CHAPTER 7

Question 1) The characteristics of foundational customers rarely explain brand choice behavior. They are primarily descriptive. They describe who the consumer is, but they do not explore the underlying reason ________ consumers behave as they do.

• How

• What

• Where

• why

• When

Question 2) Positioning is the action of designing a product and the company's image so that they occupy a meaningful and differentiated competitive position in ____________ target.

• customers

• market space

• competitors

• customers' minds

• the market

Question 3) Segments formed based on brand preferences can be further described in terms of demographics and _____________ to allow for the relevant media to be selected for advertising purposes and to build a complete picture of the chosen segments.

• behavior

• geography

• personality

• psychology

• attitude

Question 4) ___________ the segment related to management concerns for strategic intent and the company's mission, based on the use of products/services and customer benefits.

• Strategy

• Management

• Dynamic

• Tactical

• Competitive

Question 5) The lifestyle segment is related to three main factors: customer activities, interactions with others, and ________________.

• socialization

• opinions

• preferences

• values

• perception

Question 6) One way to describe a company's competitive position is the concept of ______________ – a promise made to customers that summarizes the position we want to compare with competitors.

• value proposition

• positioning statement

• competitive advantage

• competitive advantage

• market proposal

Question 7) In some cases, the benefit segmentation of customers is unacceptable to those within the organization, as it is not how they understand the world. This is a problem of __________.

• Organizational structure

• Information and reporting

• Operational systems

• Corporate culture

• Decision-making process

Question 8) Among the various bases for segmentation, the most commonly used characteristics are _________________ and demographic/socioeconomic factors, mainly because this type of data is easy to collect from secondary sources.

• Perceptions and preferences

• Benefit-seeking

• Geography

• Product and brand usage

• Lifestyle and values

Question 9) Market segmentation should begin by identifying different usage/benefit segments known as first-level segmentation. Second-level segmentation is used to enhance the company's ability to adjust ____________ within a first-level segment.

• price

• distribution

• marketing mix

• communication

• product

Question 10) Due to the presence of large individual customers in many business markets, _____________ is often used.

• segmentation based on usage level

• segmentation based on platform

• segmentation based on geography

• segmentation based on benefits

• segmentation based on attitude