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Chapter 9—Marketing Research TRUE/FALSE 1. A marketing decision support system (DSS) is an interactive, flexible, computerized information system that bypasses information-processing specialists and gives managers access to useful information from their own desks. Answer: True Rationale: A marketing decision support system (DSS) provides managers with interactive, flexible, and computerized access to relevant information directly from their desks, facilitating informed decision-making without the need for specialized information-processing professionals. 2. A true marketing decision support system is interactive, flexible, discovery oriented, and accessible. Answer: True Rationale: A true marketing decision support system (DSS) is characterized by its interactive nature, flexibility to explore data, discovery-oriented capabilities, and accessibility, enabling managers to analyze information effectively and make informed strategic decisions. 3. Marketing research has three roles: persuasive, reminder, and informative. Answer: False Rationale: The three roles are descriptive, diagnostic, and predictive. 4. Marketing research is the function that links the consumer, customer, and public to the marketer through information. Answer: True Rationale: Marketing research serves as the conduit that connects the marketer with consumers, customers, and the public by gathering and providing relevant information to inform marketing strategies and decisions. 5. The first step in the marketing research process is to identify and formulate the problem/opportunity. Answer: True Rationale: Identifying and formulating the problem or opportunity is indeed the initial step in the marketing research process, setting the foundation for defining research objectives, gathering data, and generating insights to address the identified issue or opportunity effectively. 6. The last step in the marketing research process is to prepare and present the report. Answer: False Rationale: The last step is to follow up. See Exhibit 9.1. The last step in the marketing research process is actually to follow up, which involves implementing the findings, monitoring outcomes, and taking action based on the research results to address the identified problem or opportunity effectively, as shown in Exhibit 9.1. 7. To save money on marketing research, a marketing manager suggests that the company use the results of a survey conducted last year because similar questions were asked then. The manager is suggesting use of primary data. Answer: False Rationale: This is describing secondary data, which are data previously collected for any purpose other than the one at hand. 8. The quality of secondary data should never be questioned. Answer: False Rationale: The quality of secondary data may pose a problem, so researchers should ask: Who gathered the data? Why were the data obtained? What methodology was used? And so on. 9. Stuart Marketing Research is gathering information on the way people wrap gifts specifically for a large manufacturer of gift wrap paper that is considering introducing reusable wrapping paper with Velcro fasteners. The information gathered would be an example of primary data. Answer: True Rationale: Stuart Marketing Research collecting information directly from people about their gift-wrapping habits for a manufacturer's potential new product represents primary data, which is firsthand information gathered through surveys, interviews, or observations for specific research purposes. 10. The most popular technique for gathering primary data is by observation. Answer: False Rationale: The most popular technique for gathering primary data is survey research. 11. Compared to the personal interview, the telephone interview costs less, but cost is rapidly increasing due to respondent refusals to participate. Answer: True Rationale: Telephone interviews generally cost less than personal interviews but are increasingly affected by respondent refusals, which can escalate costs as more efforts are needed to reach and engage willing participants in the survey process. 12. Fisher-Price employees were engaged in experimental research when they observed, from behind a mirror, children playing with soap bubbles and decided to build a toy lawn mower that spewed soap bubbles. Answer: False Rationale: Experimental research occurs when the researchers alters one or more variables. This is an example of observation research. 13. Ethnographic research is a form of experiment research because it is conducted without any preconceptions. Answer: False Rationale: Ethnographic research is the study of human behavior in its natural context and is a form of observation research. 14. The best experiments are those in which one factor is held constant and the other factors of interest are deliberately manipulated. Answer: False Rationale: In experiments, the goal is to hold all variables constant except the variable of interest. 15. In a probability sample, every element in the population has a known statistical likelihood of being selected. Answer: True Rationale: In probability sampling, every element or unit in the population has a known and non-zero chance of being selected for inclusion in the sample, ensuring that the sample accurately represents the population and allowing for statistical inference from the sample to the population. 16. Martina was interested in how students perceive the health service provided by her university. To collect data on this issue, she interviewed the students in her evening class. Martina has used a random sampling procedure. Answer: False Rationale: This describes a convenience sample. 17. Measurement error occurs when a sample somehow does not represent the target population. Answer: False Rationale: This is the definition of sampling error. Measurement error occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process. 18. A snowball sample is a type of probability sample. Answer: False Rationale: It is a nonprobability sample and involves selecting additional respondents on the basis of referrals from the initial respondents. See Exhibit 9.4. 19. Once adequate amounts of data have been collected, the researcher should present the report. Answer: False Rationale: The data must be analyzed and interpreted before a meaningful report can be prepared. 20. One advantage of Internet surveys is dramatically reduced costs. Answer: True Rationale: Internet surveys offer significantly reduced costs compared to traditional survey methods due to lower distribution, data collection, and processing expenses, making them a cost-effective option for reaching large and diverse respondent groups efficiently. 21. Because online surveys are still in their infancy, there are limited methods of conducting online surveys. Answer: False Rationale: There are several basic methods for conducting online surveys: Web survey systems, survey design and Web hosting sites, and online panel providers. 22. The difference between a traditional focus group and an online focus group is that there is no moderator in the online group like there is in a traditional group. Answer: False Rationale: A moderator runs the group by typing questions online for all to see and respondents “on the fly.” 23. One advantage of an online focus group is that respondents tend to talk more freely about issues that might create inhibitions in a face-to-face group. Answer: True Rationale: Online focus groups can encourage more open and honest responses from participants compared to face-to-face groups, as respondents may feel less inhibited discussing sensitive or personal topics from the comfort and anonymity of their own environment. 24. An online message board consists of a selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation. Answer: False Rationale: This is a Web community. 25. For inexpensive research that reaches a broad demographic and has high response rates, blogging assignments are the best electronic choice. Answer: False Rationale: Text-message based research is the best choice for inexpensive research that reached a broad demographic group (because so many people have mobile phones) and has high response rates (because it is so quick). 26. Scanner-based research is a system of gathering information from a group of respondents by continuously monitoring the promotions panel members are exposed to and their subsequent purchase behavior. Answer: True Rationale: Scanner-based research involves continuously monitoring the purchases of panel members and their exposure to promotions through retail scanner systems, providing real-time data on consumer behavior and the effectiveness of marketing initiatives. 27. Los Hermanos Cafe has successfully operated seven restaurants in the same community for 20 years. Management plans to introduce an egg and cheese breakfast burrito to three restaurants after having success with this product in its other four restaurants. Since management knows this market so well, Los Hermanos Cafe doesn’t need to conduct research before introducing the new product in its remaining restaurants. Answer: True Rationale: When the market is known to such a degree that the benefits of additional research do not out-weigh the cost of that research, then there is no need for research. 28. A company that identifies customer relationships with the organization, captures relevant customer data from interactions, stores and integrates that customer data, and identifies its profitable customers is implementing a customer relationship management cycle. Answer: True Rationale: Implementing a customer relationship management (CRM) cycle involves identifying customer relationships, capturing relevant data, integrating and storing customer information, and analyzing it to enhance relationships and identify profitable customers, aiming to optimize customer interactions and satisfaction. MULTIPLE CHOICE 1. Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans is referred to as: A. competitive intelligence B. marketing information C. decision support information D. marketing research E. observation Answer: B Rationale: This describes marketing information, and accurate and timely information is the lifeblood of marketing decision making. 2. A(n) _____ is an interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions. A. expert system B. marketing information system C. artificial intelligence system D. marketing decision support system E. database marketing system Answer: D Rationale: This is the definition of a marketing decision support system. 