Deck 7: Marketing Research and Market Information

Question 1

To do the best job of gathering primary data, a marketing researcher integrate the use of the survey, the observation, and the experimentation methods.

Answer 1

False

Question 2

Angela received a telephone call last night from a telemarketer who said she was gathering research information on people's feelings about how well the local welfare system cares for the needy in their community. After she answered the questions, Angela was asked if she wanted to improve the plight of the poor in her community by contributing to People United Against Poverty, an organization that holds the same views as Angela. The telemarketer who called Angela engaged in _____.

Answer 2

The telemarketer who called Angela engaged in push polling.

Question 3

Marketing research does not play a major role in the management processes of planning, implementation, and evaluation.

Answer 3

False

Question 4

The first step in the marketing research process is to conduct a situation analysis.

Question 5

The marketing information system (MkIS) provides a continuous, scheduled flow of standardized reports to managers.

Question 6

If speed is important when conducting a survey, the telephone survey is the most appropriate method to use.

Question 7

The observation method of gathering research would be most appropriate if the purpose of the research is to determine consumer reaction to two different commercials for the same product.

Question 8

A _____ sample is selected in such a way that every member of the universe has an equal chance of being selected.

Question 9

Convenience samples are easier to get than random samples.

Question 10

One of the major advantages of using the mail survey is its lack of interviewer bias.

Question 11

Often the results of a marketing research project cannot be measured in terms of direct benefits to the organization, and this fact leads to some managers assuming the usefulness of marketing research is limited.

Question 12

Because single-source data have not proven to be the ultimate measure of advertising effectiveness, they are no longer used.

Question 13

Once a market researcher has analyzed the data and presented his or her report, the marketing research project is over.

Question 14

_____ _____ is the process of gathering and analyzing publicly available information about the activities and plans of competitors.

Question 15

Many managers do not treat marketing research as a continuous process. Fill-In

Question 16

In most marketing research projects, the informal investigation is ignored because of its redundancy.

Question 17

The _____ method of marketing research would be the easiest way for the highway department to determine if drivers are using the new left-turn lane on Highway 92.

Question 18

A decision support system produces usable information faster than a marketing information system.

Question 19

Global marketing information systems (MkISs) are as easy to establish and work with as domestic MkISs.

Question 20

A question that asks if you like the efficiency and appearance of a day care center employee would be a poor survey question.

Question 21

The purpose of a _____ _____, a form of personal interview with 4 to 10 people, is to generate concepts and hypotheses that can be tested on large, representative samples of people.

Question 22

Salespeople are the primary source of competitive intelligence data.

Question 23

The producers of a reality series were eager to find out how its audience reacted to a newspaper story that informed people its participants were actors and not the everyday people they pretended to be. The quickest method to conduct the survey would be to use a _____ survey.

Question 24

The federal government, The Wall Street Journal, and annual stockholders' reports are all good examples of _____ data.

Question 25

Interviews with the company's largest clients about distribution issues are one way of gathering primary data about the efficiency of product distribution.

Question 26

Researchers should check the source of secondary data, why they were gathered, and the definitions of key terms used in the gathering process before relying on secondary data.

Question 27

An _____ is the method of gathering primary data in which the researcher is able to observe the results of changing one variable in a situation while holding all other conditions constant.

Question 28

There is a potential for legal and ethical abuses in gathering competitive intelligence.

Question 29

There is a significant difference between the way a manager uses a marketing information system and the way he or she uses a decision support system.

Question 30

Interviews that Procter & Gamble, the manufacturer of Crisco shortening, conducted with blue-ribbon-winning cooks at various local and state fairs about how they used shortening, are examples of _____ data for P&G.

Question 31

The _____ _____ is a background investigation that involves obtaining information about the company and its business environment by means of library research and extensive interviewing of company officials.

Question 32

A _____ _____ _____ is a procedure that allows a manager to interact with data and methods of analysis to gather, analyze, and interpret information.

Question 33

A business directory, a report from the local Chamber of Commerce, bulletins from the Small Business Administration, and the monthly reports of a company's sales staff are all sources of secondary data.

Question 34

_____ _____ is the development, interpretation, and communication of decision-oriented information to be used in the strategic marketing process.

Question 35

When Conally interviewed the company's salespeople and its managers, he gathered information about the organization's financial history and its macroenvironment. He was probably conducting a situation analysis.

Question 36

The Direct Marketing Association believes that direct marketing sales are growing rapidly in Mexico. To test this _____, it could use market research.

