Marketing Chapter 4

Which of the following demonstrates the real value of a company’s marketing research and information system?
A) the amount of data it generates
B) the variety of contact methods it uses
C) the tools it uses to gather information
D) the quality of customer insights it provides
E) the type of sampling plan it follows
D) the quality of customer insights it provides
The initial function of a marketing information system is ________.
A) generating insights from market consumption patterns
B) analyzing the results of marketing research studies
C) evaluating information from internal and external sources
D) assessing the information needs of a company
E) hiring research firms to conduct market research
D) assessing the information needs of a company
Which of the following is true of a good marketing information system?
A) It focuses solely on maximizing the amount of data generated irrespective of relevance.
B) It typically uses only external sources of data in marketing research.
C) It balances the information that a firm wishes to have with the information a firm actually needs.
D) It goes out of its way to offer information about future plans of action that might not be very feasible or cost-effective.
E) It eliminates the time-consuming task of assessing the information needs of a firm.
C) It balances the information that a firm wishes to have with the information a firm actually needs.
Diane Chambers, the marketing manager of FarmFresh, collects data from her monthly records of sales, costs, and cash flow. In this case, Diane is making use of ________ databases.
A) external
B) secondary
C) historical
D) internal
E) dialog
D) internal
Which of the following sources constitutes the internal database of a company?
A) commercial online databases
B) conversations on social media
C) the company’s sales records
D) reports sold by market research firms
E) the Web
C) the company’s sales records
Which of the following is most likely the cheapest and quickest means to collect data for marketing research?
A) utilizing external agencies for research
B) seeking marketing intelligence inputs from partnering firms
C) seeking data regarding strategies adopted by competitors
D) utilizing internal databases to gather sales data
E) hiring a reputed firm to conduct a market analysis
D) utilizing internal databases to gather sales data
Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond’s purpose?
A) sales data from exclusive Hammond retailers
B) archival data on company performance
C) competitive marketing intelligence
D) research on demographics of its existing customers
E) internal survey on employee performance
C) competitive marketing intelligence
Which of the following statements regarding marketing intelligence is true?
A) Marketing intelligence typically involves sensitive and confidential information kept out of the public domain.
B) The advantage of using competitive intelligence is negligible as it is based only on internal sources of data.
C) All marketing intelligence inputs are available at no cost to all potential users.
D) Marketing intelligence is the systematic collection and analysis of publicly available information.
E) Marketing intelligence efforts are more focused on gaining insights into a firm’s consumers rather than its competitors.
D) Marketing intelligence is the systematic collection and analysis of publicly available information.
Haley Computers Inc. has appointed a few employees to sift through customer conversations on online forums and social networking sites regarding products purchased from Haley. These employees are likely to be working as ________.
A) information technology officers
B) online Web designers
C) quality control specialists
D) corporate bloggers
E) listening officers
E) listening officers
Which of the following is true of competitive marketing intelligence?
A) It can predict a firm’s future but not the pattern of forces in the market.
B) It cannot be collected from internal sources of a firm such as employees and sales force.
C) It requires inside information from a competitors’ internal database.
D) It can be obtained from information that is available in the public domain.
E) It can be obtained from online databases only through subscription and a fee.
D) It can be obtained from information that is available in the public domain.
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
A) Test marketing
B) Marketing research
C) Commercialization
D) Integrated marketing
E) Exclusive distribution
B) Marketing research
What is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and research objectives
C) developing a research plan for collecting information
D) implementing the research plan
E) interpreting data and providing a report
B) defining the problem and research objectives
The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first?
A) develop a research plan
B) determine a research approach
C) define the problem and objectives
D) select a research agency to collect data
E) conduct exploratory and descriptive research
C) define the problem and objectives
What is the last step in the marketing research process?
A) developing a research plan
B) determining a research approach
C) interpreting the findings
D) gathering internal data
E) using behavioral targeting
C) interpreting the findings
The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.
A) descriptive
B) exploratory
C) causal
D) corrective
E) experimental
B) exploratory
Causal research is used to ________.
A) test hypotheses about cause-and-effect relationships
B) gather preliminary data to define problems and their underlying causes
C) collect information on the demographics of customers
D) collect information on the attitudes of consumers
E) generate hypotheses about the causes of a marketing problem
A) test hypotheses about cause-and-effect relationships
Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.
A) exploratory
B) descriptive
C) causal
D) focus group
E) ethnographic
C) causal
Coolers Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Coolers should most likely use ________.
A) exploratory research
B) archival research
C) causal research
D) experimental research
E) descriptive research
E) descriptive research
In most marketing research projects, what type of research is conducted first?
A) causal
B) descriptive
C) remedial
D) corrective
E) exploratory
E) exploratory
Brooke’s Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case?
A) exploratory followed by causal
B) exploratory followed by descriptive
C) descriptive followed by exploratory
D) descriptive followed by causal
E) causal followed by descriptive
D) descriptive followed by causal
Which of the following is the second step of the marketing research process?
