Chapter 2: Research Design and Data Sources
TRUE/FALSE
1) The research design is the basic plan that guides the data collection and analysis phase of
the research project.
Answer: True
The research design is the framework that guides the type of information to be collected,
possible data sources, and the collection procedure.
2) Exploratory research presupposes that a sound causal model of the marketing system exists
in the mind of the decision maker.
Answer: False
Exploratory research is used for a variety of purposes in clarifying the nature of the situation,
decision, and alternatives. Causal models generally require experimentation.
3) Descriptive research can be sub-classified into conclusive research and causal research.
Answer: False
Descriptive research and causal research are subsets of conclusive research.
4) Descriptive studies are often used to determine buyer perceptions of product characteristics
and audience profiles for media, such as television and magazines.
Answer: True
From descriptive studies, marketers can learn the characteristics of buyers, their perceptions
of product attributes, and their audience profile.
5) Product usage studies describe the proportion of total sales received by both a company
and its competitors, in terms of units, volume, and total dollar sales.
Answer: False
It is market-share studies that provide such information. Product usage studies describe
consumption patterns.
6) Although data regarding a possible association among variables can be used for predictive
purposes, these data are not adequate to establish a causal relationship.
Answer: True
Just because two variables display an association does not mean that one causes the other.
7) In terms of research, “accuracy” refers to a design that minimizes systematic error and also
minimizes the reliability of collected evidence.
Answer: False
In designing marketing research, the goal is to minimize systematic error and maximize
reliability.
8) The distinguishing features of a cross-sectional design are that it is intended to be done just
once and participants cannot typically be matched to specific responses or participants in
another study.
Answer: True
Cross-sectional designs are the most popular and familiar type of research design and involve
taking a sample of a population at one point in time.
9) The main sources of data for causal research are 1) questioning respondents through
surveys, and 2) conducting experiments.
Answer: True
Although surveys can be used for causal research, experiments can provide stronger support
for a causal relationship.
10) The primary reason experiments are preferred in causal research over surveys of
respondents is that, in experiments, key variables can be measured, whereas in survey
research the key variables are manipulated.
Answer: False
An experimental design is preferred because the variables can be manipulated and not just
measured as with survey research.
11) Performance monitoring research may involve a special (ad hoc) study or a continuous
research program.
Answer: True
The purpose of performance-monitoring research is to track and report relevant changes
along marketing-related dimensions. Data is gathered by special (ad hoc) studies or a
continuous research program.
12) Continuous performance monitoring requires a cross-sectional research design.
Answer: False
Cross-sectional designs are done ad hoc at a single specific time, whereas longitudinal
designs are done over time. By definition, then, continuous performance monitoring requires
a longitudinal design.
13) A traditional panel is a fixed sample of respondents measured over time, although the
variables measured are different each time; whereas an omnibus panel is a fixed sample in
which the same variables are measured over time.
Answer: False
It is the reverse. Both types of panel involve a fixed sample of respondents, but with a
traditional panel, the same variables are repeatedly measured over time, whereas with an
omnibus panel, different variables are measured over time.
14) Longitudinal data can be misleading because surveys at two points in time, conducted
with different respondents in the sample, can mask even dramatic changes taking place in the
population or indicate great changes when none are taking place.
Answer: False
It is cross-sectional studies that can be misleading in this way. Because longitudinal data
utilizes the same respondents, it is a truer measure of change taking place in the population
than multiple cross-sectional studies that use different respondents.
15) One of the problems that occurs with longitudinal panels is that of unrepresentative
sampling, which occurs when the panel does not represent the target population.
Answer: True
Because panel members serve long term it is difficult to get individuals to participate,
especially in higher income professions. Therefore, it is difficult for the panel to remain
representative.
16) An advantage of observation methods in collect data is that it allows for the recording of
behavior when it occurs and eliminates errors associated with respondents’ recall of behavior.
Answer: True
Typically, observing the behavior of respondents is less costly and more accurate than
memory recall.
17) A valid simulation means that the model's behavior corresponds to the system it is
designed to represent.
Answer: True
The overriding objective of a simulation is to observe how the simulation units imitate the
behavior of the marketing system units that they represent.
18) Secondary data are collected specifically for purposes of the research needs at hand.
Answer: False
Primary data are collected specifically for the research needs at hand. Secondary data are
already collected and often published, typically for some other purpose.
19) Services that evaluate television commercials use two basic approaches—the recruited
audience method and the normal viewing environment method. With the recruited audience
method, respondents are recruited and asked to evaluate television ads in their home.
