, and
manufacturing expenses. In this case, the incremental costs of taking the product into new market
segments are typically those of a separate promotional campaign or a new channel of distribution.
The greatest benefit to consumers when a firm chooses a one product, multiple market segment
strategy is __________.
a. improved service
b. increased number of choices
c. higher product quality and consumer value
d. lower retail prices because of lower marketing costs
e. lower retail prices because of lower production costs

Rationale: Producing a single product and selling it to multiple market segments gives important
production economies of scale and reduced costs that may be passed on to consumers as lower
prices. In this case, the incremental costs of taking the product into new market segments are
typically those of a separate promotional campaign or a new channel of distribution.
- 21 -
Sporting News Baseball Yearbook Covers
The Sporting News Baseball Yearbook used 16 different covers featuring a baseball star from
each of its regions in the United States. Four covers are shown above. This is an example of a(n)
a. sporting interest–based segmentation.
b. segmenting organizational markets.
c. one product and multiple market segments.
d. multiple products and multiple market segments.
e. segments of one or mass customization.

Rationale: The 16 different covers enabled the magazine with exactly the same stories to reach
16 different regional segments, the definition of a “one product, multiple market segments”
strategy.
The Sporting News Baseball Yearbook had exactly the same stories but with 16 different covers
to appeal to baseball fans in 16 different regions of the U.S. What is the basis of its market
segmentation strategy?
a. psychographic segmentation
b. retail outlet segmentation
c. demographic segmentation
d. behavioral segmentation
e. geographic segmentation

Rationale: The magazine has 16 different covers to appeal to sports fans in 16 different
geographic regions, clearly using the geographic variable as the basis for market segmentation.
Which marketing program strategy does a firm use to sell a single product or service to multiple
market segments?
a. developing and producing another version of the product
b. manufacturing different products that appeal to different markets
c. developing separate promotional campaigns for each market
d. acquiring another firm that has additional products that would appeal to multiple markets
e. issuing stock to fund additional research and development for new products

versions of the product, which often entail extremely high research, engineering, and
manufacturing expenses. In this case, the incremental costs of taking the product into new market
- 22 -
segments are typically those of a separate promotional campaign or a new channel of distribution,
each designed to reach a different segment.
8-59 ONE PRODUCT, MULTIPLE MARKET SEGMENTS APPLICATION
Time magazine publishes over 100 different U.S. editions with common editorial content (the
same national and international stories). However, each edition is targeted at unique geographic
segments with its own set of advertisements. Time is using which of the following segmentation
strategies?
a. one product with multiple market segments
b. multiple products with multiple market segments
c. one product with multiple channels of distribution
d. one product with changes based on customer behavior
e. multiple products with one segment

Rationale: Time is selling one edition of the magazine with the same stories (product) to multiple
geographic segments. The only difference in each magazine is that the advertisements in the
magazine are different and are targeted to the appropriate geographic segment.
8-60 ONE PRODUCT, MULTIPLE MARKET SEGMENTS APPLICATION
In the United States, the Harry Potter series of books were often at the top of The New York
Times fiction bestseller list. These books have been marketed to preteen, teen, and adult readers
around the world. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using
which of the following segmentation strategies?
a. multiple products with one segment
b. one product with one channel of distribution
c. one product with multiple market segments
d. one product with changes based on customer behavior
e. multiple products with multiple segments

Rationale: Scholastic is selling one book series (product) to multiple market segments—preteen,
teen, and adult readers.
8-61 MULTIPLE PRODUCTS, MULTIPLE MARKET SEGMENTS COMPREHENSION
Which of the following is a disadvantage of employing a multiple products, multiple market

segments strategy if NOT implemented well?
a. higher sales but lower profits
b. reduced quality and higher prices
c. meeting customer needs but at the expense of higher prices
d. lower prices but with higher production costs
e. higher quality but lower prices
- 23 -
Rationale: Producing multiple products for multiple segments is clearly more expensive than
producing only a single product. But this strategy is very effective if it meets customers’ needs
better, doesn’t reduce quality or increase price, and adds to sales revenues and profits. The
proliferation of different products sold to multiple segments can reduce quality and raise prices if
this strategy is not well implemented.
8-62 MULTIPLE PRODUCTS, MULTIPLE MARKET SEGMENTS APPLICATION
Which of the following is an example of a multiple products and multiple market segments
strategy?
a. College Football magazine selects different covers for essentially the same written content in
order to appeal to different geographic markets in the U.S.
b. A new movie used several different movie trailers. One set of previews showed the action
scenes in order to attract one audience and the other set showed romantic scenes to attract
another audience.
c. Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for
those who wish to carry lots of cargo.
d. Arm and Hammer Baking Soda can be used for baking and to remove odors from
refrigerators and litter boxes.
e. Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for
women.

Rationale: A multiple products and multiple markets strategy has a number of distinct products,
each targeted to different types of users. Ford’s SUVs and pickups are two types of vehicles
targeted at two different groups of consumers—those who wish to carry people and those who
wish to carry cargo.
Which of the following is an example of a multiple products and multiple market segments
strategy?
a. College Football magazine selects different covers for essentially the same magazine in order
to appeal to different geographic markets in the U.S.
another audience.
c. Betty Crocker carries one line of cake mixes for people with conventional ovens and another
line of cake mixes for people with microwave ovens.
d. Arm and Hammer Baking Soda can be used for baking and to remove odors from
women.

Rationale: A multiple products and multiple markets strategy has a number of distinct products,
each targeted to a different type of user. Betty Crocker’s two types of cake mixes are marketed to
two different groups of consumers—those with conventional ovens and those with microwave
ovens.
- 24 -
Kellogg’s has several cereals targeted at different types of users. This is an example of multiple
products aimed at multiple markets. Manufacturing these different cereals is clearly more
expensive than producing only one but seems worthwhile if it adds to the manufacturer’s sales
revenues and profits, doesn’t reduce quality or increase price, and
a. conforms to all FDA guidelines.
b. uses the same promotion and packaging for all segments.
c. decreases the cost of the physical plant.
d. stabilizes competition.
e. better serves customers’ needs.

Rationale: Manufacturing multiple products for multiple market segments is worthwhile if it
serves customers’ needs better, doesn’t reduce quality or increase price, and adds to the
manufacturer’s sales revenues and profits.
expensive than producing one, but seems worthwhile if it adds to the manufacturer’s sales
revenues and profits, serves customers’ needs better, and
b. creates economy of scale.
c. doesn’t reduce quality or increase price.
d. decreases the cost of the physical plant.
e. stabilizes the sales revenues and profits.

expensive than producing one, but seems worthwhile if it serves customers’ needs better, doesn’t
reduce quality or increase price, and
b. adds to the manufacturer’s sales revenues and profits.
c. creates economy of scale.
d. decreases the cost of the physical plant.
e. stabilizes the sales revenues and profits.
Answer: b Page(s): 176 LO: 1 AACSB: Analytic QD: Hard
- 25 -
8-67 MASS CUSTOMIZATION KNOWLEDGE
Tailoring goods or services to the tastes of individual customers on a high-volume scale is

referred to as
a. family branding.
c. “Tiffany/Walmart” marketing.
d. economies of scale marketing.
e. build-to-order.
Answer: b Page(s): 176-177 LO: 1 AACSB: Analytic QD: Easy

Rationale: Text term definition—mass customization. Build-to-order (BTO) is incorrect because
it involves manufacturing a product only when there is an order from a customer; mass
customization is the next step beyond build-to-order.
8-68 MASS CUSTOMIZATION APPLICATION
Custom Foot operates six retail locations. At first glance, none looks any different from your
basic old-fashioned shoe store, but the only boots on hand are display models. There’s no
inventory for sale and customers go home empty-handed—at least initially. Customers browse
the store, mixing and matching design components such as style, color, and leather type. About
100 display boots provide style guidelines. Once you choose a boot style, you select materials,
colors, and textures. Custom Foot guarantees your boots will be ready within three weeks. This
is an example of
b. specialty customization.
c. virtual merchandising.
d. one product and multiple market segments.
e. multiple products and multiple market segments.
Answer: a Page(s): 176-177 LO: 1 AACSB: Analytic QD: Hard

Rationale: Mass customization is tailoring goods or services to the tastes of individual customers
on a high-volume scale—the situation here with Custom Foot.
ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can
order their shirts using any downloaded photo inserted into 600 templates or even design a shirt
from scratch. This is an example of
a. family branding.
c. multiple products and multiple market segments.
d. one product and multiple market segments.
e. specialty customization.
- 26 -
Answer: b Page(s): 176-177 LO: 1 AACSB: Analytic QD: Hard
Rationale: Mass customization is tailoring goods or services to the tastes of individual customers
at high volumes. Alternative “c” (multiple products and multiple market segments) and
alternative “d” (one product and multiple market segments) are incorrect because ChoiceShirts
only markets to one segment: online consumers who buy photo-supplied designer T-shirts. The
issue here is mass customization.
MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks
just like a photograph. So, if you send in the money and a photo of your young niece, she could
have a doll that is her twin! This is an example of
a. family branding.
b. “Tiffany” marketing.
c. multiple products and multiple market segments.
d. mass customization.
Answer: d Page(s): 176-177 LO: 1 AACSB: Analytic QD: Hard

Rationale: Today’s flexible manufacturing and marketing processes have made mass
customization possible, tailoring goods or services to the tastes of individuals on a high-volume
scale.
Lands’ End will custom fit a Marinac jacket and make it with additional features such as thumb
loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an
example of
a. family branding.
c. “Tiffany/Walmart” marketing.
d. market melding.

scale.
Nike employs a __________ strategy at its website, nikeid.com, which allows customers design a
sneaker to their own personal specifications.
a. product sampling
b. product clustering
c. mass customization
e. psychographic segmentation
- 27 -
Answer: c Page(s): 176-177 LO: 1 AACSB: Analytic QD: Hard
Rationale: Today’s Internet ordering and flexible manufacturing and marketing processes have
made mass customization possible, tailoring goods or services to the tastes of individuals on a
high-volume scale.
Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the
tin. This is an example of
b. multiple marketing.
c. target marketing.
d. product clustering.
e. repositioning.

scale.
Name Maker is an online company that sells high-end gift wrapping that can have custom slogans
or names printed on it, such as the name of a person celebrating a birthday or a couple who is
getting married. This made-to-order gift wrapping is priced from $24.95 to $32.95 per 12-foot
roll. This is an example of
a. family branding.
c. synergistic marketing.
d. “Tiffany/Walmart” marketing.

scale.
8-75 MASS CUSTOMIZATION: BUILD-TO-ORDER KNOWLEDGE
Manufacturing a product only when there is an order from a customer is referred to as

a. order customization.
b. a one product one market segment strategy.
c. synergistic marketing.
d. build-to-order.
- 28 -
Rationale: Text term definition—build-to-order.
8-76 MASS CUSTOMIZATION: BUILD-TO-ORDER APPLICATION
Model E is a new type of car manufacturer that relies on the Internet to build new car designs
from prototypes to marketable vehicles much faster than ever before. “Think of Model E as the
Dell of the auto industry. We design just a few products that consumers truly want, leveraging
best-in-class components and micro-factory approaches for rapid design, launch, and direct
delivery,” said William Santana Li, president and CEO of Model E. Model E manufactures each
car when a customer chooses from a limited number of options and orders. Model E relies on
a. order customization.
b. a one product one market segment strategy.
c. build-to-order.
d. mass customization.

Rationale: The comparison of the Model E to Dell is the phrase that should remove any doubt
from students’ minds that this is a build-to-order business. It is very similar to mass
customization, but because of production issues, a customer does not have the ability to specify
an unlimited number of features.
8-77 ORGANIZATIONAL SYNERGY KNOWLEDGE
Organizational synergy is the increased customer value achieved through

a. performing organizational functions more efficiently.
b. more discounts or larger rebates at the point of sale.
c. involvement of the ultimate consumer in product design.
d. an increase in the knowledge of competitors.
e. shared ownership of the organization through publicly traded stock.

Rationale: Text term definition—organizational synergy.
8-78 ORGANIZATIONAL SYNERGY KNOWLEDGE
The increased customer value achieved through performing organizational functions like
marketing or manufacturing more efficiently is referred to as __________.
a. aggregation
b. organizational synergy
c. segmentation
d. amalgamation
e. valuation

Rationale: Text term definition—organizational synergy.
- 29 -
8-79 ORGANIZATIONAL SYNERGY COMPREHENSION
The ultimate criterion for an organization’s marketing success is that __________ as a result of
increased synergies.
a. costs decrease
b. market share increases
c. product deficiencies decrease
d. customers should be better off
e. new products flourish

Rationale: The organizational synergy increases customer value through more products,
improved quality on existing products, lower prices, improved distribution, and so on. So, the
ultimate criterion for an organization’s marketing success is that customers should be better off as
a result of the increased synergies.
8-80 ORGANIZATIONAL SYNERGY COMPREHENSION
All of the following are examples of increased customer value from organizational synergy
EXCEPT:
a. lower prices
b. increased market share
c. more products
d. improved distribution
e. improved quality of existing products

Rationale: The key to successful product differentiation and market segmentation strategies is
finding the ideal balance between satisfying a customer’s individual wants and achieving
organizational synergy, the increased customer value achieved through performing organizational
functions such as marketing or manufacturing more efficiently. The “increased customer value”
can take many forms related to the marketing program: more products, improved quality of
existing products, lower prices, easier access to products through improved distribution, and so
on. Alternative “b” is not a marketing mix variable that benefits from organizational synergy.
8-81 CANNIBALIZATION KNOWLEDGE
When a new product or a new retail chain steals customers and sales from older existing ones of
an organization, it is referred to as
a. cannibalization.
b. amortization.
c. product appropriation.
d. product pilfering.
e. marketing Darwinism.

Rationale: Text term definition—cannibalization.
- 30 -
8-82 CANNIBALIZATION COMPREHENSION
When Ann Taylor, a well-known retailer of sophisticated women’s clothing, started losing sales
to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing
with the marketing phenomenon known as __________.
a. amortization
b. guerrilla marketing
c. shrinkage
d. marketing Darwinism
e. cannibalization

Rationale: When a company’s new product or a new chain steals customers and sales from older
existing ones, it is referred to as cannibalization.
8-83 CANNIBALIZATION COMPREHENSION
Before using the product differentiation and market segmentation strategies, marketers should
consider the potential for cannibalization, asking the question
a. “Will our new products steal customers or sales from our older ones?”
b. “Will the products compete head-to-head with those of a competitor?”
c. “Can this action successfully draw customers away from competitors?”
d. “Are there enough similarities within the market segment to warrant such high costs?”
e. “Will this action eliminate the need for individualized advertising and promotion?”

Rationale: When the increased customer value involves adding new products or a new chain of
stores, the product differentiation-market segmentation trade-off raises a critical issue: “Are the
new products or new chain simply stealing customers and sales from the company’s older
existing ones?” This is known as cannibalization.
8-84 CANNIBALIZATION APPLICATION
Cannibalization would most likely occur if

a. Dell adds high-end speaker systems to its line.
b. General Mills launches Chocolate Cheerios.
c. General Motors markets a sport coupe similar to the BMW Z4.
d. Pillsbury adds boxed sugar to its product line.
e. Procter & Gamble adds a new line of baby clothing to its product mix.

Rationale: Consumers who buy Chocolate Cheerios may have chosen not to buy MultiGrain
Cheerios or Honey Nut Cheerios. Thus, Chocolate Cheerios could cannibalize sales from the
other Cheerios products in the General Mills line.
8-85 TIFFANY/WALMART STRATEGY KNOWLEDGE
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer
- 31 -
a. a low-priced product to a high-income or high net worth segment.
b. a high-priced product to a low-income or low net worth segment.
c. different variations of the same basic offering to high-end and low-end segments.
d. a high-priced and a low-priced offering to a single market segment.
e. different offerings to high-end and low-end segments.

Rationale: A firm uses a Tiffany/Walmart strategy when it offers different variations of the same
basic offering to high-end and low-end segments.
8-86 TIFFANY/WALMART STRATEGY COMPREHENSION
Which of the following is an example of a “Tiffany/Walmart” strategy?

a. College Football magazine selects different covers for essentially the same magazine in order
to appeal to different geographic markets in the U.S.
another audience.
c. Arm and Hammer Baking Soda can be used for baking and to remove odors from
d. Gap’s Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a
slightly different version for $22.
women.

