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Chapter 4 - Marketing Research and Information Systems 1. Compare reliability and validity. Why are they important considerations in marketing research? Answer: In designing research, marketing researchers must ensure that research techniques are both reliable and valid. A research technique has reliability if it produces almost identical results in repeated trials. To have validity, the research method must measure what it is supposed to measure, not something else. This means that not all reliable research findings are valid. For example, although a group of customers may express the same level of satisfaction based on a rating scale, as individuals they may not exhibit the same repurchase behavior because of different personal characteristics. If the purpose of rating satisfaction was to estimate potential repurchase behavior, this result may cause the researcher to question the validity of the satisfaction scale. A study to measure the effect of advertising on sales is valid if advertising can be isolated from other factors and from variables that affect sales. Research projects should be replicable as well, otherwise it is impossible to establish reliability. 2. Why is defining a problem the most important step in marketing research? Answer: The first step in launching a research study is defining the problem, or issue. This encourages researchers to focus on the true nature and boundaries of a situation as it relates to marketing strategy or implementation. The first sign of a problem is typically a departure from normal functioning, such as the failure to meet an objective that was previously attainable. If a corporation’s objective is a 12 percent sales increase and there was only a 6 percent increase under the current marketing strategy, marketers should analyze this discrepancy to adapt the marketing strategy to be more effective. Declining sales, increasing expenses, and decreasing profits all signal problems for a firm. Conversely, a dramatic increase in sales or another positive event should prompt marketers to research the reasons for the change in order to leverage opportunities. Marketing research often focuses on identifying and defining market opportunities or changes in the environment. When a firm discovers a market opportunity, it should conduct research to understand the situation and craft an appropriate marketing strategy. 3. Explain the conditions that would favor an exploratory study over a conclusive study. Answer: Conclusive research is designed to verify insights through an objective procedure to help marketers make decisions. It is used in the final stages of decision making, when the marketer has narrowed his or her decision down to a few alternatives. Whereas, when marketers need more information about a problem or want to make a tentative hypothesis more specific, they conduct exploratory research. The main purpose of exploratory research is to better understand a problem or situation and/or to help identify additional data needs or decision alternatives.4 For example, China is the world’s largest auto producer and has made great strides in developing high efficiency vehicles, yet exports practically none of them. Chinese automakers have begun to see opportunities abroad as countries increase fuel efficiency standards and the demand for efficient cars grows. Geely Group, which acquired Volvo Cars of Sweden, for instance, has begun conducting exploratory research in major Western markets, such as Britain, to determine which of its low-cost and high fuel efficiency models would be most popular there. Exploratory research can help marketers better understand how consumers view a topic or a product, which can assist a firm as it develops better products and more targeted marketing mixes. 4. How is it possible to increase the response rate of a mail survey? Answer: In a mail survey, questionnaires are sent to respondents who are encouraged to complete and return them. Mail surveys are used most often when the individuals in the sample are spread over a wide area and funds for the survey are limited. A mail survey is less expensive than a telephone or personal interview survey, as long as the response rate is high enough to produce reliable results. Premiums, or incentives, that encourage respondents to return questionnaires can be effective in encouraging mail survey response rates and developing panels of respondents who are interviewed regularly. Such mail panels, selected to represent a target market or market segment, are especially useful in evaluating new products and providing general information about customers, as well as records of their purchases in the form of purchase diaries. Mail panels and purchase diaries are much more widely used than custom mail surveys, but both panels and purchase diaries have shortcomings. People who take the time to fill out a diary may differ from the general population based on income, education, or behavior, such as the time available for shopping activities. 5. Why would a personal interview be favored over a mail or telephone survey? Answer: In a personal interview survey, participants respond to questions face-to-face. Various audiovisual aids—pictures, products, diagrams, or prerecorded advertising copy—can be incorporated into a personal interview. Rapport gained through direct interaction usually permits more in-depth interviewing, including probes, follow-up questions, or psychological tests. In addition, because personal interviews can be longer than other survey types, they may yield more information. Respondents can be selected more carefully, and reasons for nonresponse can be explored. One such research technique is the in-home (door-to-door) interview. The in-home interview offers a clear advantage when thoroughness of self-disclosure and elimination of group influence are important. In an in-depth interview of 45 to 90 minutes, respondents can be probed to reveal their true motivations, feelings, behaviors, and aspirations. 6. Why is it essential that a questionnaire be carefully designed and prepared? Describe the three kinds of questions used in research project. Answer: A carefully constructed questionnaire is essential to the success of any survey. Questions must be clear, easy to understand, and directed toward a specific objective, meaning they must be designed to elicit information that meets the study’s data requirements. Defining the objective of a questionnaire before construction will provide a guide to the substance of the questions and ensure that they yield useful information that contributes to the research project. The most important rule in composing questions is to maintain impartiality. The questions are usually of three kinds: open-ended, dichotomous, and multiple choice. Open-ended questions should be used carefully, as it is very difficult to code the responses in such a way as to easily analyze the data later. Problems may develop in the analysis of dichotomous or multiple-choice questions when responses for one outcome outnumber others. For example, a dichotomous question that asks respondents to choose between “buy” or “not buy” might require additional sampling from the disproportionately smaller group if there were not enough responses to analyze. Researchers must also be very careful about questions that a respondent might consider too personal or that might require an admission of activities that other people are likely to condemn. Researchers must word questions carefully so as not to offend respondents. 