Chapter 3 & 4

Question 1

What is a free market society?

Answer 1

Any business can enter and sell products (no restriction)

Question 2

Difference between direct and indirect competition

Answer 2

Direct Competition: Products in the same product category that are very similar are in direct competition (i.e. Coke and Pepsi)

Indirect competition: Products that are not in the same product category which are not directly related to each other (i.e. movie theatre and Wonderland)

Question 3

What is a sustainable and non-sustainable competitive advantage *Know this

Answer 3

SCA → a USP, lowering production costs, servicing a niche market, creating customer loyalty
Non-SCA → promotion, placement, quality, benefits of use, price, design features

Question 4

What are the differences between sustainable and non-sustainable competitive advantage

Answer 4

SCA → can’t be replicated by competitors
Non-SCA → can be replicated by competitors

Question 5

Competitive advantages in a service industry

Answer 5

Convenience, degree of service, selection, reputation, price

Question 6

What is a value added service and examples

Answer 6

An activity performed to support the sale of a product or other service

Question 7

Know what a tariff is

Answer 7

Taxes on imports and exports between countries

Question 8

Why is marketing research useful

Answer 8

Useful for developing a marketing strategy or solving a marketing problem

Question 9

What is secondary research

Answer 9

Gathering information that has been collected and published by others

Question 10

What is primary research

Answer 10

Raw & unanalyzed, current information collected by a researcher for a specific purpose, data businesses gather themselves

Question 11

The difference between qualitative and quantitative research

Answer 11

Qualitative → people’s reactions, responses, or feelings towards a given subject or problem. Language-based, emotional.

Quantitative → surveying a representative sample of a target market population. Numbers-based, measurable.

Question 12

What is a open-ended question, a closed-ended question, and test market survey

Answer 12

Closed-ended questions: provided responses, are easy to answer and to score, usually multiple choice (Not much interpreted)

Open-ended questions: require the respondent to develop their own answers, difficult to analyze and score (Can reveal to much)

Want to ask a Quantitative question better.

Test market survey: A method of testing a new marketing campaign, product, or service in a limited release before introducing it to your wider market