Business Marketing Management B2B 11th Edition Michael D. Hutt - Test Bank

Business Marketing Management B2B 11th Edition Michael D. Hutt – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 4—Segmenting the Business Market and Estimating Segment Demand

 

MULTIPLE CHOICE

 

1. Concerning segmentation criteria, _____ refers to the degree to which information on the particular buyer characteristic exists or can be obtained.

a.	measurability
b.	accessibility
c.	substantiality
d.	responsiveness
e.	enforceability

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

2. Which of the following statements concerning business market segmentation is(are) true?

a.	The decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm.
b.	In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior.
c.	Segmentation decisions can be reversed more easily in the business market than in the consumer market.
d.	all of the above
e.	(a) and (b) only

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

3. Market segmentation is:

a.	more useful to consumer goods marketers than to business marketers.
b.	of little value to business marketers that concentrate on the governmental and institutional sectors of the organizational market.
c.	difficult to apply in the business market because groups, not individuals, make many purchasing decisions.
d.	a useful tool for both business and consumer goods marketers.
e.	inappropriate for low market share firms.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

4. Which of the following statements concerning business market segmentation is(are) false?

a.	In selecting a market segment, the business marketer is also choosing a competitive environment.
b.	The cost of research increases if a microlevel of segmentation is required.
c.	Compared to their consumer goods counterparts, business marketers can more readily change segmentation strategies, shifting attention from one segment to another.
d.	both (a) and (c)

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

5. The business market can be segmented on several bases, broadly classified into two major categories:

a.	economic and demographic.
b.	macro and micro.
c.	top-down and bottom-up.
d.	concentration and coverage.
e.	organizational and end-use application.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

6. The business market can be segmented on several bases. Macro bases of segmentation center on:

a.	characteristics of the buying situation.
b.	characteristics of the buying organization.
c.	the nature of the product application.
d.	all of the above
e.	both (a) and (c)

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

7. Bases of business or organizational market segmentation that center on the characteristics of the buying organization and the buying situation are broadly categorized as:

a.	macrosegmentation.
b.	microsegmentation.
c.	economic bases.
d.	bottom-up bases.
e.	concentration bases.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

8. Bases of business or organizational market segmentation that focus on the characteristics of decision-making units are broadly classified as:

a.	macrosegmentation.
b.	microsegmentation.
c.	economic bases.
d.	demographic bases.
e.	coverage bases.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

9. The microsegmentation of business markets center on characteristics of:

a.	buying organizations (e.g., the size).
b.	the product application (e.g., end market served).
c.	decision-making units (e.g., decision style).
d.	the purchasing situation (e.g., types of buying situation).
e.	geographic regions (e.g., Midwest).

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

10. All of the following are potential macro bases of business market segmentation except:

a.	purchasing strategy.
b.	usage rate.
c.	size.
d.	product application.
e.	geographic location.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

11. All of the following are potential micro bases of business market segmentation except:

a.	organizational innovativeness.
b.	importance of purchase.
c.	personal characteristics.
d.	structure of decision-making unit.
e.	type of buying situation.

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

12. Large buying organizations may possess unique requirements and respond to different marketing stimuli than small firms. Research suggests that the degree of influence of presidents, vice presidents, and owners _____ with an increase in corporate size.

a.	remains constant
b.	increases
c.	decreases
d.	none of the above

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

13. Park Rapids Electronics divides their market on the basis of NAICS category, end market served, and type of buying situation. They have also developed a special strategy for large centralized buyers. They are emphasizing:

a.	macro bases of segmentation.
b.	micro bases of segmentation.
c.	a blend of macro and micro bases of segmentation.
d.	psychographic and economic bases of segmentation.
e.	none of the above

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

14. Chandler Machine Tool has been successful in segmenting their market using the following bases: (1) NAICS category and (2) key purchasing criteria emphasized by particular groups of buyers within each NAICS industry. They are using:

a.	macro bases of segmentation.
b.	micro bases of segmentation.
c.	a blend of macro and micro bases of segmentation.
d.	psychographic and economic bases of segmentation.
e.	none of the above

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

15. Lansing Motor Works produces a line of precision motors. Based on feedback from the sales force, management has learned that one of their new motors is especially well-suited to high-speed packaging systems. The new motor requires less maintenance and has a longer useful life than competing offerings. Lansing Motor Works is now concentrating on this segment. This provides an illustration of segmentation on the basis of:

a.	usage rate.
b.	purchasing strategy.
c.	size of firm.
d.	value-in-use.
e.	organizational innovativeness.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

