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cóPrinciples of Marketing, 14e (Kotler)
Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target Customers

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) adapted marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
Answer: C
Diff: 2 Page Ref: 190
Skill: Concept
Objective: 7-1

2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C

Diff: 2 Page Ref: 190
Skill: Concept
Objective: 7-1

3) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way
B) is no single way
C) is a most effective way
D) are limited ways
E) are four ways
Answer: B
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-2

4) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic
B) benefit
C) end-use
D) customer
E) image
Answer: A
Diff: 1 Page Ref: 191
Skill: Concept
Objective: 7-2
5) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic
B) behavioral
C) lifestyle
D) demographic
E) psychographic
Answer: D
Diff: 1 Page Ref: 191
AACSB: Multicultural and Diversity Understanding
Skill: Concept
Objective: 7-2

6) Which of the following is the most popular method for segmenting markets? A) demographic
B) gender
C) psychographic
D) behavioral
E) geographic
Answer: A
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-2

7) Demographic variables are frequently used in market segmentation because they ________. A) create smaller segments than other methods do
B) create more easily reached segments than other methods do C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do Answer: D
Diff: 2 Page Ref: 191
Skill: Concept
Objective: 7-2

8) Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation? A) underestimating
B) stereotyping
C) traditional marketing
D) cultural bias
E) gender bias
Answer: B
Diff: 2 Page Ref: 193
AACSB: Multicultural and Diversity Understanding
Skill: Concept
Objective: 7-2
9) When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most likely uses which type of segmentation? A) readiness
B) gender
C) behavior
D) occasions
E) geographic
Answer: B
Diff: 2 Page Ref: 193
AACSB: Multicultural and Diversity Understanding
Skill: Concept
Objective: 7-2

10) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender
B) income
C) occasion
D) usage rate
E) readiness stage
Answer: B
Diff: 2 Page Ref: 194
AACSB: Multicultural and Diversity Understanding
Skill: Concept
Objective: 7-2

11) Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation. A) demographic
B) behavioral
C) social class
D) psychographic
E) user status
Answer: D
Diff: 2 Page Ref: 194
Skill: Concept
Objective: 7-2

12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A)...
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