general business data bank

81. Research has shown that income is a highly accurate predictor of the “best” customers for a given product.

82. If you went to college in the late 1960s, you are most likely to be in a cohort shaped by the Viet Nam War.

83. The largest American generation of the twentieth century (78 million people) is considered to be the GI Generation that fought in World War II.

84. A sixty year-old man is coping with his advancing hair loss; therefore, he is dealing with what is called physiographics.

85. Psychographics is the science of using psychology and demographics to better understand consumers.

86. Generation Xis considered to be a hot market because of their size, consumer savvy, and their ability to be “wired-in” to contemporary trends.

87. Forty-seven percent of 21-year-olds own a mobile phone.

88. In the VALS segmentation system, Thinkers are characterized as being successful, sophisticated, active, “take-charge” people with high self-esteem.

89. According to the VALS segmentation system, the Strivers are at bottom of the typology with the lowest resources and lowest with respect to innovation.

90. When Mobil Oil Company researched its market based on benefit expectations, it found that the largest segment (Price Shoppers) with a 27 percent share wanted fast fuel, branded products, and convenience.

91. An organization that could benefit from using User Status as a means for segmenting its market would be a local blood bank.

92. Marketers would rather attract one heavy user than several light users.

93. With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.

94. The most important variable in segmenting a business market is demographics.

95. Typical categories that would appear under the heading of situational factor segmentation variables in the business marketplace would be urgency, specific application, and size of order.

96. The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

97. To be useful, market segments must have as one of their characteristics the ability to be measured.

98. As a pattern found in target market selection, market specialization means that the company offers one product to as many markets as possible.

99. If a marketer is blocked from entering a market, the strategy of megamarketing can be used to assist in breaking into that market.

100. Market partitioning is process of focusing on a desired position in the marketplace and then accumulating the resources to protect and defend that position.

Essay

101. Market segments can be defined in many different ways. One way to carve up a market is to identify preference segments. List and briefly characterize three preference segments cited in the text.

102. Columbia University’s Bernd Schmitt believes that marketers can provide experiences for customers through a set of experience providers. List and briefly discuss the seven experience providers recommended by Schmitt.

103. A new trend in marketing is toward customerization. Describe what customerization is and how marketers are using it.

104. There are several major segmentation variables that might be used by a marketer to address a consumer market. If the marketer were to use social class, psychographic lifestyle, and readiness stage to segment its market, identify possible segmentation subcategories under each of the three. For example, if we were to segment based on usage rate, subcategories would be light user, medium user, and heavy user.

105. Briefly profile the American generations labeled as Baby boomers, Generation X, Generation Y, and Millennials.

106. Marketing to Generation Y is a challenge because of their size and characteristics. Because they are often turned off by overt branding practices and a “hard sell,” marketers have tried many different approaches to reach and persuade Gen Y. The text mentions seven methods for accomplishing this task. List and briefly discuss four of those methods.

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107. The VALS segmentation system has evolved into an 8-part typology. List and briefly describe any four categories of that 8-part typology.

108. If a marketer were to segment a business market on the basis of demographics, what three subcategory segmentation variables would probably be used to assist with this form of segmentation? What questions would be asked in each of the three categories to advance the segmentation effort?

109. To be useful, market segments must rate favorably on five key criteria. What are those criteria?

110. The text describes five possible patterns for target market selection. Describe the pattern called selective specialization.

APPLICATION QUESTIONS

Multiple Choice

111. According one expert from J. Walter Thompson’s Mature Marketing Group, “everyone over 45 is lumped into a category called old.” However, the expert points out that this strategy is faulty. Seniors, particularly boomers-turned-seniors, often make buying decisions based on ________.

a. price, not quality

b.lifestyle, not age

c. age perception

d. what their children buy

e. dreams, not realities

112. When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing what is called ________.

a. primary marketing

b. micromarketing

c. macromarketing

d. segmented marketing

e. mass marketing

113. The marketer ________ the segments; the marketer’s task is to identify the segments and decide which one(s) to target.

a. plans

b. creates

c. does not create

d. rarely controls

e. controls

114. Anderson and Narus have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which of those parts contains the product and service elements that all segment members’ value?

a. Naked solution

b. Discretionary solution

c. Maximum solution

d. Pseudo solution

e. Virtual solution

115. Enterprise Rent-A-Car has challenged Hertz’s supremacy in the rental car market by tailoring its marketing program to a relatively neglected target market. Which of the following would be the most accurate description of that market?

a. The singles market.

b. The soccer mom market.

c. The business traveler market.

d. The low-budget, insurance-replacement market.

e. The vacationer market.

116. The recipe for Internet niching success is to ________.

a. find a need and fill it

b. choose a hard-to-find product that customers do not need to see and touch

c. choose a low-budget product that is heavily demanded by Gen Y

d. choose an exclusive product sold primarily to seniors

e. find a product that has some attraction to a health-conscious market

117. One marketing commentator said, “The idea is not to sell something, but to demonstrate how a brand can enrich a customer’s life.” Which of the following forms of marketing was the commentator describing?

a. Experiential marketing

b. Niche marketing

c. Benefit marketing

d. Viral marketing

e. Virtual marketing

118. If you were a marketing manager that was considering implementing the concept of customer experience management (CEM), you would follow all of the following steps EXCEPT ________.

a. analyzing the experiential world of the customer

b. building the experiential platform

c. designing the segmentation portfolio

d. structuring the customer interface

e. engaging in continuous innovation

119. Home furnishing retailer Bed Bath & Beyond’s ability to cater to local tastes has fueled its phenomenal growth. Bed Bath & Beyond’s managers pick ________ of their own merchandise, and this local focus has helped the chain evolve from one that began selling little more than bed linens to the “beyond” part—products ranging from picture frames and pot holders to imported olive oil and designer door mats.

a. 40 percent

b. 50 percent

c. 25 percent

d. 70 percent

e. 90 percent

120. If a marketing researcher saw such names (categories) Blue Blood Estates, Winner’s Circle, Hometown Retired, or Shotguns and Pickupswhen doing segmentation research, the marketing researcher would most likely be dealing with ________ clusters.

a.PRIZM

b.geodemographic

c.psychographic

d. demographic

e.VALS