Scenario 5

question 122

Multiple Choice

Scenario 5.2 Use the following to answer the question.
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Blue Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing.
Refer to Scenario 5.2. Colin decided to apply some of the things he had learned in his marketing research class to his business. The first thing he should do is to ___________ which will help him ______

• A) develop a questionnaire; collect the necessary data.
• B) identify a sample frame; contact the appropriate respondents.
• C) define the problem to be researched; determine his data needs.
• D) conduct store exit interviews; give him an idea of the problem.
• E) collect secondary data; contact the appropriate respondents.

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Definitions:

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry or market.

Regulatory Standards

Specifications and guidelines established by authorities designed to ensure products, services, and actions meet required safety, quality, and performance criteria.

Competitive Price-searcher Market

A market structure where firms set their own prices because products are differentiated, giving them some degree of pricing power.

Average Total Cost

The cost per unit produced, found by taking the total production costs and dividing it by the quantity of items produced.