Deck 3: Market Feasibility Study

Question 1

Organizations such as hospitals, personal care homes, schools, and universities, are considered part of:

A) The B2C market
B) The institutional market
C) The industrial market
D) The government market

Answer 1

B

Question 2

A SWOT analysis represents:

A) Strengths, weaknesses, obstacles, tactics
B) Strategy, weaknesses, opportunities, tactics
C) Strengths, weaknesses, opportunities, threats
D) Strategy, weakness, obstacles, threats

Answer 2

C

Question 3

_________ data comprise information that others have put together relating to your industry and/or your customers.

A) Primary
B) Secondary
C) Internal
D) External

Answer 3

B

Question 4

Perhaps the best way to get the most current and useful information regarding your potential market is through:

A) Primary data
B) Secondary data
C) Trade publications
D) Statistics Canada

Question 5

Cloud computing is an example of a product that is:

A) A new invention
B) Highly innovative
C) Moderately innovative
D) Slightly innovative

Question 6

A microprocessor used to control a single-person car is an example of a product that is:

A) A new invention
B) Highly innovative
C) Moderately innovative
D) Slightly innovative

Question 7

The first comprehensive plan you need in contemplating any new venture is called:

A) A profit-loss statement
B) A financial projection report
C) A feasibility study
D) A business plan

Question 8

A condo developer has determined that his target market consists of financially independent, unattached singles between the ages of 40-50. He has segmented the market based on _____ factors.

A) Psychographic
B) Sociological
C) Demographic
D) Geographic

Question 9

________ is the level of return or compensation that you might expect for assuming the risks associated with investing in this business.

A) Profit potential
B) Return on investment
C) Risk analysis
D) Capital appreciation

Question 10

This process of breaking down large, heterogeneous consumer or industrial markets into more homogeneous groups is known as:

A) Market segmentation
B) Market diversification
C) Market augmentation
D) Market differentiation

Question 11

Other companies which offer products similar to yours are called:

A) Indirect competitors
B) Direct competitors
C) Parallel competitors
D) Rival competitors

Question 12

All of the following are likely uses for your prototype, except:

A) You can get photographs and other promotional material.
B) Show the idea to prospective buyers
C) Sell the prototype to the highest bidder
D) Put out publicity releases

Question 13

Other firms and businesses in your community and across the country are considered to be part of the:

A) B2C market
B) institutional market
C) industrial market
D) government market

Question 14

Which part of the feasibility study contains information about the distribution channels for your product?

A) Marketing plan
B) Technical feasibility
C) Market assessment
D) Profit assessment

Question 15

Which of the following competitive strategies creates a meaningful difference between your products and those of the competition, which creates a higher level of perceived customer benefits?

A) Cost advantage
B) Marketing advantage
C) Differentiation advantage
D) Focus on a Market Niche

Question 16

A typical feasibility study includes all of the following areas, except:

A) The concept for your venture
B) The technical feasibility of your idea
C) The supply situation
D) International trade regulations

Question 17

One key source of demographic data on the Canadian market is:

A) Industry Canada
B) CANSIM
C) The CRA (Canada Revenue Agency)
D) Canadian Industry Statistics

Question 18

A fully developed concept includes all of the following, except:

A) A description of the proposed pricing strategy
B) Distribution plans
C) Proprietary aspects
D) A prototype

Question 19

Wireless technologies are generally considered to be:

A) New inventions
B) Highly innovative
C) Moderately innovative
D) Copycatting

Question 20

Which part of the feasibility study contains information about the nature of your competition?

A) Marketing plan
B) Technical feasibility
C) Market assessment
D) Profit assessment

Question 21

Selecting a location is most critical for which of the following businesses?

A) An automobile manufacturing plant
B) Public Utilities Commission
C) Municipal waste and recycling site
D) Hakim Optical

Question 22

________ are commonly provided to customers who buy more than some minimum quantity or dollar value of products or services from you.

A) Loyalty discounts
B) Cash discounts
C) Quantity discounts
D) Cumulative discounts

Question 23

_______ gives you a method of moving inventories that you may otherwise have to carry over to the following year.

A) Cash discounts
B) Quantity discounts
C) Quality discounts
D) Seasonal discounts

Question 24

Items such as specialty products or jewellery, for example, typically have markups in the range of:

A) 5-10%
B) 20-30%
C) 35-45%
D) 50-60%

Question 25

Which of the following promotional activities has the highest cost per audience member?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 26

For your business plan, sales estimates for your first year of operation should be _____, while the estimates for subsequent years can be _________.

A) Quarterly; annually
B) Quarterly; semi-annually
C) Monthly; semi-annually
D) Monthly; quarterly

Question 27

All of the following are internal factors which might affect your sales, except:

A) the distribution channels you decide to use
B) level of your promotional effort
C) fashion trends and cycles
D) your ability to manage inventory levels effectively

Question 28

What is the percentage markup on an item costing $1.50 and selling for $3.00?

