Question 1

Marketing research is the process of collecting,analysing,and interpreting data about customers,competitors,and the business environment to improve marketing effectiveness.

Accepted Answer

Marketing research is indeed the process of collecting, analyzing and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness.

Question 2

Data mining can be used to identify customers who are not profitable and who should be abandoned.

Accepted Answer

Data mining can analyze customer data to determine which customers are not generating enough revenue to be worth the costs of maintaining their accounts. This allows companies to focus their efforts on more profitable customers and possibly cut ties with unprofitable ones.

Question 3

Custom research is another name for syndicated research.

Accepted Answer

Custom research is different from syndicated research. Custom research is customized to meet the specific needs of a client or organization, whereas syndicated research is pre-designed and conducted by market research firms to provide insights to multiple clients who purchase the reports.

Question 4

Ten years ago a snack food manufacturer created a specialised division to create low sodium,fat and carbohydrate products after ________ suggested consumers might be becoming more concerned about their food choices.

Accepted Answer

Futurists are trend forecasters who study patterns and trends to predict future changes. They are often consulted by companies to predict consumer behavior and trends. In this scenario, the snack food manufacturer relied on the futurists' suggestions that consumers would become more concerned about their food choices, and therefore created a specialized division for low sodium, fat, and carbohydrate products.

Question 5

Celebrities 'R Us reports on consumers' perception of over 2000 celebrities such as Lady Gaga and Angelina Jolie.

Accepted Answer

Syndicated research involves collecting data on a particular topic and making it available to multiple clients for a fee. In this case, Celebrities 'R Us is collecting data on over 2000 celebrities and making it available to clients. This is different from custom research, which is tailored to a specific client's needs, and exploratory research, which is usually conducted to gain initial insights into a topic. While case study research can also involve studying celebrities' perceptions, it usually involves in-depth analysis of a few select cases rather than a broad sample of over 2000 celebrities.

Question 6

At the Hollywood Stock Exchange visitors use virtual dollars to 'buy and sell' stocks in soon-to-be-released movies.

Accepted Answer

The Hollywood Stock Exchange allows visitors to predict the future success of movies by using virtual dollars to buy and sell stocks. This activity involves the anticipation of future trends and events, which is characteristic of futurists.

Question 7

There are three basic types of data used in marketing information systems.

Accepted Answer

The answer of There are three basic types of data...

Question 8

American Express offers cardholders who purchase over $500 at specific department stores mailed discount vouchers for shoes purchased at the same stores if they use their American Express card.

Accepted Answer

This is an example of data mining, where American Express is analyzing their cardholders' purchase data to offer personalized discounts and promotions.

Question 9

Data mining has allowed Federal Express to identify existing customers as 'the good,the bad,and the ugly.

Accepted Answer

Federal Express uses data mining to categorize customers based on their value, which relates to customer abandonment (identifying less profitable customers) and customer retention (focusing on keeping valuable customers).

Question 10

The ________ would provide managers and buyers at K-Mart's headquarters with up-to-the-minute sales information obtained from store cash registers around the country so they can detect problems with products,promotions,and even the firm's distribution system.

Accepted Answer

An intranet is a private computer network that uses Internet protocols and technology to securely share any part of an organization's information or operational systems within that organization. In this case, an intranet would allow managers and buyers to access real-time sales data from K-Mart's stores around the country, providing them with valuable insights into product performance, promotions, and the distribution system.

Question 11

RBC Bank wanted to evaluate the financial value of its substantial personal customer base to determine their most valuable customers.

Accepted Answer

Data mining involves analyzing large datasets to identify patterns and valuable information, which is suitable for evaluating the financial value of a customer base.

Question 12

Scenarios are only used to consider the impact of competitors and government regulations.

Accepted Answer

Scenarios are not just limited to competitors and government regulations. They can also be used to consider a wide range of potential events or situations that may impact the business, such as changes in consumer behavior, economic trends, technological advancements, and natural disasters. Scenarios help organizations to anticipate and prepare for different possibilities, and make informed decisions based on a range of potential outcomes.

Question 13

Pringles' ________ generates daily sales data by product line and by sales region that its managers use to evaluate the market share of different Pringles' products compared to each other and to competing snack foods in each sales region.

Accepted Answer

Pringles' use of daily sales data to evaluate market share is an example of a marketing information system (MIS) in action.

Question 14

AC Nielsen conducts regular research on topics ranging from fast moving consumer goods to magazine and television ratings.

Accepted Answer

AC Nielsen's regular research is syndicated research, which refers to research that is conducted by a market research firm and then sold to a variety of clients. In this case, AC Nielsen is selling their research on consumer goods, magazines, and television ratings to interested parties.

Question 15

There is no financial difference for a company if it keeps existing customers or seeks to attract new customers.

Accepted Answer

Acquiring new customers can be more expensive than retaining existing ones. Also, existing customers tend to spend more over time and can act as advocates for the company, leading to new business through word of mouth. Therefore, there can be a financial advantage to keeping existing customers rather than solely focusing on acquiring new ones.

Question 16

Revlon asked women wearing their ColourStay line of cosmetics and competitors' brands to rub their cheeks against and 'kiss' a piece of cloth to determine the amount of cosmetics 'left behind'.

Accepted Answer

This is an example of custom research, as it involves a specific test designed by Revlon to gather data on their product's performance compared to competitors.

Question 17

The marketing intelligence system uses corporate espionage to gather any and all information about competitors.

Accepted Answer

The marketing intelligence system gathers information about competitors through legal means such as market research, customer surveys, and public sources. Corporate espionage is illegal and unethical.

Question 18

Futurists specialise in predicting consumer trends.

Accepted Answer

Futurists are experts in predicting future trends, including those related to consumers and their behavior. They use a range of tools and methodologies to identify patterns, understand emerging technologies, and make informed predictions about what the future may hold for society as a whole. By studying consumer trends, futurists can help businesses and other organizations prepare for the changes that are likely to occur in the years ahead.

Question 19

An intranet is an external corporate communication network that uses internet technology to link company departments,employees,and databases.

Accepted Answer

An intranet is an internal corporate communication network that uses internet technology to link company departments, employees, and databases. It is not external.

Question 20

Some companies build data warehouses to store and process collected data.

Accepted Answer

Data warehouses are built to store and process data collected from various sources in a structured and organized manner. This helps companies to analyze and gain insights from the data to make informed business decisions.

Quiz 4: Marketing Research: Gathering,analysing and Using Information