Chapter 2 The Marketing Research Industry
1) Which of the following professional organizations is devoted to improving the quality of
the marketing research industry and to ensuring the future of the marketing research
profession?
A) AMA (American Marketing Association)
B) MRA (Marketing Research Association)
C) QRCA (Q Research Council & Association)
D) AAPOR (American Association for Public Opinion Research)
E) CASRO (Council of American Survey Research Organizations)
Answer: B
2) The marketing research industry has a certification program for marketing researchers, and
this certification program is hosted by:
A) American Marketing Association.
B) Research Certification Board.
C) Marketing Research Corporation.
D) Marketing Research Association.
E) Association of Specialized and Professional Accreditors.
Answer: D
3) What did the Marketing Research Association do in 2005 that changed the credentialing of
marketing research professionals?
A) They brought a lawsuit against several practitioners who were not qualified to practice
marketing research.
B) They required all practitioners to take a test on qualitative research methods.
C) They created the Professional Researcher Certification program.
D) They required all AACSB accredited colleges to offer a course in marketing research.
E) Nothing has been done; one of the problems the industry has is that there is no
credentialing program.
Answer: C
4) Who, among the following, is given credit for conducting the first continuous and
organized marketing research and is also recognized today as the "Father of Marketing
Research"?
A) Charles Coolidge Parlin
B) C. J. Craig
C) Jed Bartlet
D) Charlie Young
E) Josh Lyman
Answer: A
5) What was the significance of the years following the Industrial Revolution to the
marketing research industry?
A) The early development of questionnaires, which were put into use providing marketing
researchers with a method of gathering new information from customers, dealers, and
competitors, occurred.
B) Companies were separated from their customers, and there was a need to understand
faraway markets.
C) Marketing research became fully accepted; formal recognition of the marketing research
function led to the creation of marketing research departments.
D) High-tech products such as CARDs, CATIs, SPSS, and DBMs developed.
E) Nothing really changed in the marketing research industry after the Industrial Revolution.
Answer: B
6) In terms of the evolution of the marketing research industry, what was the significance of
the era which ranged from about 1940 to 1960?
A) Questionnaires were put into use providing marketing researchers with a method of
gathering new information from customers, dealers, and competitors.
B) Finally, marketing research became fully accepted; formal recognition of the marketing
research function led to the creation of marketing research departments.
C) High-tech products such as CARDs, CATIs, SPSS, and DBMs developed.
D) Focus groups, statistical analysis, and the computer became part of the marketing
researchers' tool kit, greatly aiding them in their research efforts.
E) none of the above
Answer: D
7) Which of the following best explains the role of marketing research by the 1960s?
A) Marketing research seemed to outlive its usefulness.
B) The Marketing Research Association, Inc., was formed and accepted all firms as members
whether accredited or not.
C) The number of marketing research departments grew.
D) Few people wanted to major in marketing research.
E) Marketing research gained acceptance in organizations and was recognized as being
needed for survival.
Answer: E
8) An annual publication that lists the top 25 global marketing research firms in the world is
known as:
A) the World's Top 25.
B) Research World's 25.
C) the Honomichl Global Top 25.
D) the Limbaugh Top 25.
E) the MRA's Top 25.
Answer: C
9) Which of the following reports a list of marketing research firms ranked in terms of
revenues from U. S. operations only?
A) the Limbaugh Top 50
B) the U.S. Top 50
C) the Honomichl Top 50
D) MRA's Top U.S.
E) Smith & Wolensky's Top 125
Answer: C
10) The largest marketing research firm in the world is:
A) Arbitron Inc.
B) Burke, Inc.
C) SymphonyIRI Group, Inc.
D) Nielsen Holdings N.V. Co.
E) Ipsos SA.
Answer: D
11) In discussing the structure of the marketing research industry, the authors define an
internal supplier firm as one that:
A) makes research decisions based primarily upon information supplied by the internal
reports system.
B) is organized in a staff relationship to other internal departments.
C) provides syndicated services, but only to members of the syndicate.
D) has its marketing research provided by an entity, such as a marketing research department,
within the firm.
E) includes internal data analysis services.
Answer: D
12) Owners/proprietors of small firms are more likely to take advantage of:
A) specialized internal research teams.
B) research agencies.
C) informal departments organized around budget categories.
D) do-it-yourself research.
