Deck 4: Analyzing the Industry and Market

Question 1

The North American Industry Classification System (NAICS)is the classification system that was developed by the United States, Canada, and Mexico to identify industries and to allow for common standards and statistics across North America. ​

Answer 1

True

Question 2

To access the timeliest information, it is important to gather ____ on an industry. ​

A)secondary data
B)primary data
C)blogs and social networking
D)trade associations ​
E)None of these choices

Answer 2

B

Question 3

The market research process consists of seven steps. ​

Answer 3

False

Question 4

Entrepreneurs identify their primary customers by recognizing a need, or pain, in the market.

Question 5

____ has provided a way of effectively looking at the structure of an industry and at a company's competitive strength and positioning relative to that industry and to the markets it serves. ​

A)Porter's Five Forces
B)PEST
C)Market research
D)Industry analysis
E)None of these choices

Question 6

The industry in which a new venture will operate is the business's ____. ​

A)external environment
B)target demographic ​
C)target market ​
D)first customer
E)None of these choices ​

Question 7

Industries remain static or stable over time, so it is easy for the entrepreneur to research and understand the industry. ​

Question 8

For every industry, the life cycle stages occur at different times and vary in duration.

Question 9

Radical change occurs in industries when an innovation results in the obsolescence of previous technology and drives old-line companies out of business. ​

Question 10

The most important data that entrepreneurs can collect on potential customers are primary data derived from observation, online or in-person surveys, phone surveys, interviews, and informal focus groups. ​

Question 11

The government can limit entry to an industry or market through strict licensing requirements and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions. ​

Question 12

As more firms enter an industry, intense ____ occurs. ​

A)growth
B)adaptation
C)differentiation ​
D)shakeout
E)decline

Question 13

Which of the following is NOT a question one would ask when researching an industry? ​

A)What does the industry look like?
B)Is the industry growing?
C)Where are the opportunities? ​
D)How did the industry develop?
E)What is the status of any new technology? ​

Question 14

There are seven stages in the industry life cycle. ​

Question 15

____ change is found in industries where resources turn over frequently and must continually be replaced. ​

A)Progressive
B)Intermediating
C)Radical
D)Creative
E)None of these choices

Question 16

A/An ____ is a grouping of competitors that an entrepreneur targets. ​

A)industry
B)external environment ​
C)target market ​
D)market
E)None of these choices ​

Question 17

Target market research provides some of the least important data needed to decide who the first customer will be. ​

Question 18

Brand equity, advertising expense, and the rate of industry growth are part of which of Porter's forces? ​

A)Threat of substitute products
B)Customer bargaining power
C)Supplier bargaining power
D)Threat of new market entrants
E)Intensity of competitive rivalry

Question 19

Google, Wikipedia, journals, and trade magazines are examples of ____. ​

A)industry analysis
B)market research
C)primary sources
D)secondary sources ​
E)None of these choices ​

Question 20

The ____ period moves the industry from many companies and high product costs, to a more stable industry with only a few efficient firms. ​

A)growth
B)adaptation
C)differentiation ​
D)shakeout ​
E)maturity

Question 21

Identifying and profiling the first customer, estimating potential demand from that customer, and identifying subsequent customer segments and needs to grow the company are goals of market research for ____. ​

A)a new company
B)a mature company
C)all companies, large and small
D)companies in decline
E)All of these choices

Question 22

What is the phrase that is associated with the costs to produce a product when those costs have declined relative to the price of industry's goods and services? ​

A)Threat of new entrants
B)Price and quality of alternatives
C)Switching costs
D)Economies of scale
E)Costs of inputs

Question 23

The second step in the market research process is ____. ​

A)assessing information needs
B)measuring the target market with primary research
C)determining what methods of analysis will be used
D)researching secondary data
E)forecasting demand for the product or service

Question 24

Providing more opportunity for clarification and discussion, the observation of nonverbal communication, and the high response rate are all examples of the advantages of ____. ​

A)in-person surveys
B)structured interviews
C)informal focus groups
D)phone surveys
E)anthropological observation