Rationale: A “Tiffany/Walmart” strategy is a two-tier marketing strategy. Many firms are now
offering different variations of the same basic product or service to high-end and low-end
segments sold at different retailers—the situation with Gap’s Banana Republic and Old Navy.
The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original
line-drawn figures on fine china sold at Nordstrom and the other is a cartoon-like Pooh on
polyester bed sheets sold at Target. This is an example of
b. one product and multiple market segments.
c. price discrimination.
d. a “Tiffany/Walmart” strategy.
e. psychographic market segmentation.

Rationale: This is an example of the two-tiered strategy referred to as a “Tiffany/Walmart”
strategy. Many firms are now offering different products or services to high-end or low-end
segments sold at different retailers.
- 32 -
You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and
pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of greeting cards that is not
quite as nice in terms of quality materials, but just as sentimental, that are sold at Barnes and
Noble bookstores. This is an example of
b. organizational synergy.
c. one product and multiple market segments.
d. price discrimination.
e. a “Tiffany/Walmart” strategy.

Rationale: This is an example of the two-tiered strategy referred to as a “Tiffany/Walmart”
strategy. Many firms are now offering different products or services to high-end or low-end
segments sold at different retailers.
8-89 STEPS IN SEGMENTING AND TARGETING MARKETS COMPREHENSION
The purpose of the five key steps in segmenting and targeting markets is to
a. identify competitors that provide similar products that satisfy a firm’s customers’ needs.
b. provide guidance to reposition products.
c. generate new products ideas for firms that are not growing in market share.
d. link market needs of customers to the organization’s marketing program.
e. correspond directly to each of the five environmental forces.

Rationale: Figure 8-3 in the textbook shows the five key steps in segmenting and targeting
markets that link customers’ needs to the organization’s marketing program.
The first step in segmenting and targeting markets that links customer needs to marketing actions
is to
a. group potential buyers into segments.
b. group products to be sold into categories.
c. develop a market-product grid and estimate size of the overall market.
d. select target markets.
e. take marketing actions to reach target markets.

Rationale: The steps in segmenting and targeting markets that link customer needs to marketing
actions are: (1) group potential buyers into segments; (2) group products to be sold into
categories; (3) develop a market-product grid and estimate size of markets; (4) select target
markets; and (5) take marketing actions to reach target markets. See Figure 8-3 in the textbook.
The second step in segmenting and targeting markets that link customer needs to marketing
actions is to
- 33 -
a. group potential buyers into segments.
b. develop a market-product grid and estimate size of the overall market.
c. select target markets.
d. take marketing actions to reach target markets.
e. group products to be sold into categories.

The third step in segmenting and targeting markets that link customer needs to marketing actions
is to __________.
a. group potential buyers into segments
b. group products to be sold into categories
c. select target markets
d. develop a market-product grid and estimate size of markets
e. take marketing actions to reach target markets

The fourth step in segmenting and targeting markets that link customer needs to marketing
actions is to __________.
a. group potential buyers into segments
b. select target markets
c. group products to be sold into categories
d. develop a market-product grid and estimate size of the overall market
e. take marketing actions to reach target markets

The fifth step in segmenting and targeting markets that link customer needs to marketing actions
is to __________.
- 34 -
a. take marketing actions to reach target markets
b. group potential buyers into segments
c. select target markets
d. group products to be sold into categories
e. develop a market-product grid and estimate size of the overall market

There are five steps involved in segmenting and targeting markets. What should a marketer do
after he or she has grouped products to be sold into categories?
a. create product groupings
b. develop a market-product grid and estimate size of markets
c. identify market needs
d. take marketing actions to reach target markets
e. form prospective buyers into market segments

8-96 CRITERIA FOR FORMING SEGMENTS COMPREHENSION
A marketing manager must be able to put a market segmentation plan into effect. This means
being able to form market segments and then __________ without encountering excessive costs.
a. eliminate potential non-buyers
b. identify segmentation variables
c. select the market segment(s) to target
d. redirect their purchase behaviors
e. ignore any and all similarities
Answer: c Page(s): 178, 184 LO: 2 AACSB: Analytic QD: Medium

Rationale: Marketers must be able to form and then select market segments to put a market
segmentation plan into effect. The five criteria to be used in forming segments include: (1)
potential for increased profit; (2) similarity of needs of potential buyers within a segment; (3)
difference of needs of buyers among segments; (4) potential of a marketing action to reach a
segment; and (5) simplicity and cost of assigning potential buyers to segments. The five criteria
used for selecting a target segment include: (1) market size; (2) expected growth; (3) competitive
position; (4) cost of reaching the segment; and (5) compatibility with the organization’s
objectives and resources.

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All of the following are criteria used for forming market segments EXCEPT:
a. difference of needs of buyers among segments.
b. potential for increased profit.
c. cost of reaching the segment.
d. potential of a marketing action to reach a segment.
e. simplicity and cost of assigning potential buyers to segments.

Rationale: The five criteria to be used in forming segments include: (1) potential for increased
profit; (2) similarity of needs of potential buyers within a segment; (3) difference of needs of
buyers among segments; (4) potential of a marketing action to reach a segment; and (5) simplicity
and cost of assigning potential buyers to segments. The cost of reaching the segment is a
criterion for selecting a target segment.
Which of the following is a criterion used in forming market segments?

a. similarity of segments to competitors’ segments
b. differences between potential suppliers or distributors
c. differences of needs of buyers within segments
d. market size of the segment
e. simplicity and cost of assigning potential buyers to segments

Rationale: The five criteria to be used in forming segments include: (1) potential for increased
profit; (2) similarity of needs of potential buyers within a segment; (3) difference of needs of
buyers among segments; (4) potential of a marketing action to reach a segment; and (5) simplicity
and cost of assigning potential buyers to segments.
The best segmentation approach is the one that

a. makes it easiest to reach the segment.
b. maximizes the opportunity for future profit and ROI.
c. recognizes different needs of buyers among different segments.
d. recognizes similarities of needs of potential buyers within a segment.
e. is simplest and least costly in assigning potential buyers to segments.

Rationale: The best segmentation approach is the one that maximizes the opportunity for future
profit and ROI. If this potential is maximized without segmentation, don’t segment.
Which of the following is NOT a reason to segment a market?

a. The ability to assign buyers to a segment is simple and cost-effective.
b. It would cause an increase in market share or profit.
- 36 -
c. All the buyers in the entire market have similar wants and needs.
d. There is a potential marketing action to reach it.
e. There are different wants and needs of buyers in the entire market.

Rationale: You would not break a market into segments if all the buyers within it have similar
wants and needs. The other alternatives are all reasons to form a segment.
Which of the following in NOT a criterion to use in forming market segments?

a. The ability to assign buyers to a segment is cost-effective and simple.
b. The result of segmenting will cause an increase in market share or profit.
c. There are significant similarities among buyers in the market segment.
d. There is a potential marketing action to reach the segment.
e. The cost to reach the segment is exceeds its profitability.
Answer: e Page(s): 178, 184 LO: 2 AACSB: Analytic QD: Medium

Rationale: The cost to reach the segment is a criterion to select a segment. The other alternatives
are all criteria to form a segment.
Selling a product to a different market segment usually requires a different marketing action that
in turn means greater costs. If increased revenues don’t offset extra costs of this action, a
marketer should __________.
a. increase the advertising budget
b. prune the product offerings
c. family brand their products
d. combine segments
e. group products into categories

Rationale: If the needs of the various segments aren’t very different, combine them into fewer
segments. A different segment usually requires a different marketing action that, in turn, means
greater costs. If increased sales don’t offset extra costs, combine segments to reduce the number
and total costs of marketing actions.
Criteria for forming segments involve both similarities and differences. The similarities must be
____________ a segment, and the differences must be __________ segments.
a. between; among
b. throughout; absent in
c. within; among
d. absent in; throughout
e. among; across
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Rationale: Two criteria used in forming segments answer this question: similarity of needs of
potential buyers within a segment and difference of needs of buyers among segments.
Criteria for forming segments involve both similarities and differences. Which of the following
statements is most accurate?
a. Within a segment, the needs of potential buyers should be different; among segments, the
needs of buyers should be similar.
b. Within a segment, the needs of potential buyers should be similar; among segments, the
needs of buyers should be different.
c. The needs of buyers should be different, both between segments and within segments.
d. The needs of buyers should be the same, both between segments and within segments.
e. If there are any differences at all, you should forgo any segmentation.

Rationale: Two criteria used in forming segments answer this question: similarity of needs of
potential buyers within a segment and difference of needs of buyers among segments.
8-105 CRITERIA FOR FORMING SEGMENTS APPLICATION
Grouping potential buyers into meaningful segments involves meeting some specific criteria that
answer the question,
a. “Is this product useful on a global scale?”
b. “Would segmentation be worth doing and is it possible?”
c. “Is it possible to reposition this product?”
d. “Is there too much competition for this product?”
e. “Is the market loyal to the product?”

Rationale: It’s not always a good idea to segment a market. Grouping potential buyers into
meaningful segments involves answering the two-part question, “Would segmentation be worth
doing, and is it possible?”
About 3 percent of the population has some degree of allergic reaction, usually mild, to
preservatives used in salad bars. Restaurants might consider people with these allergies as a
separate segment. To implement this segmentation strategy, restaurants would have to prepare a
regular salad bar and a special salad bar for the allergies segment. This multiple product and
multiple market segment strategy would have the greatest difficulty meeting which of the
following criteria used to form market segments?
a. different needs of buyers among different segments
b. similarity of needs of potential buyers within a segment
c. simplicity and cost of assigning potential buyers to segments
d. potential for increased profit and ROI
e. potential of a marketing action to reach a segment
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Answer: d Page(s): 178 LO: 2 AACSB: Analytic QD: Hard
Rationale: The “allergies” market segment would probably not provide sufficient profit and ROI
given its small estimated size, the limited benefit to consumers in the segment, and the high cost
of running a duplicate salad bar. Bottom line: The cost probably exceeds the profits gained.
8-107 CONSUMER SEGMENTATION VARIABLES COMPREHENSION
Four general categories used to segment consumer markets are geographic segmentation,
demographic segmentation, __________, and behavioral segmentation.
a. supplier segmentation
b. demand segmentation
c. regional segmentation
d. psychographic segmentation
e. product segmentation

Rationale: There are four general bases of segmentation for consumer markets and the typical
variables that can be used to segment U.S. consumer markets. These are: (1) geographic
segmentation; (2) demographic segmentation; (3) psychographic segmentation; and (4)
behavioral segmentation.
Figure 8-A
As Figure 8-A above shows, there are four general categories used to segment consumer markets
in the U.S., each having its own variables and typical breakdowns that can be used to segment
them. “A” describes the __________ base of segmentation.
a. behavioral
b. demographic
- 39 -
c. geographic
d. psychographic
e. product

Rationale: There are four general bases of segmentation for U.S. consumer markets. Each has its
own variables and typical breakdowns that can be used to segment them. They are: geographic
segmentation (“C”); demographic segmentation (“D”); psychographic segmentation (“A”); and
behavioral segmentation (“B”).
them. “B” describes the __________ base of segmentation.
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product

them. “C” describes the __________ base of segmentation.
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product

them. “D” describes the __________ base of segmentation.
- 40 -
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product

8-112 GEOGRAPHIC SEGMENTATION KNOWLEDGE
Segmentation based on where prospective customers live or work is referred to as

a. zip code segmentation.
b. geographic segmentation.
c. regional segmentation.
d. MSA segmentation.
e. NAICS code segmentation.

Rationale: Text term definition—geographic segmentation.
8-113 GEOGRAPHIC SEGMENTATION COMPREHENSION
Region and city size are both variables used to employ __________ segmentation.
a. geographic
b. behavioral
c. district
d. psychographic
e. demographic

Rationale: Geographic segmentation is based on based on where prospective customers live or
work. Geographic segmentation variables include region, city size, statistical area, media-
television, and density.
8-114 GEOGRAPHIC SEGMENTATION COMPREHENSION
All of the following are geographic segmentation variables EXCEPT:

a. density
b. city size
c. region
d. VALS
e. statistical area
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Rationale: Geographic segmentation is based on based on where prospective customers live or
work. Geographic segmentation variables include region, city size, statistical area, and density,
among others. VALS is a psychographic segmentation variable.
8-115 GEOGRAPHIC SEGMENTATION APPLICATION
Campbell’s Soup Company found that its canned nacho cheese sauce, which could be heated and
poured directly onto nacho chips, was too hot for Americans in the East and not hot enough for
those in the West and Southwest. Today, Campbell’s plants in Texas and California produce a
hotter nacho cheese sauce than what is produced in the other plants. Campbell’s is using
__________ segmentation.
a. demographic
b. behavioral
c. economic
d. geographic
e. psychographic

Rationale: Campbell’s is marketing a different sauce to different markets depending on where
they are located. This is geographic segmentation.
Which of the following statements best illustrates geographic segmentation?

a. GE builds a downsized microwave oven to hang under kitchen cabinets.
b. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
c. In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal
areas.
d. A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but
not Sundays.
e. A gourmet grocer advertises its services on a small-audience classical music station even
though there is a much larger-audience rock station in the area.

Rationale: KFC has discovered that to be a successful global marketer, it must be willing to
adapt to the taste preferences of different geographic regions.
Universal Concerts wants to bring a series of country music concerts to Canada next year. In
general, Western Canadians prefer country music while Eastern Canadians prefer rock. Thus, a
country music event in eastern Canada is very likely to have lots of empty seats even though it is
more popular than the western part of the country. If it can book only one venue, Universal
Concerts should segment its Canadian market according to __________ if it hopes to have a sold
out concert.
a. geographic characteristics
b. demographic characteristics
c. music format characteristics
d. behavioral characteristics
- 42 -
e. psychographic characteristics

Rationale: Western Canadians prefer country music much more than do Eastern Canadians. If
the concerts can be held in only one location, Universal Concerts should use geographic
characteristics in deciding where to hold a successful country music concert.
8-118 DEMOGRAPHIC SEGMENTATION KNOWLEDGE
Variables that are based on some objective physical (gender, ethnicity), measurable (age,
income), or other classification attribute (occupation) of prospective customers are used in which
segmentation base?
a. personality
b. usage
c. needs
d. demographic
e. behavioral

Rationale: Text term definition—demographic segmentation.
8-119 DEMOGRAPHIC SEGMENTATION COMPREHENSION
Which of the following is a consumer demographic segmentation variable?

a. personality
b. gender
c. usage rate
d. needs
e. region

Rationale: Demographic segmentation is based on some objective physical (gender, race),
measurable (age, income), or other classification attribute (birth era, occupation) of prospective
customers.
8-120 DEMOGRAPHIC SEGMENTATION APPLICATION
More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima
offers one serving meals —such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt
Jemima is using __________ as the basis to segment its market.
a. usage rates
b. usage patterns
c. behavior characteristics
d. demographic characteristics
e. psychographic characteristics
- 43 -
Rationale: The number of people in a household is a demographic characteristic that Aunt
Jemima uses to segment the market.
Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old
Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who
don’t remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years
ago. P&G is using which type of segmentation variable?
a. behavioral
b. demographic
c. lifestyle
d. geographic
e. psychographic

Rationale: Birth era (based on age) is a demographic segmentation variable.
When a telemarketer calls to sell a consumer life insurance, the last questions asked is what
category does the person’s household income falls into (less than $50,000; $50,000 to $99,999;
and $100,000 and over). When the telemarketer asks about household income, this indicates the
use of which type of consumer variable the firm is using to segment its market?
a. usage
b. behavior
c. demographic
d. buying situation
e. psychographic

Rationale: Household income is a demographic variable.
The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying
various attractions in the state. Since the apparent target of these ads is the traditional family, it
appears that the State of Alabama Board of Tourism has segmented the market using __________
variables.
a. demographic
b. regional
c. socioeconomic
d. geographic
e. psychographic

Rationale: Marital status, life stage, and household/family size are demographic variables.
- 44 -
Which of the following statements demonstrate the formation of a segment based on household
size?
a. Campbell’s makes a spicier nacho cheese sauce for its distributors in Texas than it does in
Maine.
b. GE built a downsized microwave oven to hang under kitchen cabinets.
c. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
d. A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but
not Sundays.
e. A gourmet grocer advertises its services on a small-audience classical music station even
though there is a much larger-audience rock station in the area.

