Question 1

Defining a market primarily depends on the ________ that customers seek and the ________ that customers consider.&#10;A) benefits; alternatives&#10;B) brands; products&#10;C) markets; benefits&#10;D) products; prices

Accepted Answer

Defining a market is based on the benefits that customers seek and the alternatives that customers consider. This means understanding what benefits customers are looking for when considering a product or service, as well as understanding what other options are available to them in the marketplace. Brands, products, markets, and prices are all important factors to consider when defining a market, but they are secondary to the benefits and alternatives that customers prioritize.

Question 2

Which of the following factors about a competitor is LEAST relevant when using a supply-side approach to market definition?&#10;A) production costs&#10;B) customer insights&#10;C) distribution channels&#10;D) manufacturing processes

Accepted Answer

When using a supply-side approach to market definition, the focus is on the inputs and processes used by competitors to produce and distribute goods or services. Production costs, distribution channels, and manufacturing processes are all relevant factors to consider in this approach. Customer insights, however, are a demand-side factor and therefore are not as relevant in this context.

Question 3

The ________ level of competition is typically viewed as the industry by marketing managers.&#10;A) product type&#10;B) generic competition&#10;C) product category&#10;D) budget competition

Accepted Answer

Marketing managers typically view industry-level competition, which is competition among companies that provide the same product or service category, as the most relevant competition to consider when developing marketing strategies. Product type competition focuses on a specific type of product (e.g. different brands of toothpaste), while generic competition encompasses all alternative products that could satisfy a customer's needs (e.g. toothpaste, mouthwash, or chewing gum). Budget competition refers to competition between companies for available funds for marketing and promotion, which is not relevant when considering the type of competition.

Question 4

A marketer collects data from store cash registers to determine whether two products are substitutes for each other.The marketer measures the sales decline of one product after the price of the second product is reduced.Which of the following is the marketer most likely using to define the market?

A) cross-elasticity data
B) customer insight data
C) brand-switching data
D) managerial judgment data

Accepted Answer

Cross-elasticity data measures the responsiveness of demand for one product to a change in the price of another product. By measuring the sales decline of one product after the price of a second product is reduced, the marketer is able to determine whether the two products are substitutes for each other, and therefore define the market. The other options (B, C, and D) are not directly related to measuring market substitution.

Question 5

Gatorade,Coca-Cola,Red Bull,and Tropicana would most likely be competitors in which level of substitution?&#10;A) product type&#10;B) product variant&#10;C) product category&#10;D) budget competition

Accepted Answer

These brands are all in the same product category of beverages and are competing for consumers' attention in that space.

Question 6

Why is it important to define a market? What are the two most important premises to consider when defining a market?

Accepted Answer

The answer of Why is it important to define a...

Question 7

Analyzing substitute products with similar attributes that customers consider during the buying decision is a method of defining a market using a ________.&#10;A) generic competition method&#10;B) product attribution method&#10;C) demand-side perspective&#10;D) supply-side perspective

Accepted Answer

Analyzing substitute products with similar attributes that customers consider during the buying decision is a demand-side perspective. This helps to define the market and understand customer preferences and needs. The generic competition method looks at all competitors in a market, the product attribution method looks at the features of a specific product, and the supply-side perspective focuses on the production and distribution of goods and services.

Question 8

What is the lowest level of competition?&#10;A) generic competition&#10;B) budget competition&#10;C) product category&#10;D) product variant

Accepted Answer

Product variant competition refers to the competition between different versions or models of the same product. This is the lowest level of competition as it involves very similar products and often comes down to consumer preference or minor differences in features or price. The other options (generic competition, budget competition, and product category competition) involve broader or more significant differences between products and are therefore higher levels of competition.

Question 9

For short-term budgeting purposes,it is best to use a broad market definition rather than one based on product variants.

Accepted Answer

For short-term budgeting, a more detailed approach focusing on specific product variants allows for more accurate and actionable financial planning, addressing immediate market dynamics and competition more effectively.

Question 10

A ________ is an item within a product type that is distinguishable by individual product attributes that serve specific needs.&#10;A) niche&#10;B) sector&#10;C) variant&#10;D) segment

Accepted Answer

A variant refers to a product within a product type that has specific attributes to serve a particular need or preference of the target market. For example, a brand of shampoo can have variants for different hair types such as oily hair, dry hair, or colored hair.

Question 11

Defining a market too narrowly will most likely result in a(n)________.&#10;A) high market share&#10;B) lengthy product life cycle&#10;C) invalid customer assessment&#10;D) excessive number of competitors

Accepted Answer

The answer of Defining a market too narrowly will most...

Question 12

A supply-side perspective for defining a market attempts to identify all competing products that could serve the needs of a specific customer group.

Accepted Answer

The answer of A supply-side perspective for defining a market...

Question 13

A product's market defines all of the following factors EXCEPT ________.&#10;A) competitors&#10;B) market share&#10;C) marketing mix&#10;D) potential substitutes

Accepted Answer

The answer of A product's market defines all of the...

Question 14

Brand-switching data is collected from customers who have indicated a willingness to pay more for a product with specific features.

Accepted Answer

The answer of Brand-switching data is collected from customers who...

Deck 1: Note : Market Definition