Answer: False
With the recruited method, respondents are recruited and brought to a viewing center.
20) One of the “last frontiers” of scanner-based research is to assess the effects of pricing on
purchase behavior.
Answer: False
One of the last frontiers is advertising, because its impact is much more difficult to quantify.
Pricing research using scanner data is relatively easy since the price of a product can be
modified on a store-by-store basis or even over time.
21) Single sourcing of data is a syndicated marketing research concept that has gained
credibility as technology has allowed the gathering of more resources and data under one
roof.
Answer: True
Because single sourcing can provide almost real-time data, it has gained credibility. The
disadvantage, however, is finding someone who can interpret such huge volumes of data.
22) Survey research should be used only if the data cannot be collected via more efficient
secondary data sources.
Answer: True
The first step in data collection should be to determine whether secondary data already exists.
23) The advantage of primary data over secondary data is savings in cost and time.
Answer: False
Compared to designing a primary research study and conducting the study, collecting
secondary data is less costly and less time consuming.
24) A tract is the smallest area for which census data are available.
Answer: False
A block is the smallest area for which census data are available.
25) Although research designs are applicable to both domestic and international situations,
there are differences in implementation of research designs caused by variations in available
technology, research institutions, and culture across countries.
Answer: True
While research designs can be the same, applying those research designs in other countries
can be problematic.
MULTIPLE CHOICE
1) The research design is the framework that specifies all of the following except
a. the type of information to be collected
b. possible data sources
c. the collection procedure
d. the systematic and random error
Answer: D
The research design is the basic plan that guides the data collection and analysis phase of the
research project. Error can’t be determined until after the data is collected.
2) Exploratory research
a. identifies the sampling frame and sampling procedure
b. aids the early stages of the decision-making process and investigates how to hold down
cost and time expenditure
c. provides information that helps the manager evaluate and select a course of action
d. is essential to ensure that marketing programs are proceeding in accordance with preset
plans
Answer: B
Exploratory research is used in the early stages of decision-making to help identify the
problem or opportunity and the alternatives that may be feasible.
3) Conclusive research
a. identifies the sampling frame and sampling procedure
b. aids the early stages of the decision-making process and investigates how to hold down
cost and time expenditure
c. provides information that helps the manager evaluate and select a course of action
d. is essential to ensure that marketing programs are proceeding in accordance with preset
plans
Answer: C
Conclusive research provides the information about the various alternatives so managers can
decide among them.
4) Exploratory research is appropriate for all of the following research objectives except
a. portraying the characteristics of marketing phenomena and determining the frequency of
occurrence
b. identifying or developing a more precise formulation of problems or opportunities
c. gaining a perspective regarding the breadth of variables operating in a situation
d. establishing priorities regarding the potential significance of various problems or
opportunities
Answer: A
Conclusive research is used for portraying the characteristics of marketing phenomena and
determining the frequency of occurrence, not exploratory research.
5) The vast majority of research studies involve the type of conclusive research called
a. exploratory research
b. descriptive research
c. causal research
d. experimental research
Answer: B
Most of the marketing studies rely heavily on an amalgam of respondent interviews and data
available from secondary data sources, which is descriptive research.
6) Studies that describe user characteristics for particular products and services are
a. consumer profile studies
b. psychographics
c. situational analyses
d. marketing potential studies
Answer: A
Consumer profiles are conducted to describe user characteristics.
7) _______________ studies describe the size of the market, the buying power of consumers,
the availability of distributors, and buyer profiles for a product.
a. Consumer profile
b. Market share
c. Market potential
d. Distribution research
Answer: C
It is market potential studies that provide information about the size of a market, the buying
power of consumers, the availability of distributors, and profiles of the buyer.
8) _______________ studies determine the proportion of total sales received by both a
company and its competitors, in terms of units, volume, and total dollar sales
a. Consumer profile
b. Market share
c. Market potential
d. Distribution research
Answer: B
Market share studies provide information about the size of a particular company’s sales
compared to the competition and to the industry.
9) Effective descriptive research is marked by a clear statement of the
a. decision problem
b. specific research objectives
c. detailed information needs
d. all of the above
Answer: D
Effective descriptive research includes a clear statement of the decision problem, specific
research problems, and detailed information needs.
10) Systematic error refers to
a. a constant bias in the measurement process
b. error due to sampling
c. random non-sampling error
d. inadvertent errors in coding and editing of data
Answer: A
Systematic error incorrectly influences decisions in one direction due to a constant bias in the
measurement process.
11) The extent to which the measurement process is free from random errors is called
a. systematic error
b. reliability
c. validity
d. accuracy
Answer: B
Reliability refers to the absence of random error in the research measurement process.