E) ad hoc task forces.
Answer: D
13) Which of the following types of marketing research firms would be considered "limitedservice" firms?
A) syndicated data services firms
B) packaged services firms
C) customized services firms
D) field services firms
E) online research services firms
Answer: D
14) External supplier firms may be either:
A) vertically or horizontally integrated.
B) full-service or limited-service firms.
C) syndicated or internal supplier firms.
D) certified, or be required to offer letters of qualified research service capability.
E) strategically aligned or working alone.
Answer: B
15) Full-service supplier firms:
A) take over customer firms.
B) are known as companies that excel in providing customer service.
C) have the ability to conduct the entire marketing research project.
D) are always internal supplier firms.
E) provide services at a reduced cost due to economies of scale.
Answer: C
16) Firms that collect information, store it on a common database, and make it available to
multiple subscribers are called:
A) internal subscription services.
B) syndicated data service firms.
C) packaged services firms.
D) internal supplier firms.
E) customized research firms.
Answer: B
17) Firms that specialize in collecting data are called:
A) data storage firms.
B) lab service firms.
C) market segment data specialists.
D) field services firms.
E) data labs.
Answer: D
18) A research firm that uses only one technique, such as eye movement research or taste
testing, would be called:
A) a full-service supplier firm.
B) a syndicated data service firm.
C) a firm that is said to have "vision."
D) a limited-service supplier firm.
E) an internal supplier firm.
Answer: D
19) ________ is (are) a key driver for revenues in the marketing research industry.
A) The global economy
B) National or regional economies
C) The unemployment rate
D) Growth industries around the world
E) Corporate profits
Answer: E
20) Current studies show that the health of the marketing research industry ________ that of
the economy in general.
A) follows and corresponds to
B) slightly exceeds
C) significantly exceeds
D) is weaker than
E) cannot be compared to
Answer: C
21) Research revenues vary around the world, but ________ has the largest market share.
A) North America
B) Europe
C) Middle East & Africa
D) Latin America
E) Asia Pacific
Answer: B
22) Which of the following is the fastest growing country, in terms of net growth revenue
gains for market researchers from 2009 to 2010?
A) the United States
B) the United Kingdom
C) Germany
D) Russia
E) Austria
Answer: E
23) As the marketing research industry evolves, traditionalists question whether the
challenges posed by ________ threaten to render the industry obsolete.
A) the explosion of technological tools and providers
B) the mistreatment of respondents
C) an over-focus on technique
D) commoditization
E) outdated pricing models
Answer: A
24) The 2007 Confirmit industry survey of firms in several countries reported that the leading
challenge facing the marketing research industry was:
A) quick and cheap access to data on the Internet.
B) the overuse of standardized research techniques.
C) falling response rates.
D) the outsourcing of projects to external suppliers.
E) a failure to understand clients' real problems.
Answer: C
25) The issue of ________ continues to be dominant in today's world of "scraping" websites
to gather information.
A) the slow speed of data collection
B) privacy
C) resentfulness toward invasive researchers
D) data incompatibility
E) misinterpreting clients' real problems
Answer: B
26) Some suggested remedies for some of the problems we see in the marketing research
industry are:
A) certification, the passage of more restrictive legislation to govern the industry, and
requiring all marketing researchers to annually pass standardized tests on marketing research.
B) certification and a system of fining those found not to be conducting research studies at
some minimum standard of performance.
C) certification and education.
D) requiring all employees of marketing research firms to have business degrees in marketing
research and to pass a standardized test.
E) passage of more restrictive legislation and an auditing system.
Answer: C
27) For more than a decade, ________ has monitored industry trends, publishing an annual
report on data provided to the industry in terms of what techniques are being used as well as
what drives their use.
A) Burke Institute
B) GreenBook
C) American Association for Public Opinion Research (AAPOR)
D) Transparency Initiative
E) Industry Financial Survey
Answer: B
28) Certification of marketing researchers means:
A) marketing researchers who earn the PRC would be the "best" marketing researchers.
B) those having the PRC would be able to charge higher fees for their services.
C) those certified have passed some standard(s) of performance.
D) those holding the PRC would have achieved the maximum standard of performance.
E) those desiring the PRC will have better report writing skills.
Answer: C
29) Marketing researcher certification, PRC, stands for:
A) Public Researcher, Certified.
