CH 02: CONSUMER FOCUSED STRATEGY SEGMENTATION AND POSITIONING. All Answers

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True I I. Market aggregation is the process of dividing the large and diverse market into subsets of consumers who share common needs, characteristics, or behaviors. a. True b. POINTS:... 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 2. Dividing groups of products into subgroups of products is the best way to segment a market. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 3. Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 4. The ultimate goal of market segmentation is better serving the consumer while improving profitability. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 5. One key assumption that underlies market segmentation is consumer preference homogeneity. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Product Bloom's: Knowledge 6. If all humans were the same in their preferences and behaviors, market segmentation would not be needed. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 7. A target market is simply the segrnent(s) toward which a finn's marketing efforts are directed. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 8. Targeting is the process of communicating with our market segments through the use of marketing mix variables in such a way as to help consumers differentiate our product from our competition. a. True b. POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 9. The four elements of the marketing mix are product, price, position, and place. a. True b. POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 10. One unfortunate consequence of market segmentation is that consumers spend more time in search, evaluation, and purchase activities. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.02- 02.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 11. Market segmentation benefits consumers and has increased society's standard ofliving. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.02- 02.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 12. Market aggregation is the opposite of market segmentation. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 13. Market aggregation strategies ignore differences among different groups of consumers. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 14. Jungle Jim's International Market, featured in your readings, uses a market aggregation strategy. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 15. A market segment must have more than one person. a. True b. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Comprehension 16. The opposite of micromarketing is mass customization. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 17. Mass customization is the targeting of large segments, or traditionally mass markets, with highly customized products. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 18. Henry Ford, founder of the Ford Motor Co., is generally considered the first mass marketer. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Knowledge 19. The four main factors influencing market segmentation strategy are customer preference heterogeneity, the sales­ cost trade-off, the majority fallacy, and psychographies. a. True b. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Product Bloom's: Comprehension 20. Because it is logical to assume that size of a potential market segment is positively correlated to profit, pursuing the largest market segment makes sound business sense. a. True b. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Comprehension 21. Cannibalization is the phenomenon that as market segmentation increases, sales increase; but as market segmentation increases, costs also increase. a. True b. POINTS: DIFFICULTY: I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 22. Market size is a key factor that is overlooked when a manager commits the majority fallacy. a. True b. POINTS: I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product Bloom's: Comprehension 23. The majority fallacy suggests that consumers' tastes are normally distributed. a. True b. POINTS: DIFFICULTY: True I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product Bloom's: Knowledge 24. Demographic segmentation involves segmenting on the basis of cultural differences among consumers living in different cities, states, regions, or countries. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product Bloom's: Knowledge 25. Demographic bases for segmenting consumer markets include customers' vital population statistics, such as age, gender, income, and education. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 26. Demographic based segmentation is the most popular segmentation base. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 27. Geographic bases for segmenting consumer markets are based on a consumer's physical location. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 28. Horne Depot, a home-improvement retail chain, sells scorpion traps in its stores in New Mexico, Texas, Arizona, and California. This is an example of geographic segmentation. a. True b. POINTS: True 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Comprehension 29. An underlying assumption when using geographic-based segmentation is that consumers located in geographic proximity share similar product and service needs and preferences. a. True b. POINTS: DIFFICULTY: True 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 30. In the United States, as well as world-wide, people no longer want to live in cities and are moving away from urban areas. a. True b. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Comprehension 31. Geo-dernographic segmentation is sometimes called zip-code marketing. