Question 1

Erica Cicarelli is an advertising sales representative for CHEZ,a radio station that has a play list limited to recordings from the 1980s.Cicarelli believes the listener ratings of her station provided by a marketing research company are inaccurate.CHEZ is ranked 25th in the city.Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young professional listeners.Listener rankings determine the rates Cicarelli can charge for advertising time.Cicarelli decided her station needed to conduct its own ratings study to determine the size of the audience and a profile of current listeners.First,Cicarelli reviewed all data from the current ratings providers to see if she could find any trends in listenership.Next,she completed a background investigation of her station,competitive stations,and the market to determine what the ratings problem may be.
Cicarelli then prepared a questionnaire for current and potential listeners.The questionnaire contained a long list of yes/no questions on whether the respondent listens to a specific station.The data were collected via telephone with 1,000 radio listeners using random-digit dialling.Cicarelli chose telephone interviewing because previous research has shown that nearly 100 percent of radio listeners have telephones,and it is faster than mail surveys.
-Refer to CHEZ.Cicarelli's initial background study of her company,competitors,and market represents which step in the marketing research decision process?

Accepted Answer

Cicarelli's initial background study of her company, competitors, and the market to understand the ratings problem is a step towards defining the marketing problem, which is crucial before planning any research design or data collection method.

Question 2

Erica Cicarelli is an advertising sales representative for CHEZ,a radio station that has a play list limited to recordings from the 1980s.Cicarelli believes the listener ratings of her station provided by a marketing research company are inaccurate.CHEZ is ranked 25th in the city.Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young professional listeners.Listener rankings determine the rates Cicarelli can charge for advertising time.Cicarelli decided her station needed to conduct its own ratings study to determine the size of the audience and a profile of current listeners.First,Cicarelli reviewed all data from the current ratings providers to see if she could find any trends in listenership.Next,she completed a background investigation of her station,competitive stations,and the market to determine what the ratings problem may be.
Cicarelli then prepared a questionnaire for current and potential listeners.The questionnaire contained a long list of yes/no questions on whether the respondent listens to a specific station.The data were collected via telephone with 1,000 radio listeners using random-digit dialling.Cicarelli chose telephone interviewing because previous research has shown that nearly 100 percent of radio listeners have telephones,and it is faster than mail surveys.
-Refer to CHEZ.Cicarelli's research design involves utilizing a questionnaire via telephone.This method best represents which type of research?

Accepted Answer

Cicarelli's research design involves using a questionnaire to collect data from radio listeners, which is a common method used in survey research.

Question 3

Erica Cicarelli is an advertising sales representative for CHEZ,a radio station that has a play list limited to recordings from the 1980s.Cicarelli believes the listener ratings of her station provided by a marketing research company are inaccurate.CHEZ is ranked 25th in the city.Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young professional listeners.Listener rankings determine the rates Cicarelli can charge for advertising time.Cicarelli decided her station needed to conduct its own ratings study to determine the size of the audience and a profile of current listeners.First,Cicarelli reviewed all data from the current ratings providers to see if she could find any trends in listenership.Next,she completed a background investigation of her station,competitive stations,and the market to determine what the ratings problem may be.
Cicarelli then prepared a questionnaire for current and potential listeners.The questionnaire contained a long list of yes/no questions on whether the respondent listens to a specific station.The data were collected via telephone with 1,000 radio listeners using random-digit dialling.Cicarelli chose telephone interviewing because previous research has shown that nearly 100 percent of radio listeners have telephones,and it is faster than mail surveys.
-Refer to CHEZ.What type of sampling plan is Cicarelli using?

Accepted Answer

Cicarelli is using a probability sample as she is using random-digit dialling which provides all individuals in the target population an equal chance of being selected for the survey.

