Florida International University

MAR 3023

Chapter 3-Market Insight

 True /Questions

1)An initial broad approach to defining a market ensures against marketing myopia.  

1. Marketing myopia is the risk of defining a market too narrowly at the onset because of biases or insufficient data.

2. Several product lines make up each product class (or sub-category).

3. A product class is a subset of the product line.

4. A product item is uniquely identified, like having a specific size and color.  

5. In developed countries, a recent trend is exurban growth, which is a return to rural communities.  

6. According to the text, population shifts often follow the sun.  

7. Life cycles are the most common means for describing, over time, the evolution of markets and products, product classes, product forms, product lines, and product items.

8. The five stages of the classic product life cycle are innovation, early growth, late growth, maturity, and decline.

9. Product form life cycles last the longest, and, in general, the firm has little impact on these life cycles.

10. Maturity is the stage of the product life cycle in which sales volume is initially low.

11. The stage of the life cycle in which sales volume averages GNP growth year to year is maturity.  

12. Introduction is the stage of the product life cycle in which firms typically offer a single product design, sometimes with erratic quality, and prices that may not cover total costs.

13. The stage of the life cycle in which strong competitors initiate tough actions to maintain their growth rates as they force weaker entrants to withdraw is decline.

14. Laptop computers and personal digital assistants are now in the late-growth stage of the product life cycle.

15. Economists use the term monopoly to describe concentrated markets.

16. Profit curves do not mirror sales curves.  

17. A firm’s current direct competitors offer current customers similar benefits with similar products, technology, and/or business models.

18. The most severe supplier threat is backward integration.

19. The most severe threat from buyers is forward integration.

Essay Questions