Deck 3: The Marketing Research Industry

Question 1

Which of the following best illustrates some of the challenges facing marketing research?

A) the need to require a certification program leading to a CPA-MR
B) improving consumer cooperation, being too parochial, operating in a "silo," and being too tool oriented
C) focusing on diagnosing budgets, using an integrative approach, and expanding the use of tools of marketing research
D) focusing on slowing down the marketing research process, using IT, using a centralized approach, and expanding the tactical use of marketing research
E) Using too few tools of marketing research, increasing the use of low-level tactics and encouraging efficiency by doing research on supply chain management issues.

Answer 1

B

Question 2

Today, if you were to ask a group of marketing researchers what their biggest concern is, they would say:

A) lack of government regulation of the finance industry
B) industry standards being too high to achieve
C) lack of control of interest rates
D) globalization
E) the economy

Answer 2

E

Question 3

An annual publication that lists the top 25 global marketing research firms in the world is known as:

A) the World's Top 25
B) Research World's 25
C) the Honomichl Global Top 25
D) the Limbaugh Top 25
E) the MRA's Top 25

Answer 3

C

Question 4

When firms come together in a way that allows each firm to take advantage of the other firm's expertise and resources, this is called forming:

A) a strategic alliance
B) strategic thinking
C) alliance sharing
D) a mutually beneficial partnership
E) a good contract

Question 5

In discussing the structure of the marketing research industry, the authors define an internal supplier firm as one that:

A) makes research decisions based primarily upon information supplied by the internal reports system
B) is organized in a staff relationship to other internal departments
C) provides syndicated services, but only to members of the syndicate
D) has its marketing research provided by an entity, such as a marketing research department, within the firm
E) includes internal data analysis services

Question 6

What did the Marketing Research Association do in 2005 that changed the credentialing of marketing research professionals?

A) They brought a lawsuit against several practitioners who were not qualified to practice marketing research.
B) They required all practitioners to take a test on qualitative research methods.
C) They created the Professional Researcher Certification.
D) They required all AACSB accredited colleges to offer a course in marketing research.
E) Nothing has been done; one of the problems the industry has is that there is no credentialing program.

Question 7

Providing the capability of conducting a "mock jury" for an impending legal trial would be a service provided by:

A) a standardized service firm
B) a syndicated data service firm
C) an internal supplier firm
D) a customized service firm
E) a field service firm

Question 8

Which of the following best explains the role of marketing research by the 1960s?

A) marketing research seemed to outlive its usefulness
B) the Marketing Research Association, Inc., was formed and accepted all firms as members whether accredited or not
C) the number of marketing research departments grew
D) few people wanted to major in marketing research
E) marketing research gained acceptance in organizations and was recognized as being needed for survival

Question 9

Who, among the following, is given credit for conducting the first continuous and organized marketing research and is also recognized today as the "Father of Marketing Research"?

A) Charles Coolidge Parlin
B) C. J. Craig
C) Jed Bartlet
D) Charlie Young
E) Josh Lyman

Question 10

Firms that specialize in collecting data are called:

A) data storage firms
B) lab service firms
C) market segment data specialists
D) field service firms
E) data labs

Question 11

What was the significance of the years following the Industrial Revolution to the marketing research industry?

A) The early development of questionnaires, which were put into use providing marketing researchers with a method of gathering new information from customers, dealers, and competitors, occurred.
B) Companies were separated from their customers, and there was a need to understand faraway markets.
C) Marketing research became fully accepted; formal recognition of the marketing research function led to the creation of marketing research departments.
D) High-tech products such as CARDs, CATIs, SPSS, and DBMs developed.
E) Nothing really changed in the marketing research industry after the Industrial Revolution.

Question 12

In terms of the evolution of the marketing research industry, what was the significance of the era which ranged from about 1940 to 1960?