A) reporting the research findings
B) developing the research plan
C) implementing the research plan
D) defining the research problem
E) defining the research objectives
B) developing the research plan
________ data consist of information collected for the specific purpose at hand.
A) Primary
B) Secondary
C) Derived
D) Archival
E) Historical
A) Primary
Which of the following is an advantage of primary data?
A) They are less expensive to obtain than secondary data.
B) They can be obtained quicker than secondary data.
C) They can be accessed from existing information.
D) They are more relevant than secondary data.
E) They are more reflective of past problems.
D) They are more relevant than secondary data.
Information collected from online databases on the Internet is an example of ________ data.
A) primary
B) secondary
C) first-hand
D) experimental
E) ethnographic
B) secondary
Which of the following methods should a marketing researcher use to obtain information that people are unwilling or unable to provide?
A) observational research
B) focus groups
C) personal interviews
D) Internet-based surveys
E) questionnaires
A) observational research
Which of the following is a quantitative approach to research?
A) observational research
B) online focus groups
C) ethnographic research
D) in-depth interviews
E) marketing surveys
E) marketing surveys
Ethnographic research is ________.
A) a standard analysis of publicly available information
B) conducted in settings where people live and work
C) an approach that provides only secondary data
D) most feasible when customers live in distant locations
E) used by marketers seeking quantitative data
B) conducted in settings where people live and work
A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ________ research.
A) quantitative
B) online
C) ethnographic
D) experimental
E) archival
C) ethnographic
Ethnographic research essentially involves ________.
A) experimental manipulation
B) observation and interaction
C) neuromarketing techniques
D) mechanical devices
E) online tools and surveys
B) observation and interaction
________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.
A) Observational research
B) Archival research
C) Survey research
D) Experimental research
E) Causal research
C) Survey research
Which of the following is an example of ethnographic research?
A) The marketing team at Amex Inc. conducts surveys through mail.
B) The marketing team at ProValue Corp. analyzes information from its internal database.
C) A researcher at Evans Inc. manipulates the variable of price and studies sales records.
D) A researcher at Louis Inc. visits customers’ homes to observe their daily routines.
E) The research team at Hollis Inc. uses secondary data to draw inferences about the firm’s customer service.
D) A researcher at Louis Inc. visits customers’ homes to observe their daily routines.
Which of the following is true of survey research?
A) It is the most widely used method for gathering primary data.
B) It is the most suitable method for establishing causal relationships.
C) It is the best method to use when people are unwilling to answer questions.
D) It is not suitable for collecting data for descriptive research.
E) It is inflexible and cannot be used in many different situations.
A) It is the most widely used method for gathering primary data.
A major advantage of a mail survey is that it ________.
A) provides significant flexibility
B) offers strong sample control
C) generates high response rates
D) eliminates interviewer bias
E) can be completed quickly
D) eliminates interviewer bias
Experimental research is best suited for gathering ________ information.
A) exploratory
B) causal
C) ethnographic
D) interactive
E) descriptive
B) causal
A(n) ________ is best suited for exploratory research.
A) mail survey
B) questionnaire
C) observation
D) online survey
E) focus group
C) observation
________ is best suited for descriptive research.
A) An online discussion
B) Ethnographic research
C) Netnography research
D) A survey
E) A focus group
D) A survey
A market researcher wants to find the cause-and-effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavoring, and the other has artificial flavors. This is an example of ________.
A) descriptive research
B) ethnographic research
C) experimental research
D) online research
E) exploratory research
C) experimental research
Burger Town introduced a new hamburger and released it in two different cities at two different prices. Marketers of Burger Town then analyzed the sales records of their outlets at the two cities, determined the price that resulted in better profits, and used the information to set a nationwide price for their new offering. This is an example of ________.
A) exploratory research
B) survey research
C) Netnography research
D) experimental research
E) descriptive research
D) experimental research
Kathy Jenkins is planning to conduct research on consumers’ personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of the following contact methods is most likely to serve Kathy’s purpose?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) online discussions
A) mail questionnaires
Which of the following contact methods is flexible, allows for explanation of difficult questions, and lends itself to demonstrating products?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) online questionnaires
E) e-mail interviews
C) individual interviews
Which of the following is true of focus group discussions?
A) They usually employ large samples.
B) Consumers’ facial expressions are hidden.
C) Results can be easily generalized to an entire population.
D) The quantitative data can be evaluated quickly and economically.
E) Consumers are not always honest and open about their opinions.
E) Consumers are not always honest and open about their opinions.
________ are small groups of consumers who interact directly and informally with product designers without a moderator.
A) Cross-functional groups
B) Ethnographic groups
C) Observational groups
D) Immersion groups
E) Traditional focus groups
D) Immersion groups
In which of the following research methods does the sample size have little impact on costs?
A) focus group interviews
B) personal interviews
C) mail surveys
D) Internet-based surveys
E) telephone surveys
D) Internet-based surveys
Erica Jenson has a limited budget to conduct a market research. Which of the following research approaches would provide Erica with the most cost-effective way to reach a large number of respondents in a short period?