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 32. PRIZM is a segmentation tool that uses psychographies. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 33. Retail operations, such as Pottery Bam Outlet Store, Williams-Sonoma Outlet Store, Designer's Store Warehouse, and Overstock.com, that aim at appealing to the "value segment" are segmenting the market based on price. a. True b. POINTS: True I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 34. Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles ofPantene brand shampoo. This strategy represents segments based on geo-demographics. a. True b. POINTS: I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 35. People that live near one another often become more alike over time. a. True b. POINTS: DIFFICULTY: True I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 36. The V ALS System is a segmentation tool that uses behavioral-based segmentation. a. True b. POINTS: DIFFICULTY: I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 37. Within the V ALS System, Strivers have the fewest resources, often feel powerless, and are primarily concerned with safety and security. a. True b. POINTS: I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Comprehension 38. In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation. a. True b. POINTS: DIFFICULTY: I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 39. Delta Airlines now offers a preferred seating section on many flights (usually the front part of the coach section of the airplane) to appeal to and reward members of its frequent flyer club. This is an application of product usage segmentation. a. True b. POINTS: True I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Comprehension 40. Most pioneer brands position themselves as "standards of comparison." a. True b. POINTS: DIFFICULTY: True I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 41. One strategy for positioning a follower brand is to separate the brand from the market leader by creating what appears to the customer as a new product category. a. True b. POINTS: DIFFICULTY: True I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 42. According to your readings, 7Up Soda has successfully competed in the soft drink product category by pursuing a "tum a disadvantage into an advantage" positioning strategy. a. True b. POINTS: DIFFICULTY: I Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 43. The slogan, "Close-Up Toothpaste- Kissably Fresh Breath!" is an example of positioning by product user. a. True b. POINTS: I DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 44. The slogan, "Subway is fresh!" is an example of positioning by core benefit. a. True b. POINTS: True 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.11.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 45. Perceptual maps show how a company's products and competitors' products are clustered by market share. a. True b. POINTS: DIFFICULTY: 1 Moderate LEARNING OBJECTIVES: COBE.KARD.11.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills AACSB Use oflnforrnation Technology CB&C Model Customer CB&C Model Product Bloom's: Knowledge 46. Premium pricing, which is sometimes called prestige pricing, is pricing a brand at the top end of a product category's pnce range. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.11.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Pricing CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 47. Premium priciug, which is sometimes called prestige pricing, is priciug a brand at the top end of a product category's pnce range. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Pricing CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 48. Consumers tend to use price as a gauge of quality. This phenomenon is called the price-quality heuristic. a. True b. POINTS: True 1 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Pricing CB&C Model Product CB&C Model Promotion Bloom's: Knowledge Multiple Choice 49. is the process of dividing the large and diverse market into subsets of consumer who share common needs, characteristics, or behaviors. a. Market segmentation b. Market aggregation c. Branding d. Advertising e. Positioning a POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 50. is the segment(s) toward which a finn's marketing efforts are directed. a. Micromarket b. Niche market c. Target market d. Marketing Mix e. None of the above is correct. c POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 51. The four elements of the marketing mix are: a. product, price, place, and position b. price, position, place, and promotion c. place, product, price, and promotion d. promotion, place, prestige, and product e. position, price, product, and promotion c POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.01- 02.01 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 52. What marketing practice benefits the consumer and the marketer alike by encouraging the efficient use of marketing resources and information, thus improving society's standard ofliving? a. Segmentation b. Word-of-mouth marketing c. Branding d. Advertising e. Positioning POINTS: DIFFICULTY: a 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.02- 02.02 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 53. occurs when an organization chooses to aggregate the market and offer the same product or service and marketing mix to all consumers. a. Niche marketing b. Mass marketing c. Market consolidation d. Micromarketing e. Mass customization b POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 54. What phenomenon recognizes that as market segmentation increases, sales increase; but as market