Business Management Chapter 9

customer profile

a detailed description of an archetypical or hypothetical potential consumer for a product or service

perishability

describes a service that if not used when offered cannot be saved for later use

Market segmentation requires entrepreneurs to _____

determine the best markets for their products or services

total available

refers to all of the people or organizations in a region who might consider a product or service being offered

Which of the following statements about a pivot are correct?

A pivot to a different customer base may be appropriate to focus on individuals who would be more willing to buy a product for the original purpose. It may be time to look for a new business idea, if pivoting will not work. A pivot may be necessary if a product/service does not quite fit with what the targeted customer needs.

Which of the following are true statements in the context of target markets?

A small business can consider focusing its efforts on only one target market initially and then consider adding more later. An entrepreneur can select more than one target market.

In marketing, identify list of things given below that are included in the total product.

All included services. The entire bundle of products. Extras, such as service, warranty, and delivery.

Which of the following are more typical outcomes of a feasibility analysis in the process of idea evaluation?

An idea is unlikely to be economically converted into a product or service. An idea may result in a product but may not attract a large enough market to be profitable.

Which of the following statements about a customer profile are correct?

Developing a customer profile is an important first step of doing research on customers and their needs. It is also called a customer persona or user persona. Research should begin with face-to-face interviews with potential customers. Get out of the building and talk to potential customers to help develop an accurate customer profile. Researchers should be cautious not to collect biased data to draw conclusions.

Identify true statements about segmented markets.

Firms consider these markets manageable pieces. Members of these markets have some common characteristics.

Which of the following statements are a purchasing process question?

How does the individual or organization use these roles to make purchasing decisions. Who is in each role and what is important to them in making those decisions.

List the stages of new product development in the correct order

Idea generation Idea screening Idea evaluation Product development Commercialization

Rank the steps involved in the process of idea screening.

Ideas are listed Important factors Each idea is given a numerical score The total score

Idea generation Idea screening Idea evaluation Product development Commercialization

Marketing research and competitors Market trends and return on investment (ROI) standard Concept testing and business analysis Prototypes and test markets Marketing plans and market introduction

Which of the statements about outstanding customer service are correct?

It includes showing interest and concern for all stakeholders, such as employees, the community, suppliers as well as customers. Owners and employees should go the extra mile for customers and other stakeholders. One measure of good customer service is how quickly a business fixes mistakes.

Which of the following is a goal of the growth stage of the product life cycle?

Maximizing market shares

Which of the following is true about commercialization?

Most businesses developing a new product do not face problems during commercialization.

The 4Ps of marketing are

Product, price, place, promotion

predetermined market segment

Professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics

In the context of the concept of churn, which of the following are true statements?

The term "churn" indicates the turnover rate for a firm's customers. Retaining existing customers is more valuable than searching for and attracting new customers.

Which of the following sentences about prototypes of products are correct?

They are often referred to as a minimum viable products. They are made to prove aspects of the inventor's idea for the product. They may be functioning or just models.

pivot

a change of direction in an entrepreneur's or a firm's thinking based on new data or other findings

decision maker

a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

purchaser

a customer role that describes a person or institution that pays for or obtains a product or service

end user

a customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life

influencer

a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices

penetrated market

actual number of customers of an operating firm, divided by the size of the target market

The total available market

all of the people or organizations in a region who might consider a product or service being offered

primary research

an approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation

serviceable obtainable market

customers that a firm expects to be interested in its particular product or service

serviceable available market

customers within the geographic reach of a firm

ethnographic research

data gathered by simple observation--seeing what consumers do, rather than asking them

me-too products

essentially similar to something already on the market

Information about the buying habits and demographics of predetermined market segments help firms

identify financial and shopping characteristics of these segments

augmented product

includes the core product plus features that tend to differentiate it from the competition

A company's penetrated market

is the actual number of customers of an operating firm, divided by the size of the target market

Feasibility analysis is a critical step in the process of new product development because

it precedes a potentially large investment of an entrepreneur's time and money into the creation of a key service or product

churn

refers to the percentage of customers a firm typically loses after their first purchase from the firm

marketing mix

team 4P's

total product

the entire bundle of products, services, and meanings of a firm's offering

product development process

the procedure to organize and pursue the creation of new goods or services

customer development process

the procedure to organize and pursue the finding, obtaining, and keeping of new customers

commercialization

the process of making a new product ready for use by consumers.

the purchasing process

the sequence of steps an individual or organization goes through in making a decision to buy a product or service

inseparable product

the service and the consumption of the service happen at the same time

Which of the following are examples of service perishability?

Car rental Cab Airline seats

Which of the following are true statements in the context of the service life cycle?

It is possible to completely eliminate the decline stage in the life cycle of a service. In comparison with products, services are much easier to modify "on the run."

target market

refers to a group of customers in the area a firm plans to serve who would be likely to be interested in the firm's product, or those of competitors