B) Professional Researcher Certification.
C) Public Researcher, Corporate.
D) Professional Researcher Certificate.
E) Public Researcher Certification.
Answer: B
30) Professional organizations try to prescribe ethical behavior for members by creating:
A) representatives in churches to influence future researchers.
B) codes of ethical behavior.
C) lobbyists who fight for higher ethical standards in government.
D) examples of poor ethical behavior in other professions.
E) means to participate in the development of certification standards in professions other than
marketing research.
Answer: B
31) What does sugging refer to?
A) selling under the guise of a survey
B) fund raising under the guise of a survey
C) collecting data through telephone interviews
D) falsifying data
E) surveying under the guise of selling
Answer: A
32) What does frugging refer to?
A) selling under the guise of a survey
B) fundraising under the guise of a survey
C) collecting data through telephone interviews
D) falsifying data
E) frightening (respondents) under the guise of research
Answer: B
33) Which of the issues below best illustrates researchers falsifying data in order to make the
findings consistent with predetermined points of view?
A) lack of research integrity
B) lack of the use of PRCs who would not falsify data for any reason
C) when clients use fake "research funds provided" to underbid projects
D) lack of the use of data falsification software
E) use of data falsification software
Answer: A
34) Requests for researchers to conduct a study among 8 to 12 year olds to understand how to
persuade kids to demand more of their products (soft drinks and vending machine food) in
schools demonstrates the need to:
A) include educators in the research.
B) communicate research goals to parents.
C) adopt industry best practices.
D) make improvements to ethical conduct in the industry.
E) maintain credibility of research in the eyes of the public.
Answer: D
35) Which of the following is true regarding what the authors have to say about the
percentage of respondents willing to participate in research surveys?
A) The percentage has been going up because consumers see a difference between research
and telemarketing.
B) The percentage has been going down because consumers see a difference between
research and telemarketing.
C) The percentage has been stable.
D) The percentage goes up exponentially when incentives are provided.
E) The percentage has been going down.
Answer: E
36) Deception, especially invasion of privacy, is a serious ethical issue in marketing research
and occurs in research studies. Which of the following is an example of deception?
A) Potential respondents are not told the true identity of the sponsor of the research.
B) Potential respondents are viewed during a study without their permission.
C) Potential respondents are told they will remain anonymous when they will not.
D) all of the above
E) none of the above
Answer: D
37) A common ethical code among major associations is to ensure that respondents
understand that they may elect to not participate in a research request. This code falls into the
category of:
A) fair dealings with respondents.
B) fair dealings with clients and subcontractors.
C) maintaining research integrity.
D) concern for society.
E) raising ethical sensitivities.
Answer: A
38) A common ethical code among major associations is to ensure that researchers will not
collect information for more than one client at the same time without explicit permission
from the clients involved. This code falls into the category of:
A) fair dealings with respondents.
B) fair dealings with clients and subcontractors.
C) maintaining research integrity.
D) concern for society.
E) raising ethical sensitivities.
Answer: B
39) A common ethical code among major associations is to ensure that researchers will not
misrepresent the impact of the sampling method and its impact on sample data. This code
falls into the category of:
A) fair dealings with respondents.
B) fair dealings with clients and subcontractors.
C) maintaining research integrity.
D) concern for society.
E) raising ethical sensitivities.
Answer: C
40) A common ethical code among major associations is to ensure that research released for
public information will contain information to ensure transparency. This code falls into the
category of:
A) fair dealings with respondents.
B) fair dealings with clients and subcontractors.
C) maintaining research integrity.
D) concern for society.
E) raising ethical sensitivities.
Answer: D
41) The PRC has been quickly adopted by both clients and research professionals.
Answer: True
42) Charles Coolidge Parlin is the current president of the Marketing Research Association
and started the PRC certification program.
Answer: False
43) During the early days of the history of the United States, artisans and craftsmen were
involved in barter exchange and understood their customers wants and needs. There was not
much need for marketing research.
Answer: True
44) By the 1960s, marketing research not only had gained acceptance in organizations, but
was recognized as important to firms' survival.
Answer: True
45) The Honomichl Global Top 25 is an annual listing of marketing research firms ordered in
terms of revenue generated ONLY in the United States.
Answer: False
46) World revenues for the marketing research industry are about $300 billion annually.
