Click on the box next to each answer. Keep track of your own score.

1. To get a clear picture of how different products, companies, or brands are positioned, marketers often use:
   • A. relationship marketing. INCORRECT  
   • B. manufacturer branding. INCORRECT  
   • C. the product lifecycle concept. INCORRECT  
   • D. perceptual maps. CORRECT study how it is used.  
2. A perceptual map is used to graphically represent:
   • A. brand positions. CORRECT  
   • B. product lines. INCORRECT  
   • C. product features. INCORRECT  
   • D. cash cows, stars, problem children, and dogs. INCORRECT  
3. Mass marketing could also be called a(n) ________________________ approach to segmentation.
   • A. single segment INCORRECT With what we would call a single segment strategy, an   assumption is that multiple segments exist and that   we choose to target a single one of those.
   • B. undifferentiated CORRECT In this approach, we are assuming that all customers in   the market have similar needs and wants that can   be met simultaneously with a common strategy.
   • C. substantial INCORRECT See the criteria for a successful segmentation strategy;   one issue is that the segments that are chosen   must be substantial.
   • D. sustainable INCORRECT See the criteria for a successful segmentation strategy;   one issue is that the segments that are chosen   must be sustainable.
4. Psychographic segmentation has to do with variables that could include:
   • A. personality. CORRECT but at least one more answer could be just as correct.  
   • B. lifestyle. CORRECT but at least one more answer could be just as correct.  
   • C. demographics. INCORRECT Demographics COULD be part of psychographic segments.   But given the answer choices, other answers are   more clearly associated with psychographics.
   • D. population density. INCORRECT There could be a relationship between psychographics   and where one lives or where one chooses to live,   but other answer choices are more direct.
5. People perceive Mastercard to have higher fees than the Discover credit card.  This illustrates a difference in:
   • A. brand loyalty. INCORRECT  
   • B. brand personality. INCORRECT  
   • C. brand awareness. INCORRECT  
   • D. positioning. CORRECT  
6. Which of the following is a statement of product positioning?
   • A. Harvard University is higher priced than Ohio State. INCORRECT This could be a positioning statement, but another   answer is better.
   • B. Cadillacs are more luxurious than Chevrolets. INCORRECT This could be a positioning statement, but another   answer is better.
   • C. Seiko watches are more prestigious than Timex watches. INCORRECT This could be a positioning statement, but another   answer is better.
   • D. all of the above. CORRECT All of the above are statements to indicate how   one brand is perceived to be positioned relative This could be a positioning statement, but another   answer is better.
7. In the spa industry, many marketers focus their efforts on one small, well-defined market that has a unique, specific set of needs.  We would call this a(n):
   • A. differentiated approach. INCORRECT  
   • B. undifferentiated approach. INCORRECT  
   • C. psychographic segment. INCORRECT  
   • D. niche strategy. CORRECT  
8. A perceptual map gives information about:
   • A. brand positions. CORRECT As a generalization, we can use the terms "perceptual  map" and "product positioning map" interchangeably.  Positioning has to do with the place that a product  or brand occupies in peoples' minds relative to  other products or brands. E.g., is one brand of  soft drink perceived to be more or less healthy,  more or less sweet, more or less caffeinated, more  or less youthful,etc. See also answer D.
   • B. a product's stage in the product lifecycle. INCORRECT Not as a generalization. You're clearly guessing.
   • C. where the marketing department stands in relation to the  importance of other corporate entities. INCORRECT Yikes! You have a choice: buy the book or drop the course!
   • D. which competitor has the best product in the minds of buyers. INCORRECT This might be something that you could indeed tell from a  perceptual map, but often, there is no best product  or best position to be on a map. We can use perceptual   maps to find market segments with unmet needs (e.g.,  nobody with a product in some quadrant), we can use  them to find head-to-head competition, etc., but these  kinds of observations don't necessarily or automatically  tell us what product would be or which product is  best in the market.
9. If a company designs a product around the needs of people who have a lifestyle, personality, and social class profile that is different than that of other groups of people, the company is using:
   • A. a differentiation strategy. INCORRECT Product differentiation has to do with making a product  that is perceived by potential buyers as different  in some important way from competing products.  It is related to (but not the same as) the notion  of product positioning.
   • B. demographic segmentation. INCORRECT You jumped for the word "segmentation". But this  profile is based only partly on demographics.
   • C. psychographics. CORRECT By definition, these are the sorts of factors that are  used in psychographic segmentation.
   • D. database marketing. INCORRECT Database marketing is related to the idea of mass  customization, but even the latter would be the  wrong answer and from the wrong chapter using the  wrong logic.
10. A credit card company creates one set of print ads directed towards students, another directed toward professional and technical workers, an another toward small business owners. It is using:
    • A. a differentiation strategy. INCORRECT Product differentiation has to do with making a product  that is perceived by potential buyers as different  in some important way from competing products.  It is related to (but not the same as) the notion  of product positioning.
    • B. demographic segmentation. CORRECT These are occupation sorts of classifications that are  relatively easy to define and to identify in people.