3. According to the text, a true marketing decision support system should be flexible, which means: A. managers can probe for trends, isolate problems, and ask “what if” questions B. managers who aren’t skilled with computers can easily learn to use the system C. managers are able to sort, regroup, total, average, and manipulate data in various ways D. managers can give simple instructions and see immediate results E. managers can find optimum solutions to marketing problems Answer: C Rationale: In the textbook, flexible is described as allowing managers to sort, regroup, total, average, and manipulate data in various ways. 4. A true marketing decision support system possesses all of the following characteristics EXCEPT: A. flexible B. discovery oriented C. interactive D. accessible E. synergistic Answer: E Rationale: A true marketing decision support system is interactive, flexible, discovery oriented, and accessible. 5. _____ is the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. A. Electronic targeting B. Sampling procedure specification C. Database marketing D. Competitive data mining E. Consumer behavior marketing Answer: C Rationale: This is the definition of database marketing. 6. _____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The results of this analysis are then communicated to management. A. Data collection B. Artificial intelligence C. Decision support D. Marketing research E. Single-source research Answer: D Rationale: This is the definition of marketing research. 7. The owner of a small chain of local coffeehouses could use _____ to determine why customers do not seem to like the location of her new coffeehouse. A. transactional marketing B. public relations C. an EDI system D. market synergy E. marketing research Answer: E Rationale: Marketing research provides decision makers with data on the effectiveness of the current marketing mix and insights for necessary changes. 8. Soon after the Chenault Military Museum expanded its hours and began charging a small fee to pay for the extra help needed to keep it open longer, attendance decreased. To determine why this decrease in attendance occurred, the museum staff could rely on: A. a production audit B. database marketing C. marketing research D. an internal marketing audit E. secondary data Answer: C Rationale: The diagnostic role of marketing research includes explaining data, which in this case could be used to find out why attendance declined. 9. The publisher of a Canadian business magazine wanted to make several major changes in the magazine’s content and format. To determine what changes would be supported by its subscribers and what changes would not be welcomed, the publisher should engage in: A. advertising B. database marketing C. marketing research D. a data retrieval system E. secondary data Answer: C Rationale: Marketing research would be appropriate to use to determine how the publisher could provide greater customer satisfaction. 10. Marketing research has three functional roles. These roles are: A. normative, descriptive, and explanatory B. predictive, normative, and persuasive C. descriptive, diagnostic, and predictive D. flexible, interactive, and discovery-oriented E. descriptive, explanatory, and predictive Answer: C Rationale: The three roles are descriptive, diagnostic, and predictive. 11. Volkswagen developed an 18-month-long project to gain a better understanding of the American culture so it could develop cars more appealing to this market. The research project was called Moonraker. Moonraker was intended to play a(n) _____ role in Volkswagen’s marketing research. A. diagnostic B. descriptive C. predictive D. heuristic E. demonstrative Answer: B Rationale: One of the roles of marketing research is the gathering and presentation of factual statements, which includes reporting consumers’ attitudes toward a product. 12. The Johnsonville Sausage Company wants to know which areas of the country consume the most sausage. The company is not especially interested in an explanation for the popularity of sausage in different regions; it simply wants factual information about it. Johnsonville is interested in using marketing research in its _____ role. A. historical B. descriptive C. predictive D. normative E. objective Answer: B Rationale: The descriptive role of marketing research includes gathering and presenting factual statements. 13. Phillip Morris USA, the manufacturer of the Marlboro Ultra Smooth cigarette targeted to people who want to smoke a potentially safer cigarette, has asked for marketing research to explain the reasons for the recent failure of the new cigarette. This type of research is described as: A. descriptive B. predictive C. diagnostic D. normative E. historical Answer: C Rationale: One of the roles of marketing research is to be diagnostic and to explain what happened. 14. Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if an integrated advertising campaign targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research. A. historical B. descriptive C. predictive D. normative E. objective Answer: C Rationale: The three roles of marketing research are descriptive, diagnostic, and predictive. The predictive function is to address “what if” questions. 15. After listening to a group of middle-aged women discuss their biggest concerns about the jeans they wore, a company designed a new line of comfortable women’s jeans and touted them as “not your daughter’s jeans.” This is an example of research conducted to: A. improve the quality of their decision making. B. find out why a marketing plan failed. C. learn how to more efficiently retain customers. D. understand the ever-changing marketplace. E. do all of these. Answer: A Rationale: Management used this information to improve their decision making in marketing jeans to women. 16. The first step in the marketing research process is to: A. specify the sampling plan B. collect the data C. analyze the marketplace D. plan the research design E. identify and formulate the problem/opportunity to be studied Answer: E Rationale: See Exhibit 9.1. According to the marketing research process, the initial step involves identifying and formulating the problem or opportunity to be studied, setting the foundation for designing the research approach, gathering data, and deriving insights to address the identified issue effectively, as indicated in Exhibit 9.1. 17. When Eurasia restaurant, serving Eurasian cuisine, first opened along Chicago’s Michigan Avenue, its novelty brought many diners. However, it turned off the important business lunch crowd, and sales went into decline. Before conducting any marketing research to explain the declining sales, management needs to: A. determine who will be most likely to respond to a survey. B. select a market sample from everyone in the population. C. define the problem to be researched. D. develop a survey to find out exactly what’s wrong. E. enumerate the decision factors. Answer: C Rationale: To respond to a symptom, one should identify the underlying problem. 18. A small brewery has noticed a 20 percent decrease in the sale of its dark beer over the last three years. The company’s owner wants to determine why the decline has occurred and how to reverse the trend. Once the owner has identified the problem as a consumer perception that dark beer is bitter and calorie laden, its next step in the marketing research process should be to: A. collect the data B. recognize the marketing problem C. analyze the marketplace D. plan the research design E. specify the sampling plan Answer: D Rationale: Once the problem is identified and formulated, the next step is to plan the research design and gather primary data. See Exhibit 9.1. 19. The marketing research problem: A. is information oriented. B. involves determining what resources will be used in research efforts. C. is action driven. D. does not rely on managerial experience. E. is accurately described by none of these choices. Answer: A Rationale: One characteristic of the marketing research problem is that it is information oriented and involves determining what information is needed and how that information can be obtained efficiently and effectively. 20. In contrast to marketing research problems, management decision problems are: A. action oriented. B. pervasive. C. narrower in scope. D. synergistic. E. information oriented. Answer: A Rationale: The marketing research problem is information oriented, but the management decision problem is action oriented. 21. Managers must combine specific pieces of information needed to identify the marketing research problem. Their _____ is to provide insightful decision-making information. A. company-correlated goal B. autonomous task C. dichotomous goal D. marketing research objective E. field service objective Answer: D Rationale: This is the objective of the marketing research. 22. Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data. A. single-source B. secondary C. primary D. consensual E. convenience Answer: B Rationale: This is the definition of secondary data. 23. Which of the following is a type of nonprobability sample? A. Stratified sample B. Systematic sample C. Cluster sample D. Random sample E. Judgment sample Answer: E Rationale: Nonprobability samples are any samples in which little or no attempt is made to get a representative cross section of the population. A judgment sample is based on the researcher’s personal judgment that the elements (persons) chosen will likely give accurate information. See Exhibit 9.4. 24. Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership––all information that was on hand and did not require any new research to locate. The market researcher looked at: A. a closed study. B. secondary data. C. primary data. D. a statistical analysis. E. priority databases. Answer: B Rationale: Secondary data are data previously collected for any purpose other than the one at hand. 25. Trade groups, commercial publications, and government departments can be used as sources of: A. secondary data B. consensual information C. primary data D. artificial intelligence E. marketing audits Answer: A Rationale: Innumerable outside sources of secondary information exist, such as trade and industry associations, business periodicals, and government departments and agencies. 26. While many economic indicators have been negative during the first half of 2009, the Wall Street Journal recently reported that U.S. retail sales were actually up in April. In fact, the performance of 61 percent of the retailers in the study topped analysts’ expectations. If Costco used this report as factor in their expansion plans, they would be using _____ data. A. secondary B. primary C. dichotomous D. convenience E. observation Answer: A Rationale: Data previously collected for purposes other than the one at hand are an important source of information known as secondary data. 27. All of the following are examples of secondary data EXCEPT: A. a first-time physical count of the number of cars passing through an intersection to determine the need for a traffic signal. B. a census report on the number of people who are native to a community. C. any product testing results made available to the media. D. a collection of trade journal articles about the future of a particular industry. E. a newspaper story describing the lifestyle of the average Internet user. Answer: A Rationale: Of the choices, all are secondary data except the physical count of cars done for the first time, which would be primary data. 28. When assessing the quality of secondary data, it is: A. not necessary to know why the data were collected in the first place B. important to be able to have easy access to the data C. important to know the purpose for which the data were originally collected D. not important to know when the data were collected E. imperative to use the same methods and procedures when primary data are collected Answer: C Rationale: To assess the quality of the data, it is important to know when, where, why, and how the data were originally collected. 