Question 25

"How is the industry described?," "Is the industry growing?," and "Where are the opportunities?" are all examples of the questions that should be answered when conducting the ____. ​

A)industry trajectories
B)industry analysis
C)PEST analysis
D)target market analysis
E)first customer analysis

Question 26

A new industry goes through volatile and rapid changes as companies and their respective technologies jockey for position and the right to determine industry standards. This is what stage of the industry life cycle? ​

A)Birth
B)Shakeout
C)Differentiation and competition
D)Growth and adaptation
E)Maturity and decline

Question 27

The ____ represents an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time. ​

A)general customer base
B)first customer
C)supplier
D)industry
E)None of these choices

Question 28

Which of the following is NOT part of an ethnographic approach to customer observation? ​

A)Learn from observation
B)Explain what was observed
C)Develop a plan
D)Test the theory
E)Conclusions

Question 29

Observation, online or in-person surveys, phone surveys, interviews, and informal focus group are all ways to collect ____ data. ​

A)secondary
B)primary
C)third-party
D)sample
E)All of these choices

Question 30

____ change takes place as companies in the industry grow geographically and increase profits through innovations in operations, processes, distribution, and technology. ​

A)Radical
B)Creative
C)Progressive
D)Intermediating
E)Internet

Question 31

The concept that customers are not likely to switch easily to something new is: ​

A)a SWOT analysis
B)Inertia
C)Brand loyalty
D)All of these choices
E)None of these choices

Question 32

The ethnographic approach to market research has ____ steps. ​

A)seven
B)five ​
C)four
D)nine
E)two

Question 33

A good starting point for gathering secondary market data is ____. ​

A)the library
B)other companies
C)the Internet
D)the buying habits of potential customers
E)All of these choices

Question 34

It is best to begin researching the industry by using ____ information about the industry. ​

A)primary
B)secondary
C)market life cycle
D)customer bargaining power
E)None of these choices

Question 35

A/An ____ lays out the benefits, distribution channel, product/service, and potential competition for each identified customer segment. ​

A)customer matrix
B)market matrix
C)customer profile
D)industry profile
E)None of these choices

Question 36

Birth, growth and adaptation, and shakeout are stages of the ____ life cycle. ​

A)product
B)market
C)industry
D)company
E)All of these choices

Question 37

The key questions to be asked to discover your first customer include all of these except:  ​

A)What are the potential markets for the product or service?
B)Of these markets, which customers are most likely to purchase
C)How much is the customer willing to pay?
D)How often does the customer buy?
E)All of these choices

Question 38

The "first customer" is the customer who pays for the product or service and is the customer with the most ____. ​

A)money
B)time
C)pain
D)All of these choices
E)None of these choices

Question 39

The model most commonly used to help an entrepreneur analyze an industry is ____.

A)Porter's Four Forces Model
B)Porter's Five Forces Model
C)the PEST Model
D)the SWOT Analysis Model
E)None of these choices

Question 40

Age, income level, education, and buying habits are all components of the ____.

A)competitor profile
B)customer profile
C)supplier profile
D)industry profile
E)SurveyMonkey profile

Question 41

Cite five of the issues that should be addressed in the industry analysis. ​

Question 42

Discuss some of the things that should be taken into account when constructing a questionnaire. ​

Question 43

Briefly discuss Porter's Five Forces Framework that is used to analyze an industry. ​

Question 44

Porter's Five Forces work has been challenged on several levels. What re the bases of these challenges? ​

Question 45

Briefly discuss how an entrepreneur would collect competitor data. ​

Question 46

Discuss the four major industry trajectories that signal how fast change occurs in a particular industry. ​

Question 47

Discuss the purpose of the North American Industry Classification System (NAICS), and indicate what countries are part of the system. ​

Question 48

Briefly discuss the six sources of primary industry data. ​

Question 49

Briefly discuss the components/elements of the industry life cycle. ​

Question 50

Briefly discuss the Four-Step Market Research Process. ​