Deck 3: Capturing Marketing Insights and Forecasting Demand

Question 1

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to?

A) training and motivating the sales force to spot and report new developments
B) motivating distributors, retailers, and other intermediaries to pass along important intelligence
C) hiring external experts to collect intelligence
D) using external network
E) purchasing information from outside research firms and vendors

Answer 1

E

Question 2

Because customers are not really concerned with timely delivery, customers are unlikely to differentiate between firms based on their order-to-payment cycles.

Answer 2

False

Question 3

Describe the steps in the order-to-payment cycle.

Answer 3

Sales representatives, dealers, and customers send orders to the firm. The sales department prepares invoices, transmits copies to various departments, and back-orders out-of-stock items. Shipped items generate shipping and billing documents.

Question 4

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a ________.

A) government source of data
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor feedback site

Question 5

The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery.

A) sales information system
B) data mining system
C) order-to-payment cycle
D) information needs probe
E) data warehouse

Question 6

What are the two basic advantages that a company's marketers have in identifying significant changes in the market?

Question 7

As the manager of an organization that is attempting to build a marketing information system (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.

A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Question 8

What is a marketing information system (MIS)? From what sources is the MIS developed?

Question 9

Companies can practice targeted marketing by using ________, which are records of Web site usage stored on personal browsers.

A) plug-ins
B) data warehouses
C) cookies
D) trolls
E) Big Data

Question 10

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.

A) internal
B) revenue
C) thematic
D) happenings
E) process

Question 11

List three examples of how companies are using Big Data.

Question 12

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

Question 13

A company can take several steps to improve the quality of its marketing intelligence. One company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information. This company is ________.

A) taking advantage of government data
B) motivating intermediaries to share intelligence
C) networking internally and externally
D) setting up customer advisory panels
E) buying information from research firms

Question 14

PlanetFeedback.com is a website where consumers can post complaints and compliments about products and services. This is an example of a government-related public resource, which is one of the main ways marketers can research competitors' product strengths and weaknesses online.

Question 15

Marketers have little information about buyer wants, preferences, and behavior.

Question 16

When gathering marketing intelligence, companies often use the U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of the more than 281 million people living in the United States. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?

A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Question 17

Few consumers actually delete cookies frequently. When customers do not delete cookies, they expect customized marketing appeals and deals.

Question 18

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents.

A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

Question 19

Marketers have the major responsibility for identifying significant changes in the marketplace.

Question 20

When ConAgra learned that stores were selling more time-saving meals and snacks when school started, it launched its "Seasons of Mom" campaign to help grocers adjust to seasonal shifts in household needs. Which of the eight possible actions to improve the quantity and quality of its marketing intelligence yielded this insight?

A) Train and motivate the sales force to spot and report new developments.
B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence.
C) Hire external experts to collect intelligence.
D) Network internally and externally.
E) Set up a customer advisory panel.

Question 21

If a company were pursuing a policy of networking externally to gather marketing intelligence, it might collect competitors' ads or look up news stories about competitors.

Question 22

Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Company)?

A) custom marketing research firms
B) syndicated-service research firms
C) specialty-line marketing research firms
D) generic marketing research firms
E) focused marketing research firms

Question 23

How do distributors, retailers, and other intermediaries help a company to improve the quantity and quality of its marketing intelligence?

Question 24

Which of the following is considered to be the last step in the marketing research process?

A) presenting findings
B) analyzing information
C) controlling the environment
D) arriving at a decision
E) drafting the report

Question 25

________ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers.

A) Marketing insights
B) Marketing metrics
C) Marketing channels
D) Marketing information systems
E) Marketing-mix models

Question 26

________ questions allow respondents to answer in their own words and often reveal more about how people think.

A) Open-end
B) Dichotomous
C) Likert scale
D) Multiple-choice
E) Semantic differential

Question 27

Unistar Inc., is an FMCG company that produces a wide range of offerings such as grocery items and personal care products. If Unistar wants to estimate the demand for its new line of body moisturizers, which are all priced at $18, it should opt for ________ research.

A) descriptive
B) exploratory
C) prescriptive
D) causal
E) qualitative

Question 28

What are the various steps a company can take to improve the quality of its marketing intelligence function?

Question 29

When American Airlines asked "1) What types of first-class passengers would respond most to ultra high-speed Wi-Fi service and 2) How many are likely to use it at different price levels?", it was ________.

A) setting specific research objectives
B) conducting exploratory research
C) outlining decisions
D) defining the problem
E) designing a research plan

Question 30

________ research approach uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work.

A) Cognitive
B) Inductive
C) Archaeological
D) Ethnographic
E) Deductive

Question 31

What is a marketing intelligence system? How can marketing intelligence data be collected?

Question 32

Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers. Anne is attempting to conduct marketing research by ________.

A) studying customer behavior
B) forming alliances with competing firms
C) using experimental research techniques
D) checking out rivals
E) tapping into marketing partner expertise

Question 33

When American Airlines decided to review new ideas aimed at first-class passengers on very long flights, like an ultra high-speed Wi-Fi service and 124 channels of high-definition satellite cable TV, their first step in the marketing research process was to ________.

A) develop the research plan
B) define the problem and research objectives
C) collect the information
D) analyze the information
E) make the decision

Question 34

If the goal of marketing research is to shed light on the real nature of a problem and to suggest possible solutions or new ideas, the research is said to be ________.

A) descriptive
B) quantitative
C) primary
D) secondary
E) exploratory

Question 35

Which of the following is used to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population?

