Preview Extract
Chapter 4 1. ________ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers. A) Marketing insights B) Marketing metrics C) Marketing channels D) Marketing information systems E) Marketing-mix models Answer: A Rationale: Marketing insights refer to the deep understanding derived from data and analysis, providing valuable information about market dynamics, consumer behavior, and competitive landscape. This understanding helps marketers make informed decisions and strategies. Marketing insights go beyond just measuring metrics or analyzing channels; they offer actionable intelligence about market trends and consumer preferences. 2. ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. A) Marketing communications B) Internal marketing C) Marketing research D) Market segmentation E) Marketing planning Answer: C Rationale: Marketing research involves a structured process of gathering, analyzing, and interpreting data to address specific marketing challenges or opportunities. It is systematic in its approach, starting from designing research methodologies to reporting actionable insights. Marketing research helps companies understand consumer needs, market trends, competitor strategies, and other factors influencing marketing decisions. 3. Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers. Anne is attempting to conduct market research by _______. A) studying customer behavior B) forming alliances with competing firms C) using experimental research techniques D) checking out rivals E) tapping into marketing partner expertise Answer: D Rationale: Anne is conducting competitive market research by visiting other salons to gather information about their services, pricing, and customer experiences. By studying her rivals, Anne can gain insights into the local market landscape, identify gaps or opportunities, and refine her own salon's offerings to better meet customer needs. 4. Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Media Research)? A) custom marketing research firms B) syndicated-service research firms C) specialty-line marketing research firms D) generic marketing research firms E) focused marketing research firms Answer: B Rationale: Syndicated-service research firms collect data from multiple sources and then sell it to various clients for a fee. These firms specialize in gathering comprehensive market information, such as consumer behavior, industry trends, and trade data, which is valuable to companies for making strategic decisions and understanding market dynamics. 5. Amity Inc., is a firm which collects and processes household data and sells it to other firms which produce consumer durables. Amity is an example of a ________. A) custom marketing research firm B) specialty-line marketing research firm C) syndicated-service research firm D) generic marketing research firm E) focused marketing research firm Answer: C Rationale: Amity Inc. fits the description of a syndicated-service research firm because it collects and processes household data and sells it to multiple firms producing consumer durables. Syndicated-service research firms offer standardized data and reports to a wide range of clients, enabling them to gain insights into consumer preferences and market trends. 6. A field-service firm is a ________. A) custom marketing research firm B) syndicated-service research firm C) specialty-line marketing research firm D) consumer marketing research firm E) social marketing research firm Answer: C Rationale: A field-service firm falls under the category of specialty-line marketing research firms. These firms specialize in conducting specific types of marketing research services, such as field interviews, data collection, and observational studies, tailored to meet the unique needs of clients. 7. You are the marketing research director of a medium-sized manufacturing firm and you would like to engage an outside marketing research firm to conduct field interviews. Which of the following options categories of marketing research firms should you use? A) syndicated-service research firms B) custom marketing research firms C) global research management firms D) specialty-line marketing research firms E) brand management specialty research firms Answer: D Rationale: Specialty-line marketing research firms focus on providing specialized research services, such as field interviews, which align with the specific needs of clients. In this scenario, engaging a specialty-line marketing research firm would be the most suitable option to conduct field interviews for the manufacturing firm. 8. The marketing research process begins by ________. A) developing a research plan B) defining the problem, the decision alternatives, and research objectives C) analyzing the internal environment D) reading marketing research journals E) contacting a professional research consultant Answer: B Rationale: Defining the problem, decision alternatives, and research objectives is the initial step in the marketing research process. This stage involves identifying the key issues or questions that need to be addressed, determining the scope of the research, and setting clear objectives to guide the entire research endeavor. 9. Which of the following is considered to be the last step in the marketing research process? A) presenting findings B) analyzing information C) controlling the environment D) arriving at a decision E) drafting the report Answer: D Rationale: Arriving at a decision marks the culmination of the marketing research process. After analyzing data, interpreting findings, and presenting insights, decision-makers use the research outcomes to make informed decisions regarding marketing strategies, product development, pricing, or other business actions. 10. If the goal of marketing research is to shed light on the real nature of a problem and to suggest possible solutions or new ideas, the research is said to be ________. A) descriptive B) quantitative C) primary D) secondary E) exploratory Answer: E Rationale: Exploratory research aims to explore and understand a problem or phenomenon in-depth, often with limited prior knowledge or hypotheses. Its primary objective is to generate insights, ideas, or hypotheses rather than testing specific hypotheses or measuring variables quantitatively. Exploratory research is useful when the researcher seeks to uncover underlying factors, motivations, or trends influencing a particular situation or issue. 11. Unistar Inc., is an FMCG company that produces a wide range of offerings such as grocery items and personal care products. If Unistar wants to estimate the demand for its new line of body moisturizers, which are all priced at $18, it should opt for ________ research. A) descriptive B) exploratory C) prescriptive D) causal E) qualitative Answer: A Rationale: Descriptive research aims to describe characteristics of a population or phenomenon being studied. In this case, Unistar Inc. wants to estimate the demand for its new line of body moisturizers, which involves understanding consumer preferences, purchasing behaviors, and potential market size. Descriptive research helps in quantifying these aspects, providing insights into the demand for the product at a specific price point. 12. A company would like to study the impact of advertising expenditure on sales and sales revenue. This is an example of ________ research. A) prescriptive B) causal C) secondary D) exploratory E) qualitative Answer: B Rationale: Causal research seeks to identify cause-and-effect relationships between variables. In this scenario, the company wants to determine whether advertising expenditure directly influences sales and sales revenue. By conducting causal research, the company can analyze the impact of advertising on sales performance, helping to inform future marketing decisions and budget allocations. 13. The marketing manager needs to know the cost of the research project before approving it. During which stage of the marketing research process would such a consideration most likely take place? A) Step 1 defining the problem B) Step 4 analyzing the information C) Step 5 drafting the report D) Step 2 developing the research plan E) Step 3 collecting information Answer: D Rationale: Cost considerations typically occur during the development of the research plan (Step 2) in the marketing research process. At this stage, decisions regarding research methodology, data collection methods, sample size, and other logistical aspects are made, which directly influence the budgetary requirements of the research project. 14. Designing a research plan calls for decisions on all of the following EXCEPT ________. A) research objectives B) data sources C) research approaches D) research instruments E) sampling plans Answer: A Rationale: Designing a research plan involves making decisions on various aspects such as data sources, research approaches, research instruments, sampling plans, and data analysis techniques. However, research objectives are not decided during the planning phase; they are determined in the initial stage of defining the research problem. 15. ________ are data that were collected for another purpose and already exist. A) Primary data B) Secondary data C) Primitive data D) Cross-sectional data E) Ordinate data Answer: B Rationale: Secondary data refers to pre-existing data that were collected for purposes other than the specific research at hand. These data sources can include published reports, government statistics, industry publications, academic journals, and internal company records. 