Question

MCQ QUESTIONS 1)

Companies that sell to other companies are called

A) B2C

B) B2B

C) C2C

D) none of the above

2) Which of the following is true about a target market?

A) it represents a limited customer base

B) it can be based on buying patterns

C) it can include more than one market segment

D) all of the above

3) Facts about consumers that relate to their beliefs, lifestyle, and personal preferences are called

A) demographics

B) geographics

C) psychographics

D) all of the above

4) To sell your product to a mass market means

A) to target as many consumers as possible with your marketing efforts

B) to amass as many consumers as possible

C) to choose the right target markets

D) to use a small marketing budget

5) A customer profile is

A) a collection of demographic data

B) a detailed description of your target market's characteristics

C) a detailed description of a single customer

D) a collection of psychographic data

True or False Questions

1) For a small business, the mass-market approach is the best strategy.

2) A target market often includes more than one market segment.

3) A market segment is a group of consumers within a particular market that have something in common.

4) Psychographic data can only be collected for people, not businesses.

5) The fact that more people buy flowers around Mother's Day is a buying pattern.

2 Exercise

1. Star Stone Company invests $3000 per year in inventory. If the company made 30 inventory purchases in a year, what is average Inventory investment?

2. If total cost of inventory $16,000 and average inventory investment is $800, what is inventory turnover?

3. Compare different inventory systems

4. Controlling inventory contributes to good inventory management, explain.

Answer 1

Answer-1:

In market business models are classified into 4 categories;

B2B for Business to Business

B2C for Business to Customer

C2C for customer to customers.

C2B for customer to Business

Hence, option B is correct as companies that sell to other companies will be covered under B2B.

Answer-3:

Market segmentation means dividing a market into smaller segments with the distinct needs, characteristics or behaviour that might require separate marketing strategies or mixes. Like Geographic Segmentation, Demographic Segmentation, Psychographic Segmentation.

In Psychographic segmentation, market is divided into different segments based on social class, lifestyle or personality characteristics.

Hence option C is correct.

Anser-4:

Mass marketing also known as undifferentiated marketing is a marketing strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Hence, Option B is correct.

Answer-5:

Customer profiling means a description of a customer or set of customers which includes demographic, geographic, and psychographic characteristics as well as buying patterns, creditworthiness, and purchase history

Hence, Option C is correct.