Estimating the Cost of Entering a Market and Focusing on a Specific

question 148

Multiple Choice

Estimating the cost of entering a market and focusing on a specific target segment is important because

• A) cost estimates are crucial to estimating sales potential accurately.
• B) higher costs will keep other potential competitors from entering that particular segment.
• C) customers are more likely to be attracted to marketers that invest heavily in the target segment.
• D) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
• E) higher cost generally ensures long-term success.

Understand the purpose and process of hypothesis testing in the context of entrepreneurial experimentation.

Recognize the importance of matching outcomes to hypotheses, business problems, and opportunities.

Identify the steps of the scientific process in entrepreneurship.

Learn the significance of adapting or persevering in response to experimental outcomes.

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Definitions:

Natural Selection

The evolutionary process by which organisms better adapted to their environment tend to survive and produce more offspring.

Charles Darwin

A 19th-century naturalist best known for his contributions to the science of evolution and the theory of natural selection.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Intelligence

The capacity for logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving.