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WorksheetsCh 4 Ent. Identify and Meet Market Needs
Total questions: 30
Worksheet time: 1hrs 25mins
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?
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) .
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 (a) .
What is a customer profile and how can it help an entrepreneur? Identify and describe four types of data used to profile customers.
Market research can be time-consuming and expensive, but it is worthwhile when major decisions must be made.
True
False
Iris wants to sell custom-made T-shirts to high school students in her community. For several days, she visited the local mall and counted the number of teenagers she saw wearing T-shirts. She recorded the following information:
Day 1: 47
Day 2: 33
Day 3: 50
Day 4: 34
What is the average number of teenagers wearing T-shirts each day?
(a)
Data on all of the following can be found in secondary data resources EXCEPT
the population of towns and neighborhoods
the number of people who purchase soft drinks at the local pizza parlor
employment statistics for specific regions of the country
the average household income in your town
A candy manufacturer is conducting a survey to find out how much consumers like its new Crispo Choc-a-Crunch. Consumers were given a sample of the candy and asked to rate it on a scale of 1 (terrible) to 5 (fantastic). The survey results were:
27 rated it 1
41 rated it 2
76 rated it 3
52 rated it 4
33 rated it 5
What is the average rating for the new candy? (Round answers to the nearest decimal point.)
(a)
Carl’s Car Wash has 1,000 customers who pay $20 each week to have their vehicles washed and vacuumed. You have collected data indicating that half of Carl’s customers would switch to your new car wash business if they could save $5/week. How much revenue could you expect to earn in one year by starting a new car wash business? (Hint: There are 52 weeks in a year.)
(a)
Surveys should be no more than five pages long if they are mailed to respondents.
True
False
What is market research?
Once you have collected all of your primary and secondary data, the next step is to analyze the data.
True
False
The FIRST step of primary market research is to (a)
What kind of customer data is collected in a customer relationship management (CRM) system? How do companies collect this data? What do they do with the data once it is collected?
An online bookstore sent electronic coupons to Carrie 25 times last year. If she used 10 of them, that would be (a) percent of the electronic coupons used this year by Carrie.
Data _ (a) is used to find hidden patterns and relationships in the customer data stored in the data warehouse.
__________ refers to a company's efforts to understand customers as individuals instead of as part of a group.
(a)
In a CRM system, any type of interaction a customer has with a company is called a
business contact
touch point
marketing interaction
B2C interface
A business that makes most of its money selling the same or similar products to the same market as other businesses is (a) competition.
Marti’s Boutique sells custom-made dresses. Which of the following is an indirect competitor to Marti’s Boutique?
Dutch Girl Dry Cleaners
Frieda’s Dress Shop
Macy’s Department Store
all of the above
The first step in a competitive analysis is to identify your competitors.
True
False
Name at least three ways that a business owner can stay in touch with customer needs.
Though popular in the past, frequent-buyer programs have fallen out of favor in recent years because they have been shown to have little impact on customer loyalty.
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