12) All of the following statements about cross-sectional designs are true except
a. it is a type of exploratory research that facilitates identification of problems or
opportunities
b. it involves taking a sample of population elements at one point in time
c. it is the most popular and familiar type of research design
d. it involves no individual-level identification of participants from one study to another.
Answer: A
Cross-section designs are a type of descriptive research, not exploratory research.
13) The implicit causal model is typically based on _______________ and represents key
assumptions underlying supposed cause-and-effect relationships in the marketing system.
a. cross-sectional surveys
b. the experience and judgement of the decision-maker
c. hypotheses tested by laboratory experiments
d. conclusive research which has a low level of systematic error
Answer: B
While descriptive research can aid in developing a causal model, the decision-maker’s
experience and judgment is needed.
14) _______________ research examines the degree to which marketing variables are
associated with output measures of interest, such as sales, profit, ad awareness, or market
share.
a. Exploratory
b. Descriptive
c. Causal
d. Market potential
Answer: B
Descriptive research examines the degree of association among various variables in an effort
to determine significant relationships.
15) _______________ is a type of conclusive research designed to gather evidence regarding
the cause-and-effect relationships operating in a marketing system.
a. Exploratory research
b. Descriptive research
c. Causal research
d. Experimental research
Answer: C
The objective of causal research is to gather information regarding a cause-and-effect
relationship.
16) The main source(s) of data for causal research include:
a. simulation
b. experimentation
c. questioning of respondents through surveys
d. all of the above
e. both b and c
Answer: E
The main sources of data for causal research are questioning respondents through surveys and
conducting experiments.
17) Once a course of action is selected and the marketing program is implemented,
_______________ research is needed to ensure the execution of the marketing program is
meeting pre-set expectations.
a. exploratory
b. market share
c. performance-monitoring
d. causal
Answer: C
Performance-measuring research is needed to measure the results of marketing decisions to
ensure deviations from pre-set plans have not occurred.
18) In longitudinal research with a traditional panel,
a. the same variables are repeatedly measured over time with different samples
b. the same variables are repeatedly measured over time with the same sample
c. different variables are measured over time with different samples
d. different variables are measured over time with the same sample
Answer: B
With the traditional panel, the same variables are measured over time with the same sample.
19) In longitudinal research panels, new members tend to increase or over-report the behavior
being measured, such as watching television or food purchasing. This is called
a. unrepresentative sampling
b. response bias
c. endogeneity
d. observation error
Answer: B
Research has indicated that new members on a panel are often bias in their initial responses,
because they pay more attention to the behaviors being measured.
20) The most common source of marketing data is
a. observation of respondents
b. secondary data
c. communication with respondents
d. laboratory experimentation
Answer: C
Respondents are the major source of marketing data, and communication is the most common
respondent method used.
21) All of the following statements about focus groups is true except
a. they are free-flowing unstructured situations designed to stimulate ideas and insights into a
problem situation through group interaction
b. they typically involves posing probing, open-ended questions
c. they typically lasts 1 to 2 hours
d. they involve extensive questioning of respondents individually
Answer: D
In-depth interviews, not focus groups, uses extensive questioning of respondents individually.
22) Case histories involve
a. recognizing and recording relevant objects, events, and important and commonplace
activities
b. intense investigation of prior situations that are analogous or appear relevant to the current
one
c. creating an analogous version of a real-world phenomenon through a likeness or formal
model
d. directly manipulating key variables and observing the effect on dependent variables
Answer: B
Case histories is an established method in behavioral sciences, because past history can shed
light on current events.
23) Marketing simulation involves
a. recognizing and recording relevant objects, events, and important and commonplace
activities
b. intense investigation of prior situations that are analogous or appear relevant to the current
one
c. creating an analogous version of a real-world phenomenon through a likeness or formal
model
d. directly manipulating key variables and observing the effect on dependent variables
Answer: C
Marketing simulation is an effective way of examining market behavior through creating
models.
24) A particularly thorny issue in marketing simulation is _______________, which is the
idea that what a firm does affects consumers, whose decisions also affect the firm and its
competition, all of whom are making multiple decisions over time.
a. endogeneity
b. response bias
c. sensitivity analysis
d. unrepresentative sampling
Answer: A
Endogeneity creates a thorny issue for marketing simulations, because modeling cannot really
represent the multiplicity of interactions that occur with consumers, the competition, and the
market.
