Chapter 4 Market Research 1) A ________ is a process that determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to users. A) primary data collection system B) secondary data collection system C) competitive intelligence system D) marketing research project E) marketing information system Answer: E 2) Which of the following lists the three important components of a basic marketing information system (MIS)? A) competitive intelligence, internal records, and all sales personnel B) existing data, market researchers to gather more data, and the technology to convert those data into information C) managers at all levels, corporate culture, and internal data D) data, computer hardware and software, and output for marketing decision makers E) information resources, technical experts, and marketing managers Answer: D 3) Data such as which customers buy which products, which items the company has in stock, and when the company ships items to its customer are all examples of ________. A) marketing intelligence B) acquired data points C) external primary data D) marketing research E) internal company data Answer: E 4) A(n) ________ is an internal corporate communication network that uses Internet technology to link company departments, employees, and databases. A) social network B) affiliate program C) horizontal user network D) intranet E) marketing decision support system Answer: D 5) Which of the following is NOT a major data source for a marketing information system (MIS)? A) internal company data B) market intelligence C) market research D) acquired databases E) modeling software Answer: E 6) Managers of a discount retailer would use which of the following to access up-to-the-minute sales information obtained from the store's cash registers around the country in order to detect problems with products, promotions, and even the firm's distribution system? A) a company intranet B) secondary data C) a prediction market D) market intelligence E) a convenience sample Answer: A 7) Which of the following is the method marketers use to collect available information about what is going on in the world that is relevant to their business? A) a marketing decision support system B) marketing management C) longitudinal research D) a market intelligence system E) data mining Answer: D 8) Which of the following is NOT considered a source of market intelligence? A) distributors B) industry trade publications C) customers D) causal research E) activities of competitors Answer: D 9) ________ is the process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness. A) Market research B) Marketing management C) Competitive intelligence D) Market intelligence E) Internal marketing Answer: A 10) Which of the following is general information collected by specialized firms on a regular basis and then sold to other firms? A) syndicated research B) custom research C) competitive research D) perceptual tracking E) marketing decision support research Answer: A 11) Nielsen compiles ratings of television shows and then sells the information to other firms. Nielsen conducts ________. A) custom research B) case study research C) syndicated research D) exploratory research E) ethnographic research Answer: C 12) ________ is research a single firm conducts to provide answers to specific questions. A) Syndicated research B) Custom research C) Consumer data D) Perceptual tracking E) Internal data Answer: B 13) A marketing decision support system (MDSS) is a ________. A) basic system used by companies that do not have the resources to develop a marketing information system (MIS) B) popular syndicated research report purchased by most major media companies C) sophisticated information system that allows marketing managers to use statistical and modeling software tools D) type of custom research report often called for in the marketing research process E) data warehouse used to support a marketing information system (MIS) Answer: C 14) A(n) ________ can use multidimensional scaling to create perceptual maps. A) intranet analysis B) marketing information system C) data warehouse D) marketing decision support system E) competitive intelligence system Answer: D 15) A marketing manager would most likely use which of the following to find out how many consumers stay with his brand and how many switch, enabling him to project market shares over time? A) modeling software B) syndicated research C) cross-sectional research D) exploratory research E) competitive intelligence Answer: A 16) Which of the following is a question that a marketing manager would use an MDSS rather than an MIS to answer? A) What were our company sales of each of our products during the past month? B) What are the best media for reaching a high percentage of heavy users of our product? C) What changes in sales are happening in our industry? D) If we change our media schedule by replacing a certain media buy with a new media buy, will we reach more users of our product? E) What are the demographic characteristics of consumers whose purchase patterns are changing the most? Answer: D 17) Which of the following is the process of physically deconstructing a competitor's product to determine how it is put together? A) reverse engineering B) ethnography C) cross-sectional research D) predictive engineering E) sampling Answer: A 18) A cosmetic company asked 293 women who were wearing their StayColor line of cosmetics to rub their cheeks against their shirts using "the pressure they use when caressing someone else's face." The company was conducting ________. A) syndicated research B) custom research C) case study research D) secondary research E) ethnography Answer: B 19) A company reports on consumers' perceptions of more than 1,700 performers for companies that are interested in using a performer in their advertising. This type of report is an example of ________. A) syndicated research B) custom research C) case study research D) exploratory research E) primary research Answer: A 20) SwimFit produces gear for swimmers, including suits, goggles, swim caps, and ear plugs. SwimFit wants to improve the quality of its goggles to match or surpass the quality of the product category leader. Which of the following is SwimFit most likely to use to find out more about how its competitor's product is made? A) syndicated research B) customer insights C) predictive