A) 25%
B) 50%
C) 75%
D) Cannot be determined.

Question 29

The ______ approach utilizes published statistics and weights them by an index that may be some factor such as the percentage of the population within your designated geographic area.

A) Broad-based
B) Narrow-focus
C) Statistic-specific
D) Top-down

Question 30

The principal ingredients of a marketing program include all of the following, except:

A) Person
B) Productivity
C) Pricing
D) Place

Question 31

Which of the following promotional activities offers the greatest ability to focus on the target customer?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 32

Which of the following promotional activities is weakest in terms of the ability to focus on the target customer?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 33

Using cost-based pricing, what is the percentage markup on an item costing $1.00 and selling for $5.00?

A) 25%
B) 45%
C) 55%
D) 80%

Question 34

Which of the following competitive strategies identifies a position in the market that has been overlooked by your competitors?

A) Cost advantage
B) Marketing advantage
C) Differentiation advantage
D) Focus on a Market Niche

Question 35

Which of the following promotional activities has the highest level of credibility?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 36

_________ permit customers to deduct a percentage amount from the net cost of their purchases if payment is made in cash at the time of purchase or full payment is made within a specified number of days.

A) Cash discounts
B) Quantity discounts
C) Quality discounts
D) Noncumulative discounts

Question 37

Items such as food products and other staple products typically have markups in the range of:

A) 5-10%
B) 15-25%
C) 35-45%
D) 50-60%

Question 38

All of the following are external factors which might affect your sales, except:

A) Seasonal changes
B) Level of your promotional effort
C) Political activities and events
D) Changes in the retail mix

Question 39

All of the following are forms of non store retailing, except:

A) Vending machines
B) Fairs and exhibitions
C) Bricks and Mortars
D) The Internet

Question 40

Which of the following promotional activities is weakest in terms of the ability to deliver a complicated message?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 41

A cost advantage competitive strategy involves a significantly lower cost compared to the competition which permits reasonable profit margins while offering lower prices.

Question 42

The first plan you will write for your new venture is the business plan, once that is complete, you will then conduct a feasibility study.

Question 43

The bottom-up approach involves aggregating information from the customer level to the total market level.

Question 44

The market research process involves two basic steps: gather information and then interpret it.

Question 45

In the model for small business growth, product and market research in the inception Chapter is:

A) Non-existent
B) Little
C) Moderate
D) Innovative

Question 46

Discuss the relationship between the level of risk of a new venture and the expected return for that risk for new inventions, moderately or slightly innovative ideas, and copycat products?

Question 47

In the model for small business growth, the key issue in the survival Chapter is:

A) Obtaining customers
B) Increasing competition
C) Expansion into new products or markets
D) Finding growth opportunities

Question 48

Free product samples and contests are activities related to:

A) Advertising
B) Personal selling
C) Sales promotion
D) Public relations

Question 49

Secondary data is far less expensive for a firm to collect than is primary data.

Question 50

In the model for small business growth, the key issue in the maturity Chapter is:

A) Obtaining customers
B) Increasing competition
C) Expansion into new products or markets
D) Finding growth opportunities

Question 51

When it comes to the "one-store test" to test your product, you are safe to assume that the single location will be representative of the marketplace in general.

Question 52

In the model for small business growth, product and market research in the survival Chapter is:

A) Non-existent
B) Little
C) Moderate
D) Innovative

Question 53

Survey research is the most widely used method of primary data collection.

Question 54

A personal sales person's primary function is informing customers about the nature of the offering and the value and benefits of using the product or service.

Question 55

A discount expressed as "2/10 net 30" means the customer can take a 2 percent cash discount for making payment within 10 days. Otherwise, the customer must increase the invoice total by 2 percent and pay that amount in 30 days.

Question 56

Examples of psychographic factors include the desire for status, the pursuit of fun, and the desire to be environmentally conscious.

Question 57

Merchant wholesalers are further classified as full-service, limited-function, drop shippers, truck wholesalers, and rack jobbers.

Question 58

Which of the following promotional activities offers the greatest capacity to interchange with the audience?

A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling

Question 59

Describe market segmentation based on geographic location.

Question 60

In the model for small business growth, the key issue in the inception Chapter is:

A) Obtaining customers
B) Increasing competition
C) Expansion into new products or markets
D) Finding growth opportunities

Question 61

Compare and contrast observational methods to questioning methods as a form of primary data collection.

Question 62

What are some of the common complaints faced by the owners of home-based business from neighbours and others in the community?

Question 63

Discuss the disadvantages associated with running a home-based business.

Question 64

Describe three different kinds of discounts provided by businesses to their customers.

Question 65

Describe the primary issues faced by manufacturing firms in the selection of a location for their facilities.