Question 1

"Back-translation" is a technique used to ensure that currency conversion is performed correctly when financial statements of foreign subsidiaries are consolidated with financial statements at headquarters.

Accepted Answer

Back-translation is actually a technique used to ensure that translations of financial statements from a foreign language to the home office's language are accurate. It involves translating the foreign language financial statements back to the home office's language and comparing it to the original financial statements to identify any discrepancies.

Question 2

During earlier days, Japanese women almost never used mascara because, by nature, they have very straight, short and thin lashes. This was observed during a focus group study.

Accepted Answer

Japanese women have used various forms of makeup, including mascara or its historical equivalents, for centuries. The use of makeup in Japan can be traced back to the Heian period (794-1185), and while modern mascara as we know it might not have been available, they used different methods to darken and enhance their eyelashes and eyebrows.

Question 3

Describe guidelines that are recommended by David Arnold for data gathering and explain their importance in marketing research.

Accepted Answer

The answer of Describe guidelines that are recommended by David...

Question 4

Volkswagen, Peugeot, Chrysler, and other global automakers have established manufacturing operations in China since they consider it to be an incipient market.

Accepted Answer

Many global automakers have indeed established manufacturing operations in China due to its status as an emerging market with significant potential for growth in the automotive industry.

Question 5

One study of adult involvement in household tasks revealed greater similarities between the United Kingdom and the United States compared with France, Belgium, and French Canada. Thus, the United States and United Kingdom were "twins" based on common language. This study is an example of:
A) market latency.
B) conjoint analysis.
C) factor analysis.
D) multidimensional scaling.
E) cluster analysis.

Accepted Answer

The study is analyzing similarities and differences between different countries based on a set of variables (in this case, adult involvement in household tasks). This is a typical scenario for cluster analysis, which aims to group similar cases together based on their characteristics. Factors analysis, conjoint analysis, and multidimensional scaling are all techniques used to analyze data and identify underlying relationships, but they are not the best choices for this particular study. Market latency is not relevant in this context.

Question 6

If Coach, a luxury goods marketer, would like to study the consumer perceptions of global luxury brands, what would be the best approach since there are several competitors?

Accepted Answer

The answer of If Coach, a luxury goods marketer, would...

Question 7

A latent market is, in essence, an undiscovered market segment.

Accepted Answer

A latent market refers to a market segment that has not yet been discovered or fully exploited. It may be a group of consumers who have specific needs or preferences that have not been adequately addressed by existing products or services.

Question 8

Red Bull energy drink manufacturer, Dietrich Mateschitz, hired a market research firm to assess the market potential for the drink. In the tests, consumers reacted negatively to the taste, the logo, and the brand name. The company ignored the research completely.

Accepted Answer

According to various sources, including interviews with Dietrich Mateschitz himself, the market research results were indeed negative, but Mateschitz decided to go against them and believe in his own vision for the brand's success.

Question 9

It will be convenient to do a telephone survey in rural areas in China since, according to the Ministry of Information Industry reports, 40 percent of households have at least one fixed-line telephone.

Accepted Answer

Although 40 percent of households having at least one fixed-line telephone indicates some level of access, the figure also suggests that 60 percent do not have such access, making a telephone survey potentially inconvenient and unrepresentative of the entire rural population.

Question 10

Suppose Apple has collected extensive survey data about its new iPhone, and respondents have rated it on 20 different features and benefits. Now researchers want to reduce the amount of data to a few underlying dimensions. Which data analysis technique should the researchers use?
A) analogy
B) conjoint analysis
C) factor analysis
D) multidimensional scaling
E) cluster analysis

Accepted Answer

Factor analysis is the technique used to reduce the amount of data to a few underlying dimensions.

Question 11

"Back-translation" is a technique whereby a survey or other document that has been translated is returned (i.e. "sent back") to the translator for corrections.

Accepted Answer

Back-translation is a process where a text that has been translated into another language is then translated back into the original language by a second, independent translator to check for accuracy and consistency.

Question 12

Traditional market research is the most effective means for identifying latent markets.

Accepted Answer

Traditional market research is effective for identifying existing markets, but may not be as effective for identifying latent or emerging markets. Other methods such as trend analysis, data mining, and social media monitoring may be more useful in identifying these types of markets.

Question 13

Authors Michael Czinkota and Ilka Ronkainen identified four specific environmental factors that may require international research efforts to be conducted differently than domestic research. Describe those factors to outline the differences.

Accepted Answer

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Question 14

Culture shapes attitudes and values in a way that directly affects people's willingness to respond to interviewer questions.

Accepted Answer

Culture plays a significant role in shaping attitudes and values of individuals, which in turn influences their behavior and responses to questions asked by interviewers. Therefore, culture affects people's willingness to respond to interviewer questions.

Question 15

A market researcher who uses multidimensional scaling (MDS) will:
A) attempt to estimate market size by analogy.
B) ask respondents to rate a particular product or brand in terms of multiple characteristics or attributes.
C) ask respondents to evaluate product or brand pairs in terms of similarity.
D) attempt to determine the combination of product features that create the greatest utility for consumers.
E) conduct a focus group.

Accepted Answer

A market researcher who uses multidimensional scaling (MDS) will ask respondents to evaluate product or brand pairs in terms of similarity. MDS is a statistical technique used to analyze similarities and differences in consumer perceptions of products or brands. The researcher presents respondents with pairs of products or brands and asks them to rate how similar the two options are on a scale. The researcher can then plot these results to create a visual representation of consumers' perception of the products or brands.

Question 16

If Avon would like to sell cosmetics in India, a good estimate of sales can be predicted by researching the average wage of an office secretary.

Accepted Answer

The answer of If Avon would like to sell cosmetics...

Question 17

If a market researcher would like to know how much the typical Nigerian consumer spends on soft drinks, the information can be obtained from GNP or GDP.

Accepted Answer

GNP and GDP provide information about the overall economic activity and output of a country, but they do not provide specific data on consumer spending habits within a particular market or industry. To obtain information about how much the typical Nigerian consumer spends on soft drinks, a market researcher would need to conduct consumer surveys or obtain sales data from soft drink companies operating in Nigeria.

Question 18

When consumers have difficulty in verbalizing their perceptions, and there are different alternative brands of toothpaste, what is the best method of judging them in terms of similarity?
A) cluster analysis
B) multidimensional scaling
C) dependence techniques
D) factor loading
E) focus group

Accepted Answer

Multidimensional scaling is the best method of judging similarity when consumers have difficulty in verbalizing their perceptions and there are different alternatives. This technique plots brands in a multidimensional space based on how consumers perceive their similarity, allowing researchers to identify clusters of similar brands.

Question 19

Campbell is the world's largest soup company, commanding about 80% of the U.S. canned soup market. However, the company has a presence in only 6% of the world's soup markets. Russians eat 32 billion servings of soup each year, and the Chinese consume 300 billion! By contrast, Americans eat 15 billion servings each year. Sensing a huge opportunity, Campbell has dispatched teams to observe Russian and Chinese habits. This type of interpretation and decision is based on:
A) demand pattern analysis.
B) income elastic analysis.
C) time series displacement.
D) polycentrism.
E) comparative analysis.

Accepted Answer

Campbell is engaging in comparative analysis by observing the soup consumption habits of Russians and Chinese, compared to Americans.

Question 20

An "incipient market" is a market that will emerge if a particular economic, demographic, political, or sociocultural trend continues in a country.

Accepted Answer

An incipient market refers to a market that is in the early stages of development and will emerge if a certain trend continues.

Quiz 6: Global Information Systems and Market Research