Question 4

Erica Cicarelli is an advertising sales representative for CHEZ,a radio station that has a play list limited to recordings from the 1980s.Cicarelli believes the listener ratings of her station provided by a marketing research company are inaccurate.CHEZ is ranked 25th in the city.Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young professional listeners.Listener rankings determine the rates Cicarelli can charge for advertising time.Cicarelli decided her station needed to conduct its own ratings study to determine the size of the audience and a profile of current listeners.First,Cicarelli reviewed all data from the current ratings providers to see if she could find any trends in listenership.Next,she completed a background investigation of her station,competitive stations,and the market to determine what the ratings problem may be.
Cicarelli then prepared a questionnaire for current and potential listeners.The questionnaire contained a long list of yes/no questions on whether the respondent listens to a specific station.The data were collected via telephone with 1,000 radio listeners using random-digit dialling.Cicarelli chose telephone interviewing because previous research has shown that nearly 100 percent of radio listeners have telephones,and it is faster than mail surveys.
-Refer to CHEZ.Cicarelli's review of the current research information represents a study of what type of data?

Accepted Answer

Cicarelli reviewed existing data, which is considered secondary research. Primary research would involve collecting new data directly from respondents. Representational research involves sampling a specific group, such as a particular demographic, and drawing conclusions based on the results. Single-source research refers to combining data from multiple sources to gain insights. None of these methods are being used in this scenario.

Question 5

Erica Cicarelli is an advertising sales representative for CHEZ,a radio station that has a play list limited to recordings from the 1980s.Cicarelli believes the listener ratings of her station provided by a marketing research company are inaccurate.CHEZ is ranked 25th in the city.Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young professional listeners.Listener rankings determine the rates Cicarelli can charge for advertising time.Cicarelli decided her station needed to conduct its own ratings study to determine the size of the audience and a profile of current listeners.First,Cicarelli reviewed all data from the current ratings providers to see if she could find any trends in listenership.Next,she completed a background investigation of her station,competitive stations,and the market to determine what the ratings problem may be.
Cicarelli then prepared a questionnaire for current and potential listeners.The questionnaire contained a long list of yes/no questions on whether the respondent listens to a specific station.The data were collected via telephone with 1,000 radio listeners using random-digit dialling.Cicarelli chose telephone interviewing because previous research has shown that nearly 100 percent of radio listeners have telephones,and it is faster than mail surveys.
-Refer to CHEZ.The yes/no questions about listening to particular stations are an example of which of the following?

Accepted Answer

The yes/no questions in the questionnaire are examples of dichotomous questions, which only have two possible responses (in this case, "yes" or "no"). Sampling frame questions refer to questions that determine the population from which a sample is drawn, open-ended questions allow for open and varied responses, and scaled-response questions require respondents to rate their answers on a scale (e.g. 1-5).

Question 6

In order for a firm to become a more efficient and effective competitor,it can assess its competition.What does such a competitive assessment require a company to engage in?

Accepted Answer

A competitive assessment requires a company to engage in competitive intelligence, which involves gathering and analyzing information about competitors and the market in order to gain a competitive advantage. An audit may provide some insight into a company's own operations, but it does not necessarily involve an analysis of competitors. A competitive advantage and a differential competitive advantage are both related to a company's unique strengths and strategies, but do not necessarily involve an assessment of the competitive landscape.

Question 7

When should marketing research NOT be undertaken?

Accepted Answer

Marketing research should not be undertaken if the perceived costs are the same as the forecasted benefits. This means that the benefits of conducting research are not worth the costs involved in conducting it. Therefore, it is important to carefully evaluate the costs and benefits before deciding to undertake marketing research.

Question 8

Bruno Harkin would like to open a local delivery service in his hometown,but he has no idea who his competitors might be.Harkin should first use which of the following external sources of competitive intelligence?

Accepted Answer

The Yellow Pages of his hometown phone book would provide a comprehensive list of local businesses, including potential competitors in the delivery service industry.

Question 9

IRI panel members shop with an ID card,which is presented at checkout in scanner-equipped grocery and drug stores,allowing IRI to electronically track each household's purchasing over time.This information on the household members is a product called which of the following?

Accepted Answer

BehaviourScan is the correct answer because it is a product by IRI (Information Resources, Inc.) that tracks household purchasing behavior over time through the use of an ID card presented at checkout in scanner-equipped stores.

