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Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target

Customers

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation Answer: C Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1

2) What are the four steps, in order, to designing a customer-driven marketing strategy?

A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning

D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1

3) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) occasion D) impulse E) emergency Answer: C Diff: 2 Page Ref: 196 Skill: Concept Objective: 7-2

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4) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rates C) benefit D) behavior E) loyalty status Answer: A Diff: 1 Page Ref: 197 Skill: Concept Objective: 7-2

5) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type

D) brand preference E) usage rate Answer: B Diff: 1 Page Ref: 197 Skill: Concept Objective: 7-2

6) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors

D) personal characteristics E) brand personalities Answer: E Diff: 3 Page Ref: 198 Skill: Concept Objective: 7-2

7) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable

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B) accessible C) substantial D) actionable E) observable Answer: A Diff: 2 Page Ref: 200 Skill: Concept Objective: 7-2

8) When a business market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable Answer: C Diff: 2 Page Ref: 200 Skill: Concept Objective: 7-2

9) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth

C) segment structural attractiveness D) company values E) company resources Answer: D Diff: 3 Page Ref: 201 Skill: Concept Objective: 7-3

10) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers

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