A) telephone surveys
B) personal interviews
C) Internet-based surveys
D) mail surveys
E) focus group interviews
C) Internet-based surveys
Which of the following is a disadvantage of online focus groups?
A) It requires participants to assemble at a central location.
B) Determining the identity of people who constitute an online sample is difficult.
C) When compared to other methods, it takes a longer time to tabulate and analyze the results.
D) The cost of conducting online focus groups is greater than most other qualitative methods.
E) It is difficult to access people and events across different time zones using online focus groups.
B) Determining the identity of people who constitute an online sample is difficult.
Which of the following is a structured method of online research where marketers require direct responses from customers?
A) online behavioral targeting
B) social media tracking
C) online listening
D) online surveys
E) blog analysis
D) online surveys
Which of the following is a quantitative Internet-based research approach?
A) online survey
B) online focus group
C) online listening
D) behavioral targeting
E) social tracking
A) online survey
Harmon, a nationwide department store, uses checkout scanners to record shoppers’ purchases. Which term best describes Harmon’s checkout scanners?
A) nonprobability sampling tool
B) mechanical instrument
C) neuromarketing tool
D) touch point device
E) CRM system
B) mechanical instrument
What are the two main types of research instruments used to collect primary data?
A) observation scales and personal interviews
B) questionnaires and mechanical devices
C) focus groups and mechanical devices
D) focus groups and questionnaires
E) personal interviews and online focus groups
B) questionnaires and mechanical devices
The most common research instrument, whether administered in person, by phone, by e-mail, or online, is the ________.
A) mechanical device
B) personal interview
C) questionnaire
D) telephone interview
E) focus group
C) questionnaire
Which of the following is true of question formats in questionnaires?
A) Closed-end questions allow respondents to answer in their own words.
B) A scale question is an example of an open-end question.
C) Open-end questions allow respondents to choose among the best answer options available.
D) Closed-end questions are difficult to evaluate when compared to open-end questions.
E) Open-end questions are useful in exploratory research to find out what people think.
E) Open-end questions are useful in exploratory research to find out what people think
After a research instrument is selected, the next step in the marketing research process is ________.
A) selecting a sampling method
B) interpreting the findings
C) implementing the research plan
D) drawing conclusions from the findings
E) selecting a research approach
C) implementing the research plan
A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively?
A) online market research tools
B) integrated marketing systems
C) CRM systems
D) internal survey methods
E) quality assurance tools
C) CRM systems
Which of the following is true about customer relationship management (CRM)?
A) It eliminates the need for primary research.
B) It minimizes the need for costly data mining.
C) It relies on the use of exploratory and causal research.
D) It consists of sophisticated software and analytical tools.
E) It excludes data on existing customers to focus on potential customers.
D) It consists of sophisticated software and analytical tools.
In CRM, ________ is the technique that helps researchers sift through mounds of detailed customer information and dig out interesting findings about customers.
A) value marketing
B) data mining
C) test marketing
D) neuromarketing
E) serial processing
B) data mining
Suppliers and resellers can update their accounts, arrange purchases, and check orders against inventories through ________.
A) a company’s extranet
B) a company’s intranet
C) marketing intelligence
D) electronic mail
E) search engines
A) a company’s extranet
A firm uses a small convenience sample to gather data on customer reactions. It invites a small group of customers for lunch and asks them to share what they think about the products they have purchased from the firm. This is an example of ________.
A) informal surveys
B) experimental research
C) neuromarketing
D) direct marketing
E) data mining
A) informal surveys
Which of the following would most likely use informal research methods to obtain marketing insights?
A) multinational firms
B) pharmaceutical firms
C) brick-and-mortar companies
D) not-for-profit organizations
E) family-owned businesses
D) not-for-profit organizations
Which of the following statements is true of international marketing research?
A) International marketing research has declined over the past decade due to global economic decline.
B) Conducting personal interviews in developing countries is generally less difficult and less expensive than doing so in developed nations.
C) International researchers follow a different set of steps in marketing research than domestic researchers.
D) Language translation in international marketing research typically increases costs and raises the risk of errors.
E) International researchers benefit from useful secondary data that is available online, so primary data is typically unnecessary.
D) Language translation in international marketing research typically increases costs and raises the risk of errors.
Vincent Cosmetics decides to launch a cream with a claim that it made skin “nine times smoother.” The claim is based on a study of thirty respondents who used products of other brands as well. However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin. In these circumstances, which of the following is the most ethical approach that Vincent Cosmetics can follow?
A) It should market the product as planned with the promotional line of “nine times smoother.”
B) It should modify the results of the study to depict a strong correlation.
C) It should report the result as it is, or improve the product to match its claim.
D) It can continue to claim a high correlation and add a tag line saying “results may vary.”
E) It should feature a testimonial from a satisfied user in an advertisement to support its claim.
C) It should report the result as it is, or improve the product to match its claim.