Question 10

Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More Supermarkets has installed an electronic marketing system in its stores.The system allows the stores to do more direct mail promotions by combining the current Sav-More's cheque-cashing cards with the new Sav-More's Bonus Club frequent-shopper cards.The new system uses barcode scanners and magnetic cards issued to shoppers to track all purchases.As with most customer databases,demographic information is gathered for subsequent offers to frequent-shopper club members,and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases.Generally,marketing to these consumers achieves better results than free-standing insert (FSI)coupons.
-Refer to Sav-More Supermarkets.What is the creation of a large computerized file of customers' demographic and psychographic characteristics through the new Sav-More system called?

Accepted Answer

The creation of a large computerized file of customers' demographic and psychographic characteristics through the new Sav-More system is called database marketing.

Question 11

Because some companies have been conducting market research for many years on particular markets they are interested in,they understand the characteristics of target customers.For this reason,when should marketing research NOT be undertaken?

Accepted Answer

Marketing research should not be undertaken when it would be redundant and a waste of money. If a company already has a good understanding of their target customers through years of market research, additional research that does not add any new insights would only incur unnecessary costs.

Question 12

Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More Supermarkets has installed an electronic marketing system in its stores.The system allows the stores to do more direct mail promotions by combining the current Sav-More's cheque-cashing cards with the new Sav-More's Bonus Club frequent-shopper cards.The new system uses barcode scanners and magnetic cards issued to shoppers to track all purchases.As with most customer databases,demographic information is gathered for subsequent offers to frequent-shopper club members,and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases.Generally,marketing to these consumers achieves better results than free-standing insert (FSI)coupons.
-Refer to Sav-More Supermarkets.Al Edisto,Sav-More's frozen food manager,decided to survey each customer who stops in front of the frozen orange juice section on Saturday.What type of sample is Edisto using for his research project?

Accepted Answer

Edisto is surveying customers who happen to stop at the frozen orange juice section on a specific day (Saturday) and in a specific section of the store (frozen food). This is a convenience sample, as he is not randomly selecting customers but rather surveying those who are easily accessible to him.

Question 13

Annual reports,websites,advertisements,and trade shows are all sources of which of the following?

Accepted Answer

These are all sources of competitive intelligence, as they provide information about competitors' activities, strategies, and performance. Primary data refers to data collected firsthand for a specific purpose, survey research is a method of collecting primary data, and promotion is a marketing strategy to boost sales or brand visibility.

Question 14

According to marketing research by the Specialty Equipment Market Association (SEMA),a growing number of people want to buy compact performance cars and customize them.They want to turn Honda Civics,Acura Integras,and Mitsubishi Eclipses into personalized statements of automotive expression.Eighty-four percent of these people are under 30,and 42 percent are Asian-Canadian.More than 80 percent of them are men.SEMA research shows that a high percentage of this population is interested in finding a domestic car that can be customized.At a recent automotive after-market show,Ford showed three Focus-based concepts to demonstrate its seriousness about reaching this market.
-Refer to SEMA.Since the SEMA research was not done specifically for Ford,how would it be classified?

Accepted Answer

The SEMA research would be classified as secondary data, as it was not conducted specifically for Ford but rather was existing data that Ford could use for their own market research purposes.

Question 15

Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More Supermarkets has installed an electronic marketing system in its stores.The system allows the stores to do more direct mail promotions by combining the current Sav-More's cheque-cashing cards with the new Sav-More's Bonus Club frequent-shopper cards.The new system uses barcode scanners and magnetic cards issued to shoppers to track all purchases.As with most customer databases,demographic information is gathered for subsequent offers to frequent-shopper club members,and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases.Generally,marketing to these consumers achieves better results than free-standing insert (FSI)coupons.
-Refer to Sav-More Supermarkets.Sav-More management is continually provided with information to make better marketing decisions.This data is easily accessed and manipulated.What is this type of system called?

Accepted Answer

The system described in the passage is a marketing information system that provides data and information to Sav-More Supermarkets to make better marketing decisions. It is also a marketing decision support system because it helps managers in making decisions related to marketing by providing them with relevant information.

