47. The _____ method is probably the oldest form of research in existence.
a.
questioning
b.
secondary research
c.
observational
d.
interpretive
48. ___________ and ____________ are questioning methods that involve contact with respondents.
a.
Questionnaires, telemarketing
b.
Observations, surveys
c.
mystery shopping, surveys
d.
Surveys, experimentation
49. The basic instrument used to guide the researcher and the respondent when surveys are taken is known
as a:
a.
questionnaire.
b.
questioning form.
c.
interview outline.
d.
guide form.
50. Marta’s job involves asking shoppers in the mall about their experience with specific products. She
works from a list given to her by the products’ producers. Marta is using the _________ method to
gather ____________ data.
a.
observational, secondary
b.
questioning, primary
c.
observational, primary
d.
questioning, secondary
51. Ned was just about ready to begin his market research when an unknown rival launched a similar
product in the market. Ned’s best course of action would be:
a.
to go ahead with the research to support future decisions.
b.
to wait and see how well the rival’s product sells.
c.
to dispense with the research and launch his own product.
d.
to scrap his original product idea and come up with something else.
52. Nardella has completed her market research but now feels overwhelmed by the large amount of data.
It might be helpful to her to :
a.
use a program like Excel to help her interpret the data.
b.
use a program like PowerPoint to create a slide show for her investors.
c.
hire a consultant to summarize the data.
d.
work with college students to sort the data.
53. Marketing research should be viewed as a supplement to, not a replacement for _____.
a.
the observational method.
b.
questionnaires.
c.
mail surveys.
d.
intuitive judgement.
54. A ____ is defined as a group of customers or potential customers who have purchasing power and
unsatisfied needs.
a.
consumer segment
b.
target market
c.
market
d.
consumer market
55. In order to be appropriately considered a market, a group of customers or potential customers must
have
a.
purchasing power.
b.
market power.
c.
satisfied needs.
d.
correlated needs.
56. Odessa is writing the marketing plan for her bed and breakfast. She has written that her market
inlcudes everyone from infants to the elderly. This is incorrect because:
a.
customers must have purchasing power.
b.
the elderly are not likely to have unsatisfied needs.
c.
infants cannot write.
d.
infants do not make buying decisions.
57. Oliver figured if people were willing to pay for bottled water, they would also be willing to pay for
bottled air. Oliver has forgotten that customers will buy only if they have:
a.
correlated needs.
b.
inversely related needs.
c.
unsatisfied needs.
d.
unrecognized needs.
58. Paul is a CPA (certified public accountant). He offers a variety of services depending on the needs of
his customers. Some hire him to perform bookkeeping activities; others have him prepare their tax
return. Pau’s market is segmented based on:
a.
benefit variables.
b.
demographic variables.
c.
income levels.
d.
basic needs.
59. Rhoda describes her typical customer as female between the ages of 22 and 35 with at least two years
of college and a household income above $50,000 annually. Rhoda is using _________ to describe
her customers.
a.
numeric variables
b.
benefit variables
c.
demographic variables
d.
psychographic variables
60. Morton sells salt; Domino sells sugar. The best strategy for either of these products would be:
a.
the unsegmented strategy.
b.
the multi-segmented strategy.
c.
a differentiated strategy.
d.
a single-segment strategy
61. Meredith is opening a high end shoe store specializing in designer shoes. Which approach is probably
the wisest strategy for the marketing efforts of this company?
a.
Unsegmented strategy since everyone wears shoes.
b.
Multi-segment strategy since she could concentrate on persons wanting shoes for different
reasons.
c.
Single-segment strategy since only women with high disposable incomes would be a
prospective customer.
d.
Bi–segment Strategy since the company won’t be able to sell to just one segment to
survive.
62. In considering its marketing strategy a new venture will typically concentrate on
a.
mass marketing.
b.
a multi-segmented market.
c.
a single-segment approach.
d.
the Internet.
63. People of all backgrounds, occupations, and income levels wear watches but Rolex focuses only on the
high-income portion of the market. Rolex uses a(n) ____________ strategy.
a.
mass marketing
b.
multi-segment
c.
unsegmented
d.
single-segment
64. A ____ estimates how much of a product and/or service will be purchased within a market over a
defined period of time.
a.
market forecast
b.
market analysis
c.
sales forecast
d.
sales analysis
65. Richard is trying to figure out how many of his product his new business could reasonably expect to
sell in its first year. Richard is working on the:
a.
production schedule.
b.
marketing researchq
c.
inventory policy.
d.
sales forecast.
66. Entrepreneurs should base their market assessments, production schedules, inventory policies, and
personnel decisions on
a.
techniques of observation.
b.
qualitative analysis.
c.
intuition alone.
d.
the sales forecast.
67. Forecasting sales for a new venture will be the most difficult when
a.
the owner is unfamiliar with quantitative analysis.
b.
the owner is unfamiliar with qualitative analysis.
c.
the owner is starting another business in a new industry.
d.
All of the above are equally difficult.
68. Because he lacks strong forecasting skills, Stan should:
a.
become a member of his trade association.
b.
subscribe to trade journals.
c.
read magazines focused on small businesses.
d.
all of the above.
69. Shiloh has begun the sales forecasting procedure with a variable that has a very large scope and then
systematically is working down to the sales forecast. Shiloh is using the:
a.
breakdown process.
b.
buildup process.
c.
chain-linkage method.
d.
bottom-up method.
