Global Market Segmentation and Positioning Strategies
Understanding Global Market Segments
31) The efforts of global companies to reach low-income consumers in developing countries represent:
E) An effort to identify and categorize global market segments.
32) When identifying global market segments, a fundamental guiding principle should be the need to determine:
C) Similar needs and buying behavior.
Demographic Segmentation
33) Demographic segmentation is based on measurable population characteristics. Which of the following is not considered a demographic factor?
C) Consumers buying Porsche would like to be noticed.
34) Global marketing authority, Theodore Levitt, suggested that consumers in different countries increasingly seek variety, and that the same new segments are likely to show up in multiple national markets. He referred to this trend as:
A) The pluralization of consumption.
35) A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts “conventional” versus “unconventional” wisdom. For example, he notes that marketers are accustomed to the idea of the global teenager as a consumer segment. Which of the following is an example of “unconventional” wisdom?
C) Assuming that there is a presence of a higher-income, middle-class segment in India.
36) The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. Companies based outside of the United States sometimes segment according to the following:
B) Polycentrics.
37) Based on 2011 projections, the top ten nations ranked by per capita income, included all of the following except:
C) Russia.
38) Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth opportunities because:
C) Sweden has a smaller population.
39) The concentration of income in the high-income countries means that a company engaged in market segmentation by income can target most of the world’s population by focusing on:
C) Just 10 or fewer countries.
40) A global segment is referred to as “global elite,” which includes:
B) Affluent, well-traveled persons.
41) In 2011, the ten most populous countries in the world accounted for roughly what percentage of the world’s total population?
E) Fifty.
42) McDonald’s operates in over 118 countries; however, 80 percent of its restaurants are located in only nine countries. From the perspective of market segmentation, this reflects all of the following except:
D) India.
43) A global segment is referred to as “global teens,” which includes:
A) People between the ages of 12 and 19.
44) A global segment is referred to as “global elite,” which includes:
A) People with shared interests in fashions.
Psychographic and Behavioral Segmentation
45) Psychographic segmentation involves grouping people in terms of their:
C) Attitudes, values, and lifestyle.
46) 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?
C) Psychographic.
47) SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be based on which type of segmentation?
C) Psychographic.
48) In the study entitled “The Euroconsumer: Marketing Myth or Cultural Certainty?” the researchers identified four lifestyle groups. The “Disaffected Survivors” include:
E) Disaffected Survivors.
49) In a study entitled “The Euroconsumer: Marketing Myth or Cultural Certainty?” the researchers identified four lifestyle groups. Which of the following includes a high number of people with university degrees and is the only segment that is younger?
C) Disaffected Survivors.
50) The law of disproportionality suggests that what percentage of a company’s menu or profits are accounted for by 20 percent of the firm’s products or customers?
D) 80.
51) The DMBB agency created a 20-country psychographic segmentation study of European consumers. The segment that includes “status-conscious traditionalists” who are upscale, conservative, and brand-conscious is:
C) Elites.
52) Sony’s U.S. Consumer segmentation includes all of the following except:
E) Fashionists.
53) “Usage rates” and “user status” are important criteria for which segmentation variable?
D) Behavioral.
Benefit Segmentation and Targeting
54) Campbell’s Soup is making significant inroads into Japan’s $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell’s Soup is referred to as:
D) Benefit.
55) Nutraceuticals are health-related products that have a medicinal benefit. This segment is primarily targeted by:
D) Nestlé foods.
56) Diageo PLC, V&S Vin & Spirit AB, and Seagram are just a few of the marketers competing in the global vodka market. What type of segmentation are they using?
B) Behavioral.
57) Several years ago, the DMBB agency surveyed 20,000 consumers in 29 countries. The results of the survey indicated that:
C) Russia has a higher percentage of “strivers” than any other country.
58) In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world’s largest food companies are developing new products. Nestlé, for example, has introduced a new type of yogurt:
B) Activa.
59) 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 which type of segmentation?
E) Benefit.
60) Three Mexican retailers, Famso, Grupo Elektra, and Grupo Coppel, have opened stores in the United States. These retailers are targeting:
C) The Hispanic American segments.
61) Which of the following is true about efforts by automakers to target the Hispanic segment in the United States?
B) Honda and Toyota began marketing to Hispanics in the 1970s.
Criteria for Targeting and Market Feasibility
62) Which of the following criteria should marketers use when assessing opportunity in global target markets?
E) All of the above.
63) Global automakers are targeting the U.S. market with new models. All of the following models are targeted at the U.S. market except:
D) Kia in India.
64) Managers must decide how well a company’s product fits the country market by asking the following questions except:
E) Will it be possible to neglect the home country market?
65) The feasibility of targeting a particular market segment can be negatively impacted by various factors. Which of the following is not one of those factors?
E) Surplus demand.
66) The basis for global marketing expert David Arnold’s framework for screening intercountry comparisons include:
C) “Bottom-up” segmentation analysis.
67) Basic criteria that marketers should keep in mind when assessing emerging country markets include all of the following except:
E) Securing first-mover advantage.
68) Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. They enjoy all of the following advantages except:
E) Substantial investments in marketing.
Standardized, Differentiated, and Concentrated Global Marketing
69) Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as:
B) Standardized global marketing.
70) The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Blancpain. Which target market strategy does this illustrate?
C) Differentiated global marketing.
Positioning Strategies
71) Positioning refers to the act of:
C) Differentiating a brand in the customer’s mind.
72) For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy?
B) Attribute/benefit.
73) Ads by BMW advertise it as the “ultimate driving machine.” This is an example of which positioning strategy?
C) Attribute/benefit.
74) Some of Body Shop’s recent advertising has emphasized the difference between the company’s principles and those of “mainstream” cosmetics companies on such issues as animal testing. As described here, Body Shop’s ads illustrate positioning by:
A) Competition.
75) Which of the following is generally true about the marketing of high-touch products such as fine china and crystal?
C) It relies less on specialized information and more on image.
76) Consumers shopping for high-touch products, such as fine perfume, are generally energized by which type of motive?
A) Emotional.
77) When a marketer understands that a product satisfies a buyer’s rational criteria while also evoking an emotional response, the marketer should:
C) Commission psychographic studies to understand the target audience.
78) Which of the following is true of advertising for the Heineken and Foster’s brands in the United States?
D) Heineken utilizes the FCCP strategy; Foster’s utilizes the GCCP strategy.
79) The world’s best-known cosmetics companies are setting their sights on a lucrative new market segment: men. Market research confirms that men throughout the world share a concern with taking care of their appearance. Revlon, Gillette, and L’Oréal are some of the companies pursuing this market. L’Oréal’s success in this market will depend on:
C) What beauty means to Chinese women.
80) The strategy that identifies a brand as a symbol of a particular global culture or segment is known as:
B) Global consumer culture positioning.