Deck 30: Understanding Customer Needs

Question 1

If Kodak wanted to test its customers' reaction to a new digital camera innovation, which research methodology would be best suited to this?

A) mall intercept surveys.
B) telephone surveys.
C) online questionnaires.
D) depth interviews.
E) focus groups.

Answer 1

E

Question 2

Focus groups allow clients to

A) test marketing communications messages.
B) interact directly with customers.
C) gather quantitative data.
D) ensure the moderator follows the guide.
E) gather research for free.

Answer 2

A

Question 3

Qualitative techniques include

A) ethnography.
B) mall intercept surveys.
C) telephone surveys.
D) online questionnaires.
E) secondary research.

Answer 3

A

Question 4

A data collection method where the moderator engages one respondent in a conversation for at least 60 minutes is referred to as

A) a depth interview.
B) a focus group.
C) an online survey.
D) a telephone survey.
E) an in-store survey.

Question 5

When Sony targeted the Walkman to joggers who would appreciate the break from a tedious activity, the company was

A) conducting research.
B) narrowcasting.
C) repositioning the product.
D) creating a customer need.
E) trying out various sales strategies.

Question 6

Focus groups are conducted

A) online.
B) in shopping malls.
C) over the phone.
D) by a moderator.
E) by a secondary research source.

Question 7

Before conducting primary research, this technique can help identify gaps in knowledge and what traps to avoid.

A) focus groups
B) secondary research
C) ethnographies
D) depth interviews
E) exploratory research

Question 8

Companies that try to push a good or a service on customers are destined to fail without a proper understanding of

A) the competition.
B) media planning.
C) customer needs.
D) advertising research.
E) the marketing mix.

Question 9

Southwest Airlines' decision to focus on the customer segment that does not want frills, only low fares, demonstrates the firm's deep understanding of

A) customer needs.
B) economies of scale.
C) advertising.
D) public relations.
E) the competition.

Question 10

When the sales department drops prices to secure a contract, while the marketing function is trying to build the brand and maintain price premiums, the brand is

A) more competitive.
B) using a pull strategy.
C) using a push strategy.
D) devalued in the marketplace.
E) number one in the marketplace.

Question 11

Danone created a new market for its Danone Actimel yogurt by

A) focusing on a specific audience segment.
B) increasing advertising spending.
C) expanding distribution.
D) using just a health appeal in their advertising.
E) combining health benefits and taste.

Question 12

Companies that do not understand their customers are likely to

A) spend less on advertising.
B) maintain price premiums.
C) have synergy among all their functions.
D) create customer value.
E) focus solely on the technology.

Question 13

An accurate understanding of customer needs allows a company to

A) create customer value.
B) meet financial objectives.
C) respond to competitive threats.
D) perfect advertising messages.
E) develop media plans.

Question 14

In organizations where there is no clear and widely shared understanding of customer needs

A) all functions are integrated.
B) operations are streamlined.
C) departments have multiple responsibilities.
D) the marketing direction is determined by the sales function.
E) each function does its own thing.

Question 15

A caution you should heed when conducting secondary research is that

A) the research may be biased.
B) it is relevant to your marketing problem.
C) published sources are always reliable.
D) all research objectives are similar.
E) most research is current.

Question 16

An advantage of secondary research is that

A) you conduct the research yourself.
B) it takes longer than primary research.
C) it can be expensive.
D) you may find the answer you are researching.
E) there are few sources of secondary data.

Question 17

Research that has already been conducted by someone else is referred to as

A) primary research.
B) secondary research.
C) qualitative research.
D) quantitative research.
E) a survey.

Question 18

The main goal of primary research techniques is to

A) identify gaps in knowledge.
B) explore the dimensions of a problem and generate ideas.
C) learn what traps to avoid.
D) determine research objectives.
E) gather customer insights from databases.

