Market Research1. Ross Bergen is considering a certain corner location for his sandwich shop. If he surveys people passing the corner at lunchtime, which of the following questions will give him the most useful information? A. Wouldn't you prefer a fresh sandwich to fast food? B. Do you prefer turkey or ham on your sandwiches? C. Would you be interested in a new place to eat lunch? D. Do you often walk by this corner?2. Once you've found your target market, your business is on track, and your customers seem satisfied, ongoing market research can A. be a waste of money. B. inform you of coming trends. C. improve your product quality. D. defeat your business goals.3. The owner of Fido's Pet Supplies wants to know how much dry dog food to stock in her new location. On her customer questionnaire, which of the following questions would be most likely to help her estimate her needs? A. How much do you spend every week on dog food? B. How often do you buy dry dog food? C. Does your dog prefer canned or dry food? D. How many pounds of dry dog food do you buy each week?4. Doing personal interviews with holiday shoppers at an indoor mall is an example of _______ research. A. primary C. professional B. secondary D. interpersonal5. Your repeat customers have made it clear that quality is more important than price. This reflects your target market?s A. distinguishing characteristics. C. values. B. buying behaviors. D. demographics.6. John Chapelle wants to know if his video store customers are interested in a selection of classic, black-and-white movies. How could John simplify his survey to get them to fill out his short questionnaire before they leave the store? A. Make short blank lines to fill in. B. Include only two questions, although they?d be long. C. Ask open-ended questions. D. Provide check boxes for each choice.7. Cheryl Adams is having trouble defining her target market for the bookstore she?s opening in her town, which is home to a small college, a retirement community, and a year-round tourist industry. By deciding to hire a marketing firm to handle the research, Cheryl will probably A. ruin her budget because of the expense. B. save more money than she spends on the professional research. C. miss opportunities she might have taken a chance on. D. learn a lesson to go with her hunches.8. After collecting 217 completed questionnaires and reviewing the results, you find you're no closer to deciding on a location than you were before. Chances are it's because your marketing questions A. did not provide clear, measurable choices. B. were too persuasive. C. did not reach a large enough sample. D. reached the wrong target group.9. Which of the following is an example of secondary research? A. Conducting trial-and-error testing B. Observing reactions to free samples C. Gathering statistics online D. Hiring a marketing firm10. An effective way to encourage people to return a mail questionnaire quickly is to A. print a bold deadline at the top. B. connect it to some cause they?re interested in. C. offer a discount coupon to the first 100 who return it. D. ask fewer than 20 questions.11. Specific data such as age, income, family size, and occupation, used for marketing purposes, is called A. the target market. C. a secondary market. B. demographics. D. survey statistics.12. When you ask a customer the average dollar amount he spends on clothing, how often he shops, or which stores he prefers, you're researching A. secondary statistics. C. customer values. B. buying behaviors. D. demographics.
13. One of the keys to writing a successful questionnaire is to A. ask exactly what you need to know. B. use clever questions that hide your true motives. C. provide multiple-choice answers for each question. D. ask yes or no questions.14. Adam Kane wants to sell office supplies to as many customers as possible, in as many markets as possible. His plan is A. the best way to succeed. B. a proven way to maximize his profit margin. C. a time-consuming way to find his target market. D. a poor market strategy.15. Gemma's music store is doing well, but her goal is to improve customer satisfaction. In order to do so, she should A. lower her prices. B. improve the quality of her products. C. track her sales carefully. D. understand her customers' values.16. Mansee Patel is doing research before opening a store specializing in traditional Indian clothing. In order to locate her target market, she should study A. fashion trends. C. business values. B. overall buying behaviors. D. demographics.17. If you primarily sell false noses, wigs, and polka-dot jumpsuits to professional clowns, except for once a year, when children buy your products to wear at Halloween, the children are your A. minor clientele. C. annual consumers. B. secondary target market. D. primary target market.18. West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26 percent of his business when two drugstores and a local hospital closed. He missed a big opportunity when his competitor got a contract at a new nursing home before Fred even knew it was being built. Fred needs to A. better understand his customers? values. B. sell to the public instead of to other businesses. C. do continuous research on demographic changes. D. improve his overall customer service.19. One of the biggest problems with telephone surveys is that A. people often refuse to participate. B. the cost is higher than other methods. C. they're too impersonal. D. it takes too long to collect the results.20. As Jake began his market research, he discovered that there wasn't another retail boating supply business for more than 100 miles. In fact, there was no large lake or river, either. Jake concluded that A. the competition gave up too soon. B. there was no market for his product. C. he would have to offer lower prices. D. his marketing should stress quality and service.
