Question 1

The North American Industry Classification System (NAICS)is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America. ​

Accepted Answer

The North American Industry Classification System (NAICS) was indeed developed jointly by the United States, Canada, and Mexico to provide new comparability in statistics about business activity across North America.

Question 2

To access the timeliest information, it is important to gather ____ on an industry. ​

Accepted Answer

Primary data is the most timely information as it is collected directly from the source, ensuring up-to-date and relevant data for industry analysis.

Question 3

The market research process consists of seven steps. ​

Accepted Answer

The market research process typically consists of six steps: defining the problem and research objectives, developing the research plan, collecting the data, analyzing the data, presenting the findings, and making the decision.

Question 4

Entrepreneurs identify their primary customers by recognizing a need, or pain, in the market.

Accepted Answer

Entrepreneurs often start by identifying a need or a problem faced by potential customers, which they then aim to solve with their products or services, thereby identifying their primary customer base.

Question 5

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves. ​

Accepted Answer

Porter's Five Forces framework is designed to analyze the competitive forces within an industry, helping to identify its strengths and weaknesses in relation to competition and market dynamics.

Question 6

The industry in which a new venture will operate is the business's ____. ​

Accepted Answer

The industry in which a new venture will operate constitutes its external environment, encompassing factors and conditions outside the business that affect its performance, such as competition, market trends, and regulatory issues.

Question 7

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry. ​

Accepted Answer

Industries are dynamic and constantly changing due to factors like technological advancements, consumer preferences, and regulatory changes, making it challenging for entrepreneurs to fully understand and keep up with industry trends.

Question 8

For every industry, the life cycle stages occur at different times and vary in duration.

Accepted Answer

Different industries evolve at varying paces and face unique challenges and opportunities, leading to differences in the timing and duration of their life cycle stages (introduction, growth, maturity, and decline).

Question 9

Radical change occurs in industries when an innovation results in the obsolescence of previous technology and drives old-line companies out of business. ​

Accepted Answer

This phenomenon is known as "disruptive innovation," where a new technology or method significantly changes the way industries operate, often making older technologies or practices obsolete and leading to the decline or failure of companies that cannot adapt.

Question 10

The most important data that entrepreneurs can collect on potential customers are primary data derived from observation, online or in-person surveys, phone surveys, interviews, and informal focus groups. ​

Accepted Answer

Primary data collection methods such as observation, online or in-person surveys, phone surveys, interviews, and informal focus groups are crucial for entrepreneurs because they provide direct insights into the preferences, behaviors, and needs of potential customers, allowing for more accurate and tailored business strategies.

Question 11

The government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions. ​

Accepted Answer

Governments can regulate industries by implementing licensing requirements, controlling access to essential raw materials through laws or taxation, and enforcing zoning restrictions to limit where businesses can operate, thereby limiting entry into certain markets or industries.

Question 12

As more firms enter an industry, intense ____ occurs. ​

Accepted Answer

The answer of As more firms enter an industry, intense...

Question 13

Which of the following is NOT a question one would ask when researching an industry? ​

Accepted Answer

Questions A, B, C, and E are all directly related to understanding the current state and future prospects of an industry, which are typical inquiries during industry research. Question D, "How did the industry develop?" is more focused on the historical development of the industry rather than its current state or future prospects, making it less relevant to the primary goals of industry research.

Question 14

There are seven stages in the industry life cycle. ​

Accepted Answer

There are typically five stages in the industry life cycle: development, growth, shakeout, maturity, and decline.

Question 15

____ change is found in industries where resources turn over frequently and must continually be replaced. ​

Accepted Answer

Creative change is found in industries where resources turn over frequently and must continually be replaced, as it involves innovation and the constant renewal of resources.

Question 16

A/An ____ is a grouping of competitors that an entrepreneur targets. ​

Accepted Answer

A market is a grouping of competitors that an entrepreneur targets, as it refers to the broader environment where buyers and sellers interact.

Question 17

Target market research provides some of the least important data needed to decide who the first customer will be. ​

Accepted Answer

Target market research is crucial as it provides essential data to identify and understand the first customer, their needs, preferences, and behaviors, which are fundamental for successful marketing strategies and product development.

Question 18

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces? ​

Accepted Answer

These factors are related to the intensity of competitive rivalry, as they influence how companies compete within an industry.

Question 19

Google, Wikipedia, journals, and trade magazines are examples of ____. ​

Accepted Answer

Google, Wikipedia, journals, and trade magazines are considered secondary sources because they compile, synthesize, or restate information from primary sources rather than providing original research or firsthand evidence.

Question 20

The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms. ​

Accepted Answer

The shakeout period in an industry lifecycle is characterized by intense competition, leading to the exit of less efficient firms. This results in a more stable industry with fewer, more efficient firms and typically lower product costs.

Quiz 4: Analyzing the Industry and Market

The North American Industry Classification System (NAICS)is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America. ​

To access the timeliest information, it is important to gather ____ on an industry. ​

The market research process consists of seven steps. ​

Entrepreneurs identify their primary customers by recognizing a need, or pain, in the market.

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves. ​

The industry in which a new venture will operate is the business's ____. ​

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry. ​

For every industry, the life cycle stages occur at different times and vary in duration.

Radical change occurs in industries when an innovation results in the obsolescence of previous technology and drives old-line companies out of business. ​

The most important data that entrepreneurs can collect on potential customers are primary data derived from observation, online or in-person surveys, phone surveys, interviews, and informal focus groups. ​

The government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions. ​

As more firms enter an industry, intense ____ occurs. ​

Which of the following is NOT a question one would ask when researching an industry? ​

There are seven stages in the industry life cycle. ​

____ change is found in industries where resources turn over frequently and must continually be replaced. ​

A/An ____ is a grouping of competitors that an entrepreneur targets. ​

Target market research provides some of the least important data needed to decide who the first customer will be. ​

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces? ​

Google, Wikipedia, journals, and trade magazines are examples of ____. ​

The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms. ​

The North American Industry Classification System (NAICS)is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America.

To access the timeliest information, it is important to gather ____ on an industry.

The market research process consists of seven steps.

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves.

The industry in which a new venture will operate is the business's ____.

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry.

Radical change occurs in industries when an innovation results in the obsolescence of previous technology and drives old-line companies out of business.

The most important data that entrepreneurs can collect on potential customers are primary data derived from observation, online or in-person surveys, phone surveys, interviews, and informal focus groups.

The government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions.

As more firms enter an industry, intense ____ occurs.

Which of the following is NOT a question one would ask when researching an industry?

There are seven stages in the industry life cycle.

____ change is found in industries where resources turn over frequently and must continually be replaced.

A/An ____ is a grouping of competitors that an entrepreneur targets.

Target market research provides some of the least important data needed to decide who the first customer will be.

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces?

Google, Wikipedia, journals, and trade magazines are examples of ____.

The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms.