101.Within a perceptual map, a(n) __________ represents where a particular market segment’s desired product would lie. 
 
 

A.point of parity

B.strategic target

C.PRIZM cluster

D.ideal point

E.benefit centroid

The ideal point is the point representing the target market’s “perfect” product offering.

102.“Why create a perceptual map?” asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason? 
 
 

A.“It’s a quick way for senior managers to see not only our product but each of our competitors, all at once.”

B.“It’s a way to demonstrate the dimensions that our customers think are important.”

C.“It shows where we aren’t–and where our competitors aren’t–in our customers’ and prospects’ minds.”

D.“It’s a way to show the position of the company in ten years.”

E.“We can easily show where we are positioned and how large the market is.”

A perceptual map shows the current position of a company’s products, not a future position.

103.The perceptions of __________ are being measured in a perceptual map. 
 
 

A.competitors

B.strategic planners

C.the company’s executive team

D.the current R&D team

E.consumers

Perceptual maps measure perceptions of consumers, not of competitors or members of the firm.

104.Which of the following segmentation methods is being used when M&Ms offers special wedding-themed packaging for customized M&Ms (imprinted with the names of the bride and groom)? 
 
 

A.Occasion segmentation

B.Geographic segmentation

C.Lifestyle segmentation

D.Benefit segmentation

E.Loyalty segmentation

Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.

105.Godiva Chocolates produces specially decorated boxes of candies for Valentine’s Day, Easter, and Christmas. This is an example of: 
 
 

A.occasion segmentation

B.loyalty segmentation

C.geographic segmentation

D.psychographic segmentation

E.demographic segmentation

Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.

106.Which of the following defines a value proposition? 
 
 

A.The unique value that a product or service provides to its customers

B.A special discount offer dropping the price

C.An advertisement that talks about value

D.A display of the position of products or brands in the consumer’s mind

E.None of these

A value proposition defines the unique value the product or service provides its customers, and how it differs from those of competitors.

107.Overriding desires that drive how we live our lives are called: 
 
 

A.self-values.

B.self-concept.

C.self-esteem.

D.self-confidence.

E.self-control.

Self-values are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.

108.When Victoria’s Secret offers clients different colors, fabrics and styles, it is trying to capture the market by: 
 
 

A.segmenting, targeting and positioning.

B.offering everything to everyone.

C.trying lots of options to find out which one works.

D.continual test marketing.

E.focusing exclusively on its Pink brand.

Victoria’s Secret uses segmentation, targeting, and positioning by offering color, fabrics and styles designed to appeal to different target audiences.

109.By designing subcompact cars specifically for Chinese consumers, American and Japanese auto makers are engaging in: 
 
 

A.geographic segmentation

B.psychographic segmentation

C.geodemographic segmentation

D.demographic segmentation

E.behavioral segmentation

Geographic segmentation organizes customers into groups on the basis of where they live–in this case, the country in which they reside.

110.Unilever used the technique of “crowdsourcing” to assist in marketing mix design for its Axe personal care products for men. What is crowdsourcing? 
 
 

A.Tapping directly into needs and ideas of a target audience by inviting broad-based input

B.Identifying trends by observing a large group of people in a public place

C.Conducting focus group research

D.Conducting a test market

E.Estimating wide-scale sales from a test with a small crowd

Unilever developed its Twist product in part from online feedback obtained from target customers.

111.China Mobile has identified segments for its services including rural farmers, college students, and wealthy businessmen. These are examples of __________ segments. 
 
 

A.demographic

B.geographic

C.psychographic

D.benefit

E.behavioral

China Mobile is segmenting primarily on occupation and income, which are demographic variables.

112.When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is: 
 
 

A.responsive

B.identifiable

C.reachable

D.substantial

E.reactive

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm’s offering. This is referred to as a responsive segment.