29. Radio One is the largest U.S. radio broadcasting company targeting black Americans today. Radio One staffers are constantly reviewing secondary information looking for any emerging trends in their target market. Potential disadvantages of this research approach include: A. the questionable quality of the data B. the high cost of collecting secondary data C. the length of time it takes to collect secondary data D. interviewer bias during the collection process E. the potential for sampling error Answer: A Rationale: The quality of secondary data can be a problem. Often secondary data sources do not give detailed information that would enable a researcher to assess their quality or relevance. 30. A _____ is a company that acquires, catalogs, reformats, segments, and resells reports already published by marketing research firms. A. syndicated vendor B. research directory C. marketing research aggregator D. secondary data provider E. marketing research compiler Answer: C Rationale: This is the definition of a marketing research aggregator. 31. _____ specifies the research questions to be answered, how and when the data will be gathered, and how the data will be analyzed. A. A secondary data use plan B. The research collaborative plan C. An autonomous director D. The research design E. The sampling plan Answer: D Rationale: This is the function of the research design, and once approved, the project budget is finalized. 32. The research design specifies: A. follow-up procedures for the research B. the information that will be found C. how the final report will be written D. how the information gathered will be used to predict external environmental changes E. the research questions to be answered Answer: E Rationale: The research design specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed. 33. Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data. A. primary B. secondary C. dichotomous D. observation E. convenience Answer: A Rationale: This is the definition of primary data. 34. When a university began thinking about offering more online degrees, it used primary data to get potential students’ attitudes and intentions. What is the most likely reason for using primary data? A. This information was already freely available to all interested parties. B. The value of the research is unrelated to sample size. C. The information can be collected quickly and at low cost. D. The information will fit the university’s needs exactly since it will be collected specifically for this study. E. It will benchmark consumers’ interest in grading equipment. Answer: D Rationale: Primary data are information collected for the first time for the purpose of solving a particular problem under investigation. 35. When Wilson, a manufacturer of tennis racquets, sent a team of researchers, designers, and tennis pros out to visit with 40 women tennis players of various abilities in locations from California to Florida to find out what women players want in a racquet, what kind of research were they conducting? A. Heuristic B. Primary C. Cohesive D. Random E. Secondary Answer: B Rationale: Primary research is conducted when data are gathered for the first time to answer a specific research question. 36. What is the chief advantage of primary data? A. Low cost compared to secondary data B. Answers specific research questions that secondary data cannot answer C. Availability to any interested party for use D. Accessibility through computerized databases E. Avoiding interviewer biases Answer: B Rationale: Primary data are information collected for the first time for the purpose of solving a particular problem under investigation. 37. Community Trust Bank’s management decided to design a new product and promotion to appeal to small to medium-sized businesses. A researcher conducted a series of focus groups with business owners to find out more about what they wanted in bank services. With the focus groups, Community Trust was collecting _____ data. A. primary B. ethnographic C. consensual D. secondary E. collaborative Answer: A Rationale: Primary data is information collected for the first time, and the use of focus groups is one way of collecting such data. 38. Research done by ShopLocal.com found that Americans today are concerned enough about sustaining the environment that they are willing to spend more. Suppose that to cut the cost of the research, ShopLocal.com included a second study asking consumers about their preferences in the upcoming presidential elections. This research would be an example of: A. a dual-purpose analysis. B. a piggyback study. C. a Siamese twin project. D. a two-for-one integrative study. E. dual experimentation. Answer: B Rationale: Piggyback studies collect data on two different projects using one questionnaire. 39. The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes. A. heuristic oriented B. survey research C. experiments D. observation research E. single-source research Answer: B Rationale: Survey research takes several forms and is the most popular method for gathering primary data. 40. In-home personal interviews: A. offer high-quality data at a high cost B. offer the ability to obtain high-quality data at a low cost C. are becoming increasingly more popular D. are less expensive than mall intercepts E. offer information of moderate quality but at a low cost Answer: A Rationale: The cost of interviewer time and mileage is high, but these interviews yield high-quality information. See Exhibit 9.2. 41. Which type of survey research method involves interviewing people in the common areas of shopping malls? A. Telephone interviews B. Panel surveys C. Mall intercept interview D. Centralized interviews E. Interactive research Answer: C Rationale: This is the definition of a mall intercept interview. 42. A major limitation of the mall intercept interview is: A. the difficulty of measuring attitudes and opinions. B. the need to interview people standing up. C. its high cost relative to in-home interviews. D. the difficulty of demonstrating new products. E. the difficulty of obtaining a representative sample of the population of interest. Answer: E Rationale: One drawback of a mall intercept interview is that it is hard to get a representative sample of the population. 43. A furniture manufacturer wants to test how consumers will respond to furniture upholstered in fabric made from recycled plastic by having consumers feel and respond to the fabric. Which form of survey would allow it to do this? A. A telephone interview B. A mail questionnaire C. A mall intercept D. An observation study E. A laboratory test Answer: C Rationale: A mall intercept allows demonstration of the product, and the others do not. Observation studies and laboratory tests are not types of surveys. 44. Computer-assisted personal interviewing and computer-assisted self-interviewing are computerized techniques for conducting: A. CLT interviews. B. mall intercept interviews. C. e-mail interviews. D. in-home interviews. E. focus groups. Answer: B Rationale: Computer technology can be applied by marketing researchers when conducting mall interviews. 45. Which of the following is an interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent’s data directly into the computer? A. Central-location interviewing facility B. Computer-assisted personal interviewing C. Computer-assisted self-interviewing D. Direct-entry interviewing E. Computer-mediated interviewing Answer: B Rationale: This is the definition of computer-assisted personal interviewing. 46. Which of the following is an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer? A. Central-location interviewing B. Computer-assisted personal interviewing C. Computer-assisted self-interviewing D. Primary interviewing E. secondary interviewing Answer: C Rationale: This is the definition of computer-assisted self-interviewing. 47. A _____ is a specially designed phone room used to conduct telephone interviewing. A. controlled-feedback facility (CFF) B. collaboratively located communications (CLC) center C. multi-interviewer location site D. central-location telephone (CLT) facility E. telephone outsourcing center Answer: D Rationale: This is the definition of a central-location telephone (CLT) facility. This type of facility has many phone lines, individual interviewing stations, sometimes monitoring equipment, and headsets. 48. Telephone interviews offer: A. speed in gathering data. B. a potential for reaching all households. C. few nonresponses. D. the ability to collect large amounts of complex data. E. the lowest-cost method for obtaining data. Answer: A Rationale: Telephone interviews are one of the fastest means for collecting data. See Exhibit 9.2. 49. The office of lieutenant governor was vacated, and a special election was called to fill the office. When the head of the state’s Department of Education decided she might run for the office, she was unsure how running for this office could affect her long-term plans for running for the office of U.S. senator. She has hired a research company to obtain survey data from voters in the state. Given that she must make a decision in less than three weeks, the research company should use: A. a telephone survey. B. focus group interviews. C. personal interview surveys. D. a mail survey. E. a passive people meter. Answer: A Rationale: The quickest way to ascertain this information would be a telephone survey of state voters. 50. Low response rate is a problem commonly associated with: A. exit interviews. B. executive interviews. C. mail surveys. D. mall intercept interviews. E. in-home interviews. Answer: C Rationale: Mail surveys often have low response rates. 51. You must conduct research to find out a great deal of information about the motives and desires of potential customers for a home delivery grocery service. You need a sample of at least 300 people who spend at least $100 weekly at the supermarket, and you don’t have a lot of money to conduct the research. You should use: A. a marketing experiment. B. in-home personal interviews. C. focus group interviews. D. mail surveys. E. observation research. Answer: D Rationale: Mail surveys are the least expensive method of data collection for a sample of this size when a lengthy survey is required. 