segmentation increases, costs also increase? a. Cannibalization b. Sales-cost trade-off c. Customer preference heterogeneity d. Majority fallacy e. Expenses to sales ratio b POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Strategy Bloom's: Knowledge 55. is the tendency for a company to focus exclusively on large, average market segments and neglect small, less typical segments. a. Repositioning b. thinking c. Market neglect d. Majority fallacy e. Market aggregation d POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Strategy Bloom's: Knowledge 56. What key factor is overlooked when a manager commits the majority fallacy? a. Competition b. Market size c. Geography d. Advertising e. Customer attitudes a POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Comprehension 57. The fact that some people prefer mint flavored-toothpaste, while others prefer cinnamon-flavored is know as: a. psychographies b. stereotyping c. cannibalization d. the majority fallacy e. customer preference heterogeneity POINTS: DIFFICULTY: e 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 58. What factor is not a relevant influence when choosing between aggregation versus segmentation strategies? a. The intuition trap b. Customer preference heterogeneity c. Sales-cost trade-off d. Majority fallacy e. All of the above are relevant influences. POINTS: DIFFICULTY: a 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Marketing Plan Bloom's: Knowledge 59. is when products offered by the same firm are so similar they compete among themselves. a. The majority fallacy b. Cannibalization c. The sales-cost trade-off d. Mass customization e. Market aggregation b POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Product CB&C Model Strategy Bloom's: Knowledge 60. Procter and Gamble offers over 10 different diaper products. Unfortunately, many of these products are similar and compete with each other. What is this consequence of segmentation? a. The majority fallacy b. Cannibalization c. The sales-cost trade-off d. Mass customization e. None of the above is correct. POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.03- 02.03 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Product CB&C Model Strategy Bloom's: Knowledge 61. Which of the following statements demonstrates the formation of a segment based on demographics? a. A local restaurant is open for breakfast and lunch, and then closes at 3:00PM. b. GE has developed a microwave that can run on batteries. c. "University Park" is a new set of student apartments rented exclusively to graduate students. d. Procter & Gamble offers a $1.00 coupon when consumers purchase three bottles of Pert Shampoo. e. Cengage Publishing Company publishes a magazine called "Taste of Living" specifically for audiences who enjoy cooking and trying new recipes. c POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 62. Which of the following is not a demographic characteristic? a. Population age distributions b. American family composition c. Changing likes and dislikes of Americans d. Average income of single Americans e. All of the above are demographic characteristics. POINTS: DIFFICULTY: c 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 63. Penturbia refers to: a. remote suburbs b. large towns/cities that have decreased in population by 10% in one year c. remote suburbs that have decreased in population by 10% in one year d. clusters of suburbs encircling cities e. None of the above is correct. POINTS: DIFFICULTY: e 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 64. An exurb refers to: a. remote suburbs b. large towns/cities that have decreased in population by 10% in one year c. small towns that have decreased in population by 10% in one year d. clusters of small towns encircling cities e. None of the above is correct. POINTS: DIFFICULTY: a 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 65. The price segmentation model divides customers into four broad categories based on the customer's "perceived pain" of paying a high price and the "perceived value" of product differentiation. A customer who is in a "Value Segment" is best characterized by which of the following? a. This customer wants the lowest price and will not make trade-offs for value-added product benefits. Getting the lowest price is the priority. b. This customer wants both the lowest price possible and the largest combination of value-added product benefits. This person "wants it all" and will search for the best combination. c. This customer is less concerned with price and wants to have a high level of product differentiation. d. This customer is not overly concerned with price or value-added product benefits, but is mainly concerned with minimizing product search and evaluation. e. This customer is highly brand loyal, perceiving value in his/her favorite brand, and will pay any price for that favored brand. b POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Comprehension 66. According to the price segmentation model in your readings, which segment represents a combination oflow "perceived pain" and high "perceived value" and is a highly desirable segment to marketers? a. The price segment b. The loyal segment c. The value segment d. The convenience segment e. The brand segment POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 67. is the measurement of lifestyle, typically defmed in terms of activities, interests, and opinions. a. Demographics b. Ethnographies c. Psychographies d. Polygraphics e. Geo-demographics c POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 68. is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, or loyalty. a. Demographic-based segmentation b. Ethnographic-based