Question 19

Common sources for secondary research include

A) focus groups.
B) depth interviews.
C) ethnographies.
D) company employees.
E) professional associations.

Question 20

A guided discussion with a group of respondents such as customers is referred to as

A) participant observation.
B) a group survey.
C) an in-store survey.
D) a depth interview.
E) a focus group.

Question 21

If a company marketing medical diagnostic equipment wants to understand the buying decision-making process, it should conduct research with physicians using which technique?

A) a telephone survey
B) an online survey
C) participant observation
D) a hospital questionnaire
E) a depth interview

Question 22

Quantitative data collection by means of a questionnaire is referred to as

A) a survey.
B) a depth interview.
C) a focus group.
D) participant observation.
E) sales tracking.

Question 23

The main problem with using marketing research to understand customer needs is that

A) the research may be biased.
B) the research may be outdated.
C) the research objectives may not match your objectives.
D) customers may not be able to articulate their needs.
E) the moderator may not follow the guide.

Question 24

Surveys are not used to generate ideas but to

A) test new product concepts.
B) test key marketing messages.
C) validate ideas.
D) understand the buying process.
E) explore the dimensions of a problem.

Question 25

By allowing customers to customize their bear and meet an unlimited set of needs, Build-A-Bear is

A) conducting market research.
B) segmenting their target audience.
C) maximizing resources.
D) communicating key messages to customers.
E) involving the customer in the innovation process.

Question 26

All questionnaires include this class of questions.

A) primary
B) secondary
C) product concept
D) demographic variables
E) participant observation

Question 27

Unlike qualitative research methods, survey research is used to collect data from

A) a small group of customers
B) a large sample of respondents
C) focus group participants
D) depth interview participants
E) researchers who become the customer

Question 28

When FedEx, the overnight package delivery company, bought Kinko's, the document printing company, they became an example of a company that

A) acts first, then tweaks later.
B) co-creates customer value.
C) treats the whole world as a research firm.
D) looks across the chain of buyers.
E) looks at substitute industries.

Question 29

Manufacturers often naively believe that their only competitors are

A) national brands.
B) heavily advertised brands.
C) in the same country.
D) in the same city.
E) in the same industry.

Question 30

A process where the researcher actively participates with the customer to gain insights is referred to as

A) a focus group.
B) a depth interview.
C) a mall intercept survey.
D) secondary research.
E) participant observation.

Question 31

When trying to understand why its customers might tattoo the brand name on their bodies, Harley Davidson might turn to

A) focus groups.
B) ethnography.
C) depth interviews.
D) online surveys.
E) customer satisfaction surveys.

Question 32

The medium that allows smart companies to involve the consumer in the innovation process is

A) television.
B) radio.
C) the internet.
D) newspapers.
E) magazines.

Question 33

Customers are always able to articulate their needs in terms of

A) their attitudes and feelings.
B) their behaviour.
C) their demographic variables.
D) their psychographic variables.
E) their basic care needs.

Question 34

Smart companies challenging the product-centric approach to marketing are embracing a method whereby they are

A) co-creating value with their customers.
B) determining what's best for their customers.
C) conducting secondary research.
D) conducting primary research.
E) becoming the customer.

Question 35

Looking across complementary product and service offerings is one way a company can

A) test new message strategies.
B) test new product concepts.
C) co-create customer value.
D) create new market space.
E) research the competition.

Question 36

DeWalt's sending researchers to work alongside professionals who work with their tools is an example of

A) a depth interview.
B) a focus group.
C) participant observation.
D) public relations.
E) direct marketing.

Question 37

One problem that companies face is that by the time the research takes place,

A) the marketing budget is spent.
B) competitors beat them to the marketplace.
C) the market opportunity may have passed.
D) the secondary research is outdated.
E) the focus group participants are no longer customers.

Question 38

Starbucks was able to break free of the price-cutting and promotional norms of the coffee industry by

A) commoditizing the industry.
B) focusing on a common set of appeals.
C) offering complementary products.
D) appealing to an emotional benefit.
E) appealing to price-sensitive customers.

