chap006-test-bank

lOMoARcPSD|3036254 Chap006 - test bank Introduction to Marketing (Simon Fraser University) StuDocu is not sponsored or endorsed by any college or university Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning Chapter 06 Segmentation, Targeting, and Positioning Multiple Choice Questions What is the first step in the STP process? A Selecting segmentation bases B Evaluating segment attractiveness C Defining mission statement D Establishing overall strategy E Selecting the target market The first step in planning process is to articulate the mission and the objectives of the company's marketing strategy clearly The segmentation strategy must be consistent with and derived from the firm's mission & objectives Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-02 Step 1: Establish Overall Strategy or Objectives Geographic segmentation refers to the segmentation of consumers based on: A the worth that they get from products or services B where they live C their product preferences D their level of intelligence E easily measured, objective characteristics such as age and education Geographic segmentation organizes customers into groups on the basis of where they live It is most useful for companies whose products satisfy needs that vary by region Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-1 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning A chainsaw company markets its products only in areas with forests In this case, the segmentation approach used by the company is: A geographic segmentation B benefit segmentation C demographic segmentation D behavioural segmentation E psychographic segmentation Geographic segmentation organizes customers into groups on the basis of where they live Hence, the chainsaw company is using geographic segmentation to segment its customers Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases A company makes packaged juices for the Canadian market, and different flavours are developed for specific regions In this case, the segmentation approach used by the company is: A geographic segmentation B benefit segmentation C demographic segmentation D occasion segmentation E psychographic segmentation Geographic segmentation organizes customers into groups on the basis of where they live Hence, the juice packaging company is using geographic segmentation to segment its customers Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-2 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning A company develops a variety of exotic breads targeted at suburban areas where large families reside, and the demand for easy breakfast options is high In this case, the segmentation approach used by the company is: A geographic segmentation B behavioural segmentation C demographic segmentation D occasion segmentation E psychographic segmentation Geographic segmentation organizes customers into groups on the basis of where they live In the given scenario, the company is using geographic segmentation because it is targeting its customers on the basis of where they live Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases Jimmy's Own Inc introduces different kinds of snacks for the Asian and European market In the context of segmentation bases, this is an example of: A geographic segmentation B benefit segmentation C demographic segmentation D loyalty segmentation E psychographic segmentation Geographic segmentation organizes customers into groups on the basis of where they live Jimmy's Own Inc is using geographic segmentation when it introduces different flavours for different geographic locations Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-3 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning Of the various methods for segmenting consumers, which of the following is the one that delves into how consumers describe themselves? A Geographic segmentation B Benefit segmentation C Demographic segmentation D Loyalty segmentation E Psychographic segmentation Of the various methods for segmenting, or breaking down the market, psychographics is the one that delves into how consumers describe themselves Psychographics allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases A new startup company decided to target Canadians between age of 18 and 35 who use iPhone mobile for their new application Which segmentation base(s) does the company use? A Demographic and behavioural segmentation B Geographic, behavioural and psychographic segmentation C Geographic and behavioural segmentation D Behavioural, demographic, and geographic segmentation E Psychographic, behavioural, and demographic segmentation The company is targeting Canadian (geographic), between age of 18 and 35 (demographic) who use iPhone (behavioural) Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-4 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning A company that sells bags launches a category of bags featuring children's favourite cartoon characters It also launches a line of stylish travel bags for adults In this case, the segmentation approach used by the company is: A geographic segmentation B benefit segmentation C demographic segmentation D occasion segmentation E psychographic segmentation Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, and income Hence, when a company uses age as a factor to segment its customer base, it is using demographic segmentation Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 10 Demographic segmentation refers to the segmentation of consumers based on: A the worth that consumers get from products or services B where the consumers live C how consumers describe themselves D the consumers' life goals E the consumers' age, gender, or education Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, education, race, occupation, religion, marital status, family size, family life cycle, and home ownership These variables represent the most common means to define segments because they are easy to identify Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-5 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning 11 A credit card company issues a special card only to those customers who spend more than $100,000 a year on its other cards In this case, the segmentation approach used by the company is: A geographic segmentation B benefit segmentation C occasion segmentation D demographic segmentation E behavioural segmentation Behavioural segmentation groups the consumer based on their usage rate IN this example, the company is targeting the heavy users of its other card to promote a new product Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 12 A sports goods manufacturing company has started creating marketing campaigns to specifically target the female market In this case, the segmentation approach used by the company is: A geographic segmentation B benefit segmentation C demographic segmentation D loyalty segmentation E psychographic segmentation Demographic segmentation groups consumers according to easily measured, objective characteristics such as age, gender, income, and education Hence, when the company creates marketing campaigns to specifically target the female market, it is using demographic segmentation to segment its consumers Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-6 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning 13 Skincare Inc., a company known for its women's skin-care products, starts offering skincare products specifically developed for single men, with income of 50k or more/year who live in large cities in the US and Canada Which segmentation approach(es) used by the company? A Geographic, demographic, and behavioural segmentation B Behavioural and demographic segmentation C Demographic and geographic segmentation D Demographic, benefit and geographic segmentation E Psychographic and geographic segmentation Demographics: marital status, gender, and income Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 14 A lifestyle store deals with expensive and aesthetic products Most of its target customers belong to the elite class of society who want to make a style statement associated with exclusivity In this case, the segmentation approach used by the store is: A geographic segmentation B benefit segmentation C demographic segmentation D loyalty segmentation E psychographic segmentation Psychographic segmentation segments people based on their lifestyle, personality, or social class Hence, when the lifestyle store specifically targets the elite class of society, it is using psychographic segmentation Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-7 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning 15 An automobile ad is created in such a way that it appeals to people who value individuality The company aims at grouping customers based on their personality characteristics This is an example of: A geographic segmentation B benefit segmentation C demographic segmentation D occasion segmentation E psychographic segmentation Psychographic segmentation segments people based on their self-concept or personality Hence, when the automobile ad targets people who value individuality, it is using psychographic segmentation Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 16 A furniture manufacturer deals in furniture with antique designs The furniture mimics the designs used in royal households and provides customers with a means of self-expression People who buy such furniture feel like they are part of a royal family In this case, the segmentation approach used by the manufacturer is: A geographic segmentation B behavioural segmentation C demographic segmentation D geodemographic segmentation E psychographic segmentation Psychographic segmentation delves into how consumers describe themselves, and it allows people to describe themselves by using those characteristics Hence, in the given scenario, the furniture manufacturer is using psychographic segmentation when it targets its customers based on their lifestyle preferences Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-8 Downloaded by Khanh Linh (khanhlinh19699@gmail.com) lOMoARcPSD|3036254 Chapter 06 - Segmentation, Targeting, and Positioning 17 Goals for life, not just the goals one wants to accomplish in a day, are called: A self-concepts B ideal points C self-values D lifestyles E self-morals Self-values are life goals, not just the goals one wants to accomplish in a day They refer to overriding desires that drive how a person lives his or her life Examples of self-value goals might include self-respect, self-fulfillment, or a sense of belonging Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 18 Which of the following allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices? A Demographics B Psychographics C Geodemographics D Chromodynamics E Matronymics Psychographic segmentation delves into how consumers describe themselves, and it allows people to describe themselves by using those characteristics that help them choose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 06-01 Describe the bases marketers use to segment a market Topic: 06-03 Step 2: Segmentation Bases 6-9 Downloaded by Khanh Linh (khanhlinh19699@gmail.com)