FME FINAL EXAM STUDY GUIDE
Survey Construction and Typical Survey errors - Answers - Surveys are the primary
quantitative market research. Large Scale collection of data. Generally 100 or more
respondents. Can be administered verbally or electronically to the TARGET MARKET.
Mainly close ended questions. Purpose is to test tentative conclusions drawn from
qualitative research.
Typical errors are: Failure to match scale to question, double barreled question(asks 2
questions with 1 answer at the same time), and a leading question that influences the
response.
Revenue Projection Formula - Answers - Customers willing to purchase x purchases
per year x units per purchase x price per unit
Rule of Thumb #1 - Answers - On a 5-point scale, assume Only 80% of those
answering "definitely/totally likely" (5 on the 5-point scale) will actually buy,
Only 30% of those answering "probably/very likely"(4 on the 5-point scale) will actually
buy
The other three groups (1 to 3 on the 5-point scale)are ignored, completely
Why? Customers overstate their interest!
Rule of Thumb #2 - Answers - Assume that respondents will purchase only half (50%)as
frequently as they say they will...
Why? Customers overstate their interest!
Proforma Income Statement - Answers -
What is a supply chain? - Answers - All the companies involved inhelping you provide
your product or service to your customers.
Upstream: Orders, information, payments and returns
Downstream: products, services and information
Factors to consider when selecting a supplier - Answers - costs, minimum order
quantity, quality, returns, samples, packaging, location, time of shipping, method of
shipping, shipping costs, customs, credibility, socially responsible, customer service,
payment terms, payment methods
Supplier negotiation - Answers - to create your ultimate contract, you need to account
for unit price, payment terms, warranty, lead time, exceptions for contract terms and
product quality.
Survey Construction and Typical Survey errors - Answers - Surveys are the primary
quantitative market research. Large Scale collection of data. Generally 100 or more
respondents. Can be administered verbally or electronically to the TARGET MARKET.
Mainly close ended questions. Purpose is to test tentative conclusions drawn from
qualitative research.
Typical errors are: Failure to match scale to question, double barreled question(asks 2
questions with 1 answer at the same time), and a leading question that influences the
response.
Revenue Projection Formula - Answers - Customers willing to purchase x purchases
per year x units per purchase x price per unit
Rule of Thumb #1 - Answers - On a 5-point scale, assume Only 80% of those
answering "definitely/totally likely" (5 on the 5-point scale) will actually buy,
Only 30% of those answering "probably/very likely"(4 on the 5-point scale) will actually
buy
The other three groups (1 to 3 on the 5-point scale)are ignored, completely
Why? Customers overstate their interest!
Rule of Thumb #2 - Answers - Assume that respondents will purchase only half (50%)as
frequently as they say they will...
Why? Customers overstate their interest!
Proforma Income Statement - Answers -
What is a supply chain? - Answers - All the companies involved inhelping you provide
your product or service to your customers.
Upstream: Orders, information, payments and returns
Downstream: products, services and information
Factors to consider when selecting a supplier - Answers - costs, minimum order
quantity, quality, returns, samples, packaging, location, time of shipping, method of
shipping, shipping costs, customs, credibility, socially responsible, customer service,
payment terms, payment methods
Supplier negotiation - Answers - to create your ultimate contract, you need to account
for unit price, payment terms, warranty, lead time, exceptions for contract terms and
product quality.
