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Global Marketing, 6e (Keegan/Green)Chapter 7 Segmentation, Targeting, and Positioning1) Many Chinese women use whitening creams to lighten and brighten their complexions since white skin is associated with wealth.Answer: TRUEDiff: 1Page Ref: 2022) Market Segmentation is the process of evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond.Answer: FALSEDiff: 2Page Ref: 203AACSB: Reflective Thinking3) Sushi, Falafel, Tandoori Chicken or Pizza are in demand in many parts of the world. This phenomenon can be due to pluralization of consumption and segment simultaneity.Answer: TRUEDiff: 2Page Ref: 204AACSB: Multicultural and Diversity4) The fact that significant numbers of pizza-loving consumers are found in many countries indicates that they are eating the exact same thing in all parts of the world.Answer: FALSEDiff: 1Page Ref: 2045) Conventional wisdom about market segmentation calls for acknowledging the emergence of global market segments that transcend national boundaries.Answer: FALSEDiff: 2Page Ref: 204AACSB: Reflective Thinking6) The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers.Answer: TRUEDiff: 2Page Ref: 205AACSB: Reflective Thinking7) A fact found by demographic segmentation is that by the year 2030, 20 percent of the U.S. population or 70 million will be 65 years old or older.Answer: TRUEDiff: 2Page Ref: 205AACSB: Analytic Skills8) The assumption of homogeneity should be the cornerstone of a companys market segmentation effort.Answer: FALSEDiff: 2Page Ref: 2069) About two-thirds of world GNI is generated in the Triad countries, whereas only about 12 percent of the worlds population is located in those countries.Answer: TRUEDiff: 2Page Ref: 206AACSB: Reflective Thinking10) The United States ranks number one among nations in terms of both per capita income and in terms of income adjusted for purchasing power.Answer: FALSEDiff: 2Page Ref: 206AACSB: Analytic Skills11) Swedish companies such as IKEA, Ericsson, and Saab have looked beyond their borders for significant growth opportunities since they have a high per capita income.Answer: FALSEDiff: 2Page Ref: 207AACSB: Reflective Thinking12) When assessing market segments in terms of income data, global companies should avoid targeting countries with per capita incomes of less than $755.Answer: FALSEDiff: 2Page Ref: 207AACSB: Reflective Thinking13) An extrapolation of current economic growth trends suggest that China, with its combination of high real income growth and relatively low population growth, is a strong candidate to become a leading world economic power.Answer: TRUEDiff: 2Page Ref: 208AACSB: Reflective Thinking14) Ten most populous countries in the world account for roughly 60 percent of the world population.Answer: TRUEDiff: 2Page Ref: 208AACSB: Analytic Skills15) Using averages alone, it is possible to underestimate a markets potential, for example, fast-growing, higher income segments are present both in India and China.Answer: TRUEDiff: 2Page Ref: 208-209AACSB: Reflective Thinking16) The vast majority of Indias population comprises a bullock cart segment whose households lack most comforts but typically own a television.Answer: TRUEDiff: 2Page Ref: 209AACSB: Reflective Thinking17) A psychographic study showed that Porsche buyers could be divided into several distinct categories, one consisting of Top Guns who buy Porsches and expect to be noticed.Answer: TRUEDiff: 2Page Ref: 21118) Categories such as successful idealists and affluent materialists can be used to describe psychographic segments.Answer: TRUEDiff: 2Page Ref: 211AACSB: Reflective Thinking19) The segmentation and targeting approach used by the same company can vary from country to country.Answer: TRUEDiff: 2Page Ref: 211AACSB: Reflective Thinking20) For behavior segmentation, marketers use the 80/20 rule when assessing the consumers usage rate, which means that 20 percent of the companys revenues or profits are accounted for by 80 percent of the firms products or customers.Answer: FALSEDiff: 2Page Ref: 213AACSB: Reflective Thinking21) Global benefit segmentation is based on a marketers understanding of the problem a product solves, the benefit it offers, or the issue it addresses, regardless of geography.Answer: TRUEDiff: 2Page Ref: 214AACSB: Reflective Thinking22) Based on the trends and segmentation of Europes Single Market, marketers are particularly advised to take the Golden Grays seriously and market brands that provide happiness, convenience, and time savings.Answer: TRUEDiff: 2Page Ref: 214AACSB: Reflective Thinking23) The widespread adoption of the Internet and other new technologies will result in new segmentation approaches to be developed in response to changing business environment.Answer: TRUEDiff: 2Page Ref: 216AACSB: Reflective Thinking24) Thai Americans, Vietnamese Americans, and Chinese Americans, each of whom speak a different language, can be separated by ethnic segmentation.Answer: TRUEDiff: 2Page Ref: 215AACSB: Analytic Skills25) When assessing potential country target markets, management should rely heavily on its network of contacts as a primary criterion for targeting.Answer: FALSEDiff: 2Page Ref: 216AACSB: Reflective Thinking26) About 1.3 million cars are sold each year in India; in absolute terms, this is a relatively small number.Answer: TRUEDiff: 2Page Ref: 217AACSB: Reflective Thinking27) India is the worlds