Deck 6: Measuring Market Opportunities: Forecasting and Market Knowledge

Question 1

Early majority includes people who adopt a new product because they are forced to do so.

Answer 1

False

Question 2

Statistical methods use past history and techniques such as multiple regression and time series analysis to forecast the future.

Answer 2

True

Question 3

Observation is extremely helpful to prepare evidence based forecasts for new-to-the-world products.

Answer 3

False

Question 4

Under the bottom-up approach,a central person or persons take the responsibility for forecasting and preparing an overall forecast.

Question 5

The diffusion process is faster when there is strong competition and competitors have favorable reputations.

Question 6

Performing live test markets is highly expensive.

Question 7

If plotted on a cumulative basis,the percentage of people adopting a new product over time resembles an inverted U curve.

Question 8

A major drawback of the bottom-up approach for preparing a sales forecast is that it does not facilitate "what if" planning.

Question 9

Statistical and observational methods,where adequate data or settings are available in which to apply them,are superior to survey methods of forecasting.

Question 10

Salespeople can be asked how much they are likely to sell when completing a survey of salesforce opinion.

Question 11

The credibility and accuracy of forecasts of sales and market potential can be achieved by making explicit the assumptions on which the forecast is based.

Question 12

A better understanding of market and competitive conditions and of what buyers in a given market want and need is referred to as market knowledge.

Question 13

Among members of different adopter groups,laggards participate less in community matters than members of the other groups and stubbornly resist change.

Question 14

The diffusion theory is rarely useful in practice since it is not effective in estimating how quickly an innovation is likely to move through the diffusion process.

Question 15

Albert buys iPhone4 immediately after the product was introduced in the market.This shows that Albert belongs to early majority.

Question 16

The speed of the adoption process is independent of the risk involved.

Question 17

A computer manufacturer can manufacture only 200 computers a day.This is an example of a forecast.

Question 18

When Creamy Layer Inc.planned to introduce a new ice cream flavor,its senior executives looked at the sales history of earlier introductions to forecast the sales for the newest flavor.This is an example of an analogy approach for new product forecasting.

Question 19

Experimental test markets cannot be performed under controlled experimental conditions.

Question 20

Each part of the firm prepares its own sales forecast under the top-down approach.

Question 21

Calculating customer lifetime value does not require historical data.

Question 22

Customer lifetime value refers to the margins that a customer generates over a lifetime less the cost of serving the customer.

Question 23

_____ theory seeks to explain the adoption of a ground-breaking product or service over time among a group of potential buyers.

A)Diffusion of innovation
B)Qualitative product
C)Stakeholder
D)Controlled experimentation

Question 24

Observation-based forecasting is attractive because it is:

A)easier to perform than most other forecasting techniques.
B)based on what people actually do.
C)based on historical performance of organizations.
D)best suited to predict the demand for new-to-the-world products.

Question 25

Which of the following is a key disadvantage of conducting market tests?

A)They are least effective in determining the real market demand.
B)Success of market tests is highly dependent on judgments.
C)Conducting market tests is an expensive process.
D)They cannot be performed under controlled experimental conditions.

Question 26

Under the _____ approach,a central person or persons take the responsibility for forecasting and preparing an overall forecast,perhaps using aggregate economic data,current sales trends,or other methods we describe shortly.

A)horizontal
B)bottom-up
C)lateral
D)top-down

Question 27

The principal benefit of qualitative research lies in its measurement of a population's attitudes toward or likely response to products or marketing programs.

Question 28

Which of the following forecasting tools generally assumes that the future will look very much like the past?

A)Observation-based forecasting
B)Survey
C)Regression analysis
D)Focus group discussion

Question 29

The purpose of CRM is to develop a unified and cohesive view of the customer from every touch point within the company to increase profitability and shareholder value.

Question 30

The advantage of surveys conducted by fax,e-mail,or over the Internet is that the researcher knows who actually replied to the survey.

Question 31

Accounting systems regularly track such aspects as what is selling,how fast,in which locations,and to which customers.

Question 32

Primary data are data collected from individual research subjects using observation,survey interviews etc.

