Question 1

Which type of Internet sample would be used by a consumer products company that already has a database from which to select its sample?
A) mined
B) controlled
C) recruited
D) representational
E) conventional

Accepted Answer

A recruited sample is used when a company already has a database of potential respondents from which it can select its sample.

Question 2

Competitive intelligence allows managers to:
A) predict changes in business relationships
B) forecast a competitor's strategy
C) learn about new technologies that can affect their company
D) learn about the impact of proposed government legislation on their industry
E) do all of the above

Accepted Answer

Competitive intelligence involves gathering, analyzing and disseminating information about industry competitors and business environment to assist managers in making informed decisions. Competitive intelligence enables managers to predict changes in business relationships and competitor's strategies, learn about new technologies that can affect their company and the impact of proposed government legislation on their industry. Therefore, option E is the correct choice.

Question 3

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,marketing research should not be undertaken when:
A) the actual costs are less than the forecasted benefits
B) there is no secondary data in existence to guide the project definition
C) it will take a long time to complete
D) the research would be redundant and a waste of money
E) the perceived costs are the same as the forecasted benefits

Accepted Answer

When a company has already conducted market research on a particular market and understands the characteristics of the target customers, conducting further research on the same market would be redundant and a waste of money. Therefore, option D is the correct choice. Option A, C, and E are incorrect as they do not consider the redundancy in research. Option B is also incorrect as the availability of secondary data is not the only factor to consider when deciding whether to conduct market research or not.

Question 4

What is the moderator's role in cyber focus groups?
A) to limit discussion to closed-ended questions
B) to provide freestyle screen dialogue including text,instructions,and probes
C) to make sure costs remain relatively low
D) to act as a datamining engineer
E) to let respondents control the discussion

Accepted Answer

The moderator's role in cyber focus groups is to provide freestyle screen dialogue including text, instructions, and probes. They facilitate the discussion and guide the respondents towards relevant topics without limiting it to closed-ended questions. The moderator may also need to make sure costs remain relatively low, but this is not their primary role. Data mining is not typically the moderator's responsibility, and allowing respondents to control the discussion could result in unfocused or irrelevant answers.

Question 5

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?
A) the Internet
B) the Yellow Pages of his hometown phone book
C) national trade shows
D) UCC filings
E) advertisements in the local newspaper

Accepted Answer

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

Question 6

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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.The Sav-More management is continually provided with information to make better marketing decisions.This data is easily accessed and manipulated.This type of system is called a:
A) marketing decision support system
B) competitive intelligence system
C) single-source system
D) marketing information system
E) marketing research system

Accepted Answer

A marketing decision support system (MDSS) is a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. The system described allows Sav-More to access and manipulate data for better marketing decisions, fitting the description of an MDSS.

Question 7

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:
A) InfoScan
B) VideOCart
C) BehaviorScan
D) Nielsen Data
E) Scanner Plus

Accepted Answer

The product that allows IRI to electronically track each household's purchasing over time is called BehaviorScan.

Question 8

A regional supermarket chain gathers monthly information from the same consumers.It continuously monitors the in-store promotion the consumers are exposed to and records their purchases.It uses the mail to send different promotions to different areas,and consumers complete diaries recording grocery purchases in return for a small fee.This is an example of::
A) the use of a people meter
B) scanner-based research system
C) an EDI study
D) a CLT interview
E) machinated observation

Accepted Answer

The scenario describes a scanner-based research system where the supermarket chain continuously monitors consumer purchases and promotions with the use of a scanner. The mail promotions sent to different areas also suggest the use of a scanner-based system rather than a people meter or machinated observation. The diaries filled out by consumers also indicate that the research method involves self-reporting rather than a CLT interview or an EDI study.

Question 9

A _____ gathers its information from one group of respondents by continuously monitoring the advertising,promotion,and price they are exposed to and what is subsequently purchased.This creates a huge database of marketing efforts and resultant consumer behavior.
A) one-way mirror observation study
B) television meter investigation
C) laser scanner experiment
D) CLT interview
E) scanner-based research system

Accepted Answer

The scanner-based research system gathers information by continuously monitoring the advertising, promotion, and prices that respondents are exposed to, and what is subsequently purchased. This creates a database of marketing efforts and resultant consumer behavior.

Question 10

The two types of online focus groups are:
A) field and laboratory
B) diagnostic and predictive
C) real-time and time-extended
D) primary and secondary
E) individual and panel

Accepted Answer

Real-time focus groups occur in a synchronous manner where participants meet in a virtual room at the same time. Time-extended focus groups happen asynchronously where participants can log in and contribute responses for an extended period, usually a few days.

Question 11

Marketing research should not be undertaken when:
A) the perceived costs are greater than the projected benefits
B) there is no secondary data in existence to guide the project definition
C) it will take a long time to complete
D) the actual costs are less than the forecasted benefits
E) the perceived costs are the same as the forecasted benefits

Accepted Answer

Marketing research should only be undertaken if the benefits of the research outweigh the costs. If the perceived costs are greater than the projected benefits, it may not be worth the investment.

Question 12

Which of the following is NOT an advantage associated with cyber focus groups?
A) speed
B) cost effectiveness
C) narrow geographic scope
D) accessibility
E) honesty of respondents

Accepted Answer

One of the disadvantages associated with cyber focus groups is the narrow geographic scope, as they are not limited to a specific location like traditional focus groups.