Rationale: Household size is a demographic customer characteristic. Because smaller
households need to cook less food, GE downsized its microwave oven and restyled it to hang
under cabinets.
At a Hallmark store you can find several different product lines of greeting cards, likely including
Fresh Ink, Nature’s Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made
by Hallmark for sale in its stores and intended to appeal to different target markets. The
Mahogany line is designed to appeal to African-Americans. This is an example of __________
segmentation.
a. regional
b. lifestyle
c. demographic
d. geographic
e. psychographic

Rationale: Race/ethnicity is a demographic segmentation variable.
8-126 DEMOGRAPHIC SEGMENTATION COMPREHENSION
Which of the following statements regarding segmentation bases is most accurate?

a. The identification of demographic variables is more objective than the identification of
psychographic variables, which is more subjective.
b. Marketers should use segmentation bases in this order to reduce potential costs: behavioral,
demographic, psychographic, and geographic.
c. The identification of psychographic variables is more objective than the identification of
demographic variables, which is more subjective.
d. Behavioral segmentation is based primarily on personality.
e. Psychographic segmentation is based primarily on product features.
- 45 -
Rationale: Demographic segmentation is based on some objective physical (gender, race),
measurable (age, income) or other classification attribute (birth era, occupation) of prospective
customers. Psychographic segmentation is based on some subjective mental or emotional
attributes (personality, aspirations, lifestyle) or needs of prospective customers.
8-127 PSYCHOGRAPHIC SEGMENTATION KNOWLEDGE
Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of

prospective customers is referred to as
a. behavioral segmentation.
b. affective segmentation.
c. socioeconomic segmentation.
d. psychographic segmentation.
e. psychosocial segmentation.

Rationale: Text term definition—psychographic segmentation.
8-128 PSYCHOGRAPHIC SEGMENTATION COMPREHENSION
All of the following are psychographic segmentation variables EXCEPT:

a. lifestyle
b. needs
c. birth era
d. VALS
e. personality

Rationale: Psychographic segmentation is based on some subjective mental or emotional
attributes (personality), aspirations (lifestyle), or needs of prospective customers. Birth era is a
demographic segmentation variable.
8-129 PSYCHOGRAPHIC SEGMENTATION COMPREHENSION
Personality and lifestyle are both variables used to employ __________ segmentation.
a. geographic
b. behavioral
c. attitudinal
d. psychographic
e. demographic

attributes (personality), aspirations (lifestyle), or needs of prospective customers.
8-130 PSYCHOGRAPHIC SEGMENTATION APPLICATION
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Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their
lives, and thus all use a __________ segmentation strategy.
a. psychographic
b. behavioral
c. situational
d. socioeconomic
e. geographic

Rationale: Lifestyle is a psychographic variable. These magazines are designed to appeal to
people who enjoy certain lifestyles.
8-131 MARKETING MATTERS: NIELSEN PRIZM COMPREHENSION
The Nielsen PRIZM (part of Nielsen Claritas) lifestyle segmentation is based on the belief that
“birds of a feather flock together.” This type of consumer segmentation is referred to as
a. situational segmentation.
b. socioeconomic segmentation.
c. geographic segmentation.
d. psychographic segmentation.
e. behavioral segmentation.

attributes (personality), aspirations (lifestyle), or needs of prospective customers. Nielsen PRIZM
uses the lifestyle segmentation variable, a type of psychographic segmentation.
8-132 MARKETING MATTERS: NIELSEN PRIZM COMPREHENSION
Nielsen PRIZM (part of Nielsen Claritas) segmentation classifies every household into one of 66
demographically and __________ distinct neighborhood segments to identify lifestyles and
purchase behavior within a defined geographic market area, such as zip code.
a. financially
b. behaviorally
c. ethnically
d. socially
e. ethnographically

Rationale: Nielsen PRIZM uses lifestyle segmentation, and classifies every household into one
of 66 demographically and behaviorally distinct neighborhood segments to identify lifestyles and
purchase behavior within a defined geographic market, such as zip code. See the Marketing
Matters box.
8-133 BEHAVIORAL SEGMENTATION KNOWLEDGE
Segmentation based on some observable actions or attitudes by prospective customers, such as

what benefits they seek, as well as where, how frequently, and why they buy, is referred to as
- 47 -
a. demographic segmentation.
b. psychographic segmentation.
c. geographic segmentation.
d. behavioral segmentation.
e. socioeconomic segmentation.
Answer: d Page(s): 179-180 LO: 3 AACSB: Analytic QD: Easy

Rationale: Text term definition—behavioral segmentation.
8-134 BEHAVIORAL SEGMENTATION COMPREHENSION
Segmentation based on what product features are important to different customers is known as
a. demographic segmentation.
b. behavioral segmentation.
c. psychographic segmentation.
d. geographic segmentation.
e. socioeconomic segmentation.
Answer: b Page(s): 179-180 LO: 3 AACSB: Analytic QD: Medium

Rationale: Understanding what features are important to different customers (behavioral
segmentation) is a useful way to segment markets because it can lead directly to specific
marketing actions, such as a new product, an ad campaign, or a distribution system.
Product features and usage rate are both variables used to employ __________ segmentation.
a. geographic
b. demographic
c. loyalty
d. psychographic
e. behavioral
Answer: e Page(s): 179-180 LO: 3 AACSB: Analytic QD: Medium

Rationale: Behavioral segmentation is based on some observable actions or attitudes by
prospective customers—such as where they buy, what benefits they seek, how frequently they
buy, and why they buy. Examples of behavioral segmentation variables include product features
and usage rate.
Behavioral segmentation may be based on

a. lifestyles and demographics.
b. retailer and wholesaler behaviors.
c. geographic and demographic criteria.
d. product features and usage rate.
e. demand and supply.
- 48 -
Rationale: Behavioral segmentation is based on observable actions or attitudes of prospective
customers, such as where they buy, what benefits they seek, how frequently they buy, and why
they buy. Examples of behavioral segmentation variables include product features and usage
rate.
Behavioral segmentation encompasses

a. lifestyles and demographics.
b. retailer and wholesaler behaviors.
c. geographic and demographic criteria.
d. product features and user status.
e. demand and supply.

Rationale: Behavioral segmentation is based on observable actions or attitudes of prospective
customers, such as where they buy, what benefits they seek, how frequently they buy, and why
they buy. Examples of behavioral segmentation variables include product features and user
status.
All of the following are behavioral segmentation variables EXCEPT:

a. needs
b. usage rate
c. product features
d. intentions
e. user status
Answer: a Page(s): 179-180 LO: 3 AACSB: Analytic QD: Medium

buy, and why they buy. Needs is a psychographic segmentation variable.
8-139 BEHAVIORAL SEGMENTATION APPLICATION
A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over
40 weeks per year. The company is using __________ segmentation.
a. geographic
b. demographic
c. loyalty
d. psychographic
e. behavioral
Answer: e Page(s): 179-180 LO: 3 AACSB: Analytic QD: Hard

Rationale: Rate of use and user status are both behavioral segmentation variables. In this case,
“over 40 weeks per year” is a measure of usage rate.
- 49 -
College dorm residents frequently want to keep and prepare their own food and snacks to save
money or have a late night snack. However, their dorm rooms are often woefully short of space.
MicroFridge understands this and markets a combination microwave, refrigerator, and freezer
targeted to these students. MicroFridge is using which basis of segmentation?
a. demographic segmentation
b. psychographic segmentation
c. geographic segmentation
d. behavioral segmentation
e. socioeconomic segmentation

marketing actions, such as a new product, an ad campaign, or a distribution system.
Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet
connectivity and 3D technology. Customers prefer different features, so Samsung uses which
type of segmentation variable based on their viewing preferences?
a. demographic segmentation
b. psychographic segmentation
c. behavioral segmentation
d. geographic segmentation
e. socioeconomic segmentation

marketing actions. Samsung uses behavioral segmentation to guide the types of TVs it sells since
different consumers seek different benefits in a TV.
It is common to hold potluck meals during holidays or special events. Participants bring
casseroles, vegetables, breads, and desserts to share. It is easy to forget to take the bowl that you
brought to the dinner home with you. Reynolds responded to this problem by creating PotLux
cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds has
recognized how to use _________ variables to segment its market.
a. psychographic
b. behavioral
c. demographic
d. social
e. geographic
- 50 -
Rationale: Reynolds uses behavioral segmentation based on the benefits prospective customers
seek—cookware that is disposable and can be left behind.
Many companies have cut travel budgets so that very few business people are authorized to fly
first class. Despite the shrinking pool of business-class travelers, British Airways has grown
market share for its transatlantic business class by offering greater comfort. Promotions to
frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry
out a full day’s schedule. The segmentation strategy of British Airways is an example of
a. life stage segmentation.
b. lifestyle segmentation.
c. social class segmentation.
d. behavioral segmentation.
e. psychographic segmentation.

Rationale: British Airways is using behavioral segmentation (benefits the prospective customers
seek) to sell airline tickets to frequent fliers who value comfort and wish to sleep on a
transatlantic flight.

th
Post Grape-Nuts cereal has been marketed since the early 20 century. Its market share has been
steadily declining as consumers began associating it with something their grandfathers ate. Post
recently launched a campaign to increase consumption of the cereal by inviting consumers to
sprinkle the crunchy cereal on yogurt, salad, or soup as a delicious addition. Post wanted to
convince people either who had never tried the cereal or who were familiar with the product to
use it in a variety of different ways. In this example, Post is using which segmentation variable?
a. needs
b. lifestyle
c. behavioral
d. psychographic
e. demographic

Rationale: To boost sales, Post used user status (nonuser; regular user) as the segmentation
variable for the behavioral basis of segmentation. It also used a market modification strategy to
find new customers for Post Grape-Nuts cereal and increase its use among existing customers by
creating new use situations as a topping on yogurt, salad, or soup.
BP targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel
card. In this example, BP is using which segmentation variable?
a. needs
b. lifestyle
c. behavioral
- 51 -
d. psychographic
e. demographic

buy, and why they buy . Examples of behavioral segmentation variables include product features
and usage rate.
8-146 USAGE RATE KNOWLEDGE
The quantity consumed or patronage (store visits) during a specific period is referred to as
a. usage rate.
b. purchase metric.
c. consumption index.
d. consumption rate.
e. demand amount.

Rationale: Key term definition—usage rate.
8-147 USAGE RATE KNOWLEDGE
Usage rate refers to

a. the percentage of total possible users divided by the total number of consumers who actually
use a product or service.
b. the average number of times a customer uses a product or service.
c. quantity consumed or patronage (store visits) during a specific period.
d. the maximum number of times a customer uses a product or service.
e. the profits a firm earns from customers who consume a particular product or service.

Rationale: Key term definition—usage rate.
8-148 USAGE RATE APPLICATION
Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over
40 weeks per year. Alamo likely segments its market by
a. usage rate.
b. benefits offered.
c. demographics.
d. geography.
e. lifestyle.

Rationale: In this case, rate of use is defined as “over 40 weeks per year.” Therefore, Alamo
uses behavioral segmentation as the basis and usage rate as the variable.
- 52 -
8-149 FREQUENCY MARKETING COMPREHENSION
Airlines have developed frequent-flier programs to encourage passengers to use the same airline
repeatedly. This marketing strategy is based on
a. geographic segmentation.
b. behavioral segmentation.
c. psychographic segmentation.
d. demographic segmentation.
e. buying condition segmentation.

Rationale: Airlines have developed frequent-flier programs to encourage passengers to use the
same airline repeatedly to create loyal customers. This technique, sometimes called frequency
marketing, is a strategy that focuses on usage rate, a type of behavioral segmentation.
8-150 FREQUENCY MARKETING KNOWLEDGE
Frequency marketing is a strategy that focuses on

a. demographics.
b. benefits offered.
c. usage rate.
d. geography.
e. lifestyle.

Rationale: Frequency marketing is a strategy that focuses on usage rate. One key conclusion
emerges about usage: in market segmentation studies, some measure of usage by, or sales
obtained from, various segments is central to the analysis.
The market segmentation strategy known as frequency marketing focuses on

a. trial.
b. the average number of times a person in the target audience is exposed to an advertisement.
c. usage rate.
d. consumption incidence.
e. turnover.

marketing, is a strategy that focuses on usage rate.
Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate
and employ a __________ strategy.
- 53 -
a. rate of recurrence
b. product utilization
c. incidence
d. frequency marketing
e. consumption index

marketing, is a strategy that focuses on usage rate.
8-153 SEGMENTATION BASES USED COMPREHENSION
A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20
percent most profitable organizations of the 220 surveyed. Which segmentation base did these
organizations use most?
a. behavioral
b. psychographic
c. geographic
d. demographic
e. product

Rationale: A recent study by the Aberdeen Group analyzed which segmentation bases were used
by the 20 percent most profitable organizations of the 220 surveyed. From highest to lowest, the
segmentation bases were: geographic (88 percent), behavioral (65 percent), demographic (53
percent), and psychographic (43 percent).
8-154 80/20 RULE KNOWLEDGE
The 80/20 rule suggests that

a. 80 percent of a firm’s inventory should be readily available and 20 percent should be reserved
for emergency demand.
b. 80 percent of a firm’s first-time users will become brand loyal and 20 percent will use the
product only once and then abandon it.
c. 80 percent of a firm’s sales are obtained from 20 percent of its customers.
d. 80 percent of a firm’s marketing program expenses are tax deductible and 20 percent are not.
e. 80 percent of a firm’s products will be sold to ultimate consumers and 20 percent to
organizational buyers.

Rationale: Key term definition—80/20 rule.
8-155 80/20 RULE COMPREHENSION
The 80/20 rule is most closely related to which method of segmentation?

a. geographic
b. psychographic
- 54 -
c. opportunistic
d. demographic
e. behavioral

Rationale: The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained
from 20 percent of its customers and relates to usage rates, which is a behavioral segmentation
variable.
8-156 80/20 RULE APPLICATION
Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of
its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75
percent) of its fees and commissions. This is an example of what classic concept?
a. the two quarter gap
b. the 80/20 rule
c. the law of usage
d. the 75/25 rule
e. Parkinson’s Law

Rationale: The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained
from 20 percent of its customers. The percentages in the 80/20 rule are not really fixed at exactly
80 percent and 20 percent but suggest that a small fraction of customers provides a large fraction
of a firm’s sales.
8-157 FAST-FOOD RESTAURANT PATRONAGE COMPREHENSION
In analyzing patronage of fast-food restaurants, people who most likely will never visit one are
referred to as
a. nonqualified prospects.
b. dead leads.
c. potential prospects.
d. nonprospects.
e. laggards.

Rationale: 14.9 percent of adult Americans don’t go to fast-food restaurants in a typical month
and are really nonprospects—unlikely to ever patronize any fast-food restaurant. See Figure 8-4
in the textbook.
In market segmentation, nonusers that may be converted into customers are referred to as
a. leads.
b. prospects.
c. potential users.
d. ultimate consumers.
- 55 -
e. undefined prospects.

