QUIZ 2 BPMM1013 A201 Second Set

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include the following ________.

i. buyers are too numerous

ii. companies vary widely in their abilities to serve different market segments

iii. buyers are varied in their needs and buying practices

iv. companies need more information to offer the right products to the right customers

• i, ii and iii

• ii, iii and iv

• i, ii and iv

• i, iii and iv

The following satements about behavioral segmentation on the basis of the loyalty variable are FALSE ___________

i. Consumers tend to pay more for products that are targeted at their respective age group or generation.

ii. By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.

iii. Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.

iv. Completely loyal customers of a brand are typically loyal to two or three brands of a given product.

• i, ii and iii

• ii, iii and iv

• i, iii and iv.

• all the above

Which of the following statement about multivariable segmentation systems is FALSE?

i. Marketers using multiple segmentation bases tend to ignore smaller markets.

ii. Marketers often use multiple segmentation bases to control inflation.

iii. Multiple segmentation rarely involves the use of demographic data.

iv. Multiple segmentation bases help identify smaller, better-defined target groups.

• i, ii and iii

• ii, iii and iv

• i, iii and iv

• i, ii and iv

Which of the following are the BENEFITS of using multivariable segmentation systems?

i. help companies identify key customer segments

ii. help companies reach key customer segments more efficiently

iii. help companies more accurately price their products to appeal to key customer segments

iv. help companies better understand key customer segments

• i, ii and iii

• ii, iii and iv

• i, iii and iv

• i, ii and iv

Which of the following DO NOT refer to a cultural factor in the context of segmenting international markets?

i. economic development of the country

ii. population income levels

iii. stability of the government

iv. values and attitudes

• i, ii and iii

• ii, iii and iv

• i, iii and iv

• i, ii and iv

Market targeting is ________.

• arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

• dividing a market into distinct groups of buyers who have different needs and characteristics

• evaluating segment attractiveness and deciding how many and which segment(s) to serve

• marketing to buyers with separate marketing strategies or mixes

Which of the following is a disadvantage of using a differentiated marketing strategy?

• It generates far lower sales compared to an undifferentiated marketing strategy.

• Customer loyalty is negatively impacted and difficult to obtain.

• The costs of doing business increase.

• Quality control problems increase.

Which of the following is FALSE about the concentrated marketing strategy?

i. Companies that rely on a few segments for all of their business will suffer if a segment turns sour.

ii. Concentrated marketing is not profitable for most firms.

iii. Niche marketing involves few risks for most firms.

iv. Concentrated marketing involves going after a small share of a large market.

• i, ii and iii

• ii, iii and iv

• i, iii and iv

• i, ii and iv

Which of the following is a drawback of local marketing?

• Local marketing cannot accommodate the needs of modern buyers who are technology savvy.

• Local marketing is not profitable for most small firms.

• Local marketing requires specialization that is difficult to identify.

• Local marketing increases manufacturing costs by reducing the economies of scale.

When competitors use differentiated marketing to focus on the customer's needs, a firm should use undifferentiated marketing to compete with them.

• TRUE

• FALSE