technology D) mystery shoppers E) reverse engineering Answer: E 21) An intranet is an external corporate communication network that uses Internet technology to facilitate interaction among company employees, customers, and potential customers. Answer: False 22) The marketing intelligence system uses corporate espionage to gather information about competitors. Answer: False 23) Companies should continuously collect marketing intelligence data. Answer: True 24) Even if you opt out of receiving emailed marketing messages from a company, the company is within its legal rights to continue sending you its promotional emails. Answer: False 25) Decision makers within a company would be more likely to use an MIS than an MDSS to forecast the results of maintaining the company's prices while competitors reduce their prices. Answer: False 26) Discuss the components and functions of a marketing information system (MIS). Answer: A typical MIS includes three important components: data, computer hardware and software, and output for marketing decision makers. The different types of data that feed into an MIS are internal company data, marketing intelligence, marketing research, and acquired databases. This data is processed by the MIS software, and then MIS analysts use the output to generate reports for various decision makers. 27) The Chair Trade is an independent furniture store that specializes in selling Amish-style furniture and household items. Until the first of the year, its overall sales revenue was slowly increasing. Since the first of the year, however, sales of small items increased while sales of furniture decreased, leading to declining sales revenue. How could the owner of the store rely on market intelligence to understand the change in consumer buying behavior? Should the owner rely solely on market intelligence? Why or why not? Answer: A market intelligence system is a method by which marketers get information about everyday happenings in the marketing environment relevant to their business. The owner of the store could compile observations about the marketplace, read industry trade publications, review competitors' websites, and even hire "mystery shoppers" to gather information on the customer experience. However, market intelligence is just the beginning. An effective MIS must include procedures to ensure that the intelligence data are translated and combined with internal data and other marketing information to create a useful report for owner. 28) How does a marketing decision support system (MDSS) differ from a marketing information system (MIS)? Why might a marketer want to use an MDSS in addition to an MIS? Answer: A marketing decision support system (MDSS) includes analysis and interactive software that allows marketing managers to access MIS data and conduct their own analyses. The statistical and modeling software of an MDSS allows marketers to examine complex relationships among factors in the marketplace and to generate answers to "what-if" questions about those relationships. MDSS is an enhancement to the MIS that makes it easy for marketing managers, rather than just MIS analysts, to access the MIS system and find answers to their questions. 29) What is a company's internal data? Give two examples of internal data. Answer: Internal company data refer to information that comes from within the company. This includes a firm's internal records of sales and information such as which customers buy which products in what quantities and at what intervals, what items are in stock, which items are back-ordered because they are out of stock, when items were shipped to the customer, and what items have been returned because they are defective. 30) Explain what advantages a company might see in using an intranet. Answer: An intranet is an internal corporate communication network that uses Internet technology to link company departments, employees, and databases. Having access to an intranet allows salespeople and sales managers in the field to access company records and to directly enter their reports into the system. Marketing managers in the home office can use an intranet to get daily or weekly sales data by brand or product line. 31) Compare and contrast syndicated research with custom research. Answer: Syndicated research is general information collected by firms on a regular basis to be sold to other firms. Custom research is information collected for a single firm to provide answers to that firm's specific questions. 32) Economic and demographic data compiled by the U.S. Census Bureau are available at little or no cost. In the terms of a marketing information system, what type of data is this? Answer: This is secondary research from an acquired database. 33) Raw, unorganized facts that need to be processed are called ________. A) information B) samples C) data D) insights E) research Answer: C 34) Interpreted data is ________. A) primary data B) secondary data C) exploratory research D) descriptive research E) information Answer: E 35) ________ refers to the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain customers. A) Market research B) Syndicated research C) Exploratory research D) Customer insights E) Predictive technology Answer: D 36) Which of the following best explains the difference between data and information? A) Information needs to be processed to be useful, but data is useful without being processed. B) Data is created from the transformation of information. C) Data is more structured and organized than information. D) Information is more structured and organized than data. E) Data is interpreted information. Answer: D 37) Data are raw, unorganized facts. Answer: True 38) Customer insights experts work to understand how customers interact with each other. Answer: False 39) The role of customer insights manager is typically a support role across a company's strategic business units (SBUs). Answer: True 40) In a company that operates in "silos," employees in customer service would be likely to have regular communication with employees in marketing. Answer: False 41) Describe the function of customer insights. Answer: Customer insights refers to the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain its customers. A customer insights manager sifts through all of the available information about how customers interact with the organization in order to support market planning decisions. The insights manager incorporates information from many different sources to create a more complete image of customers. Charged with integrating information, the insights manager has a supporting role across departments and SBUs. 42) What is the difference between data and information? Answer: Data, which are raw and unorganized facts, become information when they are organized, structured, and presented in a way that becomes useful for decision making. 