Chap 04 Test Bank

Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She evaluates several potential sites by assessing traffic patterns, neighborhood conditions, and the locations of competitors. Annie is engaging in ________. A) focus groups B) Internet - based surveys C) observational research D) experimental research E) personal interviews 1) 2) A(n) ________ is best suited for exploratory research. A) mail survey B) online survey C) questionnaire D) observation E) focus group 2) 3) Which of the following is a disadvantage of secondary data? A) It can be obtained at a lower cost than primary data. B) It is only available through Internet search engines. C) It must be purchased from commercial online databases. D) It is collected for another purpose. E) It can be obtained quickly. 3) 4) The initial function of a marketing information system is ________. A) analyzing the results of marketing research studies B) generating insights from market consumption patterns C) hiring research firms to conduct market research D) assessing the information needs of a company E) evaluating information from internal and external sources 4) 5) At PepsiCo, marketing research departments have evolved from providing data to ________. A) forming customer insights teams B) writing customized CRM software to suit the company's needs C) providing big data D) blogging with customers to understand current conditions E) developing algorithms to interpret the data 5) 6) ________ are flexible and allow for explanation of difficult questions as well as demonstrating products. A) Mail questionnaires B) Online questionnaires C) Individual interviews D) Telephone interviews E) E - mail interviews 6) 1 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

7) Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research. A) causal B) exploratory C) focus group D) ethnographic E) descriptive 7) 8) Erica Jenson has a limited budget to conduct market research. Which of the following research approaches would provide Erica with the most cost - effective way to reach a large number of respondents in a short period? A) telephone surveys B) focus group interviews C) personal interviews D) mail surveys E) Internet - based surveys 8) 9) ________ outline(s) sources of existing data as well as specific research approaches, sampling plans, and measurement instruments. A) The research findings B) The main research objective C) The research plan D) The problem definition E) The data collection plan 9) 10) Experimental research is best suited for gathering ________ information. A) causal B) ethnographic C) descriptive D) exploratory E) interactive 10) 11) Sample size and location have little impact on costs for ________. A) personal interviews B) Internet - based surveys C) telephone surveys D) focus group interviews E) mail surveys 11) 12) Which of the following is true of focus group discussions? A) Consumers' facial expressions are hidden. B) Results can be easily generalized to an entire population. C) They usually employ large samples. D) The quantitative data can be evaluated quickly and economically. E) Consumers are not always honest and open about their opinions. 12) 2 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

19) Proctor and Gamble (P&G) long ago mastered "Living It" which is more scientifically labelled as ________. A) digital data gathering B) full time market research C) consumer immersion research D) empathetic data collection E) individual big data collection 19) 20) Data collection, processing, and analysis are undertaken during which stage of the marketing research process? A) selecting a research approach B) selecting a sampling method C) implementing the research plan D) drawing conclusions from the findings E) interpreting the findings 20) 21) ________ is the final step in the marketing research process. A) Engaging in secondary research B) Developing the research plan C) Determining a research approach D) Collecting and analyzing the data E) Interpreting and reporting the findings 21) 22) Simply collecting and storing huge amounts of data is of limited value. As stated by one data expert, "________ data trumps ________ data." A) wrong, no B) right, big C) inaccurate, no D) big, right E) big, small 22) 23) Which of the following is true of a good marketing information system? A) It typically uses only external sources of data in marketing research. B) It eliminates the time - consuming task of assessing the information needs of a firm. C) It develops a way of offering information about future plans of action that might not be very feasible or cost - effective. D) It focuses solely on maximizing the amount of data generated irrespective of relevance. E) It helps decision makers use the information to generate customer and market insights. 23) 24) Which of the following is an advantage of primary data? A) They can be obtained more quickly than secondary data. B) They are more reflective of past problems. C) They are more relevant than secondary data. D) They are less expensive to obtain than secondary data. E) They can be accessed from existing information. 24) 4 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

25) Which of the following is true of survey research? A) It is the most suitable method for establishing causal relationships. B) It is inflexible and cannot be used in many different situations. C) It is the best method to use when people are unwilling to answer questions. D) It is the most widely used method for gathering primary data. E) It is not suitable for collecting data for descriptive research. 25) 26) Which of the following statements regarding marketing intelligence is true? A) All marketing intelligence inputs are available at no cost to any potential users. B) The advantage of using competitive intelligence is negligible as it is based only on internal sources of data. C) Marketing intelligence typically involves sensitive and confidential information kept out of the public domain. D) Marketing intelligence efforts are more focused on gaining insights into a firm's consumers rather than its competitors. E) Marketing intelligence is the systematic collection, monitoring, and analysis of publicly available information. 26) 27) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) Test marketing B) Integrated marketing C) Exclusive distribution D) Commercialization E) Marketing research 27) 28) ________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behaviour. A) Archival research B) Observational research C) Survey research D) Experimental research E) Causal research 28) 29) What are the two main types of research instruments used to collect primary data? A) questionnaires and mechanical devices B) observation scales and personal interviews C) focus groups and questionnaires D) personal interviews and online focus groups E) focus groups and mechanical devices 29) 30) ________ is often the most difficult but most critical step in the research process. A) Interpreting the findings B) Gathering secondary data C) Collecting and analyzing the data D) Defining the problem and research objectives E) Developing the research plan 30) 5 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

37) Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case? A) descriptive followed by causal B) causal followed by descriptive C) descriptive followed by exploratory D) exploratory followed by descriptive E) exploratory followed by causal 37) 38) Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose? A) research on demographics of its existing customers B) sales data from exclusive Hammond retailers C) internal survey on employee performance D) archival data on company performance E) competitive marketing intelligence 38) 39) Although internal databases can be accessed more quickly and cheaply than other information sources, one of the challenges of internal databases is ________. A) maintaining the current database B) decision making about data collection software C) the lack of sophisticated equipment and technologies D) putting the customer at the centre of all decisions E) the inability to access 39) 40) Which of the following is a structured method of online research where marketers require direct responses from customers? A) online surveys B) social media tracking C) online behavioural targeting D) blog analysis E) online listening 40) 41) Which of the following is true of question formats in questionnaires? A) Closed - ended questions are difficult to evaluate when compared to open - end questions. B) Open - ended questions are useful in exploratory research to find out what people think. C) Open - ended questions allow respondents to choose among the best answer options available. D) A scale question is an example of an open - ended question. E) Closed - ended questions allow respondents to answer in their own words. 41) 42) Which of the following is not considered a source of competitive marketing intelligence? A) competitors' internal databases B) online research C) benchmarking competitors' products D) observing consumers firsthand E) monitoring social media 42) 7 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

43) Which of the following is true about customer relationship management (CRM)? A) It excludes data on existing customers to focus on potential customers. B) It minimizes the need for costly marketing analytics. C) It consists of sophisticated software and analytical tools. D) It relies on the use of exploratory and causal research. E) It eliminates the need for primary research. 43) 44) Susan Hart, the manager of a children's boutique, collects data from her monthly records of sales, costs, and cash flow. In this case, Susan is making use of ________ databases. A) secondary B) internal C) dialog D) external E) historical 44) 45) Which of the following demonstrates the real value of a company's marketing research and information system? A) the customer insights it provides B) the tools it uses to gather information C) the variety of contact methods it uses D) the type of sampling plan it follows E) the amount of data it generates 45) 46) A major advantage of a mail survey is that it ________. A) provides significant flexibility B) eliminates interviewer bias C) generates high response rates D) can be completed quickly E) offers strong sample control 46) 47) Which of the following is a quantitative approach to research? A) marketing surveys B) online focus groups C) in - depth interviews D) ethnographic research E) observational research 47) 48) ________ is best suited for descriptive research. A) A focus group B) An online discussion C) Ethnographic research D) A survey E) Experimental research 48) 8 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

55) A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ________ research. A) ethnographic B) archival C) online D) quantitative E) experimental 55) 56) Harmon, a nationwide department store, uses checkout scanners to record shoppers' purchases. Which term best describes Harmon's checkout scanners? A) CRM system B) nonprobability sampling tool C) mechanical instrument D) touch point device E) neuromarketing tool 56) 57) A market researcher wants to find the cause - and - effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavouring, and the other has artificial flavours. This is an example of ________. A) experimental research B) ethnographic research C) online research D) exploratory research E) descriptive research 57) 58) The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first? A) define the problem and objectives B) select a research agency to collect data C) determine a research approach D) conduct exploratory and descriptive research E) develop a research plan 58) 59) The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses. A) descriptive B) experimental C) causal D) exploratory E) corrective 59) 10 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