Question 39

Most competitors look the same, offer the same value, and commoditize the industry because they

A) offer complementary products.
B) focus on a common set of appeals.
C) focus on different types of buyers.
D) co-create value with the customer.
E) conduct similar research studies.

Question 40

In ethnographies, the researcher becomes

A) the secondary source.
B) the moderator.
C) the customer.
D) the marketer.
E) the interviewer.

Question 41

The problem with using marketing research tools to understand customer needs is that customers may not be able to articulate their needs.

Question 42

Harley Davidson should turn to ethnography when trying to understand the emotional connection to the brand that would cause customers to tattoo the logo on their bodies.

Question 43

Primary research is research that has already been conducted by someone else.

Question 44

A data collection method where the moderator engages one respondent in a conversation for at least 60 minutes is referred to as a survey.

Question 45

A focus group is a great way to explore the dimensions of a problem.

Question 46

Questionnaires are good for counting and summarizing results, but not for generating ideas.

Question 47

Firms that take a product-centric approach to marketing tend to co-create value with their customers.

Question 48

In ethnographies, the researcher becomes a customer to learn more about customer needs and value drivers.

Question 49

While formal market research is useful, do not discount informal ways to listen to your customers.

Question 50

All questionnaires contain questions about feelings and attitudes, behaviour, and demographic variables.

Question 51

By letting customers customize their own experience, Build-A-Bear is involving customers in the innovation process.

Question 52

Secondary research techniques are also known as exploratory research techniques.

Question 53

By offering food services at movie theatre complexes so that patrons can get a meal before the show, movie theatre companies are creating value by

A) considering substitute industries.
B) offering complementary services.
C) targeting multiple audience segments.
D) making an emotional connection with audiences.
E) creating partnerships.

Question 54

Reliable, unbiased research can only come from customers.

Question 55

Secondary research cannot identify what gaps exist in knowledge or what traps to avoid.

Question 56

Participant observation is a process where the researcher actively participates with the customer to gain insights that other techniques may not be able to generate.

Question 57

Companies can only create customer value if they have an accurate understanding of customer needs.

Question 58

When Arbol Industries' sales professionals adopted the practice of visiting their customers at their place of work, they

A) commoditized their products.
B) better understood their customers' needs and uncovered opportunities.
C) offered complementary products and services.
D) targeted multiple audience segments.
E) developed a "push" strategy.

Question 59

Focus groups are an inflexible technique.

Question 60

The really smart companies do not merely understand customer needs; they create them.

Question 61

Explain the advantages of focus groups.

Question 62

What type of data collection is the depth interview method most appropriate for?

Question 63

How did Starbucks decommoditize the coffee industry and broaden its appeal to customers?

Question 64

Describe the participation observation technique and provide an example.

Question 65

Focus groups allow clients to interact directly with customers.

Question 66

Companies like Dyson know that customers need a set of complementary goods and services to complete the experience.

Question 67

List the advantages of secondary research.

Question 68

Using the introduction of the Sony Walkman as an example, explain how Sony didn't just understand customer needs, but "created" them.

Question 69

Using movie theatres as an example, explain why smart companies offer complementary products and services.

Question 70

Common sources of secondary data include the government, educational institutions, and professional associations.

Question 71

What are the three classes of questions that all questionnaires contain?

Question 72

How do companies co-create value with the customer, and which medium is helping to facilitate this?

Question 73

Primary research is quicker than secondary research.

Question 74

A focus group is a guided discussion with a group of respondents such as customers.

Question 75

FedEx focused on the needs of different customers when it bought Kinko's, allowing customers to not only print but also to ship their documents.

Question 76

Name at least three cautions you should heed when conducting secondary research.

Question 77

Winning companies create new markets by focusing on offering the same value as competitors.