A) observational research
B) descriptive research
C) quantitative research
D) survey research
E) experimental research

Question 36

As the marketing manager of Cominform Pvt. Ltd., a manufacturer of health drinks, you have selected 10 individuals who match the profile of your target customer, to participate in a discussion on changing lifestyle trends related to health. You have also hired a skilled moderator to facilitate the discussion and ensure that everyone participates and stays focused on the topic. The moderator provides questions and probes based on the "script" prepared by you. The discussions are also recorded for further analysis. Which of the following methods of acquiring primary data is being used in this case?

A) observational research
B) surveys
C) behavioral data
D) experiments
E) focus groups

Question 37

Researchers usually start their investigation by examining some of the rich variety of low-cost and readily available ________ data, then collect ________ data if the needed data don't existing or are dated, inaccurate, incomplete or unreliable.

A) primary; secondary
B) secondary; primary
C) primary; econometric
D) secondary; econometric
E) exploratory; econometric

Question 38

Designing a research plan calls for decisions on all of the following EXCEPT ________.

A) research objectives
B) data sources
C) research approaches
D) research instruments
E) sampling plans

Question 39

Primary data can be collected in several ways. Installing cameras in a retail store to unobtrusively record shopping behavior is an example of ________ research.

A) focus group
B) survey
C) observational
D) behavioral
E) experimental

Question 40

________ research is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings.

A) Experimental
B) Behavioral
C) Observational
D) Focus group
E) Descriptive

Question 41

What are the six steps involved in the marketing research process?

Question 42

The sales goal set for a product line, company division, or sales representative of an organization is called ________.

A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Question 43

During a recession, the market demand curve, which is a function of marketing expenditure, ________.

A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Question 44

Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant.

Question 45

Which of the following is considered to be the most versatile of all the contact methods?

A) mail questionnaires
B) telephone interviews
C) personal interviews
D) online interviews
E) field trials

Question 46

A tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds and asks the respondent to describe what s/he recalls.

Question 47

With an increase in marketing expenditure, market demand ________.

A) continues to rise at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.

Question 48

What is the chief advantage of using each of the following contact methods: mail questionnaire, telephone interview, and personal interview?

Question 49

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential

Question 50

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 51

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes.

A) $5,000 million
B) $6,500 million
C) $7,500 million
D) $10,000 million
E) $75 billion

Question 52

Explain qualitative research and why it might be useful to marketers.

Question 53

After developing a research plan, a marketing researcher should define the problem and research objectives.

Question 54

A good example of collecting behavioral data would be when a store uses scanners to read bar codes on products selected by consumers.

Question 55

The response rate is usually very high for mail questionnaires.

Question 56

James collected primary data when he distributed a survey to dorm residents to discover their attitudes and opinions on campus life.

Question 57

The goal of exploratory research is to shed light on the real nature of the problem and to suggest possible solutions or new ideas.

Question 58

With respect to the sampling plan, three decisions must be made: 1) the sampling unit-who is to be surveyed; 2) sample size-how many people should be surveyed; and 3) ________.

A) sample cost-how much does sampling cost
B) surveyor skill-who should conduct the survey
C) sample security-how should the sample data be protected
D) sampling procedure-how should respondents be chosen
E) sample supervisor-who leads the sampling effort

Question 59

Aromas is a popular brand of cosmetic products. During the last quarter, the company suffered a drop in sales of some of its more popular offerings. In an attempt to find out the problem, Aromas designed an online questionnaire for its existing customers, who can fill out the questionnaire and also leave their comments and suggestions for improvement. What are the problems that Aromas is likely to face by using this method of contacting its customers?

Question 60

A marketing research firm has instructed its research associates to collect primary data by stopping people at a shopping mall or busy street corner and request an interview on the spot. What are the drawbacks of using this method?

Question 61

Briefly describe the methods of forecasting future demand.

Question 62

The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life.

Question 63

Simpsons, a manufacturer of air conditioners, finds that its sales potential is less than its market potential even when it spends a sufficient amount on advertisements and after sale services. What is the basic reason behind such an observation by the marketers of Simpsons?

Question 64

Discuss the impact of tougher environmental regulations on businesses, citing examples whenever possible. Also, point out opportunities, if any, presented by these regulations.

Question 65

Which of the following is True about trends in worldwide population growth?

A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

Question 66

Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

Question 67

A possible unintended effect of business legislation is ________.

A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth

Question 68

Suppose the Belgian government prohibits sale of cigarettes to people below 20 years of age. Who are likely to comprise the qualified available market for Dunhill, a manufacturer of herbal cigarettes in Belgium?

Question 69

Which of the following is True about the technology trends that marketers should monitor?

A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) China leads the world in spending on research and development.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

Question 70

A fad is more predictable and durable than a trend.

Question 71

In order to estimate future demand, companies commonly prepare a company sales forecast first, followed by an industry forecast, and finally a macroeconomic forecast.

Question 72

How does the marketing environment determine the position of the market demand function?

Question 73

Why do companies need to search for practical means to harness renewable sources of energy like wind and water?

Question 74

Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

Question 75

Assume that you are a marketing manager for a youth clothing manufacturer that has just read about the demographic trend of the "rising Hispanic influence" in the United States. Explain this trend and indicate why it might be important to your company.

Question 76

________ beliefs and values are passed from parents to children and reinforced by social institutions-schools, churches, businesses, and governments; they are very difficult to change.

A) Transient
B) Secondary
C) Protected
D) Core
E) Variable

Question 77

The market forecast shows expected market demand, not maximum market demand.

Question 78

The United States has one of the world's highest percentages of college-educated citizens. What can be the possible implications of this observation to the marketing environment of a U.S. firm?

Question 79

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc.?

A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

Question 80

Regulation of technological changes has been relaxed by the U.S. government over recent years.