Answer: False
47) The Honomichl Top 50 is an annual report listing the top 50 marketing research firms in
terms of revenues earned in the United States.
Answer: True
48) Research suppliers may be thought of as consisting of two groups: internal suppliers and
external suppliers.
Answer: True
49) General Mills has a research department that provides for the function of marketing
research at the company. This is an example of what we mean by an external supplier firm.
Answer: False
50) Marketing research firms classified as "market segment specialists" and "field services"
firms are categorized as being full-service supplier firms.
Answer: False
51) Internal supplier firms organize the research function by using either committees or by
assigning individuals the responsibility. They do not have their own departments of
marketing research.
Answer: False
52) Very few of the largest firms (sales volumes in excess of $500 million) have their own
marketing research departments, but they usually have at least one person responsible for
conducting marketing research.
Answer: False
53) The basic function of formal marketing research departments is to provide information to
internal decision makers.
Answer: True
54) External supplier firms may be classified into the two categories of full-service and field
data service firms.
Answer: False
55) In most cases, internal suppliers of marketing research also purchase research from
external suppliers.
Answer: True
56) In the marketing research industry, full-service supplier firms have the ability to define
the problem, specify the research design, collect and analyze the data, and prepare the final
report as part of their service.
Answer: True
57) Syndicated data services companies provide customized information and services to
individual clients.
Answer: False
58) Packaged services firms use a proprietary process to conduct a service such as test
marketing or measuring customer or employee satisfaction.
Answer: True
59) Customized service firms tailor research services to each client's specific needs.
Answer: True
60) Many limited-service firms specialize in some form of online research.
Answer: True
61) Examples of "online research services firms" include Toluna, Knowledge Networks, and
Mindfield Internet Panels.
Answer: True
62) Field service firms specialize in collecting data and are full-service firms.
Answer: False
63) A firm specializing in developing samples for companies desiring to conduct marketing
research would be an example of a limited-service firm.
Answer: True
64) Companies that specialize in services such as eye movement research, mystery shopping,
taste tests, fragrance tests, and so on are categorized as limited service, specialized research
technique firms.
Answer: True
65) Marketing researchers may be certified, and the certification is called the Professional
Researchers Certification (PRC).
Answer: True
66) In evaluations conducted on the performance of the marketing research industry, the
conclusions have been consistent in saying that the industry is plagued with so many
problems that it has not been able to operate at any level other than "unsatisfactory."
Answer: False
67) Some critics believe that both marketing and marketing research have lost importance in
organizations, and that marketing research no longer represents the "voice of the consumer."
Answer: True
68) Some critics of the marketing research industry believe that the industry is too "tool"
oriented, and often the problem is defined in terms of being compatible with an existing tool.
Thus, researchers fail to consider focusing on the more complex strategic issues facing the
firm.
Answer: True
69) Some critics of the marketing research industry believe that marketing research is done
too quickly. Researchers need to slow down to improve the value of the research information
they are providing clients.
Answer: False
70) Several industry initiatives are directed at keeping the public informed about the value of
research, the appropriateness of research methods, and the ethics the industry uses in
collecting research information.
Answer: True
71) Given the many problems facing the marketing research industry, suggestions for
improvement have centered around certification and education.
Answer: True
72) PRC, Professional Researcher Certification, is a designation that indicates the
achievement of a minimal standard of performance.
Answer: False
73) Once PRC certification is awarded to an individual, there is no requirement that the
individual do anything else to maintain his/her certification.
Answer: False
74) While there are many individual classes available for educating members of the
marketing research profession, as of 2010, there are no masters programs offering a
specialization in marketing research.
Answer: False
75) The marketing research industry offers many educational opportunities for members of
the industry. One highly regarded training program is offered through The Burke Institute.
Answer: True
76) Ethics may be defined as a field of inquiry into determining what behaviors are deemed
appropriate under certain circumstances as prescribed by codes of behavior that are set by the
government.
Answer: False
77) Although they abound in other areas, codes of ethical behavior have yet to be proposed in
the marketing research industry.
Answer: False
78) Although sugging is considered unethical, it is not illegal.
Answer: False
79) Although frugging is considered unethical, it is not illegal.
Answer: True
80) Most industry codes of ethics are for the purpose of self-regulating professionals'
behavior.
