Question 1

Which of the following is a quantitative forecasting method?

Accepted Answer

Trend analysis is a quantitative forecasting method that uses historical data to identify patterns and trends in order to forecast future demand. The other options are qualitative forecasting methods that rely on subjective opinions or surveys to make predictions.

Question 2

Hi-Test Cola Company wanted to create a sample that would contain 25 of its regular cola drinkers, 25 of its diet cola drinkers, 25 of its diet caffeine-free drinkers, and 25 of its caffeine-free regular cola drinkers.The company did this by stopping people on the street and continuing until it had spoken to enough people to meet the requirement.Which of the following the sampling methods was used?

Accepted Answer

The company used a non-probability quota sample because they selected a specific number of individuals from each category without random selection, ensuring each group was represented.

Question 3

Marketing research is the process of collecting data and using the information to back up the decisions that marketers have already made.

Accepted Answer

Marketing research is the process of collecting and analyzing data to inform and support marketing decisions. It is not meant to simply back up decisions that have already been made.

Question 4

What technique uses statistical computations as the bases of sales forecasts?

Accepted Answer

Quantitative forecasting techniques use statistical computations to make predictions based on historical data and trends. These techniques include time-series analysis, regression analysis, and econometric modeling, among others.

Question 5

If the United Nations were to bring experts together to discuss the impact of technological change on less-developed countries, which of the following forecasting techniques would the United Nations be using?

Accepted Answer

The Delphi technique is commonly used for obtaining forecasts from a panel of experts. In this case, the United Nations is bringing together experts to discuss the impact of technological change on less-developed countries, which is a useful application of the Delphi technique. The other three techniques listed are primarily used for quantitative forecasting and do not involve expert input.

Question 6

Which of the following techniques are used in quantitative forecasting methods?

Accepted Answer

Exponential smoothing is a quantitative forecasting technique that involves using past data to forecast future data by giving more weight to recent observations. The other options (sales force composite approach, executive opinion summaries, and consumer surveys) are all qualitative forecasting techniques that involve gathering opinions or input from individuals or groups.

Question 7

What underlying assumption is the danger of using trend analysis?

Accepted Answer

The underlying assumption of trend analysis is that future events will continue in the same manner as they did in the past, which may not always be the case. This assumption can lead to inaccurate predictions and potential risks in decision making.

Question 8

A business to business company has 3 clients that comprise 80% of the company's revenue.The company wants to forecast sales for one to five years.Which of the following forecasting techniques would be the MOST appropriate for a firm to use?

Accepted Answer

Survey of buyers intentions is most appropriate as it involves directly asking the major clients about their future purchasing plans, which is crucial when a few clients make up a large portion of revenue.

Question 9

Which of the following indicates the frequency with which Stats Canada conducts a Canadian Census?

Accepted Answer

According to the question, Stats Canada conducts a Canadian Census with a certain frequency. The only option that provides a specific frequency is B, which states that the Census is conducted every 5 years. Therefore, the best choice is B.

Question 10

Millions of consumers purchase Johnson & Johnson Band-Aid adhesive strips each year.Which of the following forecasting techniques would be the MOST appropriate for a firm to use?

Accepted Answer

Trend Analysis is most appropriate for forecasting sales of a product like Band-Aid adhesive strips, as it involves analyzing historical sales data to identify patterns or trends over time, which is suitable for a product with consistent demand.

Question 11

The size and organizational form of the marketing research function is usually independent of the structure of the company.

Accepted Answer

The size and organizational form of the marketing research function is often determined by the structure and needs of the company. For example, a large multinational company may have a dedicated marketing research department with a team of researchers, while a small startup may outsource their marketing research to a third-party agency or rely on their marketing team to conduct research. The structure of the company can impact how the marketing research function is organized, staffed, and managed.

Question 12

What is a major benefit of test-markets as a quantitative forecasting method?

Accepted Answer

Test-markets provide realistic information on actual purchases rather than intent to buy, allowing for more accurate quantitative forecasts.

Question 13

The first organized marketing research project was undertaken in 1943.

Accepted Answer

The first organized marketing research project is generally credited to have been undertaken by Charles Coolidge Parlin in 1911, when he was appointed as the manager of the Commercial Research Division of the Curtis Publishing Company.

Question 14

Market research aids decision makers in analyzing data and in suggesting possible actions.

Accepted Answer

Market research provides valuable insights and data that can assist decision-makers in making informed decisions and deciding on appropriate actions.

Question 15

Landsdowne Dairy is planning to introduce a new flavoured milk drink.As marketing manager, you want to appraise consumer response to this new product.What procedure would typically be used?

Accepted Answer

Test-markets would typically be used to appraise consumer response to the new flavoured milk drink. This involves introducing the new product in a limited geographic area and monitoring the sales and consumer response before deciding whether to launch the product on a wider scale. Trend analysis, a jury of executive opinion, and the Delphi technique are not typically used for consumer response testing.

Question 16

If you wanted to use a quantitative forecasting method that could be used to forecast sales of new products, what method would you select?

Accepted Answer

The answer of If you wanted to use a quantitative...

Question 17

Prior to the 1930s, marketing research was fairly sophisticated with refined statistical techniques producing high levels of accuracy in research findings.

Accepted Answer

Prior to the 1930s, marketing research was in its early stages and relied more on intuition and guesswork than sophisticated statistical techniques. It wasn't until the 1930s that more systematic approaches to marketing research began to emerge.

Question 18

Emily is a custom homebuilder and estimates that last year's sales were $1,500,000 and the sales growth rate for the past several years has been averaging 10 percent.On that basis, this year's sales should be $1,650,000.Which of the following forecasting techniques is Emily using?

Accepted Answer

Emily is using trend analysis, which involves analyzing historical data to identify patterns and trends in sales growth. In this case, she is using the historical growth rate of 10% to estimate this year's sales. Survey of buyers intentions, Sales Force Composite, and Delphi Technique are different forecasting techniques that involve gathering and analyzing data in different ways. None of these techniques are being used in this scenario.

Question 19

Advances in computer technology have broadened the base of data collection for marketing research.

Accepted Answer

With the increased use of computer technology, data can now be collected from a variety of sources including social media, websites, and online surveys. This has greatly expanded the scope and depth of marketing research.

Question 20

In which of the following examples would it be the MOST effective to use a test market?

Accepted Answer

Test markets are particularly effective for new food products because they allow companies to gauge consumer response to the product's taste, packaging, and overall marketability. For example, a fast-food chain might test a new hamburger in a local market before rolling it out nationwide. This can help them determine if the new product is viable and make changes before investing in a larger-scale launch. The other options are less likely to require a test market, as consumer preferences for houses, cars, and floral arrangements are less closely tied to product functionality and practicality.

Quiz 7: Marketing Research, Decision Support Systems, and Sales Forecasting