43) Why might a company complain of having too much data? Answer: Data are raw and unorganized facts that can be overwhelming if no one knows what they all mean. A company might complain of having too much data if no one in the organization is able to structure and organize the data so that they can become information that is useful for decision making. 44) Which of the following is a true statement about the steps in the market research process? A) The research design should be determined before the problem is defined. B) The last step is to analyze and interpret the data. C) The first step is selecting a method of data collection. D) The first step is defining the research problem. E) The data must be collected before the sample can be designed. Answer: D 45) The first step in the market research process is to ________. A) determine how data will be collected B) select samples C) clearly understand the information needed by managers D) set the mission statement for the research E) determine a research design Answer: C 46) Ideally, market research should be ________. A) focused on primary data B) focused on secondary data C) done once a year D) done once every two years E) done in an ongoing process Answer: E 47) The market research process step of defining the research problem has three components: specifying the research objectives, identifying the consumer population of interest, and ________. A) placing the problem in an environmental context B) determining a budget for the research process C) selecting managers responsible for analyzing the data D) determining whether primary data will be needed E) deciding whether to hire a marketing research agency or to conduct the research in-house Answer: A 48) Which component of the market research process determines the consumer population that a company will study? A) the research design B) the sampling method C) the research objective D) the collection method E) the sampling design Answer: C 49) The second step of the marketing research process is to ________. A) define the problem B) select the primary data collection method C) determine the sampling method D) calculate the budget E) determine the research design Answer: E 50) Which of the following specifies exactly what information marketers will collect and what type of study they will do? A) the research objective B) the environmental context C) the sampling method D) the data collection method E) the research design Answer: E 51) Data that have been collected for some other purpose than to answer the question at hand are called ________. A) primary data B) secondary data C) mined data D) experimental data E) ethnographic data Answer: B 52) Which of the following questions should marketers first answer when they are determining their research design? A) What kind of sampling method should we use? B) What type of focus group best fits our needs? C) Do we need quantitative or qualitative data? D) Does the information we need already exist? E) How should we collect the data we need? Answer: D 53) LexisNexis and Experian Simmons are two companies that provide ________. A) primary data B) secondary data C) reality mining data D) causal research designs E) questionnaire designs Answer: B 54) Which of the following is true of the U.S. Census Bureau data? A) It can be used to identify heavy users of specific products. B) It includes information about the use of over 8,000 brands. C) The full data collection process occurs only every 10 years. D) The data is only available to paying subscribers. E) It can be used to search for information from major media outlets. Answer: C 55) Which of the following is information gathered directly from respondents in order to specifically address a question at hand? A) ethnographic observations B) experimental hypotheses C) primary data D) secondary data E) internal data Answer: C 56) Marketers would be most likely to use ________ to come up with ideas for new strategies and opportunities or to get a better understanding of a problem they are currently experiencing with a product. A) experimental research B) experiential research C) exploratory research D) causal research E) secondary research Answer: C 57) Which of the following is most likely to involve in-depth surveying or observation of a few consumers who fit the profile of the "typical" customer? A) data mining B) syndicated research C) exploratory research D) causal research E) descriptive research Answer: C 58) Which type of research generates nonnumeric results that provide detailed verbal or visual information about consumers' attitude? A) data mining B) qualitative research C) quantitative research D) causal research E) descriptive research Answer: B 59) A company utilized ________ when it asked consumers to indicate how they feel about panty hose. A) exploratory research B) causal research C) case study research D) ethnography E) descriptive research Answer: A 60) Which of the following is true of focus groups? A) They are typically conducted in mall settings. B) They are a type of descriptive research. C) They are a type of one-on-one interview. D) They are used to gather exploratory data. E) They do not use a discussion leader. Answer: D 61) Which of the following would most likely be used in a focus group? A) an fMRI machine to better understand why consumers make the decisions they do B) a one-way mirror that allows a client to observe the group C) a longitudinal design that tracks the responses of members of the group over time D) an experiment that attempts to rule out some explanations for consumer decisions E) a cross-sectional design that collects information from a large number of respondents Answer: B 62) A(n) ________ is a comprehensive examination of a particular firm or organization. A) focus group B) case study C) longitudinal study D) expert panel E) ethnographic study Answer: B 63) Which of the following methods of gathering exploratory data was derived from anthropology? A) focus groups B) one-on-one interviews C) case studies D) longitudinal studies E) ethnography Answer: E 64) Using ________, some marketing researchers participate in real-life consumer activities to get an understanding of how consumers actually use products. A) mechanical observation B) ethnography C) focus groups D) face-to-face interviews E) telephone interviews Answer: B 65) Focus groups have become one of the major market research tools for getting insight into consumer thoughts and feelings. However, a researcher relying solely on focus groups would likely be most concerned about which of the following? A) finding a convenience sample B) generalizing the results to the rest of the population C) administering the questions D) orchestrating cooperation among participants E) generating qualitative data Answer: B 66) Once a company has conducted exploratory research and reviewed the resulting data, its next step is most likely which of the following? A) conduct descriptive research B) calculate the representative sample size C) identify secondary data sources D) select a primary data collection method E) conduct qualitative research Answer: A 67) Descriptive research using a ________ design tracks the responses of the same sample of respondents over time. A) latitudinal B) cause-and-effect C) longitudinal D) cross-sectional E) hierarchical Answer: C 68) Marketers use ________ when they want to determine if a change in one thing is responsible for a change in something else. A) ethnography B) predictive techniques C) descriptive research D) causal research E) exploratory research Answer: D 69) Researchers design ________ to test predicted relationships among variables in a controlled environment. A) longitudinal assessments B) statistical models C) multidimensional scales D) experiments E) perceptual maps Answer: D 70) Your text describes the two main primary data collection methods as ________. A) descriptive and exploratory B) causal and descriptive C) survey and observation D) direct and indirect E) impersonal and personal Answer: C 71) Which of the following best explains the goal of neuromarketing? A) using subliminal messages to influence consumer decisions B) collecting data about responses to advertising and products by scanning consumers' brains C) observing and tracking consumer behavior on the Internet D) designing marketing research experiments using the Internet E) analyzing data from various sources to answer complex "what if" questions Answer: B 72) Of the following, which type of data collection method is likely to have the lowest response rate? A) mail questionnaire B) focus group C) online focus group D) case study E) face-to-face interview Answer: A 73) Which of the following is NOT a survey method for data collection? A) online questionnaires B) mail questionnaires C) mall intercepts D) observations E) face-to-face interviews Answer: D 74) Which of the following data collection methods is generally the least flexible? A) telephone interviewing B) face-to-face interviewing C) mail questionnaires D) online questionnaires E) mall intercepts Answer: C 75) Which data collection method for marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and other visual materials? A) face-to-face interviewing B) online questionnaires C) telephone interviewing D) ethnographic research E) mail questionnaires Answer: A 76) Which of the following is NOT an advantage of online questionnaires? A) speed B) low costs C) almost instantaneous results D) control over who respondents are E) no geographic restrictions Answer: D 77) Telemarketing has had the greatest impact on which of the following data collection methods? A) mail questionnaires B) online questionnaires C) mall intercepts D) telephone interviews E) face-to-face interviews Answer: D 78) A questionnaire that asks respondents whether they "strongly agree," "somewhat agree," "somewhat disagree," or "strongly disagree" is most likely a(n) ________. A) unstructured questionnaire B) online questionnaire C) mail questionnaire D) moderately structured questionnaire E) completely structured questionnaire Answer: E 79) ________ is a type of data collection in which the researcher simply records the consumer's behaviors. A) Mall intercept B) Observation C) Survey D) Focus group E) Neuromarketing Answer: B 80) Which of the following is a primary data collection method that relies on nonhuman devices to record consumer behavior? A) mechanical observation B) mall intercepts C) ethnography D) unobtrusive measurement E) case studies Answer: A 81) ________ is less expensive, faster, and more flexible than other methods of data collection. A) Mail surveying B) Telephone surveying C) The mall intercept D) The focus group E) Online data collection Answer: E 82) Disadvantages of ________ are that hackers can influence research and competitors can learn about marketing firms' plans. A) mail surveys B) telephone surveys C) mall intercepts D) focus groups E) online research Answer: E 83) ________ are a method for tracking what computer users do at various websites and which sites they visit. A) Projective techniques B) People meters C) Predictive techniques D) Cookies E) Search engines Answer: D 84) Predictive technology used by e-marketers relies on which of the following? A) sophisticated brain scans revealing consumers' reactions to advertisements and products B) collecting data through people meters C) collecting qualitative information through online questionnaires D) drawing generalizations from professional respondents E) tracking the shopping patterns of large numbers of people Answer: E 85) Bounce rate refers to ________. A) the percentage of visitors to a website who share information about the site through social media B) the number of viewers who click on a banner ad on a website C) the number of viewers who purchase a product through a website D) the percentage of visitors to a homepage who bounce to other pages within the same overall site E) the percentage of visitors to a homepage who leave the overall site rather than exploring other pages within the site Answer: E 86) ________ is the extent to which research actually measures what it was intended to measure. A) Flexibility B) Validity C) Responsiveness D) Reliability