chapter 4 terms & concepts review

Demographics

Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income

businesses do not need to identify their target market in order to succeed.

FALSE

longer surveys are always better because you can collect more information

FALSE

collecting primary data can be time-consuming and expensive

TRUE

Direct Competition

a business that makes most of its money selling the same or similar products or services to the same market as other businesses

Customer Relationship Management (CRM)

a company's efforts to understand customers as individuals instead of as part of a group

customer profile

a description of the characteristics of the person or company that is likely to purchase a product or service

it is difficult for small business to compete with large retailers because

all of the above

to identify your target market, you need to know

all of the above

focus group

an in-depth interview with a group of target customers who provide valuable ideas on products or services

which of the following is NOT a good way to get customer feedback?

check with your competition

which of the following is NOT a step involved when preparing a competitive analysis?

create a customer profile

sources of secondary data include all of the following EXCEPT

customers feedback from a survey

which of the following is NOT a reason that entrepreneurs need to know who their customers are?

customers have no influence on products or service offered

secondary data

data found in already published sources

market research

data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyles habits.

data that help you determine where your potential customers live and how far they will travel to do business with you are

geographic data

primary data

information collected for the very first time to fit a specific purpose

which of the following is a strategy for maintaining customer loyalty?

offering superior service

which of the following is NOT an example of primary data?

statistics from a government website