52. A company wanted to collect data on consumers’ perceptions of its new brand. The marketing research director has recommended using a mail panel operated by Synovate. What can the company expect from a mail panel? A. A very high response rate B. The response rate will be low, as it is for all self-administered surveys C. The participants are not usually compensated for their assistance, so it will be inexpensive D. Data collection is more rapid than with telephone interviews E. The panel of consumers will meet monthly to discuss products that were sent to them to try Answer: A Rationale: Mail panel members are recruited to be used as a sample several times, and response rates of 70 percent are not uncommon. 53. Which of the following is a type of survey that involves interviewing businesspeople at their offices concerning individual products or services? A. Place-based interviews B. CLT interviews C. Business panel surveys D. Executive interviews E. Professional interviews Answer: D Rationale: This is the definition of an executive interview. 54. _____ require the best interviewers because they are often interviewing on topics about which they know very little. A. Mall intercept interviews B. CLT interviews C. Mail panel surveys D. Executive interviews E. Focus groups Answer: D Rationale: Executive interviews are expensive and time-consuming, and the interviewers frequently must talk about topics with which they are unfamiliar. 55. In which of the following situations would a marketing researcher be most likely to use executive interviews? A. A manufacturer of extruded plastic wants to determine where there are other markets for its products B. A manufacturer of frozen dinners wants to research the eating habits of its target market C. The producers of children’s programming on public television want to learn more about the viewing habits of an audience composed of 5- to 12-year-old males D. A shampoo manufacturer wants to test which smells consumers perceive as relaxing and exhilarating E. An aluminum can manufacturer wants to research how people are disposing of cans Answer: A Rationale: In executive interviews, businesspeople are interviewed concerning industrial products or services. 56. Health providers have voiced concerns about the use of pesticides and the negative effects they possibly have on our health. A large insurance company is willing to sponsor a meeting of the nation’s largest organic growers, pesticide producers, and retailers of organic foods if there is an interest in a cooperative effort to improve customers’ perception of eating healthy. What type of survey technique would be most appropriate for determining if there is any real interest in such a meeting? A. Cyber focus groups B. Executive interviews C. Mall intercept interviews D. CLT interviews E. In-home interviews Answer: B Rationale: Since this is a topic where the respondent should be a product user as opposed to a consumer, executive interviews are the most appropriate. 57. A _____ is a form of personal interviewing that uses a group of seven to ten people who have been recruited because of certain desired consumer characteristics. A. passive people meter B. primary data group C. cross-tab set D. CLT interview E. focus group Answer: E Rationale: This is the definition of a focus group. 58. British Columbia’s Sun-Rype Products wanted to find out if Canadians were having trouble getting their required servings of fruits and vegetables each day. Marketers conducted focus groups, a type of _____, which revealed that participants were having particular trouble getting their required servings of vegetables. A. mail survey B. mall intercept C. ethnographic research D. personal interviewing E. experiment Answer: D Rationale: A focus group is a type of personal interviewing in which seven to ten people participate in a group discussion led by a moderator. 59. Your supervisor has instructed you to conduct a marketing research effort that will determine how your company’s business customer demographics have changed. You have also been instructed to use primary data. You will: A. gather data from Standard & Poor’s General Information File. B. develop a mail survey to study your primary market. C. employ studies done by the Federal Trade Commission. D. make sure you locate Internet information by using a search engine. E. ask the National Industrial Conference Board for its latest study. Answer: B Rationale: Primary data can be obtained through the use of mail surveys. Other methods describe the use of secondary data. 60. Levi Strauss recently introduced its new Totally Slimming jeans. The idea for the jeans came from a group session conducted last August in which a group of moms made it clear they were tired of low-rise styles. Instead, they wanted jeans that were comfortable while covering up problem areas and that showed off their figures. Levi’s used this _____ data as the basis for designing this new line of jeans. A. primary B. secondary C. dichotomous D. convenience E. ethnographic Answer: A Rationale: Primary data are information that is gathered for the first time for solving a particular problem, which in this case was done through the use of a focus group. 61. A regional airport manager conducted research to get a better understanding for the types of concessionaires to include in the planned terminal remodeling. She conducted two sets of group interviews, one with ten leisure flyers and another with ten business flyers. In each group, participants discussed what types of food, retail, and other services they wanted in the new terminal. These discussions are examples of: A. extended interviews. B. focus groups. C. observation. D. ethnographic research. E. secondary research. Answer: B Rationale: Focus groups consist of seven to ten people who participate in a group discussion led by a moderator. 62. Which type of interview question encourages an answer phrased in the respondent’s own words? A. A scaled-response question B. A Likert item C. A closed-ended question D. An open-ended question E. A free-form question Answer: D Rationale: This describes an open-ended question. 63. Representatives of the Tourism Board of Arkansas visited state welcome centers and asked visitors to the state, “What is your reason for coming to Arkansas?” This would be an example of a(n) _____ question. A. scaled-response B. Likert scale C. open-ended D. dichotomous E. multiple choice Answer: C Rationale: The question encouraged an answer phrased in the customer’s own words. 64. A pediatrician’s office noticed that fewer parents are bringing their children in for their vaccinations and routine checkups. The office sent out a questionnaire to parents whose children are behind in their shots. The questionnaire included the question “Why are you reluctant to have your child vaccinated?” This would be an example of a(n): A. dichotomous response B. sampling frame question C. scaled-response question D. closed-ended question E. open-ended question Answer: E Rationale: Open-ended questions encourage unlimited answer choices phrased in the respondent’s own words. 65. You have been given the task of creating a questionnaire that requires each respondent to provide a rich array of information based on his or her own frame of reference. Which of the following types of questions would best deliver such information? A. True-false questions B. Mix-and-match questions C. Open-ended questions D. Scaled-response questions E. Closed-ended questions Answer: C Rationale: Open-ended questions encourage unlimited answer choices phrased in the respondent’s own words. 66. Which type of survey question is a closed-ended question designed to measure the intensity of a respondent’s answer? A. A semantic differential B. A scaled-response question C. An interval-based question D. A sampling frame question E. A bounded-frame question Answer: B Rationale: This is the definition of a scaled-response question. 67. In the survey used by an organization of mothers who swap toys, respondents were asked, “Would you be willing to pay a small fee in order to take advantage of this service? Circle YES or NO.” This is a(n) _____ question. A. open-ended B. sampling frame C. scaled-response D. double-barreled E. dichotomous Answer: E Rationale: Dichotomous questions ask questions that can be answered with “yes” or “no.” 68. A survey by RoperASW asked consumers to check where they were most likely to look for information about a new book. Possible answers were book club catalogs, book reviews in newspapers, book reviews in magazines, television programs, friends, radio programs, local reading groups, or the Internet. What type of question was used in this survey? A. multiple choice B. Dichotomous C. Scaled response D. Open-ended E. Sampling frame Answer: A Rationale: Multiple Choice questions are a type of closed-ended question in which a selection is to be made from a limited list of responses. 69. Which of the following is the BEST example of an effective question on a mail survey? A. Do you believe the synergy of the indigenous population has created a precursor to ecological disaster? B. Why do you think dogs make good pets and cats make poor pets? C. Have you ever put food out for wild birds? D. What is the economy of scale achieved by the transference of heat through solar cells? E. Will you be buying a new car soon and will it be a foreign car? Answer: C Rationale: The correct alternative is the only question that is not ambiguous, does not use difficult terminology, and asks only one question. 70. When marketing researchers for a local fitness club wanted to know consumers’ intentions to start a fitness program for a New Year’s resolution, they used a(n) _____ with five possible answers ranging from “Most Likely” to “Least Likely” and asked that the respondent choose one. A. open-ended question B. action-based question C. sampling frame question D. scaled-response question E. dichotomous response Answer: D Rationale: A scaled-response question is a closed-ended question designed to measure the intensity of a respondent’s answer. 