Question 1

Because all products eventually end up in the consumer market,there is no such thing as industrial test markets.

Accepted Answer

Industrial test markets do exist, as businesses often test products and marketing strategies on a smaller scale in specific industries or regions before releasing them to a wider consumer market.

Question 2

Mack Trucks decides to conduct an experiment to determine if a new oil additive actually results in increased fuel efficiency.They find a lab that contains 50 engines that are exactly alike.Mack randomly divides the 50 engines into two groups - an experimental group (which has the new oil additive)and the control group (which does not have the new oil additive).They pour the exact same amount of fuel into all 50 engines and time how long each engine runs.Afterward,they average the length of time run by the 25 engines in the control group versus the 25 engines in the experimental group.Which of the following represents the experimental design in this study?

Accepted Answer

The design involves random assignment (R) of engines to two groups, measurement before (O1, O3) and after (O2, O4) the treatment (X), which is the oil additive.

Question 3

Your university decides it will create a panel of consumers in your local area.The purpose of the panel is to report the local population's attitudes,preferences,and intentions on a variety of local issues.In the first administration of the panel,the questions asked for voter preferences for an upcoming local election.In the second administration,questions submitted to the panel asked for their attitudes about the quality of the drinking water and air in your area.Which type of panel has your university created?

Accepted Answer

The university has created a discontinuous panel because they are selecting a new group of consumers for each administration of the panel. The panel is being created to report the local population's attitudes, preferences, and intentions on a variety of local issues. The fact that the panel is not continuous and is only used for specific issues indicates that it is a discontinuous panel.

Question 4

Although laboratory experiments allow for the control of extraneous variables,they cost more and take more time than do field experiments.

Accepted Answer

Laboratory experiments are generally less expensive and quicker to conduct than field experiments because they are conducted in a controlled environment where variables can be easily manipulated and measured.

Question 5

Simulated test markets are conducted on computers without any consumer input.

Accepted Answer

Simulated test markets are conducted with real consumers but in a controlled environment that simulates the market conditions. This allows companies to test their products and marketing strategies before launching them in the actual market.

Question 6

Test marketing is the phrase commonly used to indicate an experiment,study,or test that is conducted in a field setting.

Accepted Answer

Test marketing is indeed an experiment, study or test conducted in a field setting.

Question 7

Dirt Devil vacuum cleaning company is interested in knowing if a proposed advertising message will be effective in generating interest in purchasing their portable vacuum cleaner.They contact marketing research firm,InsightExpress,which has a service that tests proposed ad copy with consumers they have recruited to participate.Copies of the ad are prepared and are shown to several hundred consumers online.Consumers evaluate the ad,and the results are given to Dirt Devil.This is an example of which of the following?

Accepted Answer

This is an example of cross-sectional research because it involves collecting data at a single point in time from a sample of consumers to evaluate the effectiveness of the ad.

Question 8

A city that is geographically isolated may be considered a good test market city.

Accepted Answer

A geographically isolated city can serve as a good test market because it is relatively self-contained and may have unique consumer behaviors and preferences that can be studied and analyzed. Additionally, since it is not a major metropolitan area, it may also be less expensive to conduct market research in such a city.

Question 9

Test markets do not yield infallible results.Sometimes test markets lead to the wrong decision.

Accepted Answer

Test markets are not foolproof and can sometimes provide misleading results that can lead to the wrong decision. Factors such as the sample size, demographic variations, and external factors can influence the effectiveness of test markets.

Question 10

Electronic test markets require consumers,who are members of a panel,to carry identification cards.

Accepted Answer

Electronic test markets need to have identification cards to authenticate the eligibility of the panel members.

Question 11

The primary advantage of laboratory experiments is that they allow the researcher to control the effects of extraneous variables.

Accepted Answer

Laboratory experiments allow the researcher to manipulate and control variables, which reduces the impact of extraneous variables and increases the internal validity of the study.

Question 12

A firm selects a test market city that it believes will produce very favorable results because it knows the media will publicize the "success" of the new test product.This may be considered stupid,but it would not be considered unethical.

Accepted Answer

Selecting a test market city to manipulate results and public perception is considered unethical because it involves deceit and misrepresentation of the product's success.

Question 13

TechTrician,Inc.makes a major breakthrough in cell phone technology and design.Their research and development department has created advanced micro-circuitry that is one hundred times more sensitive to cell signals than conventional cell phones.This means that there is almost never a break in cell phone signals even when the caller is several miles from what would be considered "in range" for conventional phones.The problem is that the new technology adds about $100 to the cost of the phone.TechTrician,Inc.must spend a considerable amount of funds to retool in order to produce the new phones.They decide to test market the new phones.The company is located in Los Angeles and several executives believe it would be less costly to run the test market in their own city.However,Bob Brobst,one of the marketing managers,has argued for running at least two test markets;one in Phoenix,AZ,and one in Tulsa,OK.What criterion for test market selection is Bob Brobst using?

Accepted Answer

Bob Brobst is considering the degree of isolation, as Phoenix and Tulsa are geographically distinct from Los Angeles, allowing for a more controlled and isolated test of the new phone's performance in different environments.

Question 14

The primary advantage of field experiments is that they are conducted in non-naturalistic settings,which allow for tightly controlling extraneous variables.

Accepted Answer

The statement is incorrect. The primary advantage of field experiments is that they are conducted in naturalistic settings, allowing for greater external validity and generalizability of findings. While extraneous variables may not be as tightly controlled as in laboratory settings, the use of random assignment and manipulation of independent variables can still establish causality.

Question 15

Which of the following best describes the logic used in the before-after with control group experimental design that allows this to be a true experimental design?

Accepted Answer

The before-after with control group experimental design is a true experimental design as it allows us to isolate the change in the dependent variable that is solely due to the independent variable. The experimental group change (O2 - O1) contains the change in the dependent variable due to both the independent variable and extraneous variables. When we subtract from this the control group (O4 - O3), which is the change due to the extraneous variables, we are left with the change in the dependent variable due solely to the independent variable. Therefore, choice C is the best answer.

Question 16

There is only one use of test markets: to determine the sales potential for a new product or service.

Accepted Answer

While determining sales potential is a common use for test markets, it is not the only use. Other uses include gathering consumer feedback and identifying potential issues or improvements with the product or service.

Quiz 4: Research Design