segmentation c. Psychographic-based segmentation d. Geo-demographic based segmentation e. None of the above is correct. e POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Comprehension 69. Air Walk is a brand of athletic shoes that is marketed to appeal to individuals who engage in skateboarding. This is an example of what kind of segmentation strategy? a. Benefits sought b. Price c. Psychographic d. Demographic e. Geo-demographic c POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Comprehension 70. Volvo manufactures a station wagon to meet all of the goverrnnent's strictest safety ratings, and Volvo emphasizes this in its advertising, claiming to be, "the safest car on the road." From this information, it appears that Volvo may be engaging in what type of segmentation strategy? a. Geographic b. Price c. Psychographic d. Demographic e. Benefits sought e POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Comprehension 71. Which of the following statements demonstrates the formation of a segment based on benefits sought? a. Campbell's Soup makes a spicier chili for its market in Texas than it does in Maine. b. GE built a downsized microwave oven to hang under kitchen cabinets. c. Kings Island Park offers a special discount to senior citizens. d. Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles of Pert Shampoo. e. Cengage Publishing Company publishes a magazine called "Underground" specifically for audiences who enjoy punk and alternative forms of rock music. b POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Comprehension 72. "Movers and Shakers," "City Roots," and ''Domestic Duos" are: a. psychographic profiles of urban consumers b. groups in the PRIZM system c. segments in the V ALS system d. types of positioning strategies e. None of the above are correct. POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 73. The PRIZM segmentation model discussed in your readings is based in what market segmentation strategy? a. Demographic segmentation b. Geo-dernographic segmentation c. Psychographic segmentation d. Behavioral-based segmentation e. Price segmentation POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer Bloom's: Knowledge 74. Cindy, Bob, and Tina are all college students. Cindy is a music major. While she enjoys composing and playing her own music, she doesn't have strong ambitions toward having a career. Ideally, she would like to find a nice guy (but not a business major), get married, move out to the country so she can have a garden and maybe even a horse, and teach piano lessons out of her horne. Bob is currently a frnance major, after recently changing from management. (He has also been a political science major and an engineering major- they all seem cool, but none of the majors seem to be able to hold his interest.) Besides changing majors, Bob loves to play club sports, really enjoys going to bars and socializing with his fraternity brothers, and considers himself to be fairly "hip" and "cool." Tina is an education major. Like Cindy, she eventually wants to settle down, get married, and have children, although she wants to work with children as a school teacher. Ideally, she would like to move back to her small-town horne, where the rest of her family lives. She often goes horne on the weekends because her strong Christian religion doesn't condone drinking and "partying." Based on the descriptions provided above and according to the V ALS System, which student most likely belongs to the "makers" segment? a. Cindy b. Bob c. Tina d. None of them belong to the makers segment. e. All of them belong to the makers segment. a POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Comprehension 75. Abby is an education major in college. Abby eventually wants to settle down, get married, and have children, although she wants to work with children as a school teacher. Ideally, she would like to move back to her small-town horne, where the rest of her family lives. She often goes horne on the weekends because her strong Christian religion doesn't condone drinking and "partying." According to the VALS System segmentation model, to what segmentation group does Cindy most likely belong? a. Makers b. Survivors c. Believers d. Experiencers e. Striver c POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.04- 02.04 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Multicultural and Diversity Understanding AACSB Reflective Thinking Skills CB&C Model Customer CB&C Model Promotion Bloom's: Comprehension 76. According to marketing experts, positioning is not something you do to a product, it's something you do: a. to your competitors b. in the mind of the potential customer c. to your organization and products d. to your competitor's product e. All of the above are correct. POINTS: DIFFICULTY: b 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Promotion Bloom's: Knowledge 77. Which of the following related to positioning is true? a. The first brand to enter and define a market is known as a pioneering brand. b. According to Reis and Trout, positioning is something you do to your product and your competitors' products. c. "Tylenol- The first word in relief' is an example of positioning by usage occasion. d. Perceptual maps show how our products and our competitors' product are clustered by market share. e. All of the above are true. a POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 78. Which of the following about positioning is ? a. When product benefits are difficult to communicate, positioning on price may be a good choice. b. Characters like the "Betty Crocker" help companies position by user. c. All marketing activities influence positioning and vice versa. d. Positioning on