71. _____ research depends on watching what people do. A. Anonymous viewership B. Observation C. Interactive D. Personal scanner E. Survey Answer: B Rationale: Observation research is a method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity. 72. When people are hired to record traffic patterns in a shopping mall, they are engaging in _____ research. A. focus group B. observation C. experimental D. survey sampling E. sample framing Answer: B Rationale: Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them. 73. Dryel is a Procter & Gamble product that allows consumers to dry-clean their clothes in a dryer. Before launching the product, P&G researchers visited consumers’ homes and watched as people sorted laundry, creating piles of darks, whites, delicates, and items that would go to the dry cleaner because the people were unsure how to clean them. This was an example of _____ research. A. observation B. mall intercept C. visualization D. action-based E. experiment Answer: A Rationale: Observation research is a method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity. 74. Stan’s job is to walk the streets of Japan and locate fads. According to Stan, “Japan is advanced. What will happen 10 years from now is already happening in Japan.” What kind of research is Stan conducting? A. Experiment B. Dichotomous C. Observation D. Survey E. Open-ended Answer: C Rationale: Observation research depends on watching what people do. 75. A retailer of sporting goods equipment is interested in learning peoples’ attitudes, motivations, and feelings about its product lines. All of the following are potential sources for this information EXCEPT: A. observation studies. B. mail questionnaires. C. in-store interviews. D. telephone surveys. E. focus group interviews. Answer: A Rationale: Observation research focuses on what people do, not on their attitudes and feelings. 76. Mystery shoppers engage in a form of: A. mall intercept study. B. experiential study. C. marketing audit. D. observation research. E. market audit. Answer: D Rationale: This form of observation research is an example of people watching people or an activity. 77. First Southern Community Bank has long tried to differentiate itself as “your friendly, hometown bank.” However, the bank president has been concerned about a number of recent customer service complaints. Which of the following approaches would probably be best to get a feel for how friendly her employees really are to customers? A. Employee focus group interview B. Mail questionnaire of a sample of current customers C. Mystery shopper D. Experiential research E. An Internet-based community study Answer: C Rationale: Mystery shoppers are researchers posing as customers who gather observational data about a store. 78. _____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting. A. Ethnographic B. Action-based C. Experiment D. Survey E. Visualization Answer: A Rationale: This is the definition of ethnographic research. 79. Kimberly-Clark has outfitted consumers with mini video cameras mounted to visors to watch consumers doing chores and shopping. Using this research approach, known as _____ research, Kimberly-Clark learned that mothers had trouble using Huggies Baby Wash to bathe their infants. The problem was that the women liked to keep one hand on their infant at all times while the Baby Wash bottle required two hands to open and dispense. A. ethnographic B. dichotomous C. experiment D. survey E. open-ended Answer: A Rationale: Ethnography, which is a form of observation research, is the study of human behavior in its natural context. 80. A(n) _____ is characterized by the researcher altering one or more variables—such as price or package design––while observing the effects of those alterations on another variable (usually sales). A. observation research project B. research problem C. experiment D. sampling frame E. correlation of facts study Answer: C Rationale: An experiment is a method a researcher can use to gather primary data and entails the researchers altering one or more variables while observing the effects of those alterations on another variable. 81. Caterpillar has been experimenting with replacing the traditional steering mechanism on its graders with a joystick-based steering mechanism. As a part of its research, it built graders that included both a steering wheel and joystick steering mechanisms, then asked operators to use the machines for a few days. After two days of testing, several of the operators liked the joysticks so much that they suggested the steering wheel be removed to provide better visibility. This would be an example of using an experiment to gather _____ data. A. primary B. secondary C. dichotomous D. ethnographic E. collaborative Answer: A Rationale: The use of experiments is a technique for gathering primary data. 82. The best experiments are those in which: A. all variables are allowed to act freely. B. all variables are held constant except the ones being manipulated. C. all factors provide the desired results. D. the subjects are unpaid volunteers. E. two variables are held constant while all of the others are manipulated. Answer: B Rationale: An experiment is characterized by the researcher changing one or more variables while observing the effects of those changes on another variable. The best ones hold all factors constant except those factors being manipulated. 83. The population from which a sample in a marketing research study will be drawn is referred to as the: A. universe B. market C. test market D. focus group E. control group Answer: A Rationale: A universe is the population from which a sample, or the subset of a larger population, will be drawn. 84. In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected? A. Must the sample be representative of the population? B. Who can perform the actual sampling? C. What is the population or universe of interest? D. How often should the sample be redesigned? E. How large should the sample be in terms of its measurement costs? Answer: C Rationale: Before a sampling plan is chosen, the population of interest must be defined. 85. A(n) _____ sample is characterized by every element in the population having a known statistical likelihood of being selected. A. irregular B. probability C. nonprobability D. convenience E. piggyback Answer: B Rationale: This is the definition of a probability sample. 86. In a(n) _____ sample, additional respondents are selected on the basis of referrals from the initial respondents. A. quota B. judgment C. piggyback D. probability E. snowball Answer: D Rationale: A probability sample is characterized by every element in the population having a known statistical likelihood of being selected, allowing an estimate of the accuracy of the sample. See Exhibit 9.6. 87. While discussing an upcoming marketing research study of how the home decorating industry is affected by the teenage consumer, you emphasize the necessity of having a sample that is representative of the population. What type of sample must be used? A. A nonprobability sample B. A quota sample C. A convenience sample D. A probability sample E. A field service sample Answer: D Rationale: A probability sample is characterized by every element in the population having a known statistical likelihood of being selected, allowing an estimate of the accuracy of the sample. 88. A university hospital is interested in getting a cross section of patients’ opinions on proposed changes that will make the hospital stay more like a motel stay in terms of amenities. The cost of the new amenities will be reflected in higher rates. The university hospital used a random number table to select participants from the list of patients who are currently in the hospital. This is an example of a _____ sample. A. representational B. convenience C. nonprobability D. synergistic E. random Answer: E Rationale: When using a random sample, every member of the population has a known and equal chance of selection. 89. A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of the population. A. frame B. random C. probability D. nonprobability E. representational Answer: D Rationale: This is the definition of a nonprobability sample. 90. Nonprobability samples: A. require more expensive marketing research than probability sampling B. include any sample in which little is done to obtain a representative cross section of the population C. by definition must be representative of the population D. often start out with random numbers to ensure selection of subjects is truly random E. offer an easy method for determining sampling error Answer: B Rationale: A nonprobability sample is any sample in which there is little or no attempt to obtain a representative cross section of the population. 91. Dr. Neuman is a marketing professor who uses her students in research studies because they are convenient and readily accessible. She is using a _____ sample. A. single-source B. random C. probability D. representational E. convenience Answer: E Rationale: A convenience sample uses respondents who are readily accessible. 92. Which type of error occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process? A. Sampling error B. Research error C. Nonresponse error D. Measurement error E. Random error Answer: D Rationale: This is the definition of measurement error. 93. Many people surveyed say they are environmentally conscious and favor green products even if they are more expensive than traditional products. Some marketers are worried that many people may not actually purchase green products. This concern is about the potential for what kind of sampling error? A. Nonresponse B. Frame C. Random D. Measurement E. None of the choices apply Answer: D Rationale: Measurement error occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process. 94. Which of the following is a type of probability sample? A. Judgment sample B. Convenience sample C. Random sample D. Quota sample E. Snowball sample Answer: C Rationale: A random sample is a type of probability sample in which every member of the population has a known and equal chance of selection. The other types of samples are nonprobability samples. See Exhibit 9.4. 95. Five hundred women were surveyed as to their feelings about female physicians. The majority responded that they felt more relaxed with a female physician. The survey was an example of a(n) _____ sample because it used local hospital patients as survey participants. A. random B. representational C. probability D. convenience E. framing Answer: D Rationale: Convenience samples use respondents who are convenient or readily accessible. 96. _____ occurs when a sample somehow does not represent the target population. A. Sampling error B. Measurement error C. Cross-tabulation D. Diagnostic error E. Single-source research Answer: A Rationale: This is the definition of sampling error. 97. One type of sampling error is _____, which is created when the sample actually interviewed differs from the sample drawn. A. random error B. diagnostic error C. nonresponse error D. nonprobability error E. measurement error Answer: C Rationale: This error happens because the original people selected to be interviewed either refused to cooperate or were inaccessible. 98. A _____ error arises if the sample drawn from a population differs from the target population. A. field B. frame C. measurement D. random E. nonresponse Answer: B Rationale: This could happen if a telephone directory is used as the list from which the respondents are selected, as not all of the target population studied may have a phone, and many phone numbers are unlisted. 