Question 1

In _____ companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets.

Accepted Answer

Reverse innovation refers to the process where companies develop products for niche or underdeveloped markets and then expand them into their original or home markets. Glocalization refers to the process of creating a product or service that is able to meet the needs of local people in different parts of the world. Homogenization refers to the process of making products or services more similar across different markets. Localization refers to the process of adapting a product or service to meet the specific needs of a particular market. Inverse creation is not a commonly used term in business or marketing.

Question 2

_____ involves a process of defining the 4P variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Accepted Answer

Market positioning involves defining the 4P variables (product, price, promotion, and place) in a way that creates a unique and desirable perception of the product in the minds of target customers, in relation to competitors. This helps the company establish a clear market position and competitive advantage.

Question 3

The major disadvantages of primary data collection are that:

Accepted Answer

Primary data collection takes more time to collect than secondary data and is more costly, which can be a major disadvantage for researchers and organizations who have limited resources. While the other options may also be disadvantages of primary data collection, they are not as significant as the time and cost factors.

Question 4

Which of the following is a source of quantitative research?

Accepted Answer

Scanner data is a source of quantitative research as it provides numerical data on purchases made by consumers. In-depth interviews, social media sites, projective techniques, and focus groups are sources of qualitative research as they provide more subjective, in-depth insights into consumer behavior and attitudes.

Question 5

Current size, and expected growth rate, market competitiveness, and market access are a part of the _____ criterion.

Accepted Answer

The answer of Current size, and expected growth rate, market...

Question 6

Which of the following is an advantage of secondary data collection?

Accepted Answer

Secondary data collection saves time and effort as it involves using data that already exists and has been collected by others. This data can be accessed easily and quickly, without the need for data collection processes such as surveys or experiments, saving the researcher time and effort.

Question 7

Jim's book store sold management textbooks online to university students. The store wanted to open a brick and motor store in a small town. However, a study showed that there was only small community college in the area and the number of prospective customers was likely to be low. In this scenario, the store is considering the _____ criterion.

Accepted Answer

The store is considering the substantialness criterion, which refers to the size and purchasing power of the target market. The study showed that the number of prospective customers was likely to be low, indicating that the market may not be substantial enough to justify opening a brick and mortar store. The other criteria (identifiability, reachability, profitability, and responsiveness) may also be important, but are not mentioned in this scenario.

Question 8

Fly Air, provides exclusive services such as guaranteed tickets, upgrades and dedicated customer lines to customers who use the airline more than 20 times a year. The company believes that not all customers are created equally. In this scenario, Fly Air is using _____ segmentation.

Accepted Answer

Fly Air is using loyalty segmentation, which involves dividing customers based on their level of loyalty or frequency of using the service. The airline is providing exclusive services to customers who use their airline more than 20 times a year.

Question 9

The psychographic variable that includes people's psychographic makeup, are the way they live is _____.

Accepted Answer

The word "live" in the question suggests that the answer is related to people's lifestyle. Therefore, the correct answer is E - lifestyle. The other options - motive, social class, self-values, and self-concept - are all psychographic variables, but they do not specifically refer to the patterns of behavior and activities that make up a person's lifestyle.

Question 10

Which of the following is true of the in-depth interview method?

Accepted Answer

In-depth interviews are usually lengthy and require significant time and effort. However, the results obtained from in-depth interviews are very detailed and can be used to develop surveys and other research instruments. Therefore, option D is the correct answer. Option A is incorrect because sentiment mining is usually done using social media data. Option B is incorrect because making quick changes to a product roll requires faster methods of data collection and analysis. Option C is incorrect because in-depth interviews are relatively more time consuming, as mentioned earlier. Option E is incorrect because in-depth interviews can be used to establish an historical context.

Question 11

_____ are pieces of information that have been collected prior to the start of the focal research project.

Accepted Answer

Secondary data is data that has been collected prior to the start of the focal research project. Primary data is collected during the research project, hypothetical data is not real data, tertiary data is a type of secondary data that is already compiled and organized, and focal data is not a commonly used term in research.

Question 12

A grocery store checkout counter collects content relating to individual consumer purchases. When this content is organized, analyzed and interpreted, it becomes _____.

Accepted Answer

When content relating to individual consumer purchases is organized, analyzed, and interpreted, it becomes information. Data refers to raw, unprocessed information. Metadata refers to information about the data, such as when it was acquired or who created it. Metacontent is not a commonly used term in the field of data analysis. Samples refer to a subset of data used in statistical analysis.

Question 13

According to the STP process, once a firm establishes overall strategies, it must

Accepted Answer

The first step in the STP (Segmentation, Targeting, Positioning) process after establishing overall strategies is to decide on segmentation methods. This involves determining how to divide the market into distinct groups of consumers with different needs or characteristics.

Question 14

CL Foods, a fast-food chain, considers the entire community to be a potential target market. Moreover, the chain has stores in business districts, near schools and colleges and next to ball-parks. CL Foods is using a _____ strategy.

Accepted Answer

CL Foods is pursuing an undifferentiated marketing strategy, also known as a mass marketing strategy, by considering the entire community as a potential target market and having stores located in various areas.

Question 15

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is_____ his business relative to his competition.

Accepted Answer

Donald is positioning his business by emphasizing his local presence and experience compared to his national franchise competitors.

Question 16

The second step in the marketing research project involves

Accepted Answer

The second step in the marketing research project is design. This involves designing the research methodology, selecting the sample size and method, and deciding how data will be collected.

Question 17

MN Corp., a retailer, wished to open a new store in a suburb. In order to obtain data relating to consumer behavior, competition, and other relevant information, the company employed Am Research, a market research firm. In this scenario, the data collected and presented by Am Research would be known as _____.

Accepted Answer

The data collected and presented by Am Research would be known as syndicated data. This is because market research firms such as Am Research specialize in collecting and analyzing data on a particular industry or market sector, and then making that data available for purchase by other companies who wish to use it to inform their own business decisions. The data collected by Am Research would therefore be considered syndicated data, which is data that has already been gathered and analyzed by a third-party provider and is available for purchase by other organizations.

Question 18

Analyzing data and developing insights from this analysis would take place before the _____ step of the market research process.

Accepted Answer

Analyzing data and developing insights occur after data collection and before implementation in the market research process.

Question 19

Which of the following is an advantage of using primary data sources?

Accepted Answer

Primary data sources offer a lesser scope for bias as the data is collected directly from the source and can be tailored to the research question. The other options are not advantages of using primary data sources.

Question 20

Companies are legally required to

Accepted Answer

According to many privacy laws and regulations, companies are required to disclose their privacy practices to customers on an annual basis, including how they collect, use, and share personal information. This helps consumers make informed decisions about whether or not they want to do business with a particular company.

Exam 1: Professional Certified Marketer