    • C. psychographics. INCORRECT It is possible that a person's occupation affects his/her  lifestyle and such - a student probably fits into  a different psychographic category from a small  business owner - but these classifications do not,  alone, tell us anything about psychographic issues  or variables.
    • D. database marketing. INCORRECT Database marketing might be used to identify members of  these groupings, but that's about as close as it  gets here.  Wrong chapter.
11. Some universities promote on the basis of their prestige.  Others promote on their large size and choice of programs.  Still others promote on their small size, accessibility to professors, and low cost.  These tactics are based on issues of:
    • A. a multisegment targeting strategy. INCORRECT A multi-segment strategy has to do with targeting more   than one segment by one organization.
    • B. psychographics. INCORRECT We're really not looking at issues of lifestyle and   personality in this case.
    • C. differentiation. MAYBE In these promotions, each university is attempting to   distinguish itself from the others.  Look   another answer, however.
    • D. positioning. CORRECT Each university is attempting to occupy a different place   in peoples' minds; each is trying to locate itself   above or below, to the left or to the right of   other product offerings.  Note that another   answer choice could also be a good answer.
12. Identification of a particular customer segment that an organization wants to reach with its marketing actions is known as:
    • A. segmentation. INCORRECT If a better answer wasn't included in the choice set,   this could be a term that is used in some contexts. Segmentation has to do with recognizing groups of   customers or prospective customers who, within each   group, respond similarly to our marketing efforts. A "segmentation strategy" presumes that the   organization has chosen one or more of those groups   to be its primary focus. Given that another answer is more clear about making this  choice of segments, however, that one is a better answer.
    • B. target market. CORRECT See Answer A for important insights that are associated   with this term.
    • C. RFID INCORRECT Huh?  Radio-frequency identification?  That has   to do with tracking inventory and isn't likely to be   on an exam until we get to the logistics chapters.
    • D. social networking. INCORRECT Social networking has to do with how it is that people in   a marketplace spontaneously communicate with each   other - not on the exam until we get to the marketing   communication chapters.
13. In the 1980s, General Motors found that the Oldsmobile and Pontiac brands were positioned on top of each other on several axes of perceptual maps.  On other axes, Oldsmobile was perceived to be something that old people drove.  To try to clearly position the Oldsmobile as a car for a younger generation while separating it from the Pontiac brand, GM came out with a promotion strategy saying, "This is not your father's Oldsmobile." This was:
    • A. a repositioning strategy. CORRECT  
    • B. a brand extension strategy. INCORRECT  
    • C. a cobranding strategy. INCORRECT  
    • D. divest strategy. INCORRECT  
14. Establishing a mental image of a product offering relative to competing offerings in the minds of target buyers is called:
    • A. place utility. INCORRECT Nope. If you look at Answer B, you will find out why.  
    • B. psychological utility. INCORRECT Utility has to do with how well a product satisfies the   needs and wants of a buyer or prospective buyer.   Besides, we never talked about any such thing as   psychological utility.
    • C. segmentation. INCORRECT Segmentation has to do with dividing the market into groups   of buyers who respond in similar ways to our marketing   efforts.    Knowing something about the segment that we want to   target can give us insights into how to position a   product.
    • D. product positioning. CORRECT We tend to associate Kia automobiles with affordable   transportation, Cadillac with luxury, and Porsche   with sportiness. See also Answer C.  
15. A way to graphically display the location of products, brands, or groups of products in peoples' minds is through:
    • A. the Boston Consulting Group growth-share matrix. INCORRECT  
    • B. a psychographic profile. INCORRECT  
    • C. a perceptual map. CORRECT As a rough generalization, this term is usually interchangeable   with a positioning map.
    • D. a positioning map. CORRECT As a rough generalization, this term is usually interchangeable   with a perceptual map.
16. If you are dissatisfied with the current position of a brand, you probably should:
    • A. attempt to reposition the brand. CORRECT  
    • B. create a brand extension. INCORRECT  
    • C. co-brand the product. INCORRECT  
    • D. divest of the product line. INCORRECT  
17. The Model T automobile was designed to be reliable and low in cost; it was a "working person's car."  Henry Ford is reputed to have said, "You can have it in any color you want, as long as it's black."  Competitors such as Chevrolet, however, started to offer cars targeted to this market in a choice of colors.  All else being equal, the strategy of these competitors was one of:
    • A. segmentation. INCORRECT Segmentation has to do with separating the market into   groups that respond similarly to one's marketing   efforts within the group, differently between the   groups.  In this case, we wouldn't expect   to find one group of consumers who want black and   another group who wants colors.  
    • B. differentiation. CORRECT All else being equal, the colors offered by the   competitor did not make the competitor's products   especially better did make them different.    (Note that Chevrolet offered differences other   than color choices, making differentiation only   one part of the successful competitive strategy.)
    • C. repositioning. INCORRECT Repositioning has to do with changing peoples'   perceptions.  The competitor didn't change   its position, but simply made the product different   on a noticeable feature.
    • D. cobranding. INCORRECT Say what? This example has nothing to do with cobranding.