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Kotler mcqs with answers for help
Marketing Principles (MKTG102101)
Boston College
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GENERAL CONCEPT QUESTIONS
Multiple Choice
Instead of scattering their marketing effort (a “shotgun” approach), many companies are now embracing target marketing where the focus is on those consumers that they have the greatest chance of satisfying (a ________ approach) with their products and services. a. “rifle” b. “focused” c. “niche” d. “macro” e. “micro” Answer: a Page: 240 Level of difficulty: Easy
In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers. a. group b. mass c. general d. segmented e. differentiated Answer: b Page: 240 Level of difficulty: Medium
The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins. a. niche b. micro c. macro d. differentiated e. mass Answer: e Page: 240 Level of difficulty: Medium
A ________ consists of a group of customers who share a similar set of needs and wants. a. market target b. market group c. market slice d. market segment e. market level Answer: d Page: 240 Level of difficulty: Medium
A ________ consists of two parts: a naked solution and discretionary options. a. differentiated market offering b. flexible market offering c. rigid market offering d. vertical market offering e. horizontal market offering Answer: b Page: 241 Level of difficulty: Hard
If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern. a. homogeneous b. heterogeneous c. diffused d. clustered e. scattered Answer: a Page: 241 Level of difficulty: Medium
Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain- removal, et cetera. Which of the following preferences pattern would most likely apply to P&G’s method of response to market needs? a. Homogeneous preferences. b. Diffused preferences. c. Clustered preferences. d. Psychological preferences. e. Cultural preferences. Answer: c Page: 242 Level of difficulty: Medium
Marketers usually identify niches by ________. a. dividing a segment into subsegments b. conducting VALS tests c. allowing consumers to gravitate toward product brands d. examining the demographics section of The Handbook of Marketing e. producing products that can be used in a variety of ways Answer: a Page: 242 Level of difficulty: Medium
________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice. a. Consumptionization b. Viral marketing c. Virtual marketing d. Regionalization e. Customerization Answer: e Page: 246 Level of difficulty: Medium
Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations. a. gender b. income c. cultural d. interest e. behavioral Answer: e Page: 247 Level of difficulty: Medium
If a marketer decides that segmenting a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation. a. demographic b. psychographic c. geographic d. cultural e. social class Answer: c Page: 247 Level of difficulty: Easy
According to established methods of segmenting markets, all of the following would an appropriate segment category if the family life cycle was the segmentation base ACCEPT ________. a. young, single b. male, female c. young, married d. older, married, no children under 18 e. young, married, youngest child 6 or over Answer: b Page: 248 Level of difficulty: Medium
A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets. a. personality b. behavioral occasions c. user status d. psychographic lifestyle e. readiness stage Answer: d Page: 248 Level of difficulty: Medium
PRIZM (Potential Rating Index by Zip Markets) identifies clusters of consumers based on a variety of characteristics such as education and affluence. Which of the following clusters would match to a consumer group that is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late and are still raising children in comfortable suburban subdivisions and are still pursuing kid-centered lifestyles. a. The cosmopolitans b. Beltway boomers c. Young digerati d. Winner’s circle e. Blue bloods Answer: b Page: 249 Level of difficulty: Hard
Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika? a. Life stage b. Benefits c. Age segment d. User segment e. Occasion segment Answer: a Page: 250 Level of difficulty: Medium
Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on ________. a. income b. occupation c. socialization d. heredity e. globalization Answer: c Page: 250 Level of difficulty: Medium
According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, “take-charge” people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services. a. innovators b. thinkers c. achievers d. experiencers e. believers Answer: a Page: 254 Level of difficulty: Hard
According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favorite brands. a. believers b. strivers c. makers d. survivors e. experiencers Answer: d Page: 254 Level of difficulty: Medium
A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing? a. Initiator b. Influencer c. Decider d. Buyer e. Gatekeeper Answer: a Page: 255 Level of difficulty: Easy
With respect to occasion segmentation, Christmas, Valentine’s Day, and ________ account for just over half of gifters’ budgets. a. Halloween b. Father’s Day c. Mother’s Day d. Thanksgiving e. Independence Day Answer: c Page: 256 Level of difficulty: Medium
