entrepreneurship test 10/21

customer profile

A description of the characteristics of the person or company that is likely to purchase a product or service

demographics

Data that describes a group of people in terms of age, marital status, daily size, ethnicity, gender, profession, education, and income

focus group

In depth interview with a group of target customers who provide valuable ideas on products or services

primary data

Information collected for the very first time to fit a specific purpose

customer relationship management (CRM)

A company’s effort to understand customers as individuals instead of as a part of a group

psychographics

1. Data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits

secondary data

data found in already published sets

direct competition

A business that makes most of its money selling the same or similar products or services to the same market as other businesses

Which of the following is not a reason entrepreneurs need to know who their customers are?

customers have no influence on products or services offered

To identify your target market, you need to know

(who customers are, their age, and where potential customers shop)

geographic data

Data that helps you determine where your potential customer lives and how far they will travel to do business with you

not an example of primary data

statistics from a government website

not an example of secondary data

customer feedback from a survey

True or false, collecting primary data can be time consuming and expensive -

True

Its difficult for small business to compete with large retailers because

large retailers keep larger quantities of products, large retail chains do not rely on a single product line, and large companies have more resources

 not a step involved when preparing a competitive analysis

creating a customer profile

True or false - businesses don’t need to identify their target market to succeed

False

Which of the following is not a good way to get customer feedback

 calling customers the day after they make a purchase

a strategy for maintaining customer loyalty

offering superior service

True or False - Longer surveys are always better because you can collect more information 

False