60) Information collected from commercial online databases or through Internet search engines are examples of ________ data. A) ethnographic B) primary C) first - hand D) experimental E) secondary 60) TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 61) The information collected for an internal database comes only from the marketing department and the customer service department. 61) 62) Primary data can usually be obtained more quickly and at a lower cost than secondary data. 62) 63) Marketing Information Systems (MIS) do not collect and use data from the operations department (production, shipments) as they are not connected to the customer and therefore are not marketing related. 63) 64) Open - ended questions are especially useful in exploratory research, when the researcher is trying to find out what people think but not measuring how many people think in a certain way. 64) 65) Open - ended questions provide answers that are easier to interpret and tabulate than closed - ended questions. 65) 66) Big data refers to the huge data sets generated by sophisticated information generation, collection, storage, and analysis technologies. 66) 67) Observational research is the most widely used method of primary data collection. 67) 68) CRM analysts use big data and marketing analytics to unearth patterns in customer data. 68) 69) Ideally, a sample should be representative so that a researcher can make accurate estimates of the thoughts and behaviours of the larger population. 69) 70) Using nonprobability samples, each population member has a known chance of being included in the sample, and researchers can calculate confidence limits for sampling error. 70) 71) Researchers should use simple, direct, and unbiased wording of questions for research. 71) 72) The questionnaire is the most common research instrument. 72) 73) Exploratory research would be used to gather data about the market potential for a new product. 73) 74) The major advantage of survey research is its flexibility. 74) 11 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

90) Discuss several ways in which small organizations can conduct marketing research at little or no expense. 91) Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Describe some common sources of each. 92) Compare and contrast closed - ended questions and open - ended questions for gathering data. 93) How has the marketing research industry responded to the intrusion and privacy issues concerning consumer data? 94) What is neuromarketing? How is neuromarketing used by marketers? 95) Describe the components of a marketing information system (MIS) and list its three main functions. 96) What is marketing analytics? Why has it become so central to gathering data about customers and performance? 97) Explain the steps involved in the marketing research process. 98) Differentiate between intranets and extranets. How are such systems beneficial to marketing managers? 99) Vincent Cosmetics decides to launch a cream with a claim that it makes skin "nine times smoother." The claim is based on a study of 30 respondents who used products of other brands as well. However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin. Describe the most ethical approach that Vincent Cosmetics should follow? Explain your reasoning behind this decision. 100) You successfully worked with classmates in a marketing course project where your team created a product that addresses an unmet need. Your professor gave your team a very good score and commented that the idea has 'real world merit.' As you approach graduation and consider career options, the allure of starting your own company is growing increasingly attractive. You speak to your former marketing team members and they want to join you as you consider developing your project idea. You do not know the viability of your product. Describe how you will proceed to build your marketing research initiative (defining the problem and objectives) using Exploratory, Descriptive and Causal research. 13 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 04_7CE 1) C 2) D 3) E 4) D 5) A 6) C 7) A 8) E 9) C 10) A 11) B 12) E 13) A 14) C 15) C 16) B 17) C 18) D 19) C 20) C 21) E 22) B 23) E 24) C 25) D 26) E 27) E 28) C 29) A 30) D 31) B 32) E 33) B 34) A 35) B 36) E 37) A 38) E 39) A 40) A 41) B 42) A 43) C 44) B 45) A 46) B 47) A 48) D 49) C 14 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 04_7CE 87) Several important factors must be considered. These include language translation, domestic laws associated with conducting marketing research that may differ from the domestic market. Other considerations are different societal norms and standards, levels of economic development, buying patterns that need to be understood before delving into the data collection. The availability and accessibility of accurate secondary data may also represent a challenge. 88) Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Respondents give more honest answers to more personal questions on a mail questionnaire, and there is no interviewer involved to potentially bias respondents' answers. Telephone interviewing helps gather information quickly and provides greater flexibility. Interviewers can explain difficult questions, as well as skip some questions or probe on others. Personal interviewing takes two forms: individual interviewing and group interviewing. Individual interviewing is flexible. Trained interviewers can guide interviews, show subjects actual products, and observe reactions and behaviour. Group interactions help bring out actual feelings and thoughts. Researchers can quickly and easily distribute Internet surveys to thousands of respondents simultaneously via e - mail or by posting them on selected online sites. Responses can be almost instantaneous, and researchers can tabulate, review, and share research data as the information arrives. 89) A company's internal database provides a good starting point to gather secondary data. However, the company can also tap into a wide assortment of external information sources. Companies can buy secondary data from outside suppliers. For example, Nielsen sells shopper insight data from a consumer panel of more than 250,000 households in 25 countries worldwide, with measures of trial and repeat purchasing, brand loyalty, and buyer demographics. Using commercial online databases, marketing researchers can conduct their own searches of secondary data sources. General database services such as Dialog, ProQuest, and LexisNexis put an incredible wealth of information at the keyboards of marketing decision makers. Beyond commercial websites offering information for a fee, almost every industry association, government agency, business publication, and news medium offers free information to those tenacious enough to find their websites. Internet search engines can also be a big help in locating relevant secondary information sources. 90) Small organizations can use the same marketing research processes used by larger firms, as well as many of the same methods, such as secondary data collection, observation, surveys, and experiments. There are many sources of free secondary data on the Web, and small firms also have access to special help collecting data from chambers of commerce, government agencies, and other organizations. Managers of small organizations can use observation to collect data. For example, they can monitor competitors' advertisements, evaluate their own customer mix, and regularly visit their competitors' places of business. Informal surveys with small convenience samples are another tool that smaller organizations can use. Finally, managers of smaller organizations can conduct simple experiments by altering one aspect of a marketing strategy and analyzing the results. As with larger firms, smaller organizations must conduct research systematically for the results to be valid and useful. 91) Internal databases are built upon records of consumer and market information data sources within the company network. For example, the accounting department provides records of sales, costs, and cash flows; operations reports on production - related issues; the sales force provides data on resellers, competitors, buyer behaviour, and the industry; and marketing department provides information on customer transactions, demographics, and buying behaviour. Internal data are cheaper sources that are easy to access. Marketing intelligence is a collection and analysis of publicly available data about consumers, competitors, and developments in the industry. It can come from quizzing employees, studying competitors' ads and annual reports, analyzing competitors' products, monitoring Internet buzz, and researching the Internet. In addition to internal data and marketing intelligence, marketers often need formal studies of specific situations. To address this need, they conduct marketing research to collect, analyze, and report secondary and primary data to better form decisions. 92) Closed - ended questions, which include all the possible answers, make it easier for respondents to choose among relevant answers. They are also easier for the researcher to interpret and tabulate. Open - ended questions, on the other hand, allow respondents to answer in their own words and do not limit their choices. Open - ended questions are more difficult to interpret and tabulate, but they are particularly useful in exploratory research. 16 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562

