Question 1

_____ is a strategy that enables a firm to maximize the results of a given marketing effort by exploiting clearly identified strengths in relation to a submarket which is inadequately satisfied by other suppliers.

Accepted Answer

Segmentation is a strategy that allows a firm to focus on specific submarkets with distinct needs or preferences that are not fully met by competitors, thereby leveraging its strengths to meet these needs more effectively than others.

Question 2

What is a major disadvantage of online surveys?

Accepted Answer

Online surveys rely heavily on individuals having access to the internet and being comfortable with technology. This can result in certain populations, such as elderly or low-income individuals, being underrepresented in the sample.

Question 3

CLV is a statistical estimate whose accuracy depends upon all the following EXCEPT:

Accepted Answer

CLV is a statistical estimate that predicts the future profitability of a customer based on their past transactions. It depends on the relevance of historical data, the proximity of the horizon (i.e., how far into the future the estimate is made), the choice of a discount rate (to account for the time value of money), and the accuracy of anticipated account maintenance rates. However, customer service strategies do not directly affect the accuracy of CLV as they are not directly related to a customer's transactional behavior or profitability.

Question 4

The survey:

Accepted Answer

The answer of The survey:
...

Question 5

Angie,a telemarketer for an insurance firm,calls up Elizabeth,a customer,on the telephone and starts a conversation with Elizabeth by pretending to be conducting a survey,but soon launches into sales talk by trying to induce Elizabeth to buy an insurance policy.This behavior of Angie illustrates:

Accepted Answer

Sugging (Selling Under the Guise of Research) is the practice of telemarketers pretending to conduct research or surveys, only to use the opportunity to make a sales pitch. This is exactly what Angie is doing in the scenario described. Spamming is the unsolicited sending of bulk messages, usually via email. Phishing is the fraudulent attempt to obtain sensitive information, such as usernames, passwords, and credit card details, by disguising oneself as a trustworthy entity. Factoring is a financial transaction in which a company sells its accounts receivable to a third party at a discount. Trolling is the act of posting deliberately provocative or offensive messages online with the intention of eliciting strong reactions from others. None of these terms apply to the behavior of Angie.

Question 6

Viewing customer acquisition/retention as an investment has led to increasing acceptance of the concept of:

Accepted Answer

Viewing customer acquisition/retention as an investment means that companies are recognizing that their customers have lifetime value (CLV), which is the amount of revenue a customer is expected to generate over the entire time they are a customer. This understanding of CLV has led to companies placing a greater importance on retaining their current customers and investing in acquiring new ones.

Question 7

Which of the following costs do NOT form a part of burden in determining customer lifetime value?

Accepted Answer

The purchase cost of the product is not a cost that forms a part of burden in determining customer lifetime value. The other options (training cost, entertainment cost, cost of periodic meetings, and annual Thanksgiving turkey gift baskets) all represent additional costs incurred beyond the purchase price of the product and are included in the calculation of customer lifetime value.

Question 8

Sugging:

Accepted Answer

Sugging is the unethical practice of using marketing research as a guise for selling, where salespeople pretend to conduct research surveys to gain access to potential customers and then use the opportunity to sell their products or services.

Question 9

_____ establishes a common code between the United States,Canada and Mexico.

Accepted Answer

NAICS (North American Industry Classification System) is the common code established between the United States, Canada, and Mexico for classifying business establishments into industries/sectors based on their primary economic activity. It replaced the Standard Industrial Classification (SIC) system previously used in these countries. ISIC (International Standard Industrial Classification) is a similar system used on a global level. NAPCS (North American Product Classification System) is used for products, rather than industries. FSC (Federal Supply Classification) is a classification system used by the U.S. government for supplies and equipment.

Question 10

The ISIC industry classification code was developed by:

Accepted Answer

The ISIC (International Standard Industrial Classification) industry classification code was developed by the United Nations to provide a common framework for statistical analysis and reporting of economic activities across countries and regions. It is widely used by national statistical agencies, international organizations, and businesses to classify industries and related economic data.

Question 11

What is the key drawback of using telephone surveys?

Accepted Answer

The answer of What is the key drawback of using...

Question 12

_____ involves partitioning the general need for a solution to a class of problems into smaller clusters involving distinct markets.

Accepted Answer

Market segmentation involves dividing a larger market into smaller groups with similar needs and characteristics. This allows for more targeted and effective marketing and solutions that are tailored to specific segments. Sugging refers to selling under the guise of research, statistical profiling involves using data to create profiles of individuals or groups, and data warehousing and mining are methods of storing and analyzing large amounts of data.

Question 13

Customer lifetime value:

Accepted Answer

Customer lifetime value is the estimated net present value of the future stream of benefits from a customer, less the costs of servicing the account. This involves considering the income generated from the customer's purchases, the cost of servicing the customer, and the duration of the customer's relationship with the company.

Question 14

The SIC codes:

Accepted Answer

The SIC codes were developed by the U.S. government to collect and disseminate meaningful information on different sectors of the economy. They have been used since the 1930s to classify and compare businesses in the United States. The other options are incorrect:
A) The SIC codes do not establish a common code between the United States, Canada, and Mexico.
B) The SIC codes organize the economy into 10 divisions, not 5.
D) The ISIC is the International Standard Industrial Classification of All Economic Activities and is not the same as the SIC codes.
E) The SIC codes were created to reflect the economy at the time of their development and have not been updated to reflect industries in services and emerging technology fields.

Question 15

NAICS:

Accepted Answer

NAICS (North American Industry Classification System) is designed to include industries in services and emerging technology fields, providing a modern framework for classifying business establishments.

Question 16

Which of the following statements about business and consumer markets is TRUE?

Accepted Answer

Consumer segments can justify the cost of large-scale studies if the resulting insights lead to even small increases in market share, due to the large volume of sales in consumer markets.

Question 17

Online surveys:

Accepted Answer

Online surveys are remarkably fast because they can be conducted and completed quickly with the help of technology.

Answer: D
 Online surveys can be completed anonymously, which can eliminate a recipient's concerns about privacy.

Therefore, the best choices are C and D.

Question 18

What are the two broad purposes of business marketing research?

Accepted Answer

The answer of What are the two broad purposes of...

Question 19

Since spending time at a customer's venue to test concepts and problem solve has value,many business marketers have been stepping up the frequency and complexity of:

Accepted Answer

Spending time at a customer's venue is best achieved through customer visits, which allows for firsthand testing and problem-solving. The other options listed do not necessarily involve physical presence at the customer's venue or allow for the same level of interaction and insight.

Question 20

The _____ codes were developed by the U.S.government to collect and disseminate meaningful information on different sectors of the economy.

Accepted Answer

The answer of The _____ codes were developed by the...

Quiz 5: Market Opportunities: Current and Potential