4.1-4.4, IB Business Management

What kind of segmentation is used by a firm that offers a wide range of products such as holidays and insurance aimed at customers aged 60 and above?

• Demographic

• Geographic

• Psychographic

• Behavioral

What is Company A’s market share if its sales revenue amount to $100 million in an industry with annual sales of $500 million?

• 10%

• 15%

• 20%

• 25%

How many stages are in the Product Life Cycle (PLC)?

• 3

• 4

• 5

• 6

Which of the following is a characteristic of qualitative research?

• Key questions focus on 'How many?'

• It is objective

• Key questions focus on 'Why?'

• It relies on numerical data

Answer explanation

Qualitative research focuses on questions that answer 'why' consumers may or may not buy a product or service. Qualitative research is also subjective and the researcher is part of the process. On the other hand, quantitative research is objective, the researcher is not a part of the process and key research questions focus on numerical data of 'how many'.

Which term describes a distinct group of customers with similar characteristics and similar needs or wants?

• Market Segment

• Market Share

• Market Analysis

• Market Research

Which visual tool reveals customer perceptions of a product or a brand in relation to others in the market?

• Product Position Map

• Market Analysis Chart

• Brand Equity Matrix

• Consumer Feedback Loop

Potters Pots has a 26% share of the garden pots market in a local city worth $15,000,000 per year. What is the firm’s annual sales revenue?

• $2,500,000

• $3,900,000

• $4,500,000

• $5,200,000

Which term describes the total sales of all the producers in a market?

• Market size

• Market power

• Sales Efficiency

• Concentration Ratio

The data in the table shows the percentage of customers who buy a decaffeinated drink from a café at different times of the day. Which method of data presentation would not be appropriate for this information?

• Pictogram

• Bar graph

• Pie Chart

• Histogram

Answer explanation

Although the data shows percentages, a pie chart only works if the total of all the data equals 100%. In this example, each time slot could be a maximum of 100% and the research is comparing shopping patterns through the day.

Which would be the most appropriate size of a typical focus group?

• 2-3

• 4-7

• 8-10

• 11-15

Answer explanation

Although there is no exact answer, four to seven people is generally considered to be a reasonable size for a focus group. It is large enough to get a range of opinions, but not too big that people are unable to be heard. It becomes more expensive to run focus groups when more people are involved