Question 1

Mary Morgan is the owner of a chain of auto parts stores specializing in high-end, expensive, third market accessories and replacement parts for luxury cars. For example, her stores allow Lexus and Mercedes owners a choice of exotic seat covers, including alligator and a very expensive synthetic product that resembles very soft suede leather and is impervious to stains or burns. She has been so successful that she is thinking about expanding throughout the country. She knows that the success of her expansion will depend largely on choosing the "right" markets. She knows that her target market makes in excess of $150,000 annual income, is between 35 and 60 years of age, and of course own luxury cars. Which of the following methods would be appropriate for Mary to consider as a source of information to measure market potential in different geographic areas?

Accepted Answer

The answer of Mary Morgan is the owner of a...

Question 2

The factors comprising the Buying Power Index are those that make up a market; that is, people (measured by population), ability to buy (measured by EBI), and willingness to buy (past retail sales is used as a surrogate measure of what people are willing to buy in the future).

Accepted Answer

The statement correctly describes the three factors that make up the Buying Power Index.

Question 3

Hartsfield Software has developed a new program to help CPAs set up an automated billing system for their clients. The company is considering a direct mail campaign to contact and inform CPAs about the merits of the new software program. The company needs a list of CPAs for every state in the nation. What type of secondary data source should Hartsfield seek?

Accepted Answer

Directories, such as Yellow Pages or business directories, provide a comprehensive list of businesses, including CPAs, in each state. They are a useful source of secondary data for identifying potential customers. Dictionaries, encyclopedias, indexes and abstracts, and legal sources are unlikely to provide the required information.

Question 4

Information searching skills can be greatly improved by finding standard subject headings.

Accepted Answer

Finding standard subject headings can help to refine search terms and retrieve more relevant results, thus improving information searching skills.

Question 5

A great deal of "census" information is actually based upon statistical sampling.

Accepted Answer

Census information is collected for every person or household in a certain geographic area, but some questions may not be answered by everyone. In these cases, statistical sampling may be used to estimate the missing information based on responses from a representative sample of the population.

Question 6

One of the disadvantages of the Survey of Buying Power is that the Elongated Billing Index (EBI)is actually calculated during a very short time period.

Accepted Answer

The Survey of Buying Power does not involve the Elongated Billing Index (EBI); it is a separate concept not related to the survey.

Question 7

NAICS stands for Northern Alliance of Information Compiled Sources.

Accepted Answer

NAICS actually stands for North American Industry Classification System. It is used to classify businesses and industries in the United States, Canada, and Mexico for statistical and economic analysis.

Question 8

Use of the terms AND, OR, and NOT in an online search illustrate the use of "field searching."

Accepted Answer

These terms illustrate the use of "Boolean searching," which helps refine search results by combining or excluding keywords. Field searching involves specifying particular fields like author or title.

Question 9

Walt Lewis was interested in knowing how best to allocate territories in Texas to the new, 10 member sales force he hired. While the sales force was undergoing training, Walt sought some secondary data that would help him allocate sets of counties to the salespersons. He knew he had to be equitable and felt strongly that each set of counties should have a market potential about equal to all the other sets. He needed some quantifiable measure of the market potential for each county, and he didn't want to use any Census data because he felt like this was outdated. Which secondary data source should Walt use?

Accepted Answer

The Survey of Buying Power is a database that provides quantifiable measures of market potential for each county in the United States. It is based on recent consumer expenditure data and is often used by businesses to allocate sales territories. Therefore, it would be the best choice for Walt to allocate territories in Texas.

Question 10

A secondary data source, Lifestyle Market Analyst, analyzes several dozen lifestyle categories such as "Avid Book Readers," "Cat Owners," "Have Grandchildren," "Own Camcorder," and "Shop by Catalog/Mail."

Accepted Answer

The statement accurately describes the Lifestyle Market Analyst dataset and its contents.

Question 11

Judy Mancuso is interested in opening a health and fitness center. Being a fitness enthusiast for many years, she is knowledgeable of many of the programs designed to shape and trim one's figure. However, she needs information on the business aspects of a health and fitness center. She goes to the local library and uses the computerized search system. Using a keyword search, Judy tries "health," "fitness," and finally "health and fitness." At first she is excited because her searches generate so many "hits." But, she soon learns that more than 50,000 hits is not good. Although there may be some good information available in the sources found, she soon learns that many of the "hits" don't really have much to do with her topic. Which of the following should Judy try to find on her subject?

Accepted Answer

The answer of Judy Mancuso is interested in opening a...

Question 12

Within the Survey of Buying Power, EBI is defined as Elongated Billing Index.

Accepted Answer

While the Survey of Buying Power does exist, there is no definition of EBI as Elongated Billing Index within it.

Question 13

NAICS is not really a source of information in and of itself; rather, it is a coding system that may be used to access information.

Accepted Answer

NAICS (North American Industry Classification System) is a system for classifying business establishments. Its primary purpose is to facilitate the collection and analysis of statistical data by grouping businesses into industries based on their primary activity. NAICS codes are often used by government agencies, researchers, and businesses to analyze economic activity, but NAICS itself does not provide information. Rather, it is a tool for organizing and accessing data related to different industries.

Question 14

Census of the population data serve as a baseline for much marketing information that is produced during the "in-between" census years.

Accepted Answer

Census data provides important demographic information such as age, income, and location that is useful for businesses and marketers to target their products and services. This data serves as a baseline for marketing research and analysis during the years in between the decennial censuses.

Question 15

In the textbook chapter on secondary data, your authors discuss how young Baby Boomers changed the preferences for types of music in the 1950s and 1960s. This example was used in the book to illustrate:

Accepted Answer

The example of how Baby Boomers changed the preferences for types of music in the 1950s and 1960s was used in the textbook to illustrate how marketers, using secondary data, study the attitudes and behaviors of selected demographic groups such as Baby Boomers and Gen Yers. It highlights the importance of using secondary data to understand the changing tastes and preferences of different groups of consumers.

Quiz 6: Using Secondary Data and Online Information Databases