Question 1

Which of the following is not an indicator of market maturity or decline?&#10;A) Customer disinterest&#10;B) Price Pressure&#10;C) Saturation&#10;D) Predictions for high growth&#10;E) Buyer sophistication and knowledge

Accepted Answer

High growth predictions indicate a market that is still growing or has potential for growth, not necessarily one that is mature or declining. The other options (customer disinterest, price pressure, saturation, buyer sophistication and knowledge) are all indicators of market maturity or decline.

Question 2

user gap is caused when one segment uses more of a product than another segment.

Accepted Answer

User gap refers to the difference between customer expectations for service quality and their perceptions of the actual service received, not the difference in product usage between segments.

Question 3

Avoiding the small market can mean that a firm must later overcome the first-mover advantage of others.

Accepted Answer

If a firm avoids a small market, it may give the opportunity to others to establish themselves as the first-mover in that market. This can make it harder for the firm to compete and gain market share later on.

Question 4

of the most serious risks of high growth markets is the fact that the number of competitors attracted is likely to be high.

Accepted Answer

High growth markets are attractive to many companies, leading to a high number of competitors. This can result in increased competition and pressure on pricing and profitability.

Question 5

Porter's five factor model provides insight into the present and future profitability of an industry.

Accepted Answer

Porter's five factor model analyzes five competitive forces that impact an industry's profitability, including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. By understanding these factors, businesses can make strategic decisions to improve their competitive position and profitability in the industry.

Question 6

goal of market and submarket analysis is to understand the dynamics of the market.

Accepted Answer

The goal of market and submarket analysis is to understand the different factors that drive the market such as consumer behavior, competition, and trends. By gaining insights into these dynamics, businesses can make informed decisions about their marketing strategies, product offerings, and target audience.

Question 7

Ghost potential occurs when competitors get scared from competitive intensity and abandon a market.

Accepted Answer

Ghost potential refers to the perceived, but unrealized, threat of entry into a market by new competitors, which can influence the strategic decisions of existing firms, rather than competitors getting scared and abandoning a market.

Question 8

Niche businesses can be economically unviable when choices are too abundant making marketing costs crippling.

Accepted Answer

The answer of Niche businesses can be economically unviable when...

Question 9

In forecasting market growth, the potential of technologies tend to be undervalued.

Accepted Answer

The answer of In forecasting market growth, the potential of...

Question 10

Which of the following is not a risk of a high growth market?&#10;A) Overcrowding&#10;B) Superior competitive entry&#10;C) Projected high growth&#10;D) Changing KSFs&#10;E) Resource constraints

Accepted Answer

The other options (A, B, D, E) are all potential risks of operating in a high growth market. Overcrowding can lead to increased competition and difficulty standing out, superior competitive entry can put pressure on existing businesses, changing KSFs (Key Success Factors) can make it difficult to keep up with evolving customer needs and expectations, and resource constraints can limit a company's ability to scale and meet demand. However, projected high growth is not a risk in and of itself - it is often the reason why companies pursue high growth markets in the first place.

Question 11

Porter's five factor model involves--the intensity of competition, competition among existing firms, _________, _________, and __________.

Accepted Answer

The answer of Porter's five factor model involves--the intensity of...

Question 12

Wal-Mart has a high level of customer power.

Accepted Answer

The answer of Wal-Mart has a high level of customer...

Question 13

success factors are assets and/or competencies that provide the basis for any competitor to be successful in an industry.

Accepted Answer

The answer of success factors are assets and/or competencies that...

Deck 4: Marketsubmarket Analysis