A) situation analysis
B) socioeconomic audit
C) marketing audit
D) research hypothesis
E) competitive intelligence

Question 37

The most frequent concern expressed by researchers who use Internet surveys is the:

A) absence of one-to-one interview capabilities.
B) distracting multimedia nature of the Internet.
C) high probability of a sampling error.
D) high costs.
E) bias against technology intrusion by users of the Internet.

Question 38

The telemarketer who called Amy last night began the phone conversation by asking Amy if she minded answering certain questions about her family's vacation for marketing research. After Amy answered questions about how much her family usually spends on vacations and what destination sites they like best, the telemarketer tried to sell Amy a timeshare for a condominium in Branson, Missouri. The telemarketer engaged in:

A) sugging.
B) illicit marketing.
C) a violation of the Robinson-Patman Act.
D) frugging.
E) zipping.

Question 39

Prior to offering its brand of insurance to the Canadian market, DirectProtect conducted several face-to-face interviews with groups of eight to determine how Canadians feel about home and auto insurance. DirectProtect used:

A) ethnographic interviews.
B) focus groups.
C) the experimental method.
D) the centralized survey method.
E) shopping mall intercepts.

Question 40

How does a decision support system (DSS) differ from a marketing information system (MkIS)?

A) An MkIS is faster and more flexible than a DSS.
B) A DSS can be used to analyze data; an MkIS cannot.
C) A DSS allows the manager to interact more with the data.
D) An MkIS relies on information, and a DSS uses data.
E) A DSS is primarily used by small- and medium-sized businesses, and an MkIS is used by large corporations.

Question 41

The value and success of a marketing information system (MkIS) depends on:

A) the nature and quality of the data available to it.
B) the type of information identified as important by marketing managers.
C) the way the data are processed.
D) the working relationship between the operators of the MkIS and the managers who use its output.
E) all of the above.

Question 42

Avondale Berries wants to determine if consumers in the Southeast would buy a line of Berry-Hot preserves, which combines fruits and garlic. A marketing research project used to determine the answer to this type of question is called a:

A) correlation analysis.
B) concept test.
C) customer satisfaction study.
D) copy test.
E) market-share analysis.

Question 43

One reason a researcher might become dissatisfied with the survey method of gathering data is:

A) the potential for errors in questionnaires and interviews.
B) the difficulty involved in defining the key terms used in the survey.
C) the lead time required to get the necessary permits.
D) the need to get responses from everyone who has an opinion on the marketing research topic.
E) none of the above.

Question 44

Obide Services is a company that gathers information that is useful to businesses in the sports marketing industry. It markets a monthly report that provides a wealth of timely information including attendance figures for specific events, prices charged, and ad revenue generated. Obide Services is an example of a(n):

A) database service.
B) syndicated service.
C) external marketing information provider.
D) competitive intelligence provider.
E) external decision support system.

Question 45

When experiments are conducted in a laboratory setting, researchers:

A) are able to use data gathered to create research hypotheses.
B) are able to gather information on what happens, but not on why it happens.
C) are able to control all of the marketing variables that may influence the one(s) being tested.
D) duplicate what the participants will find in real-world settings.
E) can collect secondary data.

Question 46

Baye and Kimberly went to the mall to buy a baby bed. Before they left the mall center area, an individual confronted them with a clipboard. The individual wanted to ask them some questions about their perceptions of the smells of various fabric softeners. This method of data gathering is an example of a(n):

A) walking interview.
B) focus group.
C) experimental method.
D) centralized survey method.
E) mall intercept.

Question 47

Even though Robert has presented his report on how parents choose which diapers to buy for their infants to the firm's project manager, his job is not finished. He must now:

A) determine whether his results and recommendations are being used.
B) identify other problem areas for study.
C) posttest his survey questionnaires to make sure they were valid.
D) review the primary data collected to see that they were collected properly.
E) reassess all available secondary data to see if anything new has been discovered.

Question 48

The Adam's Mark Inn hotel chain is researching how well its hotel staff treats minority guests. It has hired minority couples to pose as guests to monitor the way the hotel staff treats them. After a stay at the hotel, the couple will provide the hotel chain with specific information on their treatment. This sort of information would be gathered during the _____ stage of marketing research.

A) object definition
B) informal investigation
C) situation analysis
D) formal investigation plan
E) data analysis

Question 49

Which of the following describes an ethical issues relating to the collection and use of research information?

A) At what point does data collection become an invasion of privacy?
B) Does a company have the right to sell the information it gathers in the process of conducting transactions?
C) At what point is extracting information from a person under False or misleading pretenses inappropriate?
D) Is it ethical to sell under the guise of gathering marketing research?
E) All of the above are examples of ethical issues that marketers must evaluate.

Question 50

Research Dimension is a Canadian market research company that has visited the homes of people to examine how their closets were arranged, what they kept under the bathroom sink, and how they cleaned their kitchen cabinets. Research Dimension was engaged in _____ research.

A) observation
B) focus group
C) experimental
D) data mining
E) survey

Question 51

Which of the following statements describes a potential survey limitation?

A) There are numerous opportunities for errors in the survey construction.
B) Interviewer bias can make the survey results unreliable.
C) Surveys can be expensive and time-consuming.
D) Desired survey respondents may refuse to participate.
E) All of the above statements describe a potential survey limitation.

Question 52

Ordinarily, secondary data can be gathered _____ than primary data.

A) much faster but more expensively
B) more efficiently but at a greater cost
C) less quickly and less expensively
D) much faster and less expensively
E) less accurately and less expensively

Question 53

How would the observation method of gathering marketing research data be a disadvantage to a decision maker?

A) It lacks accuracy.
B) There is no way to keep test results secret.
C) It depends on the use of open-ended questions.
D) It produces no secondary data.
E) None of the above describes a disadvantage inherent in the observation method.

Question 54

A company that wanted to know whether the average person could assemble its entertainment center cabinet in less than an hour without any stress would most likely use:

A) a mail survey.
B) mechanical observation.
C) a telephone survey.
D) personal observation.
E) the experimental method.

Question 55

A department store manager who wants to do market research on where the majority of customers go when they first enter the store and what route they take while shopping would most likely use:

A) a mail survey.
B) secondary data.
C) the experimental method.
D) a telephone survey.
E) the observation method.

Question 56

Ipsos-Reid, a Canadian marketing research company, conducted research for CNN in which it gathered opinions from respondents in 30 countries regarding America's war on terrorism. Which research methodology did Ipsos-Reid most likely use to gather this time-sensitive information?

A) observation
B) field experiments
C) laboratory experiments
D) face-to-face interviews
E) telephone interviews

Question 57

_____ are original data gathered specifically for the project at hand.

A) Formal data
B) Primary data
C) Research hypotheses
D) Secondary data
E) Source analyses

Question 58

Reverse engineering is a technique used in:

A) informal investigations.
B) data mining.
C) competitive intelligence.
D) environmental auditing.
E) a SWOT analysis.

Question 59

The observation method of gathering research is most effective for:

A) deciding whether to package dog food in a green or a brown bag.
B) proving that the ad copy for a all-natural baby food communicated effectively with its target market.
C) identifying the target markets for an air refresher.
D) determining how people act while waiting in a bank line.
E) determining the potential success rate of cellular phone weighing just three ounces.

Question 60

A syndicated service:

A) produces information on an as-needed basis for its clients.
B) gathers primary data for its clients.
C) will not sell information to your competitors, if you buy its services first.
D) produces and sells regularly scheduled reports that are developed with no particular client in mind.
E) is typically a division found within the marketing research department of large companies.

Question 61

For years, Amazon has collected detailed information about what its customers buy, considered buying, browsed for but never bought, recommended to others, and even wished someone would buy for them. All of this information is contained in a(n):

A) data mine
B) data warehouse
C) information compiler
D) research initiative
E) information distribution center

Question 62

A mall intercept is an example of:

A) the observation method of gathering data.
B) secondary data.
C) the experimental method of gathering data.
D) the survey method of gathering data.
E) none of the above.

Question 63

Which survey method is most likely to produce the most information?

A) mail
B) Internet
C) face-to-face
D) mail.
E) observation

Question 64

The observation method of gathering marketing research data benefits a decision maker by:

A) providing accurate information about behavior.
B) being an excellent source of secondary data.
C) its ability to explain why certain actions occur.
D) the speed with which the data can be gathered.
E) its ability to provide motivational information.

Question 65

For which of the following situations is the observation method of gathering research data best suited?

A) learning how much time people spend selecting bread in the store
B) deciding whether to run an ad for a new cleaning product in Good Housekeeping magazine or in local newspapers
C) finding out what people who spend their vacations at home do with their time
D) estimating the effect of a product modification on sales
E) all of the above

Question 66

Christopher Nantz sells JBL installed sound speaker systems for stadiums, sports arenas, and large coliseums. He tries to attend events in venues that do not use his company's sound systems. He listens for static in the systems and notes if there are any dead areas where the sound is not audible. He has even asked to see the sound systems and been allowed to do so. Nantz is engaged in:

A) a formal investigation.
B) data capturing.
C) gathering competitive intelligence.
D) environmental auditing.
E) a SWOT analysis.

Question 67

In a marketing research project to determine if a new line of hair coloring products is cannibalizing another brand made by the same manufacturer, which of the following would be a source of information for an informal investigation?