E) Representativeness Answer: B 87) ________ is the extent to which research measurement techniques are free of errors. A) Flexibility B) Validity C) Responsiveness D) Reliability E) Representativeness Answer: D 88) Children are difficult subjects for market researchers because they have poor recall and often do not understand the questions they are asked. This brings into question the ________ of the survey. A) flexibility B) sampling C) responsiveness D) reliability E) representativeness Answer: D 89) ________ is the process of selecting respondents for a survey. A) Sampling B) Prospecting C) Modeling D) Surveying E) Representation Answer: A 90) The two main types of samples used by researchers are ________. A) reliable and nonreliable B) probability and nonprobability C) valid and invalid D) static and dynamic E) longitudinal and latitudinal Answer: B 91) Which of the following is true about a probability sample? A) The observation method is used to select people who appear most willing to participate. B) Convenience is the key determinant of who participates. C) A researcher uses personal judgment to select participants. D) Every member of the population is included in the sample. E) Each member of the population has some known chance of being included in the sample. Answer: E 92) A ________ sample is a type of probability sample in which a researcher divides the population into segments that relate to the study's topic. A) systematic B) convenience C) stratified D) quota E) simple random Answer: C 93) What is a major drawback of probability sampling? A) It can be time consuming. B) The sample is proportionate to the population. C) The most difficult population from which to obtain information is chosen. D) Everyone has an equal chance of selection. E) Marketers must rely on the judgment of the researcher in respondent selection. Answer: A 94) Which of the following is true about a nonprobability sample? A) The hierarchical sampling method is used to select people who appear most willing to participate. B) Representativeness is the key determinant of who participates. C) A researcher uses personal judgment to select participants. D) Every member of the population is included in the sample. E) Each member of the population has some chance of being included in the sample. Answer: C 95) A survey questioned men and women to determine how each group felt about low-fat foods advertising on television. The results from male and female respondents were examined separately to see if their responses were different. The research results were analyzed using ________. A) ethnographic techniques B) single-source data methods C) cross-tabulation D) standard correlation calculations E) projective techniques Answer: C 96) In general, a research report will NOT include ________. A) an executive summary of the report that covers the high points of the total report B) a description of the research methodology C) a discussion of the results of the study, including tabulations, cross-tabulations, and additional statistical analysis D) a discussion of limitations of the study E) a situation analysis Answer: E 97) To determine what type of information to add to its Web site in order to attract more visitors, an Internet company could look at a survey by the AOL/Roper Starch Cyberstudy, which showed the primary activities Americans are most likely to engage in when surfing the Internet. This study is an example of ________. A) ethnographic data B) a secondary data source C) a primary internal data source D) data mining E) a primary external data source Answer: B 98) Which of the following is NOT an example of a secondary data source for a company researching whether it should open a casino near St. Louis, Missouri? A) U.S. Census reports on St. Louis growth patterns B) a survey commissioned by the company asking St. Louis residents about their gambling habits C) the stockholders' report from a casino that currently operates in St. Louis D) a trade organization report on the tourism industry in Missouri E) an academic study of the growth of online gambling activities Answer: B 99) A market research bureau semiannually conducts national surveys of more than 25,000 consumers who complete monthly logs detailing their purchases of products. Many companies subscribe to the bureau's report publication to learn of the findings of these surveys. This information can be classified as ________. A) primary data B) secondary data C) mined data D) experimental data E) cross-tabulated data Answer: B 100) A group of investors wants to bring a minor league baseball team to a community of 100,000 to create hometown spirit and offer a new form of family entertainment. The group surveyed people in the community to see if they would attend the games, how frequently they would attend, and whether the location of the proposed baseball stadium was acceptable. This survey is an example of ________. A) data mining B) a secondary internal source C) longitudinal data D) a primary data source E) a secondary external source Answer: D 101) A city hired a research company to survey spring break vacationers to learn about this market. One of the questions asked was, "If you were able to hang out on the beach with any celebrity, who would she or he be?" This type of question is a means for gathering ________. A) qualitative data B) ethnographic observations C) cross-tabulated data D) quantitative data E) longitudinal data Answer: A 102) Six women were invited to participate in a discussion on motels, hotels, and resorts. A discussion leader first asked them what differentiated motels, hotels, and resort accommodations. Then she asked them to identify all the amenities they expect to find in overnight accommodations. These six women and their group leader participated in a(n) ________. A) mall intercept B) questionnaire C) expert panel D) case study E) focus group Answer: E 103) A company did a comprehensive examination of how pit crews in an auto race work to quickly get a racecar into the pit area, gas the car, perform other maintenance, and get the car back on the track. The company wanted to see if it could adapt some of the teamwork techniques used by pit crews to speed up its order processing. The company conducted a(n) ________. A) focus group B) concept test C) case study D) worker intercept E) ethnographic study Answer: C 