Question 1

A major concern with a retailer's using internal secondary data as a source of information is the ________.

Accepted Answer

Internal secondary data may focus on a specific time period, which can lead to misleading conclusions if the data is not representative of broader trends or current conditions.

Question 2

A retailer with 1,000 credit accounts has 50 with balances that are past due for over 45 days.How many accounts would be listed in the exception report?

Accepted Answer

The answer of A retailer with 1,000 credit accounts has...

Question 3

A chain shoe retailer with 100 stores determined that its monthly sales were 12 percent below expectations on the basis of its retail plan.Which represents a clear statement of a topic to be studied in the problem (issue)definition stage of the marketing research process in retailing?

Accepted Answer

Option D identifies a specific area of investigation - the actual versus planned sales on each major merchandise classification by store - which could help in identifying the areas where sales are underperforming and where improvements can be made. Options A, B, and C do not provide a focused area of investigation and may not provide as actionable insights as option D.

Question 4

A retailer determined that its monthly sales were 22 percent below expectations on the basis of its retail plan.Which stage of the marketing research process should the retailer be concerned with?

Accepted Answer

The retailer should be concerned with defining the problem since it has identified a discrepancy between actual sales and its retail plan. This suggests that there may be a problem with the initial assumptions or data used in developing the plan, which should be investigated further. The other stages (making recommendations, analyzing primary data exception reports, and implementing findings) are not relevant until the problem has been clearly defined.

Question 5

An advantage of electronic data interchange (EDI)is ________.

Accepted Answer

EDI allows for a standardized and automated process of exchanging business documents between retailers and suppliers, resulting in improved communication and efficiency in the supply chain. EDI may also lead to more accurate data due to the use of standardized formats and automated processes. However, it may not directly impact sales data transmission by employees.

Question 6

The data collection role of retailers in a distribution channel has been facilitated by ________.

Accepted Answer

The use of UPC (Universal Product Code) and scanners has revolutionized data collection in the retail industry. UPCs allow for unique identification of products, while scanners make it easy to record the sale of each item. This information can be used to track inventory levels, monitor sales trends, and make better business decisions. Simulation-based studies and personal surveys may also be useful data collection methods, but they are not specifically related to the role of retailers in distribution channels. Observation can be a helpful tool in market research, but it may not provide as much detailed data as UPCs and scanners.

Question 7

The Universal Product Code (UPC)is most widely used in conjunction with ________.

Accepted Answer

UPC codes are primarily used for inventory management purposes, allowing businesses to track product sales and stock levels with ease. While they may be used in consumer credit-card purchases, merchandise returns, and accounting recordkeeping, these would not be the primary use case for UPC codes.

Question 8

Which problem definition is most likely to require primary data collection?

Accepted Answer

To determine the average supermarket purchase by consumers on the basis of family size, primary data collection such as surveys or observational studies would be necessary to collect information directly from consumers. The other options can be answered using secondary data sources such as government statistics or surveys conducted by other organizations.

Question 9

The use of point-of-sale cash registers to study the number of products purchased in the average transaction illustrates ________.

Accepted Answer

Internal secondary data is data that is collected by a company from its own internal sources, such as sales records, inventory records, and customer databases. Point-of-sale cash registers are a source of internal secondary data because they collect data on the number of products purchased in each transaction.

Question 10

The major difference between marketing research in retailing and a retail information system is that ________.

Accepted Answer

The major difference between marketing research in retailing and a retail information system is that a retail information system is continuous, providing real-time data, while marketing research is more sporadic and designed for specific projects. The retail information system stores data, including inventory-related data, but marketing research may or may not include that type of data in its process.

Question 11

A frequent-shopper program is an example of ________.

Accepted Answer

A frequent-shopper program requires the management of customer information in a database, making it an example of database management. Electronic data interchange involves the electronic exchange of business documents between trading partners, market research involves collecting and analyzing data about customer preferences and behaviors, and data mining involves discovering patterns and relationships in large sets of data.

Question 12

An example of an exception report is ________.

Accepted Answer

An exception report is a report that highlights unusual or unexpected data or results. A report listing customers with overdue credit card balances would be an example of an exception report because it highlights a problem that needs to be addressed. Options B, C, and D are all regular reports that show standard business metrics and would not be considered exception reports.

Question 13

A retailer can generate data on sales by cash versus credit,the average sale,and number of items purchased on the average shopping trip by examining ________.

Accepted Answer

Sales invoices record information about each sale transaction including whether the purchase was made using cash or credit, the total value of the sale, and the number of items purchased.

Question 14

An example of primary data to determine the effect of a 10 percent price increase in sales is information gathered from ________.

Accepted Answer

A controlled experiment where the price is systematically varied and sales are monitored is the best way to determine the effect of a price increase on sales. This method would allow for the isolation of the effect of the price change on sales, minimizing the influence of other factors that may affect sales. The other options, such as trade association research or public data, may provide some information but are not as reliable or relevant to the specific scenario of a price increase on sales.

Question 15

The distinction between internal and external secondary data is based on the ________.

Accepted Answer

The distinction between internal and external secondary data is based on the source of the data, with internal data coming from within the firm and external data coming from outside the firm. The other options are not relevant to this distinction.

Question 16

The major distinction between primary and secondary data is that primary data are ________.

Accepted Answer

Primary data are generated specifically for the research project under study, while secondary data already exist and are collected for other purposes. Primary data may require more resources and time to collect, but they are customized to the research needs and objectives.

Question 17

A retailer has a database of past sales by season,by store,and by merchandise classification.This database is used as a guide in planning and control.The database is an example of ________.

Accepted Answer

The database of past sales is information that has been collected internally by the retailer, making it an example of internal secondary data.

Question 18

An example of secondary data relating to inventory levels held at each store is information gathered from ________.

Accepted Answer

Past management reports developed on the basis of point-of-sale equipment will provide information on inventory levels held at each store.

Question 19

Paperless communication between a retailer and its suppliers has been facilitated by ________.

Accepted Answer

UPC-based technology and EDI (electronic data interchange) allow for paperless communication between retailers and suppliers. UPC (universal product code) technology uses barcodes to track inventory and sales, while EDI allows for the exchange of business documents (such as orders and invoices) electronically. Retail information systems, exception reports, and database management may all be components of a retailer's operations, but they do not directly facilitate paperless communication with suppliers.

Question 20

A retailer uses sophisticated software to evaluate large quantities to uncover emerging trends.This illustrates ________.

Accepted Answer

The use of sophisticated software to evaluate large quantities to uncover emerging trends is an example of data mining.

Quiz 8: Information Gathering and Processing in Retailing