Chapter 4 entrepreneurship review
A description of the characteristics of the person or company that is likely to purchase a product or service is a A) customer profile B) target market C) demographic summary D) psychographic profile
A
By continually evaluating your market, you can be ready to respond to changes in all of the following except A) government B) consumer tastes C) communities D) competitors offerings
A
A customer profile should include demographic data but not psychographic data
False
Focus groups are quick interviews with target customers
False
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
False
Secondary data resources and observation methods can help you learn about your direct competition
True
Superior service and frequent-buyer programs are strategies you can use to maintain customer loyalty
True
Surveys should be kept to a page length when read over the phone or mailed to respondents
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
Your analysis of competitors should include their prices, locations, and facilities
True
Competitors should be analyzed concerning their A) all of these B) locations C) prices D) strengths and weaknesses
A
The customers you would most like to attract are referred to as your A) target market B) demographics C) competition D) market-segments
A
The main purpose of customer loyalty strategies is to A) keep customers happy so that thur return to the business B) save money C) none of these D) obtain new customers
A
Which of the following would most likely be the target market for a car dealer selling moderately priced minivans A) middle-class B) People who are retired C) single people with higher incomes D) none of these
A
A good survey should A) be at least 2 pages long B) have easy-to-answer questions C) all of these D) explain in detail why you are conducting the survey
B
All of the following are strategies designed to maintain customer loyalty except A) having more convenient hours than other businesses B) providing store-specific credit cards C) locating in a city center D) having easy return policies
C
All of the following can provide information about direct competition except A) your local chamber of commerce B) observation methods C) the U.S. postal service D) the internet
C
As an entrepreneur, you may find that indirect competitors A) none of these B) make most of their money selling the same or similar products or services that you sell C) are more difficult to locate than direct competitors D) are usually located in malls or shopping centers
C
Demographics are data that describes a group of people in terms of their A) needs B) opinions C) income D) tastes
C
In designing a survey, you should consider all of the following except A) how you plan to administer it B) the purpose of each question C) when you can get the best information D) length of the survey
C
Secondary data are found A) on the internet B) in government publications C) all of these D) In newspapers
C
A competitive analysis does all of the following except A) identify threats from a competitor B) identity competitors C) summarize the products and prices offered by competitors D) research a competitor's business plan
D
Customer relationship management focuses on A) understanding customers as part of a group B) none of these C) identifying a target market D) understanding customers as individuals
D
Which of the following is not a way to collect primary data? A) focus group B) surveys C) observation D) customer opinion biogs
D
Observation is the best research method if you want to find out peoples opinions
False
One reason why small entrepreneurs can compete successfully with large retailers is because large retail chains carry more than one product line
False
Segmenting your target market is usually not necessary because most markets are small
False
The first step in conducting primary market research is to select a research method
False
The movement of data between locations in a structured, computer-retrievable former is known as electronic data mining
False
To guarantee success for your business, you must come up with a good business idea.
False
A competitors strengths should be viewed as threats to your business
True
A market segment is made up of people who share common characteristics
True
To retain customers, you will need to occasionally ask them for their opinions about your business and respond to their feedback
false
Most products and services appeal to A) a large portion of the population B) A market segment C) the demographic market D) none of these
B
Small business may have difficulty competing with large retailers because large A) develope more complete customer profiles B) have a larger target market C) are able to keep larger quantities of products in stock D) offer superior service
C
Social media marketing A) helps a company get indirect feedback from customers B) has failed to catch on because not everyone uses social media C) is a good way for companies to increase exposure D) is a useful but expensive way to promote a product
C
Which of the following is not an example of a touch point? A) a request for product Information B) the return of a completed warranty card C) an order of goods from a supplier D) a product registration form
C
Which of the following would be considered an indirect competitor of McDonald's A) subway B) Kentucky fired chicken C) all of these D) Pizza Hut
C
Data that help you determine how often potential customers use a particular service are called A) psychographics B) demographics C) geographic data D) use-based data
D
Data that helps you determine where your potential customers live and how far they will travel to do business with you are called A) census data B) secondary data C) use-based data D) geographic data
D
Finding hidden patterns and relationships in customers data is called data A) warehousing B) collection C) evaluation D) mining
D
In the first step in the market research process, you need to A) decide how you will gather data B) determine how much data you will need to collect C) determine what data you need to collect D) define the market research question
D
Psychographics are data that describe a group of people in terms of their A) personality traits B) lifestyle habits C) opinions D) all of these
D
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
False
Data that helps you determine how often potential customers use a particular service is called a customer profile
False
Demographics describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits
False
Businesses typically enter into areas where there is competition
True
Collecting primary data can be expensive and time-consuming
True
Economic trends and industry forecasts help determine the kind of primary data research to perform
True
Entrepreneurs estimate demand for their products or services by identifying their target market
True
Information collected for the very first time to fit a specific purpose is primary data
True
Marital status, income, and age are useful data for identifying your target market
True