Answer Key Testname: CHAP 04_7CE 93) The marketing research industry is considering several options for responding to intrusion and privacy issues. One example is the Marketing Research Association's "Your Opinion Counts" and "Respondent Bill of Rights" initiatives to educate consumers about the benefits of marketing research and distinguish it from telephone selling and database building. The industry also has considered adopting broad standards, perhaps based on the International Chamber of Commerce's International Code of Marketing and Social Research Practice. This code outlines researchers' responsibilities to respondents and the general public. For example, it urges that researchers make their names and addresses available to participants and be open about the data they are collecting. 94) Neuromarketing involves measuring brain activity to learn how consumers feel and respond. Marketing scientists using MRI scans and EEG devices have learned that tracking brain electrical activity and blood flow can provide companies with insights into what turns consumers on and off regarding their brands and marketing. Companies ranging from PepsiCo and Disney to Google and Microsoft now hire neuromarketing research companies to help figure out what people are really thinking. Although neuromarketing techniques can measure consumer involvement and emotional responses second by second, such brain responses can be difficult to interpret. Thus, neuromarketing is usually used in combination with other research approaches to gain a more complete picture of what goes on inside consumers' heads. 95) A typical MIS consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. A well - designed information system begins and ends with users. There are three main components. First, it interacts with information users to assess information needs. Next, it develops needed information from internal company databases, marketing intelligence activities, and marketing research. Finally, it helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships. 96) Marketing analytics consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. Marketers apply marketing analytics to the large and complex sets of data they collect from Web, mobile, and social media tracking; customer transactions and engagements; and other big data sources. For example, Netflix maintains a bulging customer database and uses sophisticated marketing analytics to gain insights, which it then uses to fuel recommendations to subscribers, decide what programming to offer, and even develop its own exclusive content in the quest to serve its customers better. Marketing analytics is necessary to convert the wealth of data into information that is both usable and valuable for marketers. Gathering and sifting through the big data is essential for uncovering insights about customers and performance that are actionable. 97) The marketing research process involves four steps: defining the problem and research objectives, developing the plan, implementing the plan, and interpreting and reporting the findings. Managers must know what is wrong in order to define the problem. Research objectives may be reached through exploratory, descriptive, or causal research. Once researchers have defined the research problem and objectives, they must determine the exact information needed and develop a plan for gathering it efficiently. The research plan should be presented in a written proposal and must include the cost for the research. Once this is done, secondary and primary data is collected and compiled. Then, the data is interpreted to draw conclusions, and finally reported to management. 98) Information distribution involves entering information into databases and making it available in a timely, user - friendly way. Many firms use company intranet and internal CRM systems to facilitate this process. These systems provide ready access to research and intelligence information, customer contact information, reports, shared work documents, and more. In addition, companies are increasingly allowing key customers and value - network members to access account, product, and other data on demand through extranets. Suppliers, customers, resellers, and select other network members may access a company's extranet to update their accounts, arrange purchases, and check orders against inventories to improve customer service. 17 Downloaded by Kanashi Spring (kanashi.spring@gmail.com) lOMoARcPSD|12362562