99. A researcher wants to determine what percentage of the population in the southeastern United States would use a mass transit system if it were well maintained. He gets telephone books from every city with over 200,000 people in those states and selects the fifteenth name in the middle column on every hundredth page as his sample. He has made a _____ error. A. targeting B. random C. nonprobability D. frame E. reliability Answer: D Rationale: He has made a frame error because not everyone has a listed telephone number. 100. All of the following are types of probability samples EXCEPT: A. systematic samples B. quota samples C. cluster samples D. stratified samples E. random samples Answer: B Rationale: Quota samples are a nonprobability sample. See Exhibit 9.4. 101. All of the following are types of nonprobabilty samples EXCEPT: A. systematic samples B. quota samples C. snowball samples D. convenience samples E. judgment samples Answer: A Rationale: A systematic sample is a type of probability sample. See Exhibit 9.4. 102. A _____ error occurs because the selected sample is an imperfect representation of the overall population. A. frame B. field C. measurement D. random E. representational Answer: D Rationale: This is the definition of a random error. 103. In a survey for her marketing class, Alicia interviewed 80 randomly selected men and asked them their opinions of women with tans. Her initial results showed that the men overwhelmingly believed tans were a health risk. When she conducted the same survey again using the same methodology, she discovered that 50 percent of the surveyed population in the second group found women with tans sexy. This is most likely an example of a _____ error. A. representational B. random C. nonprobability D. frame E. reliability Answer: B Rationale: A random error occurs when the results of two surveys conducted in the same manner differ. 104. A _____ specializes in interviewing respondents on a subcontracted basis. It may also provide focus group facilities, mall intercept locations, test product storage, and kitchen facilities to prepare test food products. A. research diagnostic firm B. single-source researcher C. marketing research aggregator D. decision support company E. field service firm Answer: E Rationale: This is the definition of a field service firm. 105. When the Boston Symphony Orchestra wanted to determine how to make classical music appeal to younger concertgoers, it hired AMN to conduct a survey. AMN is most likely an example of a: A. decision support company B. data-mining company C. field service firm D. knowledge portal E. marketing research diagnostics firm Answer: C Rationale: Field service firms specialize in interviewing respondents on a subcontracted basis. 106. Several types of analysis are common to marketing research. Which one is the simplest? A. One-way frequency counts B. Statistical analyses C. Cross-tabulations D. Passive people meters E. Scaled responses Answer: A Rationale: The use of one-way frequency counts provides the simplest technique for organizing and analyzing data. 107. Kent has gathered data concerning people’s preferences for traditional breakfast foods. He has learned that 30 percent of the population prefer eggs in the morning, 50 percent of the population prefer something sweet for breakfast like a doughnut, and an overwhelming 86 percent prefer food that they can eat while they drive to work. What method of analyzing the data has Kent used? A. Cross-tabulation B. Standard deviation C. One-way frequency count D. Single correlation E. Linear regression Answer: C Rationale: One-way frequency tables are used to record the responses to a question. 108. _____ lets the analyst look at the responses to one question in relation to the responses to one or more other questions. A. One-way regression analysis B. Two-way regression analysis C. The one-way frequency count D. Cross-tabulation E. Content analysis Answer: D Rationale: This is the definition of a cross-tabulation. 109. If a researcher wanted to look at responses to vacation home ownership questions as they relate to age and occupation of the respondent, the analysis approach he or she would use is: A. one-way frequency tables. B. standard deviation measures. C. cross-tabulations. D. passive people meters. E. scaled responses. Answer: C Rationale: Cross-tabulations allow the analyst to look at the responses to one question in relation to the responses to one or more other questions. 110. What is the last step of the marketing research process? A. Specify sampling procedures. B. Bill the client. C. Analyze data. D. Follow up. E. Prepare and present the report. Answer: D Rationale: The final step is to follow up to determine why management did or did not carry out the recommendations in the report. 111. All of the following are advantages associated with the use of Internet surveys EXCEPT: A. decreased costs B. ability to contact hard-to-reach respondents C. reduced measurement error D. ability to get survey results much more rapidly E. ability to personalize the survey Answer: C Rationale: Measurement error is not an advantage associated with the use of Internet surveys. 112. What is the moderator’s role in online focus groups? A. To limit the discussion to closed-ended questions B. To provide freestyle screen dialogue including text, instructions, and probes C. To make sure costs remain relatively low D. To act as a data-mining engineer E. To let respondents control the discussion Answer: B Rationale: One of the most difficult jobs of the moderator is to control the discussion. 113. All of the following are advantages associated with online focus groups EXCEPT: A. good participation rates B. cost-effectiveness C. narrow geographic scope D. accessibility E. honesty of respondents Answer: C Rationale: Online focus groups offer a broad geographic scope. 114. A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n): A. Web community B. focus blog C. online focus group D. Webinar E. Web-based ethnographic group Answer: A Rationale: This describes a Web community. 115. A(n) _____ gathers its information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy. This creates a huge database of marketing efforts and resultant consumer behavior. A. one-way mirror observation study B. television meter investigation C. laser scanner experiment D. CLT interview E. scanner-based research system Answer: E Rationale: This is the definition of scanner-based research. 116. With which scanner-based research system do IRI panel members shop with an ID card, which is presented at checkout in scanner-equipped grocery and drugstores, thus allowing IRI to electronically track each household’s purchasing over time? A. InfoScan B. VideOCart C. BehaviorScan D. Nielsen Data E. Scanner Plus Answer: C Rationale: BehaviorScan monitors the purchases of 3,000 long-term participants who have been recruited to use the ID card in scanner-equipped grocery and drugstores. 117. _____ is a scanner-based sales-tracking service for the consumer packaged-goods industry. It tracks retail sales, consumer purchasing information, and promotional activity for all bar-coded products. A. BehaviorScan B. Nielsen Data C. Scanner Plus D. InfoScan E. VideOCart Answer: D Rationale: Through the use of InfoScan, which is IRI’s most successful product, data are collected weekly from more than 70,000 supermarkets, drugstores, and mass merchandisers. 118. Marketing research should NOT be undertaken when: A. the perceived costs are greater than the projected benefits. B. there are no secondary data in existence to guide the project definition. C. it will take a long time to complete. D. the actual costs are less than the forecasted benefits. E. the perceived costs are the same as the forecasted benefits. Answer: A Rationale: Research should be undertaken only when the expected value of the information is greater than the cost of obtaining it. 119. Customer relationship management is accomplished by all of the following EXCEPT: A. offering the lowest prices of all major competitors. B. organizing the company around customer segments. C. establishing and tracking customer interactions with the company. D. fostering customer-satisfying behaviors. E. linking all processes of the company from its customers through its suppliers. Answer: A Rationale: CRM is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer segments, but it does not mean that offering the lowest prices is necessary. 120. Once customer data are analyzed and transformed into usable information, the information must be: A. implemented. B. evaluated. C. leveraged. D. stored. E. mined. Answer: C Rationale: Essentially, the company is trying to enhance customer relationships by getting the right information to the right person in the right place at the right time. See Exhibit 9.6. 121. When Burpee Gardening company collects relevant information from customers, such as date of last communication with the customer and how often the customer contacts the company, this is an example of: A. establishing marketing objectives. B. capturing relevant customer data on interactions. C. identifying customer relationships with the organization. D. understanding the interactions the company has with current customers. E. deciding on a segmentation strategy. Answer: B Rationale: This is an example of a company that uses a CRM approach to capture relevant customer data on interactions. 122. An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called: A. competitive research. B. competitive intelligence. C. industrial espionage. D. an audit. E. differential competitive advantage. Answer: B Rationale: This is the definition of competitive intelligence. 123. Which of the following is a source of competitive intelligence? A. A company’s salespeople B. Government agencies C. the Yellow Pages D. Periodicals E. All of these are sources Answer: E Rationale: All of these are sources of competitive intelligence. Sav-More Supermarkets Observers of the supermarket industry see no letup in the use of checkout-counter–based target marketing. Sav-More supermarkets have installed an electronic marketing system in their stores. The system allows the stores to do more direct mail promotions by combining the current Sav-More’s check cashing cards with the new Sav-More’s Bonus Club frequent shopper cards. The new system uses bar-code scanners and magnetic cards issued to shoppers to track all purchases. As with most customer databases, demographic information is gathered for subsequent offers to frequent shopper club members, and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases. Generally, marketing to these consumers achieves better results than freestanding insert (FSI) coupons. 