Question 1

If an organization does not understand its customers, what should it consider doing?
A) ​Determine a competitive advantage.
B) ​Choose another target market.
C) ​Analyze the external environment.
D) ​Conduct primary research.
E) ​Conduct secondary research.

Accepted Answer

Conducting primary research allows an organization to gather firsthand information directly from customers, helping them understand customer needs, preferences, and behaviors.

Question 2

Focus groups can be used to determine cause-and-effect relationships.​

Accepted Answer

Focus groups are qualitative research methods used to gather opinions, beliefs, and attitudes about a product, service, or concept, but they do not establish cause-and-effect relationships.

Question 3

The sheer volume of available information on the economy, population, and business activities is the major strength of most __________ data sources.
A) book and periodical
B) primary
C) commercial
D) internal
E) government

Accepted Answer

Government data sources are known for their extensive information on the economy, population, and business activities, making them valuable for research and analysis.

Question 4

The competitive analysis should start by identifying current and potential competitors.​

Accepted Answer

Competitive analysis begins with identifying both current and potential competitors to understand the market landscape and strategize effectively.

Question 5

Another word for data is information.​

Accepted Answer

The answer of Another word for data is information.​...

Question 6

A change in international, federal, state, or local laws and regulations is an example of a political trend.

Accepted Answer

The answer of A change in international, federal, state, or...

Question 7

What is the main purpose of the Sarbanes-Oxley Act of 2002?
A) To increase the accuracy and reliability of corporate disclosures of financial information.
B) To ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance.
C) To amend NAFTA to be more favorable to U.S. interests.
D) To limit the ability of drug companies to engage in direct-to-consumer advertising.
E) To limit the ability of the media to obtain confidential corporate information.

Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted in response to a number of major corporate and accounting scandals, including those affecting Enron, Tyco International, and WorldCom. Its main purpose is to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.

Question 8

Compared to primary data, secondary data have the main advantage of:
A) being up-to-date.
B) having greater relevance to a specific issue.
C) being both internally and externally focused.
D) being dramatically lower in cost.
E) being readily accessible in electronic format.

Accepted Answer

Secondary data are typically less expensive to obtain than primary data, as they have already been collected and processed by other organizations or for other purposes. This makes accessing these data generally less costly in terms of time, effort, and financial resources.

Question 9

The use of a vending machine is an example of nonstore retailing.​

Accepted Answer

Nonstore retailing includes transactions that occur outside of a traditional brick-and-mortar retail establishment, such as online shopping, direct selling, and the use of vending machines.

Question 10

Information is often easier to collect than data.​

Accepted Answer

Data is typically easier to collect as it consists of raw, unprocessed facts and figures. Information, on the other hand, is data that has been processed, organized, or structured to provide context and meaning, which requires additional steps and analysis.

Question 11

A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor?
A) ​Product competitor
B) ​Total budget competitor
C) ​Market competitor
D) ​Generic competitor
E) ​Brand competitor

Accepted Answer

Housing is a total budget competitor in this scenario because the consumer had to choose between spending her limited budget on housing or a new computer, indicating competition for the consumer's overall budget rather than a specific product or brand competition.

Question 12

A major drawback to primary data gathering is its relevance to the specific problem at hand.

Accepted Answer

Primary data gathering is specifically designed to address a particular research question or problem, making it highly relevant to the specific issue being studied.

Question 13

Situational analysis is only valuable to the extent that it improves the quality of the resulting marketing plan.

Accepted Answer

Situational analysis helps in understanding the current market conditions, competition, and internal capabilities, which in turn improves the quality and effectiveness of the marketing plan by ensuring it is well-informed and strategically aligned.

Question 14

Microsoft is interested in customers' perceptions of Windows 8, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire.
A) secondary
B) primary
C) qualitative
D) observation
E) experimental

Accepted Answer

Primary research is conducted to gather data directly related to a specific issue, problem, or question, such as customer perceptions of a new product. In this case, Microsoft would be collecting new, firsthand data through an online questionnaire to understand customers' perceptions of Windows 8, making it primary research.

Question 15

Although internal data sources have a number of advantages, one of their biggest problems is:
A) there are rarely enough internal data.
B) internal data are often not relevant to the marketing issue at hand.
C) internal data are expensive to collect.
D) internal data are often in a form that is not readily accessible.
E) internal data are typically biased.

Accepted Answer

Internal data are often collected for purposes other than marketing analysis, which means they may not be organized or formatted in a way that is immediately useful for marketing decision-making. This can make accessing and using the data more challenging.

Question 16

Which of the following cultural values is not typically associated with American consumers?
A) low tolerance for waiting
B) growing disconnect with government
C) greater focus on long-term goals
D) concern for the natural environment
E) less tolerance of smoking in public

Accepted Answer

American consumers are typically characterized by a focus on short-term goals rather than long-term planning, which contrasts with the long-term orientation found in some other cultures.

Question 17

A SWOT analysis is one of the most effective tools to analyze and organize environmental data and information.

Accepted Answer

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a widely used framework for organizing and analyzing internal strengths and weaknesses, as well as external opportunities and threats, making it an effective tool for understanding and decision-making in various contexts, including business and strategic planning.

Question 18

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:
A) internal environment.
B) external environment.
C) mission statement.
D) competitive strategy.
E) strategic environment.

Accepted Answer

The firm is examining its internal environment, as this involves looking at internal factors such as objectives, performance, resources, structure, and culture that can affect its operations and strategy.

Question 19

In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product.
A) linked
B) dependent
C) quasi-
D) conjoined
E) derived

Accepted Answer

Derived demand occurs when the demand for one product is dependent on the demand for another product, often because the products are complementary.

Question 20

Most of the time, it is unrealistic to convert noncustomers into customers because they are already biased against the company or product.​

Accepted Answer

Noncustomers can often be converted into customers through various strategies such as addressing their specific concerns, offering superior value, or differentiating the product or service in a way that resonates with their needs and preferences.

Quiz 3: Collecting and Analyzing Marketing Information

If an organization does not understand its customers, what should it consider doing?

Focus groups can be used to determine cause-and-effect relationships.​

The sheer volume of available information on the economy, population, and business activities is the major strength of most __________ data sources.

The competitive analysis should start by identifying current and potential competitors.​

Another word for data is information.​

A change in international, federal, state, or local laws and regulations is an example of a political trend.

What is the main purpose of the Sarbanes-Oxley Act of 2002?

Compared to primary data, secondary data have the main advantage of:

The use of a vending machine is an example of nonstore retailing.​

Information is often easier to collect than data.​

A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor?

A major drawback to primary data gathering is its relevance to the specific problem at hand.

Situational analysis is only valuable to the extent that it improves the quality of the resulting marketing plan.

Microsoft is interested in customers' perceptions of Windows 8, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire.

Although internal data sources have a number of advantages, one of their biggest problems is:

Which of the following cultural values is not typically associated with American consumers?

A SWOT analysis is one of the most effective tools to analyze and organize environmental data and information.

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its:

In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product.

Most of the time, it is unrealistic to convert noncustomers into customers because they are already biased against the company or product.​

Focus groups can be used to determine cause-and-effect relationships.

The competitive analysis should start by identifying current and potential competitors.

Another word for data is information.

The use of a vending machine is an example of nonstore retailing.

Information is often easier to collect than data.

Most of the time, it is unrealistic to convert noncustomers into customers because they are already biased against the company or product.