Question 1

A cost-benefit analysis is performed after collecting secondary data.

Accepted Answer

A cost-benefit analysis requires a combination of both secondary and primary data, as primary data is required to evaluate the costs and benefits of a specific project or decision.

Question 2

Companies wishing to minimize the cost and time associated with market research should start by collecting and analyzing secondary data.

Accepted Answer

Secondary data refers to information that has already been collected and published, which can be used by companies to gain insights into their target market without the need for expensive and time-consuming primary research. By starting with secondary data, companies can save resources and potentially identify key trends and patterns before investing in further research.

Question 3

In an incipient market, demand is zero before the product is offered.

Accepted Answer

In an incipient market, demand exists but is not initially active or visible until a product or service is offered that activates or taps into this latent demand.

Question 4

The availability of documented information in print and on the Internet is in decline over the years.

Accepted Answer

The statement is incorrect. The availability of documented information in print may have declined, but the amount of information available on the internet has increased significantly over the years.

Question 5

A company's marketing information system should only cover important aspects of a company's internal environment.

Accepted Answer

A company's marketing information system should cover both internal and external environments, including competitors, customers, and the overall industry. Focusing solely on internal factors may result in a narrow perspective and limited understanding of the market.

Question 6

A latent market is an undiscovered marketing segment.

Accepted Answer

A latent market refers to a previously unidentified or unrecognized market segment that has potential for growth and profitability.

Question 7

A company offering products to meet incipient demand before the trends have taken root generally will have a huge market response.

Accepted Answer

Offering products to meet incipient demand means targeting a market need that is only just beginning to emerge, and it often involves educating the market and facing initial slow adoption rates as the trend has not yet fully developed or been widely recognized.

Question 8

A good questionnaire must be simple and easy for respondents to answer.

Accepted Answer

A good questionnaire should be designed in a way that is easy for respondents to understand and answer without getting confused or overwhelmed. This can be achieved through clear and concise wording, avoiding complex or technical language, and offering response options that are straightforward and easy to select.

Question 9

The time displacement method requires a marketer to estimate when two markets are at similar stages of development.

Accepted Answer

The time displacement method involves identifying a market that is further along in its lifecycle than the home market and estimating how long it will take for the home market to catch up. Therefore, the method requires identifying similar stages of development between the two markets.

Question 10

Marketing research is best defined as a continuous flow of information about company operations.

Accepted Answer

Marketing research is a systematic and objective process of collecting and analyzing information about a particular marketing problem to help management make informed decisions. It is not a continuous flow of information about company operations, but rather a specific process conducted to gather information about the market, customers, competitors, and other factors that can impact the success of a company's marketing efforts.

Question 11

Online surveys enable faster fieldwork.

Accepted Answer

Online surveys can be conducted and completed much faster than traditional methods such as phone or mail surveys, as respondents can fill them out at their own convenience from anywhere with an internet connection.

Question 12

Poor operating results can often be traced back to insufficient data and information about events both inside and outside the company.

Accepted Answer

Without proper data and information, it is difficult for a company to make informed decisions and take appropriate actions, leading to poor operating results.

Question 13

The two basic sampling methods in use today are probabilistic and nonprobabilistic sampling.

Accepted Answer

This statement is true. Probabilistic sampling involves randomly selecting participants from a population, while nonprobabilistic sampling involves selecting participants based on convenience or other non-random criteria.

Question 14

A focus group is a tool used to collect secondary market data.

Accepted Answer

A focus group is actually a tool used to collect primary market data. It involves a group of individuals who are brought together to participate in a facilitated discussion or interview about a particular product, service, or topic. The goal is to gather insights and opinions directly from the target audience.

Question 15

Social media monitoring tools provide marketers with rich data that reveals important consumer information.

Accepted Answer

Social media monitoring tools gather and analyze data on consumers' social media behavior, which can provide valuable insights to marketers.

Question 16

The best way to identify unnecessary duplication is to carry out an audit of reading activity by asking each person involved to list the publications she/he reads regularly.

Accepted Answer

By asking each person to list the publications they read regularly, it can be determined if there is any unnecessary duplication of reading material. This process helps in identifying the areas where resources can be saved and efforts can be directed to the most relevant and useful materials.

Question 17

Displacing time is a useful method of market analysis when data are available for two markets at the same level of development.

Accepted Answer

The answer of Displacing time is a useful method of...

Question 18

Headquarters executives of global companies obtain as much as two-thirds of the information they need from personal sources.

Accepted Answer

This statement is true according to a Harvard Business Review study.

Question 19

The search scanning mode includes monitoring and viewing market activities.

Accepted Answer

The answer of The search scanning mode includes monitoring and...

Question 20

In high-income countries, the amount of information available far exceeds the absorptive capacity of an individual or an organization.

Accepted Answer

The statement is true. High-income countries are characterized by a high volume of information available to individuals and organizations, which often exceeds their capacity to absorb, process, and apply it effectively. This can lead to information overload, cognitive overload, and decision-making paralysis. It also creates a demand for tools and strategies that help individuals and organizations manage information effectively, filter out irrelevant information, and gain insights from data.

Quiz 6: Global Marketing Information Systems and Research