Entrepreneurship and Small Business Management, 2e (Mariotti)
Chapter 6 Exploring Your Market
1) An entrepreneur’s market is ________.
A) The building where his or her business is located
B) A three-square-block area surrounding his or her location
C) His or her business’s promotional activities
D) The group of people who are current and possible future customers
E) All of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
2) What is a focus group?
A) A method of market research that focuses on how the industry is performing
B) A method of market research that involves collecting statistics about a group of people who
might use a product
C) A method of market research that involves bringing together some people who might use a
product and having a researcher question them about it
D) A method of market research that focuses on competitor strengths
E) All of the above
Learning Obj.: LO 2
AACSB: Analytical thinking
3) In doing secondary research, there are several choices to help you. Among these are
________.
A) Magazine articles
B) Internet research
C) Business library
D) Books
E) All of the above
Learning Obj.: LO 2
AACSB: Analytical thinking
1
4) The product life cycle phases include ________.
A) Growth
B) Maturity
C) Introduction
D) Decline
E) All of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
5) The marketing term that describes owning a perception in the minds of consumers is called
________.
A) Mind share
B) Consumer perception
C) Consumer influence
D) Market share
E) Market segment
Learning Obj.: LO 3
AACSB: Analytical thinking
6) ________ ask(s) people directly through interviews or questionnaires about their perceptions
of a product or service.
A) Surveys and focus groups
B) Secondary research methods
C) Industry research
D) General research
E) Statistical research
Learning Obj.: LO 2
AACSB: Analytical thinking
7) The set of four stages that a product or market goes through from its beginning until its end is
called the ________.
A) Product life cycle
B) Marketing cycle
C) Promotion cycle
D) Merchandise life cycle
E) Phases of product maturity
Learning Obj.: LO 3
AACSB: Analytical thinking
2
8) Understanding the status and trends of an industry can be aided by ________.
A) Checking out the internet public library, your local Small Business Administration, chamber
of commerce, or local business school or college library
B) Looking for recent articles on the industry in magazines or by using Google or other search
engines
C) Looking on competitors’ Web sites
D) All of the above
E) None of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
9) There is a subtle difference between the ________ and the ________ of a product. One is a
fact while the other is a perception.
A) Features, benefits
B) Revenue, costs
C) Sales, marketing
D) Marketing, penetration
E) None of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
10) Dividing the market by purchase behaviors that have been observed is ________
segmentation.
A) Behavioral
B) Psychographic
C) Demographic
D) Geographic
E) All of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
3
11) When has a market become saturated?
A) When there has been so much advertising and publicity that almost every person in the
market is aware of the product
B) When competitors have entered the market and forced the price of the product so low that the
businesses selling it can no longer earn a profit
C) When most of the people in the market who are interested in the product have already
purchased it
D) When nobody wants to buy the product
E) When all customers decide that they do not like the product
Learning Obj.: LO 3
AACSB: Analytical thinking
12) Which of the following is a step in determining how customers decide to buy a product?
A) Analyze the buying process
B) Think about who might actually buy it
C) Determine the need it meets
D) All of the above
E) None of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
13) Which business function do experts agree you should focus on first when preparing to start a
business?
A) Marketing vision
B) Operations
C) Financing
D) Production
E) Human resources
Learning Obj.: LO 1
AACSB: Analytical thinking
14) Smart marketers always emphasize ________.
A) Benefits, not prices
B) Benefits, not features
C) Features, not benefits
D) All of the above
E) None of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
4
15) Dividing a population on the basis of age, gender, income, or education is ________.
A) Demographics
B) Marketing statistics
C) Behavioral data
D) Psychographics
E) Geographics
Learning Obj.: LO 3
AACSB: Analytical thinking
16) Which of the following aspects of a product/service is the most important to focus on when
selling?
A) Benefits
B) Features
C) Price
D) Friendliness
E) Closing the deal
Learning Obj.: LO 3
AACSB: Analytical thinking
17) Which of the following is NOT a step in the buying process?
A) Demographic analysis
B) Evaluation of purchase
C) Awareness
D) Information search
E) Evaluation of alternatives
Learning Obj.: LO 3
AACSB: Analytical thinking
18) Consumers who have a similar response to a certain type of marketing can be classified as a
________.
A) Market segment
B) Market
C) Market section
D) Market part
E) Market division
Learning Obj.: LO 3
AACSB: Analytical thinking
5
19) The positioning statement for a business includes its name/brand, its competitive
industry/category, its ________, and its audience/target market.
A) Benefits or points of difference
B) Features and points of difference
C) Features and points of similarity
D) Benefits and similarities
E) Features and benefits
Learning Obj.: LO 4
AACSB: Analytical thinking
20) The most important thing you should do before launching your product or service is
________.
A) Thoroughly research the market
B) Design your logo
C) Raise enough capital
D) Print business cards
E) Have a working prototype
Learning Obj.: LO 2
AACSB: Analytical thinking
21) Nike sells sneakers, but it also markets sneakers, using ________ to get its message out to
customers.
A) Advertising and publicity
B) Advertising
C) Publicity
D) None of the above
Learning Obj.: LO 2
AACSB: Application of knowledge
22) Positioning your product in the market involves ________.
A) Buying advertising
B) Obtaining publicity
C) Communicating your competitive advantage to the customer
D) Demonstrating the cheapest price
E) Promoting special sales
Learning Obj.: LO 4
AACSB: Analytical thinking
6