Deck 8: Primary Data Collection: Experimentation and Test Markets

Question 1

Research that is designed to determine whether a change in one variable likely caused change in another variable is referred to as _______________.
a. exploratory research
b. causal research
c. descriptive research
d. none of the above

Answer 1

B
Difficulty

Question 2

Which of the following is the main disadvantage of laboratory experiments?

A) Exploratory research is enhanced.
B) The laboratory setting may not be a good representation of the real-world setting.
C) Concomitant variation is not possible.
D) Elimination of causal factors is increased.
E) none of the above

Answer 2

B

Question 3

In an experiment, which of the following variables would probably not be the dependent variable?

A) total sales
B) market share
C) advertising
D) percent increase in market penetration
E) All of the above would probably be dependent variables.

Answer 3

C

Question 4

The "treatment" is also referred to as which of the following?

A) increase in sales
B) change in market share
C) gross margin
D) independent variable
E) none of the above

Question 5

An experiment is designed to test how consumers go about choosing life insurance policies. If this experiment uses a sample of college students, it would likely not have _______.

A) internal validity
B) extraneous validity
C) external validity
D) laboratory validity

Question 6

In early December, sales reports show a spike in orders for G.I. Joe toys. The company reduced the cost of the toys in the last ten shopping days before Christmas. Why can't they say that the decreased price caused the spike in orders for the toys?
a. concomitant variation
b. appropriate time order of occurrence
c. laboratory experiment
d. none of the above

Question 7

Test markets are which of the following type of experiment?

A) controlled experiment
B) exploratory experiment
C) field experiment
D) laboratory experiment
E) none of the above

Question 8

In an experiment where the marketer is interested in finding out the impact of shelf position on a product's sales, the shelf position is considered the __________variable.

A) correlation
B) dependent
C) independent
D) concomitant
E) none of the above

Question 9

Which of the following has the highest degree of external validity?

A) field experiment
B) laboratory experiment
C) concomitant experiment
D) none of the above

Question 10

Suppose a manufacturer wants to determine whether or not changing the packaging of his/her major product will bring about a change in sales. Which type of research will be most appropriate?

A) causal research
B) exploratory research
C) descriptive research
D) qualitative research
E) none of the above

Question 11

Experiments are especially effective in showing causality because they are able to do what?

A) show correlation
B) demonstrate concomitant variation
C) demonstrate an appropriate time order of occurrence
D) eliminate other possible causal factors
E) none of the above

Question 12

Which of the following is not a precondition for causation?

A) the effect variable
B) correlation
C) appropriate time order of occurrence
D) elimination of other possible causal factors
E) All of the above are preconditions for causation.

Question 13

Concomitant variation occurs when 2 variables are _______.

A) causally related
B) experimentally related
C) correlated
D) none of the above

Question 14

In order to show that variable A causes variable B, A must occur:

A) after B.
B) before B.
C) simultaneously with B.
D) none of the above

Question 15

If the researcher can show that the experimental or treatment variable actually produced the differences observed in the dependent variable, then the experiment can be said to be which of the following?

A) internally valid
B) extraneously valid
C) externally valid
D) laboratory valid
E) none of the above

Question 16

Which of the following types of research allows the researcher to show causation?

A) survey
B) observation
C) experiment
D) none of the above

Question 17

To demonstrate that an increase in advertising causes a sales increase, one must be able to show that the increase in advertising occurred before the increase in sales. Which of the preconditions for causation is being illustrated?

A) correlation
B) appropriate time order of occurrence
C) elimination of all possible causal factors
D) elimination the effects of the independent variable
E) none of the above

Question 18

To demonstrate causation, one must be able to show________________.

A) Concomitant variation
B) Appropriate time order of occurrence
C) Elimination of other possible causal factors
D) All of the above
E) None of the above

Question 19

A statistical positive or inverse relationship between two variables is __________.

A) concomitant variation
B) causal research
C) internal validity
D) instrument variation
E) none of the above

Question 20

An analysis of company financial records shows that in every year that the company increased its advertising expenditures, sales increased. What can you say about the relationship between the two factors/variables?

A) Advertising expenditure and sales exhibited concomitant variation.
B) Increasing advertising expenditures led to increased sales.
C) Increased sales led to an increase in advertising expenditures.
D) Advertising and sales are inversely related.
E) none of the above

Question 21

A _____________ is a by-product of the research process itself.

A) Testing Effect
B) Research Effect
C) Result
D) Decision

Question 22

A market research project is engaged to determine whether price points for Apple's iPads should change with the release of the new model. The researcher decides to expose control groups to three separate prices and records the sales made at each of those price points. Which variable in this scenario is the treatment variable?

A) control group
B) product bias
C) price
D) none of the above

Question 23

Experimental research is often referred to as causal research.

Question 24

_____________ occur(s) when buyers from outside the test area come into the area to purchase the product being tested, thereby distorting the results of the experiment.

A) Most accurate results
B) Bias
C) Contamination
D) None of the above

Question 25

__________ refers to changes in subjects throughout the course of the experiment that are a function of time, such as getting older, tiring, etc.

A) Maturation
B) History
C) Selection bias
D) Mortality
F) none of the above

Question 26

When respondents drop out of an experiment before it is completed, this is referred to as ________________.

A) maturation
B) history
C) instrument variation
D) mortality
E) selection bias

Question 27

Both surveys and experiments can show causation between two variables.

Question 28

Which of the following is often the most important data produced by a test market?

A) purchase data
B) awareness data
C) competitive response
D) source of sales
E) none of the above

Question 29

It is easy to show causality between two variables.

Question 30

Students performing better on the SAT the second time they take it are examples of______________.

