True/False
Indicate whether the sentence or statement is true
or false.
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1.
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The
target market consists of the individuals or companies that are interested in a particular product or
service and are willing and able to pay for it.
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2.
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When
you concentrate your selling efforts on a certain type of individual, you will be more likely to sell
that person what you want to sell.
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3.
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Psychographics are data that describe a group of people in terms of their tastes,
opinions, personality traits, and lifestyle habits.
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4.
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Using
psychographic and demographic data can help you identify the target market for your product or
service.
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5.
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A
customer profile should include psychographic data about the customer, but demographic data are not
needed because opinions and lifestyle habits are the most important characteristics of
customers.
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6.
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Market segments, which are groups of customers that share common charateristics, are
divisions of your target market.
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7.
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When
businesses enter areas where there is competition, they should try to identify a customer need that
the competition is satisfying.
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8.
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Secondary data include unpublished information about population, family size,
household income, economic trends, and industry forecasts.
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9.
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Primary data, information collected to fit a specific purpose, can help you identify
and understand the target market.
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10.
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The
first step in primary market research is to define exactly what you are trying to find
out.
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11.
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The
best methods to use for gathering primary data are observation and questionnaires.
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12.
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The
five steps involved in primary-data market research are: define the data, select a research
method, collect data, analyze data, and draw conclusions.
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13.
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It is
helpful to record a focus group session so that comments can be reviewed carefully after the session
is over.
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14.
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Questions in a survey should be clearly worded and easy to answer, and only the most
important questions should be included.
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15.
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After
developing a plan of action, you should draw conclusions about your data analysis.
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16.
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A
business that makes only a small amout of money selling the same or similar products or services as
another business is indirect competition.
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17.
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Large
businesses, which are often indirect competitors of entrepreneurs, face less risk because they have
only one product line.
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18.
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Looking at your competition in key areas will help you figure out how to retain
customers.
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19.
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If
you can find a weakness in a direct competitor, you can arrange for your business to have a strength
in that area.
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20.
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Listening to customers and responding to feedback is the most important step in
maintaining customer loyalty.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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21.
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Data
that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle
habits are a. | demographics | c. | psychographics | b. | demonstration data | d. | psychology data | | | | |
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22.
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Market research is a system for collecting, recording, and analyzing information
about a. | customers | c. | goods and
services | b. | competitors | d. | all of these | | | | |
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23.
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In
the second step of the market research process, you need to a. | design a
questionnaire | c. | define exactly
what you are trying to find out | b. | collect secondary data | d. | decide what method you plan to use to collect
data | | | | |
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24.
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The
target market comprises the individuals or companies that are interested in a particular product or
service and a. | can afford to
pay for it | c. | are willing and
able to pay for it | b. | are customers of the
competition | d. | are located in
the surrounding area | | | | |
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25.
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A
business that makes only a small amount of money selling the same or similar products or services as
another business is a. | indirect competition | c. | secondary competition | b. | direct
competition | d. | primary
competition | | | | |
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26.
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A
customer profile a. | is a description
of the characteristics of the person or company that is likely to purchase a product or
service | c. | can help you
understand your competition | b. | is needed only for primary market
research | d. | all of
these | | | | |
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27.
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Information collected for the very first time to fit a specific purpose
composes a. | psychographics | c. | secondary
data | b. | primaray
data | d. | market
data | | | | |
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28.
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To
keep customers, you will need to a. | develop strategies to keep them
happy | c. | stay in touch
with their needs | b. | respond to their concerns | d. | all of these | | | | |
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29.
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Focus
groups a. | allow for
in-depth discussion about a topic | c. | should include your competitors | b. | are never used
to collect primary data | d. | can help you
interpret your data | | | | |
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30.
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Competitors should be analyzed in terms of their a. | size | c. | location and
price | b. | advertising campaigns | d. | suppliers | | | | |
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Matching
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a. | Customer
profile | h. | Market
segments | b. | Customers | i. | Observation | c. | Demographics | j. | Primary
data | d. | Direct
Competition | k. | Psychographics | e. | Focus group | l. | Secondary data | f. | Indirect
competition | m. | Survey | g. | Market research | n. | Target market | | | | |
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31.
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Data
found in already-published sources
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32.
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A
system for collecting, recording, and analyzing information about customers, competitors, goods, and
services
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33.
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A
description of the characteristics of the person or company that is likely to purchase a product or
service
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34.
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Data
that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle
habits
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35.
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Groups of customers that share common characteristics
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36.
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The
individuals or companies that are interested in a particular product or service and are willing and
able to pay for it
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37.
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Information collected for the very first time to fit a specific purpose
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38.
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Competition from a business that makes most of its money selling the same or similar
products or services as another business
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39.
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An
interview with groups of target customers who provide valuable ideas on products or
services
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40.
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Data
that describe a group of people in terms of their age, marital status, family size, ethnicity,
gender, profession, education, and income
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