Rationale: Nonusers are made up of prospects and nonprospects, the former being potential
customers. See Figure 8-4 in the textbook.
Figure 8-4
To the owner of a Wendy’s fast food restaurant, the information in Figure 8-4 above suggests that
Wendy’s prospects are __________ of the total compared to __________ for McDonald’s.
a. 56.6 percent, 50.4 percent
b. 16.0 percent, 45.7 percent
c. 56.6 percent, 45.7 percent
d. 16.0 percent, 20.4 percent
e. 56.6 percent, 26.0 percent

Rationale: Figure 8-4 shows that 56.6 percent of respondents are Wendy’s prospects, while 26.0
percent are McDonald’s prospects.
8-160 FAST-FOOD RESTAURANT PATRONAGE APPLICATION
As an owner of a Wendy’s fast-food restaurant, the information in Figure 8-4 above suggests
a. you have an advantage over both McDonald’s and Burger King as being the most preferred
“second choice” restaurant.
b. most of the respondents think of Wendy’s as their primary fast food restaurant.
c. McDonald’s has fewer “exclusively loyal” customers than does Wendy’s.
d. Burger King is closing in on your market share.
e. a need to devise a marketing program to win customers from McDonald’s and Burger King.
- 56 -
Answer: e Page(s): 180-181 LO: 3 AACSB: Analytic QD: Hard
Rationale: The Wendy’s bar in Figure 8-4 shows that your primary user segments are somewhat
behind Burger King and far behind McDonald’s, so a natural strategy is to look at these two
competitors and devise a marketing program to win customers from them.
To the owner of a Wendy’s fast-food restaurant, the information in Figure 8-4 above suggests
a. new menu items or promotional strategies may be needed to convert prospects into users.
b. most of the respondents think of Wendy’s as their primary fast food restaurant.
c. McDonald’s has fewer “exclusively loyal” customers than does Wendy’s.
d. Burger King is closing in on your market share.
e. a need to devise a marketing program to change the minds of nonprospects.

Rationale: The nonusers part of the Wendy’s bar in text Figure 8-4 also provides ideas. It shows
that 14.9 percent of adult Americans don’t go to fast-food restaurants in a typical month and are
really nonprospects—unlikely to ever patronize your restaurant. But the 56.6 percent of the
Wendy’s bar shown as prospects may be worth some in-depth thought. These adults use the
product category (fast food) but do not yet go to Wendy’s. New menu items or promotional
strategies may succeed in converting these prospects into users that patronize Wendy’s.
As an owner of a Wendy’s fast-food restaurant located near a large urban university, you need to
analyze your customers and determine which segmentation base and its associated variable(s) you
will use to segment your target market. Which segmentation base and associated variable (s)
should you use?
a. psychographic: VALS and personality
b. demographic: gender and age
c. behavioral: students and nonstudents
d. geographic: city size and zip code
e. transportation mode: car, bike, public transportation, and none (walking)

Rationale: To analyze your Wendy’s customers, you need to identify which variables to use to
segment them. Because the restaurant is located near a large urban university, the most logical
starting point for segmentation is really behavioral: Are the prospective customers students or
nonstudents?
8-163 ORGANIZATIONAL MARKET SEGMENTATION COMPREHENSION
Which of the following is a basis used to segment U.S. organizational markets?

a. geographic
b. psychographic
c. income
d. needs
- 57 -
e. education

Rationale: The segmentation bases for U.S. organizational markets, which include geographic,
demographic, and behavioral.
Which of the following is a common basis used to segment U.S. organizational markets?
a. geographic
b. psychographic
c. income
d. prospects
e. education

Rationale: The segmentation bases for U.S. organizational markets include geographic,
demographic, and behavioral.
Figure 8-B
8-165 ORGANIZATIONAL SEGMENTATION VARIABLES COMPREHENSION
As Figure 8-B above shows, there are three general categories used to segment organizational
markets in the U.S., each having its own variables and typical breakdowns that can be used to
segment them. “A” describes the __________ base of segmentation.
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product
- 58 -
Rationale: There are three general bases of segmentation for U.S. organizational markets. Each
has its own variables and typical breakdowns that can be used to segment them. They are:
geographic segmentation (“C”); demographic segmentation (“B”); and behavioral segmentation
(“A”).
segment them. “B” describes the __________ base of segmentation.
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product

(“A”).
segment them. “C” describes the __________ base of segmentation.
a. behavioral
b. demographic
c. geographic
d. psychographic
e. product

(“A”).
Variables such as location, the North American Industry Classification System (NAICS) code,
and number of employees are all examples of ways to
a. differentiate products.
b. forecast sales to a consumer market.
c. segment an organizational market.
d. segment a consumer market.
- 59 -
e. promote NAFTA.

Rationale: Variables for segmenting organizational markets include geographic (location),
demographic (NAICS code, number of employees), and behavioral (usage rate) segmentation
bases.
Which of the following statements about market segmentation for organizational markets is most
accurate?
a. Criteria for segmenting markets are the same whether the market is composed of consumers
or organizations.
b. Both consumer markets and organizational markets use demographic, geographic, and
behavioral bases to segment markets.
c. Psychographic criteria are just as important in segmenting organizational markets as they are
in segmenting consumer markets.
d. Organizational markets and consumer markets use identical selection criteria.
e. The greatest difference in market segmentation strategies between consumer and
organizational markets is the number of employees employed in the segmentation process.

Rationale: Variables for segmenting organizational markets include geographic (location),
demographic (NAICS code, number of employees), and behavioral (usage rate) segmentation
bases. These bases are also used to segment consumer markets, though the variable themselves
may differ.
8-170 ORGANIZATIONAL MARKET SEGMENTATION APPLICATION
Evergreen Air Center in Marana, Arizona, is the world’s biggest parking lot for unwanted
commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The
warm, dry air where the operation is located serves as a cheap and effective airplane preservative.
Which organizational segmentation variable might Evergreen use to segment the market?
a. NAICS sector, such as manufacturers, or retailers, or lawyers
b. number of locations
c. “who buys,” such as individual buyer or buying groups
d. metropolitan statistical area
e. number of employees

Rationale: The NAICS sector variable in the demographics segmentation base would reveal
other companies that fly commercial aircraft in industries that already use Evergreen’s services
and which might be potential customers.
The William Morris Agency represents country singer Trace Adkins in negotiations with various
venues in which he could perform. Imagine that the agency decided the singer would not perform
- 60 -
at venues located in small town communities that have less than 100,000 people. Thus, of the
agency is using __________ segmentation.
a. entertainment
b. psychographic
c. geographic
d. usage rate
e. behavioral

Rationale: Population density is a geographic variable that includes whether the area is urban,
suburban, small town, or rural.
Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into
energy. One of these devices is capable of generating energy equal to $2 million of natural gas
per year. The company believes its target market consists of businesses similar to its first
customer, a fertilizer manufacturer that was located in a rural area. If the firm decides to expand
to the U.S., it most likely will use which of the following strategies to segment its market?
a. behavioral and geographic
b. number of employees and behavioral
c. purchase location and purchase type
d. NAICS code and geographic
e. behavioral and NAICS code

Rationale: Renewable Energy would first use the NAICS code to locate other fertilizer
manufacturers and then use geographic segmentation to find prospects located in rural areas in the
U.S. where there is a ready supply of manure. Renewable Energy probably presumes that the
fertilizer manufacturers have chosen their locations based on their own segmentation process
(demographic: NAICS code, geography: density, etc.) to identify those areas in the U.S. where
there are large concentrations of farms that produce manure (cattle, chickens, pigs, etc.).
8-173 PRODUCT GROUPINGS COMPREHENSION
If Wendy’s customers are buying an eating experience, which of the following rationales would
make the most sense if you were to group the products Wendy’s sells?
a. grouping by caloric intake
b. grouping by price
c. grouping by meal occasion
d. grouping by usage rate
e. grouping by level of uniqueness
Answer: c Page(s): 182-183 LO: 3 AACSB: Analytic QD: Medium

Rationale: Wendy’s customers really buy an eating experience, a meal occasion that satisfies a
need at a particular time of day. So, the product grouping that makes the most marketing sense is
by meal or time of day.
- 61 -
8-174 PRODUCT GROUPINGS COMPREHENSION
All of the following would be a logical way to group the products Wendy’s sells at its restaurants
EXCEPT:
a. dinner
b. burgers
c. breakfast
d. between-meal snacks
e. lunch

Rationale: Finding a means of grouping the products a firm sells into meaningful categories is as
important as forming customers into segments. If the firm has only one product or service, this
isn’t a problem. But when it has dozens or hundreds, these must be grouped in a way that buyers
can relate to them. Wendy’s customers really buy an eating experience, a meal occasion that
satisfies a need at a particular time of day. So, the product grouping that makes the most
marketing sense is by meal or time of day, which include breakfast, lunch, between-meal snacks,
dinner, and after-dinner snacks. Burgers are necessarily the way consumers buy a meal at fast-
food restaurants.
8-175 PRODUCT GROUPINGS APPLICATION
Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items
or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would
Safeway display and sell product groupings in this manner?
a. The groupings increase the number of market-product combinations on the market-product
grid, which makes it a more manageable framework for subsequent analysis.
b. This form of product groupings makes it easier for customers to get in and out of the store
more quickly, creating time utility.
c. The products are grouped so people can relate to them in a more meaningful way when they
shop.
d. Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
e. Individual suppliers get preferential treatment based upon the number of different UPCs they
provide in a given store.

can relate to them.
8-176 PRODUCT GROUPINGS APPLICATION
Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product
group because
a. it was easier to forecast future sales since there were fewer market-product combinations.
b. customers could buy in quantity and take advantage of quantity discounts.
c. their suppliers provided free displays and shelving to highlight Hallmark’s products.
d. it helped buyers relate to the products and make decisions in a more meaningful way.
- 62 -
e. it allowed customers to compare price and quality with competitors who displayed their
products in a similar manner.

can relate to them.
A market-product grid is a framework to relate

a. total estimated expenses for each product sold to each market segment.
b. total anticipated revenue for each product-market segment combination.
c. total anticipated profit for each product sold to each market segment.
d. the market segments of potential buyers to relative market share compared to the closest
competitor.
e. the market segments of potential buyers to products offered or potential marketing actions by
an organization.

A market-product grid is a framework to relate the __________ to products offered or potential

marketing actions by an organization.
a. market segments of potential buyers
b. marketing objectives of potential products
c. total anticipated revenue
d. total anticipated profit
e. market share of the closest competitor


a. estimated expenses for products sold.
b. products offered or potential marketing actions by an organization.
c. total anticipated revenue.
d. total anticipated profit.
e. market share of the closest competitor.
- 63 -
8-180 MARKET-PRODUCT GRID COMPREHENSION
Each cell of the complete market-product grid shows the __________.

a. relative market share
b. estimated market size
c. investment required to reach the market
d. market growth rate
e. estimated profit

Rationale: Developing a market-product grid means identifying and labeling the markets (or
horizontal rows) and product groupings (vertical columns). Each cell in the grid can show the
estimated market size of a given product sold to a specific market segment. See Figure 8-6 in the
textbook.
After establishing the market segments and product groupings on a market-product grid, the next
step is to
a. fill in the appropriate cells with precise statistical data from primary and/or secondary
sources.
b. estimate, with intelligent “guesstimates” as necessary, the market size for each cell using a
simple scale from zero to three (3 is the largest market).
c. total the vertical columns to identify the greatest marketing synergies and efficiencies.
d. total the horizontal rows to identify greatest operations/production synergies and efficiencies.
e. identify a marketing action for every product-market combination in the grid.

Rationale: The next step is to estimate the market size of each cell. The market size estimates in
Figure 8-6 vary from a large market (“3”) to no market at all (“0”) for each cell in the market-
product grid.
One advantage of a market-product grid is that it can be used to

a. make cost-cutting decisions under conditions of uncertainty.
b. screen many new product ideas in order to select the one with the best long-run market
potential.
c. determine which target market segments to select and which product groupings to offer.
d. select representative samples of consumers for marketing research studies.
e. relate the product life cycle to consumer demand.
- 64 -
Rationale: A market-product grid is a framework to relate the segments of a market to the
products offered. It is helpful in determining which target market segments to select and which
product groupings to offer.
Determining the size of specific markets within a market-product grid is helpful in determining
which target market segments to select and
a. how to implement the 80-20 rule.
b. which products to group into meaningful categories.
c. how to implement a harvesting strategy.
d. which product groupings to offer.
e. which products to reposition.

Rationale: Even crude estimates of the size of specific market-product combinations using a
market-product grid are helpful in determining which target market segments to select and which
product groupings to offer.
Figure 8-6
8-184 WENDY’S MARKET-PRODUCT GRID COMPREHENSION
Figure 8-6 above shows the market-product grid for a Wendy’s restaurant next to a large urban
university campus. The best way to describe how the student market is segmented is
a. whether the student is a faculty or staff member.
b. whether the student lives near the campus or far away.
c. whether the student has the disposable income to eat at Wendy’s.
d. combining the factors of where the student lives and when (s)he is on campus.
e. the meals eaten at the Wendy’s restaurant.
- 65 -
Rationale: The method of segmenting the student market combines where they live if they are
not commuters (dormitory or apartment) and when they are on campus if they are commuters
(day or night). See Figure 8-6 in the textbook.
university campus. Assume a large market (shown by a “3”) is three times the size of a small
market (shown by a “1”). Similarly, assume a medium market (shown by a “2”) is twice the size
of a small market. The meal occasion (product grouping) that comprises the largest product
grouping is
a. breakfast.
b. lunch.
c. between-meal snack.
d. dinner.
e. after-dinner snack.

Rationale: Totaling the meal columns vertically shows the “lunch” meal occasion to have the
most “units” of sales (14) of the five product grouping columns. See Figure 8-6 in the textbook.
university campus. Assume a large market (shown by a “3”) is three times the size of a small
market (shown by a “1”). Similarly, assume a medium market (shown by a “2”) is twice the size
of a small market. The largest potential market segment consists of
a. students that live in a dormitory.
b. students that live in an apartment.
c. students that are day commuters.
d. students that are night commuters.
e. faculty or staff members.

Rationale: Totaling the market segment rows horizontally shows that students that live in an
apartment is the largest segment with 9 “units” of sales of the student market segments. See
Figure 8-6 in the textbook.
8-187 WENDY’S MARKET-PRODUCT GRID APPLICATION
university campus. Marketing synergies and efficiencies run __________ because a single kind
of marketing action can reach customers that buy different product groupings.
a. horizontally across the rows
b. vertically down the column
c. between full meals and snacks
d. diagonally from top-left to bottom-right of a market-product grid
- 66 -
e. both horizontally and vertically depending upon the marketing action developed
Answer: a Page(s): 183-184, 188 LO: 4 AACSB: Analytic QD: Hard

Rationale: Marketing synergies and efficiencies run horizontally across the rows because a single
kind of marketing action can reach customers that buy different “products”—in this case, meals.
For example, a flyer placed under the doors of dormitory residents could promote the Wendy’s
restaurant and several of its meals. See Figure 8-6 in the textbook.
university campus. The strategy most likely to exploit marketing synergies and efficiencies
would be to target
a. lunch customers.
b. between-meal snack customers.
c. dinner customers.
d. after-dinner snack customers.
e. apartment customers.
Answer: e Page(s): 183-184, 188 LO: 4 AACSB: Analytic QD: Hard

kind of marketing action can reach a target market segment that buys different “products”—in
this case, meals. The other alternatives run vertically down the columns and correspond to
operations/production synergies and efficiencies. The apartment segment can take the greatest
advantage of horizontal marketing synergies and efficiencies. See Figure 8-6 in the textbook.
university campus. Marketing synergies and efficiencies run horizontally because
a. the first potential growth opportunity would be the breakfast market.
b. there are multiple markets and actions that can be simultaneously addressed.
c. a single kind of marketing action can reach customers that buy different product groupings.
d. the product offerings are virtually the same and the marketing action can be as simple as
offering current customers coupons.
e. the columns correspond to sales synergies and efficiencies.
Answer: c Page(s): 183-184, 188 LO: 4 AACSB: Analytic QD: Hard

kind of marketing action can reach customers that buy different “products”—in this case, meals.
For example, a flyer placed under the doors of dormitory residents could promote the Wendy’s
restaurant and several of its meals. See Figure 8-6 in the textbook.
university campus. Operations and production synergies and efficiencies run __________.
a. horizontally across the rows
- 67 -
b. vertically from top to bottom
c. between full meals and snacks
d. diagonally from top-left to bottom-right of a market-product grid
e. both horizontally and vertically depending upon the marketing action
Answer: b Page(s): 183-184, 188 LO: 4 AACSB: Analytic QD: Hard

Rationale: Operations/production synergies and efficiencies run vertically because there is only
one product grouping to be produced and marketed. See Figure 8-6 in the textbook.
8-191 CRITERIA FOR SELECTING SEGMENTS COMPREHENSION
All of the following are criterion used for selecting target market segments EXCEPT:
a. compatibility with the organization’s objectives and resources.
b. market size.
c. simplicity and cost of assigning potential buyers to segments.
d. competitive position.
e. cost of reaching the segment.

