Deck 3: Secondary Data and Databases

Question 1

A market researcher was negotiating with a client concerning the best way to accomplish the client's objectives. The researcher discovered a study, which had some circumstances similar to that of the present client. Which of the following best describes what happened?

A) Secondary data provided primary research alternatives.
B) Secondary data actually provided the solution to the problem.
C) Secondary data helped to clarify the problem.
D) Secondary data provided necessary background information.
E) none of the above

Answer 1

A

Question 2

Suppose a market researcher consulted multiple information sources regarding the addition of a movie theater to a local community, and found the following: Percent of Local Movie Goers
2011 2011
Theaters within 10 Miles Local Audience Ticket Sales
Garland 18% 25%
Plano 22% 20%
Richardson 19% 10%
The studies were conducted via anonymous polls on city council website for the first two, but the third involved in person surveys of visitors entering and exiting the theater? Why should the researcher question the numbers in the website studies?

A) age of the website studies
B) how the information was collected
C) inconsistency with how the information was collected
D) sufficiency of the information collected
E) purpose of the study

Answer 2

B

Question 3

Which of the following is not characteristic of secondary data?

A) observation data collected for the project at hand
B) might be relevant to the problem at hand
C) gathered previously for another purpose
D) (b) and (c)
E) All are characteristic of secondary data.

Answer 3

A

Question 4

A researcher does a study for a new Super Target store. The client wants to know which of five cities should be selected, and a specific location within the city of choice. The researcher investigates several sources of secondary data and finds the following: City Population Growth Growth in Retail Sales
Metropolis 5% 14%
Smallville 7% 13%
Gotham City 4% 8%
The Big Apple 2% 4%
The Big Easy 10% 17%
The researcher, based on the information at hand, recommends The Big Easy, and asks to be paid. Why should the client not pay the researcher?

A) the information not collected in a timely manner
B) not enough information provided
C) how the information was collected
D) what information was collected
E) none of the above

Question 5

Starbuck's keeps records of its customers' purchases via their Starbuck's reward card and provides them with a coupon for a free drink after five purchases. This is an example of__________.

A) an internal database
B) data mining
C) URL marketing
D) database marketing
E) none of the above

Question 6

Which of the following would be the least reliable source of secondary data? Data compiled by_______.

A) the Federal Government
B) a University Bureau of Business & Economic Research
C) a major trade association
D) city's Chamber of Commerce
E) All of the above are equally reliable.

Question 7

Which of the following is not an advantage of secondary data?

A) Secondary data can help clarify the research problem.
B) Secondary data may provide a solution to the problem.
C) Secondary data may provide the sample frame.
D) All of the above are advantages of secondary data.

Question 8

Which of the following would not be a source of internally generated secondary data?

A) reports to stockholders
B) government documents
C) product testing results
D) annual reports
E) all of the above are internally generated data

Question 9

Suppose a market researcher was consulting several sources of information about the best location for a high-end furniture store, and found the following: Percent of Luxury Purchases
2010 2011
City Census of Retailing Chamber of Commerce
Metropolis 5% 12%
Smallville 7% 17%
Gotham City 4% 10%
The Chamber studies were more recent, but how reliable is this new information? Why should the researcher question the numbers in the Chamber studies?

A) age of the Chamber studies
B) how the information was collected
C) consistency of the Chamber information with the Census
D) sufficiency of the information collected
E) purpose of the study

Question 10

USA Today conducted a poll which found that 84% of the persons responding to the poll indicated they had changed in some significant way since 9/11. This type of data would be considered which of the following?

A) internally generated secondary data
B) internally generated primary data
C) externally generated secondary data
D) externally generated primary data
E) none of the above

Question 11

A market researcher wants to know what improvements to make to restrooms in an upcoming redesign for a potential model aircraft. The researcher discovered a number of reports generated from customer complaints. Which of the following best describes the data?

A) Secondary data provided primary research alternatives
B) Secondary data may actually provide a solution to the problem
C) Secondary data may help to clarify the problem
D) Secondary data may alert the marketing research to potential problems or difficulties
E) a and b
F) c and d
G) None of the above

Question 12

What type of company could most easily compile a large internal database?