Question 33

Big Bite is an American restaurant chain that sells sandwiches and burgers.The company decides to introduce a new sandwich in some of their outlets to test its potential.Identify the forecast tool that Big Bite is using in this case.

A)Market test
B)Survey
C)Analogy
D)Focus group

Question 34

Flora Inc.is launching a new brand of perfume.The firm's senior executives looked at the sales history of earlier offerings to forecast the sales for the new perfume brand.Identify the forecasting tool that the company is using.

A)Judgment
B)Analogy
C)Survey
D)Market test

Question 35

Under the _____ approach,each part of the firm prepares its own sales forecast and the parts are aggregated to create the forecast for the firm as a whole.

A)top-down
B)bottom-up
C)lateral
D)horizontal

Question 36

Identifying the managerial problem and establishing research objectives is the first step in a marketing research process.

Question 37

Competitive intelligence is a systematic and ethical approach for gathering and analyzing information about competitors' activities and related business trends.

Question 38

The commonly used market knowledge systems on which companies rely to keep pace with daily developments include internal records regarding marketing performance,marketing databases,competitive intelligence systems,and systems to organize client contact.

Question 39

Which of the following is a major limitation of a survey?

A)A survey assumes that future will look very much like the past.
B)What people say in a survey is not always what they do.
C)A survey is highly dependent on secondary information.
D)It is not an effective tool to collect information from experts.

Question 40

Frieda owns a retail showroom for watches.She uses her intuition to forecast the demand that her shop will have for different brands and varieties.Identify the forecasting tool that Frieda is using.

A)Focus group
B)Analogy
C)Observation
D)Judgment

Question 41

Early adopters:

A)display less leadership than late adopters.
B)are more venturesome than innovators.
C)are often opinion leaders.
D)do not participate in community organizations.

Question 42

A customer center executive can handle only 30 customers in a day.This is an example of a(n)_____.

A)production forecast
B)sales forecast
C)capacity constraint
D)awareness constraint

Question 43

Greater confidence can be placed in quantitative studies because of:

A)their larger sample size.
B)the type of the people sampled.
C)the involvement of focus groups.
D)their independence of statistical methods.

Question 44

_____ is a systematic and ethical approach for gathering and analyzing information about competitors' activities and related business trends.

A)Competitor collaboration
B)Competitor management
C)Joint venturing
D)Competitive intelligence

Question 45

Susan and Kelly were excited that their favorite brand,Street Wear,was going to launch its new line of denims in a few weeks.They rush to the nearest store and purchase the denims immediately after the product launch.Susan and Kelly are:

A)late majority buyers.
B)early adopters.
C)innovators.
D)early majority buyers.

Question 46

Customer lifetime value refers to:

A)the revenue that a customer generates over a lifetime that maximizes short-term sales.
B)the revenue that a customer generates over a lifetime through purchasing long-term products.
C)the weighted average cost of capital,after tax,including the cost of serving a customer.
D)the margins that a customer generates over a lifetime less the cost of serving the customer.

Question 47

_____ refer to individuals who adopt a new product because they are forced to do so for either economic or social reasons.

A)Late majority
B)Innovators
C)Early adopters
D)Early majority

Question 48

_____ participate less in community matters than members of the other groups and stubbornly resist change.

A)Innovators
B)Inventors
C)Early adopters
D)Laggards

Question 49

Internal record systems,marketing databases,competitive intelligence systems and client contact systems are examples of _____ systems.

A)market knowledge
B)surveying
C)forecasting
D)transactional

Question 50

Secondary data refers to data:

A)collected from individuals.
B)that already exists.
C)collected from experts.
D)obtained through experimentation.

Question 51

_____ systems track what is selling,how fast,in which locations,and to which customers.

A)Internal record
B)Accounting
C)Advertising
D)Competitive intelligence

Question 52

Which of the following is an example of primary data?

A)Annual data obtained from government data sources
B)Data obtained from a marketing survey
C)Huge data repositories in the Internet
D)Research data obtained from historical business press

Question 53

Which of the following information captured by CRM databases is used mainly to facilitate market segmentation and target marketing?

A)Transaction details
B)Customer responses
C)Customer demographics
D)Instances of customer contact

Question 54

A start-up company wants to determine who their key competitors are.In the marketing research process,this is termed as a _____.