Rationale: The five criteria used for selecting a target segment include: (1) market size; (2)
expected growth; (3) competitive position; (4) cost of reaching the segment; and (5) compatibility
with the organization’s objectives and resources. Simplicity and cost of assigning potential
buyers is a criterion used in forming market segments.
Which of the following is a criterion used for selecting a target market?

a. similarity of needs of potential buyers within a segment
b. difference of needs of sellers between segments
c. feasibility of a marketing action to reach a segment
d. market size

with the organization’s objectives and resources.
Which of the following is a criterion used for selecting a target market?

a. similarity of needs of potential buyers within a segment
b. difference of needs of buyers between segments
c. expected growth of a segment
d. feasibility of a marketing action to reach a segment
- 68 -
with the organization’s objectives and resources. Although the size of market in the segment may
be small now, perhaps it is growing significantly or is expected to grow in the future.
Which of the following is a criterion used for selecting a target segment?

a. potential for increased profit
c. difference of needs of buyers among segments
d. competitive position


c. cost of reaching the segment
d. difference of needs of buyers among segments

Five general criteria are often used to select target segments. They include: (1) the size of the
market; (2) expected growth of the market; (3) competitive position of the firm with respect to the
market; (4) cost of reaching the segment; and __________.
a. compatibility with the organization’s objectives and resources
b. potential of a marketing action to reach a segment
c. similarity of needs of potential buyers within a segment
d. difference of needs of buyers among segments
e. potential for increased profit

- 69 -

c. difference of needs of buyers among segments
d. potential of a marketing action to reach a segment
e. compatibility with the organization’s objectives and resources

It is not recommended that a firm select a target segment that

a. would require entry in a global marketplace.
b. requires more than one marketing action.
c. has few competitors that target this same segment.
d. is incompatible with its company’s goals or objectives.
e. has a growth potential that would require increasing the current workforce.

8-199 CRITERIA FOR SELECTING SEGMENTS APPLICATION
Best Foods Company is considering expanding beyond the regional market segments now served
by its Hellmann’s mayonnaise. One criterion management wants to use to evaluate potential new
geographic market segments is whether new equipment must be bought to serve each new
segment. This is an example of which criterion used to select target market segments?
a. Best Foods’ competitive position in the segment
b. Best Foods’ product groupings
c. expected growth of the market segment
d. size of the market segment
e. cost of reaching the segment

Rationale: New equipment to reach a new market segment can be too costly to justify the
strategy, an example of the cost of reaching the segment.
- 70 -
A rehabilitation center wants to target women in their 20s who have received some permanent
disability as the result of a skiing accident. In terms of the criteria used for selecting a target
segment, this market would
a. have no expected growth.
b. not be compatible with the company’s current resources.
c. not be worth doing since its market size is very small.
d. not be readily accessible to the firm’s marketing programs.
e. be relatively difficult to access.

Rationale: This market could grow, albeit slowly, as women continue skiing, some of whom will
likely need the rehabilitation services that the company provides. However, this segment is
probably too small for the rehabilitation center to develop a marketing program to reach it.
During its market segmentation process for the Nike LeBron X basketball shoe, which sells for
$200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school
basketball teams. This is an example of
a. selecting target market segments to reach.
b. forming products to be sold into groups.
c. developing a market-product grid and estimating size of markets.
d. taking marketing actions to reach target markets.
e. forming prospective buyers into segments.

Rationale: A decision to concentrate on affluent teenagers is the selection of a target market
segment.
8-202 MARKETING ACTIONS APPLICATION
Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin’ B.B.Q. Sauce.
She wants to target local people who like the special blend of flavors found only in North
Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to
join Goodness Grows in North Carolina, a specialty food association that advertises local
products and distributes them to local supermarkets and gourmet shops. Lewis has just
a. formed a market segment using critical product features.
b. formed products to be sold into groups.
c. developed a market-product grid and estimating size of markets.
d. taken marketing actions to reach a target market segment.
e. formed prospective buyers into segments.

Rationale: Alternative “d” is the final step in the market segmentation process, which is take
marketing actions to reach target markets. This can be accomplished by joining the food
association that will assist her in two aspects of the marketing program—advertising and
distribution.
- 71 -
Figure 8-7
8-203 WENDY’S MARKETING ACTIONS APPLICATION
university campus after you’ve chosen the market segments to target and the product groupings to
offer based on the market size estimates. The next step is to develop a simple marketing action to
reach a target market. Assume students who live in dormitories or apartments on or near the
campus cannot use commuter student parking lots. Placing flyers under windshield wipers of
cars parked in student parking lots on weekdays between 7:00 A.M. and 4:00 P.M. that offer a $2
off coupon on any meal during the fall quarter would be especially targeted at potential
a. faculty customers.
b. staff customers.
c. day commuter customers.
d. night commuter customers.
e. nonstudent customers.

Rationale: Market segments comprise the horizontal rows in Figure 8-7. Cars parked in student
parking lots between 7:00 A.M. and 4:00 P.M. generally belong to day commuter students—the
target market for the marketing action.
8-204 WENDY’S MARKETING ACTIONS APPLICATION
university campus after you’ve chosen the market segments to target and the product groupings to
offer based on the market size estimates. The next step is to develop a simple marketing action to
reach a target market. Sending out coupons for “10 percent off all purchases between 2:00 P.M.
and 4:30 P.M.” during the winter quarter would target potential
a. dormitory customers.
b. night commuter customers.
c. between-meal snack customers.
- 72 -
d. after-dinner snack customers.
e. apartment customers.

Rationale: The target here is potential between-meal snack customers, who might be reached by
this coupon that is intended to increase sales during the 2:00 P.M. and 4:30 P.M. time period. This
is a product grouping or “meal” in the market-product grid, a vertical column in Figure 8-7.
8-205 WENDY’S MARKETING ACTIONS COMPREHENSION
When considering the quick-service restaurant competition, it will be most important for
Wendy’s to consider not only the offerings of Burger King, McDonald’s, Five Guys Burgers, and
other hamburger chains but also the
a. meals at golf and country clubs.
b. dormitory meal plans at surrounding colleges and universities.
c. items for sale at gas stations and convenience stores.
d. local farmer’s markets that sell produce.
e. nearly every food item sold at local grocery stores.

Rationale: In considering the competition, Wendy’s must include the nonhamburger chains.
Many are now selling food items and trying to gain market share from the Big Three. These
include convenient store chains like 7-Eleven, coffee shops like Starbucks, smoothie outlets like
Jamba Juice, and gas stations with prepared and reheatable packaged food.
8-206 WENDY’S MARKETING ACTIONS KNOWLEDGE
As the owner of your Wendy’s restaurant located near an urban university, which of the following
competitors mentioned in the textbook should you monitor closely due to its explosive growth in
the number of current and proposed locations—one that may or will be near your restaurant?
a. Burger King
b. In-N-Out Burger
c. McDonald’s
d. Five Guys Burgers
e. Smashburger

Rationale: From 2003 to 2012, Five Guys Burgers exploded, with more than 1,000 locations
nationwide and 1,500 new restaurants planned.
8-207 MARKETING MATTERS: APPLE COMPREHENSION
In the early 1980s, Apple, Inc. was often called “Camp Runamok” because
a. every employee was encouraged to do his or her “own thing.”
b. it was concentrating on laptops while everyone else was concentrating on personal
computers.
c. all the employees were so young, they occasionally played more than they worked.
d. there were no coherent product lines targeted at identifiable market segments.
- 73 -
e. its personal computers were “running amok” with viruses, spyware, and other problems.

Rationale: There were no coherent product lines targeted to identifiable market segments.
Apple’s lack of a segmentation strategy in the early 1980s and its current segmentation strategy
are compared in the Marketing Matters box.
Apple Market-Product Grid
8-208 MARKETING MATTERS: APPLE APPLICATION
In the Apple market-product grid shown above for its personal computer line, the “iMac” is
popular among all the segments Apple can target. This allows Apple to enjoy __________.
a. segmentation synergies
b. marketing synergies
c. product synergies
d. the 80/20 rule
e. frequency marketing

Rationale: If Apple wanted to simplify its product line, reduce R&D and production expenses,
and manufacture only one computer it might do well to focus on the iMac because every segment
purchases it.
In the Apple market-product grid shown above for its personal computer line, the “individuals”
consumer segment seems willing to purchase four of the items in Apple’s product line. This
allows Apple to enjoy cost savings due to __________.
a. segment differentiation
b. marketing synergies
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c. product synergies
d. segment repositioning
e. product differentiation

Rationale: Running horizontally across the grid, each row represents an opportunity for
efficiency in terms of a market segment. Were Apple to focus on just one group of consumers,
such as the individual consumer segment, its marketing efforts could be streamlined. Apple could
probably create a single ad to reach the individual consumer target segment.
According to the Apple market-product grid above, Apple would most likely get the LEAST
product synergies from the
a. Mac Pro and MacBook Pro.
b. Mac Pro and iMac.
c. Mac Pro and MacBook Air.
d. Mac Pro and Mac Mini.
e. iMac and Mac Mini.

Rationale: The Mac Pro and Mac Mini products are designed to serve the needs of only two
market segments, whereas the other products are designed to serve five or more segments.
According to the Apple market-product grid above, Apple would most likely get the LEAST
market synergies from
a. teachers and college staff.
b. individuals and small home office users.
c. medium/large businesses and college faculty.
d. students, teachers, and college faculty.
e. creative professionals.

Rationale: The (1) teachers and (2) college staff segments primarily uses only two products
(albeit different ones), whereas the other segments could use three or more of these products
(albeit different ones).
8-212 MARKET-PRODUCT SYNERGIES COMPREHENSION
Two key types of synergies are __________.

a. supplier and distributor synergies
b. market and product synergies
c. industry-dominated and consumer-dominated
d. product and production synergies
e. consumer and market synergies
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Rationale: Recognizing opportunities for key synergies or efficiencies are vital to success in
selecting target market segments and making marketing program decisions. Two key synergies
are marketing and product—in the form of research and development (R&D) and
production/manufacturing/operations.
Marketing synergies often come at the expense of product synergies because

a. product synergies are more effective for penetrating a market rather than creating one.
b. multiple market segments usually require multiple products.
c. it is easier to change a product than to completely develop a new marketing plan.
d. a single customer segment will likely require a variety of products.
e. no company can afford to do both at the same time.

Rationale: Marketing synergies often come at the expense of product synergies because a single
customer segment will likely require a variety of products, each of which will have to be designed
and manufactured.
__________ often come at the expense of __________ because a single customer segment will
likely require a variety of products, each of which will have to designed and manufactured.
a. Product synergies; marketing synergies
b. Marketing synergies; product synergies
c. Supplier synergies; consumer synergies
d. Distributor synergies; supplier synergies
e. Marketing synergies; finance synergies

Rationale: Marketing synergies often come at the expense of product synergies because a single
customer segment will likely require a variety of products, each of which will have to be designed
and manufactured.
8-215 PRODUCT POSITIONING KNOWLEDGE
The place a product occupies in consumers’ minds on important attributes relative to competitive
products is referred to as
a. product repositioning.
b. relative positioning.
c. competitive positioning.
d. product positioning.
e. selective perception.

Rationale: Key term definition—product positioning.
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8-216 PRODUCT POSITIONING KNOWLEDGE
Product positioning refers to

a. an outdated concept that assigns product value by association with social class.
b. the place a product offering occupies in consumers’ minds on important attributes.
c. the competitive advantage of one product over another.
d. changing the place a product occupies in a consumer’s mind relative to competitive products.
e. using a market-product grid to place products in their appropriate places on that grid to
identify potential untapped markets.

Rationale: Key term definition—product positioning.
8-217 PRODUCT REPOSITIONING KNOWLEDGE
Changing the place an offering occupies in consumers’ minds relative to competitive products is
referred to as
a. product placement.
b. perceptual mapping.
c. product positioning.
d. product repositioning.
e. product differentiation.

Rationale: Key term definition—product repositioning.
8-218 PRODUCT REPOSITIONING KNOWLEDGE
Product repositioning refers to

a. the place a product offering occupies in consumers’ minds on important attributes.
b. using a market-product grid to place products in their appropriate places on that grid to
identify potential untapped markets.
c. changing the place an offering occupies in consumers’ minds relative to competitive
products.
d. the practice of selling off a firm’s least successful product line and redirecting that revenue
into a totally new product.
e. the competitive advantage of one product over another.

Rationale: Key term definition—product repositioning.
8-219 PRODUCT REPOSITIONING APPLICATION
Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought
about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult
consumers.
a. segment
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b. differentiate
c. reposition
d. explain
e. promote

Rationale: Changing the place an offering occupies in consumers’ minds is called repositioning.
The dairy industry tried to reposition chocolate milk in the minds of adult consumers.
8-220 PRODUCT REPOSITIONING APPLICATION
Mott’s used an advertising campaign to change the way consumers thought about its applesauce
from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message
was that using applesauce in baking cuts calories and makes the resulting baked good healthier.
Mott’s used a __________ strategy.
a. perceptual mapping
b. product positioning
d. product repositioning
e. psychographic

Rationale: Product repositioning changes the place a product occupies in consumers’ minds. In
this case, Mott’s attempted to reposition its applesauce from a dinnertime side dish to a healthy
baking ingredient.
8-221 HEAD-TO-HEAD POSITIONING KNOWLEDGE
Positioning that involves competing directly with competitors on similar product attributes in the
same target market is referred to as __________.
a. competitive repositioning
b. position downsizing
c. differentiation positioning
d. head-to-head positioning
e. product distinction positioning

Rationale: Text term definition—head-to-head positioning.
8-222 HEAD-TO-HEAD POSITIONING KNOWLEDGE
One approach to positioning a new product in a market is __________ positioning, which

involves competing directly with competitors on similar product attributes in the same target
market.
a. perceptual
b. psychological
c. differentiation
d. head-to-head
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e. market

Rationale: Text term definition—head-to-head positioning.
8-223 HEAD-TO-HEAD POSITIONING COMPREHENSION
Head-to-head positioning requires a product to

a. compete with products from competitors of the same size.
b. compete with competitors on similar product attributes in the same market.
c. compete with competitors on similar product attributes but in a different market.
d. compete against very similar products from the same company (its own).
e. compete against a single competitor with an identical offering.

Rationale: Head-to-head positioning involves competing directly with competitors on similar
product attributes in the same target market.
8-224 HEAD-TO-HEAD POSITIONING APPLICATION
In the sneaker market, Reebok and Nike practice __________ positioning since both
manufacturers vie for the athletic shoe market with technologically advanced products.
a. psychological
b. perceptual
c. differentiation
d. head-to-head
e. market

Rationale: In the sneaker market, Nike and Reebok practice head-to-head positioning, which
involves competing directly with competitors on similar product attributes in the same target
market.
8-225 DIFFERENTIATION POSITIONING KNOWLEDGE
A positioning approach that involves seeking a less competitive, smaller market niche in which to
locate a brand is referred to as __________.
a. competitive repositioning
b. head-to-head positioning
c. differentiation positioning
d. downsize positioning
e. product repositioning

Rationale: Text term definition—differentiation positioning.
8-226 DIFFERENTIATION POSITIONING COMPREHENSION

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Differentiation positioning requires a product to
a. emphasize unique product attributes to compete directly with competitors.
b. compete directly with competitors on similar product attributes in the same target market.
c. compete with competitors on similar product attributes but in a different market.
d. seek a less-competitive, smaller market niche in which to locate a brand.
e. develop marketing actions to move a product or brand to an ideal position.