Mobil identified five different benefit segments for which products and services could be designed. ________ (27 percent of the market) shops Mobil outlets for fast fuel, fast service, and fast food. a. Road warriors b. Generation F c. True blues d. Home bodies e. Price shoppers Answer: b Page: 256 Level of difficulty: Hard
With respect to user status (a segmentation possibility), ________ tend to focus on attracting potential users because they have the most to gain. a. smaller firms b. niche firms c. followers d. aggressive specialists e. market-share leaders Answer: e Page: 256 Level of difficulty: Hard
If a market is segmented according to light, medium, and heavy product users, the marketer segmenting this market is using the ________ as the means to segment. a. user status b. usage rate c. buyer-readiness stage d. occasion e. benefit Answer: b Page: 256 Level of difficulty: Easy
If a buyer is loyal to two or three different brands of soap, this buyer’s loyalty status can be described as being among the ________. a. switchers b. shifting loyals c. split loyals d. hard-core loyals e. anti-loyals Answer: c Page: 256 Level of difficulty: Easy
A company can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive with its own. a. hard-core loyals b. split loyals c. shifting loyals d. switchers e. anti-loyals Answer: b Page: 257 Level of difficulty: Hard
A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would most likely be used by the marketer to assist with the task? a. Demographic b. Purchasing approaches c. Situational factors d. Personal characteristics e. Operating variables Answer: e Page: 259 Level of difficulty: Hard
A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk. a. situational factors b. purchasing approaches c. personal characteristics d. operating variables e. demographics Answer: c Page: 259 Level of difficulty: Medium
A company can be said to have used ________ if the company distinguished customers buying on the basis of price, service, and quality. a. macrosegmentation b. microsegmentation c. strategic segmentation d. global segmentation e. short-term segmentation Answer: b Page: 260 Level of difficulty: Hard
Business buyers seek different bundles based on their stage in the purchase decision process. ________ are customers who are starting their purchasing relationship and they want easy-to-read manuals, hot lines, high levels of training, and knowledgeable sales reps. a. First-time prospects b. Sophisticates c. Global partners d. Trend-setters e. Novices Answer: e Page: 260 Level of difficulty: Hard
If your marketing department established a priority in reaching solution-oriented customers (e., those that want value through more benefits and advice), ________ would be the best means for connecting with these customers. a. transaction selling b. consultative selling c. enterprise selling d. dual selling e. psychological selling Answer: b Page: 261 Level of difficulty: Medium
During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? a. Step 2—segment identification b. Step 3—segment attractiveness c. Step 6—segment “acid test” d. Step 1—needs-based segmentation e. Step 7—marketing-mix strategy Answer: d Page: 261 Level of difficulty: Medium
If an organization’s marketing department wished to create “segment storyboards” to test the attractiveness of each segment’s positioning strategy, this action would most likely occur in the ________ step of the segmentation process. a. needs-based segmentation b. segment identification c. segment profitability d. segment “acid test” e. marketing-mix strategy Answer: d Page: 261 Level of difficulty: Hard
To be useful, market segments must rate favorably on five key criteria. In the ________ criterion, effective programs can be formulated for attracting and serving the segments. a. measurable b. substantial c. accessible d. differentiable e. actionable Answer: e Page: 262 Level of difficulty: Medium
The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________. a. no synergy exists b. logistics can become a nightmare c. the product may be supplanted by an entirely new technology d. competitors can easily copy any new product introductions e. e-commerce becomes difficult for the company Answer: c Page: 263 Level of difficulty: Hard
With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group. a. single-segment concentration b. selective specialization c. product specialization d. market specialization e. full market coverage Answer: d Page: 263 Level of difficulty: Easy
The two ways that large firms can cover a whole market (e., full market coverage strategy) are through ________ and differentiated marketing. a. undifferentiated b. logistical c. psychological d. niche e. macromarketing Answer: a Page: 263 Level of difficulty: Easy
In ________ marketing, the firm operates in several market segments and designs different products for each segment. a. segmented b. undifferentiated c. differentiated d. geodemographic e. niche Answer: c Page: 263 Level of difficulty: Easy
