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Basic Marketing: A Global Managerial Approach, 10/e

Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Finding Target Markets through Segmentation

Quiz Questions


1	A generic market description includes product-type terms.
		A)	True
		B)	False


2	Combiners are firms that try to increase the size of their target markets by combining two or more segments.
		A)	True
		B)	False


3	It may make sense to have a segment consisting of only a single customer.
		A)	True
		B)	False


4	Qualifying dimensions are those that actually affect the consumer's purchase of a specific product or brand in a product-market.
		A)	True
		B)	False


5	Positioning shows how customers think about proposed and/or present brands in a market.
		A)	True
		B)	False


6	Prior to selecting a target marketing approach, an organization must:
		A)	have a product to sell.
		B)	name broad product markets and segment them into possible target markets.
		C)	set up production schedules.
		D)	attempt a mass market approach.
		E)	avoid learning more about potential customer groups and their needs and preferences.


7	Describing markets in terms of products they sell is commonly done by:
		A)	product managers.
		B)	customer service managers.
		C)	marketing managers.
		D)	production-oriented managers.
		E)	none of the above.


8	A better way to define a market than by product is by:
		A)	sales volume.
		B)	market size.
		C)	customer needs.
		D)	how long the market has existed.
		E)	ease of entry into the market.


9	Status seekers are an example of a:
		A)	generic market.
		B)	product market.
		C)	narrow market.
		D)	close substitute.
		E)	money-losing opportunity.


10	A complete product-market definition includes:
		A)	product type.
		B)	customer (user) needs.
		C)	customer types.
		D)	geographic area.
		E)	all of the above.


11	A credit union offers its members a regular credit card and chequing account. A competing bank from the United States offers a variety of credit cards, all of which are essentially the same as the one offered by the credit union except for their colour (Gold) or association with an organization (alumni association or charity; these are known as "affinity cards"). Both the credit union's and bank's credit cards:
		A)	are targeted at the same consumers.
		B)	provide the same functional benefits.
		C)	compete with chequing accounts as a method of payment.
		D)	both b and c.
		E)	a, b, and c.


12	Referring to question 11, emotional needs are satisfied by:
		A)	the chequing account.
		B)	the regular credit union credit card.
		C)	the Gold and affinity credit cards.
		D)	both b and c.
		E)	a, b, and c.


13	A market segment:
		A)	is a heterogeneous group of customers.
		B)	will respond to a marketing mix in a similar way.
		C)	contains consumers who are different from one another.
		D)	cannot be profitably served by an organization.
		E)	is best served with a "one size fits all" approach.


14	Customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. This best describes which of the following segmenting criteria?
		A)	homogeneous within.
		B)	heterogeneous between.
		C)	substantial.
		D)	operational.
		E)	none of the above.


15	The segment should be large enough to be profitable. This best describes which of the following segmenting criteria?
		A)	homogeneous within.
		B)	heterogeneous between.
		C)	substantial.
		D)	operational.
		E)	none of the above.


16	Which of the following segments would be the least operational?
		A)	fishermen in Newfoundland coastal communities.
		B)	loggers in the British Columbia interior earning $50,000 or more.
		C)	mothers in their mid-thirties living in Iqaluit.
		D)	urban people who like to talk.
		E)	previous customers who spent more than $60.


17	A segmenter can use:
		A)	a single target market approach.
		B)	a multiple target market approach.
		C)	both a and b
		D)	a combined target market approach.
		E)	a mass market approach.


18	As the combining of segments increases:
		A)	risk declines.
		B)	sales may grow too quickly for a firm to handle.
		C)	the marketing mix chosen will appeal to more consumers in the combined segments.
		D)	customer satisfaction increases.
		E)	a competitor may enter the market, better catering to one of the combined segments.


19	An airline established a call centre and Web site to promote its economy-class vacation destinations. The same airline sent sales representatives to visit the largest travel agencies in the business district to promote its business-class services. This airline is using a:
		A)	single target market approach.
		B)	multiple target market approach.
		C)	combined target market approach.
		D)	mass market approach.
		E)	promotional approach.


20	A rival "no frills" airline has only one class of service and caters to both business and leisure travellers. It is using a:
		A)	no frills approach.
		B)	multiple target market approach.
		C)	combined target market approach.
		D)	mass market approach.
		E)	promotional approach.


21	For most business airline passengers, a determining dimension in selecting an airline may be:
		A)	flight schedule (time of departure and arrival).
		B)	weight of baggage allowed.
		C)	choice of food served in flight.
		D)	free newspaper and massage in departure lounge.
		E)	friendliness of call centre operators.


22	Approaches to find similar patterns within sets of data are known as:
		A)	clustering techniques.
		B)	positioning.
		C)	lifestyle analysis.
		D)	databasing.
		E)	sequencing.

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