124. Refer to Sav-More Supermarkets. The Sav-More management is continually provided with information to make better marketing decisions. These data are easily accessed and manipulated. This type of system is called a: A. marketing decision support system B. competitive intelligence system C. single-source system D. marketing information system E. marketing research system Answer: A Rationale: A marketing decision support system is an interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions. 125. Refer to Sav-More Supermarkets. The creation of a large computerized file of customers’ demographic and psychographic characteristics through the new Sav-More system is called: A. survey research B. situation analysis C. database marketing D. observation research E. secondary data Answer: C Rationale: Database marketing is the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns. 126. Refer to Sav-More Supermarkets. Al Edisto, Sav-More’s frozen food manager, decided that the best way to determine what is causing the drop in orange juice sales was to conduct a survey among shoppers in the store’s frozen food section. Edisto collected _____ data. A. single-source B. secondary C. representational D. primary E. dichotomous Answer: D Rationale: Information collected for the first time for the purpose of solving a particular problem under investigation is called primary data. 127. Refer to Sav-More Supermarkets. Al Edisto, Sav-More’s frozen food manager, decided to survey each customer who stops in front of the frozen orange juice section on Saturday. Edisto used a _____ sample for his research project. A. random B. piggyback C. probability D. stratified E. convenience Answer: E Rationale: The convenience sample is based on using respondents who are convenient or readily accessible to the researcher. University Research Study A regional state university is experiencing declining enrollments. The administration is concerned with this situation and has asked a marketing research class to conduct a research study and make recommendations. One thing the administration is interested in learning is the feasibility of offering all of their degrees online as well as through the traditional on-campus degree program. They do not know what the market potential would be for online degrees and potential students’ attitudes and intentions toward getting an online degree from this university. 128. Refer to University Research Study. Which role of marketing research is represented if the student researchers address “what if” questions, such as examining the outcomes if all the degree programs were available online? A. Predictive B. Proscriptive C. Descriptive D. Diagnostic E. Normative Answer: A Rationale: Marketing research’s predictive function is to address “what if” questions. 129. Refer to University Research Study. If the students analyze census data to determine demographic trends in the primary market area for the university, they are using _____ data. A. primary B. secondary C. proprietary D. single-source E. representational Answer: B Rationale: Secondary data are data previously collected for any purpose other than the one at hand. 130. Refer to University Research Study. In addition to understanding potential students’ attitudes and intentions regarding online degree programs, the administration has also asked the students to gather data on another project regarding the public’s attitude toward the university. Gathering data on two different projects using one questionnaire is called a(n) _____ study. A. piggyback B. dichotomous C. dual-purpose D. compound E. synergistic Answer: A Rationale: This is describing a piggyback study. 131. Refer to University Research Study. When the students presented the results of their study to the university administration, they discussed the differences in responses between male and female respondents. Which data analysis technique allowed them to get these results? A. One-way frequency counts B. Frame analysis C. Cross-tabulation D. Probability analysis E. Correlation analysis Answer: C Rationale: A cross-tabulation lets the analyst look at the responses to one question in relation to the responses to one or more other questions. 132. Refer to University Research Study. Because the students must finish the research project within a semester and do not have much money to conduct the research, which of the following would be the best quickest and least expensive method of collecting survey data? A. In-home personal interviews B. Mail surveys C. Internet surveys D. Marketing research aggregators E. Mall intercept interviews Answer: C Rationale: Two main advantages of Internet surveys are rapid development, real-time reporting and dramatically reduced costs, so this would be the best option for the students. Callaway Golf Co. Callaway Golf Co. has long been a leader in women’s golf equipment, but it wanted to expand its lead in this growing sector of the market. While Callaway’s technical people knew what could be done with design, they did not know exactly what women wanted in their clubs. Callaway management decided what it needed to do was to bring the technicians and women golfers together. Beginning about three years ago, Callaway sent a team of researchers, designers, and golf pros out to visit with 40 women golfers of various abilities in locations from California to Florida. In selecting the golfers to study, Callaway decided to focus on women who were just beginning to play, as well as, experienced, competitive golfers who wanted to own the latest equipment. Callaway management felt that these two extreme groups of golfers had been overlooked by golf club manufacturers. Further, Callaway felt that if enough could be learned about these two groups, then the company would also learn enough to serve the rest of the women golfer market. Basically, the research team observed the women playing golf and listened to their comments and concerns. The information gathered by this research team was built into every aspect of the design of a new golf club, including the feel of the club, the length of the club shaft and size of the club head, and the weight of the club. When prototypes of the new clubs were completed, they were sent to the women golfers to get their feedback. That feedback was then used to refine the club design. This process went on until the women said the new clubs greatly enhanced their game. The entire process from original prototype to final product took a little less than one year. 133. Refer to Callaway Golf Co. The type of research gathered by the Callaway Golf research team would be called: A. secondary B. developmental C. descriptive D. subjective E. focus group Answer: C Rationale: Marketing research that is descriptive involves the gathering and presenting of factual statements. 134. Refer to Callaway Golf Co. When Callaway researchers asked questions like “What bothers you the most about your irons?” what type of questions were they asking? A. Scaled response B. Close-ended C. Dichotomous D. Open-ended E. Multiple answer Answer: D Rationale: With open-ended questions, the interviewer encourages the respondent to answer in his or her own words. 135. Refer to Callaway Golf Co. When Callaway researchers asked questions like “Now that you have played with the new club, how likely would you say you would be to buy it?” they asked golfers to respond on the following scale: 1 = would definitely not buy it 2 = would probably not buy it 3 = might or might not buy it 4 = would probably buy it 5 = would definitely buy it. What type of question is this? A. Scaled response B. Limited response C. Dichotomous D. Open-ended E. Multiple answer Answer: A Rationale: With a scaled-response question, respondents are asked to respond by selecting the appropriate response. This is a form of close-ended question designed to measure the intensity of a respondent’s answer. 136. Refer to Callaway Golf Co. Callaway used its contacts at golf courses around the country to find the 40 women for its study. The 40 women would most likely be called a _____ sample. A. systematic B. convenience C. cluster D. stratified E. random Answer: B Rationale: A convenience sample is one in which researchers select an easy-to-reach population. ESSAY 1. Define a marketing decision support system (DSS). Name and briefly describe the four characteristics of a true DSS. Answer: A marketing decision support system (DSS) is an interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions. A true DSS include is: INTERACTIVE. Managers give instructions and see immediate results. The manager does not rely on a computer programmer or have to wait for a scheduled report. FLEXIBLE. The system can sort, regroup, total, average, and manipulate the data in many ways according to the varied needs of each user. DISCOVERY ORIENTED. The system helps managers probe for trends, isolate problems, and ask “what if” questions. ACCESSIBLE. The system is easy to learn and should be immediately usable by computer novices. 2. What is marketing research? Name and briefly describe the three functional roles of marketing research. Answer: Marketing research is the process of planning, collecting, and analyzing data relevant to marketing decision making and then communicating results of this analysis to management. Marketing research provides decision makers with data on the effectiveness of current marketing strategies. Marketing research is a main data source for the marketing decision support system. The three functional roles of marketing research are descriptive, diagnostic, and predictive. The descriptive role of marketing research includes gathering and presenting factual statements. The diagnostic role of research explains the data. The predictive role addresses “what if” questions such as how the researcher can use the descriptive and diagnostic research to predict the results of a planned marketing decision. 3. List in order the seven steps of the marketing research process. Answer: 1. Identify and formulate the problem/opportunity. 2. Plan the research design and gather primary data. 3. Specify the sampling procedures. 4. Collect the data. 5. Analyze the data. 6. Prepare and present the report. 7. Follow up. 4. What is the marketing research problem? What is the marketing research objective? Answer: The marketing research problem is information oriented. It involves determining what information is needed and how that information can be obtained efficiently and effectively. The marketing research objective is to provide insightful decision-making information. This requires specific pieces of informaiotn needed to answer the marketing research problem. 