The best way to manage multiple segments is to appoint ________ with sufficient authority and responsibility for building the segment’s business. a. a product champion b. segment managers c. promotion managers d. strategic managers e. mid-level managers Answer: b Page: 263 Level of difficulty: Easy
All of the following costs are likely to be higher if a marketer pursues a differentiated marketing approach EXCEPT ________. a. product modification costs b. manufacturing costs c. administrative costs d. inventory costs e. pricing costs Answer: e Page: 264 Level of difficulty: Hard
________ is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market. a. Metamarketing b. Macromarketing c. Micromarketing d. Megamarketing e. Modular marketing Answer: d Page: 265 Level of difficulty: Medium
One way to discover new market segments is to investigate the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies. This process is called ________. a. market partitioning b. market positioning c. market segmentation d. strategic marketing e. brand marketing Answer: a Page: 266 Level of difficulty: Medium
Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way? a. McDonald’s marketing to inner-city youth. b. R. J. Reynolds marketing of the Kool brand. c. Colgate-Palmolive’s Colgate Junior toothpaste. d. The cereal industry’s approaches to children. e. G. Heileman Brewing’s approach to Colt 45 malt liquor. Answer: c Page: 267 Level of difficulty: Medium
True/False
Markets are almost always homogeneous. Answer: False Page: 239 Level of difficulty: Easy
Two broad groups of variables are used to segment consumer markets: geographic and demographic variables. Answer: False Page: 247 Level of difficulty: Medium
75. Typical groupings (segments) that might be designated using the geographic method of segmentation might be density, climate, or city/metro size. Answer: True Page: 248 Level of difficulty: Hard
Illustrations of personality segmentation would include culture-oriented, sports- centered, or outdoor-oriented subsegments. Answer: False Page: 248 Level of difficulty: Medium
According to a new PRIZM cluster configuration, the Cosmopolitan tends to locate in cities such as Las Vegas, Miami, or Albuquerque. Answer: True Page: 249 Level of difficulty: Hard
A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach. Answer: True Page: 249 Level of difficulty: Medium
Life stage defines a person’s age. Answer: False Page: 250 Level of difficulty: Medium
Men and women have different attitudinal and behavioral orientations caused mainly by their genetic makeup. Answer: False Page: 250 Level of difficulty: Hard
Research has shown that income is a highly accurate predictor of the “best” customers for a given product. Answer: False Page: 251 Level of difficulty: Medium
If you went to college in the late 1960s, you are most likely to be in a cohort shaped by the Viet Nam War. Answer: True Page: 251 Level of difficulty: Medium
The largest American generation of the twentieth century (78 million people) is considered to be the GI Generation that fought in World War II. Answer: False Page: 252 Level of difficulty: Medium
A sixty year-old man is coping with his advancing hair loss; therefore, he is dealing with what is called physiographics. Answer: True Page: 252 Level of difficulty: Hard
Psychographics is the science of using psychology and demographics to better understand consumers. Answer: True Page: 252 Level of difficulty: Easy
Generation X is considered to be a hot market because of their size, consumer savvy, and their ability to be “wired-in” to contemporary trends. Answer: False Page: 253 Level of difficulty: Medium
Forty-seven percent of 21-year-olds own a mobile phone. Answer: True Page: 253 Level of difficulty: Medium
In the VALS segmentation system, Thinkers are characterized as being successful, sophisticated, active, “take-charge” people with high self-esteem. Answer: False Page: 254 Level of difficulty: Hard
According to the VALS segmentation system, the Strivers are at bottom of the typology with the lowest resources and lowest with respect to innovation. Answer: False Page: 254 Level of difficulty: Medium
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. Answer: False Page: 256 Level of difficulty: Hard
An organization that could benefit from using User Status as a means for segmenting its market would be a local blood bank. Answer: True Page: 256 Level of difficulty: Medium
Marketers would rather attract one heavy user than several light users. Answer: True Page: 256 Level of difficulty: Easy
With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal. Answer: False Pages: 256–257 Level of difficulty: Medium
The most important variable in segmenting a business market is demographics. Answer: True Page: 258 Level of difficulty: Medium
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. Answer: True Page: 259 Level of difficulty: Hard
The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies. Answer: True Page: 261 Level of difficulty: Medium
design the product or service offering of their choice. A company is customerized when it is able to respond to individual customers by customizing its products, services, and messages on a one-to-one basis. Page: 246 Level of difficulty: Medium
- 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.
