Question 1

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 historical data patterns to predict future values, which are more likely to remain consistent over shorter periods.

Question 2

Estimating demand within market segments is of no value to marketing management.​

Accepted Answer

Estimating demand within market segments is valuable to marketing management as it helps in understanding customer needs, optimizing resource allocation, and developing targeted marketing strategies.

Question 3

Which of the following statements concerning business market segmentation is(are) false?

Accepted Answer

Business marketers often face more constraints and complexities in changing segmentation strategies compared to consumer goods marketers due to factors like longer sales cycles and established relationships.

Question 4

The business market can be segmented on several bases, broadly classified into two major categories:

Accepted Answer

Business market segmentation is often categorized into macro-segmentation, which looks at broad characteristics like industry and company size, and micro-segmentation, which focuses on more specific factors like decision-making processes and purchasing criteria.

Question 5

Concerning segmentation criteria, _____ refers to the degree to which information on the particular buyer characteristic exists or can be obtained.

Accepted Answer

Measurability refers to the degree to which information on the particular buyer characteristic exists or can be obtained.

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; two variables may be correlated due to coincidence or a third factor influencing both.

Question 7

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

Accepted Answer

Time series techniques assume that past patterns in data will continue into the future, making them less suitable when future behavior is expected to differ significantly from past trends.

Question 8

Because the Delphi technique is often used for new products or when a product concept is unique, it is only applied to short-range forecasting.

Accepted Answer

The Delphi technique can be used for both short-range and long-range forecasting, especially when dealing with new or unique product concepts, as it relies on expert opinions to predict future events.

Question 9

Recent research on forecasting techniques indicates that improvements in forecasting accuracy can be achieved by combining the results of several forecasting methods.

Accepted Answer

Combining multiple forecasting methods, known as ensemble forecasting, often leads to improved accuracy because it leverages the strengths and mitigates the weaknesses of individual methods.

Question 10

Market segmentation is:

Accepted Answer

Market segmentation is a useful tool for both business and consumer goods marketers as it helps in identifying and targeting specific groups of consumers or businesses with tailored marketing strategies.

Question 11

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

Accepted Answer

Qualitative sales forecasting techniques rely on subjective judgment and opinions rather than systematic analysis of cause and effect relationships.

Question 12

Microsegmentation focuses within macro segments.​

Accepted Answer

Microsegmentation involves dividing macro segments into smaller, more specific groups to target them more effectively.

Question 13

Regression methods of forecasting require considerable historical data to be valid and reliable.

Accepted Answer

Regression methods rely on historical data to identify patterns and relationships between variables, which are then used to make predictions. The more historical data available, the more accurate and reliable the model can be.

Question 14

​In segmenting, customers may be categorized into tiers based on estimates of the future.

Accepted Answer

Segmenting customers into tiers based on future estimates involves predicting their potential value or behavior, which helps in tailoring marketing strategies.

Question 15

In time series analysis, the seasonal component represents regular, recurring movements within the year.

Accepted Answer

The seasonal component in time series analysis captures patterns that repeat at regular intervals within a year, such as monthly or quarterly fluctuations.

Question 16

The primary advantage of the Executive Judgement method is that systematically analyzes cause-and-effect relationships.

Accepted Answer

The primary advantage of the Executive Judgement method is that it relies on the expertise and intuition of experienced executives, not on systematic analysis of cause-and-effect relationships.

Question 17

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

Accepted Answer

The cycle component in a time series refers to fluctuations around the trend line that occur over periods longer than a year, often due to economic or business cycles, not the long-term general movement in one direction.

Question 18

Which of the following statements concerning business market segmentation is(are) true?

Accepted Answer

The answer of Which of the following statements concerning business...

Question 19

The sales force composite approach to forecasting is a quantitative forecasting method because it uses past sales data to predict future sales potential.

Accepted Answer

The sales force composite approach is a qualitative forecasting method as it relies on the subjective opinions and estimates of the sales team rather than quantitative data analysis.

Question 20

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

Accepted Answer

Regression models can analyze historical data to identify trends and relationships, helping firms forecast future demand for their products.

Quiz 4: Segmenting the Business Market and Estimating Segment Demand