Basics of a Business Plan 070034001. If your research uncovers a surprising growth trend in your industry, you’ll have to revise the _______ section of your business plan. A. market profile C. operating plant B. demographics D. processes2. Sarah and Stephanie are determined to make their business plan look as professional as possible. In order to make sure it’s organized and presented correctly, they’ve decided to A. hire a reliable attorney to look it over. B. do extra research on their target market. C. buy a software program made for the purpose. D. focus on their anticipated profit margin.3. What is meant by the phrase “charging whatever the market will bear”? A. Your price can’t be more than customers are willing to pay. B. You have to undercut your competition. C. You should keep raising prices until business drops off. D. Customers believe that higher prices mean better quality.4. Lindsey Birch is planning a van service to transport large or unmanageable pets to their veterinarians. In the Business Information section of her business plan, she writes that she believes her service will succeed because A. her competition is clueless. B. it will solve a problem. C. it’s a creative idea. D. cats are generally difficult creatures.5. After you set a price for your product, you discover that your competitors are selling the same thing at a significantly lower price. One reasonable option you have is to A. use the cost plus model. B. lower your price, but add a service charge. C. raise your profit margin. D. find a way to lower your costs.6. Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station and truck stop on the lot. While doing research for his business plan, he will want to pay special attention to A. oil company advertising. C. management issues. B. legal and regulatory requirements. D. Commerce Business Daily.7. The main purpose of writing a business plan is to A. have a document to file with your incorporation papers. B. meet a state requirement for new businesses. C. inform employees of your business philosophy. D. prepare a “blueprint” for the development of your business.8. You’ve designed the floor plan of your restaurant and an efficient traffic pattern for patrons, servers, and other staff. In your business plan, these actions are called A. industry standards. C. staff evaluations. B. performance measures. D. processes.9. Before setting your prices, it’s wise to A. ignore your competitors’ prices. B. subtract your profit margin from your costs. C. research industry standards. D. memorize the formula for cost plus.10. Caroline’s Jewelry and Gifts is located between a hardware store and a sports bar. While her target market is adult women of medium income, who would be a logical secondary target market? A. Men who want to buy a gift C. Grandparents B. Women with very high incomes D. The general public11. Rachel plans to set up a beautifully furnished office for her interior decorating business. She will describe it in her business plan under the heading A. Current Trends. C. Processes. B. Inventory. D. Plant and Equipment.12. Dan’s plant will require two shifts of skilled workers, seven days a week. As he does his research, he will pay particular attention to A. performance measures. C. his target market. B. the labor market. D. regulatory restrictions.13. John would like to contact several trade associations, but he’s not sure where to look for information. What is the most efficient way for John to find the information he wants? A. Ask a librarian. C. Contact the SBA. B. Search the D&B Database. D. Check out hoovers.com.14. It’s important for business owners to develop values and a philosophy of doing business. These viewpoints will be expressed in your A. Overview. C. mission statement. B. background information. D. Processes section.15. You’ve begun a Web search for information on several suppliers you’re considering for your business.Which of the following do you expect will have the most accessible information for your research? A. A small, family-owned company C. A local business B. A publicly held company D. A sole proprietorship16. Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be A. written before you begin your research. C. written last. B. repeated in a cover letter. D. lengthy and detailed.17. When Jack Cooper started his excavating service, his business plan mentioned his only competitor as “a kid with an old dump truck.” Three years later, Jack was in financial trouble and the “kid” bought him out, proving the importance of A. taking your competition seriously. C. forming a corporation. B. planning for bankruptcy. D. choosing the right location.18. Calvin and Liz have summarized several lengthy research items for their business plan. In case an investor wants more details on the research, they’ve also included A. autobiographies and résumés. B. their business goals. C. their mission statement. D. a file of price quotes and survey results.19. Before you decide whether to use the cost plus model, it’s important to thoroughly research A. competitors’ operating processes. B. profit margins in neighboring states. C. buying behavior in similar industries. D. your industry’s going rate.20. Lawrence Masters submitted his business plan to a potential investor, but was disappointed when he was quickly turned down. Chances are, Lawrence failed to capture the investor’s attention because of a poorly written A. business outline. C. overview. B. financial plan. D. profit projection.
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