Rationale: Differentiation positioning involves seeking a less competitive, smaller market niche
in which to locate a brand.
8-227 DIFFERENTIATION POSITIONING APPLICATION
In the sneaker business, Heelys practiced __________ positioning when it introduced a line of
Heelys sneakers that came with an imbedded, detachable wheel in the shoe’s heel marketed to
young teens.
a. head-to-head
b. parallel market
c. lateral
d. repositioning
e. differentiation

Rationale: Differentiation positioning involves seeking a less competitive, smaller market niche
in which to locate a brand. Heelys used this strategy to compete in the kids sneaker market with
firms like Nike, Vans, Skechers, etc., when it made product modifications (the wheel in the heel)
to differentiate its shoes from those of its competitors.
8-228 DIFFERENTIATION POSITIONING APPLICATION
Some Timex wristwatches can be purchased for less than $30 while some Rolex wristwatches
carry a price tag of several thousand dollars. In general, consumers view Timex watches as being
dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an
expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and
department stores in all sizes of communities. Rolex watches are distributed more selectively,
and are often available only in fine jewelry stores or specialty shops in major cities. By using
distinctly different pricing and distribution strategies, the marketers of Rolex watches
a. compete for the same segment through different channels of distribution.
b. develop similar products as Timex but under different names.
c. use a differentiation positioning strategy.
d. compete for the same customers through similar retail outlets.
e. create cognitive dissonance in consumers who purchased Timex wristwatches.

Rationale: In today’s marketplace, competition is extreme. For most products, many comparable
alternatives are available to the consumer. In this example, both the Timex and the Rolex
wristwatches will satisfy consumers’ basic need to know the time of day. However, in order to
compete in the wristwatch market, each marketer has attempted to create a distinct product
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position in the minds of consumers. The image of the Timex (dependable, relatively accurate,
and inexpensive) is very different from that of Rolex (an expensive status symbol).
8-229 POSITIONING STATEMENT COMPREHENSION
“For upscale American families who desire a carefree driving experience, Volvo is a premium-
priced automobile that offers the utmost in safety and dependability” is a __________ statement
for Volvo in North America.
a. perception
b. positioning
c. market-product
d. vision
e. differentiation

Rationale: Marketing managers often convert their positioning ideas for the offering into a
succinct written positioning statement. The positioning statement is used not only internally
within the marketing department, but also for others, outside it, such as research and development
engineers or advertising agencies. This is the Volvo positioning statement for the North American
market.
8-230 PERCEPTUAL MAP KNOWLEDGE
A means of displaying or graphing in two dimensions the location of products or brands in the
minds of consumers to enable a manager to see how consumers perceive competing products or
brands, as well as its own product or brand, is referred to as a
a. perception matrix.
b. growth-share matrix.
c. market-product grid.
d. perceptual map.
e. product differentiation chart.

Rationale: Key term definition—perceptual map.
A perceptual map refers to

a. a framework used to compare one firm’s product offerings with another firm’s offerings in
relationship to their relative market share.
b. a framework used to demonstrate the growth or decline of specific market segments within an
industry.
c. a means of displaying or graphing in two dimensions the location of products or brands in the
minds of consumers to enable a manager to see how consumers perceive competing products
or brands, as well as its own product or brand.
d. a framework to relate the market segments of potential buyers to the products offered or
potential marketing actions by an organization.
e. the place a product occupies in a single consumer’s mind on unimportant attributes relative to
competitive products.
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A graph displaying consumers’ perceptions of product attributes in two dimensions is referred to

as a
a. perceptual map.
b. perception matrix.
c. growth-share matrix.
d. market-product grid.
e. product differentiation chart.

8-233 PERCEPTUAL MAP COMPREHENSION
Marketers use perceptual maps as a means to display or graph in two dimensions the location of
products or brands
a. against large market segments in a market-product grid.
b. against small market segments in a market-product grid.
c. in virtual space that represents the business or product’s time in existence and growth.
d. in the minds of consumers.
e. against the revenues generated by other products or brands within the company.

Rationale: A perceptual map is a means of displaying or graphing in two dimensions the location
of products or brands in the minds of consumers to enable a manager to see how consumers
perceive competing products or brands, as well as its own product or brand.
A perceptual map enables a manager to see how __________ perceive competing products or
brands, as well as the firm’s own product or brand.
a. stakeholders
b. competitors
c. independent rating organizations such as Consumer Reports
d. consumers
e. the CEO of the firm

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The axes on a perceptual map are

a. sales and profitability.
b. two product attributes, ranging from high to low on that attribute.
c. market share and market growth rate.
d. customer perceptions of the firm’s product versus the average of all brands in the industry.
e. customer perceptions of the firm’s product versus the brand of the firm’s principal
competitor.

Rationale: A perceptual map is a means of displaying or graphing in two dimensions, the
location of products or brands in the minds of consumers to enable a manager to see how
consumers perceive competing products or brands as well as its own product or brand. An
attribute such as “nutrition” could be listed as “high” at one end and “low” at the opposite end.
See Figure 8-8 in the textbook.
Which of the following data are collected from consumers to develop a perceptual map for a
particular product?
a. a listing of all prospective brands and products
b. consumer judgments about the important attributes for a product or brand class
c. managerial judgments about how consumers perceive products
d. rank order of the ratings of an existing brand’s preference relative to its competitors
e. detailed explanations of why consumers make the choices they do

Rationale: To develop a perceptual map, three types of data are needed: identification of
important attributes for a product or brand class; judgments of consumers about existing products
or brands with respect to these attributes; and identification of where the company’s product or
brand is on these attributes in the minds of potential customers. See Figure 8-8 in the textbook.
A key to effectively positioning a product or brand is discovering its perception in the minds of
potential customers. To do this, companies take four steps: (1) __________; (2) discover how
target customers rate competing products or brands with respect to these attributes; (3) discover
where the company’s product or brand is on these attributes in the minds of potential customers;
and (4) reposition the company’s product or brand in the minds of potential customers.
a. decide whether to keep or delete the market segment that your product offering targets
b. identify the competitors’ brands that make up the consideration set
c. identify the important attributes for the product or brand class
d. create a marketing plan based on customers’ perceptions
e. identify market niches that were not previously selected during the market segmentation
process
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Rationale: A key to positioning a product or brand effectively is discovering the perceptions of
its potential customers. In determining its positioning in the minds of customers, companies take
four steps: (1) identify the important attributes for the product or brand class; (2) discover how
A key to positioning a product or brand effectively is discovering the perceptions of its potential
customers. In determining its positioning in the minds of customers, companies take four steps:
(1) identify the important attributes for the product or brand class; (2)__________; (3) discover
a. decide whether to keep or delete the market segment that your product offering targets
b. identify the competitors’ brands that make up the consideration set
c. identify market niches that were not previously selected during the market segmentation
process
d. discover how target customers rate competing products or brands with respect to these
attributes
e. create a marketing plan based on customers’ perceptions

A key to positioning a product or brand effectively is discovering the perceptions of its potential
customers. In determining its positioning in the minds of customers, companies take four steps:
(1) identify the important attributes for the product or brand class; (2) discover how target
customers rate competing products or brands with respect to these attributes; (3) ___________;
a. discover where the company’s product or brand is on these attributes in the minds of potential
customers
b. decide whether to keep or delete the market segment that your product offering targets
c. identify the competitors’ brands that make up the consideration set
d. create a marketing plan based on customers’ perceptions
e. identify market niches that were not previously selected during the market segmentation
process
Answer: a Page(s): 189-190 LO: 5 AACSB: Analytic QD: Medium

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Figure 8-C
Figure 8-C above is a depiction of a _________ for beverages in the minds of adults.
a. hierarchy of needs
b. perceptual map
c. marketing matrix
d. growth-share matrix
e. perception matrix

8-241 PERCEPTUAL MAP APPLICATION
The perceptual map in Figure 8-C above shows how various drinks are seen in the minds of adult
consumers. Suppose a coffee producer wants to increase sales. As the account executive for the
coffee producer’s advertising agency, you want to create comparative ads showing that coffee
presently is more nutritious than which beverage?
a. skinny lattes.
b. fruit-flavored drinks.
c. sugared soft drinks.
d. sports drinks.
e. milk shakes.
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Rationale: For the planned ads, the coffee producer should position its coffee against drinks in
Figure 8-C that are lower than coffee on the vertical nutrition axis. Such drinks are seen as less
nutritious. The only such drink in the figure that meets this criterion is sugared soft drinks.
8-242 PERCEPTUAL MAP APPLICATION
The perceptual map in Figure 8-C above shows how various drinks are seen in the minds of adult
consumers. Suppose this map describes accurately how adults see the drinks shown. As one of
these adults, you are a heavy consumer of mineral water. Moreover, you are very concerned
about nutrition and tend not to consume children’s drinks. From this perceptual map, you
conclude that mineral water is
a. more nutritious than tea.
b. a more adult-oriented beverage than sports drinks.
c. more nutritious and a more adult-oriented beverage than milk shakes.
d. a more adult-oriented beverage than nutritionally designed diet drinks.
e. less nutritious and a more adult-oriented beverage than fruit-flavored drinks.

Rationale: According to Figure 8-C, tea ranks higher than mineral water on the vertical attribute
“nutrition,” so “more nutritious than tea” is incorrect. Also, mineral water ranks as a more adult-
oriented beverage on the horizontal axis than sports drinks, so that is the correct answer. “Milk
shakes” is incorrect because mineral water is less nutritious than milk shakes. Moreover, mineral
water ranks higher than fruit-flavored drinks on the vertical attribute “nutrition,” so that
alternative is incorrect. Mineral water is a less adult-oriented beverage than nutritionally
designed diet drinks, since it is left of the diet drinks on the horizontal axis. Mineral water is a
more adult-oriented beverage than fruit-flavored drinks, but it is more nutritious.
8-243 VIDEO CASE 8: PRINCE SPORTS COMPREHENSION
By dividing its tennis racquet market into three categories, which it labels Performance,
Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called
a. product differentiation.
b. product innovation.
c. market delineation.
d. market segmentation.
e. product groupings.

Rationale: Market segmentation involves aggregating prospective buyers into groups that (1)
have common needs and (2) will respond similarly to a marketing action. Market segments are
the relatively homogeneous groups of prospective buyers that result from the market
segmentation process—which helps Prince Sports develop products with the features and at the
prices that serve the different needs and skills of the three categories or segments tennis players.
The O3 technology refers to an innovative tennis racquet Prince Sports developed that
simultaneously delivers faster racquet speed and a bigger “sweet spot” in the middle of the frame.
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Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet
technology.
a. competitive segmentation
b. head-to-head
e. market segmentation

Rationale: Product differentiation involves a firm using different marketing mix activities, such
as product features, to help consumers perceive the product as being different and better than
competing products. By developing the O3 technology for the “Performance” segment, Prince
Sports is focusing on a product feature that provides great feel, control, and spin, which both
professional and amateur tennis players are willing to pay for.
The segmentation strategy used by Prince Sports today is

a. geographic.
b. behavioral.
c. psychographic.
d. socioeconomic.
e. resource-based.

Rationale: Behavioral segmentation is based on some observable actions of prospective
customers, such as the benefits they seek, which usually relates to the product features they
want—developed as part of the marketing program. Potential buyers within a segment should be
similar in terms of their needs and the resulting marketing action, such as product features.
Prince Sports segments on a behavioral basis—trying to put features into its racquets that appeal
to different levels of players.
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SHORT ESSAY QUESTIONS
What is market segmentation and why is it important?
Answer:
Market segmentation involves aggregating prospective buyers into groups that have common
needs and will respond similarly to a marketing action. Segmentation links needs to marketing
actions. It stresses the importance of aggregating—or grouping—people or organizations in a
market according to the similarity of their needs and the benefits they are looking for in making a
purchase. The needs and benefits to be satisfied must be related to specific, tangible marketing
actions in terms of the marketing mix variables (product, price, promotion, and distribution),
which the firm can control to satisfy the needs of these segments.
Page(s): 174 LO: 1 AACSB: Analytic QD: Medium
8-247 PRODUCT DIFFERENTIATION COMPREHENSION
What is product differentiation? How does it relate to market segmentation? How does it
potentially improve a firm’s revenues?
Answer:
Product differentiation involves a firm using different marketing mix activities, such as product
features and advertising, to help consumers perceive the product as being different and better than
competing products. Differences may involve nonphysical features as well, such as image or
price. Thus, product differentiation relates to market segmentation, where perhaps the same or
similar target markets are more likely to buy the product differentiated as having greater
reliability or lower price.
Why would an organization produce a single product or service and then attempt to sell it to two
or more market segments?
Answer:
An organization would produce a single product or service and then attempt to sell it to two or
more market segments to avoid the added cost of developing additional versions of the product,
which often entails high research and development, engineering, and manufacturing expenses. In
this case, the incremental costs of taking the product into new market segments are typically those
of a separate promotional campaign or a new channel of distribution. Although these expenses
can be high, they are rarely as large as those for developing an entirely new product.
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8-249 MULTIPLE PRODUCTS, MULTIPLE MARKET SEGMENTS COMPREHENSION
Why would an organization produce multiple products or services and then attempt to sell them
to two or more market segments?
Answer:
Organizations may target different products or services to multiple market segments. Producing
these different products or services is clearly more expensive than producing only one product or
service but is effective if it meets customers’ needs better, doesn’t reduce quality or increase
price, and most importantly, adds to the organization’s sales revenues and profits.
8-250 MASS CUSTOMIZATION COMPREHENSION
Explain the difference between mass customization and build-to-order.
Answer:
Mass customization involves tailoring goods or services to the tastes of individual customers on a
high-volume scale. Build-to-order (BTO), upon which mass customization is based, involves
manufacturing a product only when there is an order from a customer. In a BTO system,
customers do not have an unlimited number of product features they can choose from.
Page(s): 176-177 LO: 1 AACSB: Analytic QD: Medium
There are five key steps in segmenting and targeting markets, which link market needs of
customers to the organization’s marketing program. List these five key steps.
Answer:
The five key steps in segmenting and targeting markets are: (1) group potential buyers into
segments; (2) group products to be sold into categories; (3) develop a market-product grid and
estimate size of markets; (4) select target markets; and (5) take marketing actions to reach target
markets. See Figure 8-3 in the textbook.
A marketing manager should develop segments for a market that meet five principal criteria. List
these important factors in forming market segments.
Answer:
The five criteria are: (1) simplicity and cost-effectiveness of assigning potential buyers to
segments; (2) potential for increased profit and ROI; (3) similarity of needs of potential buyers
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within a segment; (4) difference of needs of buyers among segments; and (5) potential of a
marketing action to reach a segment.
A nonprofit food bank was handing out food to anyone who requested it on a weekly basis. It
now wants to give free food only to people who go hungry on a daily basis. This will be the
market segment it targets. How does formation of its market segments differ from the strategy
used for a retail store?
Answer:
There is one key difference between for-profit and not-for-profit organizations, and that is the
criterion related to the potential for increased profit and ROI. For nonprofits, this criterion is
replaced by the potential for serving clients’ needs more effectively while achieving the
organization’s goals.
Page(s): 178 LO: 2 AACSB: Analytic QD: Hard
Describe the four general bases that are used to segment consumer markets.
Answer:
The four general bases of segmentation are: (1) geographic segmentation, which is based on
where prospective customers live or work (region, city size); (2) demographic segmentation,
which is based on some objective physical (gender, race), measurable (age, income), or other
classification attribute (birth era, occupation) of prospective customers; (3) psychographic
segmentation, which is based on some subjective mental or emotional attributes (personality),
aspirations (lifestyle), or needs of prospective customers; and (4) behavioral segmentation, which
is based on some observable actions or attitudes by prospective customers—such as where they
buy, what benefits they seek, how frequently they buy, and why they buy.
8-255 CONSUMER MARKET SEGMENTATION APPLICATION
Assume you are manager of The Outback Steak House, a franchised restaurant that has opened at
new location in St. Louis. Describe which segmentation base(s) and possible segmentation
variable(s) you would use to segment the its market and explain why each supports the
appropriate market segmentation strategy.
Answer:
Students should choose from the segmentation base(s) may also apply segmentation variable(s).
The most likely basis of segmentation would be geographic. The likely segmentation variables
would be region (near St. Louis) and city size or density (more urban than rural). Demographic
variables could be used based on the necessary income of at least $35,000 to afford the $10 to
$25 per person cost of a meal at Outback. Although a psychographic basis of segmentation could
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be chosen, it would be too difficult and costly to select a psychographic variable (like
personality—extroverted, gregarious) to identify and assign consumers into distinct segments and
then develop marketing actions to reach them—two criteria necessary to segment markets. With
respect to behavioral segmentation, usage status may be feasible if an effective customer
loyalty/frequency marketing program can be easily developed to identify and classify the “heavy
users” that would patronize Outback, say, more than once a month, since repeat business is the
key to success in the sit-down restaurant industry.
Page(s): 179-180 LO: 3 AACSB: Analytic QD: Hard
8-256 80/20 RULE COMPREHENSION
Explain the “80/20 rule.”
Answer:
Usage rate is sometimes referred to in terms of the 80/20 rule, a concept that suggests 80 percent
of a firm’s sales are obtained from 20 percent of its customers. The percentages in the 80/20 rule
are not really fixed at exactly 80 percent and 20 percent, but suggest that a small fraction of
customers provide a large fraction of a firm’s sales.
What are the segmentation bases for U.S. organizational (business) markets?
Answer:
Organizational (business) markets can be segmented by geographic, demographic, or behavioral
bases. A psychographic basis is not used for organizational market segmentation.
Explain what a market-product grid is and how it is used.
Answer:
products offered or potential marketing actions by an organization. Developing a market-product
grid means identifying and labeling the markets (or horizontal rows) and product groupings (or
vertical columns). In a complete market-product grid analysis, each cell in the grid can show the
estimated market size of a given product sold to a specific market segment.
8-259 SELECTING TARGET MARKETS COMPREHENSION
What are the criteria used to select target markets?