16. Before Sandra opened her florist shop she read all she could about the floral industry. She also consulted several published research reports to understand growth patterns in the local area with particular interest in the location of florists throughout the city. This ________ helped her to decide on the location of her store. A) primary data B) secondary data C) primitive data D) tertiary information E) licensed information Answer: B Rationale: Sandra's consultation of published research reports represents the use of secondary data. By accessing existing information about the floral industry and local market conditions, Sandra gained insights that informed her decision-making process regarding the location of her florist shop. 17. Primary data can be collected in several ways. Installing CCTV cameras in a retail store whereby consumers' actions can be recorded is an example of ________. A) focus group research B) survey research C) observational research D) behavioral research E) experimental research Answer: C Rationale: Observational research involves observing and recording behaviors, actions, or phenomena as they naturally occur, without intervention or manipulation by the researcher. Installing CCTV cameras in a retail store allows researchers to observe consumers' actions and behaviors, providing valuable insights into their shopping habits, preferences, and interactions with products and displays. 18. ________ approach uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work. A) Cognitive research B) Inductive research C) Archaeological research D) Ethnographic research E) Deductive research Answer: D Rationale: Ethnographic research involves immersing researchers into the lives of individuals or communities to gain a deep understanding of their behaviors, beliefs, and cultural practices. This approach draws on concepts and methodologies from anthropology and other social sciences to explore how people live and work within their cultural contexts. 19. The goal of ethnographic research is to ________. A) capture cause-and-effect relationships by eliminating competing explanations of the observed findings B) understand consumers' behavior by observing a sample groups discussing various topics of interest at length C) study demographic variables such as age, gender, income, education, and so on, in relation to consumer buying patterns D) analyze customers' purchasing behavior through catalog purchases and customer databases E) immerse the researcher into consumers' lives to uncover unarticulated desires that might not surface in any other form of research Answer: E Rationale: The goal of ethnographic research is to immerse the researcher into the natural environment of the subjects being studied, allowing for in-depth exploration of behaviors, motivations, and cultural influences that may not be readily apparent through other research methods. Ethnographic research aims to uncover unarticulated desires, preferences, and needs of individuals or communities by observing and participating in their daily lives. 20. A(n) ________ is a gathering of 6 to 10 people carefully selected by researchers based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length. A) target group B) pilot group C) focus group D) customer base E) ethnographic group Answer: C Rationale: A focus group is a qualitative research technique that involves bringing together a small group of individuals with specific characteristics or traits to participate in a facilitated discussion about a particular topic. Focus groups are commonly used to gather insights, opinions, and perceptions from participants regarding products, services, advertising, or other marketing-related issues. 21. As the marketing manager of Cominform Pvt. Ltd., a manufacturer of health drinks, you have selected 10 individuals who match the profile of your target customer, to participate in a discussion on changing lifestyle trends related to health. You have also hired a skilled moderator to facilitate the discussion and ensure that everyone participates and stays focused on the topic. The moderator provides questions and probes based on the "script" prepared by you. The discussions are also recorded for further analysis. Which of the following methods of acquiring primary data is being used in this case? A) observational research B) surveys C) behavioral data D) experiments E) focus groups Answer: E Rationale: The method being used in this case is focus groups. Focus groups involve a small group of individuals, carefully selected based on certain criteria, coming together for a facilitated discussion on a specific topic. In this scenario, the marketing manager has organized a discussion with individuals matching the target customer profile to gather insights on changing lifestyle trends related to health. 22. Why must the researchers avoid generalizing from focus-group participants to the whole market? A) Participants' responses are not reliable. B) Most of the participants are likely to be ignorant about the topic of discussion. C) The size of the group is too small and the sample is not drawn randomly. D) Most of the participants are likely to exhibit similar tastes and preferences. E) The participants usually come from diverse backgrounds. Answer: C Rationale: Generalizing from focus-group participants to the whole market should be avoided because the size of the group is typically small, and the sample is not drawn randomly. Therefore, the insights gained from focus groups may not represent the broader population accurately. 23. Which of the following is used to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population? A) observational research B) descriptive research C) quantitative research D) survey research E) experimental research Answer: D Rationale: Survey research is used to assess people's knowledge, beliefs, preferences, and satisfaction by collecting data from a sample of the general population through structured questionnaires or interviews. Surveys allow researchers to gather quantitative data on various aspects of interest. 24. The most scientifically valid research is ________ research. A) observation B) focus-group C) survey D) behavioral E) experimental Answer: E Rationale: Experimental research is considered the most scientifically valid because it allows researchers to establish cause-and-effect relationships by controlling for potential confounding variables. In experimental research, researchers manipulate independent variables to observe their effects on dependent variables under controlled conditions. 25. ________ is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. A) Experimental research B) Behavioral research C) Observational research D) Focus group research E) Descriptive research Answer: A Rationale: Experimental research is designed to capture cause-and-effect relationships by manipulating independent variables and observing their effects on dependent variables while controlling for extraneous variables. This method helps eliminate competing explanations of observed findings and establishes causal relationships. 26. Which of the following rules must be kept in mind while framing a questionnaire? A) Use broad and loosely defined words in the questions. B) Avoid using response bands. C) Ensure that fixed responses overlap. D) Frame hypothetical questions. E) Allow for the answer "other" in fixed-response questions. Answer: E Rationale: While framing a questionnaire, it's essential to allow for the answer "other" in fixed-response questions to accommodate responses that may not fit neatly into predetermined categories. This ensures that respondents have the opportunity to provide additional insights or perspectives beyond the options provided. 27. Because of its flexibility, ________ are the most common technique of collecting primary data. A) questionnaires B) telephonic interviews C) behavioral research studies D) experimental designs E) focus groups Answer: A Rationale: Questionnaires are the most common technique of collecting primary data due to their flexibility and scalability. They can be administered through various channels, such as online surveys, mail surveys, or in-person interviews, making them suitable for a wide range of research purposes and populations. 28. ________ allow respondents to answer in their own words and often reveal more about how people think. A) Open-end questions B) Dichotomous questions C) Likert scale questions D) Multiple choice questions E) Semantic differential questions Answer: A Rationale: Open-end questions allow respondents to provide free-form responses in their own words, enabling them to express their thoughts, opinions, and experiences without being constrained by predefined response options. These questions often reveal deeper insights into respondents' perspectives and thought processes. 