Chapter 8- Marketing

Population data within geographic limits, the number of people broken down according to age, and other social and demographic characteristics provide concrete measures of segment size and are easy to obtain.

• True

• False

In Mexico, Walmart has built stores with wider aisles than in U.S. stores. Walmart made this adjustment because in Mexico families have the habit of shopping together such that one family might bring six people to Walmart to shop. This example shows that _______.

• segmentation helps Walmart decision makers align with local customs

• Walmart should standardize all stores worldwide

• segmentation identifies the needs of all Walmart customers

• customer needs are the same worldwide

Which statement is true of product positioning?

• The quality of competing products does not influence product positioning.

• It is a process that influences potential customers' overall perception of a brand and product line.

• It assumes that consumers compare products solely on the basis of price.

• There are two positioning bases: application and price.

A concentrated strategy can be disastrous for a firm that is not successful in its narrowly defined target market.

• True

• False

Chipotle stated it was "in the market for Mexican food" by competing on quality instead of price. Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market?

• Multisegment targeting

• Differentiated marketing

• Undifferentiated targeting

• Concentrated targeting

When markets are segmented, performance cannot be better evaluated because objectives are less precise.

• True

• False

The way customers use a product has an influence on how much they buy, their buying criteria, and their choice of vendors.

• True

• False

Encore Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Operator 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Encore Inc.'s other cars. This scenario exemplifies _______.

• segmentation

• personalization

• differentiation

• cannibalization

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and _______.

• review general activity on the website

• enables businesses to personalize their messages

• position the product

• choose which segment or segments to target

The 80/20 principle holds that 20% of all customers generate 80% of the demand. Although the percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here?

• Market segmentation

• Usage-rate segmentation

• Geographic segmentation

• Benefit segmentation