A) CPG, such as Kellogg's
B) service, such as Delta Airlines
C) Online, such as Yahoo
D) entertainment, such as Universal

Question 13

Which of the following is not a source of externally generated secondary data?

A) syndicated marketing research data
B) news media reports
C) Web-based reports
D) salesperson strategic intelligence reports
E) All of the above are externally generated data.

Question 14

When comparing the collection of secondary data with primary data, secondary data relative to primary data:

A) takes less time to collect.
B) costs less to collect.
C) is more convenient.
D) all of the above
E) none of the above

Question 15

A hotel chain wants to explore whether to add or reduce the number of franchises in a city. Where should the researcher look for secondary data first?

A) local visitor's bureau
B) travel magazines
C) competitor's upcoming news sites
D) none of the above

Question 16

Which of the following is not a limitation of secondary data?

A) takes more time to collect than primary data
B) may lack relevance for the present study
C) may not be available in the form needed for the present study
D) may not be accurate
E) All of the above are possible limitations of secondary data.

Question 17

A marketing researcher wants to know what percentage of consumers would purchase a car that has not yet been produced. She would likely have a hard time finding secondary data to address this due to __________.

A) lack of availability
B) lack of relevance
C) inaccuracy
D) insufficiency
E) none of the above

Question 18

Jiffy Lube keeps records of its customers and notifies them when it is time for an oil change. This is an example of _______.

A) an internal database
B) data mining
C) URL marketing
D) database marketing
E) none of the above

Question 19

Database marketing is sometimes referred to as ____________.

A) macromarketing
B) niche marketing
C) micromarketing
D) none of the above

Question 20

VISA considers updating its affiliate offerings to customers during the holiday season based on their buying habits over the last four years. This is an example of_________.

A) an internal database
B) data mining
C) URL marketing
D) database marketing
E) none of the above

Question 21

All of the following are advantages of secondary data except:

A) It can help clarify or redefine the problem during the exploratory research process.
B) It may provide a solution to the problem.
C) It may provide primary data research method alternatives.
D) It may provide the necessary background information and build credibility for the research report.
E) All of the above.

Question 22

Which of the following websites would include the most credible data?

A) U.S. Census Bureau
B) local newspaper's website
C) chamber of commerce website
D) an individual's homepage

Question 23

Amazon populates weekly email recommendations and offers up customer recommendations when a customer logs in. How does this form of data mining help the client?

A) purchasing habits dictate the only products a customer will buy
B) privacy isn't an issue if the customer shopped there before
C) behavioral targeting is the only form of marketing for an online retailer
D) focused promotion strategies are more effective

Question 24

Secondary data is more current than primary data.

Question 25

Secondary data can sometimes solve a marketing problem.

Question 26

All of the following show how data mining has uses in marketing except:

A) Customer Retention
B) Customer Requirements
C) Customer Abandonment
D) Market Basket Analysis

Question 27

Which question should be posed in determining the accuracy of secondary data?

A) What information was collected?
B) What was the purpose of the study?
C) Both a & b.
D) Neither a nor b.

Question 28

Which of the following is a characteristic of a decision support system (DSS)?

A) Interactive
B) Flexible
C) Discovery-oriented
D) Easy to learn and use
E) All of the above are characteristics

Question 29

A marketing database would be easiest to set up for which type of business?

A) traditional retailer
B) international retailer
C) online retailer
D) specialty retailer

Question 30

Which of the following is not a tool that is used in data mining?

A) probability sampling
B) qualitative analysis
C) multivariate statistics
D) descriptive statistics

Question 31

If you were interested in finding out how many people buy low-fat dog food for their dogs, you would most likely seek out a(n) _______.

A) newsgroup
B) congressional information service
C) American statistical indexer
D) marketing research aggregator
E) none of the above

Question 32

Marketresearch.com is an example of a(n) _______.

A) marketing research aggregator
B) search engine
C) URL
D) cookie
E) none of the above

Question 33

Market basket analysis is a common application of _______.

A) GIS systems
B) blogs
C) cookies
D) data mining

Question 34

When you are not sure who gathered secondary data, its __________may be questionable.