29. Which of the following is true of qualitative research? A) It is a structured measurement approach that permits a range of possible responses. B) It is indirect in nature, so consumers may be less guarded. C) It requires large sample sizes. D) Its results can be easily generalized to broader populations. E) It generally results in similar results and conclusions across researchers. Answer: B Rationale: Qualitative research is indirect in nature, allowing researchers to explore underlying motivations, attitudes, and behaviors through open-ended questioning and observation. Because qualitative research focuses on depth rather than breadth, it often involves smaller sample sizes and does not aim for statistical generalizability. 30. A scale that connects two bipolar words is called a ________. A) dichotomous question B) multiple-choice question C) Likert scale D) semantic differential E) word association Answer: D Rationale: A semantic differential scale is a measurement tool consisting of two opposing bipolar adjectives or phrases connected by a continuum. Respondents are asked to indicate their position on the scale relative to the two poles, providing insights into their attitudes, perceptions, or evaluations of a particular concept or object. 31. A question that respondents can answer in an almost unlimited number of ways is called a ________. A) structured question B) closed-end question C) completely unstructured question D) dichotomous question E) multiple choice question Answer: C Rationale: A completely unstructured question allows respondents to provide answers in their own words without any limitations or predefined response options. This type of question provides flexibility for respondents to express their thoughts, opinions, or experiences freely. 32. "Truancy should be checked in schools: 1. Strongly disagree, 2. Disagree, 3. Neither agree nor disagree, 4. Agree, 5. Strongly agree." This is an example of a ________. A) Likert scale B) semantic differential C) multiple choice question D) Thematic Appreciation Test (TAT) E) dichotomous question Answer: A Rationale: This is an example of a Likert scale, which presents respondents with a statement or question followed by a series of response options ranging from strongly disagree to strongly agree. Respondents choose the option that best reflects their opinion or attitude. 33. An item in a questionnaire states that "most politicians cannot be trusted." Respondents are required to provide their answers by choosing any one of the following options: 1. Strongly disagree, 2. Disagree, 3. Neither agree nor disagree, 4. Agree, 5. Strongly agree. This is an example of a ________. A) semantic differential B) word association question C) Thematic Appreciation Test (TAT) D) Likert scale E) dichotomous question Answer: D Rationale: This is an example of a Likert scale question, where respondents are asked to indicate their level of agreement or disagreement with a statement using a predefined scale of responses. 34. If a marketing researcher chooses to use word associations, the researcher is using ________. A) closed-end questions B) Likert scale questions C) open-end questions D) rating scale questions E) semantic differential questions Answer: C Rationale: Word associations involve presenting respondents with a stimulus (e.g., a word or phrase) and asking them to provide the first word or phrase that comes to mind. This is an example of an open-end question, as respondents can provide a wide range of responses. 35. In which of the following types of tests is a picture presented and respondents are asked to make up a story about what they think is happening or may happen in the picture? A) visual perception test B) Rorschach Ink-blot Test C) story completion test D) Thematic Apperception Test E) Renfrew Action Picture Test Answer: D Rationale: In the Thematic Apperception Test (TAT), respondents are presented with ambiguous pictures and asked to create a story about what is happening or what might happen in the depicted scene. This test is commonly used in psychology and marketing research to explore individuals' perceptions, motivations, and attitudes. 36. The question "What is your opinion of the measures taken by the government to control inflation?" is an example of a ________ question. A) semantic differential B) word association C) completely unstructured D) story completion E) dichotomous Answer: C Rationale: This question is an example of a completely unstructured question because respondents are free to express their opinions on the government's measures to control inflation without any predefined response options or limitations. 37. In which of the following qualitative methods are subjects asked to complete an incomplete stimulus? A) word association B) projective techniques C) visualization D) brand personification E) laddering Answer: B Rationale: Projective techniques involve presenting respondents with ambiguous or incomplete stimuli, such as images or phrases, and asking them to respond based on their perceptions, feelings, or associations. This method is used to uncover subconscious thoughts, motivations, and attitudes. 38. ________ requires people to create a collage from magazine photos or drawings to depict their perceptions. A) Brand personification B) Projective technique C) Visualization D) Laddering E) Metaphor Elicitation Technique Answer: C Rationale: Visualization involves asking individuals to create visual representations of their thoughts, perceptions, or feelings. In this case, creating a collage from magazine photos or drawings allows participants to depict their perceptions visually, providing insights into their cognitive processes and associations. 39. The primary purpose of ________ is to identify the range of possible brand associations in consumers' minds. A) experimental research B) deshboarding C) laddering D) semantic differentials E) word associations Answer: E Rationale: Word associations are used to identify the range of possible brand associations in consumers' minds by presenting respondents with a brand or product name and asking them to provide the first word or phrase that comes to mind. This technique helps marketers understand the salience and significance of various brand attributes and associations. 40. With respect to the sampling plan, three decisions must be made: (1) the sampling unit—who is to be surveyed; (2) sample size—how many people should be surveyed; and (3) ________. A) sample cost—how much does sampling cost B) surveyor skill—who should conduct the survey C) sample security—how should the sample data be protected D) sampling procedure—how should respondents be chosen E) sample supervisor—who leads the sampling effort Answer: D Rationale: The third decision in the sampling plan involves determining the sampling procedure, which outlines how respondents should be chosen to ensure a representative sample. This decision includes considerations such as sampling methods (e.g., random sampling, stratified sampling) and sampling techniques (e.g., simple random sampling, cluster sampling). 41. During a focus-group session, one set of participants indicated that Dell computers reminded them of a surfer, Apple computers of a mad scientist, and IBM was equated to Ebenezer Scrooge from Charles Dickens's tale, "A Christmas Carol". Which of the following qualitative research approaches relates to the approach described above? A) projective techniques B) visualization C) brand personification D) laddering E) brand architecture Answer: C Rationale: Brand personification involves assigning human characteristics or personalities to brands. In this scenario, participants associated specific computer brands with distinct human archetypes, reflecting the process of brand personification. 42. According to the concept of ________, a series of increasingly more specific "why" questions can reveal consumer motivation and consumers' deeper, more abstract goals. A) word association B) projection C) visualizing D) brand personification E) laddering Answer: E Rationale: The concept described is laddering. Laddering involves asking a series of increasingly specific "why" questions to uncover deeper consumer motivations and abstract goals related to their preferences or behaviors. 43. ________ measure the interest or emotions aroused by exposure to a specific ad or picture. A) Tachistoscopes B) Polygraphs C) Galvanometers D) Audiometers E) GPS systems Answer: C Rationale: Galvanometers measure physiological responses such as skin conductance or sweating, which can indicate emotional arousal or interest in response to stimuli like advertisements or pictures. 44. ________ flash an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds. A) Tachistoscopes B) Audiometers C) Polygraphs D) GPS systems E) Galvanometers Answer: A Rationale: Tachistoscopes are devices that flash visual stimuli, such as advertisements, to subjects for brief durations, ranging from less than one hundredth of a second to several seconds. They are used to measure visual perception and attention. 45. ________ attached to television sets in participating homes now record when the set is on and to which channel it is tuned. A) Tachistoscopes B) Polygraphs C) GPS systems D) Audiometers E) Galvanometers Answer: D Rationale: Audiometers are devices attached to television sets to record when the set is on and which channel it is tuned to. They are used to collect data on television viewing habits in participating households. 