104) A trained researcher was paid to visit a home with three preschoolers every day for two weeks to observe the children's bath time. This is an example of ________. A) a focus group B) experimental research C) a case study D) descriptive research E) ethnography Answer: E 105) Over the course of one day, researchers counted the number of out-of-state cars parked in an outlet mall parking lot at 10 a.m. and 4 p.m. The gathering of this quantitative data is an example of descriptive research using ________. A) a hierarchical format B) a cross-sectional design C) latitudinal tracking D) a longitudinal design E) ethnography Answer: B 106) Every six months, Doug is asked to fill out a survey which asks when he expects to buy a new vehicle and what type and model he plans to purchase. Doug, along with a group of consumers with similar buying habits, has been participating in this survey for the last eight years. The gathering of this quantitative data is an example of descriptive research using ________. A) a hierarchical format B) a cross-sectional design C) latitudinal tracking D) a longitudinal design E) ethnography Answer: D 107) An independent grocer who wants to know if cocktail and tartar sauce would sell better if the two products were moved from the salad dressing section of the store to a display next to the seafood selection would most likely use ________ research. A) longitudinal B) exploratory C) latitudinal D) ethnographic E) causal Answer: E 108) Prior to setting up its Thanksgiving Turkey Hotline, a company conducted one-on-one discussions with a small number of new and experienced cooks to determine what type of questions it should be prepared to answer. In research terms, this company conducted ________. A) focus groups B) face-to-face interviews C) ethnographic research D) unobtrusive measures E) observational research Answer: B 109) Barry was sitting on a bench near the center of the shopping mall waiting for his wife to finish her shopping when he was approached by a woman holding a clipboard and a dress shirt. She asked if Barry had the time to answer a few questions about the shirt. After Barry examined the shirt, the woman asked him to assess the quality of the shirt and to state how much he would be willing to pay for the shirt. Barry participated in a(n) ________. A) focus group B) observational interview C) expert panel D) experimental interview E) mall intercept Answer: E 110) A survey about pet ownership used a sample derived from people who visit a website and register. This sample would lack ________ because not everyone has Internet access. A) flexibility B) validity C) responsiveness D) reliability E) representativeness Answer: E 111) Will has eight puppies. He is concerned his puppies may be infected with parvo, a disease that is deadly in young dogs unless diagnosed and treated early. The cost of the test to determine if a dog has parvo is $59. Unfortunately, Will cannot afford to have all of his puppies tested. However, if one dog tests positive, then Will can assume that all the puppies are infected. If the tested puppy is not infected, then Will can assume that his puppies are healthy. The veterinarian has suggested that Will reach into the pen where the dogs stay and pick up the first puppy that walks into his hand. What kind of sampling technique is the vet suggesting Will use? A) simple random sampling B) cluster sampling C) stratified sampling D) systematic sampling E) convenience sampling Answer: A 112) A daycare center operator wanted to survey her parents to determine if they were interested in the center providing once-a-month Saturday night care for their children. Rather than survey all 254 parents, the operator took the list of parents' names and, starting with the third parent's name, surveyed every twelfth parent. What type of sampling did the daycare operator use? A) simple random sampling B) convenience sampling C) stratified sampling D) systematic sampling E) non-probability sampling Answer: D 113) When Gap, Inc. was developing the concept for its chain of Old Navy stores, the company gave employees who fit the desired Old Navy customer profile $200 apiece. They set them loose on a shopping spree, and then interviewed them about what they purchased so these products would be on the Old Navy shelves when the stores opened. Gap, Inc. utilized what format of participant sampling? A) probability sampling B) systematic sampling C) stratified sampling D) nonprobability sampling E) simple random sampling Answer: D 114) As part of her summer job, Martina was instructed to collect data from ten people to determine how they felt about a number of political issues, including socialized medicine, food stamps, and educational vouchers. She asked her father, grandfather, mother, brother, two uncles, and four sorority sisters to answer the survey questions. Marina used a ________ sample. A) probability B) convenience C) stratified D) systematic E) simple random Answer: B 115) Whether a sample can be categorized as a probability sample or a nonprobability sample depends on the ________ of the sample. A) validity B) responsiveness C) representativeness D) flexibility E) reliability Answer: C 116) A sign at a Tokyo hotel once read, "You are invited to take advantage of the chambermaid," and a dry cleaner in Majorca urged passing customers to "drop your pants here for best results." These are examples of ________ in global markets that international market researchers must consider. A) technological barriers B) cultural differences C) local customs D) ethnocentric positions E) language barriers Answer: E 117) A sports entertainment company wants to research how Canadians spend their free time. It is preparing a survey that will be used in all of Canada, including the province of Quebec. Unlike Canadians from other provinces, the people of Quebec primarily speak French. The researchers are planning to use English and French versions of the survey. In preparing the surveys, they should use ________. A) back translation B) nonprobability sampling C) probability sampling D) syndicated research E) cross-tabulation Answer: A 118) Research design falls into the two broad categories of secondary research and primary research. Answer: True 119) A syndicated research report is an example of a secondary data source. Answer: True 120) Exploratory research is