Entrepreneurship Chapter 4 Test Review

True

Once you have collected all of your primary and secondary data, the next step is to determine how to use the data to make a decision

b. Customer feedback from a survey

Sources of secondary data include all of the following except a. Publications issued by government and community organizations b. Customer feedback from a survey c. Trade magazines and websites d. Newspaper articles

b. determine the data needed

The FIRST step of primary market research is to a. collect the data b. determine the data needed c. analyze the data d. define the question

True

The first step in a competitive analysis is to make a list of your competitors

Survey

What is the most common type of primary market research?

d. Create a customers profile

Which of the following is not a step involved when preparing a competitive analysis? a. Make a list of all competitors b. Summarize products and prices offered by competitors c. List your competitor's strengths and weakness d. Create a customers profile

a. Statistics from a government website

Which of the following is not an example of primary data? a. Statistics from a government website b. Survey c. Observation of customer behavior d. All of the above are examples of primary data

Direct competition

a business that makes most of its money selling the same or similar products

Survey

a lists of questions you would like to ask your customers to find information that will help you promote or sell your product.

Secondary Data

data found in already-published sources

CRM

is the goal of a new marketing trend that focuses on understanding customers as individuals instead of as part of a group

25%

An online bookstore sent electronic coupons to Carrie 48 times last year. She used 12 of them. What percentage of the electronic coupon did Carrie use?

False

Business use frequent-buyer programs to help with CRM, they have fallen out of favor in recent years because they have been shown to have little impact on customer loyalty

d. the number of people who purchase soft drinks at the local pizza parlor

Data on all of the following can be found in secondary data resources EXCEPT a. the population of towns and neighborhoods b. employment statistics for specific reins of the country c. the average household income in your town d. the number of people who purchase soft drinks at the local pizza parlor

True

If someone relies on their gifts or talents instead of their character they could be considered as having an oversized gift

c. touch point

In a CRM system, any type of interaction a customer has with a company is called a a. business contact b. marketing interaction c. touch point d. B2C interface

43.25

Iris wants to sell custom-made T-shirts to high school students in her community. For several days, she visited the local mall and counted the number of teenagers she saw wearing T-shirts. She recorded the following information. Day 1: 32 Day 2: 60 Day 3: 53 Day 4: 28 What is the average number of teenagers wearing T-shirts each day?

d. All of the above

It is difficult for small businesses to compete with large retailers because a. Large retailers are able to order and stock products in larger quantities b. Large retail chains don't rely on a single product line c. Large companies have more resources to devote to advertising d. All of the above

False

Locating your direct competition is more difficult than finding your indirect competition

False

Longer surveys are always better because you can collect more information

True

Two disadvantages of collecting primary data is that it is time-consuming and costly

Process of examining large data bases in order to generate new information

What is data mining?

c. Customers have no influence on products or services offered

Which of the following is NOT a reason that entrepreneurs need to know who their customers are? a. Companies cannot remain in business without customers b. Customers are a business's most important asset c. Customers have no influence on products or services offered d. Knowing who your customers are can help you estimate demand for products

a. Offering superior service

Which of the following is a strategy for maintaining customer loyalty? a. Offering superior service b. Adhering to strict return policies c. Keeping standard business hours d. None of the above

c. Check with your competition

Which of the following is not a good way to get customer feedback a. Use a customer feedback box b. Call customers the day after they make a purchase c. Check with your competition d. None of the above

Focus groups

an in-depth interview with several target customers who provide ideas on products and services

Competitive Analysis

identifying and examining the characteristics of a competing firm