46. Which of the following statements about telephonic interview is true? A) It usually takes a long time to gather information through telephonic interviews. B) The interviewer is unable to clarify questions if respondents do not understand them. C) The response rate for telephonic interviews has been typically lower than for mailed questionnaires. D) The U.S. government generally encourages telemarketing by firms. E) Telephone interviewing in the U.S. is getting more difficult because of consumers' growing antipathy toward telemarketers. Answer: E Rationale: The statement that telephone interviewing in the U.S. is getting more difficult because of consumers' growing antipathy toward telemarketers is true. Increasingly, consumers are reluctant to participate in telephone interviews due to concerns about telemarketing and privacy invasion. 47. If a marketing researcher wishes to reach those people who would not give personal interviews or whose responses might be biased or distorted by interviewers, he or she should use ________. A) mail questionnaires B) telephonic interviews C) online interviews D) focus groups E) observational research Answer: A Rationale: Mail questionnaires are suitable for reaching individuals who may be unwilling to participate in personal interviews or whose responses might be influenced by interviewer bias. Mail surveys offer anonymity and allow respondents to complete the questionnaire at their own pace, reducing potential biases. 48. Which of the following is considered to be the most versatile of all the contact methods? A) mail questionnaires B) telephone interviews C) personal interviews D) online interviews E) field trials Answer: C Rationale: Personal interviews are considered the most versatile contact method because they allow for flexibility in probing, clarification, and rapport building. Interviewers can adapt their approach based on respondent reactions and provide additional explanations as needed. 49. In ________ interviews, researchers stop people at a shopping mall or busy street corner and request an interview on the spot. A) intercept B) arranged C) group D) structured E) behavioral Answer: A Rationale: In intercept interviews, researchers approach people in public places such as shopping malls or street corners and request immediate interviews. This method is used to gather data from individuals who may not be accessible through other means. 50. Which of the following is an advantage of personal interviews? A) It is a relatively inexpensive method of gathering information. B) The possibility of interviewer bias is minimized. C) Participants can choose to respond at their own convenience. D) It facilitates anonymous responses. E) Interviewers can record additional observation about the respondent such as body language. Answer: E Rationale: An advantage of personal interviews is that interviewers can record additional observations about the respondent, such as body language or facial expressions, which can provide valuable context and insights beyond the verbal responses. 51. Which of the following is one of the key disadvantages of online market research? A) Online research is expensive. B) Online research is time consuming. C) People tend to be dishonest online. D) Online research lacks versatility. E) Samples can be small and skewed. Answer: E Rationale: One of the key disadvantages of online market research is that samples can be small and skewed, potentially leading to results that are not representative of the target population due to self-selection biases and limited sample diversity. 52. Which of the following is an advantage of online research? A) Samples are generally representative of the target population. B) Members of online panels and communities tend to have low turnover. C) Online research is relatively free of technological problems and inconsistencies. D) People tend to be honest and thoughtful online. E) Online research is slow but gather detailed information. Answer: D Rationale: An advantage of online research is that people tend to be honest and thoughtful in their responses. The anonymity and privacy provided by online surveys can encourage respondents to provide candid feedback, leading to more reliable data. 53. The ________ phase of marketing research is generally the most expensive and the most prone to error. A) contact B) research planning C) questionnaire design D) interview design E) data collection Answer: E Rationale: The data collection phase of marketing research is often the most expensive and prone to error due to factors such as the need for large sample sizes, potential respondent biases, and logistical challenges in gathering data from diverse sources. 54. After collecting the relevant information, the next step in the marketing research process is to ________. A) develop the research plan B) define the problem and research objectives C) present the project report D) make the final decision E) analyze the acquired data Answer: E Rationale: After collecting relevant information, the next step in the marketing research process is to analyze the acquired data. This involves processing, organizing, and interpreting the data to draw meaningful conclusions and insights. 55. After computing averages and measures of dispersion for the major variables and applying advanced statistical techniques and decision models in the hope of discovering additional findings from the gathered information, the researchers ________. A) define the problem, the decision alternatives, and the research objectives B) present findings relevant to the major marketing decisions facing management C) evaluate the costs associated with data collected D) analyze the appropriateness of the data sources used E) develop the research plan Answer: B Rationale: After conducting data analysis, researchers present findings relevant to the major marketing decisions facing management. This involves communicating key insights, trends, and recommendations derived from the data analysis to inform decision-making. 56. Why do firms employ more than one persona to gather information about the target consumers? A) Within a group, consumers usually exhibit similar tastes and preferences. B) The distribution of income and wealth are more or less equal across different customer segments. C) Although customers have unique needs, essentially their basic needs and requirements are the same. D) Any target market may have a range of consumers who vary along a number of key dimensions. E) The firms want to provide consumers with a greater number of product choices. Answer: D Rationale: Firms employ more than one persona to gather information about target consumers because any target market may have a range of consumers who vary along a number of key dimensions such as demographics, psychographics, and behaviors. Using multiple personas allows firms to understand and cater to the diverse needs and preferences of their target audience. 57. A ________ has been defined as a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. A) marketing metric B) marketing channel system C) marketing decision support system D) marketing research system E) database management system Answer: C Rationale: A marketing decision support system (MDSS) is a coordinated collection of data, systems, tools, and techniques used by an organization to gather, interpret, and utilize relevant information from the business environment for marketing decision-making purposes. 58. All of the following are considered to be among the seven characteristics of good marketing research EXCEPT ________. A) the scientific method B) research creativity C) multiple methods D) ethical marketing E) independence of models and data Answer: E Rationale: Independence of models and data is not typically considered one of the characteristics of good marketing research. The other options, including the scientific method, research creativity, multiple methods, and ethical marketing, are recognized as essential characteristics of high-quality marketing research. 59. ________ are a structured way to disseminate the insights gleaned from the two complementary approaches to measuring marketing productivity within the organization. A) Marketing metrics B) Marketing decision support systems C) Marketing dashboards D) Marketing segments E) Marketing mix models Answer: C Rationale: Marketing dashboards are a structured way to disseminate insights gleaned from complementary approaches to measuring marketing productivity within an organization. They provide a visual representation of key performance indicators and metrics related to marketing activities and outcomes. 60. Two complimentary approaches to measure marketing productivity are ________ and marketing-mix modeling. A) quality ratios B) salesperson satisfaction rates C) marketing metrics D) retailer satisfaction indices E) customer feedback surveys Answer: C Rationale: Two complementary approaches to measure marketing productivity are marketing metrics and marketing-mix modeling. Marketing metrics involve tracking and analyzing key performance indicators related to marketing activities, while marketing-mix modeling uses statistical techniques to assess the impact of marketing efforts on sales and other outcomes. 61. Which of the following refers to the set of measures that help firms to quantify, compare, and interpret their marketing performance? A) marketing diagnostics B) marketing information systems C) marketing simulation D) marketing intelligence E) marketing metrics Answer: E Rationale: Marketing metrics refer to the set of measures that help firms quantify, compare, and interpret their marketing performance. These metrics provide insights into various aspects of marketing activities and outcomes, allowing companies to assess their effectiveness and make informed decisions. 