typically large scale and more expensive than other research techniques. Answer: False 121) The focus group format can be used online. Answer: True 122) Descriptive research is typically expressed in qualitative terms. Answer: False 123) Cross-sectional design involves the systematic collection of responses to a consumer survey instrument from one or more samples of respondents at one point in time. Answer: True 124) A causal research design tracks the responses of the same sample of respondents over time. Answer: False 125) Researchers carefully design experiments with independent and dependent variables to test predicted relationships among those variables. Answer: True 126) Mail questionnaires give researchers full flexibility in the types of questions they can ask as well as full control over the circumstances under which the respondents answer the questions. Answer: False 127) Mall intercept studies are a commonly used type of face-to-face interview. Answer: True 128) When researchers suspect that research subjects will alter their behavior if they know someone is watching, the researchers are likely to use unobtrusive observational methods. Answer: True 129) Representativeness is a problem when the researchers cannot be sure the consumer population they are studying even understands the questions. Answer: False 130) The most basic type of nonprobability sampling is a simple random sample. Answer: False 131) After conducting formal marketing research for your department, you summarize the data in an oral presentation to management. You are following normal marketing research steps. Answer: False 132) A researcher investigating the amount of food waste in the typical four-person family plans to sift through the garbage of a small sample of representative families. This method is an example of an unobtrusive survey. Answer: False 133) ABC Interior Designs wants to collect research data through their checkout scanners. This is an example of mechanical observation. Answer: True 134) Describe the basic market research process. Answer: The market research process involves seven steps: defining the research problem, determining the research design, choosing the method to collect primary data, designing the sample, collecting the data, analyzing and interpreting the data, and preparing the research report. First, it must be clear what information management needs, or what problem they need to solve. The research design may rely on secondary research or primary research. The three types of primary research are exploratory, descriptive, and causal. Next, the method for collecting the primary data must be selected. Researchers can use different types of surveys or observation to collect the data that is required. Before data collection can begin, decisions about the design of the sample must be made. Researchers can use probability or nonprobability sampling. The next step is actually collecting the data as planned, which is followed by analyzing the data and then interpreting it in a research report. 135) A catalog retailer specializes in ceramic figures, paintings, books, and other decorative items related to endangered animals. The company is considering donating 10 percent of its net profit to the World Wildlife Foundation (WWF). This idea may attract more customers who like the idea of a portion of their money supporting this charity that works to save species. Provide several examples of primary and secondary data that the retailer can use in its market research. Answer: Students' answers to this question will vary. Primary data could come from a customer survey about the WWF and its mission or from a series of focus groups asking current customers how they might respond to the proposed relationship between the catalog and the World Wildlife Foundation. Secondary data could come from looking at reports on other companies engaged in similar promotions as well as internal sales records. Secondary data could also include published information on the WWF and its membership. Primary data examples: Customer surveys on their interest in supporting wildlife charities, sales data segmented by product category to understand which items are popular. Secondary data examples: Research reports on consumer behavior towards charitable donations, WWF impact reports to understand their credibility and impact. 136) Compare and contrast the structure and uses of exploratory research and descriptive research. Answer: Exploratory research can be used to generate ideas for future strategies or just to get a better handle on a problem a firm is experiencing with a product. These studies are usually small in scale and less costly than other research techniques. Exploratory research typically is qualitative, meaning that the results of the research project tend to be nonnumeric. The results might be verbal or visual information about consumers' attitudes, feelings, and buying behavior in the form of words rather than numbers. Descriptive research often follows exploratory research. Descriptive research is much more systematic, probing into a specific marketing problem and basing its conclusions on a much larger sample of participants. Descriptive research is quantitative, meaning that results are expressed in numerical terms such as averages, percentages, or other statistics summarizing results from a large set of measurements. 137) Discuss the advantages and benefits of each of the main data collection methods. Answer: The main data collection methods are mail questionnaires, telephone interviews, face-to-face interviews, and online questionnaires. Mail questionnaires can be used to collect information at a low cost per respondent. Respondents may give more honest answers to more questions in this format than to an unknown interviewer in person or on the phone. Telephone interviewing is one of the best methods for gathering information quickly and it provides great flexibility. Telephone interviewing is also less expensive than face-to-face interviewing. Face-to-face interviews are flexible and allow interviewers to help respondents understand difficult questions. Visual aids can be used, products can be demonstrated, and reactions and behaviors can be observed. Online questionnaires allow the interviewee to be more honest, the costs are greatly reduced, there is no interviewer bias, and reports come back faster. 