7. What is sampling in marketing research? Describe the two basic types of sampling. Compare the advantages and disadvantages of the two types of collecting a sample. Answer: Sampling in marketing research is the process of selecting representative units from a population. There are two basic types of sampling: probability sampling and nonprobability sampling. With probability sampling, every element in the population being studied has a known chance of being selected for study. Random sampling is a form of probability sampling. When marketers employ random sampling, all the units in a population have an equal chance of appearing in the sample. Another type of probability sampling is stratified sampling, in which the population of interest is divided into groups according to a common attribute, and a random sample is then chosen within each sub-group. A stratified sample may reduce some of the error that is a risk of a completely random sample, ensuring that a group is not accidentally over-represented. By segmenting a population into groups, the researcher makes sure that each segment receives its proportionate share of sample units and helps investigators avoid including too many or too few sample units from each sub-group. Samples are usually stratified when researchers believe there may be variations among different types of respondents. The second type of sampling, nonprobability sampling, is more subjective than probability sampling because there is no way to calculate the probability that a specific element of the population being studied will be chosen. Quota sampling, for example, is highly judgmental because the final choice of participants is left to the researchers. In quota sampling, researchers divide the population into groups and then arbitrarily choose participants from each segment. In quota sampling, researchers impose some controls—usually limited to two or three variables, such as age, gender, or race—over the selection of participants to ensure that representative categories of respondents are included. 8. What pitfalls should a marketing researcher avoid in preparing a report for a company executive? Why? Answer: The final step in the marketing research process is to report the research findings. Before preparing the report, the marketer must objectively analyze the findings to determine whether the research is as complete as it can be and how well the data answer the research question and support or negate the hypothesis. Most research will not have answered the research question completely. Thus, the researcher must point out deficiencies and their causes in the report. While writing, researchers must keep the report’s audience in mind and ensure that findings are relevant to the firm. They should also determine before writing how much detail and supporting data to include. Research is not useful unless it supports the organization’s overall strategy and objectives. If an outside research agency was contracted, it is important that it fully understand the client’s business. Those responsible for preparing the report must facilitate adjusting the findings to the environment, as it can change over time. The report must be helpful to marketers and managers on an ongoing basis. 9. Discuss the role of the marketing information system in helping marketing managers make better decisions. Answer: A marketing information system (MIS) is a framework for the day-to-day management and structuring of information gathered regularly from sources both inside and outside the organization. As such, an MIS provides a continuous flow of information about prices, advertising expenditures, sales, competition, and distribution expenses and can be an important asset for developing effective marketing strategies. The main focuses of an MIS are on data storage and retrieval, as well as on computer capabilities and management’s information requirements. MIS can help with producing regular sales reports by product or market categories, data on inventory levels, and records of salespeople’s activities, which can all help in marketing decision making. 10. How can companies use information technology as a competitive advantage? Answer: Technology and the Internet have made the information required for marketing decisions more accessible than ever. Marketers can easily track customer buying behavior, obtain detailed demographic profiles, and anticipate what buyers want— making it possible to fine-tune marketing mixes to satisfy customers. Information technology permits for easy internal research and quick information gathering to help marketers better understand and satisfy customers. CRM has been enhanced by the ability to integrate and access data from all customer contacts. Many firms use marketing information systems, CRM technologies, and cloud computing to network technologies and organize the marketing data available to them. Improvements in information technology have made it possible for firms to develop data-bases that are vastly enhanced in their speed and storage capacity, to guide strategic planning and improve customer service. For instance, think about the advertisement for the SAP HANA database. It uses 21st century technology to consolidate all the data contained in a database in order to speed processing and to allow a firm to retrieve answers more quickly. The HANA database model reduces redundancies and makes it easier for marketers to retrieve the information that they need to make sound marketing decisions and improve customer relationship marketing. 11. Why is ethics an important consideration in marketing research? Answer: Marketing managers and other professionals increasingly rely on marketing research, marketing information systems, and new technologies to make better decisions. Therefore, it is essential that professional standards be established by which to judge the reliability of marketing research. Such standards are necessary because of the ethical and legal issues that can develop in gathering marketing research data. For example, many consumers are wary of how their personal information collected by marketers will be used, especially whether it will be sold to third parties. It is important that marketers remain ethical at all times, to retain consumer and stake-holder trust and a positive reputation. To provide standards and guidelines, organizations such as the Marketing Research Association have developed codes of conduct and guidelines that promote ethical marketing research. 12. How does marketing research differ when conducted in other countries? Answer: Sociocultural, economic, political, legal, and technological forces vary in different regions of the world. These variations create challenges for the organizations that are attempting to understand foreign customers through marketing research. While the marketing research process is generally the same around the world, some regional differences exist. To make certain that firms are sufficiently aware of global and regional differences, many companies retain a research firm, or at least a researcher, with experience in the country of interest. Most of the largest marketing research firms derive a significant share of their revenues from research conducted outside the United States. For example, the Nielsen Company, the largest marketing research firm in the world, is a U.S. company but has a market presence in over 100 different countries. 