Customer Driven Marketing Strategy: Creating Value for Target Customers

Topics: Marketing, Product differentiation, Market segmentation Pages: 50 (7977 words) Published: December 3, 2013
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) concentrated marketing
B) mass marketing
C) market targeting
D) segmenting
E) differentiation
Answer: C
Diff: 2Page Ref: 191
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: 2Page Ref: 191
Skill: Concept
Objective: 7-1

3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently

B) effectively
C) intensely
D) indirectly
E) both A and B
Answer: E
Diff: 2Page Ref: 192
Skill: Concept
Objective: 7-2

4) 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: 2Page Ref: 192
Skill: Concept
Objective: 7-2
5) 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: 1Page Ref: 193
Skill: Concept
Objective: 7-2

6) 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: 1Page Ref: 194
Skill: Concept
Objective: 7-2

7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic
B) gender
C) psychographic
D) behavioral
E) geographic
Answer: A
Diff: 2Page Ref: 194
Skill: Concept
Objective: 7-2

8) Demographic variables are so 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: 2Page Ref: 194
Skill: Concept
Objective: 7-2
9) 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: 2Page Ref: 194
AACSB: Ethical Reasoning
Skill: Concept
Objective: 7-2

10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? A) age and life cycle
B) gender
C) behavior
D) psychographic
E) geographic
Answer: B
Diff: 2Page Ref: 195
Skill: Concept
Objective: 7-2
11) 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) benefits sought
Answer: B
Diff: 2Page Ref: 195
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) behavioral
B) psychographic
C) age and life cycle
D) demographic
E) geographic
Answer: A
Diff: 1...
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