A) Questionnaires were put into use providing marketing researchers with a method of gathering new information from customers, dealers, and competitors.
B) Finally, marketing research became fully accepted; formal recognition of the marketing research function led to the creation of marketing research departments.
C) High-tech products such as CARDs, CATIs, SPSS, and DBMs developed.
D) Focus groups, statistical analysis, and the computer became part of the marketing researchers' tool kit, greatly aiding them in their research efforts.
E) none of the above

Question 13

Full-service supplier firms:

A) take over customer firms
B) are known as companies that excel in providing customer service
C) have the ability to conduct the entire marketing research project
D) are always internal supplier firms
E) provide services at a reduced cost due to economies of scale

Question 14

When there is no formal research department, internal suppliers organize the research function by assigning responsibility to:

A) research application and by budget category
B) a series of vice presidents and subordinates handling each marketing research project
C) informal departments organized around budget categories
D) single individuals, a committee, or by assigning no one responsibility
E) ad hoc task forces

Question 15

A research firm that uses only one technique, such as eye movement research or taste testing, would be called:

A) a full-service supplier firm
B) a syndicated data service firm
C) a firm that is said to have "vision"
D) a limited service supplier firm
E) an internal supplier firm

Question 16

Which of the following reports a list of marketing research firms ranked in terms of revenues from U. S. operations only?

A) the Limbaugh Top 50
B) the U.S. Top 50
C) the Honomichl Top 50
D) MRA's Top U.S.
E) Smith & Wolensky's Top 125

Question 17

External supplier firms may be either:

A) vertically or horizontally integrated
B) full-service or limited-service firms
C) syndicated or internal supplier firms
D) certified, or be required to offer letters of qualified research service capability
E) strategically aligned or working alone

Question 18

Firms that collect information, store it on a common database, and make it available to multiple subscribers are called:

A) internal subscription services
B) syndicated data service firms
C) standardized service firms
D) internal supplier firms
E) customized research firms

Question 19

The largest marketing research firm is:

A) Peabody and Associates
B) Burke, Inc.
C) Marketing Research Association
D) The Nielsen Co.
E) World Wide Pants, Inc.

Question 20

Which of the following types of marketing research firms would be considered "limited service" firms?

A) syndicated data services firms
B) standardized services firms
C) customized services firms
D) field services firms
E) online research services firms

Question 21

Marketing researcher certification, PRC, stands for:

A) Public Researcher, Certified
B) Professional Researcher Certification
C) Public Researcher, Corporate
D) Professional Researcher Certificate
E) Public Researcher Certification

Question 22

Certification of marketing researchers means:

A) marketing researchers who earn the PRC would be the "best" marketing researchers
B) PRC certification would mean those having the PRC would be able to charge higher fees for their services
C) PRC certification would mean that those holding the PRC would have achieved some MINIMAL standard of performance
D) PRC certification would mean that those holding the PRC would have achieved some MAXIMUM standard of performance
E) those desiring the PRC will have better report writing skills

Question 23

Panel equity refers to:

A) the ownership of research companies in terms of employee/investor ownership
B) the value of panels, meaning that they represent access to willing respondents
C) the value of panels, meaning that company CEOs should serve on as many panels as possible
D) the ownership of panels versus acquiring panels by borrowing
E) having the same number of males and females on a panel

Question 24

Deception, especially invasion of privacy, is a serious ethical issue in marketing research and occurs in research studies. Which of the following is an example of deception?

A) Potential respondents are not told the true identity of the sponsor of the research.
B) Potential respondents are viewed during a study without their permission.
C) Potential respondents are told they will remain anonymous when they will not.
D) all of the above
E) none of the above

Question 25

A marketing researcher who conducts research at a cost to the individual, but at a benefit to society, most likely prescribes to which philosophical belief?

A) deontology
B) sociology
C) teleology
D) demonology
E) criminology

Question 26

Which of the following is NOT true of SPAM and the marketing research industry?

A) Marketing research firms are required to submit an anti-SPAM report each year to the Association to Reduce SPAM, ARS.
B) Marketing research firms have not been included in a definition of SPAM abusers.
C) Marketing research firms have not been included in anti-SPAM legislation.
D) The marketing research industry has worked hard to establish codes of ethics dealing with online research.
E) IMRO and CASRO have been leaders in establishing codes of ethics dealing with online research.

