Chapter 1

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ROLE OF MARKETING RESEARCH

e 1. Marketing research a. generates information in the firm's environment. b. transmits information from the environment to the firm. c. d. e. interprets feedback information. makes decisions based upon information from the environment. does a, b, and c. a 2. Marketing research a. is the use of information to identify and define marketing problems. b. has as one of its objectives to improve our understanding of management as a c. d. e. process. aims to promote government regulation of research activities. is only useful in companies with over $1 million in annual sales. is not very useful to a provider of services, such as banks. e 3. Which of the following phases of the information-management process is not part of marketing research? a. b. c. the specification of what information is needed the collection of the information the analysis of the information d. e. the interpretation of the information the use of the information b 4. The Handy Hand Tools Company commissioned a survey designed to determine whether

homeowners prefer plastic or metal casings on electric screwdrivers. The results of this

survey will likely be used as input into decisions concerning which element of the

marketing mix? a. price b. c. product publicity d. e. promotion preference b 5. Which of the following is NOT a common activity of a marketing research department? a. measuring market potential b. creating new advertising c. location analyses d. sales analyses e. studying the competition's advertising

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e 6. Which of the following currently uses market research? a. salespeople b. c. politicians clergy d. a and b e. a, b and c e 7. Which of the following types of organizations do NOT conduct marketing research? a.

producers of products and services b.

non-profit organizations c.

advertising agencies d.

marketing research companies e.

All of the above conduct marketing research. e 8. The primary reasons for studying marketing research include: a.

Some may pursue a career in marketing research. b.

Knowledge of the marketing research makes for a “smarter” consumer. c.

Managers should know the benefits and limitations of marketing research. d.

a and c. e.

a, b and c.

DECISION SUPPORT SYSTEMS

e 9. To design a marketing information system, analysts need to know a. what types of decisions each decision maker regularly makes. b. what types of special studies are periodically requested. c. what information is necessary to make decisions. d. the frequency with which information is expected. e. all of the above. e 10. An MIS needs analysis investigates a. the form in which managers need information. b. the types of information managers need. c. d. e. the types of decisions managers make. b and c. a, b, and c. c 11. A key distinction of a MIS is that a. b. the information is accurate. it can only be used by marketing managers. c. d. e. information is collected on a regular basis. it does not involve focused projects. the information is used in making marketing decisions. a 12. Which of the following is TRUE?

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a. The most fundamental criterion in designing a marketing information system is an accurate, objective assessment of each manager's decision-making responsibilities, capabilities, and style. b. The proper way to define what information is to be provided by a marketing information system is to ask each manager what information he or she would like to have and then go about designing a system to provide that information. c. In a marketing information system it is important that data files be aggregated as d. e. much as possible so as to prevent the manager from being inundated with too many bits and pieces of information. a and b. a, b, and c. b 13. The set of procedures and methods for the regular planned collection, analysis and presentation of information for use in making marketing decisions. This describes a. b. c. d. e. decision support systems. marketing information systems. research projects. oral presentations. written presentations. e 14. A decision support system consists of a. dialog systems. b. c. model systems. data systems. d. b and c. e. a, b, and c. c 15. The primary purpose of dialog systems is to allow the marketing manager to a. write programs to control the flow of information between various modules in the

DSS. b. communicate via electronic mail with their salespeople. c. interact with the DSS to target and manipulate relevant information contained in the DSS data base. d. e. collect data from primary sources and add it to the data base. collect data from secondary sources and add it to the data base. a 16. Databases containing both current and historical information are called a.

data warehouses. b.

data mines. c.

data portals. d.

expert systems. e.

data models.

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PROCESS OF MARKETING RESEARCH

a 17. The strategy that specifies the purposes and types of research studies generally conducted by a company is known as the a. program strategy. b. research mix. c. analysis strategy. d. project strategy e. research design strategy. c 18. The strategy that specifies how a company designs individual research studies is called the a. research mix. b. analysis strategy. c. project strategy. d. program strategy. e. research design strategy. b 19. Rodey's Rivets, Inc., annually collects information from all of its current customers to determine the customers' satisfaction with Rodey's delivery schedules. These studies demonstrate what type of marketing research strategy? a. logistics research strategy b. program strategy c. distribution research strategy d. project strategy e. satisfaction research strategy d 20. Chocoholic Ice Cream, Inc. annually collects information from consumers regarding their brand awareness and satisfaction with Chocoholic's products via personal interviews.

These studies demonstrate what type of marketing research strategy? a. advertising evaluation strategy b. program strategy c. development strategy d. project strategy e. satisfaction research strategy e 21. The most important step in the research process is a. determining the research design. b. designing data collection method and forms. c. preparing the research report. d. analyzing and interpreting the data. e. formulating the problem. c 22. A study which uses data that has already been collected for some other purpose is using a. primary data. b. a poor data collection method. c. secondary data. d. preliminary data. e. exploratory data.

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a 23. The management of Dirty Dan's Diaper Service is concerned about their choice of advertising media in the Madison, WI area. They aren't sure if advertising placed in the local newspaper is reaching their target market. A research project is launched with the objective of determining the relationship between newspaper readership and use of cotton diapers. What type of research design is most appropriate for this project? a. descriptive design b. exploratory design c. relational design d. causal design e. advertising design e 24. The sample design stage of the research process includes specifying a. the population from which the sample elements will be drawn. b. the sampling frame. c. the type of sample. d. the sample size. e. all of the above.

