Ch 4 - Identify & Meet Market Needs

Which of the following is not a reason that entrepreneurs need to know who their customers are?

• customers are a business’s most important asset

• companies cannot remain in business without customers

• customers have no influence on products or services offered

• knowing who your customers are can help you estimate demand for products and services

To identify your target market, you need to know

• who your customers are

• how old your customers are

• where your potential customers currently shop

• all of the above

Data that help you determine where your potential customers live and how far they will travel to do business with you are

• demographics

• psychographics

• use-based data

• geographic data

Which of the following is not an example of primary data?

• a survey

• statistics from a government website

• observation of customer behavior

• all of the above are examples of primary data

Sources of secondary data include all of the following except

• customer feedback from a survey

• publications issued by government and community organizations

• trade magazines and websites

• newspaper articles

True or False: Two disadvantages of collecting primary data are the costs and time involved.

• True

• False

It is difficult for small businesses to compete with large retailers because

• large retailers are able to order and stock products in larger quantities

• large retail chains don’t rely on a single product line

• large companies have more resources to devote to advertising

• all of the above

Which of the following is not a step involved when preparing a competitive analysis?

• make a list of all competitors

• create a customer profile

• list your competitors’ strengths and weaknesses

• summarize products and prices offered by competitors

Which of the following is not a good way to get customer feedback?

• check with your competition

• call customers the day after they make a purchase

• use a customer feedback box

• have customers complete a survey after shopping with you

Which of the following is a strategy for maintaining customer loyalty?

• keeping standard business hours

• adhering to strict return policies

• offering superior service

• none of the above