Deck 3: The Marketing Research Process

Question 1

In marketing research, the obvious problem is the one which should first be addressed.This may save the cost of exploratory research and will sooner or later reveal the underlying problem.

Answer 1

False

Question 2

The research objective is a statement of the information that is needed.This objective should be consistent with the decision described in the research purpose.

Answer 2

True

Question 3

The research strategy and tactics are both ultimately guided by the research purpose.

Answer 3

True

Question 4

The research process consists of connected stages or steps that guide a project from its conception to the final analysis, recommendations, and ultimate action.

Question 5

Research that will not affect management decisions has no practical value.

Question 6

A good MPIS can prevent marketing research from becoming a series of isolated projects and one-shot attempts to get needed information.

Question 7

The sole involvement of the Marketing Planning and Information System in the marketing research process consists of pointing out the need for research.

Question 8

Even if the results of a project fail to answer the research question, the information still helps the decision maker.

Question 9

The information system can often be used directly to answer research questions.

Question 10

The single most important element of good research is the development of a research purpose that links the research to decision making.

Question 11

There are three elements in the research objective: the research questions which specify the information needed; hypotheses which are alternative answers to the research questions; and an outline of the research design.

Question 12

In general, more specification is added to the research question when a hypothesis the anticipated answer to the research question) is stated.

Question 13

The role of the research objective is to provide guidance to the research design.The more specific the research question, the less valuable is the guidance.

Question 14

More than one hypothesis will tend to make the research question more general.For that reason, researchers should usually limit themselves to developing only one hypothesis.

Question 15

Researchers should know the objectives and expectations of the managers making decisions, since that will result in a higher probability of research acceptance.

Question 16

Once the research process enters the design phase, there should be no change in the purpose of the research.

Question 17

The specification of research tactics is the most important part of the research process.

Question 18

The MPIS should store information in such a way that it is visible and accessible to only the highest levels of management.

Question 19

Marketing researchers should never make the trade-off between accuracy and completeness on the one hand, and time and costs on the other.

Question 20

The information system is primarily of value in the practical planning phase.

Question 21

What is the expected value to Veekay of introducing the new line of personal computers?

A)$8.4 million
B)$7.0 million
C)$9.8 million
D)$5.0 million
E)$9.4 million
Assume for the rest of the problem the answer to question 2 is $6 million

Question 22

The value of perfect information is always positive.

Question 23

Identifying loyal customers and doing targeted marketing are essential components in opportunity analysis

Question 24

If the expected value of introducing a product is positive, then the value of perfect information is zero.

Question 25

The major reason for failure of businesses in foreign environment's has been the Self-Reference Criterion adopted by researchers in defining the problem in a foreign country.

Question 26

The value of perfect information is calculated to provide the manager with an estimate of how much he should spend on research.

Question 27

The objective of foreign market opportunity analysis is to gather information on questions to help the management narrow down the possibilities for international marketing activities.

Question 28

A specific research purpose can have only a specific research question.

Question 29

What decision would Veekay make if they used a minimax regret decision rule?

A)not enough information is given
B)introduce the new line
C)stay with the current product
D)they would be indifferent
E)none of the above

Question 30

Perfect information has no value if the worst possible outcome of the decision yields a profit of zero dollars.

Question 31

Self-Reference Criterion assumes that the environmental variables that are prevalent in the researcher's home market are also applicable to the foreign country.

Question 32

If a decision will not be affected by the research results, the value of perfect information is zero.

Question 33

A hypothesis should always be stated, even if it is a simple restatement of the research question, since the creation of a hypothesis is part of the formal marketing plan.

Question 34

The value of perfect information is calculated as the sum of the probability of obtaining the k-th research result times the value of the k-th research result, where the k are the different research results.

Question 35

Hypothesis development and research boundaries help the researcher make the research question more specific Veekay Co.recently developed a new line of computers.Prior to the introduction the management felt that the product had 50% chance of being extremely successful, 30% chance of being successful and 20% chance of failing.If extremely successful the product would generate $12 million in profits over the planning period, if successful $8 million and if it failed the result would be loss of $7 million.If Veekay does not introduce this new line, they will stay with the current product and realize a profit of $5 million based on the company's projections. Questions 1 to 6 are based on the above.

Question 36

There is no difference in the level of complication between an international and domestic marketing research.

Question 37

The basic functions of marketing research does not vary between domestic and international marketing research.

Question 38

Probably the most important source of a hypothesis is a combination of a manager's past experience with similar problems and the use of judgment.

Question 39

In an effort to avoid redundant research, it is important to indicate the scope of the research.The more important the purpose of the research, the broader the scope should be.

Question 40

A concept test is employed to determine if a concept should be developed further

Question 41

Which of the following is not true about the research process?

A)It is a systematic, planned approach.
B)It ensures that the stages of the research project will be independent of each other.
C)It guides the project from conception to the final analysis and presentation of results.
D)It creates a consistency between the research design and the research purpose.
E)All of these are true.

Question 42

A decision situation exists when

A)all possible decision alternatives have been defined
B)a choice must be made between two or more courses of action
C)a deadline is approaching
D)uncertainty exists

Question 43

Which of the following could be the covert purpose for a research study?

A)Postponement of an awkward decision, such as recalling an old product.
B)A desire to give the researcher responsibility for a difficult decision.
C)A manager's need for public relations for his programs.
D)A manager's desire to confirm the wisdom of a decision which has already been made.
E)All of these

Question 44

In estimating the value of research information, which of the following should not be calculated?