A) availability
B) relevance
C) accuracy
D) timeliness
E) none of the above

Question 35

Database marketing has come under scrutiny based on the idea that it may infringe on consumers' ___________.

A) right to know
B) right to choose
C) right to privacy
D) right to not be deceived

Question 36

Which of the following would not be part of a database that would be ripe for data mining?

A) electronic point-of-sale transactions
B) inventory records
C) online customer orders
D) customer demographics
E) All of the above could be part of the data mining process.

Question 37

Charming Charlie's, a lady's accessory store, wants to increase brand awareness of the latest season's colors. Their goal calls for increasing click through rate with their online advertising. The researcher needs to use________________ to achieve the company's goals.

A) behavioral targeting
B) data mining
C) database marketing
D) none of the above

Question 38

American Express regularly stuffs its monthly statements with combinations of products depending upon customer characteristics. This data mining application is referred to as _______.

A) customer retention
B) customer abandonment
C) market basket analysis
D) customer acquisition
E) none of the above

Question 39

Secondary data never solves a marketing problem.

Question 40

What type of secondary data source would most likely charge a fee to access its information?

A) government site
B) university site
C) market research aggregator site
D) search engine

Question 41

Secondary data is previously gathered data that might be relevant to the problem at hand.

Question 42

Marketing research aggregators repackage research that has already been conducted.

Question 43

Secondary data can identify potential problems.

Question 44

A company may already possess secondary information.

Question 45

Gathering secondary data is often an effective way to clarify a marketing problem.

Question 46

There is sometimes a conflict between a company's database marketing practices and the consumer's privacy.

Question 47

Traditionally, the starting point for the development of an internal database was information from salespersons call reports.

Question 48

Most consumers will never give up personal information to marketers.

Question 49

If secondary data shows a lack of consistency, the researcher must do their own research.

Question 50

Generally, the cost of collecting secondary data is about the same as the cost of collecting primary data.

Question 51

Secondary data can sometimes be used as a sample frame.

Question 52

Behavioral targeting uses online data only to determine a consumer's habits.

Question 53

A neural network is a computer program that mimics the processes of the human brain.

Question 54

Social media offers researchers more information than ever before for data mining.

Question 55

The U.S. Census is an example of a marketing research aggregator.

Question 56

Secondary data is available for nearly every research question.

Question 57

Statistical techniques are often utilized in data mining.

Question 58

Data mining facilitates customer acquisition by discovering purchasing patterns such that customized offerings can be made to prospects.

Question 59

Most relationships explored in data mining are intuitively obvious.

Question 60

A database could be created easier for a traditional store than for a Web retailer.

Question 61

Describe some of the important parts of an organization's information management system.

Question 62

A clothing store may want to begin offering clients a store charge account in order to increase data mining resources and customer retention.

Question 63

Describe the advantages to a market researcher using secondary data as a first step in their research process.

Question 64

Describe how a decision support system can support a company's decision maker.

Question 65

Describe a situation in which a marketing research aggregator could benefit a
client or marketing research supplier.

Question 66

Several marketing research firms are paying people to participate in online surveys, to track their click streams, or to evaluate Web sites.

Question 67

How can data mining assist the direct marketer that publishes a customized catalog for its customers?

Question 68

What are some of the advantages of secondary data? More specifically, what are the advantages of secondary data over primary data?

Question 69

An entrepreneur is contemplating establishing a funeral home in a small town. This person believes the demand for funeral home services is greater than the services being provided. Initially, the entrepreneur contacts a consultant and tells the consultant he needs a community survey to determine the total demand for funeral home services in the small town and surrounding communities. If you were the consultant, how would you react to the entrepreneur's request for a survey? What kind of counter proposal would you make?

Question 70

What disadvantages might the founders of Facebook have encountered if they tried to use secondary data when they began their venture?

Question 71

For example, a manager for Wal-Mart may have sufficient secondary data on
incomes, family sizes, number of competitors, and growth potential to determine in which of five Iowa towns Wal-Mart wishes to locate its next store. And if traffic counts exist for the selected town, primary data will have to be gathered to select a specific site for the store.