A) regression to the mean
B) selection bias
C) interactive testing effect
D) main testing effect

Question 31

__________ refers to the intervention between the beginning and end of an experiment, involving outside variables or events that might change the dependent variable.

A) Maturation
B) History
C) Selection bias
D) Mortality
E) none of the above

Question 32

Which of the following has the highest degree of internal validity?

A) field experiment
B) laboratory experiment
C) concomitant experiment
D) none of the above

Question 33

Which of the following is not a benefit of test marketing?

A) estimate of market potential
B) exposure of the new product to the competition
C) identification of weak areas of the marketing mix
D) provide management with strategic information about product performance
E) All of the above are benefits of test marketing.

Question 34

When measures of recall and brand attitudes are only taken after an advertising campaign is implemented, this is an example of a:

A) one-shot case study design.
B) one group pretest and posttest design.
C) static group comparison design.
D) Solomon four-group design.
E) none of the above

Question 35

Suppose during an experiment, a researcher used several observers to record the results. The results of the experiment were perplexing to the researcher. In such a case one might expect ___________ to have occurred, distorting the results of the experiment.

A) maturation
B) history
C) instrument variation
D) mortality
E) selection bias

Question 36

When designing a test market, the marketer is often interested in finding out whether a new product's sales will take away sales from existing products. What is this referred to as?

A) controlled test marketing
B) electronic test marketing
C) cannibalization
D) interrupted time series
E) none of the above

Question 37

The three types of control discussed when dealing with extraneous variables are:

A) Physical, Mental, Statistical
B) Physical, Design, Statistical
C) Design, Mental, Statistical
D) Physical, Emotional, Design

Question 38

This true experimental design involves random assignment of subjects to experimental and control groups, but no premeasurement of the dependent variable.
a. Solomon four-group design
b. before and after with control group
c. after only with control group
d. one group pretest and posttest design
e. none of the above
Res: C

Question 39

If experimental test groups for a reading enhancement program are standard Kindergarteners at a typical public school, but the program is designed for students learning English as a second language, what issue might you take with the experiment?

A) mortality
B) instrument variation
C) maturation
D) selection bias

Question 40

If extraneous factors in an experiment can be identified and measured, __________ can be used to control these factors.

A) randomization
B) physical control
C) design control
D) statistical control
E) none of the above

Question 41

The extent to which the results of an experiment can be generalized to represent what would happen in a population is referred to as internal validity.

Question 42

Laboratory experiments tend to produce higher internal validity than field experiments.

Question 43

Laboratory experiments are usually conducted in uncontrolled settings.

Question 44

A test market generally occurs after a national rollout of a new product.

Question 45

Test markets offer at least two important benefits to the firm conducting the test. First and foremost, the test should identify weaknesses of the product and the proposed marketing strategy for the product and give management an opportunity to correct any weaknesses.

Question 46

Test marketing is a common form of experimentation used by marketing researchers.

Question 47

Two variables must be correlated to be causally related.

Question 48

Correlation is proof of causation.

Question 49

Pre-experimental designs offer little or no control over extraneous factors.

Question 50

Field experiments in marketing are conducted in the actual marketplace.

Question 51

The costs of producing a product for a test market are comparable to the cost associated with a national launch of the new product.

Question 52

The results of a field experiment are often impacted by competitors' actions.

Question 53

Selection bias generally is minimized by randomization of subjects to test groups.

Question 54

The extent to which a new product takes away from the innovative company's present business is referred to as cannibalization.

Question 55

Changes in competitive factors must be considered in causality.

Question 56

Because laboratory experiments can control extraneous effects, the researcher's ability to infer that the independent variable is causing change in the dependent variable is enhanced.

Question 57

Cost comparisons of field experiments, surveys, and observation-based research are equitable.

Question 58

Full commercialization of a new product is generally less expensive than conducting a test market.

Question 59

Quasi-experiments are studies in which the researcher lacks complete control over the scheduling of treatments or must assign respondents to treatments in a nonrandom manner.

Question 60

Sales are a common dependent variable in marketing experiments.

Question 61

Discuss the characteristics that a city should possess to make it a good test market for introducing a new wine label.

Question 62

Under what conditions can the results of a test market be used to forecast sales for a region?

Question 63

The first step in a test market study is to select a basic approach.

Question 64

Marketing Research firms often have exclusive rights to doing interviews in shopping malls they have contracts with. They also often maintain facilities within the mall. Such firms might set up an artificial store within the mall to test advertising or sales promotion associated with such a store. Discuss the type of experiment being conducted if the marketing research firm offers an incentive to persons in the mall, such as those participating in mall intercept interviews, who would be observed as they interact with the promotional materials in artificial store.

Question 65

The first step in any test market study must be to define the objective.

Question 66

Test marketing sounds like a natural step in the progression of a product through the product development process. However, there are some risks associated with conducting test markets. Hence, what are the 4 factors that should be taken into account in determining whether or not to conduct a test market?

Question 67

Simulated Test markets can normally be conducted more quickly, at lower cost, and produce highly predictive results.

Question 68

Test market studies are designed to provide information on estimates of market share and volume.

Question 69

How would you respond to the following statement: "Advertising and sales are almost perfectly correlated, as when more is spent on advertising, sales go up, and vice-versa. Surely our advertising expenditures are 'causing' sales to rise."

Question 70

Your client is interested in determining which of two Internet banner ads is more effective. Design a field experiment. Be sure to identify the independent and dependent variables.

Question 71

Sony has spent millions developing a highly interactive digital tablet. They are preparing for launch, but they want to roll it out competitively so they have to select the right test market. What do you have to take into account before you recommend the target markets?