62. London Business School's Tim Ambler believes the evaluation of marketing performance can be split into two parts: ________. A) long-term results and changes in brand equity B) short-term results and changes in brand equity C) long-term results and changes in consumer perceptions D) short-term results and changes in profitability E) changes in market share and changes in profitability Answer: B Rationale: According to Tim Ambler, the evaluation of marketing performance can be split into two parts: short-term results and changes in brand equity. Short-term results focus on immediate outcomes such as sales, while changes in brand equity represent longer-term impacts on consumer perceptions and brand value. 63. Which of the following is an external marketing metric that companies need to monitor? A) resource adequacy B) staffing or skill levels C) active innovation support D) market share E) relative employee satisfaction Answer: D Rationale: Market share is an external marketing metric that companies need to monitor. It reflects the portion of the total market that a company captures with its products or services and is a key indicator of competitive performance and market position. 64. Which of the following is an internal marketing metric that companies need to monitor? A) market share B) consumer satisfaction C) relative perceived quality D) total number of customers E) relative employee satisfaction Answer: E Rationale: Relative employee satisfaction is an internal marketing metric that companies need to monitor. It measures the satisfaction levels of employees within the organization and is important for assessing organizational culture, employee morale, and overall workforce effectiveness. 65. ________ analyze(s) data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. A) Marketing metrics B) Marketing-mix models C) Marketing forecasting D) Marketing intelligence databases E) Marketing decision systems Answer: B Rationale: Marketing-mix models analyze data from various sources to understand the effects of specific marketing activities. These models help marketers assess the impact of factors such as pricing, advertising, promotions, and distribution on sales and other performance metrics. 66. When the marketers of a mobile phone manufacturing company want to determine the impact of individual media such as television and online display ads on sales as well as that of trade activities like every day low price, off-shelf display and so on, they usually use ________. A) marketing metrics B) market segmentation strategies C) market capitalization techniques D) market basket analysis E) marketing-mix models Answer: E Rationale: When marketers want to determine the impact of various marketing activities such as advertising and trade promotions on sales, they typically use marketing-mix models. These models analyze data to understand the contribution of each marketing element to overall performance. 67. A ________ records how well the company is doing year after year based on measures such as the average perception of the company's product quality relative to its chief competitor. A) customer-performance scorecard B) stakeholder-performance scorecard C) marketing balanced scorecard D) vendor scorecard E) generic scorecard Answer: A Rationale: A customer-performance scorecard records how well the company is doing based on measures related to customer perceptions and satisfaction. It typically includes metrics such as product quality, customer service, and loyalty, compared to competitors. 68. If a company actively tracks the satisfaction of its suppliers, banks, and distributors, it is using what is called a ________. A) customer-performance scorecard B) stakeholder-performance scorecard C) marketing balanced scorecard D) vendor scorecard E) generic scorecard Answer: B Rationale: If a company actively tracks the satisfaction of its various stakeholders such as suppliers, banks, and distributors, it is using a stakeholder-performance scorecard. This scorecard helps assess and manage relationships with key external partners and stakeholders. 69. According to marketing consultant Pat LaPointe, the ________ measurement pathway of the marketing dashboard reflects how prospects become consumers. A) customer metrics B) unit metrics C) cash-flow metrics D) brand metrics E) productivity metrics Answer: A Rationale: According to Pat LaPointe, the customer metrics pathway of the marketing dashboard reflects how prospects become consumers. It focuses on tracking and analyzing key metrics related to customer acquisition, conversion, retention, and satisfaction. 70. According to marketing consultant Pat LaPointe, the ________ measurement pathway of the marketing dashboard focuses on how well marketing expenditures are achieving short-term returns. A) customer metrics B) unit metrics C) cash-flow metrics D) brand metrics E) productivity metrics Answer: C Rationale: According to Pat LaPointe, the cash-flow metrics pathway of the marketing dashboard focuses on how well marketing expenditures are achieving short-term returns. It involves tracking financial metrics such as revenue, profit, and return on investment to assess the effectiveness of marketing investments. 71. Good marketing insights often form the basis of successful marketing programs. Answer: True Rationale: This statement is true because effective marketing programs typically stem from valuable insights into consumer behavior, market trends, and competitive landscapes. These insights help marketers tailor their strategies to meet the needs and preferences of their target audience, ultimately leading to successful marketing campaigns. 72. Most large companies prefer to use external marketing research consultants rather than employ their own marketing research department. Answer: False Rationale: Large companies often find it more cost-effective and efficient to have an in-house marketing research department due to the volume and complexity of research required. This allows them to have dedicated resources focusing solely on their research needs and maintaining confidentiality over sensitive data. 73. When the companies engage students to design and carry out projects, the payoff to the students is experience and visibility; the payoff to the companies is a fresh set of eyes to solve problems at a fraction of what consultants would charge. Answer: True Rationale: Engaging students for projects offers mutual benefits. Students gain practical experience and exposure, while companies benefit from fresh perspectives and innovative solutions at a lower cost compared to hiring external consultants. 74. A good example of a syndicated-service research firm is Nielsen Media Research. Answer: True Rationale: Nielsen Media Research is indeed a syndicated-service research firm known for providing data and insights related to media consumption, audience measurement, and advertising effectiveness. Syndicated research firms collect and sell standardized data on various industries or markets to multiple clients. 75. Custom marketing research firms sell field interviewing services to other firms. Answer: False Rationale: Custom marketing research firms specialize in designing and conducting tailored research studies to address specific client needs, rather than solely providing field interviewing services. Field interviewing services are typically offered by field service agencies or data collection firms. 76. After developing the research plan, the marketing researcher should define the problem and research objectives. Answer: False Rationale: Defining the problem and research objectives should precede the development of the research plan. Clearly outlining the problem to be addressed and the objectives to be achieved helps in crafting an effective research plan that aligns with the goals of the study. 77. The goal of exploratory research is to shed light on the real nature of the problem and to suggest possible solutions or new ideas. Answer: True Rationale: Exploratory research aims to explore a problem or phenomenon in depth, often without specific hypotheses, to gain insights, identify patterns, and generate hypotheses for further investigation. It helps researchers understand the nature of the problem and potentially discover new avenues for solving it. 78. The purpose of causal research is to test a cause-and-effect relationship. Answer: True Rationale: Causal research is conducted to establish a cause-and-effect relationship between variables. It involves manipulating one variable to observe the effect on another variable, allowing researchers to determine the extent to which changes in one variable cause changes in another. 79. James collected primary data when he distributed a survey to dorm residents to discover their attitudes and opinions on campus life. Answer: True Rationale: Primary data refers to data collected firsthand by the researcher for a specific purpose or project. James collecting survey responses directly from dorm residents constitutes primary data collection since the information is gathered directly from the source for his research on campus life attitudes and opinions. 