Marketing Final Exam

Is a means of changing light users into heavier users

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Unformatted text preview: y amount purchased or consumed is usage-rate segmentation. PTS: 1 REF: 129 Thinking KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB Reflective MSC: BLOOMS Application 73. General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children’s schools. This program, called the Box Tops for Education Program, is a means of changing light users into heavier users. In other words, it is a form of _____ segmentation. a. lifestyle b. motive c. usage-rate d. demographic e. personality ANS: C Usage-rate segmentation divides a market by the amount of product bought or consumed. PTS: 1 REF: 129 Thinking KEY: CB&E Model Strategy 74. What does the 80/20 principle propose? a. b. c. d. e. OBJ: 08-4 TOP: AACSB Reflective MSC: BLOOMS Application Roughly 80 percent of the profit comes from 20 percent of the sales. Roughly 80 percent of a firm’s customers are repeat business. Roughly 50 percent of a firm’s customers purchase 80 percent of the sales volume of the product. Roughly 20 percent of a firm’s customers purchase 80 percent of the sales volume of the product. Sales are equally divided among heavy, medium, and light users, but they all need slightly different products. ANS: D The 80/20 principle proposes that a minority of a firm’s customers purchase a majority of the volume of the product. PTS: 1 REF: 129 OBJ: 08-4 TOP: AACSB Reflective Thinking KEY: CB&E Model Customer MSC: BLOOMS Knowledge 75. The _____ proposes that a minority of a firm’s customers purchase a majority of the volume of the product. a. majority fallacy b. equity fallacy c. 80/20 principle d. cannibalization rule e. optimizer principle ANS: C This is the definition of the 80/20 principle. PTS: 1 REF: 129 Thinking KEY: CB&E Model Customer OBJ: 08-4 TOP: AACSB Reflective MSC: BLOOMS Knowledge 76. Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia––everything from toy train sets to full-sized railroad signs. After 18 months in business, they have noticed most of their sales are to the same small group of customers (about 40 people) even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store. Their retailing experience is supportive of the: a. optimizer principle b. min-max rule c. majority fallacy d. rule of demand e. 80/20 principle ANS: E The 80/20 principle proposes that a minority of a firm’s customers purchase a majority of the volume of the product. PTS: 1 REF: 129 Thinking KEY: CB&E Model Customer OBJ: 08-4 TOP: AACSB Reflective MSC: BLOOMS Application 77. Business marketers focus on all of the following market segments EXCEPT: a. institutions b. producers c. households d. resellers e. government ANS: C The business market consists of four broad segments: producers, resellers, government, and institutions. Households are part of the consumer market. PTS: 1 Thinking REF: 129 OBJ: 0...
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This document was uploaded on 09/29/2013.

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