16. For the medical x-ray market, Du Pont initiated a formal positioning study among hospital administrators, radiology department administrators, and technical managers in order to identify the firm’s relative standing and the specific needs (criteria) for each level of buying influence within each potential segment. This provides an illustration of segmentation on the basis of:

a.	the importance of purchase.
b.	attitude toward vendors.
c.	value-in-use.
d.	key criteria.
e.	decision-specific conflict.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

17. A segmentation study found that purchasers of IBM equipment are more concerned about software support and breadth of product line and they are less concerned about absolute price and price flexibility (i.e., willingness of suppliers to negotiate price). This provides an illustration of segmentation on the basis of:

a.	the importance of purchase.
b.	key criteria.
c.	the structure of the decision-making unit.
d.	attitude toward vendors.
e.	decision style.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

18. Concerning segmentation criteria, _____ concerns the degree to which segments respond differently to different marketing mix elements, such as pricing or product features.

a.	measurability
b.	accessibility
c.	substantiality
d.	compatibility
e.	responsiveness

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

19. Business market segmentation at the _____ level requires a higher level of market knowledge and, therefore, a greater investment in research.

a.	geographic
b.	macro
c.	micro
d.	demographic
e.	aggregate

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

20. The Thompson Spring Company has developed a separate marketing strategy for each of the industries that uses its products. These industries include makers of machine tools, bicycles, surgical devices, telephones, and missile systems. This provides an illustration of segmentation on the basis of:

a.	usage rate.
b.	product application.
c.	type of buying situation.
d.	the structure of procurement.
e.	key decision criteria.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

21. The criteria marketers use to evaluate the degree to which the firm can effectively focus its marketing efforts on chosen segments is:

a.	accessibility.
b.	measurability.
c.	sustainability.
d.	compatibility.
e.	responsiveness.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

22. Which of the following are means by which a marketer can implement a microsegmentation strategy?

a.	Importance of the purchase.
b.	Attitudes toward vendors.
c.	Organizational Innovativeness.
d.	(a) and (b) only.
e.	(a) and (c) only.

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

23. A successful implementation of a segmentation strategy requires attention to:

a.	how should the sales force be organized.
b.	what adaptations will be needed to serve selected international market segments.
c.	which media outlets can be used to target advertising at a new segment.
d.	all of the above.
e.	(b) and (c) only.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

24. Which of the following is a benefit of effective segmentation?

a.	The mere attempt to segment business market forces the marketer to become more attuned to the unique needs of customer segments.
b.	Knowledge of the needs of particular market segments helps the business appropriately train and deploy the salesforce.
c.	It allows the business marketer to focus on product development efforts.
d.	all of the above.
e.	(b) and (c) only.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

25. The classification of customers on a continuum range from nonuser to heavy user is an example of:

a.	macro level segmentation.
b.	micro level segmentation.
c.	product application segmentation.
d.	“value in use” segmentation
e.	none of the above.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

26. Which of the following is not one of the criteria for assessing the desirability of a potential market segment?

a.	Measurability
b.	Accessibility
c.	Responsiveness
d.	Substantiality
e.	Accountability

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

27. A _____ is a group of present or potential customers with some common characteristic which is relevant in explaining and predicting their response to a supplier’s marketing stimuli.

a.	market segment
b.	prospect group
c.	business population
d.	market opportunity

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

28. Concerning segmentation criteria, _____ refers to the degree to which the segments are large or profitable enough to be worth considering for separate marketing cultivation.

a.	measurability
b.	accessibility
c.	substantiality
d.	compatibility
e.	responsiveness

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

29. When a business marketer determines whether a buyer is employing a new task, modified rebuy or straight rebuy decision-making process, what macrolevel segmentation variable is being used?

a.	Type of buying situation.
b.	Structure of procurement.
c.	Geographical location.
d.	End market being served.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

30. When a business marketer decides to target only those firms with centralized buying centers, what macrolevel segmentation variable is being used?

a.	Geographical location.
b.	Usage rate.
c.	Structure of procurement.
d.	End market served.

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

31. Which of the following is NOT a personal characteristic used in microlevel segmentation?

a.	Demographics.
b.	Risk.
c.	Confidence.
d.	Job responsibility.
e.	Importance of purchase.