price is usually only used for luxury items. e. One advantage of using price to position is that consumers often use price to gauge quality. d POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Marketing Plan CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 79. The first brand to enter a new market often enjoys a long-term consumer preference advantage over follower brands. This phenomenon is known as what? a. Diversification effect b. Repositioning c. Majority fallacy d. Cannibalization e. Pioneering advantage e POINTS: 2 DIFFICULTY: Easy LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Product CB&C Model Promotion Bloom's: Knowledge 80. For years, Secret brand deodorant has run the slogan, "Strong enough for a man but made for a woman." This is an example of what type of positioning? a. Positioning by doing the opposite b. Positioning by turning a disadvantage into an advantage c. Positioning as a leader d. Positioning with respect to use or application e. None of the above is correct. e POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 81. For years, Campbell's Soup ran ad campaigns showing chilly kids and parents corning horne for lunch to a steaming bowl of soup. This is an example of what type of positioning? a. Positioning by doing the opposite b. Positioning by turning a disadvantage into an advantage c. Positioning as a leader d. Positioning with respect to usage situation e. Positioning by user d POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Product CB&C Model Promotion Bloom's: Comprehension 82. Politicians often market themselves by emphasizing situations in which their opponents exercised poor judgment in an attempt to get voters to change how the opponent is judged. This is an example of what type of positioning? a. User b. Attribute/benefit c. Usage Situation d. Positioning a leader e. Repositioning the competition e POINTS: 2 DIFFICULTY: Challenging LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills CB&C Model Promotion Bloom's: Comprehension 83. Marketers use perceptual maps as a means to display or graph the location of products or brands: a. with respect to the geographic areas where they are manufactured b. as they are clustered by retailer, normally in major metropolitan areas c. within distribution channels d. in the minds of consumers e. in terms of the utility created by each product attribute POINTS: DIFFICULTY: d 2 Moderate LEARNING OBJECTIVES: COBE.KARD.ll.02.05- 02.05 NATIONAL STANDARDS: United States- BUSPROG: Analytic:- BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - NONE - DISC: Individual Dynamics - Individual Dynamics AACSB Reflective Thinking Skills AACSB Use oflnformation Technology CB&C Model Customer CB&C Model Promotion Bloom's: Knowledge Essay 84. Defme segmentation, target market, and positioning. 85. Define the steps in the "divide and conquer" process described in your readings. 86. What is the goal in analyzing and engaging in the development of market segments? 87. What are the key assumptions that underlie market segmentation? 88. What are the factors that influence, and how do they influence, market segmentation strategy? 89. Identify and describe 3 examples of segmentation based on demographics. 90. Cindy, Bob, and Tina are all college students. Cindy is a music major. While she enjoys composing and playing her own music, she doesn't have strong ambitions toward having a career. Ideally, she would like to find a nice guy (but not a business major), get married, move out to the country so she can have a garden and maybe even a horse, and teach piano lessons out of her horne. Bob is currently a frnance major, after recently changing from management. (He has also been a political science major and an engineering major- they all seem cool, but none of the majors seem to be able to hold his interest.) Besides changing majors, Bob loves to play club sports, really enjoys going to bars and socializing with his fraternity brothers, and considers himself to be fairly "hip" and "cool." Tina is an education major. Like Cindy, she eventually wants to settle down, get married, and have children, although she wants to work with children as a school teacher. Ideally, she would like to move back to her small-town horne, where the rest of her family lives. She often goes horne on the weekends because her strong Christian religion doesn't condone drinking and "partying." Based on the descriptions provided above and according to the VALS segments, which student most likely belongs to the "makers" segment? 91. What is psychographies and how are markets segmented using psychographies? 92. Describe what gaps in a perceptual map might represent. 93. Imagine you work for Jonesville, Inc., a mid-sized company specializing in the manufacturing and marketing of high­ end, high-performance mountain bikes. Jonesville, Inc. recently hired an outside market research firm to assess its positioning strategy and make recommendations about future positioning strategies. The research firm submitted a perceptual map. The map's x-axis (abscissa) reflects higher quality when moving to the right, and they-axis (ordinate) reflects higher price when moving up and positioned Jonesville in the upper right-hand quadrant. The research firm recommends that Jonesville position another line of high-end mountain bikes in the lower right hand quadrant where there are no competitors and there appears to be a gap in the market. a. Your boss doesn't really understand the map. Explain to your boss what the map means. b. Evaluate the research firm's logic for the new positioning location (i.e., identify the logic's flaw). [Show More]

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