25) Which of the following is not an advantage of simulation over other data sources?
a. Development of the model is relatively simple and straightforward.
b. It allows evaluation of alternative marketing strategies.
c. Simulation can be conducted in complete secrecy.
d. It can be used as a training device within the organization.
e. Simulation encourages creativity since radical strategy changes can be evaluated.
Answer: A
A major limitation of market simulation is the difficulty of developing a valid simulation
model.
26) Experimentation involves
a. recognizing and recording relevant objects, events, and important and commonplace
activities
b. intense investigation of prior situations that are analogous or appear relevant to the current
one
c. creating an analogous version of a real-world phenomenon through a likeness or formal
model
d. directly manipulating key variables and observing the effect on dependent variables
Answer: D
The advantage of experimentation is that researchers can imply cause-and-effect since key
variables are controlled.
27) All of the following statements about experiments are true except
a. they study one or more independent variables
b. their objective is to measure the effects of dependent variables on an independent variable
c. they involve consciously controlling independent variables
d. they allow key variables to be directly manipulated rather than simply occurring
Answer: B
Experimentation involves manipulating independent variables, while controlling other
independent variables, in order to measure the impact on a dependent variable.
28) Syndicated data sources
a. are low-cost sources of secondary data
b. provide primary data for subscription clients
c. include government publications, trade association data, books, and periodicals
d. provide standardized data to an array of clients
Answer: D
Syndicated sources are primarily for-profit organizations that maintain consumer panels to
collected standardized data for an array of clients.
29) The proliferation of scanner data has caused significant changes in how marketing
research is conducted. These changes include all of the following except
a. greater emphasis by marketers on consumer attitudes and awareness
b. a large number of trained professionals who can analyze and interpret the data
c. significantly better data in volume/share tracking, promotion tracking, and consumer
purchases
d. availability of timely data
Answer: B
The wide use of scanner data created a shortage of trained professionals.
30) Which of the following is not a component of MDSS?
a. standardized data inputs and outputs
b. database management
c. display formats
d. statistical analyses
e. modeling
Answer: A
The MDSS system is a computer-based, interactive system used by managers to aid in
decision-making. A good MDSS should allow for user-friendly interaction and should be
flexible, so that the manager can sort, average, total, or otherwise manipulate the data to look
at them from a unique perspective, revealing both expected and unsuspected relationships.
31) In conducting marketing research, the first step in determining data needs should be to
a. collect primary data
b. search for internal secondary data
c. search for external secondary data
d. purchase syndicated data
Answer: B
Internal secondary data should be searched first thoroughly before turning to external
secondary sources, because internal data is cheaper and often more relevant.
32) All of the following would be disadvantages of secondary data (relative to primary data)
except
a. data fit
b. level of aggregation
c. cost
d. accuracy
Answer: C
Cost is an advantage since secondary data tend to be less costly than collecting primary data.
33) The degree of fit between secondary data and the information needs of a project is
influenced primarily by
a. cost and timeliness of the data
b. response bias and sampling error
c. accuracy of the data
d. units of measurement and definition of classes
Answer: D
The degree of fit can range from completely inadequate to quite close and is influenced by
units of measurement and definition of classes.
34) A marketing manager has found secondary data on the spending habits of teenagers
broken down by gender and also by race, independently, but needs it broken down by both
(e.g., African American females versus European American males). This is an example of the
secondary data problem of
a. level of aggregation
b. difference in units
c. unrepresentative sampling
d. systematic bias
Answer: A
Level of aggregation refers to data not broken down or cross-tabulated in a way that is
consistent with a researcher’s information needs.
35) In evaluating the accuracy of secondary data, all of the following are important to
consider except
a. the source of the data
b. the date the data were collected
c. the purpose of the publication of the data
d. general evidence regarding the quality of the data, such as research design
Answer: B
The three criteria in evaluating the accuracy of secondary data are the source of data (e.g.,
original or acquired source), the purpose of a publication (to detect those who would
misrepresent and distort statistics to support a position or belief), and the general evidence
regarding the quality of the data. The date data were collected may impact its applicability,
but does not reflect on its accuracy.
36) U.S. Bureau of the Census data is reported in three main headings, including all of the
following except
a. people
b. business
c. demographics
d. geography
Answer: C
The three main headings of U.S. census data are people, business, and geography.
37) A metropolitan statistical area (MSA) is a city or a Census Bureau-defined urbanized area
with _______________ or more inhabitants.
a. 50,000
b. 100,000
c. 300,000
d. 500,000
Answer: A
By definition, a MSA has 50,000 or more inhabitants.