70. Theodore has identified all the buyers in a market’s submarkets and then totaled the estimated demand
for all the submarkets. Theodore used the:
a.
breakdown process
b.
buildup process
c.
chain-ratio method
d.
bottom-up
71. Ideas Unlimited is a consulting firm that provided retailers with information about regional sales
trends. To estimate demand in the market for its services, the firm’s marketing department identifies all
buyers in each category of retailers and determines how much business is possible. The market
demand estimate is based on the
a.
aggregate forecasting process.
b.
breakdown forecasting process.
c.
buildup forecasting process.
d.
indirect forecasting process.
72. What determines whether the sales forecasting process is direct or indirect?
a.
the industry orientation of the firm
b.
the nature of the predicting variable
c.
the ultimate goal of the entrepreneur
d.
the marketing philosophy of the company
73. Using the number of births in a historical record to predict the number of driver licenses issued in
subsequent years is an example of the use of a(n) ____ variable in forecasting.
a.
approximating
b.
indirect
c.
surrogate
d.
terminating
74. Sheena is using her last three years’ sales to forecast next year’s sales. Sheena is using the
_________ method.
a.
direct
b.
indirect
c.
variable
d.
primary
75. Sullivan just bought a new pickup truck with a snow plow. He contacted the National Weather
Service to get information about snowfalls to help prepare his sales forecast. Sullivan is using:
a.
primary market research.
b.
secondary data.
c.
a surrogate variable.
d.
direct forecasting
MATCHING
For each definition, select the term that best fits.
a.
actual product/service
e.
buildup process
b.
augmented product/service
f.
core product/service
c.
benefit variables
g.
customer-oriented philosophy
d.
breakdown process
h.
customer profile
1. The basic product and/or service that delivers customer benefits
2. The fundamental benefit or solution sought by customers
3. A forecasting method that begins with a large-scope variable and works down to the sales forecast
4. The basic product and/or service plus any extra or unsolicited benefits to the consumer that may
prompt a purchase
5. A description of potential customers in a target market
6. A forecasting method in which all potential buyers in a target market’s submarkets are identified and
the estimated demand is added up
7. Specific characteristics that describe customers, their purchasing power, their consumption patterns,
and other factors
Match the term with its definition. Not all terms will be used.
a.
demographic variables
e.
intellectual property
b.
direct forecasting
f.
market
c.
focus strategy
g.
market analysis
d.
indirect forecasting
h.
marketing mix
8. A marketing strategy in which cost-and differentiation-based advantages are achieved within narrow
market segments
9. The process of locating and describing potential customers
10. A forecasting method in which variables related to sales are used to project future sales
11. Specific characteristics that describe customers, their purchasing power, their consumption patterns,
and other factors
12. A group of customers or potential customers who have purchasing power and unsatisfied needs
13. The combination of productservice, pricing, promotion, and distribution activities
14. A forecasting method in which sales is the estimated variable
Match the term with its definition. Not all terms will be used.
a.
marketing research
e.
production-oriented philosophy
b.
market segmentatoin
f.
sales forecast
c.
multi-segment strategy
g.
sales-oriented philosophy
d.
primary data
h.
secondary data
15. A prediction of how much of a product or service will be purchased within a given market during a
specified time period
16. A strategy that recognizes different preferences of individual market segments and develops a unique
marketing mix for each
17. The division of a market into several smaller groups with similar needs
18. Market information that has been previously compiled
19. The gathering, processing, interpreting, and reporting of market information
20. New market information that is gathered by the firm conducint the research.
21. An emphasis on “pushing the product” to customers
Match the term with its definition. Not all terms will be used.
a.
chain-ratio metod
e.
segmentation variables
b.
customer-oriented philosophy
f.
single-segment strategy
c.
intellectual property
g.
small business marketing
d.
productoin-oriented philosophy
h.
unsegmented strategy
22. Emphasizing the product as the single most important part of the business
23. A strategy that recognizes the existence of several distinct market segments but focuses on only the
most profitable segment
24. A strategy that defines the total market as the target market
25. The belief that production and sales center on the consumer and his/her needs
26. Business activities that direct the creation, development, and delivery of a bundle of satisfaction from
the creator to the targeted user
27. The parameters used to distinguish one form of market behavior from another
28. Trade secrets
ESSAY
1. After identifying the three levels of a product and/or service’s benefit, provide an example for the US
Postal Service.
ANS:
2. Compare and contrast the three marketing philosophies discussed in the text. Give supporting
evidence on why one method is stronger than the others.
3. Identify and discuss the three components of the marketing plan and the three marketing activities used
to generate information for the marketing plan. Based on the book’s chapter spotlight, Mayan
Pigments, analyze what the company completed for each component and supporting activity..
4. What are problems with secondary data use? How can a new entrepreneur neutralize these problems?
5. What techniques used in collecting primary data? Give examples to support the answer.
6. What are some of the guidelines that should be followed in developing a questionnaire?
7. Define the term market and explain the key ingredients of that definition.
8. Holley is starting a new business and is trying to forecast sales. She has owned two other businesses,
one of which was in the same industry as this new venture. Discuss the implications for forecasting
for the new business. What could she do to increase her forecasting success?
9. Melinda, an auto insurance agent, would like to forecast the number of 16-year-olds in her county who
will be eligible to apply for driver’s licenses next year. Identify three potential sources of information
and discuss the advantages and disadvantages of each.