fastest growing cell phone market with the industry expanding at a rate of 50 percent annually with 5 million new subscribers added every month. This is an indication of continued private-sector growth.Answer: FALSEDiff: 2Page Ref: 217-218AACSB: Reflective Thinking28) A market segment or country market characterized by strong competition may be a segment to target since it will be easier to enter a proven market.Answer: FALSEDiff: 2Page Ref: 218AACSB: Analytic Skills29) Honda first created the market for small-displacement dirt bikes and then moved up market with bigger bikes targeted at casual riders.Answer: TRUEDiff: 1Page Ref: 219AACSB: Reflective Thinking30) Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment.Answer: TRUEDiff: 2Page Ref: 220AACSB: Analytic Skills31) In India, refrigeration is not widely available and this restricts many foreign companies to market items that need refrigeration. This can be considered as one of the enabling conditions that needs to be considered in a marketing model.Answer: TRUEDiff: 2Page Ref: 220AACSB: Analytic Skills32) When making a decision about market entry timing, a companys management team should understand that the first-mover always becomes the market leader.Answer: FALSEDiff: 2Page Ref: 221AACSB: Reflective Thinking33) Before targeting the North American market, the Lexus marketing team succeeded in making Lexus the number one luxury-car nameplate in Japan.Answer: FALSEDiff: 2Page Ref: 222AACSB: Reflective Thinking34) Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing.Answer: FALSEDiff: 1Page Ref: 223AACSB: Reflective Thinking35) Differentiated global marketing represents a more ambitious approach than concentrated target marketing.Answer: TRUEDiff: 2Page Ref: 22436) There is a significant difference between the mass market and the premium market. In the premium market customers are looking for a good deal whereas in the mass market customers are looking for a product that fulfills their expectations.Answer: FALSEDiff: 2Page Ref: 223-224AACSB: Reflective Thinking37) BMWs slogan the ultimate driving machine, is an example of an attribute or benefit which has proven successful in their positioning strategy.Answer: TRUEDiff: 2Page Ref: 224-225AACSB: Reflective Thinking38) IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish flag literally, since inside and out, their stores are decorated in the national colors of blue and yellow. This is an example of local consumer culture positioning.Answer: FALSEDiff: 2Page Ref: 228-229AACSB: Reflective Thinking39) Benetton uses the slogan United Colors of Benetton to position itself as a brand concerned with the unity of humankind. This type of strategy is referred to as GCCP (global consumer culture positioning).Answer: TRUEDiff: 2Page Ref: 227-228AACSB: Reflective Thinking40) In France, the National Assembly approved a bill that would require Apple to share the iTunes software codes with other companies so that music downloads would play on all digital music players, not just iPods.Answer: TRUEDiff: 2Page Ref: 230AACSB: Reflective Thinking41) Market segmentation represents:A) targeting prospective customers.B) finding customers who can respond to advertisement.C) promoting products and services internationally.D) identify customers who can help in promoting products.E) an effort to identify and categorize customers based on common characteristics.Answer: EDiff: 2Page Ref: 203AACSB: Reflective Thinking42) When identifying global market segments, a fundamental guiding principle should be the need to determine:A) shared demographic characteristics.B) similar languages.C) similar needs and buying behavior.D) similar ethnic backgrounds.E) similar geographic regions.Answer: CDiff: 2Page Ref: 204AACSB: Reflective Thinking43) Global marketing authority Theodore Levitt has noted that many ethnic and regional foodssushi, for exampleis enjoying popularity in many countries of the world. This observation is known as:A) the pluralization of consumption.B) the ethnicitization of consumption.C) the democratization of consumption.D) the sophistication of consumption.E) the domestication of consumption.Answer: ADiff: 2Page Ref: 204AACSB: Reflective Thinking44) Which of the following does not represent conventional wisdom regarding global segmentation?A) assume heterogeneity between countriesB) assume homogeneity within a given countryC) focus heavily on macro-level cultural differencesD) acknowledge the existence of within country differencesE) assigning secondary priority to within country microsegmentsAnswer: DDiff: 3Page Ref: 204AACSB: Reflective Thinking45) Income and population are two variables that can be used in which type of segmentation?A) ethnic segmentationB) demographic segmentationC) psychographic segmentationD) behavioral segmentationE) gender segmentationAnswer: BDiff: 2Page Ref: 205AACSB: Reflective Thinking46) Ideally, for comparative purposes, GNI and other measures of national income converted to U.S. dollars should be calculated on the basis of:A) per capita income.B) purchasing power parities.C) high income countries.D) low income countries.E) local currency.Answer: BDiff: 2Page Ref: 206-207AACSB: Reflective Thinking47) Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because:A) it has high total annual income.B) it has low total annual income.C) it has a smaller population.D) it is land locked geographically.E) it has relaxed