Answer: True
81) One ethical issue that does not affect the marketing research industry is research integrity.
Because marketing research objectively gathers and reports information, there is no issue
with withholding, altering, or intentionally misinterpreting information.
Answer: False
82) An ethical issue arises in the marketing research industry when researchers are asked to
conduct marketing research on topics such as: how to get more teens to smoke and how to
develop Saturday a.m. TV ads, directed at children, whose purpose it is to increase sugar
consumption.
Answer: True
83) Although ethical issues abound in the conduct of marketing research, there is no evidence
that any marketing research firms are being "proactive" and actually helping clients to
determine how consumers may evaluate a client's proposed strategy in terms of ethical
standards.
Answer: False
84) Respondent cooperation rates have gone down in the marketing research industry.
Answer: True
85) An example of deception in marketing research is to observe shoppers in a supermarket
without their permission.
Answer: True
86) While you can go directly into marketing research after college, a graduate degree is
highly desirable.
Answer: True
87) In recent years, marketing researchers have come to view themselves as staff members
who supply management with information, and information generated by their marketing
research "tools." Marketing researchers, when confronted with a problem, determine which of
their "tools" should be applied. This situation was discussed in your text and represents:
A) a demise in the significance of research, in that the tools are too quickly applied instead of
the researchers being involved in making strategy decisions for the firm.
B) an objective method of conducting research that allows sophisticated tools to provide
answers without researchers' subjectivity.
C) the state of the art of marketing research, and is a good sign that the industry has been
capable of designing the proper tools to solve client problems.
D) marketing research using only quantitative or qualitative research.
E) marketing researchers, who are to be commended for behaving as staff members, which
keeps overhead low.
Answer: A
88) In 2004, Mack Mitchell, owner of Mitchell Helicopters, decided he needed marketing
research conducted before he made a decision that would change the total strategic direction
of his company. Mack was convinced that the future market was not for the large, very
expensive helicopters the industry had been providing the market for more than 50 years.
Rather, he envisioned a significant market of small, single-seat helicopters that would be used
by high-income business executives to commute in large cities where commuting was
becoming increasingly difficult. To be successful, Mitchell knew that this involved much
more than designing and building a small helicopter. It also meant that buyers would have to
make infrastructure changes by installing safe-landing pads at home and at work. If he was
right, Mitchell would be embarking on a major change for the company; a change that would
put the financial stability of the company at risk. Because it was such a major decision,
Mitchell wanted research to confirm or disconfirm his decision. Remember we are assuming
this situation occurred several years ago in 2004. In 2004, Mitchell would have been
hampered in deciding which marketing research firm to hire for this important decision
because:
A) there are no marketing research firms that are market segment specialists in the demand
for small, commuter helicopters.
B) the larger, more reputable marketing research firms have skills that are focused on
providing standardized information, such as syndicated data or standardized services.
C) due to the fact that there was no certification program in the marketing research industry
in 2004, it would be more difficult for Mitchell to evaluate whether or not the individual
researchers have the business knowledge and marketing expertise to conduct an appropriate
marketing research study.
D) by identifying the nature of the desired research, Mitchell would have made his
commuter-copter idea public.
E) Mitchell has not conducted enough secondary data research to enable him to determine if
the value of the research will outweigh the costs of the research.
Answer: C
89) A marketing research firm, Forrester Research, released a report concluding that
developing and deploying web-based portal applications is substantially less expensive using
Microsoft technology than it is using competitive software such as a Linux/J2ee combination.
However, sometime after this information was released to the public, it was learned that
Microsoft had sponsored (i.e. "paid for") the research conducted by Forrester. This example
illustrates:
A) firms can gain a great deal of favorable publicity if the research company conducting their
research makes the research results public.
B) research findings should not be made public unless they have been replicated at least five
to six times in different environments thus ensuring the information is accurate.
C) there is an ethical issue in the marketing research industry in terms of "research integrity."
In this case, the issue is whether the research was conducted by Forrester in a way that
ensured favorable results for the sponsoring client, Microsoft.
D) there is no ethical issue in this situation at all. Any research company has a First
Amendment right to announce anything it wishes at any time it wishes.
E) this is a clear case of frugging and is illegal.
Answer: C
Test Bank for Marketing Research
Alvin C. Burns, Ronald F. Bush
9780133074673, 9780134895406, 9780134167404