13. Marketing research is best defined as: A. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. B. a framework for the day-to-day management and structuring of information gathered by marketers. C. a continuous gathering of data of an organization to make marketing decisions. D. the collection of data from secondary sources and internal documents. E. an intuitive process for making decisions based on personal knowledge and experience. Answer: A 14. Marketing research is a process designed to gather information: A. exclusively about a company's customers. B. from the company's database. C. not currently available to decision makers. D. about the needs and desires of employees. E. concerning the interpretation of the company's sales goals. Answer: C 15. The use of marketing research is: A. limited strictly to large corporations. B. limited to for-profit businesses of all sizes. C. controlled by the federal government. D. widespread throughout business and nonprofit organizations. E. carefully monitored by each state's trade agencies. Answer: D 16. The real value of marketing research to the organization can best be measured by: A. its immediate impact on profits of the firm. B. the amount of time spent in conducting the research. C. the costs incurred during the market research. D. improvements in the ability to make decisions. E. the increase in sales volume or market share. Answer: D 17. Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows that new car sales are down by reading the paper, so he thinks that people should be driving more used cars, which need repairs. Wade knows that he needs to find out why customers are coming to the stores in his area, and the best way to approach this problem and obtain accurate information is to use: A. the marketing research process. B. the opinions of store managers. C. the company sales data. D. hypothesis testing. E. stratified sampling of customers. Answer: A 18. All of the following are steps in the marketing research process except: A. collecting data. B. interpreting research findings. C. designing the research project. D. reporting research findings. E. understanding your customer. Answer: E 19. Pointing out any deficiencies and the possible reasons for them should be done in the ________________ step of the marketing research process. A. interpreting research findings B. collecting data C. defining the issue or problem D. reporting research findings E. designing the research project Answer: D 20. Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem: A. involves an informed guess or assumption about a certain set of circumstances. B. is usually accompanied by a cost/benefit analysis. C. most often comes in the form of customer complaints. D. is often mentioned in secondary data reports, such as trade journals. E. is typically a departure from some normal function. Answer: E 21. To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied? A. Locating and defining problems B. Designing the project C. Collecting data D. Interpreting findings E. Reporting and analyzing findings Answer: A 22. Declining sales, increasing expenses, or decreasing profits: A. are to be expected during the marketing research process. B. are examples of symptoms that point to larger problems. C. usually have no effect on the marketing research process. D. are important considerations in designing the research project. E. should be carefully considered before collecting data. Answer: B 23. An overall plan for obtaining the information needed to address a research problem or an issue is known as ________ A. research design B. problem recognition C. hypothesis D. data collection method E. sampling procedure Answer: A 24. Jack knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should move on to: A. calculating reliability and validity. B. designing the research project. C. collecting data. D. interpreting research findings. E. taking corrective action. Answer: B 25. An informed guess or assumption about a certain problem or a set of circumstances is known as ________ A. a description of the situation B. good research design C. a hypothesis D. a reliable guess E. managerial intuition Answer: C 26. Students from a marketing research class are involved in a project about the level of sleep, exercise, and stress which individuals experience. They have decided to collect data from three student-center areas on campus. When they analyze their data, they find the responses are very similar across the three areas. The students feel comfortable they have achieved ________________ with regard to their data. A. reliability B. causal relationships C. validity D. sampling accuracy E. measurability Answer: A 27. Costco believes that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) ________ that Costco could test through marketing research. A. descriptive sample B. hypothesis C. experimental question D. sampling error E. conceptual error Answer: B 28. ________________, that are either accepted or rejected, become the primary conclusions of a marketing research study. A. Descriptions B. Issues C. Primary data D. Samples E. Hypotheses Answer: E 29. When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct a(n) ________ research. A. descriptive B. experimental C. exploratory D. analytical statistical E. conclusive Answer: C 30. Cover Girl believes that sales of one of its lipstick lines have fallen due to the introduction of a new colour palette. However, in order to best determine the impact of the colour palette, Cover Girl should conduct a(n) ________________ before proceeding with this tentative hypothesis. A. experimental research B. hypothesis testing C. exploratory research D. conclusive research E. descriptive research Answer: C 31. A research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is known as a(n) ________________ research. A. primary B. secondary C. exploratory D. conclusive E. hypothetical Answer: D 32. A research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called a(n) ________ research. A. primary B. experimental C. descriptive D. secondary E. exploratory Answer: C 33. A research that allows marketers to make causal deductions about relationships between variables is known as a(n) ________ A. variable research B. relational research C. exploratory research D. linkage research E. experimental research Answer: E 34. Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for the sales to increase in a particular store. The type of research conducted to answer this question is ________ A. exploratory B. descriptive C. experimental D. informal E. qualitative Answer: C 35. If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a(n) ________ A. exploratory research B. hypothesis development C. survey research D. stratified sampling E. experimental research Answer: E 36. When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in ________ A. surveys B. secondary data gathering C. interviews D. observation E. experimentation Answer: E 37. Designing research procedures that produce reliable marketing data means that ________ A. others using the same procedure will get almost identical data B. the procedure must give results that support the hypothesis C. the procedure must not give results that contradict other research studies D. the procedure may give results that contradict other research studies E. sampling must be done in a completely random manner Answer: A 38. A valid study: A. portrays the population being studied. B. results in a causal relationship between the independent and dependent variables. C. uses random sampling. D. verifies expected results. E. measures what it is supposed to. Answer: E 39. A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with ________ A. secondary data B. reliability C. validity D. reporting findings E. generalizability Answer: C 40. A study that is reliable ________ A. is called a marketing research study B. produces almost identical results every time C. is expensive to implement and complete D. measures subtle differences in the population being studied E. is difficult to produce without expert researchers Answer: B 41. Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is ________ A. interpreting research findings B. collecting data C. developing a testable hypothesis D. sampling the population E. reporting research findings Answer: B 42. Primary data are best described as the ________ A. first batch of data collected for a specific study B. data that are necessary for a correct decision C. data that are observed, recorded, or collected directly from subjects D. data that are compiled for some purpose other than the study in question E. data that are collected inside and outside the organization for some purpose other than the current investigation Answer: C 43. Data that are observed or collected directly from respondents are called ________ A. direct samples B. secondary data C. stratified data D. primary data E. firsthand information Answer: D 44. Saks Fifth Avenue wants to learn about its consumers' attitudes toward online purchases. There are numerous studies that are available about consumers and online buying, but Saks believes its customers might be different from the usual online consumer profile, so they decide to conduct their own study. If Saks were to use the available data about consumer attitudes, it would be using ________ data. A. descriptive B. experimental C. secondary D. primary E. conclusive Answer: C 45. Secondary data cannot be obtained from ________ A. trade journals B. the government C. international sources D. surveys E. computerized literature retrieval databases Answer: D 46. One overlooked internal source of secondary marketing information discussed in the text is ________ A. sales receipts B. accounting records C. interviews with salespeople D. quality control data E. consumer surveys Answer: B 47. If Time Warner Cable uses its sales reports which are broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections, then Time Warner Cable is said to be using ________ A. internal sampling B. internal primary data C. external secondary data D. external primary data E. internal secondary data Answer: E 48. When working as a summer intern for a local retail store, Jane Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered ________ A. primary data B. secondary data C. information data from syndicated research services D. second-hand data E. a primary database Answer: B 49. Information from the U.S. Census Bureau is commonly used as ________ by a variety of agencies and organizations. A. external secondary data B. sampling systems C. primary data D. internal secondary data E. hypotheses Answer: A 50. Kristen is the new marketing manager for the footwear division of her company and is currently planning next season’s product lines. She needs to gain access to data about recent purchasing patterns in the industry, but has a limited budget and time. Which type of data would be the best choice for Kristen to use in this situation? A. Sampling data B. Secondary data C. Quota data D. Primary data E. Survey data Answer: B 51. All the elements, individuals, or units of interest to researchers for a specific study are known as the ________ A. data set B. sample C. population D. focus group E. target market Answer: C 52. If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be ________ A. the faculty and staff of the University of Michigan B. all college-aged adults in the state of Michigan C. all the people who live in Ann Arbor and surrounding areas D. undergraduate students at the University of Michigan E. all students, faculty, supporters, and staff of the University of Michigan Answer: E 53. Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's ________ A. experiment B. dependent variable C. population D. independent variable E. sample Answer: C 54. If you were to choose a sample in order to study the market for preschool toys in Illinois, the population would logically be defined as all ________ A. children in Illinois B. families in Illinois that have or are expecting preschool children C. people in Illinois who had preschool children till the preceding year D. preschools in Illinois who will be admitting students in the following year E. preschool children in Illinois Answer: B 55. In marketing research, a sample is best described as ________ A. a small group that is a part of a larger group B. all the elements, units, or individuals of interest to researchers for a specific study C. a limited number of units chosen to represent the characteristics of a total population D. a group that shares a common attribute within a population E. a small portion of a product offered to customers to try a new product Answer: C 56. When marketing researchers consider sampling techniques, they are preparing to collect ________ data. A. census B. statistical C. internal secondary D. external secondary E. primary Answer: E 57. The objective of sampling in marketing research is to ________ A. obtain responses from as many people as possible B. control independent variables that might influence research results C. select representative units from a total population D. ensure that measures in the study are reliable E. provide data that can be used to test the hypotheses being investigated Answer: C 58. The two basic types of sampling which marketing researchers use are ________ A. random and non-random B. probability and nonprobability C. stratified and quota D. even and odd E. planned and spontaneous Answer: B 59. In what type of sampling does every element have a known chance of being selected for study? A. Quota B. Stratified C. Poll D. Nonprobability E. Probability Answer: E 60. Which sampling design gives every member of the population an equal chance of appearing in the sample? A. Nonprobability B. Random C. Quota D. Stratified E. Poll Answer: B 61. In which of the following sampling designs do all members of a population have an equal chance of being selected? A. Stratified B. Nonprobability C. Quota D. Probability E. Judgment Answer: D 62. Daily Diet wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 500 employees by having a computer program automatically pick which employees will be in the sample. If it uses the payroll database as the list of names to choose from, which type of sampling method is Daily Diet using? A. Random sampling B. Sampling populations C. Stratified sampling D. Nonprobability sampling E. Quota sampling Answer: A 63. Which of the following is a probability sampling technique used to reduce errors within random sampling? A. Quota B. Stratified C. Nonprobability D. Cluster E. Snowball Answer: B 64. Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, a ________ sampling technique would be used. A. random B. stratified C. quota D. area E. experimental Answer: B 65. Cream Rush is conducting research on all possible new ice cream Flavors and products. It is selecting at random 100 males and 100 females to collect data. This is an example of ________ sampling. A. nonprobability B. random C. quota D. stratified E. selective Answer: D 66. Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist; the best type of sampling for this research would be ________________ sampling. A. random B. quota C. population D. stratified E. nonquota Answer: D 67. In ________ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen. A. population B. random C. stratified D. probability E. nonprobability Answer: E 68. ________________ sampling is highly judgmental because the final choice of participants is left to the researchers. A. Stratified B. Random C. Cluster D. Area E. Quota Answer: E 69. When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using ________ A. quota sampling B. selective surveying C. random sampling D. stratified sampling E. researcher samples Answer: A 70. Quota sampling is most commonly used in ________ A. descriptive research B. population research C. surveys D. collecting primary data E. exploratory studies Answer: E 71. Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because ________ A. response rates are declining resulting to unreliable results B. primary data are so much cheaper and easier to gather C. survey data collection is highly inaccurate D. survey data do not provide in-depth responses E. the survey method has been replaced by the Internet Answer: A 72. Which of the following is a shortcoming associated with gathering primary data through surveys? A. Most companies do not have any funding for survey research. B. Fewer people are willing to participate in surveys. C. Laws significantly limit firms' ability to conduct surveys. D. Unreliable methods of distributing surveys make them difficult to conduct. E. Very little useful information is ever gathered from survey results. Answer: B 73. Which of the following surveys is most inflexible among the basic survey methods? A. Telephone survey B. Focus-group interview C. Personal interview survey D. Mail survey E. Observation Answer: D 74. Peter, the director of marketing at Holcomb Inc., calls in Andrea, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ________ survey. A. mail B. telephone C. random D. personal interview E. population Answer: A 75. Maggie is currently working on the three-year strategic plan for a professional hockey team. She needs data to help make decisions about a new pricing strategy, but she needs the data from a wide geographic area. She would like to have the best response but also has a limited budget for the project. Under these circumstances, Maggie should use ________ A. telephone surveys B. online surveys C. mail surveys D. shopping mall intercept interviews E. focus-group interviews Answer: C 76. The major disadvantage of a mail survey versus a telephone or personal survey is ________ A. having to offer high premiums and attractive incentives B. the failure of respondents to return the questionnaire C. the elimination of interview bias D. the lack of open-ended questions E. the high cost incurred in conducting the survey Answer: B 77. An offshoot of mail surveys, ________ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. A. purchase diaries B. telephone surveys C. online surveys D. focus-group interviews E. immediate feedback forms Answer: A 78. Compared to a mail survey, telephone surveys have ________ A. lower response rates but higher validity B. a slower response time, but less cost C. faster response time, but less cost D. fewer expenses overall E. higher response rates, but higher costs Answer: E 79. The manager of Mega Market, an online store, is interested in asking consumers what they think about the store's new web page and expanded product selection. If the manager would like to obtain a high response rate while avoiding interviewers’ travel expenses and have the study conducted as quickly as possible, which data collection method should be recommended? A. Mail survey B. Direct observation of consumers in the store C. Telephone survey D. Focus-group interview E. Shopping mall intercept interview Answer: C 80. Although telephone surveys can be conducted very quickly, a major limitation is ________ A. the inability to build rapport with respondents B. the difficulty in asking probing questions to every respondent C. that only a few companies prefer this survey method D. that only a small portion of the population likes to participate E. the high expense involved when compared to in-home interviews and other forms of surveys Answer: D 81. The use of land lines is declining, causing it to be more difficult for market researchers to ________ A. conduct personal interviews B. gain rapport through direct interaction C. conduct purchase diary surveys D. in-home interviews E. use phone surveys to collect a random sample Answer: E 82. Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? A. Total population surveys B. In-home (door-to-door) interviews C. Focus-group interviews D. Personal interview surveys E. Online surveys Answer: E 83. Marketing researchers typically Favor ________________ because they are most flexible. A. mail surveys B. direct observation C. experiments D. personal interviews E. telephone surveys Answer: D 84. Participants in ________________ frequently get to see pictures, products, advertising samples, and diagrams. A. online surveys B. personal interview surveys C. mail surveys D. telephone surveys E. probability samples Answer: B 85. If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use ________ A. observation method B. a focus-group interview C. an on-site computer interview D. a shopping mall intercept interview E. a telephone survey Answer: B 86. A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n) ________ A. in-home interview B. mail-group survey C. focus group interview D. shopping mall intercept interview E. chat room interview Answer: C 87. Emily Dawson and seven other people were hired by Encare to discuss a new product idea proposed by the firm. Researchers observed the interaction of the group. During the discussion, Emily was annoyed that Jack, another participant, seemed to “hog” the discussion and didn’t give others a chance to speak. This is an example of a problem when using ___________ A. focus group interviews B. group surveys C. personal interview surveys D. sampling teams E. group think Answer: A 88. Kelsey thinks she will be able to get the highest quality of responses regarding the product features from consumers through personal interviews. She decides to conduct her interviews at ________ because this is the most common location for personal interviews. A. a shopping mall B. a respondent's home