Test Your Knowledge: Size of Customer

Into what size segment are the following customers likely to fall: Very Large, Large, Medium, or Small?

Question 1: In 1989, the largest accounting firms were seeking the business of small business accounts. In response, the regional and local accounting firms were arguing to their small business clients that they offered better quality and more personal attention.

Are small businesses Very Large, Large, Medium or Small customers?

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Question 2: In l990, the major video chains were targeting the San Francisco Bay Area for expansion.

Is the San Francisco Bay Area a Very Large, Large, Medium or Small customer?

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Question 3: In l991,Compaq Computer was facing a distribution problem. The company had been distributing its products through dealers. Increasingly, though, corporations sought to buy directly from the company. Mass merchandisers were making their presence felt in the personal computer market. Computer wholesalers were also growing their share of the total business.

Are corporations Very Large, Large, Medium or Small customers? Would dealers be Very Large, Large, Medium or Small customers?

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Question 4: In 1991, American Express was buying smaller travel service companies to expand its corporate travel business. Most large corporations had been shifting their accounts from smaller travel agencies to a handful of larger agencies over the previous few years. The large corporations saw these larger agencies as having more competitive systems and programs.

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Question 5: Camcorder makers in 1991 were pushing to find new users. Parents were 57% of the market, young couples 12%, singles 10%, and retired older couples 6%.

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Question 6: Adstar at one time designed disks and tape drives for the exclusive use in IBM computers. By 1992, the company was trying to sell its drives to other computer manufacturers in the marketplace, even those that competed with IBM. IBM would be a Very Large, Large, Medium or Small customer? Other computer manufacturers would be Very Large, Large, Medium or Small customers?

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Question 7: By the mid 1990s, most apparel makers were fighting over positions on department stores' most favored vendor list. Most of these apparel makers had decided that they preferred to do business with a few big department store chains rather than chase a shrinking number of independent specialty stores as their customers.

Department store chains would be Very Large, Large, Medium or Small customers? Independent specialty stores would be Very Large, Large, Medium or Small customers?

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Question 8: In the mid 1990s, country western music labels were having trouble getting prime shelf space in music stores. The record stores stocked mainly rock and rap music for customers under 24. These customers bought 41% of all the pre-recorded music. As a result, Wal-Mart and Target began playing a role in breaking in new record acts by putting country western labels in prime locations in their stores.

For the country western music market, discounters would be Very Large, Large, Medium or Small customers? Traditional record stores would be Very Large, Large, Medium or Small customers?

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Question 9: For years, Hallmark relied on its 10,000 gift and card shops to move its merchandise. But in the l980s, the company began shifting away from card shops towards discounters, supermarkets, and other places where customers could purchase cards while doing other shopping.

Discounters and supermarkets would be Very Large, Large, Medium or Small customers? Card and gift shops would be Very Large, Large, Medium or Small customers?

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Question 10: DHL Worldwide Express had package delivery services in more than 160 countries. Its strategy was to pursue the business of US companies that had global scope. DHL argued that "we should be their one-source supplier."

US companies with a global scope would be Very Large, Large, Medium or Small customers?

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