Question 27

Which of the following is true regarding what the authors have to say about the percentage of respondents willing to participate in research surveys?

A) The percentage has been going up because consumers see a difference between research and telemarketing.
B) The percentage has been going down because consumers see a difference between research and telemarketing.
C) The percentage has been stable.
D) The percentage goes up exponentially when incentives are provided.
E) The percentage has been going down.

Question 28

Some suggested remedies for some of the problems we see in the marketing research industry are:

A) certification, the passage of more restrictive legislation to govern the industry, and requiring all marketing researchers to annually pass standardized tests on marketing research
B) certification and a system of fining those found not to be conducting research studies at some minimum standard of performance
C) certification and education
D) requiring all employees of marketing research firms to have business degrees in marketing research and to pass a standardized test
E) passage of more restrictive legislation and an auditing system

Question 29

Unwanted e-mail is called:

A) SPAM and was used by some online survey research companies a few years ago
B) UWM and was used by some online survey research companies a few years ago
C) SPAM and was never used by online survey research companies because it is unethical
D) UWM and was never used by online survey research companies because it is illegal
E) UWM, and SPAM is a subset of UWM

Question 30

Charles Coolidge Parlin is the current president of the Marketing Research Association and started the PRC certification program.

Question 31

The PRC has been quickly adopted by both clients and research professionals.

Question 32

Marketing researchers have experienced ethical dilemmas doing research on which of the following products?

A) sugar
B) tires
C) textiles
D) furniture
E) flowers

Question 33

What are the two primary philosophies regarding ethical behavior?

A) demonology and theology
B) deontology and theology
C) demonology and teleology
D) theology and teleology
E) deontology and teleology

Question 34

What does frugging refer to?

A) selling under the guise of a survey
B) fundraising under the guise of a survey
C) collecting data through telephone interviews
D) falsifying data
E) frightening (respondents) under the guise of research

Question 35

What does sugging refer to?

A) selling under the guise of a survey
B) fund raising under the guise of a survey
C) collecting data through telephone interviews
D) falsifying data
E) surveying under the guise of selling

Question 36

Professional organizations try to prescribe ethical behavior for members by creating:

A) representatives in churches to influence future researchers
B) codes of ethical behavior
C) lobbyists who fight for higher ethical standards in government
D) examples of poor ethical behavior in other professions
E) means to participate in the development of certification standards in professions other than marketing research

Question 37

Which philosophical belief is concerned with the rights of the individual?

A) teleology
B) sociology
C) criminology
D) the first amendment
E) deontology

Question 38

Which of the issues below best illustrates researchers falsifying data in order to make the findings consistent with predetermined points of view:

A) lack of research integrity
B) lack of the use of PRC's who would not falsify data for any reason
C) when clients use fake "research funds provided" to underbid projects
D) lack of the use of data falsification software
E) use of data falsification software

Question 39

During the early days of the history of the United States, artisans and craftsmen were involved in barter exchange and understood their customer's wants and needs. There was not much need for marketing research.

Question 40

By the 1960s, marketing research not only had gained acceptance in organizations, but was recognized as important to firms' survival.

Question 41

External suppliers organize themselves in different ways, including by function (data analysis, data collection, etc.), by type of research application (customer satisfaction, ad effectiveness, etc.), by geography, by customer, or by a combination of these.

Question 42

World revenues for the marketing research industry are about $300 billion annually.

Question 43

Standardized service firms provide unique data to clients through a standardized service process.

Question 44

A firm specializing in data collection forming a partnership with a firm specializing in data analysis would be an example of a strategic alliance.

Question 45

Field service firms specialize in collecting data and are full-service firms.

Question 46

Internal supplier firms organize the research function by using either committees or by assigning individuals the responsibility. They do not have their own departments of marketing research.

Question 47

The categorization of marketing research firms includes the category "online research services firms." Although many of these firms could be placed in one of the other categories, your authors place them in the "online research" category because these firms specialize in online research. Examples include Affinova, Knowledge Networks and Active Group.