export policies.Answer: CDiff: 3Page Ref: 207AACSB: Reflective Thinking48) The concentration of income in the high-income and large-population countries means that a company can be global by targeting buyers in:A) just 50 countries.B) just 20 countries.C) just 10 or fewer countries.D) just 30 countries.E) none of the aboveAnswer: CDiff: 3Page Ref: 208AACSB: Analytic Skills49) A global segment is referred to as global elite which include:A) people between the ages of 12 and 19.B) affluent, well-traveled persons.C) graying population.D) technology professionals.E) persons having power.Answer: BDiff: 3Page Ref: 209AACSB: Analytic Skills50) Based on 2007 projections, the top ten nations ranked by GNI does not include:A) United States.B) Japan.C) Russia.D) Spain.E) Italy.Answer: CDiff: 3Page Ref: 207AACSB: Analytic Skills51) McDonalds operates in over 120 countries, however, 80 percent of its restaurants are located in nine countries which does not include the following country market:A) Australia.B) Brazil.C) Germany.D) India.E) Japan.Answer: DDiff: 2Page Ref: 208AACSB: Analytic Skills52) Psychographic segmentation involves grouping people in terms of their:A) combined household income.B) age and income.C) attitudes, values and lifestyle.D) psychological well being.E) gender.Answer: CDiff: 2Page Ref: 210-211AACSB: Reflective Thinking53) Porsche AG uses the label Top Guns to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?A) demographicB) occupationalC) psychographicD) behavioralE) genderAnswer: CDiff: 2Page Ref: 210-211AACSB: Reflective Thinking54) A marketing manager for the Mars candy company is studying a single-country psychographic profile that includes segment labels such as Cossacks and kuptsy. What country does the survey cover?A) IndiaB) JapanC) RussiaD) ChinaE) VietnamAnswer: CDiff: 2Page Ref: 21255) Generation Y, Golden Grays, and Globerations are three market segments that have been described in:A) Japan.B) Russia.C) the European Union.D) the United States.E) Brazil.Answer: CDiff: 2Page Ref: 214AACSB: Reflective Thinking56) Which of the following is not a characteristic associated with the Golden Grays segment in Europes single market?A) consider it important to mix fun and workB) enjoy high-tech gamingC) deluged with passive informationD) expect biotechnology to extend life expectancyE) share few family activitiesAnswer: EDiff: 3Page Ref: 214AACSB: Reflective Thinking57) Which of the following is not a characteristic associated with the Generation Y segment in Europes single market?A) share numerous family activitiesB) less reverence toward established authoritiesC) view leisure time in pay-per-play termsD) increasingly tech-savvyE) deluged with positive informationAnswer: EDiff: 3Page Ref: 214AACSB: Reflective Thinking58) Tambrands markets feminine hygiene products around the globe. The company divides markets on the basis of past, present, and future product usage. Which kind of segmentation does this represent?A) demographicB) occupationalC) psychographicD) behavioralE) geographicAnswer: DDiff: 2Page Ref: 213-214AACSB: Reflective Thinking59) Diageo PLC; V&S Vin & Spirit AB; and Seagram and other marketers know that Russians consume a great deal of Vodka. This type of market segmentation can be classified as:A) demographic.B) behavioral.C) psychographic.D) occupational.E) benefit.Answer: BDiff: 2Page Ref: 212AACSB: Reflective Thinking60) Usage rates and user status are important criteria for which segmentation variable?A) demographicB) occupationalC) psychographicD) behavioralE) benefitAnswer: DDiff: 2Page Ref: 213-214AACSB: Reflective Thinking61) Which of the following is probably the biggest impediment to Tambrandss efforts to expand the market for its Tampax brand feminine hygiene products in developing nations?A) lack of demographic informationB) underdeveloped distribution infrastructureC) religious and cultural moresD) preference for less expensive local brandsE) lack of advertisement and promotionAnswer: CDiff: 2Page Ref: 215AACSB: Multicultural and Diversity62) Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of _ segmentation:A) demographicB) psychographicC) ethnicD) behavioralE) benefitAnswer: EDiff: 2Page Ref: 214-215AACSB: Reflective Thinking63) Which of the following is true about efforts by automakers to target the Hispanic segment in the United States?A) Honda, Toyota, Ford, and GM all began targeting the segment years ago.B) Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently.C) Ford and GM began targeting the segment years ago; Honda and Toyota launched their efforts more recently.D) Only Ford and GM are targeting the Hispanic segment.E) none of the aboveAnswer: BDiff: 2Page Ref: 215-216AACSB: Analytic Skills64) Which of the following best describes the decision by South Korean automaker Kia Motors about targeting the U.S. automotive market?A) Kia is staying away because Japanese competition is too strong.B) Kia is staying away because of slow growth in the sport utility segment.C) Kia is aggressively launching inexpensive, value-priced vehicles.D) Kia is selectively targeting upscale U.S. buyers.E) Kia is avoiding America because it cannot afford the expense of a U.S. product launch.Answer: CDiff: 2Page Ref: 217-218AACSB: Analytic Skills65) Which of the following criteria should marketers use when assessing opportunity in global targe
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