Suggested Answer: First, social class would yield the subcategories of lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, and upper uppers. Second, psychographic lifestyles would yield culture-oriented, sports-oriented, and outdoor-oriented. Lastly, readiness stage would yield unaware, aware, informed, interested, desirous, and intending to buy. Other sub- categories might be possible. The list above comes from Table 8. If you wish to deviate from this table, be sure set ground rules for the students. Page: 248 Level of difficulty: Hard
- Briefly profile the American generations labeled as Baby boomers, Generation X, Generation Y, and Millennials.
Suggested Answer: According to information presented in the text, (1) Baby boomers (78 million people) were born 1946–1964 and are depicted as great acquisitors, they are value- and cause-driven despite indulgences and hedonism; (2) Generation X (57 million people) were born 1966–1977 and are depicted as cynical and media-savvy, they are more alienated and individualistic; (3) Generation Y (60 million people) were born 1977–1994 and are depicted as edgy, focused on urban style, they are more idealistic than Generation X; and, (4) Millennials (42 million people) were born 1994–2002 and are depicted as multicultural, they will be tech-savvy, educated, grow up in an affluent society, and have big spending power. Page: 252 Level of difficulty: Medium
- 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.
Suggested Answer: The seven methods are: (1) online buzz, (2) student ambassadors, (3) unconventional sports, (4) cool events, (5) computer games, (6) videos, and (7) street teams. See Marketing Insight (Marketing to Generation Y)
for additional details and discussion. Students may select any of the above four for discussion and characterization. Page: 253 Level of difficulty: Hard
- The VALS segmentation system has evolved into an 8-part typology. List and briefly describe any four categories of that 8-part typology.
Suggested Answer: The eight parts of the VALS segmentation system include the following: (1) innovators, (2) thinkers, (3) achievers, (4) experiencers, (5) believers, (6) strivers, (7) makers, and (8) survivors. Students may choose any of the above four of the above eight for their discussion unless otherwise directed. See the chapter section for characterization and discussion of each of the eight categories. Page: 254 Level of difficulty: Hard
- 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?
Suggested Answer: The three subcategories (and associated questions) would be: (1) industry—which industries should we serve?, (2) company size—what size companies should we serve?, and (3) location—what geographical areas should we serve? Page: 259 Level of difficulty: Medium
- To be useful, market segments must rate favorably on five key criteria. What are those criteria?
Suggested Answer: The five criteria are: (1) measurable, (2) substantial, (3) accessible, (4) differentiable, and (5) actionable. For additional information, see the chapter section. Page: 262 Level of difficulty: Medium
- The text describes five possible patterns for target market selection. Describe the pattern called selective specialization.
Suggested Answer: In selective specialization, a firm selects a number of segments, each objectively attractive and appropriate. There may be little of no synergy among the segments, but each promises to be a moneymaker. This multi- segment strategy has the advantage of diversifying the firm’s risk. Page: 262 Level of difficulty: Medium
Kotler mcqs with answers for help
Course: Marketing Principles (MKTG102101)
University: Boston College
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