A)research objective
B)data design
C)data structure
D)research design

Question 55

Which of the following is the final step in the marketing research process?

A)Analyzing the data collected through research
B)Identifying managerial problems
C)Reporting results to the decision makers
D)Collecting the necessary data through research

Question 56

FDB Inc.is a manufacturer of electronic home appliances.The firm designs a new model of angular washing machine designed for enhanced cleaning.In-order to increase the usability of the proposed machine,the firm asks ten potential customers,who have learned about the machine,to critically examine and discuss the advantages and disadvantages of the product.This is an example of a(n):

A)survey.
B)focus group.
C)questionnaire.
D)interview.

Question 57

Which of the following is a common qualitative research technique?

A)Regression analysis
B)Focus group
C)Survey
D)Time series analysis

Question 58

A drawback of qualitative research is that:

A)it is typically not accurate and the information is of little benefit.
B)the conclusions drawn are usually shallow.
C)its outcomes can only be used for statistical purposes.
D)the small samples may not fairly represent the larger population.

Question 59

Which of the following is the first step in the marketing research process?

A)Identifying managerial problem and establishing research objectives
B)Determining the type of study and data collection approach
C)Designing the research and determining the sample size
D)Identifying data sources,types of data,and research approaches

Question 60

Databases created for CRM purposes typically capture information about all of the following for each customer EXCEPT:

A)transactions.
B)instances of customer contact.
C)customer demographics.
D)competitive responses.

Question 61

Which of the following methods of contacting research participants has the highest response rate?

A)Telephone
B)Mail
C)Email
D)Face-to-face

Question 62

A(n)_____ scale connects two bipolar words of phrases.

A)semantic differential
B)likert
C)importance
D)quality rating

Question 63

Mention the factors that determine the speed of the adoption process of an innovative product or service.

Question 64

A(n)_____ is a tool that enables quantitative researchers to measure the subjects' responses on quantitative scales.

A)time series
B)focus group
C)questionnaire
D)interview

Question 65

A restaurant conducts customer surveys to determine customer satisfaction.In one of the surveys,they use questions that rate dishes on a scale from "brilliant" to "bad." This is an example of _____ scale.

A)quality rating
B)importance
C)likert
D)semantic differential

Question 66

Compare and contrast qualitative and quantitative data and research approaches.

Question 67

A major bank is considering installing ATMs at all locations of a grocery store chain.What evidence-based forecasting tools would be appropriate to use and how?

Question 68

The idea behind random sampling is that:

A)every person in the population has an equal chance of being selected.
B)research should have less than 0.1 percent margin of error.
C)confidence a research should be more than 99 percent.
D)sampling should be performed with a practical perspective in minD.

Question 69

What are some critical questions that managers setting up competitive intelligence systems should ask?

Question 70

Distinguish between the top-down approach and bottom-up approach for preparing a sales forecast.

Question 71

Margin of error can be reduced by:

A)reducing the confidence level.
B)using qualitative methods.
C)using focus group studies.
D)increasing the sample size.

Question 72

_____ are studies in which the researcher manipulates one or more variables,either within the context of a survey or in a laboratory or field setting,in order to measure the effect of the manipulated variable on the consumer's response.

A)Experiments
B)Observations
C)Surveys
D)Market tests

Question 73

Mention the steps required for building or accessing marketing databases for CRM purposes.

Question 74

Explain the two important keys to improve the credibility and accuracy of a set of forecasts of sales and market potential.

Question 75

Which of the following approaches is best suited to obtain deep insights into consumer behavior?

A)Objective
B)Analytic
C)Qualitative
D)Quantitative

Question 76

_____ scale uses statements with which the respondent shows the amount of agreement/disagreement.

A)Semantic differential
B)Likert
C)Quality rating
D)Importance

Question 77

Name each step of the marketing process and explain what could go wrong at each step.

Question 78

Describe the five categories of adopters.

Question 79

What type of research is best suited to measure a population's attitudes and likely responses to products or marketing programs?

A)Interview-based
B)Individual
C)Qualitative
D)Quantitative

Question 80

Explain some of the potential biases in forecasting?