Question 48

The Honomichl Top 50 is an annual report listing the top 50 marketing research firms in terms of revenues earned in the United States.

Question 49

General Mills has a research department that provides for the function of marketing research at the company. This is an example of what we mean by an external supplier firm.

Question 50

Syndicated data services companies provide customized information and services to individual clients.

Question 51

Marketing research departments are usually organized according to one, or a combination of the following functions: area of application, marketing function, or the research process.

Question 52

Providing the services of a "mock jury" for a client who is involved in litigation would be a service offered by a syndicated data services firm.

Question 53

Marketing research firms classified as "market segment specialists" and "field services" firms are categorized as being "full-service" marketing research firms.

Question 54

Very few of the largest firms (sales volumes in excess of $500 million)have their own marketing research departments, but they usually have at least one person responsible for conducting marketing research.

Question 55

External supplier firms may be classified into the two categories of full-service and field data service firms.

Question 56

Some firms specialize in telephone surveying and have large numbers of telephone interviewers working in central locations. These firms are classified as limited-service field services firms that are sometimes referred to as "phone banks."

Question 57

Customized service firms tailor research services to each client's specific needs.

Question 58

Research suppliers may be thought of as consisting of two groups: internal suppliers and external suppliers.

Question 59

The Honomichl Global Top 25 is an annual listing of marketing research firms ordered in terms of revenue generated ONLY in the U.S.

Question 60

In the marketing research industry, full-service supplier firms have the ability to define the problem, specify the research design, collect and analyze the data, and prepare the final report as part of their service.

Question 61

Certification is a designation that indicates the achievement of some minimal standard of performance. Marketing researchers may earn the certification today known as PRC, Professional Researcher Certification.

Question 62

Although "sugging" is considered unethical, it is not illegal.

Question 63

Certification, such as the PRC, applies to individuals. Accreditation applies to an organization such as the marketing research firm.

Question 64

In evaluations conducted on the performance of the marketing research industry, the conclusions have been consistent in saying that the industry is plagued with so many problems that it has not been able to operate at any level other than "unsatisfactorily."

Question 65

PRC certification awards certification at two levels: expert & practitioner.

Question 66

Ethics may be defined as a field of inquiry into determining what behaviors are deemed appropriate under certain circumstances as prescribed by codes of behavior that are set by the government.

Question 67

Teleology is concerned with assessing benefits and costs to society.

Question 68

Deontologists and teleologists have similar views as to what is ethical and unethical.

Question 69

Although "frugging" is considered unethical, it is not illegal.

Question 70

A firm specializing in developing samples for companies desiring to conduct marketing research would be an example of a limited-service firm.

Question 71

Some critics of the marketing research industry believe that marketing research is done too quickly. Researchers need to slow down to improve the value of the research information they are providing clients.

Question 72

Once PRC certification is awarded an individual, there is no requirement that the individual do anything else to maintain his/her certification.

Question 73

While there are many individual classes available for educating members of the marketing research profession, as of 2010, there are no masters programs offering a specialization in marketing research.

Question 74

Critics of the marketing research industry believe that marketing researchers should attempt to work in "silos." In other words, they need to work in an environment that is closed off from interaction from other departments that may unduly influence their objectivity.

Question 75

The marketing research industry offers many educational opportunities for members of the industry. One highly regarded training program is offered through The Burke Institute.

Question 76

Given the many problems facing the marketing research industry, suggestions for improvement have centered around certification and education.

Question 77

Some critics of the marketing research industry believe that the industry is too "tool" oriented, and often the problem is defined in terms of being compatible with an existing tool (ah, we can use conjoint analysis to solve this problem). Thus, researchers fail to consider focusing on the more complex strategic issues facing the firm.

Question 78

Although they abound in other areas, codes of ethical behavior have yet to be proposed in the marketing research industry.

Question 79

Some critics believe that both marketing and marketing research have lost importance in organizations, and that marketing research no longer represents the "voice of the consumer."

Question 80

Companies that specialize in services such as eye movement research, mystery shopping, taste tests, fragrance tests, and so on are categorized as limited service, specialized research technique firms.