Question 1

Especially popular with such companies as Procter & Gamble,marketing-mix modeling is used to allocate or reallocate expenditures.

Accepted Answer

Marketing-mix modeling is indeed used by companies like Procter & Gamble to allocate or reallocate marketing expenditures.

Question 2

Marketing researchers should have a healthy skepticism toward glib assumptions made by managers about how a market works.

Accepted Answer

Marketing researchers should approach their work with objectivity and avoid accepting assumptions made by managers without conducting thorough research and analysis to confirm or refute them. It is important to be skeptical and challenge assumptions in order to arrive at accurate and reliable findings that guide strategic decision-making.

Question 3

All the buyers who are able and willing to buy a company's products or services are called the overall market share.

Accepted Answer

The overall market share refers to the percentage of the total sales in a particular industry that a company controls. The buyers who are able and willing to buy a company's products or services are a part of the company's target market or customer base.

Question 4

A target market is the set of consumers who profess a sufficient level of interest in a market offer.

Accepted Answer

The answer of A target market is the set of...

Question 5

The distance between the market minimum and the market potential shows the overall marketing sensitivity of demand.

Accepted Answer

The distance between the market minimum and the market potential reflects the potential market growth and indicates the overall marketing sensitivity of demand. A larger distance suggests a larger potential market and greater marketing opportunities for businesses.

Question 6

With respect to past-sales analysis,econometric analysis consists of projecting the next period's sales by combining an average of past sales and the most recent sales,giving more weight to the latter.

Accepted Answer

Econometric analysis involves using statistical methods to model the relationship between a dependent variable, like sales, and one or more independent variables, such as price or advertising spend, rather than simply averaging past sales with more weight on recent sales.

Question 7

Few companies use sales-force estimates without making some adjustments because of both deliberate and inadvertent estimation error on the part of salespeople.

Accepted Answer

Sales-force estimates are often adjusted by companies due to potential errors made by salespeople, both intentionally and unintentionally.

Question 8

Estimating area market potential,as a subset of total market potential,facilitates effective marketing budget allocation.

Accepted Answer

Estimating area market potential helps in identifying specific geographic regions with higher market demand and allocating the marketing budget accordingly to maximize the return on investment. It allows companies to focus their resources on areas with the most potential for growth and profitability.

Question 9

A stakeholder-performance scorecard tracks the satisfaction with the company and its products and services among such entities as suppliers,banks,and stockholders.

Accepted Answer

A stakeholder-performance scorecard is used to track the satisfaction of various stakeholders including suppliers, banks, and stockholders, among others.

Question 10

The production department is responsible for preparing sales forecasts because they have the most data about production schedules and the ability to meet orders.

Accepted Answer

The answer of The production department is responsible for preparing...

Question 11

A common way to estimate total market potential is to multiply the potential number of buyers by the average quantity each purchases,times the price.

Accepted Answer

This is a common formula used to estimate total market potential.

Question 12

The multiple-factor index method for assessing area market potential is most commonly used by those interested in consumer markets.

Accepted Answer

The multiple-factor index method is commonly used by marketers and businesses interested in analyzing consumer markets and identifying areas with high market potential.

Question 13

When buyers don't plan their purchases carefully,or experts are unavailable or unreliable,exponential smoothing can help forecast new-product sales.

Accepted Answer

The answer of When buyers don't plan their purchases carefully,or...

Question 14

A set of measures that helps firms to quantify,compare,and interpret their marketing performance is called marketing metrics.

Accepted Answer

Marketing metrics are indeed a set of measures used by firms to quantify, compare, and interpret their marketing performance.

Question 15

Marketing-mix modeling is used to estimate causal relationships and measure how marketing activity affects outcomes.

Accepted Answer

Marketing-mix modeling is a statistical analysis used to measure the impact of marketing activity on sales or other outcomes. By estimating causal relationships between marketing variables (such as advertising spend, price promotions, and distribution) and outcomes (such as sales or market share), marketing-mix modeling can help companies optimize their marketing strategies and allocate resources effectively.

Question 16

One of the characteristics of good marketing research is that it uses multiple methods.

Accepted Answer

Good marketing research uses multiple methods to gather data, which helps to ensure the validity and reliability of the findings. Using multiple methods can also provide a more comprehensive understanding of the issue being studied.

Question 17

Companies interested in market potential have a special interest in the product-penetration percentage,which is the percentage of ownership or use of a product or service in a population.

Accepted Answer

The statement is true. Companies interested in market potential often consider the product-penetration percentage as it provides insight into the current and potential demand for their product or service in a given population.

Question 18

A low market share-penetration index indicates substantial growth potential for all the firms.

Accepted Answer

A low market share-penetration index means that a small percentage of potential customers are currently using the product, indicating that there is room for growth for all companies in the market.

Question 19

Market demand is not a fixed number,but rather a function of the stated conditions.

Accepted Answer

Market demand depends on various factors such as price, consumer preferences, income, availability of substitutes, etc. Therefore, it is not a fixed number but a function that can change according to the stated conditions.

Question 20

A sales quota is a conservative estimate of the expected volume of sales,primarily for making current purchasing,production,and cash flow decisions.

Accepted Answer

A sales quota is not a conservative estimate, but rather a specific target or goal set for sales representatives to achieve. It is used as a motivational tool and to track performance.

Quiz 4: Conducting Marketing Research and Forecasting Demand