80. Secondary data are data freshly gathered for a specific purpose or for a specific research project. Answer: False Rationale: Secondary data refers to data that have been previously collected and are available for use in research, often for purposes other than the current study. These data may come from sources such as published reports, government databases, or academic journals and are not freshly gathered for the specific research project at hand. 81. The goal of ethnographic research is to immerse the researcher into consumers' lives to uncover unarticulated desires that might not surface in any other form of research. Answer: True Rationale: Ethnographic research involves observing and interacting with individuals in their natural environments to gain deep insights into their behaviors, values, and needs. By immersing themselves in consumers' lives, researchers can uncover subtle nuances and unarticulated desires that may not be revealed through other research methods. 82. Researchers should generalize findings from focus-group participants to the whole market. Answer: False Rationale: Findings from focus groups are not typically generalized to the entire market due to the small and non-randomized sample sizes inherent in focus group studies. Instead, focus groups are used to gain qualitative insights and understanding of specific consumer segments, which may inform further research or marketing strategies. 83. Keeping a survey short and simple and contacting customers no more than once a month are two keys to drawing people into the data collection effort. Answer: True Rationale: Short and simple surveys are more likely to engage respondents and encourage participation. Additionally, contacting customers infrequently helps avoid survey fatigue and annoyance, increasing the likelihood of their willingness to participate in data collection efforts. 84. A good example of collecting behavioral data would be when a store uses scanners to read barcodes on products selected by consumers. Answer: True Rationale: Collecting behavioral data involves observing and recording actual actions or behaviors of individuals, such as purchases made at a store. Using scanners to read barcodes on products selected by consumers is an example of collecting behavioral data as it provides direct information about consumer purchasing behavior. 85. Behavioral research is the most scientifically valid research. Answer: False Rationale: While behavioral research provides valuable insights into actual behaviors, it is not inherently more scientifically valid than other types of research. The validity of research depends on various factors, including research design, methodology, and data analysis techniques, regardless of whether it focuses on behaviors, attitudes, or other aspects of human experience. 86. Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant. Answer: True Rationale: Experiments involve manipulating one or more variables to observe the effect on another variable while controlling for extraneous factors. This typically includes selecting matched groups of subjects, applying different treatments or conditions, and analyzing whether observed differences in responses are statistically significant. 87. Owing to its greater flexibility, a questionnaire is by far the most common instrument used to collect primary data. Answer: True Rationale: Questionnaires offer flexibility in terms of administration methods (e.g., online, paper-based) and can cover a wide range of topics. They are commonly used to collect primary data due to their versatility and ability to gather structured responses from a large number of respondents efficiently. 88. Qualitative research techniques are relatively structured measurement approaches that permit limited possible responses. Answer: False Rationale: Qualitative research techniques, such as interviews, focus groups, and observations, are characterized by open-ended questions and unstructured formats that allow for in-depth exploration of respondents' thoughts, feelings, and experiences. They do not restrict responses to limited options and instead aim to capture rich, nuanced data. 89. A questionnaire should contain sophisticated and uncommon words. Answer: False Rationale: A questionnaire should use clear, simple language to ensure respondents understand the questions and can provide accurate responses. Using sophisticated or uncommon words may confuse respondents and lead to inaccurate data collection. Clarity and simplicity are essential for effective questionnaire design. 90. If a marketing researcher decides to use a Likert scale, the researcher has chosen a technique wherein the respondent reviews a statement that shows the amount of agreement/disagreement with some product, service, or concept. Answer: True Rationale: A Likert scale is a commonly used rating scale in survey research, where respondents are presented with statements and asked to indicate their level of agreement or disagreement on a predetermined scale (e.g., strongly agree, agree, neutral, disagree, strongly disagree). It is often used to measure attitudes, perceptions, or opinions towards products, services, or concepts. 91. A dichotomous question is a question with three or more answers. Answer: False Rationale: A dichotomous question is a question with only two possible responses, typically "yes" or "no," or "true" or "false." 92. A scale that describes the respondent's intention to buy a particular product is called a rating scale. Answer: False Rationale: A scale that describes the respondent's intention to buy a particular product is called an intention scale, not a rating scale. Rating scales are used to measure the degree of agreement, satisfaction, or preference on a scale (e.g., Likert scale). 93. Visualization requires people to create a collage from magazine photos or drawings to depict their perceptions. Answer: True Rationale: Visualization techniques, such as collages or drawings, are used in qualitative research to help participants express their perceptions, preferences, or experiences visually. 94. Once they have determined the sampling unit, marketers must develop a sampling frame so that a small section in the target population has a greater chance of being sampled. Answer: False Rationale: A sampling frame is a list of all the sampling units in the population from which the sample will be drawn. It is not designed to give any section of the target population a greater chance of being sampled; rather, it should represent the entire population accurately. 95. Samples of less than 1% of a population can often provide good reliability, with a credible sampling procedure. Answer: True Rationale: With a well-designed sampling procedure, even samples comprising less than 1% of the population can provide reliable results, especially when using probability sampling methods that ensure each member of the population has an equal chance of being included in the sample. 96. Probability sampling allows confidence limits to be calculated for sampling error and makes the sampling more representative. Answer: True Rationale: Probability sampling methods, such as simple random sampling, stratified sampling, and cluster sampling, allow researchers to calculate confidence intervals for estimating the precision of sample statistics and ensure that the sample is representative of the population. 97. The response rate is usually very high for mail questionnaires. Answer: False Rationale: Response rates for mail questionnaires tend to be relatively low compared to other survey methods due to factors such as survey fatigue, lack of personal interaction, and potential for the questionnaire to be overlooked or discarded. 98. If a marketing researcher is looking for a contact method that can gather information quickly and allow the interviewer to clarify questions if necessary, he or she will choose the telephone interview method. Answer: True Rationale: Telephone interviews offer the advantage of immediate contact with respondents, enabling quick data collection and allowing interviewers to clarify questions or provide assistance if needed during the interview process. 99. A good illustration of what is called the arranged interview occurs when interviewers stop people in a shopping mall or on a busy street and solicit information necessary to their research effort. Answer: False Rationale: The described scenario corresponds to intercept interviews, where interviewers approach and survey individuals in public places. Arranged interviews, on the other hand, are scheduled in advance at a mutually convenient time and location. 100. Online surveys are fast because the survey can automatically direct respondents to applicable questions and transmit results immediately. Answer: True Rationale: Online surveys can be completed quickly by respondents because they can skip irrelevant questions, and responses are automatically recorded and transmitted to the researcher, allowing for rapid data collection and analysis. 101. One of the characteristics of good marketing research is that it uses multiple methods to increase confidence in the results. Answer: True Rationale: Employing multiple research methods allows researchers to triangulate findings, corroborate results, and gain a more comprehensive understanding of the research problem. It enhances the reliability and validity of the findings by reducing the impact of methodological biases and increasing confidence in the conclusions drawn. 