C. an interviewer's home D. a respondent's office E. a city park Answer: A 89. A survey question that requires a yes or no answer is known as a ________ A. qualifier B. multiple-choice question C. 50-50 question D. dichotomous question E. bimodal question Answer: D 90. An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ________ question. A. open-ended B. dichotomous C. forced-sum-choice D. multiple-choice E. limited-choice Answer: A 91. Ice Max conducted a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions in the survey was, "Have you ever heard of a cola with twice the caffeine of regular colas?" This is an example of a(n) _________________ question. A. open-ended B. dichotomous C. multiple-choice D. imperative E. declarative Answer: B 92. An online survey conducted for students which registers them for their fall semester classes asked, "Do you think online professor evaluation forms would be better than paper and pencil forms administered during class?" This is an example of a(n) ________ question. A. close-ended B. short answer C. multiple-choice D. open-ended E. dichotomous Answer: E 93. For demographic purposes, a mail survey was sent out by the American Cancer Society asking each respondent to identify their race by choosing among a list of possibilities. This is an example of a(n) ________ question. A. dichotomous B. multiple-choice C. categorized D. open-ended E. optional response Answer: B 94. Cameras, counting machines, and scanners are used most often in ________ A. surveys B. secondary data gathering C. field settings D. observation E. experimentation Answer: D 95. Having recording biases and collecting only descriptive information are two of the primary drawbacks of ________ A. statistical interpretation B. mail surveys C. observation D. personal interviews E. experimentation Answer: C 96. If Spik & Span, the maker of Rapid dishwashing liquid, wants to know what percentage of customers examines product labels before making a product selection in the grocery store, it can best gain this information through ________ A. focus groups B. mail surveys C. personal interviews D. observation E. mall intercepts Answer: D 97. Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection? A. Observation uses secondary sources of data. B. Observation depends on mall interviews. C. Observation avoids direct contact with subjects. D. Observation focuses on open-ended questions. E. Observation works best for telephone surveys. Answer: C 98. Jamal has just finished collecting data about the texting habits of students during their lunch hour. He used both online surveys to ask the students about their texting behavior, as well as observational techniques in the cafeteria. What is the next step in the marketing research process for Jamal to begin? A. Reporting research results B. Selecting the research method C. Interpreting research findings D. Designing the research project E. Refining the research issue Answer: C 99. Carlos was given the task of conducting a research project for his firm. He proceeds with the following steps: he asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Carlos omitted? A. Collecting data B. Defining and locating problems C. Interpreting research D. Designing the research project E. Reporting research findings Answer: C 100. In the process of conducting marketing research, marketers should allow for ________ A. periodic review of data during the collection period B. continual evaluation of the data during the entire collection period C. no data review during collection; instead, they should wait for later interpretation of research findings D. descriptive research to solve general problems E. statistical analysis during the collection period Answer: B 101. Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions? A. Locating and defining problems or research issues B. Developing hypotheses C. Collecting data D. Interpreting research findings E. Reporting research findings Answer: D 102. ________ interpretation focuses on what is typical or what deviates from the average. A. Statistical B. Descriptive C. Exploratory D. Secondary E. Primary Answer: A 103. Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ________ step of the marketing research process. A. interpreting research findings B. reporting research findings C. collecting data D. designing the research project E. developing a hypothesis Answer: A 104. Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are "courteous." Which benchmark or comparison would be most useful for interpreting this result? A. The annual dollars spent at the store by those customers who believe store personnel are courteous. B. How the 50 percent figure compares with that for competitors. C. The percentage of store personnel who have completed training in customer service and public relations. D. How the 50 percent figure compares with industrial or wholesale institutions and stores. E. The percentage of store personnel who feel they are courteous to customers. Answer: B 105. The final step in the marketing research process is ________ A. interpreting research findings B. making sure the marketing research was conducted in an ethical manner C. putting the results into a written document that is technical and written in formal language D. reporting the research findings E. deciding what the next research project should investigate Answer: D 106. Corporate executives often prefer marketing research findings to be put into a report ________ A. that is full of statistical analysis B. which examines the ethical implications of implementing the results C. that exposes no deficiencies or limitations of the research process D. that is clear, short, and simply expressed E. which expresses the views of top management about the research problem Answer: D 107. In reporting marketing research findings, the researcher should ________ A. provide explanations in an easily understood language B. write the report in an extremely technical and statistical style C. fit the problem to a favored statistical technique D. not acknowledge any limitations associated with the study E. give management the answers it wants Answer: A 108. There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from ________ because the researcher wants to obtain favourable results. A. an inappropriate sample B. bias and distortion C. being objective about views and opinions D. in-house research departments E. hiring large research firms Answer: B 109. A framework for gathering and managing information from sources both inside and outside an organization is referred to as ________ A. marketing research agencies B. a marketing information system C. the marketing mix D. a marketing research system E. a secondary data system Answer: B 110. Which of the following best characterizes a marketing information system (MIS)? A. An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data. B. An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses. C. An MIS is conducted on a special-project basis when needed. D. An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system. E. An MIS involves internal information collection about employees and customers. Answer: B 111. The main focus of a marketing information system is on ________ A. the coordination of external information sources B. classifying data into the proper information categories C. data storage and retrieval D. accurate maintenance of inventory levels E. gathering information Answer: C 112. American Flooring sells all types of floor coverings to contractors and other businesses. It keeps a collection of information about all of its clients that can be easily accessed on the company's computer system. This collection of information is called a ________ A. marketing information system B. database C. management information system D. single-source data E. marketing decision support system Answer: B 113. Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going waste. Apparently, Bart needs to develop a ________ A. marketing research focus B. marketing knowledge bank C. marketing information system D. marketing strategy E. data-gathering system Answer: C 114. A(n) ________ is a collection of information arranged for easy access and retrieval. A. database B. marketing interpretation system C. marketing decision support system D. online information service E. e-mail system Answer: A 115. Information provided by a single firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is known as a ________ data. A. single-source B. census C. consumer demographic D. multi-point E. single-point Answer: A 116. Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with Hotline cards. This is a ________ A. a marketing information system B. a business software database C. online information D. U.S. Census data E. single-source data Answer: E 117. Max is the product manager for a new type of lumbar supports used in the production of office chairs. His company sells the lumbar supports to approximately 70 different chair manufacturers. The price for this new product still needs to be finalized. Max has decided to take the data recently collected in a marketing research study and apply it to different pricing scenarios in order to set the best price for his company. He will be utilizing computer software to obtain results from the various scenarios. Max is most likely using a ________ A. database B. marketing research system C. marketing information system D. marketing decision support system E. single-source system Answer: D 118. Marketing information systems and marketing research have changed rapidly because customers and companies around the world have been linked by ________ A. the computer B. the super database C. the Interactive network D. electronic online services E. evolving telecommunications Answer: E 119. The following are all guidelines for questionnaire construction that support ethical marketing research except to ________ A. allow the interviewer to introduce him/herself by name B. indicate that this is a marketing research project C. explain that no sales will be involved D. state the likely duration of the interview E. keep the name of the research company confidential Answer: E 120. Which of the following statements about conducting marketing research internationally is false? A. The marketing research process may need to be modified to allow for regional differences. B. A detailed search for and analysis of secondary data can help researchers gain a greater understanding of a particular marketing environment and pinpoint issues that must be taken into account in gathering primary research data. C. Primary data gathering may have a greater chance of success if the firm employs local researchers who better understand how to approach potential respondents and can do so in their own language. D. Specific differences among countries can have a profound influence in data gathering. E. Specific differences among countries have no effect on data gathering or the marketing research process. Answer: D Scenario 4.1 Use the following to answer the questions. Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television. The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion's success and offered the commercials nationwide. 121. Refer to Scenario 4.1. Kashi's testing of the Crunchy Wheat promotion is an example of ________ A. the collection of secondary data used in a descriptive study B. information feedback used in an exploratory study C. the collection of secondary data used in an exploratory study D. the collection of primary data used in a descriptive study E. the defining and locating problems through an observational technique Answer: D 122. Refer to Scenario 4.1. Suppose that when selecting the 5,000 homes to participate in scanner studies in one city, the research firm first divided the city's population into upper-, middle-, and lower-class families, then took a probability sample within each group. This would be a(n) ________ sample. A. random B. stratified C. area D. quota E. population Answer: B 123. Refer to Scenario 4.1. The 5,000 households that allowed their group purchases to be scanned are a ________ A. focus group B. quota C. sample D. target market E. population Answer: C 124. Refer to Scenario 4.1. In which stage of the marketing research process did the researchers compare the average sales of Crunchy Wheat for the group that saw the promotion with the average sales for the group that did not see the promotion? A. Defining and locating problems B. Reporting research findings C. Developing hypotheses D. Collecting data E. Interpreting research findings Answer: E Scenario 4.2 Use the following to answer the questions. Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Blue Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing. 125. Refer to Scenario 4.2. Colin developed a research design to aid his investigation. This design included a questionnaire that attempted to measure "outdoor activity preferences;" however, Colin's professor said that the questionnaire measured something other than the "outdoor activity preferences." The professor was questioning the research design's ________ A. reliability B. significance C. truthfulness D. corroboration E. validity Answer: E 126. Refer to Scenario 4.2. Besides administering the questionnaire, Colin observed people who went kayaking and canoeing on the Chatsworth River, making notes about their appearances and behavior. The type of data he collected is ________ data. A. indirect B. mechanical C. secondary D. primary E. direct Answer: D 127. Refer to Scenario 4.2. Before administering the questionnaire, Colin discovered, through talking to other sports rental businesses, that although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Colin decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ________ sampling. A. quota B. stratified C. random D. representative E. area Answer: A 128. Marketing research is a systematic and orderly gathering of information supplied through the routine reporting system within the organization. A. True B. False Answer: False 129. The purpose of marketing research is to inform an organization about customers' needs and desires, marketing opportunities for particular goods and services, and changing attitudes and purchase patterns of customers. A. True B. False Answer: True 130. The first sign of a problem is usually a departure from some normal function, such as a failure to attain objectives. A. True B. False Answer: True 131. The key to locating and defining problems is always to probe beneath any superficial symptoms. A. True B. False Answer: True 132. Marketing