Question 1

The Delphi method constitutes a highly sophisticated quantitative approach to sales forecasting.

Accepted Answer

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Question 2

The cost of research is greater at the macrolevel of segmentation than at the microlevel.

Accepted Answer

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Question 3

Time series methods are well suited to short-range forecasting because the assumption that the future will be like the past is more reasonable over the short run than over the long run.

Accepted Answer

Time series methods rely on patterns and trends in historical data to make future predictions. Over a short period of time, these patterns and trends are more likely to continue, making short-range forecasting more accurate. However, as the time horizon expands, external factors and changes in patterns become more difficult to predict accurately, and other methods such as causal forecasting may be more appropriate.

Question 4

Qualitative sales forecasting techniques provide a systematic analysis of cause and effect relationships.

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Question 5

A well-defined segmentation plan will fail without careful attention to implementing the plan.

Accepted Answer

The segmentation plan may be well-defined, but if it is not properly implemented, it will not produce the desired results. Implementation includes actions such as communicating the plan to relevant stakeholders, selecting appropriate targeting criteria, and executing marketing tactics that appeal to the targeted segments.

Question 6

The fact that sales and some causal variables are correlated implies that the causal variable "caused" sales.

Accepted Answer

Correlation does not imply causation. Just because two variables are correlated, it does not necessarily mean that one caused the other. Other factors could be involved that influence both variables or the correlation could be a coincidence.

Question 7

By directing its resources to all of its customers evenly,the business marketer is less vulnerable to focused competitors that may seek to "cherry pick" the firm's most valuable customers.

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Question 8

If the requirements of segmentation are met,it should provide the business marketer with valuable guidelines for allocating marketing resources.

Accepted Answer

Segmentation helps in identifying the most profitable customer segments and helps in allocating resources effectively, which can lead to higher returns for the business.

Question 9

Regression models are useful to industrial firms projecting final consumer demand for items of which their products become a part.

Accepted Answer

Yes, regression models can be used to forecast final consumer demand, and this can help industrial firms to make better production and inventory decisions.

Question 10

Industrial firms lack the flexibility of their consumer-goods counterparts in moving into and out of market segments.

Accepted Answer

Industrial firms often have high fixed costs and specialized equipment that limit their ability to quickly and easily switch between market segments. Consumer-goods firms, on the other hand, tend to have more flexible production processes and can more easily adapt to changing market conditions.

Question 11

In evaluating alternative bases for segmentation,the marketer is attempting to identify good predictors of differences in buyer behavior.

Accepted Answer

Evaluating alternative bases for segmentation helps the marketer identify good predictors of differences in buyer behavior, such as demographics, psychographics, behavior patterns, and geographic location. By understanding these predictors, marketers can tailor their marketing strategies to better suit their target audience's needs and preferences.

Question 12

Value-in-use constitutes a microlevel base of segmentation.

Accepted Answer

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Question 13

The North American Industrial Classification System (NAICS)is an especially valuable source when segmenting the market on the basis of end use.

Accepted Answer

NAICS provides a standardized system for classifying industries and can be used to segment the market on the basis of end use. This allows businesses to identify and target specific industries or sectors that use their products or services.

Question 14

Time series techniques are especially appropriate when management believes that sales will behave differently in the future than they have in the past.

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Question 15

Because a specific industrial good is often used in different ways,the marketer can divide the market using the NAICS.

Accepted Answer

The North American Industry Classification System (NAICS) is a system that categorizes industries and businesses based on their primary activities. This can help marketers to identify and target specific segments of the market based on the industry or industries in which their products or services are most commonly used.

Question 16

The cycle component in a time series indicates the long term general movement in the data in one direction.

Accepted Answer

The trend component in a time series indicates the long term general movement in the data in one direction. The cycle component represents the periodic fluctuations in the data.

Question 17

Customers that actively seek business marketing firms that can help them create new value to gain a competitive edge in their markets can be segmented using value-based strategies.

Accepted Answer

Value-based segmentation involves categorizing customers based on their willingness to pay extra for added value, and their demand for specific value-adding features. Customers actively seeking business marketing firms to gain a competitive edge are likely focused on creating new value and can be segmented accordingly.

Question 18

Buying organizations can be segmented based on the stages of the procurement process,such as new-task or straight rebuy.

Accepted Answer

This is true. Buying organizations can be segmented based on the stages of the procurement process, such as new-task or straight rebuy.

Question 19

The personal characteristics of decision-makers in buying centers,such as their decision style and confidence,are examples of macrolevel bases of segmentation.

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Question 20

In order to use macrolevel bases of segmentation,the business marketer must move beyond secondary sources of information by soliciting input from the sales force or by conducting a special market segmentation study.

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Quiz 4: Segmenting the Business Market and Estimating Segment Demand