CBS Market Analysis & Research 2 — Questions and Answers
Question 1: A company wants to estimate the total revenue opportunity if it captured 100% of its target market. Which metric does this represent?
- Serviceable Addressable Market (SAM)
- Total Addressable Market (TAM) (Correct answer)
- Serviceable Obtainable Market (SOM)
- Market Penetration Rate
Correct answer: Total Addressable Market (TAM)
TAM (Total Addressable Market) represents the full revenue opportunity if a company achieved 100% market share with no competition.
Question 2: Which competitive analysis framework evaluates a company's position by examining Political, Economic, Social, Technological, Environmental, and Legal factors?
- Porter's Five Forces
- SWOT Analysis
- PESTEL Analysis (Correct answer)
- BCG Matrix
Correct answer: PESTEL Analysis
PESTEL Analysis is a macro-environmental framework assessing six external factors that can affect a business.
Question 3: A market research firm collects data through in-depth interviews with 12 industry experts. This is an example of:
- Quantitative primary research
- Qualitative primary research (Correct answer)
- Quantitative secondary research
- Qualitative secondary research
Correct answer: Qualitative primary research
In-depth interviews are a qualitative primary research method, generating non-numerical insights collected firsthand.
Question 4: When plotting a market map, the 'chasm' in Geoffrey Moore's Technology Adoption Lifecycle refers to the gap between:
- Innovators and Early Adopters
- Early Adopters and Early Majority (Correct answer)
- Early Majority and Late Majority
- Late Majority and Laggards
Correct answer: Early Adopters and Early Majority
Moore's 'chasm' is the difficult transition from Early Adopters (visionaries) to the Early Majority (pragmatists).
Question 5: A business analyst calculates that the top four firms in an industry hold 65% of total market share. This measure is called:
- Herfindahl-Hirschman Index
- Four-Firm Concentration Ratio (CR4) (Correct answer)
- Market Saturation Index
- Gini Coefficient
Correct answer: Four-Firm Concentration Ratio (CR4)
The CR4 (Four-Firm Concentration Ratio) sums the market shares of the four largest firms to indicate industry concentration.
Question 6: Which segmentation approach divides a market based on consumers' lifestyle, values, and personality traits?
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation (Correct answer)
- Behavioral segmentation
Correct answer: Psychographic segmentation
Psychographic segmentation groups consumers by psychological characteristics including lifestyle, values, attitudes, and personality.
Question 7: A retailer tracks that customers who buy running shoes also frequently purchase protein supplements. This insight is derived from:
- Cohort analysis
- Market basket analysis (Correct answer)
- Regression analysis
- Cluster analysis
Correct answer: Market basket analysis
Market basket analysis (association rule mining) identifies products frequently purchased together to uncover cross-sell opportunities.
CBS Market Analysis & Research 2
A company wants to estimate the total revenue opportunity if it captured 100% of its target market.
Which metric does this represent?