A)The expected value of the decision
B)The probability of obtaining each outcome
C)How the research would affect the expected value of the decision
D)The amount to be gained or lost corresponding with each outcome
E)The value of additional information

Question 45

If Veekay bases their decision only on expected values, should they introduce the new line of personal omputers?

A)yes
B)no
C)they would be indifferent
D)not enough information is given
E)they should provide free sample instead of doing any market research

Question 46

The Bayesian approach to decision making

A)assigns probabilities to each state of nature based on relative frequency probabilities
B)uses personal probabilities reflecting the decision maker's confidence in the truth of a specific proposition
C)is based on the principle of insufficient reason
D)assumes complete ignorance about the true state of nature

Question 47

What is the expected value of perfect information?

A)$2.0 million
B)$3.0 million
C)$5.0 million
D)$6.0 million
E)$8.0 million

Question 48

Which of the following is the most essential characteristic of good decision making information?

A)accuracy
B)currency
C)sufficiency
D)relevancy

Question 49

Which of the following is not true of a hypothesis? They

A)may be accepted or rejected
B)are merely a restatement of a research question
C)may be unproven
D)are all of the above

Question 50

The research question

A)refers to the question of whether or not to proceed at each evaluation point in the research project.
B)should not be specified in research involving internal problem- solving.
C)should be prepared in general terms.
D)asks what specific information is needed to achieve the research purpose.
E)should be consistent with the research purpose, with only one question stated for each purpose.

Question 51

Which of the following statements regarding the relationship between research users and researchers is false?

A)When an internal problem is being studied, the researcher should not know the identities of the research users.
B)The more a researcher knows about the objectives of the research users, the more valuable the researcher is likely to be.
C)The larger the problem, the more difficult it tends to be for a researcher to maintain contact with the research users.
D)They should have a shared understanding of decision alternatives, the importance of the decision, and the problems or opportunities
That are anticipated.
E)All of these are true.

Question 52

What is the expected value under certainty?

A)$8.4 million
B)$7.0 million
C)$9.8 million
D)$5.0 million
E)$9.4 million
Assume for the rest of the problem the answer to question 4 is $8 million.

Question 53

Which of the following should be understood before developing the research purpose?

A)The decision alternatives and means of choosing among them
B)The timing and importance of the decision to be made
C)Anticipated problems or opportunities
D)The expectations and objectives of the research users
E)All of these

Question 54

The research director was asked what the total cost of the research would be He stated that after including all the expenses of the test market, salaries, wages, outside consulting ees etc.the total cost would be $2.2 million.Should the company do the research study proposed by the director ?

A)yes
B)no
C)does not make any difference, expected profits are the same either way
D)not enough information to complete the decision tree and all calculations
E)not enough time to do a decision tree

Question 55

A decision tree represents 1-decision alternatives. 2-the uncertainty involved in the decision process. 3-the path that the research process will follow.

A)1
B)2
C)3
D)1 and 2
E)1, 2, and 3

Question 56

Sources of information to develop hypotheses include

A)previous research.
B)exploratory research specifically designed to come up with a hypothesis.
C)different academic fields, such as psychology, sociology, and marketing.
D)a manager's past experience.
E)all of these.

Question 57

Which of the following is not a part of the research process?

A)Formulation of the problem
B)Calculating the expected value of the project
C)Analyzing the data
D)Discussing the background of the research with decision makers
E)All of these are part of the research process.

Question 58

The most important activity stage in the marketing research process is

A)marketing problem or opportunity identification
B)marketing research project design
C)data collection
D)preparing and presentation of the research report

Question 59

Which of the following is not true about hypotheses?

A)A hypothesis is a possible answer to a research question.
B)A hypothesis usually adds specificity to a research question.
C)Only one hypothesis is concerned with each specific research purpose.
D)The alternative hypothesis is often obvious and need not be stated.
E)Not all situations require the development of hypotheses.

Question 60

Statistical hypotheses are

A)qualitative in nature
B)usually selected in a positive form
C)incapable of definitive testing
D)either accepted or rejected

Question 61

Which of the following is not part of the implementation phase of the research process?

A)Data collection
B)Data analysis
C)Presentation of the results to the decision maker
D)Specification of the sample size
E)All of these are part of the implementation phase of the research process

Question 62

Research problems in cross-cultural contexts are due to:

A)differences in socioeconomic conditions,
B)levels of economic development,
C)differences in any of the macroenvironmental factors
D)all of the above
E)none of the above

Question 63

The research design does not involve

A)determining the sampling plan.
B)decisions on the sampling frame.
C)collection of the data to be used.
D)creating the questionnaire.
E)selection of the research approach.

Question 64

The following is not a part of the Research Objectives

A)research question.
B)analysis of results.
C)development of hypotheses.
D)scope.
E)all of the above

Question 65

Assuming that the environmental variables prevalent in the researcher's domestic market is also applicable to the foreign country is called

A)Self-Reference Criterion.
B)ethnocentricity.
C)geocentricity.
D)home country affiliation.
E)none of the above.

Question 66

Gathering information on questions that would help the management to narrow down the possibilities for their marketing activities in an international context is called

A)an exploratory survey.
B)foreign market opportunity analysis.
C)programmatic research.
D)formalized research.
E)international research.

Question 67

Research studies evolve through a number of steps which are linked

A)sequentially
B)randomly.
C)geographically.
D)they are not linked
E)symmetrically