Chapter 5 Terminology Review

What is the 80/20 rule?

• A rule that states 80 percent of the sales come from 20 percent of the customers

• A rule that states 80 percent of the customers come from 20 percent of the sales

• A rule that states 20 percent of the sales come from 80 percent of the customers

• A rule that states 20 percent of the customers come from 80 percent of the sales

What is behavioural segmentation?

• Segmenting a market based on the way customers use a product or behave toward a product

• Segmenting a market based on demographic variables

• Segmenting a market based on psychological characteristics of customers

• Segmenting a market based on where customers live

What is a business opportunity?

• A chance for success provided by the combination of a product idea and a market that is willing and able to buy the product

• A chance for success provided by the combination of a product idea and a market that is unwilling or unable to buy the product

• A chance for success provided by the combination of a product idea and a market that is undecided about buying the product

• A chance for success provided by the combination of a product idea and a market that is already saturated with similar products

What is a census?

• A count of the people in a country made by the government on a regular basis

• A count of the people in a country made by private organizations on a regular basis

• A count of the people in a country made by the government on an irregular basis

• A count of the people in a country made by private organizations on an irregular basis

What is demographic information?

• Statistics that describe the characteristics of a population, such as age or income

• Statistics that describe the characteristics of a product, such as size or color

• Statistics that describe the characteristics of a market, such as competition or demand

• Statistics that describe the characteristics of a business, such as revenue or profit

What is demographic segmentation?

• Segmenting a market based on demographic variables, that is, characteristics of a population

• Segmenting a market based on the way customers use a product or behave toward a product

• Segmenting a market based on psychological characteristics of customers

• Segmenting a market based on where customers live

What is discretionary income?

• Income left after taxes and after the necessities of life have been paid for

• Income left after taxes have been taken out

• Income left after the necessities of life have been paid for

• Income left after taxes and the necessities of life have been paid for

What is disposable income?

• Income a person has available to spend (dispose of) after taxes have been taken out

• Income a person has available to spend (dispose of) before taxes have been taken out

• Income a person has available to spend (dispose of) after the necessities of life have been paid for

• Income a person has available to spend (dispose of) before the necessities of life have been paid for

What is a generation?

• A group of people born during a particular period of history

• A group of people born in the same year

• A group of people born in the same country

• A group of people born with similar characteristics

What is geographic segmentation?

• Segmenting a market based on where customers live

• Segmenting a market based on demographic variables

• Segmenting a market based on psychological characteristics of customers

• Segmenting a market based on the way customers use a product or behave toward a product