Entrepreneurship Quiz #1

Which "w" question is the hardest for consumers to answer?

"Why?" is the hardest because consumers often do not know why.

Why do research? (four points)

- Gain superior info -Changing environment -Answer managerial questions -Save money

How do companies identify attractive market segments and choose a market coverage strategy? (five concepts)

-Accessible -Differential -Sustainable -Measurable -Actionable

What is measured to determine psychographics?

-Activities -Interests -Opinions

Five Personal Factors Influencing Consumer Behavior

-Age and life-cycle -Occupation -Economic situation -Lifestyle -Personality and self-concepts

What are the three types of learning?

-Classical conditioning -Positive reinforcement -Observational learning

Five Product Characteristics that Influence Rate of Adoption

-Communicability -Relative advantage -Divisibility -Compatibility -Complexity

6 Parts of the Marketing MacroEnvironment

-Cultural -Political -Demographic -Economic -Technological -Natural

Three Cultural Factors Influencing Consumer Behavior

-Culture -Sub-culture -Social class

What are the basic characteristics used for segmenting consumer and business markets?

-Geographic -Demographic -Psychographic -Behavioral

What are some factors considered in measuring social class?

-Income -Occupation -Education -Wealth

What are the potential problems with secondary data?

-Information may not exist -Information may not be relevant, accurate, current, or impartial

What are the five consumer buying roles?

-Initiator -Influencer -Decider -Buyer -User

6 Parts of the Marketing MicroEnvironment

-Intermediaries -Competitors -Customers -Suppliers -Publics -Company

What are the advantages of secondary data?

-Less time to obtain -Lower cost than primary research -Alternate means of access -Benefit from resources of others

Four Psychological Factors Influencing Consumer Behavior

-Motivation -Perception -Learning -Beliefs and attitudes

Three Social Factors Influencing Consumer Behavior

-Reference groups -Family -Roles and status

Three Considerations When Developing Measure of Segment Attractiveness

-Segment Size and Growth -Segment Structural Attractiveness -Company Objectives and Resources

Three Questions to Consider When Defining A Competitive Market Identity

-Which positions are of greatest value to our target customers given their needs? -Which of these positions are "taken," and which positions are relatively free of competition? -Which of the available positions fits best with our objectives and our distinctive capabilities?

What are the three outputs (responses) to the consumer's black box process?

-exchange -no exchange -more information sought

What are the three types of perception?

-selective retention -selective attention -selective distortion

What are the three inputs (stimuli) to the consumer's black box process?

-the marketing mix -competing marketing mixes -Social influences (culture, social class, reference groups, & family)

The Five Stages in the Adoption Process

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

3 steps of Opportunity Identification

1. Customer Analysis 2. Competitive analysis 3. Analysis of organization capabilites

The Five Steps of the Market Research Process

1. Define problem and research objectives 2. Develop plan to collect data 3. Collect data 4. Interpret findings 5. Report findings

3 Parts of Synthesis of Entrepreneurship

1. Discovery, evaluation, and exploitation of opportunities. 2. Start a new business. 3. Capacity to take risks.

In what three cases is it okay to over-satisfy customers?

1. For reputation purposes 2. To compensate for a problem 3. When launching a new product

What are the five adopter groups?

1. Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards

What are the three sources of Market Research?

1. Internal Data 2. Marketing Intelligence 3. Marketing Research

The 4 Basic Consumer Functions

1. Knowledge function 2. Utilitarian function 3. Value-expressive function 4. Ego-defensive function

The Five Steps of the Buyer Decision Process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Postpurchase behavior

Four Motivators for a Consumer to Take Action

1. Needs 2. Wants 3. Value 4. Demands

From the bottom to the top, what are the five components of Maslow's Hierarchy of Needs?

1. Physiological 2. Safety 3. Love/Belonging 4. Esteem 5. Self-actualization

What are the two marketing-research directions?

1. Problem Identification Research - What is not working? 2. Problem Solving Research - Test solutions to make what is not working work.

3 Generic Strategies for Achieving a differential advantage over competitors

1. Product differentiation 2. Overall cost leadership 3. Special market focus offering product differentiation and low cost

The Five Aspects of Managing and Growing an Entrepreneurial Firm

1. Unique marketing issues 2. The important of intellectual property 3. Preparing for and evaluating the challenges of growth 4. Strategies for firm growth 5. Franchising

Psychological Explanation (Internal) + Cultural Explanation (External) =

Acquisition, usage, and disposition decisions

Personality may predict _______.

Behavior

Variables like occasions, benefits, loyalty status, usage rate, and user status are used when diving the market into groups based on this type of segmentation.

Behavioral

This is used on the basis of the most important benefit sought by consumers when purchasing the product or service.