research can be used to test a hypothesis. A. True B. False Answer: True 133. A hypothesis is a fact about the problem or topic under investigation. A. True B. False Answer: False 134. The hypothesis being tested determines the general data-gathering approach to use. A. True B. False Answer: True 135. Exploratory research is concerned with identifying the characteristics of markets or categorizing market activities. A. True B. False Answer: False 136. Conclusive research is used when marketers need more information about a problem or want to make a tentative hypothesis more specific. A. True B. False Answer: False 137. Descriptive research can be used to better understand the characteristics of certain phenomena to solve a particular problem. A. True B. False Answer: True 138. Experimental research is used to make tentative hypotheses more specific. A. True B. False Answer: False 139. A research technique is said to be reliable if it produces almost identical results in successive repeated trials. A. True B. False Answer: True 140. If a research method measures what it is supposed to measure, it is said to be reliable. A. True B. False Answer: False 141. The opportunity to obtain data via the Internet has resulted in more than half of all marketing research coming from secondary sources. A. True B. False Answer: True 142. Secondary data are data collected from inside the organization; primary data are those collected from outside the organization. A. True B. False Answer: False 143. One of the most overlooked sources of secondary data is the organization's own accounting records. A. True B. False Answer: True 144. Survey and observation are considered secondary data collection techniques. A. True B. False Answer: False 145. Data regarding attitudes toward a particular product are collected. To test a hypothesis, the data are used and then stored. If these data are used again in a future research study, they will be considered primary data. A. True B. False Answer: False 146. The technique of sampling in marketing research is the process of selecting representative units from a total population (a sample) and being able to project the characteristics of the total population from the sample considered. A. True B. False Answer: True 147. In probability sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen. A. True B. False Answer: False 148. Stratified sampling may reduce some of the error that could occur in a simple random sample. A. True B. False Answer: True 149. In quota sampling, all elements in a population have an equal chance of appearing in the sample. A. True B. False Answer: False 150. The four fundamental survey methods used to obtain data in marketing research are telephone surveys, mail surveys, online surveys, and personal interviews. A. True B. False Answer: True 151. Results of a mail survey can be misleading if there is a high non-response rate. A. True B. False Answer: True 152. Telephone surveys allow an interviewer to gain rapport with respondents and to ask probing questions. A. True B. False Answer: True 153. A telephone survey is a good example of a completely random sample for the entire population. A. True B. False Answer: False 154. The potential advantages of traditional mail surveys are quick response and lower cost than online surveys. A. True B. False Answer: False 155. The in-home (door-to-door) interview is an example of a focus-group interview. A. True B. False Answer: False 156. Focus-group interviews are useful if the researcher is interested in observing group interaction. A. True B. False Answer: True 157. Customer advisory boards are small groups of actual customers who serve as sounding boards for new product ideas and offer insights into their feelings and attitudes toward a firm's products, promotion, pricing, and other elements of marketing strategy. A. True B. False Answer: True 158. An on-site computer interview is a variation of the shopping mall intercept interview. A. True B. False Answer: True 159. One common mistake in questionnaire construction is developing the questionnaire before objectives have been established. A. True B. False Answer: True 160. Three types of objective questions that can be designed for questionnaires are closed questions, linkage questions, and monochotomous questions. A. True B. False Answer: False 161. In observation method of research, researchers avoid direct contact with subjects and instead monitor their actions systematically. A. True B. False Answer: True 162. Observation may be used in combination with interviewing. A. True B. False Answer: True 163. Marketing researchers should allow for continual evaluation of the data during the entire data collection period. A. True B. False Answer: True 164. The first step in drawing conclusions from most research is to rank the data according to importance. A. True B. False Answer: False 165. Statistical interpretation focuses on what is typical or what deviates from the average. A. True B. False Answer: True 166. The final step in the marketing research process is to assess the ethicality of the data collection phase. A. True B. False Answer: False 167. In general, corporate executives prefer research reports that are short, clear, and simply expressed. A. True B. False Answer: True 168. Unethical behavior in the research process is not a major problem in the reporting of research findings. A. True B. False Answer: False 169. A marketing information system provides an irregular and unstructured flow of information from internal sources within the organization. A. True B. False Answer: False 170. In the MIS, the means of gathering data receive less attention than the procedures for expediting the flow of information. A. True B. False Answer: True 171. The main difference between marketing research and a marketing information system is that the MIS is an information-gathering process for specific situations whereas marketing research provides continuous data input. A. True B. False Answer: False 172. A database is a collection of information arranged for easy access and retrieval. A. True B. False Answer: True 173. Marketers can only use databases developed by other firms. A. True B. False Answer: False 174. A marketing decision support system aids marketing managers in decision making by helping them to anticipate the effects of certain decisions. A. True B. False Answer: True 175. Ethical issues are a constant risk in gathering and maintaining consistently high-quality information. A. True B. False Answer: True 176. When conducting marketing research in another country, researchers should begin by using focus groups and other survey methods to refine their understanding of customer needs and preferences. A. True B. False Answer: False 177. Crowdsourcing refers to the process of taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call. A. True B. False Answer: True 178. Online focus groups gather data from large and geographically diverse groups in a less intensive manner than focus-group interviews. A. True B. False Answer: True 179. Online focus groups are more expensive than tradition sit down groups. A. True B. False Answer: False Test Bank for Foundations of Marketing William M. Pride, O. C. Ferrell 9781285429779, 9781439039441

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