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Answer:
There are two different kinds of criteria in the market segmentation process: those used to (1)
divide the market into segments and (2) actually pick the target segments. Five criteria can be
used to pick the target segments. They are: (1) market size; (2) expected growth; (3) competitive
position; (4) cost of reaching the segment; and (5) compatibility with the organization’s
objectives and resources.
8-260 MARKETING-PRODUCT SYNERGIES COMPREHENSION
Explain the difference between marketing synergies and product synergies.
Answer:
Synergy analysis seeks opportunities by finding the optimum balance between marketing
efficiencies versus product efficiencies and is vital to a marketer’s success in selecting target
market segments and making marketing program action decisions. Marketing synergies run
horizontally across a market-product grid and represent an opportunity for efficiency in terms of a
market segment. Marketing efforts can be streamlined with a focus on fewer segments. Product
synergies run vertically down the market-product grid and each column represents an opportunity
for efficiency in research and development and production. To simplify product lines and reduce
R&D and production expenses, a firm might only wish to manufacture one or a few products and
could determine which to make based on the number of segments with an interest in that product.
8-261 APPROACHES TO PRODUCT POSITIONING APPLICATION
What are two approaches to product positioning? Give an example of each approach.
Answer:
There are two major approaches to positioning a product. Head-to-head positioning involves
competing directly with competitors on similar product attributes in the same target market. For
example, Dollar Rental Cars compete head-to-head or directly with Avis and Hertz.
Differentiation positioning involves seeking a smaller market niche that is less competitive in
which to locate a brand. Companies also follow a differentiation positioning strategy among
brands within their own product line to seek a less-competitive, smaller market niche in which to
locate a brand. For example, McDonald’s tried to appeal to the health-conscious segment when it
introduced the low-fat McLean Deluxe hamburger a few years ago to avoid competing directly
with Wendy’s and Burger King’s (and it’s own) higher fat-content offerings.
Page(s): 188-189 LO: 5 AACSB: Analytic QD: Hard
What are the four steps to positioning a product with a perceptual map?
Answer:
- 92 -
A key to positioning a product or brand effectively is discovering the perceptions in the minds of
potential customers by taking four steps: (1) Identify the important attributes for a product or
brand class. (2) Discover how target customers rate competing products or brands with respect to
these attributes. (3) Discover where the company’s product or brand is on these attributes in the
minds of potential customers. (4) Reposition the company’s product or brand in the minds of
potential customers. As shown in Figure 8-8 in the textbook, from these data it is possible to
develop a perceptual map, a means of displaying in two dimensions the location of products or
brands in the minds of consumers.
- 93 -
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Fig. 209.—Bronze platter. Diameter about 9 inches. British
Museum. Drawn by Wallet.
It was noticed by those who saw the veil of oxide drawn away
from the ornamentation of these bronze vessels that a large
proportion of them were Egyptian rather than Assyrian in their
general physiognomy. Some of them displayed motives familiar to all
those who have travelled in the Nile valley. Take, for instance, the
fragment we have borrowed from one of the best preserved of them
all (Fig. 209).[412] Neither the minute lines of palmettes in the centre,
nor the birds that occur in the outer border, have, perhaps, any great
significance, but nothing could be more thoroughly Egyptian than the
zone of figures between the two. The same group is there four times
repeated. Two griffins crowned with the pschent, or double tiara of
upper and lower Egypt, have each a foot resting upon the head of a
kneeling child, but their movement is protective rather than
menacing. Instead of struggling, the child raises its hands in a
gesture of adoration. Between the griffins and behind them occur
slender columns, quite similar to those we have so often
encountered in the open architecture of Egypt.[413] Between the
groups thus constituted are thicker shafts bearing winged scarabs on
their campaniform capitals. These same columns and capitals occur
on another cup from which we detach them in order to show their
details more clearly.[414] In one instance the terminal of the shaft is
unlike anything hitherto found elsewhere; it is a sphere (Fig. 210);
but the contour of the next is thoroughly Egyptian (Fig. 211), and the
symbols on the last three, a scarab and two uræi, proclaim their
origin no less clearly (Figs. 212 to 214).
Figs. 210–214.—Columns or standards figured upon a bronze cup; from

Layard.
Fig. 215.—Bronze platter. Diameter 8
inches. British Museum. Drawn by
Wallet.
We gather the same impression from a platter only cleaned quite
lately and consequently not to be found in Sir H. Layard’s works; it is
now reproduced for the first time (Fig. 215). The whole decoration is
finely carried out in line with the burin. The middle is occupied by a
seven pointed star or rosette, nine times repeated. Around this
elegant and complex motive there are concentric circles, the third of
which, counting from the centre, is filled up with small figures hardly
to be distinguished by the naked eye. We divine rather than see
lions, birds, seated men, and certain groups of symbols, such as
three lines broken and placed one above the other, which are
continually recurring in the hieroglyphic writing of Egypt. The fifth
zone has conventional papyrus stems alternating with rosettes. The
sixth, much larger, is filled with ovals surmounted by two plumes and
the uræus, that is by the royal cartouch of Egypt in its usual form.
The interior of each oval contains very small groups of figures
separated from one another by four horizontal lines.
Fig. 216.—Part of a bronze cup or platter. Diameter about 9 inches.
British Museum.
We may quote a cup figured by Layard as a last example of this
exotic style of decoration. In the centre there are four full-face heads
with Egyptian wigs (Fig. 216). Around them a mountainous country is
figured in relief, and sprinkled with trees and stags engraved with the
point. The wide border, which is unfortunately very much mutilated,
is covered with groups of figures apparently copied from some
Egyptian monument, if we may judge from the attitudes and
costume. One figure, whose torso has entirely disappeared, wears
the pschent and brandishes a mace over his head; the movement is
almost identical with that of the victorious Pharaoh with whom we are
so familiar. A goddess, who might be Isis, stands opposite to him. In
another part of the border there is a misshapen monster crowned
with feathers and resembling the Egyptian Bes.[415]
Fig. 217.—Bronze cup. Diameter 11 inches;
from Layard.
Side by side with these platters we find others on which nothing
occurs to suggest foreign influence. Take, for instance, the example
reproduced in Fig. 208. In the centre there is a small silver boss,
while the rest of the flat surface is occupied by the fine diaper pattern
made up of six-petalled flowers that we have already met with on the
carved thresholds (Vol. I. Fig. 96). The hollow border is ornamented
with four lines of palmettes united by an undulating line, a motive
which is no less Assyrian than the first (Vol. I., Figs. 128, 138, 139,
etc.). In Fig. 217 we reproduce a cup on which its original mounting,
or ring by which it was suspended, is still in place. The whole of the
decoration is pure Assyrian. The rosette is exactly similar to many of
those found on the enamelled bricks (see Vol. I., Figs. 122, 123). In
the first of the three zones, gazelles march in file; in the second, a
bull, a gazelle, an ibex, and a winged griffin, followed by the same
animals attacked by lions and making fourteen figures in all; in the
third zone fourteen heavy-crested bulls follow one another round the
dish. All these animals are among those most constantly treated by
the Assyrian sculptor; their shapes and motions are as well
understood and as well rendered as in the bas-reliefs. The bulls
especially are grandly designed. Moreover, the idea of employing all
these animals for the adornment of such a surface is entirely in the
spirit of Assyrian decoration. We shall meet with it again in the
shields from Van; we figure the best preserved of the latter on page
347.
It would be easy to give more examples, either from Layard or
from our own catalogue of these objects, of the purely Assyrian style
on the one hand, or of that in which the influence of Egyptian models
is so clearly shown, on the other. It is enough, however, that we have
proved that these little monuments may be divided into two clearly
marked classes. Did the two groups thus constituted share the same
origin? Did they both come from the same birth-place? Further
discoveries may enable us to answer this question with certainty,
and even now we may try to pave the way to its solution.
There would be no difficulty if these bronze vessels bore
cuneiform inscriptions, especially if the latter formed a part of the
decorative composition, as in the palace reliefs, and were cut by the
same hand. But this, so far as we know at present, was never the
case. In some fragments of pottery we have found cuneiform
characters (Fig. 185), and the name of Sargon has even been read
on a glass phial (Fig. 190), but—and we cannot help feeling some
surprise at the fact—none of these objects of a material far more
precious bear a trace of the Mesopotamian form of writing. I do not
know that a single wedge has been discovered upon them. A certain
number of them are inscribed, but inscribed without exception with
those letters which Phœnicia is supposed to have evolved out of the
cursive writing of Egypt.[416] They were not introduced with any idea
of enriching the design, as they always occur on the blank side of the
vessel. They are close to the edge, and their lines are very slender,
suggesting that they were meant to attract as little attention as
possible. They consist of but a single name, that of the maker, or,
more probably, the proprietor of the cup.[417]
May we take it that these inscriptions afford a key to the mystery?
that they prove the vases upon which they occur at least to have
been made in Phœnicia? We could only answer such a question in
the affirmative if peculiarities of writing and language belonging only
to Phœnicia properly speaking were to be recognized on them; but
the texts are too short to enable us to decide to which of the Semitic
idioms they should be referred, while the forms of the letters do not
differ from those on some of the intaglios (Figs. 156 and 157) and
earthenware vases (Fig. 183), and upon the series of weights
bearing the name of Sennacherib.[418] The characters belong to that
ancient Aramæan form of writing which seems to have been
practised in Mesopotamia in very early times as a cursive and
popular alphabet.
The inscriptions, then, do little to help us out of our
embarrassment, and we are obliged to turn to the style of the
vessels and their decoration for a solution to our doubts. The
conviction at which we soon arrive after a careful study of their
peculiarities is that even those on which Egyptian motives are most
numerous and most frankly employed were not made in Egypt. In the
first place we remember that the Egyptians do not seem to have
made any extensive use of such platters; their libations were poured
from vases of a different shape, and the cups sometimes shown in
the hands of a Pharaoh always have a foot.[419] Moreover, in the
paintings and bas-reliefs of Egypt, where so many cups and vases of
every kind are figured, and especially the rich golden vessel that
must have occupied such an important place in the royal treasure,
we only find the shape in question in a few rare instances.[420]
After this general statement we may go into the details. In these
the hand of the imitator is everywhere visible; he borrows motives
and adapts them to his own habits and tastes. Take as an example
the platter to which a double frieze of hieroglyphs gives a peculiarly
Egyptian physiognomy (Fig. 215). An Egyptian artist would never
employ hieroglyphs in such a position without giving them some real
significance, such as the name of a king or deity. Here, on the other
hand, an Egyptologist has only to glance at the cartouches to see
that their hieroglyphs are brought together at haphazard and that no
sense is to be got out of them. This is obvious even by the
arrangement of the several characters in the oval without troubling to
examine them one by one. They are divided into groups by straight
lines, like those of a copy book. The Egyptian scribe never made use
of such divisions; he distributed his characters over the field of the
oval according to their sense and shape. The arrangement here
followed is only to be explained by habits formed in the use of a
writing that goes in horizontal lines from left to right or right to left.
There is, in fact, nothing Egyptian but the shape of the ovals, and the
motive with which they are crowned. The pretended hieroglyphs are
nothing but rather clumsily executed pasticcios. And it must be
noticed that even this superficial Egyptianism is absent from the
centre of the dish. In those Theban ceilings which display such a
wealth of various decoration we may find a simple rosette here and
there, or rather a flower with four or eight petals, but these petals are
always rounded at the end; nowhere do we find anything that can be
compared to the great seven-pointed star which is here combined so
ingeniously with eight more of the same pattern but of smaller size.
On the other hand this motive is to be found on a great number of
cups where no reminiscence of Egypt can be traced. The ruling idea
is the same as that of the diaper-work in the thresholds from
Khorsabad and Nimroud (see Vol. I., Fig. 135).
After such an example we might look upon the demonstration as
made, but it may be useful to complete it by analyzing the other cups
we have placed in the same class. That on which the scarabs on
standards and the opposed sphinxes appear (Fig. 209) seems pure
Egyptian at first sight; but if we take each motive by itself we find
variations that are not insignificant. In Egyptian paintings, when the
scarab is represented with extended wings they are spread out
horizontally, and not crescent-wise over its head.[421] We may say
the same of the sphinx. The griffin crowned with the pschent is to be
found in Egypt as well as the winged sphinx,[422] but the Egyptian
griffins had no wings,[423] and those of the sphinxes were folded so
as to have their points directed to the ground. In the whole series of
Egyptian monuments I cannot point to a fictitious animal like this
griffin. It is in the fanciful creations of the Assyrians alone that these
wings, standing up and describing a curve with its points close to the
head of the beast that wears them (see Fig. 87), is to be seen. It is
an Assyrian griffin masquerading under the double crown of Egypt,
but a trained eye soon penetrates the disguise.
The arrangement, too, of the group is Assyrian. When the
Egyptians decorated a jewel, a vessel, or a piece of furniture by
combining two figures in a symmetrical fashion, they put them back
to back rather than face to face.[424] Very few examples can be
quoted of the employment in Egypt of an arrangement that is almost
universal in Assyria. In the latter country this opposition of two
figures is so common as to be common-place; they are usually
separated from each other by a palmette, a rosette, a column or
even a human figure (see Vol. I., Figs. 8, 124, 138, 139; and above,
Figs. 75, 90, 141, 152, 153, 158, etc.), and it was certainly from
Mesopotamia that Asia Minor borrowed the same motive, which is so
often found in the tombs of Phrygia and in Greece as far as
Mycenæ, whither it was carried from Lydia by the Tantalides.[425]
The same remarks will apply to the cup partially reproduced in
our Fig. 216. The ornament of the centre and of the outer band is
Egyptian in its origin, but the mountainous country with its stags and
its trees, that lies between—have we found anything like it in Egypt?
The mountains are suggested in much the same fashion as in the
palace reliefs, and we know how much fonder the sculptors of
Mesopotamia were of introducing the ibex, the stag, the gazelle, etc.,
into their work than those of Egypt. The rocky hills and sterile deserts
that bounded the Nile valley were far less rich in the wilder ruminants
than the wooded hills of Kurdistan and the grassy plains of the
double valley.
There is one last fact to be mentioned which will, we believe, put
the question beyond a doubt. Of all antique civilization, that which
has handed down to us the most complete material remains is the
civilization of Egypt. Thanks to the tomb there is but little of it lost.
Granting that these cups were made in Egypt, how are we to explain
the fact that not a single specimen has been found in the country?
About sixty in all have been recovered; their decoration is
distinguished by much variety, but when we compare them one with
another we find an appreciable likeness between any two examples.
The forms, the execution, the ornamental motives are often similar,
or, at least, are often treated in the same spirit. The majority come
from Assyria, but some have been found in Cyprus, in Greece, in
Campania, Latium, and Etruria. Over the whole area of the ancient
world there is but one country from which they are totally absent, and
that country is Egypt.
We may, then, consider it certain that it was not Egyptian industry
that scattered these vessels so widely, from the banks of the
Euphrates to those of the Arno and the Tiber, not even excepting
from this statement those examples on which Egyptian taste has left
the strongest mark. Egypt thus put out of the question, we cannot
hesitate between Mesopotamia and Phœnicia. If the cups of
Nimroud were not made where they were found, it was from
Phœnicia that they were imported. The composite character of the
ornamentation with which many of them were covered is consistent
with all we know of the taste and habits of Phœnician industry, as we
shall have occasion to show in the sequel. On the other hand we
must not forget at how early a date work in metal was developed in
the workshops of Mesopotamia. Exquisite as it is, the decoration of
the best of these vases would be child’s play to the master workmen
who hammered and chiselled such pictures in bronze as those that
have migrated from Balawat to the British Museum.
We are inclined to believe that the fabrication of these cups
began in Mesopotamia; that the first models were issued from the
workshops of Babylon and Nineveh, and exported thence into Syria;
and that the Phœnicians, who imitated everything—everything, at
least, that had a ready sale—acclimatized the industry among
themselves and even carried it to perfection. In order to give variety
to the decoration of the vases sent by them to every country of
Western Asia and Southern Europe, they drew more than once from
that storehouse of Egyptian ideas into which they were accustomed
to dive with such free hands; and this would account for the
combination of motives of different origin that we find on some of the
cups. Vases thus decorated must have become very popular, and
both as a result of commerce and of successful wars, must have
entered the royal treasures of Assyria in great numbers. We know
how often, after the tenth century, the sovereigns of Calah and
Nineveh overran Palestine, as well as Upper and Lower Syria. After
each campaign long convoys of plunder wended their way through
the defiles of the Amanus and Anti-Lebanon, and the fords of the
Euphrates, to the right bank of the Tigris. The Assyrian conquerors
were not content with crowding the store-rooms of their palaces with
the treasures thus won, they often transported the whole population
of a town or district into their own country. Among the Syrians thus
transplanted there must have been artizans, some of whom
endeavoured to live by the exercise of their calling and by opening
shops in the bazaars of Babylon, Calah, and Nineveh. Clients could
be easily gained by selling carved ivories and these engraved cups
at prices much smaller than those demanded when the cost of
transport from the Phœnician coast had to be defrayed.
In one of these two ways it is, then, easy to explain the
introduction of these foreign motives into Assyria, where they would
give renewed life to a system of ornament whose resources were
showing signs of exhaustion. This tendency must have become
especially pronounced about the time of the Sargonids, when
Assyria was the mistress of Phœnicia and invaded the Nile valley
more than once. To this period I should be most ready to ascribe the
majority of the bronze cups; the landscapes, hunts and processions
of wild animals with which many of them are engraved, seem to
recall the style and taste of the bas-reliefs of Sennacherib and
Assurbanipal rather than the more ancient schools of sculpture.
In any case it would be difficult, if not impossible, to distinguish
between the vases engraved in Mesopotamia by native workmen
and those imported from Phœnicia, or made at Nineveh by workmen
who had received their training at Tyre or Byblos. The resemblances
between the two are too many and too great. At most we may unite
all the platters found in Mesopotamia into a single group, and point
out a general distinction between them and those that have been
discovered in the Mediterranean basin. The ornament on the
Nimroud cups is, on the whole, simpler than on those found in
Cyprus and Italy; the figure plays a less important part in the former,
and the compositions are more simple. The Assyrian cups, or, to be
more accurate, those found in Assyria, represent the earliest phase
of this art, or industry, whichever it should be called. In later years,
after the fall of Nineveh, when Phœnicia had the monopoly of the
manufacture, she was no longer content with purely decorative
designs and small separate pictures. Her bronze-workers multiplied
their figures and covered the concentric zones with real subjects,
with scenes whose meaning and intention can often be readily
grasped. This we shall see when the principal examples of this kind
of art come under review in our chapters upon Phœnicia.[426]
Fig. 218.—Bronze cup. British Museum.