Question 13

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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.Edisto 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.The data Edisto collected are called _____ data.
A) single-source
B) secondary
C) representational
D) primary
E) dichotomous

Accepted Answer

The data collected by Edisto are primary data because they are being collected specifically for the purpose of determining the cause of the drop in orange juice sales. Primary data is original data collected firsthand for a specific research purpose, while secondary data are data that have been previously collected for another purpose. A, B, C, and E are not the best choice because single-source data refer to the collection of data from one person or household; secondary data refer to data that have already been collected for another purpose; representational data refer to a sample of a larger population; and dichotomous data refer to data that can only take on one of two values.

Question 14

In order for a firm to become a more efficient and effective competitor,it can assess its competition.Such a competitive assessment requires a company to engage in:
A) a competitive advantage
B) competitive intelligence
C) industrial espionage
D) an audit
E) a differential competitive advantage

Accepted Answer

Competitive intelligence involves gathering and analyzing information about the competition in order to improve a company's competitiveness. Industrial espionage, which involves stealing trade secrets from competitors, is illegal and unethical. A competitive advantage refers to a unique advantage a company has over its competitors, while a differential competitive advantage is a distinction between products or services. An audit involves analyzing a company's financial and operational performance, but does not necessarily focus on competition.

Question 15

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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.The creation of a large computerized file of customers' demographic and psychographic characteristics through the new Sav-More system is called:
A) survey research
B) situation analysis
C) database marketing
D) observation research
E) secondary data

Accepted Answer

The system described in the scenario is a database marketing system that uses barcode scanners and magnetic cards to track purchases and gather demographic and psychographic information. This information is then used for direct mail promotions to frequent-shopper club members. Therefore, choice C - database marketing - is the correct answer.

Question 16

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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 KEZZ.Cicarelli's initial background study of her company,competitors,and market represents which step in the marketing research decision process:
A) defining the marketing problem
B) planning the research design
C) specifying the sampling procedures
D) collecting the data
E) analyzing the data

Accepted Answer

Cicarelli's initial background study of her company, competitors, and market represents the first step in the marketing research decision process, which is defining the marketing problem.

Question 17

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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.Edisto decided to survey each customer who stops in front of the frozen orange juice section on Saturday.The type of sample Edisto used for his research project is called:
A) simple random
B) piggyback
C) probability
D) stratified
E) convenience

Accepted Answer

The type of sample used by Edisto is convenience sampling, as he is selecting customers who stop in front of a specific section on a specific day (Saturday), which is based on convenience rather than a random or structured process. However, convenience sampling may not be the best choice for obtaining a representative sample, as it may result in a biased sample that does not accurately reflect the population. It would be better to use a probability sampling method, such as simple random or stratified sampling, to increase the chances of getting a representative sample.

Question 18

SCENARIOS
Sav-More Supermarkets
Observers of the supermarket industry see no letup in the use of checkout-counter-based target marketing.Sav-More supermarkets have 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 check 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.These data are called _____ data.
A) primary
B) single-source
C) secondary
D) conventional
E) representational

Accepted Answer

The data from the database system discussed above are already collected and available for Al Edisto to study, making them secondary data. Primary data would need to be collected by Al Edisto himself, such as through a survey or focus group. Single-source data refer to when multiple types of information about a consumer (e.g. purchase behavior and TV viewing habits) are linked together, which is not mentioned in this scenario. Conventional and representational data are not relevant terms in this context.

Question 19

_____ is a scanner-based,national market tracking service for the consumer packaged goods industry.It tracks retail sales,consumer purchasing information,and promotional activity for all bar-coded products.
A) BehaviorScan
B) Nielsen Data
C) Scanner Plus
D) InfoScan
E) VideOCart

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. The other options listed are either not specific to tracking retail sales and consumer purchasing information for bar-coded products or are not related to market tracking services for the consumer packaged goods industry.

Question 20

Marketing researchers use the Internet for:
A) collaboration between the client and the research supplier in the management of a research project
B) publication and distribution of reports
C) data management and online analysis
D) distribution of requests for proposals (RFP)and proposals
E) all of the above

Accepted Answer

Marketing researchers use the Internet for all the above purposes. The Internet serves as an efficient platform for collaboration between clients and research suppliers, publishing and distributing reports, managing data, conducting online analysis, and distributing requests for proposals (RFPs) and proposals. Therefore, the best choice is E, which includes all of the above purposes.

Quiz 8: Decision Support Systems and Marketing Research

Which type of Internet sample would be used by a consumer products company that already has a database from which to select its sample?

Competitive intelligence allows managers to:

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,marketing research should not be undertaken when:

What is the moderator's role in cyber focus groups?

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?

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:

A _____ gathers its information from one group of respondents by continuously monitoring the advertising,promotion,and price they are exposed to and what is subsequently purchased.This creates a huge database of marketing efforts and resultant consumer behavior.

The two types of online focus groups are:

Marketing research should not be undertaken when:

Which of the following is NOT an advantage associated with cyber focus groups?

In order for a firm to become a more efficient and effective competitor,it can assess its competition.Such a competitive assessment requires a company to engage in:

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

Marketing researchers use the Internet for: