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c.
the Delphi technique.
d.
a market test.
e.
a customer forecasting survey.
113. The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is
a.
salespeople are generally optimistic about the future and will provide excellent forecast targets.
b.
most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales
forecast.
c.
this tends to be the fastest way to determine a good sales forecast for the upcoming period.
d.
the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers.
e.
the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.
114. When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is
using a(n)
a.
expert forecasting survey.
b.
Delphi technique.
c.
random factor analysis.
d.
external judgment survey.
e.
market test.
115. Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to
a.
allow an opportunity to obtain diverse expert opinions.
b.
allow experts to work separately to reach a consensus as to their forecasts.
c.
reach an accurate sales forecast through the use of multiple sales forecasting techniques.
d.
determine if the expert forecasting survey is superior to regression analysis.
e.
assess the extent to which this year's sales forecast is more accurate than that of previous years.
116. The forecasting techniques that assume past sales patterns will continue into the future are all variations of
a.
regression analysis.
b.
random factor analysis.
c.
seasonal analysis.
d.
time series analysis.
e.
past sales forecasting surveys.
117. A forecasting method that predicts sales based on relationships between past sales and other variables is called
a.
regression analysis.
b.
customer forecasting surveys.
c.
the Delphi technique.
d.
random factor analysis.
e.
time series analysis.
118. Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf
clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two
months of each year. Brian likely used which sales forecasting technique?
a.
the Delphi technique
b.
Executive judgment
c.
Time series analysis
d.
Market tests
e.
Regression analysis
119. Katy Ramirez is a marketer for a company that produces in-ground swimming pools. When forecasting company
sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy
using?
a.
The Delphi technique
b.
Executive judgment
c.
Time series analysis
d.
Market tests
e.
Regression analysis
120. The sales prediction technique based on the correlation between sales and other factors⎯such as population density,
per capita income, or family size⎯is
a.
executive judgment.
b.
time series analysis.
c.
regression analysis.
d.
a market test.
e.
an expert survey.
121. The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate
forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is
using which forecasting method?
a.
Time series analysis
b.
Market test
c.
Executive judgment
d.
Regression analysis
e.
Survey
122. The sales forecasting method that consists of making a product available to buyers in one or more locations and
measuring purchase response is
a.
a market test.
b.
regression analysis.
c.
trend analysis.
d.
a survey.
e.
the Delphi technique.
123. The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time
is
a.
the regression method.
b.
customer forecasting.
c.
a market test.
d.
sales force forecasting.
e.
time series analysis.
124. DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort
to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his
product. DeShon looks at the sales for the last five years and calculates a growth trend. He then collects data from a
combination of other factors, such as population density, family size, home ownership, and per capita income. Finally,
DeShon looks at the correlation between the sales trend data and the various combination of demographic data. DeShon is
employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.
a.
Time series analysis; regression analysis
b.
Executive judgment; regression analysis
c.
Market tests; regression analysis
d.
Regression analysis; time series analysis
e.
Market tests; time series analysis
125. Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new
product?
a.
Executive judgment
b.
Customer surveys
c.
Time series analysis
d.
Market tests
e.
Regression methods
126. Which of the following forecasting methods is least dependent on historical sales data?
a.
Regression analysis
b.
Trend analysis
c.
Time series analysis
d.
Cycle analysis
e.
A market test
127. What is the main problem with using a market test as a forecasting tool?
a.
Difficult to interpret
b.
Expensive
c.
Inaccurate
d.
Unacceptable to consumers
e.
Overused
a.
undifferentiated
b.
exclusive
c.
concentrated
d.
differentiated
e.
selective
a.
It is segmenting the market according to demographic variables.
b.
It is segmenting the market according to product-related variables.
c.
It has chosen a segment that is not identifiable and divisible.
d.
Its market is impossible to reach because of legal constraints.
e.
It is not segmenting the market but is attempting to reach everyone with the product.
a.
behavioristic; time series analysis
b.
psychographic; time series analysis
c.
demographic; regression analysis
d.
income; regression analysis
e.
family life cycle; market tests
a.
Sales force survey
b.
Time series analysis
c.
Correlation method
d.
Market test
e.
Regression analysis
132. Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market
for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the
U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines
for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400
for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 6.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________
variables.
a.
Undifferentiated; benefit expectations
b.
Differentiated; benefit expectations
c.
Differentiated; volume usage
d.
Concentrated; volume usage
e.
Concentrated; geographic location
133. Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market
for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the
U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines
for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400
for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 6.2. Currently, GE uses several sales forecasting methods. One method is to sell the different
locomotive engines to buyers in different countries, and then measuring the purchasing response in each. In this case, GE
Transportation is using the _____ method to forecast future sales.
a.
Delphi
b.
Market test
c.
Regression analysis
d.
Volume usage
e.
Trend analysis
134. Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market
for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the
U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines
for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400
for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the
United States. The segmentation variable then would be
a.
geographic location.
b.
type of organization.
c.
market density.
d.
product use.
e.
customer size.
135. Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market
for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the
U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines
for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400
for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase
some kind of locomotive engine next year. That number represents the
a.
company sales potential.
b.
breakdown approach.
c.
market potential.
d.
buildup approach.
e.
company sales forecast.
136. Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market
for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the
U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines
for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400
for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 6.2. If a GE Transportation researcher analyzes monthly sales data for a four-year time frame, looking
for periodic fluctuations, the researcher is doing a ____ analysis.
a.
trend
b.
seasonal
c.
cycle
d.
random factor
e.
regression
137. A market is a group of people who, as individuals, have needs for products in a product class and have the ability,
willingness, and authority to purchase such products.
a.
True
b.
False
138. Individuals' ability to buy depends on the strength of their buying power.
a.
True
b.
False
139. The four requirements of a market are that the individuals in the market must have a need for the product and the
ability, willingness, and authority to buy it.
a.
True
b.
False
140. A person who has buying power also has the authority to buy.
a.
True
b.
False
141. The five-step process usually used for target market selection includes identifying the appropriate targeting strategy,
determining which segmentation variables to use, developing market segment profiles, evaluating relevant market
segments, and deciding which targeting strategy to use.
a.
True
b.
False
142. There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the
concentrated targeting strategy.
a.
True
b.
False
143. A company sometimes defines a total market as its target market.
a.
True
b.
False
144. One condition for effective segmentation is that at least one segment must have substantial profit potential.
a.
True
b.
False
145. The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop
and maintain a single marketing mix.
a.
True
b.
False
146. An undifferentiated targeting strategy does not target a single market with one marketing mix.
a.
True
b.
False
147. The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single
market segment through one marketing mix.
a.
True
b.
False
148. A differentiated targeting strategy is when the organization targets two or more markets by developing a single
marketing mix.
a.
True
b.
False
149. Only one variable can be used to segment a market.
a.
True
b.
False
150. Segmentation variables are characteristics of individuals, groups, or organizations in a total market.
a.
True
b.
False
151. A segmentation variable is used to group smaller markets into one larger market.
a.
True
b.
False
152. Demographic characteristics are commonly used to segment a market because they are closely related to consumers'
product needs and purchasing behavior.
a.
True
b.
False
153. Family life cycle is a psychological dimension used for segmenting markets.
a.
True
b.
False
154. The term market density refers to the number of potential customers per unit of land area, such as per square mile.
a.
True
b.
False
155. One problem with using psychographic variables for segmentation purposes is that they are difficult to measure
accurately.
a.
True
b.
False
156. Motives can be used to segment markets.
a.
True
b.
False
157. Lifestyle is a product-related variable.
a.
True
b.
False