Meanwhile, we shall not attempt to establish distinctions that are
nearly always open to contest; they would, besides, require an
amount of minute detail which would here be quite out of place. To
give but one example of the evidence which might lead to at least
plausible conclusions, we might see pure Assyrian workmanship in
the cup figured below (Fig. 218),[427] where mountains, trees, and
animals stand up in slight relief, both hammer and burin having been
used to produce the desired result. Among these animals we find a
bear, which must have been a much more familiar object to the
Assyrians living below the mountain-chains of Armenia and
Kurdistan than to the dwellers upon the Syrian coast. In the inscribed
records of their great hunts, the kings of Assyria often mention the
bear.[428] Nothing that can be compared to these wooded hills
peopled by wild beasts is to be found on the cups from Cyprus or
Italy. I may say the same of another cup on which animals of various
species are packed so closely together that they recall the
engravings on some of the cylinders (see Fig. 149).[429]
On the other hand, there are plenty of motives which may just as
easily have had their origin in one country as the other. The two
vultures, for instance, preparing to devour a hare stretched upon its
back, which we figure below (Fig. 219).[430]
Fig. 219.—Border of a cup; from Layard.

It may be thought that we have dwelt too long upon these cups;
but the sequel of our history will show why we have examined them
with an attention that, perhaps, neither their number nor their beauty
may appear to justify. They are first met with in Assyria, but they
must have existed in thousands among the Greeks and Italiots.
Light, solid, and easy to carry, they must have furnished western
artists with some of their first models. As we shall see, they not only
afforded types and motives for plastic reproduction, but, by inciting
them to find a meaning for the scenes figured upon them, they
suggested myths to the foreign populations to whom they came.
§ 5. Arms.
We shall not, of course, study Assyrian arms from the military
point of view. That question has been treated with all the care it
deserves by Rawlinson and Layard.[431] From the stone axes and
arrow-heads that have been found in the oldest Chaldæan tombs, to
the fine weapons and defensive armour in iron and bronze, used by
the soldiers of Nineveh in its greatest years, by the cavalry, the
infantry, and the chariot-men of Sargon and Sennacherib, the
progress is great and must have required many long centuries of
patient industry. In Assyria no trade can have occupied more hands
or given rise to more invention than that of the armourer. For two
centuries the Assyrian legions found no worthy rivals on the
battlefields of Asia; and, although their superiority was mainly due, of
course, to qualities of physical vigour and moral energy developed
by discipline, their unvarying success was in some degree the result
of their better arms. Without dwelling upon this point we may just
observe that when war is the chief occupation of a race, its arms are
sure to be carried to an extreme degree of luxury and perfection.
Some idea of their elaboration in the case of Assyria may be gained
from the reliefs and from the original fragments that have come down
to us.
Figs. 220, 221.—Chariot poles; from a bas-relief.

It was from the animal kingdom that the Assyrian armourer
borrowed most of the forms with which he embellished the weapons
and other military implements he made. Thus we find the chariot
poles ending in the head of a bull, a horse, or a swan (Figs. 220 and
221).[432] Elsewhere we find a bow no less gracefully contrived; its
two extremities are shaped into the form of a swan’s head bent into
the neck.[433]
Figs. 222, 223.—Sword scabbards, from the

reliefs; from Layard.
The sword is the king of weapons. By a kind of instinctive
metaphor every language makes it the symbol of the valour and
prowess of him who wears it. It was, therefore, only natural that the
Assyrian scabbard, especially when worn by the king, should be
adorned with lions (Figs. 82, 222, 223). These were of bronze, no
doubt, and applied. In the last of our three examples a small lion is
introduced below the larger couple. The sword-blade itself may have
been decorated in the same fashion. The Assyrians understood
damascening, an art that in after ages was to render famous the
blades forged in the same part of the world, at Damascus and
Bagdad. The Arab armourers did no more, perhaps, than practise an
art handed down to them from immemorial times, and brought to
perfection many centuries before in the workshops of Mesopotamia.
At any rate we know that two small bronze cubes found at Nimroud
were each ornamented on one face with the figure in outline of a
scarab with extended wings, and that the scarab in question was
carried out by inlaying a thread of gold into the bronze (Fig. 224).
Meanwhile we may point to an Assyrian scimitar, the blade of which
is inscribed with cuneiform characters.[434]
In the reliefs we find a large number of shields with their round or
elliptical surfaces divided into concentric zones.[435] A recent
discovery enables us to say how these zones were filled, at least in
the case of shields belonging to kings or chiefs. In 1880 Captain
Clayton found, on the site of an ancient building at Toprak-Kilissa, in
the neighbourhood of Van, four shields, or rather their remains,
among a number of other objects. These shields are now in the
British Museum. Upon one fragment we may read an inscription of
Rushas, king of Urardha, or Armenia, in the time of Assurbanipal.
[436]
Fig. 224.—Bronze cube damascened with gold;

from Layard.
This inscription, which is votive in its tenor, combines with the
examination of the objects themselves, to prove that these shields
are not real arms, made for the uses of war. The bronze is so thin—
not more than a millimetre and a half in thickness—that even if
nailed upon wood or backed with leather it could have afforded no
serious protection, and its reliefs must have been disfigured and
flattened with the least shock. The edge alone is strengthened by a
hoop of iron. The shields are votive, and must have been hung on
the walls of a temple, like those we see thus suspended in a bas-
relief of Sargon (Vol. I. Fig. 190), a relief in which a temple of this
same Armenia is represented.[437] But although they were made for
purposes of decoration, these arms were none the less copies of
those used in actual war, except in the matter of weight and solidity;
thus they were furnished with loops for the arms, but these were too
narrow to allow the limb of a man of average size to pass through
them with any freedom.
Fig. 225.—Votive shield. Diameter about 34½ inches.

Drawn by R. Elson.
For us the most interesting point about them is their decoration,
which is identical in principle with several of the bronze platters lately
discussed (see Fig. 217). This may be clearly seen in our
reproduction of the shield which has suffered least from rust (Fig.
225).[438] In the centre there is a rosette with many radiations; next
come three circular bands separated from each other and from the
central boss by a double cable ornament. The innermost and
outermost zones are filled with lions passant, the one between with
bulls in the same attitude. And here we find a curious arrangement of
which we can point to no other example: both lions and bulls have
their feet turned sometimes to the centre of the shield, sometimes to
its outer edge. The general character of the form is well grasped in
both cases; but the design has neither the breadth nor firmness of
that upon the cup to which we have already compared this shield
(Fig. 217). The armourers were inferior in skill to the gold and
silversmiths—we can think of no more appropriate name for them—
by whom the metal cups were beaten and chased, although they
made use of the same models and motives. No one would attribute a
Phœnician origin to these bucklers; they were found in Armenia and
were covered with cuneiform inscriptions. They must have been
made either in Assyria, or in a neighbouring country that borrowed all
from Assyria, its arts and industries as well as its written characters.
The Assyrians attached too much importance to their arms and
made too great a consumption of them to be content with importing
them from a foreign country.
Fig. 226.—Knife-handle. Bone.

Louvre.
When we turn to objects of less importance, such as daggers and
knives, we find their handles also often modelled after animals’
heads. We have already figured more than one example (Vol. I., tail-
piece to chapter II., and Vol. II., tail-piece to chapter I.). But
sometimes they were content with a more simple form of decoration
belonging to the class of ornament we call geometrical, which they
combined with those battlement shapes that, as we have seen, the
enameller also borrowed from the architect (Vol. I. Fig. 118). A by no
means ungraceful result was obtained by such simple means (Figs.
202 and 226). These knife-handles are interesting not so much on
account of their workmanship as for their tendency and the taste
they display. They were objects of daily use and manufacture. Cut
from ivory and bone, they were sold in hundreds in the bazaars. But
in every detail we can perceive a desire to make the work please the
eye. The evidence of this desire has already struck us in Egypt; it will
be no less conspicuous in Greece. In these days, how many useful
objects turned out by our machines have no such character. Those
who design them think only of their use. They are afraid of causing
complications by any attempt to make one different from the other or
to give varied shapes to tools all meant for the same service. They
renounce in advance the effort of personal invention and the love for
ornament that gives an interest of its own to the slightest fragments
from an ancient industry, and raises it almost to the dignity of a work
of art.
§ 6. Instruments of the Toilet and Jewelry.
The preoccupation to which we have just alluded, the love for an

agreeable effect, is strongly marked in several things which are now
always left without ornament. A single example will be enough to
show the difference. Nowadays all that we ask of a comb is to do its
duty without hurting the head or pulling out the hair; that its teeth
shall be conveniently spaced and neither too hard nor too pliant.
These conditions fulfilled, it would not be out of place in the most
luxurious dressing-room. The ancients were more exacting, as a
series of ebony combs in the Louvre is sufficient to show (Figs. 227–
229).[439] They have two rows of teeth, one coarse, the other fine,
and each is ornamented in the middle with a figure in open-work
(Figs. 228–229) or raised in relief on a flat bed (Fig. 227). Only a part
of the latter comb is preserved. The frame round the figures is cut
into the shape of a cable above and below, and into rosettes at the
ends. On one side of the comb there is a walking lion, on the other
the winged sphinx shown in our engraving. Its body is that of a lion, it
is mitred and wears a pointed beard. In the second example we have
a lion with lowered head within a frame with a kind of egg moulding.
The forms are so heavy that at first we have some difficulty in
recognizing the species. In our last specimen both design and
execution are much better. A lion is carved in the round within a
frame ornamented with a double row of zig-zag lines. The modelling
has been carried out by a skilful artist and is not unworthy of a place
beside the Ninevite reliefs.
Fig. 227.—Comb. Actual size.

Louvre.
We know of nothing among the spoils of Assyria that can be
compared to those wooden spoons that the Egyptian workman
carved with so light a hand;[440] but two objects found at Kouyundjik
prove that the Assyrians knew how to give forms elegant and
graceful enough, though less original, to objects of the same kind.
One of these is a bronze fork, the other a spoon of the same

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Bloom’s Level of Learning (LL)

Test Item Table by Learning Objective and Bloom’s Level of Learning

Bloom’s Level of Learning (LL)

MULTIPLE CHOICE QUESTIONS

8-1 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION

The company name Zappos was chosen because it

Answer: b Page(s): 173 LO: 5 AACSB: Analytic QD: Medium

8-2 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION

The primary focus of Zappos’ market segmentation strategy is to sell

Answer: a Page(s): 173 LO: 4 AACSB: Analytic QD: Medium

8-3 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION

Answer: e Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who

Answer: c Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

8-5 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION

Which of the following statements about Zappos is most accurate?

Answer: b Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

8-6 CHAPTER OPENER: ZAPPOS.COM COMPREHENSION

The Zappos segmentation strategy is based on

Answer: a Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

Building open and honest relationships with communication is an example of Zappos’

Answer: c Page(s): 173 LO: 1 AACSB: Analytic QD: Medium

8-8 MARKET SEGMENTATION KNOWLEDGE

Answer: c Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

8-9 MARKET SEGMENTATION KNOWLEDGE

Market segmentation refers to

Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

8-10 MARKET SEGMENTATION COMPREHENSION

Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-11 MARKET SEGMENTATION COMPREHENSION

Answer: b Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-12 MARKET SEGMENTATION COMPREHENSION

Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-13 MARKET SEGMENTATION COMPREHENSION

Answer: b Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-14 MARKET SEGMENTATION COMPREHENSION

Answer: c Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-15 MARKET SEGMENTATION COMPREHENSION

To be identified as a market segment, its members must

Answer: b Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-16 MARKET SEGMENTATION COMPREHENSION

Answer: b Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Hard

8-18 MARKET SEGMENTATION APPLICATION

Answer: c Page(s): 174 LO: 1 AACSB: Analytic QD: Hard

8-19 MARKET SEGMENTS KNOWLEDGE

Market segments refer to

Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

8-20 MARKET SEGMENTS KNOWLEDGE

Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Easy

8-21 MARKET SEGMENTS COMPREHENSION

The phrase “relatively homogeneous collections of prospective buyers” is most descriptive of

Answer: d Page(s): 174 LO: 1 AACSB: Analytic QD: Medium

8-22 MARKET SEGMENTS COMPREHENSION

Answer: a Page(s): 174 LO: 1 AACSB: Analytic QD: Medium