QUESTION 1

1. Cluster analysis is which of the following?

   		a technique for grouping people so that groups are most similar to one another
   		a technique for grouping people so that groups are as far from the centroid as possible
   		a technique for grouping people so that those in the same group are more like one another compared with those in other groups
   		a technique for grouping people so that those in the same group are different from one another compared with those in other groups

10 points

QUESTION 2

1. Which segmentation type is the best predictor of future outcomes?

   		behavioral segmentation
   		demographic segmentation
   		psychographic segmentation
   		cluster segmentation

10 points

QUESTION 3

1. A centroid is which of the following?

   		mean point of the Euclidean distance between parallel lines
   		center of mass of a geometric object of uniform density
   		average of all points within a cluster
   		midpoint of all points within a cluster

10 points

QUESTION 4

1. Which is true about differentiated targeting?

   		the firm commits all of its marketing resources to serve a single market segment
   		the firm ignores the segmentation information and offer the same marketing effort to everyone in the population
   		the firm offers a different marketing mix to each individual
   		the firm targets each of the potential segments it discovers with a different marketing mix

10 points

QUESTION 5

1. Segmenting people by their feelings about a product category would be an example if which type of segmentation?

   		behavioral segmentation
   		psychographic segmentation
   		demographic segmentation
   		product segmentation

10 points

QUESTION 6

1. What is a dendrogram?

   		a diagram illustrating a hierarchy of clusters
   		a diagram of K-means clusters
   		a diagram of Euclidean distances
   		a diagram of dendrogenous segmentation

10 points

QUESTION 7

1. Which of the following statements is false?

   		Hierarchical clustering seeks to build an ordering of groups.
   		Hierarchical clustering is a type of K-means cluster analysis.
   		Hierarchical clustering is often presented as a dendrogram.
   		Hierarchical clustering can be time-consuming with large datasets.

10 points

QUESTION 8

1. Which is not true about Euclidean distance?

   		Euclidean distance is an integral part of hierarchical clustering.
   		Euclidean distance is the straight-line distance between two points.
   		Euclidean distance includes geographic and non-geographic distance calculations.
   		Euclidean distance is the sum of squared differences in the distance measures between two data points.

10 points

QUESTION 9

1. Which is true about positioning?

   		emphasizes serving all market segments by achieving a certain position in buyers' minds technique
   		is a technique for grouping people so that groups are most similar to each other.
   		emphasizes serving a specific market segment by achieving a certain position in buyers' minds
   		uses Euclidean distance to position people in a cluster map

10 points

QUESTION 10

1. Which is the third step of the Six Steps to Implementing STP?

   		develop marketing mix for each target segment
   		select the segment(s) you will target
   		profile the segments
   		develop measures of segment attractiveness