E-Trip Chapter 4 Test Review

Entrepreneurs must regularly evaluate the actions they take as a result of their market research. It is not enough simply to develop a plan of action.

• True

• False

The value of data mining is the ability of a company to transform individual bits of data into usable information that marketers need to develop successful marketing strategies.

• True

• False

Market research can be time-consuming and expensive, but it is worthwhile when major decisions must be made.

• True

• False

You are thinking of opening an ice cream stand near a local school, so you count the number of children who walk past your chosen location every day after school. You are collecting primary data through observation.

• True

• False

The first step in a competitive analysis is to identify your competitors.

• True

• False

Locating your direct competition is more difficult than finding your indirect competition.

• True

• False

Companies that offer similar or identical products to the same group of target customers are called competitors.

• True

• False

To retain customers, you will need to continually ask them for their opinions about your business and respond to their feedback.

• True

• False

A market segment consists of people with common characteristics.

• True

• False

Spreadsheets and databases are used for collecting and analyzing market research data.

• True

• False