Question 1

A cost advantage competitive strategy involves a significantly lower cost compared to the competition which permits reasonable profit margins while offering lower prices.

Accepted Answer

A cost advantage competitive strategy indeed focuses on achieving lower operational costs than competitors, allowing a company to offer products or services at lower prices while still maintaining healthy profit margins. This strategy can make a company more attractive to price-sensitive customers and increase its market share.

Question 2

The first plan you will write for your new venture is the business plan, once that is complete, you will then conduct a feasibility study.

Accepted Answer

A feasibility study is typically conducted before writing a business plan to determine if the business idea is viable and worth pursuing, guiding the details and strategies in the business plan.

Question 3

The bottom-up approach involves aggregating information from the customer level to the total market level.

Accepted Answer

The bottom-up approach starts with individual customer or product level data and aggregates it to understand the total market demand or behavior, focusing on specific details before looking at the broader picture.

Question 4

The market research process involves two basic steps: gather information and then interpret it.

Accepted Answer

The market research process involves several steps beyond just gathering and interpreting information, including defining the problem, designing the research plan, collecting data, analyzing the data, and presenting the findings.

Question 5

In the model for small business growth, product and market research in the inception Chapter is:

Accepted Answer

The answer of In the model for small business growth,...

Question 6

Discuss the relationship between the level of risk of a new venture and the expected return for that risk for new inventions, moderately or slightly innovative ideas, and copycat products?

Accepted Answer

The answer of Discuss the relationship between the level of...

Question 7

In the model for small business growth, the key issue in the survival Chapter is:

Accepted Answer

The answer of In the model for small business growth,...

Question 8

Free product samples and contests are activities related to:

Accepted Answer

Free product samples and contests are types of sales promotion activities designed to boost immediate consumer interest and sales.

Question 9

Secondary data is far less expensive for a firm to collect than is primary data.

Accepted Answer

Secondary data is typically less expensive to collect because it has already been gathered and published by other sources, saving the firm the cost and effort of conducting original research.

Question 10

In the model for small business growth, the key issue in the maturity Chapter is:

Accepted Answer

In the maturity stage of a small business growth model, the primary focus shifts towards finding growth opportunities to sustain and enhance the business's position in the market. This is because, by this stage, the business has already established a customer base and market presence, and must now look for new ways to grow and stay competitive.

Question 11

When it comes to the "one-store test" to test your product, you are safe to assume that the single location will be representative of the marketplace in general.

Accepted Answer

The "one-store test" might not accurately represent the entire marketplace due to variations in demographics, preferences, and competition across different locations.

Question 12

In the model for small business growth, product and market research in the survival Chapter is:

Accepted Answer

In the survival stage of a small business, the focus is often on establishing a stable customer base and achieving a sustainable cash flow, leaving limited resources for extensive product and market research. Thus, research at this stage is typically minimal.

Question 13

Survey research is the most widely used method of primary data collection.

Accepted Answer

Survey research is indeed the most widely used method for primary data collection due to its versatility, efficiency, and ability to gather data from a large number of respondents relatively quickly and cost-effectively.

Question 14

A personal sales person's primary function is informing customers about the nature of the offering and the value and benefits of using the product or service.

Accepted Answer

The answer of A personal sales person's primary function is...

Question 15

A discount expressed as "2/10 net 30" means the customer can take a 2 percent cash discount for making payment within 10 days. Otherwise, the customer must increase the invoice total by 2 percent and pay that amount in 30 days.

Accepted Answer

"2/10 net 30" means the customer can take a 2 percent discount if they pay within 10 days; otherwise, the full amount is due in 30 days without any increase.

Question 16

Examples of psychographic factors include the desire for status, the pursuit of fun, and the desire to be environmentally conscious.

Accepted Answer

Psychographic factors are psychological attributes of consumers, including their desires, values, and lifestyles, such as the desire for status, pursuit of fun, and environmental consciousness.

Question 17

Merchant wholesalers are further classified as full-service, limited-function, drop shippers, truck wholesalers, and rack jobbers.

Accepted Answer

Merchant wholesalers are categorized based on the range of services they offer, including full-service wholesalers who provide a wide array of services, limited-function wholesalers who offer fewer services, drop shippers who take orders and ship directly from suppliers to customers, truck wholesalers or truck jobbers who sell and deliver directly from their vehicles, and rack jobbers who specialize in non-food items and typically manage inventory and merchandising for retail stores.

Question 18

Which of the following promotional activities offers the greatest capacity to interchange with the audience?

Accepted Answer

Personal Selling offers the greatest capacity to interchange with the audience because it involves direct, face-to-face interaction between the salesperson and the customer, allowing for immediate feedback, customization of the sales message, and adjustment of strategies based on the customer's responses.

Question 19

Describe market segmentation based on geographic location.

Accepted Answer

The answer of Describe market segmentation based on geographic location....

Question 20

In the model for small business growth, the key issue in the inception Chapter is:

Accepted Answer

In the inception phase of a small business, the key issue is obtaining customers. This initial stage focuses on establishing a customer base and generating revenue, which is crucial for the business's survival and future growth.

Quiz 3: Market Feasibility Study