MKT305 - Chap 5

1. In a _____ approach, a central person or persons take the responsibility for forecasting and prepare an overall sales forecast. A. top-down B. linear C. nonlinear D. bottom-up

a

13. Which of the following adopters forms the smallest group in the diffusion of innovation curve? A. Innovators B. Laggards C. Early adopters D. Late majority

a

15. Which of the following statements is true of forecasting? A. Forecasts are not immune to anchoring biases. B. Capacity constraints can never be misinterpreted as forecasts. C. A good forecasting technique encourages implicit assumptions. D. The technique of sandbagging aids in effective forecasting.

a

17. Which of the following ways of collecting information best illustrates a marketing database? A. "Cookies" or electronic signatures placed at a customer's personal computer B. Detailed sales and inventory about the fastest-selling items in a particular store C. Companies' annual and financial reports and government documents D. Customer information captured from salespersons

a

5. Which of the following is true of surveys? A. A survey of buyer's intention helps in forecasting sales of a prototype. B. A survey of sales force opinion is conducted for buyers to forecast sales. C. A survey method is superior to a statistical or observational method. D. A survey has the limitation that whoever is surveyed is knowledgeable.

a

9. Which of the following is true of an analogy forecasting method? A. It is a useful approach for entrepreneurs to forecast sales of a new business. B. It is best suited to forecast sales of established products than that of new products. C. It is purely based on observations on what people actually do. D. It conducts surveys to estimate market potential or forecast sales.

a

11. _____ is an example of a mathematically-driven approach to forecast sales. A. Observation B. Conjoint analysis C. Judgment D. Focus group

b

20. The design, collection, analysis, and reporting of study intended to gather data pertinent to a particular marketing challenge or situation is referred to as _____. A. benchmarking B. marketing research C. marketing myopia D. marketing mix

b

21. What is the first step in the marketing research process? A. Reporting results to the decision maker B. Identifying managerial problem and establishing research objectives C. Collecting and analyzing data D. Determining data sources, types of data, and research approaches required

b

4. RobustTires is an established tire manufacturer in Topeka. Every major brand of car uses its tires. It plans to open a branch in Buffalo City for which it intends to use time series analysis to forecast sales and the market potential. Which of the following methods is exemplified by RobustTires? A. Analogy method B. Statistical method C. Observation method D. Survey method

b

8. When major television manufacturers introduced high-definition televisions, they had to account for characteristics like picture quality, the levels of which were unprecedented. They used data collected from the introduction of color television when only black and white television was prevalent. Which of the following methods of forecasting was used here? A. Survey B. Analogy C. Observation D. Judgment

b

12. Which of the following statements is true of an adoption process? A. Social media hardly influences the speed of the adoption process. B. Legitimacy of the new product is irrelevant to the adoption process. C. The speed of the adoption process depends on the relative simplicity of a new product. D. The adoption process always resembles an inverted V-curve when plotted on a cumulative basis.

c

14. Which of the following characteristics is true of adopter groups? A. Innovators are not receptive to new ideas and tend to adopt a product late. B. Laggards are more venturesome than later adopters. C. Late majority adopt a new product for either economic or social reasons. D. Early adopters want to be sure that a new product will prove successful before adoption.

c

16. BizWear Inc. is a retail chain specializing in business wear for women. A detailed report on the fastest-selling and the slowest-moving items of the previous week is prepared by every BizWear outlet. It includes sales information about garments sold in terms of style, color, store, location and region, and various time periods. This helps BizWear to keep pace with daily developments. Which of the following market knowledge systems is employed by the retail chain? A. Marketing databases B. Competitive intelligence systems C. Internal records systems D. Client contact systems

c

18. A(n) _____ refers to the margins that a buyer generates over a lifetime less the cost of serving the customer. A. product lifetime value B. inventory index C. customer lifetime value D. chain ratio

c

19. Which of the following is true of competitive intelligence systems? A. It is an outlawed approach of analyzing information about competitors' activities. B. It involves analyzing the inventory and detailed sales reports of stores. C. It uses online databases and government documents as its source of information. D. It allows the effective capture of customer intelligence from salespeople.

c

3. Which of the following is true of a statistical forecasting method? A. It directly observes what real consumers do in the product-market. B. It is a good technique to forecast sales for new products. C. It generally assumes that the future will look very much like the past. D. It surveys suppliers and consumers to estimate market potential.

c

6. HoneyDew, a well-known confectionery, plans to introduce a walnut fudge candy. It asks some of its regular customers to sample the candy and offer their opinions. This way the management hopes to estimate the likely number of buyers for the product, if introduced in its store. Which of the following techniques did HoneyDew use to forecast sales? A. Observation B. Statistical technique C. Survey D. Analogy

c

10. Which of the following is true of a live test market? A. It does not protect a firm from competitors who use marketing tactics that mislead the company conducting the tests. B. It is the cheapest method to forecast sales. C. It is more prevalent than experimental test markets. D. It does not let a firm's competitors to buy the checkout scanner data without bearing test marketing expenses.

d

2. Which of the following approaches is used to prepare a sales forecast in decentralized firms? A. A top-down approach B. A linear approach C. A non-linear approach D. A bottom-up approach

d

7. Which of the following methods is best suited to forecast sales of new products? A. Statistical method B. Survey C. Observation D. Analogy

d