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

32. Successful implementation of a business segmentation strategy requires attention to which of the following issues?

a.	Adaptations to serve selected international markets.
b.	A comprehensive on-line strategy to provide continuous support to customers in the segments.
c.	Organization of the sales force.
d.	All of the above.
e.	Only (b) and (c).

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

33. Qualitative techniques that can be used for forecasting sales include:

a.	market surveys.
b.	time series.
c.	the Delphi method.
d.	single series statistical methods.
e.	none of these.

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

34. Advanced Technologies, Inc. faces a forecasting dilemma. They wish to evaluate the level of sales that a new technology might enjoy in 2014. Historical data is limited and of little value since the new product is not well defined and the product concept is unique. Which forecasting approach would appear to be most appropriate?

a.	time series analysis
b.	input/output analysis
c.	the sales force composite
d.	regression analysis
e.	the Delphi method

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

35. Which sales forecasting approach is effective when intimate knowledge of customer plans is important?

a.	executive judgment
b.	Delphi method
c.	time series
d.	sales force composite
e.	causal analysis

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

36. The qualitative approach that most closely resembles the executive panel method of sales forecasting is:

a.	input/output analysis.
b.	the sales force composite.
c.	market surveys.
d.	time series methods.
e.	regression analysis.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

37. The sales forecasting approach that utilizes a panel of experts and converts their opinions into an informed consensus by means of highly structured, multi-stage pooling is:

a.	the Delphi method.
b.	executive panel method.
c.	the sales force composite.
d.	organizational learning.
e.	the multiple series method.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

38. The industrial chemical industry in England shows a fairly regular rise and fall in demand over four- or five-year periods. This provides an illustration of the _____ component of a time series.

a.	trend
b.	cycle
c.	random
d.	seasonal
e.	irregular

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

39. Albany Products found that the sales of one of their most important products is logically related to new construction expenditures. If the firm can forecast future values of this variable, which forecasting technique would appear to be most appropriate?

a.	time series
b.	regression
c.	Delphi method
d.	trend extension
e.	none of the above

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

40. Which forecasting technique uses historical data ordered in time to project the trend and growth rate of sales?

a.	input/output analysis
b.	the Delphi method
c.	causal techniques
d.	time series analysis
e.	market survey method

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

41. Company sales, reported on a monthly basis for the past four years, is an example of a:

a.	cycle.
b.	time series.
c.	top-down approach.
d.	trend.
e.	seasonal index.

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

42. The _____ component of a time series reflects short-term, random movements in the data that do not conform to a pattern which is regularly related to the calendar.

a.	trend
b.	cycle
c.	seasonal
d.	irregular

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

43. The _____ component of a time series reflects intermediate-term, regularly recurring, upswings and downswings of data around the long-term general direction of the data.

a.	trend
b.	cycle
c.	seasonal
d.	irregular

 

 

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

44. _____ techniques have as their objective the determination of a relationship between sales and one or more variables presumed to be related to sales.

a.	Time series
b.	Delphi
c.	Causal
d.	Qualitative
e.	Trend extension

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

45. The most crucial limitation(s) associated with causal methods of sales forecasting is(are):

a.	the problem of determining future values of the independent or causal variables.
b.	the problem of securing unbiased sales estimates from the sales force.
c.	that seasonal variations in performance are difficult to precisely estimate.
d.	both (b) and (c).
e.	All of the above are crucial limitations of causal methods of sales forecasting.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

46. The ideal approach to sales forecasting for the business marketer relies on:

a.	strictly quantitative approaches.
b.	strictly qualitative approaches.
c.	a blend of the Delphi method and well-executed market surveys.
d.	a combination of qualitative and quantitative approaches.
e.	single and multiple statistical series approaches.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

47. Sales forecast data is used to:

a.	distribute inventory.
b.	manage stock levels.
c.	directing the entire supply chain process.
d.	all of the above.
e.	(a) and (b) only.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

48. Executive judgement methods produce accurate forecasts when:

a.	forecasts are made infrequently.
b.	the environment is volatile
c.	the linkage between decision, action, and feedback is short.
d.	all of the above.
e.	(a) and (b) only.

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

49. Quantitative forecasting includes the primary methodology called:

a.	time series.
b.	causal.
c.	regression.
d.	all of the above.
e.	(a) and (c) only.

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

50. Typically, causal models are more reliable for:

a.	intermediate than for long-range forecasts.
b.	long-range than intermediate forecasts.
c.	long-range than short-range forecasts.
d.	short-range than long range forecasts.
e.	short-range than for intermediate forecasts.

