Entrepreneurship - Chapters 4 and 5

Question 1

It is generally less expensive for a business to collect secondary data than to collect primary data.

Accepted Answer

True

Question 2

Data that describe people in terms of their tastes, opinions, personality traits, and habits are called psychographics.

Accepted Answer

True

Question 3

Which of the following is a direct competitor to Starbucks?

Accepted Answer

Dunkin

Question 4

Which of the following is a good resource for secondary data?

Accepted Answer

the U.S. Census Bureau

Question 5

Groups of customers within a large market who share common characteristics are know as

Accepted Answer

market segments

Question 6

A marketing strategy should always be consistent with the overall goals that have been set for the business.

Accepted Answer

True

Question 7

The objective of every pricing strategy is to increase profits.

Accepted Answer

False

Question 8

Once an entrepreneur has identified his or her goals, it is time to develop a

Accepted Answer

marketing strategy

Question 9

Locating your indirect competition can be more difficult than finding direct competitors.

Accepted Answer

True

Question 10

Before you open a business, the most important things to determine are who your primary customer are and

Accepted Answer

whether these customers will be willing to buy your product

Question 11

This type of pricing technique starts out with a low price with the goal of building a strong customer base.

Accepted Answer

penetration pricing

Question 12

Product characteristics that will satisfy consumer needs are called

Accepted Answer

features

Question 13

Information that helps you determine how often potential customers use a particular service is called

Accepted Answer

use-based data

Question 14

Sometimes a business must include products in their mix even though they may not be profitable.

Accepted Answer

True

Question 15

Establishing informal ties with people who can help your business grow is called

Accepted Answer

networking

Question 16

It has been found that often a small percentage of the product selection makes up the majority of the sales revenue.

Accepted Answer

True

Question 17

A market segment is made up of people with common characteristics.

Accepted Answer

True

Question 18

Companies that offer similar or identical products to the same group of target customers are called

Accepted Answer

competitors

Question 19

Marketing involves all of the processes used to determine and satisfy the needs of customers.

Accepted Answer

True

Question 20

A business's marketing plan should never be included in the business plan.

Accepted Answer

False

Question 21

Markup and markdown prices are two methods of cost-based pricing.

Accepted Answer

True

Question 22

A marketing strategy needs to address

Accepted Answer

all of the above

Question 23

Pricing that is determined by how much customers are willing to pay for a product or service is called

Accepted Answer

demand-based pricing

Question 24

A business's percentage of the total sales compared to all companies in the same market is called

Accepted Answer

market share

Question 25

If a store sell bathing suits for half-price in the middle of winter, the store is offering customers a

Accepted Answer

seasonal discount

Entrepreneurship - Chapters 4 and 5

Questions 25

Entrepreneurship - Chapters 4 and 5

Questions 25