38) Beginning in 2005, the U.S. Census Bureau conducted the American Community Survey
(ACS) to
a. collect data of community interest during decennial censuses
b. decrease non-response error to the census through Title 13 mandatory response to the
survey
c. increase data collection to better facilitate segmentation of local housing and business data
by community
d. replace the “long form” of the decennial census with annual collection of sample data
Answer: D
Beginning in 2005, the Census Bureau conducted the American Community Survey (ACS), a
“rolling census” to collect sample data every year on the population characteristics formerly
gathered in the “long-form” questions. This culminated in the first short-form only census in
2010. The ACS survey includes a maximum of 48 “person questions” per household member,
covering topics such as age, race, Hispanic origin, educational attainment, veteran status,
disabilities, and income.
39) Secondary international data sources are helpful in providing all of the following types of
general information except
a. economic indicators
b. political stability
c. socioeconomic data
d. exchange-rate fluctuations
Answer: C
Data are often not comparable across countries, as the definitions used for variables are
sometimes different (particularly so for socioeconomic categories), and the timeframes in
which the data are collected may be different.
40) Although there are countless sources of marketing data, they can all be categorized into at
least one of the following basic groups except
a. segmentation
b. analogous situations
c. experimentation
d. secondary data
Answer: A
The basic groups are respondents, analogous situations, experimentation, and secondary data.
SHORT ANSWER
1) In describing the user characteristics of a product for a consumer profile study, what types
of information should be included in the profile?
Answer: Profiles should include demographic, socioeconomic, geographic, and
psychographic characteristics, as well as consumption rates.
2) Explain the difference between traditional research panels and omnibus research panels in
longitudinal studies.
Answer: Both panels use the same sample respondents. Traditional research panels measure
the same variables over time, whereas omnibus panels measure different variables over time.
3) Identify the four major categories of data sources for marketing research applications.
Answer: Data sources can all be categorized into at least one of four basic groups:
communication with respondents, analogous situations, experimentation, and secondary data.
4) What are the advantages of using internal secondary data?
Answer: Three advantages of internal secondary data are their low cost, their accuracy, and
their easy availability.
5) Discuss the relative advantages and disadvantages of secondary data.
Answer: Advantages of secondary data include lower financial and time costs. Disadvantages
relate to the extent the data fit the information needs of the project in terms of aggregation,
accuracy, and timeliness.
ESSAY
1) Describe some purposes for which exploratory research is used.
Answer: Exploratory research is used to facilitate problem recognition and definition,
formulate hypotheses, and narrow possibilities. It is appropriate when the research objectives
include identifying or more precisely formulating problems or opportunities, gaining
perspective on the breadth of variables operating in a situation, establishing priorities
regarding the potential significance of various problems or opportunities, gaining
management and researcher perspective concerning the character of the problem, formulating
possible courses of action, and gathering information on the possible pitfalls associated with
doing conclusive research. Students should include at least a few of these possible uses.
2) Discuss when descriptive research is appropriate.
Answer: Descriptive research is appropriate when the research objectives include portraying
the characteristics of marketing phenomena and determining the frequency of occurrence,
determining the degree to which marketing variables are associated, or making predictions
regarding the occurrence of marketing phenomena.
3) Discuss the advantages of using marketing simulation compared to collecting primary
data.
Answer: Advantages of marketing simulation compared to collecting primary data include
lower costs, that it can be conducted with complete non-disclosure within an organization,
that it allows for the evaluation of alternative marketing strategies, that the consequences of
changes in the marketing system can be evaluated without risk of making changes to the real
system, and that it can be used as a training device for members of the organizations.
4) What is the objective of experimentation?
Answer: The objective of experimentation is twofold: to measure the effects of the
independent variables on a dependent variable and to simultaneously control for other
variables that might confuse one’s ability to make valid causal inferences.
5) Technology has changed the way marketing research is now conducted. Discuss
specifically the changes spurred by the proliferation of scanner data.
Answer: Changes induced by the proliferation of scanner data include:
1) better data in volume/share tracking, promotion tracking, and consumer purchases
2) proliferation of high-quality, user-friendly analysis packages
3) shortening of reaction time by advertisers since data can be gathered on an on-going basis
4) availability of timely data
5) ability to determine short-term effects of pricing, trade deals, and certain promotions
6) greater emphasis by marketers on consumer attitudes and awareness tracking
7) accurate and effortless tracking of consumer panel members’ data
8) shortage of trained professionals who can analyze and interpret scanner data
Test Bank for Modern Marketing Research: Concepts, Methods, and Cases
Fred M. Feinberg, Thomas Kinnear, James R. Taylor
9781133188964, 9781133191025, 9780759391710