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

51. Which of the following are true of qualitative approaches to sales forecasting?

a.	Effectiveness depends on close relationships between customers and suppliers.
b.	They are more appropriate for well-established products.
c.	It brings users of the forecast into the forecasting process.
d.	All of the above.
e.	Only (a) and (c).

 

 

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

52. The Delphi technique is particularly well suited to:

a.	new product forecasts.
b.	estimation of future events for which historical data are limited.
c.	situations that are not suited to quantitative analysis.
d.	All of the above.
e.	Only (b) and (c).

 

 

ANS:  D                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

53. In time series analysis, the _____ component indicates the long-term general direction of the data.

a.	trend
b.	cycle
c.	seasonal
d.	irregular
e.	causal

 

 

ANS:  A                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

54. In time series analysis, the _____ component represents regular, recurring movements within the year.

a.	trend
b.	cycle
c.	seasonal
d.	irregular
e.	causal

 

 

ANS:  C                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

TRUE/FALSE

 

1. The concept of market segmentation is more applicable to consumer-goods marketers than to business marketers.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

2. Micro bases of organizational market segmentation require a high degree of market knowledge and focus on the characteristics of decision-making units within each of the various macrosegments.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

3. Examples of possible micro bases of business market segmentation include size, geographical location, and usage rate of buying organizations.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

4. If the business marketer can identify meaningful and profitable market segments at the macro level, the segmentation process is complete.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

5. The information needed for micro level segmentation in the business market can usually be drawn from available secondary sources.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

6. Compared to centralized buyers, decentralized purchasing units emphasize short-term cost efficiency.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

7. Industrial firms lack the flexibility of their consumer-goods counterparts in moving into and out of market segments.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

8. Value-in-use constitutes a microlevel base of segmentation.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

9. The North American Industrial Classification System (NAICS) is an especially valuable source when segmenting the market on the basis of end use.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

10. The cost of research is greater at the macrolevel of segmentation than at the microlevel.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

11. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

12. Because a specific industrial good is often used in different ways, the marketer can divide the market using the NAICS.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

13. Buying organizations can be segmented based on the stages of the procurement process, such as new-task or straight rebuy.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

14. By directing its resources to all of its customers evenly, the business marketer is less vulnerable to focused competitors that may seek to “cherry pick” the firm’s most valuable customers.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

15. If the requirements of segmentation are met, it should provide the business marketer with valuable guidelines for allocating marketing resources.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

16. In order to use macrolevel bases of segmentation, the business marketer must move beyond secondary sources of information by soliciting input from the sales force or by conducting a special market segmentation study.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

17. The personal characteristics of decision-makers in buying centers, such as their decision style and confidence, are examples of macrolevel bases of segmentation.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

18. Customers that actively seek business marketing firms that can help them create new value to gain a competitive edge in their markets can be segmented using value-based strategies.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

19. A well-defined segmentation plan will fail without careful attention to implementing the plan.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

20. The Delphi method constitutes a highly sophisticated quantitative approach to sales forecasting.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

21. Time series techniques are especially appropriate when management believes that sales will behave differently in the future than they have in the past.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

22. The cycle component in a time series indicates the long term general movement in the data in one direction.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

23. The fact that sales and some causal variables are correlated implies that the causal variable “caused” sales.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

24. Time series methods are well suited to short-range forecasting because the assumption that the future will be like the past is more reasonable over the short run than over the long run.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

25. Qualitative sales forecasting techniques provide a systematic analysis of cause and effect relationships.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

26. Regression models are useful to industrial firms projecting final consumer demand for items of which their products become a part.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

27. Recent research on forecasting techniques indicates that improvements in forecasting accuracy can be achieved by combining the results of several forecasting methods.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

28. The primary advantage of the Executive Judgement method is that systematically analyzes cause-and-effect relationships.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

29. The sales force composite approach to forecasting is a quantitative forecasting method because it uses past sales data to predict future sales potential.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

30. Because the Delphi technique is often used for new products or when a product concept is unique, it is only applied to short-range forecasting.

 

ANS:  F                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

31. Regression methods of forecasting require considerable historical data to be valid and reliable.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

32. In time series analysis, the seasonal component represents regular, recurring movements within the year.

 

ANS:  T                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

COMPLETION

 

1. Customers who are not particularly price or service sensitive and who made purchases in a routine fashion of products that are not central to their operation are best known as____________________buyers.

 

ANS:  Programmed

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

2. Bargain hunters are____________________-volume buyers who are very sensitive to any changes in price or service with respect to products that are very important to their operations.

