Marketing Final Exam

Group of middle school students stop by a bicycle

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Unformatted text preview: e 4. A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs. a. b. c. d. e. market universe market segment aggregated market segmentation base population sample ANS: B This is the definition of a market segment. PTS: 1 REF: 121 Thinking KEY: CB&E Model Customer OBJ: 08-1 TOP: AACSB Reflective MSC: BLOOMS Knowledge 5. A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes? a. Yes, they are a potential market since they are all about the same age. b. No, they do not have the ability to purchase at this time. c. No, to qualify as a market, they must need the product. d. Yes, they are a market because this product could satisfy their consumer wants and desires. e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics. ANS: B A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. There is no suggestion of ability to purchase in this case. PTS: 1 REF: 121 Thinking KEY: CB&E Model Customer OBJ: 08-1 TOP: AACSB Reflective MSC: BLOOMS Application 6. Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. a. micromarketing b. positioning c. market segmentation d. cannibalization e. perceptual mapping ANS: C Dividing one large market into divisions based on a variable such as product usage is called market segmentation. PTS: 1 REF: 122 Thinking KEY: CB&E Model Strategy OBJ: 08-1 TOP: AACSB Reflective MSC: BLOOMS Application 7. _____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable. a. Perceptual mapping b. Positioning c. Micromarketing d. Market sampling e. Market segmentation ANS: E This is the definition of market segmentation. PTS: 1 REF: 122 Thinking KEY: CB&E Model Strategy 8. The purpose of market segmentation is to: a. b. c. d. e. OBJ: 08-1 TOP: AACSB Reflective MSC: BLOOMS Knowledge reduce the market down to a size the firm can handle divide the market into equal size and profit regions for sales territories group a large number of markets together, enabling a company to serve them simultaneously develop a generalized definition of the market as a whole enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups ANS: E The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix. PTS: 1...
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