102. Marketing researchers should have a healthy skepticism toward glib assumptions made by managers about how a market works. Answer: True Rationale: Maintaining a healthy skepticism towards managerial assumptions helps ensure that marketing decisions are based on evidence and rigorous analysis rather than unfounded beliefs or biases. It encourages critical thinking and thorough examination of market dynamics, leading to more informed and effective marketing strategies. 103. Marketing expenses and investments as inputs can be quantified only in the long run, whereas the resulting outputs such as broader brand awareness, enhanced brand image, greater customer loyalty, and improved new product prospects manifest themselves in the short run. Answer: False Rationale: While some marketing outcomes may manifest in the short run, such as immediate sales or responses to promotional campaigns, many others, such as brand awareness, brand image, and customer loyalty, are typically long-term outcomes that may take time to develop and quantify. 104. Marketing-mix modeling is used to estimate causal relationships and measure how marketing activity affects outcomes. Answer: True Rationale: Marketing-mix modeling is a statistical analysis technique used to quantify the impact of various marketing activities (e.g., advertising, promotions, pricing) on outcomes such as sales, market share, or brand performance. It helps marketers understand the effectiveness of different marketing strategies and allocate resources accordingly. 105. Marketing accountability means that marketers must more precisely estimate the effects of different marketing investments. Answer: True Rationale: Marketing accountability refers to the responsibility of marketers to measure, evaluate, and demonstrate the effectiveness of their marketing activities in achieving organizational objectives. This includes accurately estimating the impact of various marketing investments and optimizing resource allocation to maximize returns. 106. Especially popular with such companies as Procter & Gamble, marketing-mix modeling is used to allocate or reallocate expenditures. Answer: True Rationale: Marketing-mix modeling is widely used by companies like Procter & Gamble to allocate or reallocate marketing expenditures effectively. By analyzing the impact of different marketing activities on business outcomes, companies can optimize their marketing budgets and allocate resources to activities that deliver the highest return on investment. 107. Marketing-mix modeling focuses on baseline sales or long term effects instead of incremental growth. Answer: False Rationale: Marketing-mix modeling considers both baseline sales and incremental growth when analyzing the impact of marketing activities. It assesses the incremental effects of marketing efforts on sales or other outcomes, distinguishing between the effects of marketing activities and other factors influencing sales trends. 108. Management can assemble a summary set of relevant internal and external measures in a marketing dashboard for synthesis and interpretation. Answer: True Rationale: A marketing dashboard is a tool used by management to monitor key performance indicators (KPIs) and metrics relevant to marketing objectives. It provides a concise summary of internal and external measures, allowing for easy synthesis, interpretation, and decision-making based on real-time data. 109. A stakeholder-performance scorecard tracks the satisfaction with the company and its products and services among such entities as suppliers, banks, and stockholders. Answer: True Rationale: A stakeholder-performance scorecard is a strategic management tool used to measure and evaluate the satisfaction levels of various stakeholders, including suppliers, banks, stockholders, customers, employees, and communities. It helps organizations assess their performance in meeting the needs and expectations of different stakeholder groups. 110. Discuss the different ways which can be adopted by small manufacturing firms to conduct market research. Answer: The small firms can adopt the following ways to conduct market research: 1. They can engage students or professors to design and carry out projects. 2. They can collect considerable information at very little cost by examining competitors' Web sites, monitoring chat rooms, and accessing published data. 3. The owners of small business firms can routinely visit competitors to learn about changes they have made. 4. By tapping into marketing partner expertise. 111. What are the six steps involved in the marketing research process? Answer: The six steps are: (1) define the problem and research objectives, (2) develop the research plan, (3) collect the information, (4) analyze the information, (5) present the findings, and (6) make the decision. 112. List the challenges faced to conduct a good focus group discussion. Answer: There are many challenges to conducting a good focus group. Some researchers believe consumers have been so bombarded with ads, they unconsciously parrot back what they've already heard instead of what they really think. There's always a concern that participants are just trying to maintain their self-image and public persona or have a need to identify with the other members of the group. Participants also may not be willing to acknowledge in public—or may not even recognize—their behavior patterns and motivations. And the "loudmouth or know-it-all" problem often crops up when one highly opinionated person drowns out the rest of the group. 113. What are the relative advantages of online and in-person focus groups? Answer: An area of increasing interest is online focus groups. These may cost less than a fourth of a traditional, in-person focus group. Online focus groups also offer the advantages of being less intrusive, allowing geographically diverse subjects to participate, and yielding fast results. They are useful at collecting reactions to focused topics such as a specific new product concept. Proponents of in-person focus groups, on the other hand, maintain that in-person focus groups allow marketers to be immersed in the research process, get a close-up look to people's emotional and physical reactions, and ensure that sensitive materials are not leaked. Marketers can also make spontaneous adjustments to the flow of discussion and delve deeply into more complex topics, such as alternative creative concepts for a new ad campaign. 114. Give an account of experimental research. Answer: Experimental research is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. If the experiment is well designed and executed, research and marketing managers can have confidence in the conclusions. Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant. 115. Explain what qualitative research is and why it might be useful to marketers. What are its major drawbacks? Answer: Qualitative research techniques are relatively unstructured measurement approaches to permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. Because of the freedom it affords both researchers in their probes and consumers in their responses, qualitative research can often be an especially useful first step in exploring consumers' brand and product perceptions. It is indirect in nature, so consumers may be less guarded and reveal more about themselves in the process. Qualitative research does have its drawbacks. Marketers must temper the in-depth insights that emerge with the fact that the samples are often very small and may not necessarily generalize to broader populations. And different researchers examining the same qualitative results may draw very different conclusions. 116. Give an account of the different technological devices that have been developed to provide insight into the consumers' behavior to the researchers. Answer: There has been much interest in recent years in various technological devices. Galvanometers can measure the interest or emotions aroused by exposure to a specific ad or picture. The tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds. After each exposure, the respondent describes everything he or she recalls. Eye cameras study respondents' eye movements to see where their eyes land first, how long they linger on a given item, and so on. 117. What is the chief advantage of using each of the following contact methods: mail questionnaire, telephone interview, and personal interview? Answer: The chief advantage of each contact method mentioned is (1) mail questionnaire the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviews, (2) telephone interviews the best method for gathering information quickly and the interviewer is also able to clarify questions if respondents do not understand them, and (3) personal interview the most versatile method because they can ask more questions and record additional observations about the respondent. 118. Give reasons to justify that online research is versatile. Answer: Increased broadband penetration offers online research even more flexibility and capabilities. For instance, virtual reality software lets visitors inspect 3-D models of products such as cameras, cars, and medical equipment and manipulate product characteristics. Even at the basic tactile level, online surveys can make answering a questionnaire easier and more fun than paper-and-pencil versions. Online community blogs allow customer participants to interact with each other. 