138) Explain the three factors that typically influence the quality of research results and discuss how researchers can ensure the quality of their data. Answer: The three factors that typically influence the quality of research results are validity, reliability, and representativeness. Validity is the extent to which the research actually measures what it was intended to measure. To make sure that they gather valid data, researchers should carefully analyze the construction of surveys and experiments. The second factor is reliability, which is the extent to which the research measurement techniques are free of errors. Researchers can maximize reliability by carefully training interviewers and by using several different ways to ask the same question or using several analysts to interpret the responses. The third factor is representativeness, which is the extent to which consumers in the study are similar to the larger population in which the organization is interested. Researchers should carefully design the sample to ensure representativeness. 139) Explain the common problems that international market researchers encounter. Answer: International researchers deal with less homogeneous markets in and among countries. The markets often vary greatly in their levels of economic development, their cultures and customers, and their market conditions. In many developing countries, infrastructure is an impediment to executing phone, mail, and online surveys. Choosing an appropriate data collection method can be difficult. Cultural and language differences can present obstacles in interpreting the data and drawing realistic conclusions. Also, low literacy rates may interfere with survey results. 140) In the market research process, it is essential for marketers to define the research problem. What does this mean? Answer: The word problem doesn't necessarily mean that something is wrong. Rather, it refers to the overall questions for which the firm needs answers. In other words, marketers must clearly define what questions they need to have answered through research. 141) What is the difference in the qualitative versus quantitative approach to research? Answer: In the qualitative approach, the results of the research project tend to be nonnumeric. The results might be verbal or visual information about consumers' attitudes, feelings, and buying behavior in the form of words rather than in numbers. In the quantitative approach, results are typically expressed in numerical terms of averages, percentages, or other statistics summarizing results from a large set of measurements. 142) Explain the roles of independent and dependent variables in causal research. Answer: Independent variables cause some change in dependent variables. Researchers test the relationship between these variables in causal research. 143) Why might a researcher decide to use causal research rather than descriptive research? Answer: Descriptive research techniques provide valuable information about what is happening in the marketplace but do not address why something may or may not be happening. Causal research attempts to understand why something is happening. Marketers use causal research techniques when they want to know if a change in something is responsible for a change in something else. 144) A manager in a grocery store decides to place packages of pound cake in two different locations in the store. One display of the cake also includes other bakery items. The second display of the cake is in the vegetable section of the store, placed next to the shelf full of boxes of fresh strawberries. The grocery store manager wants to learn which of the two locations will most encourage customers to buy the cake. What format of research is the store manager conducting? Explain your answer. Answer: The store manager is conducting an experiment. Experiments are carefully designed to test predicted relationships among variables in a controlled environment. The store could be considered a controlled environment, and the experiment is to see which location will cause more sales of the cakes. 145) An advertising agency's research division sends researchers into homes with handheld video cameras to get pictures of how and why people use products. What method of research is this advertising agency implementing? Explain your answer. Answer: The advertising agency is implementing the observation method. Specifically, the personal observation method is being implemented. This method is used when consumers are watched to understand how they react to marketing activities. 146) The owner of a successful independent book store has been thinking lately that she either needs to find a new location or expand this one as she stumbles over boxes of books in the cramped space. What type of research design should she use to determine how her customers feel about the current store? Why? Answer: This would be an opportunity to use exploratory research. The store owner is trying to come up with a new strategy, and the type of qualitative feedback offered by exploratory research would likely be most helpful. She needs to know about her customers' attitudes and feelings, something more easily discovered through exploratory research than descriptive or causal research. 147) Two brothers own a hair salon. One believes they could have more business if they mailed out $5-off coupons to people living within a five-mile radius of the shop. The other brother wants to run an ad in the local shopping newspaper with a coupon for a free hot oil treatment. (The newspaper goes to everyone in the area.) What type of market research can they use to determine whose idea would be more profitable? Explain your answer. Answer: Causal research could be used to understand cause-and-effect relationships. Both methods should be tried as experiments, and then the results compared to determine which idea would be the most profitable. 148) Why would market researchers use convenience samples? Answer: A convenience sample is a nonprobability sample, meaning that the sample is not representative of the population. Sometimes a company merely wants to know it is on the right track and the expense of a major study using a probability sample is unnecessary. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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