CEA Market & Industry Analysis 4

Question 1

Which analytical tool segments a company's business units based on market growth rate and relative market share?

Accepted Answer

BCG Growth-Share Matrix

Answer

The BCG (Boston Consulting Group) Matrix plots business units as Stars, Cash Cows, Question Marks, or Dogs based on growth and share.

Question 2

Which demand forecasting method relies on polling industry experts iteratively until consensus is reached?

Accepted Answer

Delphi method

Answer

The Delphi method gathers structured expert opinions through multiple survey rounds with feedback until convergence, making it useful when historical data is limited.

Question 3

A firm operating in an industry with low barriers to entry and exit, even if there are only a few competitors, may still price at competitive levels due to:

Accepted Answer

Contestable market theory

Answer

Contestable market theory holds that the threat of potential entry disciplines incumbent firms to price near competitive levels even in concentrated markets.

Question 4

In value chain analysis, 'primary activities' include all of the following EXCEPT:

Accepted Answer

Human resource management

Answer

Human resource management is a support activity in Porter's value chain, not a primary activity, which include logistics, operations, marketing, sales, and service.

Question 5

The 'critical mass' concept in market analysis typically refers to:

Accepted Answer

The threshold adoption rate needed to sustain a network effect

Answer

Critical mass in market analysis refers to the minimum number of users or adopters required for a network effect to become self-sustaining and drive further adoption.

(CEA) Certified Economic Analyst Practice Test

(CEA) Certified Economic Analyst Practice Test

CEA Market & Industry Analysis 4