Ch 4 Ent. Identify and Meet Market Needs

Which of the following would likely be the target market for a coffee shop that is located downtown?

•  

  stay-at-home moms

• young professionals

• families

• senior citizen

Which question should an entrepreneur answer in order to identify the target market?

• How old are my customers?

• What needs or wants will my product satisfy?

• How much money do my customers have?

• all of the above

What is a target market?

Answer explanation

To be successful, all an entrepreneur needs to do is to come up with a good idea.

• True

• False

Why is the process of market segmentation important?

Data that describe a group of people in terms of age, marital status, family size, income, and similar characteristics are called __________.

A market segment consists of people with common characteristics.

• True

• False

Which of the following is an example of psychographic data?

• single man, age 25, income of $50,000/year

• suburban dweller, loves country music, eats pizza twice weekly

• Hispanic woman, bachelor’s degree, librarian

• 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 called _______________.

What is a customer profile and how can it help an entrepreneur? Identify and describe four types of data used to profile customers.