 

ANS:  Large

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

3. ____________________-focused customers are committed to being first to market with new technologies and seek new-product-development expertise that will attract new customers.

 

ANS:  Innovation

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

4. Sharing of downstream data along with replenishment plans and sales forecasts describe customers who align with____________________-tier services.

 

ANS:  High

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Managing strategy & innovation

 

5. Once demand is estimated for each segment, the manager can allocate expenditures on the basis of ____________________ volume.

 

ANS:  potential sales

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

6. ____________________ data is used to distribute inventory in the supply chain, manage stock levels at each link and schedule resources for all the members of a supply chain.

 

ANS:  Sales forecast

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

7. The ____________________ method combines and averages top executives’ estimates of future sales and is popular because it is easy to apply and understand.

 

ANS:  Executive judgment

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

8. ____________________ is a unique approach to forecasting demand in that it involves combined efforts of many functions within the firm as well as with supply chain partners.

 

ANS:

CPFR

Collaborative Planning Forecasting and Replenishment

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Managing strategy & innovation

 

ESSAY

 

1. An emerging high-technology firm develops and sells a line of electronic software products and services that enable businesses to engage in business-to-business communications and transactions with suppliers and customers. The firm’s products and services are used by retailers such as Wal-Mart, manufacturers like Pillsbury, apparel firms like New Balance Athletic Shoes, and insurance firms and others. The firm needs your assistance in segmenting this vast potential market that includes most types of businesses.

 

First, suggest possible bases of segmentation that the high-tech firm might use in isolating potential clusters or segments of customers. Next, provide a set of guidelines that the firm might follow in evaluating whether or not a particular base of segmentation provides an appropriate market and strategic fit for the firm.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

2. Johnson Technology, a highly successful producer of specialized equipment for the paper industry is contemplating entry into a new industry segment. Beth Walker, the firm’s marketing vice-president, has always felt that Johnson Technology could serve the equipment needs of food processors like General Foods. The same basic technology underlies the equipment in both sectors and Beth feels that Johnson Technology has a meaningful edge over all competitors.

 

Describe the company, competitive, and market factors that the firm should consider before committing resources to this new industry segment.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

3. Your first task as a product manager at Dow Chemical is to evaluate the market segmentation strategy followed by your predecessor. For the past four years, this manager had been dividing the market on the basis of NAICS codes and developing a separate marketing strategy for each of 5 different NAICS industries. Describe the specific steps that you would follow in evaluating the existing segmentation plan. What factors might prompt you to seriously consider making a change in the existing segmentation approach?

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

4. Provide an illustration of a situation where value-in-use segmentation would seem to be especially appropriate.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

5. You have just taken over as the new national sales manager for Smucker’s.  You have just been presented with a plan from your boss, the Vice-President of Sales, to add new institutional market segments for Smucker’s products – cafeterias in schools and hospitals.  After reading the report, you strongly believe that the new segments have been well-defined and are extremely viable.  What steps can you take to ensure that this new segmentation strategy is successfully implemented?

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

6. Effective segmentation often begins with the analysis of macrolevel bases of segmentation, and then continues with the identification of microsegments within each potential macrosegment using microlevel bases of segmentation.  However, segmentation can effectively end after considering only macrolevel variables.  Please provide an illustration of a situation where only macrolevel bases are used to identify market segments and what variables or issues business marketers should use to determine whether macrosegmentation alone is enough for effective organizational market segmentation.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Strategy | R&D Strategic & systems skills

 

7. Compare and contrast the different quantitative sales forecasting techniques that are used by business marketing managers. Be sure to note the strengths and limitations of each technique.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Strategic & systems skills

 

8. Using a product example and market setting of your choice, describe the underlying logic of forecasting with regression or causal analysis. What are the limitations of the approach?

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Strategic & systems skills

 

9. Compare and contrast the different qualitative sales forecasting techniques that are used by business marketing managers.  Be sure to note the strengths and limitations of each technique.

 

ANS:

n/a

 

PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Research | R&D Strategic & systems skills

 

10. Recent research on forecasting techniques indicates that forecasting accuracy can be improved by combining the results of several forecasting methods, leading many to advocate the use of a composite forecasting model that includes both qualitative and quantitative factors.  Using a product example and market setting of your choice, demonstrate how the use of a composite forecasting model can lead to more accurate forecasting.

 

ANS:

n/a

 

PTS:   1

NAT