Chapter 4 Entrepreneurship Review

Your indirect competition are those businesses that make most of their money selling products or services that are the same as or similar to yours. True or False?

False

Secondary data resources and observation methods can help you learn about your direct competition. True or False?

True

Superior service and frequent-buyer programs are strategies you can use to maintain customer loyalty. True or False?

True

Surveys should be kept to a page in length when read over the phone or mailed to respondents. True or False?

True

The goal of social media marketing is to product content that users will share with their social network to help a company reach more customers. True or False?

True

Your analysis of competitors should include their prices, locations, and facilities. True or False?

True

By continually evaluating your market, you can be ready to respond to changes in all of the following except (a) government, (b) communities, (c) consumer tastes, (d) competitors' offerings.

(a) government

Focus groups are quick interviews with target customers. True or False?

False

Observation is the best research method if you want to find out people's opinions. True or False?

False

One reason why small entrepreneurs can compete successfully with large retailers is because large retail chains carry more than one product line. True or False?

False

Segmenting your target market is usually not necessary because most markets are small. True or False?

False

The first step in conducting primary market research is to select a research method. True or False?

False

The movement of data between locations in a structured, computer-retrievable format is known as electronic data mining. True or False?

False

To guarantee success for your business, you must come up with a good business idea. True or False?

False

Describe the difference between demographics and psychographics.

Psychographics deal with personality traits, opinions, taste, and more. While demographics deal with age, marital status, ethnicity, gender, and more.

A competitor's strengths should be viewed as threats to your business. True or False?

True

A market segment is made up of people who share common characteristics. True or False?

True

As an entrepreneur, you may find that indirect competitors (a) are more difficult to locate than direct competitors, (b) are usually located in malls or shopping centers, (c) make most of their money selling the same or similar products or services that you sell, (d) none of these.

(a) are more difficult to locate than direct competitors

A good survey should (a) have easy-to-answer questions, (b) be at least two pages long, (c) explain in detail why you are conducting the survey, (d) all of these.

(a) have easy-to-answer questions

Demographics are data that describe a group of people in terms of their (a) income, (b) tastes, (c) opinions, (d) needs.

(a) income

Finding hidden patterns and relationships in customer data is called data (a) mining, (b) warehousing, (c) collection, (d) evaluation.

(a) mining

All of the following can provide information about direct competition except (a) the U.S. Postal Service, (b) the Internet, (c) your local chamber of commerce, (d) observation methods.

(a) the U.S. Postal Service

Customer relationship management focuses on (a) understanding customers as individuals (b) understanding customers as part of a group, (c) identifying a target market, (d) none of these.

(a) understanding customers as individuals

Which of the following is not a way to collect primary data? (a) Focus groups, (b) Consumer opinion blogs, (c) Surveys, (d) Observation.

(b) Consumer opinion blogs

Which of the following would most likely be the target market for a car dealer selling moderately priced minivans? (a) Single people with higher incomes, (b) Middle-class families with children, (c) People who are retired, (d) None of these.

(b) Middle-class families with children

Small businesses may have difficulty competing with large retailers because large retailers: (a) develop more complete customer profiles, (b) are able to keep larger quantities of products in stock, (c) have a larger target market, (d) offer superior service.

(b) are able to keep larger quantities of products in stock

A description of the characteristics of the person or company that is likely to purchase a product or service is a (a) target market, (b) customer profile, (c) psychographic profile, (d) demographic summary.

(b) customer profile

In the first step in the market research process, you need to (a) determine what data you need to collect, (b) define the market research question, (c) decide how you will gather data, (d) determine how much data you will need to collect.

(b) define the market research question

Data that help you determine where your potential customers live and how far they will travel to do business with you are called (a) use-based data, (b) geographic data, (c) census data, (d) secondary data.

(b) geographic data

The main purpose of customer loyalty strategies is to (a) obtain new customers, (b) keep customers happy so that they return to the business, (c) save money, (d) none of these.

(b) keep customers happy so that they return to the business

All of the following are strategies designed to maintain customer loyalty except (a) providing store-specific credit cards, (b) locating in a city center, (c) having easy return policies, (d) having more convenient hours than other businesses.

(b) locating in a city center

Most products and services appeal to (a) a large portion of the population, (b) the demographic market, (c) a market segment, (d) none of these.

(c) a market segment

Social media marketing (a) helps a company get indirect feedback from customers, (b) is a useful but expensive way to promote a product, (c) is a good way for companies to increase exposure, (d) has failed to catch on because not everyone uses social media.

(c) is a good way for companies to increase exposure

The customers you would most like to attract are referred to as your (a) competition, (b) market segments, (c) target market, (d) demographics.

(c) target market,

In designing a survey, you should consider all of the following except (a) length of the survey, (b) how you plan to administer it, (c) when you can get the best information, (d) the purpose of each question.

(c) when you can get the best information

Secondary data are found (a) in government publications, (b) on the Internet, (c) in newspapers, (d) all of these.

(d) all of these

Psychographics are data that describe a group of people in terms of their (a) lifestyle habits, (b) personality traits, (c) opinions, (d) all of these.

(d) all of these.

Which of the following would be considered an indirect competitor of McDonald's? (a) Kentucky Fried Chicken, (b) Pizza Hut, (c) Subway, (d) all of these.

(d) all of these.

Which of the following is not an example of a touch point? (a) a product registration form, (b) the return of a completed warranty card, (c) a request for product information, (d) an order of goods from a supplier.

(d) an order of goods from a supplier

A competitive analysis does all of the following except (a) identify competitors, (b) summarize the products and prices offered by competitors, (c) identify threats from a competitor, (d) research a competitor's business plan.

(d) research a competitor's business plan.

Data that help you determine how often potential customers use a particular service are called (a) geographic data, (b) demographics, (c) psychographics, (d) use based data.

(d) use based data

A customer profile should include demographic data but not psychographic data. True or False?

False

A marketing strategy identifies customers that you can serve more effectively than your competitors can, but it cannot help you determine the size of your market. True or False?

False

Data that helps you determine how often potential customers use a particular service is called a customer profile. True or False?

False

Demographics describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits. True or False?

False

To retain customers, you will need to occasionally ask them for their opinions about your business and respond to their feedback. True or False?

False

Businesses typically enter into areas where there is competition. True or False?

True

Collecting primary data can be expensive and time-consuming. True or False?

True

Economic trends and industry forecasts help determine the kind of primary data research to perform. True or False?

True

Entrepreneurs estimate demand for their products or services by identifying their target market. True or False?

True

Information collected for the very first time to fit a specific purpose is primary data. True or False?

True

Marital status, income, and age are useful data for identifying your target market. True or False?

True