Small Business An Entrepreneur’s Business Plan 9th Edition – Test Bank

Small Business An Entrepreneur’s Business Plan 9th Edition – Test Bank

Chapter 5—Reading and Beating the Competition

TRUE/FALSE

1. The market-based economy has changed the way business has to view competition.

ANS: F PTS: 1 REF: p. 121

2. Once you have established your market niche, it is not important to change your product.

ANS: F PTS: 1 REF: p. 121

3. The only competition that you should be concerned with are your direct competitors.

ANS: F PTS: 1 REF: p. 122

4. A competitor profile includes data to track competitors and their behavior.

ANS: T PTS: 1 REF: p. 123

5. Competitive touchpoint analysis is primarily to help stop shoplifting.

ANS: F PTS: 1 REF: p. 123

6. One potential element of a customer profile is an investigation into their patents and trademarks.

ANS: T PTS: 1 REF: p. 124

7.   The key to evaluating customer touchpoints is working with a group of your target customers.

ANS: T PTS: 1 REF: p. 125

8. Competitive intelligence is generally a job for a single person within an organization.

ANS: F PTS: 1 REF: p. 126

9. When writing your Business Plan it is important to include all your customer touchpoints.

ANS: F PTS: 1 REF: p. 125

10. The objective of competitive intelligence is to eliminate your competitors.

ANS: F PTS: 1 REF: p. 126

11. Suppliers are a good source for gathering information about competitors.

ANS: T PTS: 1 REF: p. 129

   12.    Competitive intelligence is only used for long-term decisions.

ANS: F PTS: 1 REF: p. 129

13. Detailed, competitive information on the Internet comes at a very high cost.

ANS: F PTS: 1 REF: p. 130

14. Trade shows are generally a good source of market data.

ANS: T PTS: 1 REF: p. 130

15.It is easy to be a leader in all three value disciplines.

ANS: F PTS: 1 REF: p. 134