A) consumers who have used either brand
B) competitors' ads for similar products
C) retailers who stock the hair coloring products
D) the ad agencies that prepare the ad campaigns for both products
E) all of the above

Question 68

Fairytale Brownies included a survey card on the back of a postage-paid reply card in each package of its brownies. The bakery asked open-ended questions. What potential problem might the use of open-ended questions create?

A) information overload
B) a lower level of cooperation from brownie buyers
C) more people would respond than needed
D) sample respondents would think the questions too easy
E) "yes" or "no" questions do not show exact motivations or feelings

Question 69

One of the biggest mistakes made in marketing research is to:

A) use a mail survey without first doing focus group interviews.
B) hire an outside agency to gather information.
C) collect primary data before exhausting the information available from secondary sources.
D) wait to begin the search for primary data until after all secondary data have been gathered.
E) refine the problem definition.

Question 70

Through _____, the Chicago Symphony Orchestra hopes to identify key segmentation characteristics of its most loyal and dedicated patrons from its database of 130,000 non-corporate patrons.

A) prospecting
B) investigative data handing
C) inventory analysis
D) attribute manipulation
E) data mining

Question 71

For every new product that Hershey Foods Corp. introduces, the company has tested, on average, 100 product concepts. Participants in the testing of product concepts are shown a rough drawing of a proposed product and given a list of possible features and benefits. To stay competitive in today's market, Hershey uses Internet surveys so it can have the results of the concept testing quickly. Which of the following statements describes its methodology?

A) Hershey is using a random sample.
B) Collecting the data will be simpler for Hershey than for other companies using other survey techniques.
C) Questionnaire design is unimportant.
D) The multimedia nature of the Internet will bias survey results.
E) Hershey is using a convenience sample.

Question 72

Why don't all marketing researchers use test marketing?

A) It's expensive.
B) The researcher is unable to control the situation.
C) It is time-intensive.
D) it is impossible to keep the test a secret from competitors.
E) All of the above describe limitations of test marketing.

Question 73

_____ is a good example of a field experiment.

A) A focus group
B) A laboratory test
C) Test marketing
D) A mall intercept
E) A mail survey

Question 74

Iridium, the communications company, was unsuccessful in marketing its global wireless phone service. Which of the following statements describe ways Iridium could have benefited from the use of marketing research?

A) Marketing research should have provided insight into how well the product functioned.
B) Iridium's marketers had to learn how to operate in both domestic and foreign markets, and marketing . research could have made this process easier.
C) Marketing research could have prevented Iridium from making mistakes associated with being the market pioneer.
D) The lack of timely, adequate information about customers in terms of price they were willing to pay . could have prevented lost business.
E) All of the above are reasons why Iridium's marketers needed to engage in marketing research.

Question 75

A marketing information system (MkIS) has the ability to:

A) replace managerial judgment and experience.
B) determine what information a manager really needs for decision-making.
C) analyze data using mathematical models that represent the real world.
D) tell with certainty if a new product will succeed.
E) do all of the above.

Question 76

Opponents to RFID tags are concerned that the tags could be used to track products even after they left the store. The RFID critics are expressing concern about the ethical issue of:

A) consumer privacy
B) green marketing
C) technology overuse
D) database mining
E) reciprocity

Question 77

Gold Love Tokens is a company that manufactures and distributes roses, leaves, and other types of flowers that have been dipped in 24K gold. Sales for the last three quarters have been stagnant. The company's owner believes marketing research will indicate how the company can get its sales growing once again. During the situation analysis part of the research, she should use her collection of trade journals and a trip to the library to look:

A) up the history of gold-dipped products.
B) at the type of products being produced by the competition.
C) at current fads to find new ideas for product items.
D) at sales in the gift industry as a whole.
E) at all of the above.

Question 78

Why are convenience samples commonly used in marketing research?

A) Sample size needed is easier to calculate for a convenience sample.
B) Not all research is done with the objective of generalizing to a universe.
C) Convenience samples are easier to understand than random samples.
D) People prefer to participate in a convenience sample.
E) Everyone has a better chance of being surveyed in a convenience sample.

Question 79

During a(n) _____, market researchers gather information from people outside the company, such as middlemen, competitors, and advertising agencies.

A) situation analysis
B) research hypothesis
C) test proposition
D) scientific method
E) informal investigation

Question 80

Which of the following would be a source of primary data in a marketing research study being done by a researcher for a manufacturer of a pesticide?

A) a safety report on pesticide chemicals prepared by the Environmental Protection Agency
B) past sales records from the pesticide manufacturer
C) observations by the researchers of how customers select pesticides
D) Census of Manufacturers
E) annual reports from a major competitor