Question 16

Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More Supermarkets has installed an electronic marketing system in its stores.The system allows the stores to do more direct mail promotions by combining the current Sav-More's cheque-cashing cards with the new Sav-More's Bonus Club frequent-shopper cards.The new system uses barcode scanners and magnetic cards issued to shoppers to track all purchases.As with most customer databases,demographic information is gathered for subsequent offers to frequent-shopper club members,and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases.Generally,marketing to these consumers achieves better results than free-standing insert (FSI)coupons.
-Refer to Sav-More Supermarkets.Al Edisto,Sav-More's frozen food manager,decided the best way to determine what is causing the drop in orange juice sales was to conduct a survey among shoppers in the frozen-food section of Sav-More.What are the data Edisto collected?

Accepted Answer

Edisto conducted a survey among shoppers in the frozen-food section of Sav-More, which means he collected primary data.

Question 17

According to marketing research by the Specialty Equipment Market Association (SEMA),a growing number of people want to buy compact performance cars and customize them.They want to turn Honda Civics,Acura Integras,and Mitsubishi Eclipses into personalized statements of automotive expression.Eighty-four percent of these people are under 30,and 42 percent are Asian-Canadian.More than 80 percent of them are men.SEMA research shows that a high percentage of this population is interested in finding a domestic car that can be customized.At a recent automotive after-market show,Ford showed three Focus-based concepts to demonstrate its seriousness about reaching this market.
-Refer to SEMA.The type of research gathered by SEMA would have which of the following roles?

Accepted Answer

The research gathered by SEMA is descriptive, as it provides information about a specific group of people and their interests in buying and customizing compact performance cars. It describes their demographics, preferences, and behaviors. It does not aim to predict future trends or manipulate their opinions, nor is it subjective or fictional.

Question 18

Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More Supermarkets has installed an electronic marketing system in its stores.The system allows the stores to do more direct mail promotions by combining the current Sav-More's cheque-cashing cards with the new Sav-More's Bonus Club frequent-shopper cards.The new system uses barcode scanners and magnetic cards issued to shoppers to track all purchases.As with most customer databases,demographic information is gathered for subsequent offers to frequent-shopper club members,and psychographic information is tracked whenever customers use the magnetic strip cards to make purchases.Generally,marketing to these consumers achieves better results than free-standing insert (FSI)coupons.
-Refer to Sav-More Supermarkets.Al Edisto,Sav-More's frozen food manager,noticed that sales of orange juice have fallen,and he wanted to set up a marketing research project to determine possible reasons for the decline.He first studied the data from the database system discussed above.What are these data?

Accepted Answer

The data Al Edisto studied from the database system are considered secondary data because they were already collected and stored within the company's electronic marketing system for purposes other than the specific research project on orange juice sales decline.

Question 19

What is a scanner-based,national market tracking service for the consumer packaged goods industry that tracks retail sales,consumer purchasing information,and promotional activity for all bar-coded products?

Accepted Answer

InfoScan is a scanner-based national market tracking service for the consumer packaged goods industry that tracks retail sales, consumer purchasing information, and promotional activity for all bar-coded products. Nielsen Data is also a market research company, but it offers a broader range of services beyond just tracking barcoded products. VideOCart is an early interactive video-based shopping system and not a market tracking service. Scanner Plus is not a known market tracking service in the consumer packaged goods industry.

Question 20

What does competitive intelligence allow managers to do?

Accepted Answer

Competitive intelligence allows managers to gather and analyze information about competitors, including their current strategies and potential future moves. This can help managers predict changes in business relationships and adapt their own strategies accordingly.

Answer: B 
 Competitive intelligence can provide insight into a competitor's strategy and allow managers to adjust their own strategy in response. However, managers cannot directly influence a competitor's strategy.

Answer: C 
 Competitive intelligence may include information about proposed government legislation, but it focuses on how that legislation would impact the company's own industry or competitors within that industry. Learning about the impact on other industries would require broader environmental scanning.

Answer: D 
 Competitive intelligence is focused on gathering and analyzing information about competitors and the industry environment, not on broader technological trends affecting the country. Technological forecasting or environmental scanning may be better methods for identifying these trends.

Quiz 7: Decision Support Systems and Marketing Research