True/False
Indicate whether the sentence or statement is true or
false.
|
|
|
1.
|
The target market is the individuals or companies that are interested in a
particular product or service and are willing and able to pay for it.
|
|
|
2.
|
Using psychographic and demographic data can help you identify the target market
for your product or service.
|
|
|
3.
|
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.
|
|
|
4.
|
When businesses enter areas where there is competition, they should try to
identify a customer need that the competition is satisfying.
|
|
|
5.
|
Secondary data include unpublished information about population, family size,
household income, economic trends, and industry forecasts.
|
|
|
6.
|
Primary data, information collected to fit a specific purpose, can help identify
and understand the target market.
|
|
|
7.
|
The first step in primary market research is to define exactly what you are
trying to find out.
|
|
|
8.
|
The five steps involved in primary data market research are define the data,
select a research method, collect data, analyze data, and draw conclusions.
|
|
|
9.
|
Questions in a survey should be clearly worded and easy to answer, and only the
most important questions should be included.
|
|
|
10.
|
After developing a plan of action, you should draw conclusions about your data
analysis.
|
|
|
11.
|
Listening to customers and responding to feedback is the most important step in
maintaining customer loyalty.
|
|
|
12.
|
A customer profile should include demographic data about the customer as well as
relevant psychographic information about the customer's lifestyle and attitudes.
|
|
|
13.
|
The target market is the individuals or companies that are able to pay for a
particular product or service.
|
|
|
14.
|
Secondary data include published information about population, family size,
household income, economic trends, and industry forecasts.
|
|
|
15.
|
When you concentrate your selling efforts on a certain type of individual, you
will be more likely to give that individual exactly what he or she wants.
|
|
|
16.
|
Market segmenting, which is dividing your target market into several small
groups, is of little help in developing a product or service.
|
|
|
17.
|
The first step in market research is to collect secondary and primary
data.
|
|
|
18.
|
After analyzing and interpreting your data, you can develop a plan of action
based on your market research.
|
|
|
19.
|
Large businesses, which are often indirect competitors of entrepreneurs, face
less risk because they have more than one product line.
|
|
|
20.
|
Listening to customers and responding to feedback is less important than
providing convenient parking in maintaining customer loyalty.
|
Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
|
|
|
21.
|
Data that describe a group of people in terms of their tastes, opinions,
personality traits, and lifestyle habits are
a. | demographics | b. | demonstration data | c. | psychographics | d. | psychology data |
|
|
|
22.
|
Market research is a system for collecting, recording, and analyzing information
about
a. | customers | b. | competitors | c. | goods and
services | d. | all of these |
|
|
|
23.
|
In the second step of the market-research process, you need to
a. | design a questionnaire | b. | collect secondary data | c. | define exactly what
you are trying to find out | d. | decide what method you plan to use to collect
data |
|
|
|
24.
|
The target market is the individuals or companies that are interested in a
particular product or service and
a. | can afford to pay for it | b. | are customers of the
competition | c. | are willing and able to pay for it | d. | are located in the surrounding
area |
|
|
|
25.
|
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 | b. | direct competition | c. | secondary
competition | d. | primary competition |
|
|
|
26.
|
A customer profile
a. | is a description of the characteristics of the person or company that is likely to
purchase a product or service | b. | is only needed for primary market
research | c. | can help you understand your competition | d. | all of
these |
|
|
|
27.
|
Information collected for the very first time to fit a specific purpose
is
a. | psychographics | b. | primary data | c. | secondary
data | d. | market data |
|
|
|
28.
|
To keep customers, you will need to
a. | develop strategies to keep them happy | b. | respond to their concerns | c. | stay in touch with
their needs | d. | all of these |
|
|
|
29.
|
Focus groups
a. | allow for in-depth discussion about a topic | b. | are never used to
collect primary data | c. | should include your
competitors | d. | can help you interpret your data |
|
|
|
30.
|
Competitors should be analyzed in terms of their
a. | size | b. | advertising campaigns | c. | location and
price | d. | suppliers |
|
|
|
31.
|
The individuals or companies that are interested in a particular product or
service and are willing and able to pay for it are
a. | competitors | b. | the target market | c. | focus
groups | d. | the indirect market |
|
|
|
32.
|
Data that describe a group of people in terms of their age, marital status,
family size, ethnicity, gender, profession, education, and income are
a. | demographics | b. | demonstration data | c. | psychographics | d. | psychology data |
|
|
|
33.
|
A customer profile
a. | should include demographic data | b. | can help you understand what you need to do to
meet customer demand | c. | is a description of the characteristics of the
person or company that is likely to purchase a product or service | d. | all of
these |
|
|
|
34.
|
A system for collecting, recording, and analyzing information about customers,
competitors, goods, and services is
a. | secondary research | b. | market research | c. | customer
research | d. | market segmenting |
|
|
|
35.
|
Primary data are collected
a. | to set up focus groups | b. | because they are less expensive than secondary
data | c. | to help identify the target market | d. | from published
sources |
|
|
|
36.
|
In the first step of the market-research process, you need to
a. | observe your competition | b. | collect secondary data | c. | define exactly what
you are trying to find out | d. | decide what method you plan to use to collect
data |
|
|
|
37.
|
Questionnaires can be presented
a. | by mail | b. | in person | c. | over the
telephone | d. | all of these |
|
|
|
38.
|
A business that makes most of its money selling the same or similar products or
services as another business is
a. | indirect competition | b. | direct competition | c. | secondary
competition | d. | primary competition |
|
|
|
39.
|
Competitors should be analyzed in terms of their
a. | strengths and weaknesses | b. | size | c. | advertising
campaigns | d. | all of these |
|
|
|
40.
|
To keep customers, you will need to
a. | identify your target market | b. | respond to their concerns | c. | lease space in a
mall | d. | segment your target market |
|
Matching
|
|
|
Match each term to the correct definition below. a. | Customer profile | b. | Customers | c. | Demographics | d. | Direct competition | e. | Focus
group | f. | Indirect competition | g. | Market research | h. | Market
segments | i. | Observation | j. | Primary data | k. | Psychographics | l. | Secondary data | m. | Survey | n. | Target market |
|
|
|
41.
|
The individuals or companies that are interested in a particular product or
service and are willing and able to pay for it
|
|
|
42.
|
Competition by a business that makes only a small amount of money selling the
same or similar products or services as another business
|
|
|
43.
|
An interview with groups of target customers who provide valuable ideas on
products or services
|
|
|
44.
|
Data found in already published sources
|
|
|
45.
|
A description of the characteristics of the person or company that is likely to
purchase a product or service
|
|
|
46.
|
Data that describe a group of people in terms of their age, marital status,
family size, ethnicity, gender, profession, education, and income
|
|
|
47.
|
A system for collecting, recording, and analyzing information about customers,
competitors, goods, and services
|
|
|
48.
|
Groups of customers that share common characteristics
|
|
|
49.
|
Information collected for the very first time to fit a specific purpose
|
|
|
50.
|
Data that describe a group of people in terms of their tastes, opinions,
personality traits, and lifestyle habits
|