Benefit segmentation

This targeting strategy uses one product mix for a group of distinct targets.

Concentrated

What is the difference between enduring involvement and situational involvement?

Constant importance to needs versus temporary importance to needs.

A perceptual map positions the brand based on whose views?

Consumers

This targeting strategy uses one product mix for each distinct target.

Differentiated

Over-satisfying customers is recommended often. True or False?

False. Over-satisfying customers is recommended in very few cases.

What is the marketing concept?

In order to succeed, businesses must identify and satisfy the needs and desires of the consumer.

Which has a wider, better focus, market orientation or marketing orientation?

Market orientation.

A positioning map positions the brand based on whose views?

Marketers

Targeting one or more segments is more or less profitable than targeting the entire market?

More

What are the four components of a PEST analysis?

P - Political E - Economical S - Social T - Technological

The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world is _______.

Perception

What is the difference between cognitive involvement and affective involvement?

Relevant to functional needs versus relevant to hedonic needs.

What is response involvement?

Relevant to need for participatory activities.

What does STP stand for?

S - Market Segmentation T - Market Targeting P - Market Positioning

What are the four components of a SWOT analysis?

S - Strengths; Things the company does well W - Weaknesses; Things the company does not do well. O - Opportunities; Conditions in the external environment that favor strengths. T - Threats; Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

A company over-focusing on its sales becomes myopic, and marketing focuses on _______ rather than ______.

SELLING rather than SATISFYING.

Which aspect of STP is at the core of a successful marketing strategy?

Segmentation

_______ must exist in the marketplace.

Segments

Possessions reflect ________.

Self-concept (identity)

The Four Steps of the Entrepreneurial Process

Step 1: Deciding to become an entrepreneur. Step 2: Developing successful business ideas. Step 3: Moving from an idea to an entrepreneurial firm. Step 4: Managing and growing the entrepreneurial firm.

The Four Steps of Moving from an Idea to an Entrepreneurial Firm

Step 1: Preparing the proper ethical and legal foundation. Step 2: Assessing a new venture's financial strength and viability. Step 3: Building a new venture team. Step 4: Getting financing or funding.

The Five Steps of Developing Successful Business Ideas

Step 1: Recognizing opportunities and generating ideas. Step 2: Feasibility analysis. Step 3: Writing a business plan. Step 4: Industry and competitor analysis. Step 5: Developing an effective business model.

What is the fifth factor category for influencing consumer behavior?

The buyer

What is consumer behavior?

The cognitive and physical activity associated with the perception, evaluation, choice, purchase, use, and disposal of goods and services.

What is marketing?

The delivery of customer satisfaction at a profit and long-term.

Value is measured first, before satisfaction. What is satisfaction?

The difference between expected performance and perceived performance.

What is the differential threshold (The Weber Law)?

The minimal difference that can be detected between two stimuli. Aka, just noticeable difference.

What is a problem?

The perceived difference between an ideal and actual state.

What is market research?

The planning, collection, and analysis of information relevant to strategic business planning.

This targeting strategy uses 1 product mix for all with no specific target identification.

Undifferentiated

Entrepreneurs sell ______.

a solution to a problem.

This is the lowest level at which an individual can experience a sensation.

absolute threshold

Segment structural attractiveness considers the effects of...

competitors, availability of substitute products, and the power of buyers and suppliers.

Positioning is selecting an image to fit the required image based on ________ and _________.

consumers and competitors.

Qualitative research is non-statistical and used to...

develop an initial understanding.

Learning occurs through the interplay of...

drives, stimuli, cues, responses, and reinforcement.

What are the two unconscious matters that are difficult to control and express?

emotional and psychological

Sensory adaption is...

getting used to certain sensations.

Causal research is quantitative and tests_____.

hypotheses about cause-and-effect relationships.

Descriptive research is quantitative and describes such things as _______.

market potential for a product or attitudes and demographics of customers who buy the product.

Exploratory research is qualitative and gathers _____.

preliminary information that will help define the problem and suggest hypothesis.

"The consumer is curious, but at the same time, they will not imagine themselves what they want. It is our duty as a producer to _______ ________" - Pernod Ricard

propose innovation

Quantitative research is statistical and used to...

recommend a final course of action.

This raises drive to the level of motivation.

stimulus object

Culture, the most influential factor, is...

the set of values, perceptions, wants, & behaviors learned by a member of a society from family.

Marketers cannot create needs, but can help people articulate _________.

their needs into wants.

In being overly-marketing focused, a firm might become biased in trying to satisfy and only satisfy. The risk is _____.

to lose sight of profits.

A long-term focus requires relationship marketing, that is ________.

trust and commitment with customers.