119. What are the major shortcomings of marketing-mix modeling? Answer: The major shortcomings of marketing-mix modeling are- 1. Although marketing-mix modeling helps to isolate effects, it is less effective at assessing how different marketing elements work in combination. 2. Marketing-mix modeling focuses on incremental growth instead of baseline sales or long term effects. 3. The integration of important metrics such as customer satisfaction, awareness, and brand equity into marketing-mix modeling is limited. 4. Marketing-mix modeling generally fails to incorporate metrics related to competitors, the trade, or the sales force. 120. Mars Group is a market research firm which sells field interviewing services to a software development firm. Can Mars Group be categorized as a custom market research firm? Give reasons to support your answer. Answer: No, Mars group is a specialty-line marketing research firm as it sells field interviewing services, whereas a custom marketing research is hired to carry out specific projects. 121. As a marketing researcher of Matrix Private Limited you have been asked to forecast the demand for your new range of body wash if a discount of 10 percent is offered on each unit sold. Identify the research category into which this market research falls. Answer: Here the researcher needs to study the effect of the discount on the demand for body wash. The objective of this research is to establish the cause and effect relationship between the discount and the demand for body wash. Therefore, this can be categorized as causal research. 122. Highspeed Motors is planning to introduce its new sports bike into the market. It collects data on prices, designs, features, and performance of sports bikes manufactured by other companies from their respective Web sites. What type of data is being used by Highspeed motors in this case? Answer: Highspeed Motors is using secondary data for its research. 123. Ryan has been appointed by Target Internationals, a hardware manufacturing firm, as a marketing researcher and has been asked to conduct a marketing research to produce new insights of consumer attitude on its vacuum tubes. Ryan begins with the research process by defining the problem, the decision alternatives, and research objectives. Mention the next step that Ryan will follow to continue with the research. Answer: After defining the problem, the decision alternatives, and research objectives, the researcher develops the most efficient plan for gathering the needed information, and will estimate the cost of conducting the research. 124. Axis Centre a departmental store has installed CCTV cameras to record consumer actions. Which research approach has been adopted by Axis and why? Answer: Axis has adopted observational research approach to gather fresh data by observing the consumers' actions in the store. 125. As a marketing manager of Kids Care, a manufacturer of baby soaps, Tim plans to analyze customer attitudes by using the focus group research approach. How will he conduct the research in this case? Answer: Student answers will vary. Tim selects 8 first time mothers who can adequately represent the users you want to target. He also appoints a skilled moderator to facilitate the discussion among these women to ensure everyone participates and stays on track. The moderator provides questions based on the "script" prepared by Tim. The discussions are recorded for further analysis. 126. Copra, a manufacturer of cigarettes, conducts a survey before launching its new range of herbal cigarettes. What is the basic purpose of undertaking such a survey by Copra? Answer: Copra undertakes the survey to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population. 127. Greenfoods, a manufacturer of ready-to-eat foods, conducts over 60,000 customer surveys each month through its retail outlets. What risk is Greenfoods likely to face by putting out so many surveys each month? Answer: By putting out so many surveys each month, Greenfoods may run the risk of creating "survey burnout" and seeing response rates drop sharply. 128. As a marketing researcher of a firm, you have planned to conduct behavioral research to develop marketing insight. What procedure would you follow in this case? Answer: In order to conduct behavioral research, the marketing researchers need to develop consumer insight by analyzing store scanning data, catalog purchases, and customer databases. 129. A questionnaire used in a survey contains a question such as: "Retail-R-Us offers the best everyday prices" and the responses that the respondents can opt for are: "Strongly Disagree", "Disagree", "No opinion", "Agree", "Strongly Agree". Identify and define the type of closed-end question that has been exemplified in this case. Answer: The question mentioned above is a Likert Scale question. A Likert Scale is a statement with which the respondent shows the amount of agreement or disagreement. 130. Suppose, as a marketing manager of a firm, you have planned to conduct a market research using qualitative measures. For the purpose of developing consumer insight you have distributed among the respondents a picture of a man and woman in a coffee shop, and have asked the respondents to make up a story about what is happening in the picture. Identify and define the type of question used in this case. Answer: The marketing manager has used Thematic Apperception Test in this case. In Thematic Apperception Test, a picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture. 131. The Bledsoe Marketing Research group has been hired to administer a series of questions to shoppers in a local mall. If questions on the survey questionnaire have only two possible responses (such as "yes/no"), what type of questions are these? Answer: Questions of this type are closed-end questions that are dichotomous in nature. 132. As a marketing researcher, if you plan to conduct your research using qualitative measures like brand personification, what are you likely to ask the respondents in order to elicit their impression on your brand? Answer: Student answers may vary. When the marketing researcher uses the brand personification approach to get inside consumers' minds and find out what they think or feel about brands and products, he is likely to ask the respondents what kind of person they think of when the brand is mentioned. 133. Jane is a marketing researcher of a cellular service providing firm. She is conducting a market research before the firm decides to launch its 3G services. After deciding on the research approach and instruments, what is the next step that Jane should follow? What are the three things that she is required to consider in this step? Answer: After deciding on the research approach and instruments, Jane must design a sampling plan. In order to design the plan, Jane has to decide upon the sampling unit (whom she should survey?), the sample size (how many people should she survey?), sampling procedure (how should she choose the respondents? 134. A marketing research firm has instructed its research associates to collect primary data by stopping people at a shopping mall or busy street corner and request an interview on the spot. Which contact method is being used by the researchers in this case? What probable risk may the researchers face while using this method? Answer: The researchers are using intercept interviewing method for collecting primary data in this case. The researchers run the risk of including nonprobability samples while using this method. 135. Aromas is a popular brand of cosmetic products. During the last quarter, the company suffered a drop in sales of some of its more popular offerings. In an attempt to find out the problem, Aromas designed an online questionnaire for its existing customers, who can fill out the questionnaire and also leave their comments and suggestions for improvement. What are the problems that Aromas is likely to face by using this method of contacting its customers? Answer: Student answers will vary. Aromas is using online contact method to gather customer feedback. The major problems of using this method are- 1. samples may be small and skewed, 2. online panels and communities can suffer from excessive turnover, 3. such online market research can suffer from technological problems and inconsistencies. 136. As a marketing controller of a company, you have been asked to create a stakeholder-performance scorecard that tracks the satisfaction of various constituencies who have a critical interest and impact your company's performance. List four constituencies that might be included. Answer: The stakeholder-performance scorecard could track the satisfaction of employees, suppliers, banks, distributors, retailers, and stockholders. 137. As a marketing controller of a company you have been asked to develop a customer-performance scorecard for your company's toy division. List three measures you might include. Answer: The three measures that might be included are-(1) percentage of new customers to average number of customers; (2) percentage of lost customers to average number of customers; (3) percentage of win-back customers to average number of customers. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986