5. Name two advantages and two disadvantages of using primary data. Also name two advantages and two disadvantages of using secondary data. Answer: There are several advantages and disadvantages, and students can discuss any two for each: ADVANTAGES OF PRIMARY DATA: (1) they will answer a specific research question that cannot be answered by secondary data, (2) the data are current, (3) the source is known to the researcher, (4) the methodology is specified and controlled by the researcher, and (5) the information is proprietary. DISADVANTAGES OF PRIMARY DATA: (1) expense, (2) time consumption, and (3) possible lowered quality of data collection to save money. ADVANTAGES OF SECONDARY DATA: (1) saving time, (2) saving money, (3) assisting in problem statement formulation, (3) providing suggestions for research methods and other types of data needed for solving the problem, (4) pinpointing people and locations to approach, and (5) serving as a basis of comparison for other data. DISADVANTAGES OF SECONDARY DATA: (1) mismatch between the researcher’s unique problem and the purpose for which the secondary data were originally gathered, (2) inability to answer specific questions relevant to the problem at hand, and (3) possible poor quality of the data. 6. Compare and contrast primary and secondary data and discuss how each is collected. Answer: Secondary data are data previously collected for any purpose other than the one at hand. In contrast, primary data are information that is collected for the first time for the purpose of solving a particular problem. Secondary data can originate within the company or come from innumerable outside sources, such as government departments, trade groups, periodicals, and so on. The most popular technique for gathering primary data is through survey research in which a researcher interacts with consumers to elicit information. Another method is by observation, in which consumer behaviors are observed but no interaction takes place. Finally, experiments can be used by a researcher to collect primary data. 7. What is a marketing research aggregator? Discuss the role of aggregator firms in marketing research. Answer: A marketing research aggregator acquires, catalogs, reformats, segments, and resells reports already published by large and small marketing research firms. The role of aggregator firms is growing because their databases of research reports are getting bigger and more comprehensive—and more useful—as marketing research firms get more comfortable using resellers as a sales market. Meanwhile, advances in Web technology are making the databases easier to search and deliveries speedier. Aggregators are also indirectly tapping new markets for traditional research firms by slicing and repackaging research reports into narrower, more specialized sections for resale to small- and medium-sized clients that often cannot afford to commission their own studies. 8. Describe survey research and explain how it differs from observation research. Name six popular forms of survey research. Answer: Survey research is the most popular technique for gathering primary data. A survey involves the researcher interacting with people to obtain facts, opinions, and attitudes. Observation research does not rely on direct interaction with people. Popular forms of survey research include (1) in-home personal interviews, (2) mall intercept interviews (both computer-assisted personal interviewing and computer-assisted self-interviewing), (3) telephone interviews, (4) mail surveys, (5) executive interviews, and (6) focus groups. 9. What are three advantages and three disadvantages inherent in the use of a mail survey? Distinguish between a mail survey and a mail panel. Answer: Benefits of using a mail survey include relatively low cost, elimination of interviewers and field supervisors, centralized control, and actual or promised anonymity for respondents. Disadvantages of a mail survey include low response rates, unrepresentative samples, and the inability of respondents to clarify or elaborate on their answers. Mail panels are an alternative to the one-shot mail survey. The mail panel consists of a recruited sample of households that participate by mail. The mail panel is used several times. Panel members often are rewarded for their participation, and response rates are quite high. 10. Identify the four types of observation research and give an example of how each is used in marketing research. Answer: The four types of observation research are: PEOPLE WATCHING PHENOMENA. Examples include mystery shoppers and one-way mirror observations. PEOPLE WATCHING AN ACTIVITY. Observer stands at an intersection and counts traffic moving in various directions. MACHINES WATCHING PEOPLE. Movie or videotape camera records behaviors as in the people-watching-people example. MACHINES WATCHING PHENOMENA. An example is the use of traffic-counting machines to monitor traffic flow. See also Exhibit 9.3. 11. Explain how researchers conduct an experiment and discuss the characteristic of a good experiment. Answer: An experiment is a method for gathering primary data. It is characterized by the researcher changing one or more variables (such as price, package design, or advertising theme) while observing the effect of those changes on another variable (usually sales).The best experiments are those in which all factors are held constant except the ones being manipulated. This allows the researcher to observe the changes in the variable of interest. 12. Compare and contrast probability samples and nonprobability samples. List the types of samples for each. Answer: PROBABILITY SAMPLES. If the sample must be representative of the population, probability sampling is used. In this case, every element in the population has a known statistical likelihood of being selected. The types of probability samples are random sample, stratified sample, cluster sample, and systematic sample. NONPROBABILITY SAMPLES. Any sample in which there is little or no attempt to ensure a representative cross section is a nonprobability sample. The probability of selection of each sampling unit is not known. The types of nonprobability samples are convenience sample, judgment sample, quota sample, and snowball sample. 13. Any time a sample is used in marketing research, there will be two major types of errors, measurement error and sampling error. Briefly describe these two sources of error. Then name and define one other possible source of error. Answer: MEASUREMENT ERROR occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process. This error tends to be larger than sampling error. SAMPLING ERROR occurs when a sample is not representative of the target population. There are several other types of error related to sampling error: nonresponse error, frame error, and random error. NONRESPONSE ERROR is created when the sample actually interviewed differs from the sample drawn because people refuse to cooperate or are inaccessible. FRAME ERROR arises if the sample is drawn from a population (or frame) that differs from the target population. RANDOM ERROR occurs when the selected sample is an imperfect representation of the overall population. 14. Discuss the advantages of Internet surveys. Answer: RAPID DEVELOPMENT, REAL-TIME REPORTING. Internet surveys can be broadcast to thousands of potential respondents simultaneously. DRAMATICALLY REDUCED COSTS. The Internet can cut costs by 25 to 40 percent and provide results in half the time it takes to do traditional telephone surveys. PERSONALIZED QUESTIONS AND DATA. Internet surveys can be highly personalized for greater relevance to each respondent’s own situation, thus speeding the response process. IMPROVED RESPONDENT PARTICIPATION. Internet surveys take half as much time to complete as phone interviews, can be accomplished at the respondent’s convenience, and are much more stimulating and engaging. CONTACT WITH THE HARD-TO-REACH. Certain groups––doctors, high-income professionals, top management––are among the most surveyed and the most difficult to reach. 15. What is scanner-based research? What two companies currently provide most of the scanner data? Answer: Scanner-based research is a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy. The variables measured are advertising campaigns, coupons, displays, and product prices. This creates a huge database of marketing efforts and resultant consumer behavior. The two major scanner-based data suppliers are Symphony IRI Group and the Nielsen Company. Symphony IRI offers BehaviorScan, which is based on data from panel members who shop with an ID card. IRI’s most successful product is InfoScan, a scanner-based sales-tracking service for the consumer packaged-goods industry. 16. Explain the importance of interactions in a customer relationship management (CRM) system. Most colleges and universities have some form of CRM system. Describe an interaction that occurs at your institution. Answer: An interaction occurs when a customer and a company representative exchange information and develop learning relationships. There are several examples––probably, the best occurs when the student goes through the admission process. The applying student provides information for the registrar’s office, and the registrar’s office provides information to the student about classes, living arrangements, food plans, and so on. 17. When a manager is faced with alternative solutions to a problem, he or she should NOT immediately call for marketing research. The first decision to make is whether to conduct marketing research at all. Name and briefly discuss two situations in which it is best NOT to conduct marketing research. Answer: WHEN DECISION-MAKING INFORMATION ALREADY EXISTS. Some companies have been conducting research in certain markets for many years. These firms have developed a thorough understanding of target markets. Under these circumstances, further research may be repetitive and a waste of money. WHEN THE COSTS OF CONDUCTING RESEARCH EXCEED THE BENEFITS. Willingness to acquire additional decision-making information depends on a manager’s perception of the information quality, price, and timing. While marketing research relieves some uncertainty, it is also expensive, and the costs of obtaining research may not be outweighed by potential benefits. 18. What is competitive intelligence? Discuss how it is used and provide an example. Answer: Competitive intelligence is an intelligence system that helps managers assess their competition and their vendors in order to become more efficient and effective competitors. Competitive intelligence can help identify the advantage of a competitor and play a major role in determining how the advantage was achieved. Intelligence is analyzed information. It becomes decision-making intelligence when it has implications for the organization. For example, a primary competitor may have plans to introduce a product with performance standards equal to yours but with a 15 percent cost advantage. This intelligence has important decision-making and policy consequences for management. Examples will vary, but many students may be aware of the theft of Coca-Cola’s formula for a new beverage. 19. List five noncomputer sources of competitive intelligence. Answer: There are several sources, and students can list any five: Company salespeople Industry experts Competitive intelligence consultants Government agencies Uniform Commercial Code filings Suppliers Periodicals Yellow Pages Industry trade shows Test Bank for MKTG Charles W. Lamb, Jr. Hair, Joseph F., Carl McDaniel 9781285091860

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