PROBLEM FORMULATION

a 25. The fundamental sources of marketing research problems are a. serendipity, planned change, and unplanned change. b. ineffective advertising, serendipity, and change. c. d. change, poor sales, and ineffective advertising. poor management, serendipity, and unplanned change. e. planned change, technological advancement, and customer suggestions. b 26. The main purpose of discovery-oriented marketing research is a. to decide what to do about a planned change. b. c. d. e. to find out what is happening and why. to describe changes in the internal environment. to describe changes in the external environment. to capture and evaluate the new idea. c 27. Change that is proactive, or future oriented, is known as a. future shock. b. active change. c. planned change. d. unanticipated change. e. serendipitous change. e 28. Research problems might arise from a. unanticipated change in the marketing environment in the form of competitor initiatives. b. a firm's planned change of a marketing variable. c. customer complaint letters. d. a and c. e. a, b and c.

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e 29. Serendipity, or chance ideas, as a source of marketing research problems, might arise from a. b. c. customer complaint letters. salesperson's call reports. comments in trade publications. d. customer calls to toll-free service assistance centers. e. all of the above are sources of chance ideas. e 30. The primary purpose of requiring the decision maker to initial and date the written research request agreement is a. to absolve the researcher of legal responsibility concerning the proposed research project. b. to assure the researcher of adequate funding for the proposed research project. c. to transfer responsibility for ethical research conduct to management. d. to ensure that research data will be used properly by the decision maker. e. to formalize and strengthen the agreement between researcher and decision maker on the objectives of the research. a 31. A written statement that describes the marketing problem, the purpose of the study, and the research methodology to be used is known as a a. research proposal. b. statement of technique. c. statement of research purpose and method. d. e. research request. research outline. e 32. It is important to meet with the client at the earliest stages of the research project a. so that an appropriate budget can be established. b. c. so that the researcher(s) and client can begin to develop rapport and trust. so that research methods can be selected in time to meet project deadlines. d. e. so that the researcher(s) can get as much background information as possible. b and d b 33. Which of the following analytic approaches is useful for bringing new perspectives to a problem or opportunity? a. THINK Approach b. c. d. e.

ALCA Model

Omega Process

Think / Re-think Model

None of the above d 34. The ALCA Model contains the following steps: a. analyze, locate, create, attribute b. ask, look, create, apply c. analyze, look, clarify, apply d. ask, listen, clarify, analyze e. ask, listen, create, apply e 35. Strategy-oriented decision problems are commonly used a. with unplanned change.

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b. with planned change. c. to determine what is going on in a situation. d. to make decisions among strategic alternatives. e. b and d

TYPES OF RESEARCH DESIGN

SECONDARY DATA

USING EXTERNAL SECONDARY DATA

a 1. The three basic designs can be looked at as stages in a continuous process. This process a. represents the investigation of a more detailed statement of the problem at each stage of the problem. b. always moves in sequence from exploratory to descriptive to causal. c. always begins with an exploratory study. d. always starts with an hypothesis. e. contains only one study of each type. b 2. Which of the following is FALSE? a. A research design is the framework for a study that serves as a basis for the collection and analysis of data in such a way that the study will be relevant to the problem and will use economical procedures. d. The crucial tenet of research is that the research design should stem from the problem at hand. e. They are all true.

b 3. Research designs a. should be strictly limited to the three classifications of exploratory, descriptive, and causal because a given study should serve only one purpose. b. It is impossible to do research without a research design. c. A research design ensures that a study will be relevant to the decision problem at hand. b. should stem from the problem. c. are productive in a given problem setting no matter how the principles are applied. d. should not be modified to suit specific purposes. e. are specific in that they instruct the researcher in terms of the single, best way to proceed in a given study. c 4. The crucial principle of research is a. the framework or plan for a study that guides the collection and analysis of data. b. that 20% of the factors cause 80% of the problems. c. that the design of the investigation should stem from the problem. d. to isolate the variables and analysis technique at the first opportunity. e. to assess sampling error because it has the greatest impact on the study's results. c 5. Which of the following is FALSE? a. In exploratory research the major concern is with the discovery of ideas and insights.

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b. Exploratory research is often used to clarify concepts and to establish priorities for further research. c. Exploratory research investigates hypotheses. d. Exploratory research is used to develop hypotheses. e. Exploratory studies do not lend themselves very well to the use of structured questionnaires. b 6. Which of the following is capable of providing more convincing evidence of causal relationships? a. an exploratory design b. an experiment c. turnover analysis d. cross-sectional analysis e. a descriptive design a 7. Which statement best describes the potential uses of descriptive research? a. Descriptive research can be used to estimate proportions, describe characteristics, and make specific predictions. b. Descriptive research can be used to estimate proportions, generate beginning hypotheses, and describe characteristics. c. Descriptive research can be used to establish cause and effect, make specific predictions, and describe characteristics. d. Descriptive research can be used to describe characteristics, estimate proportions, and manipulate independent variables. e. Descriptive research can be used to generate beginning hypotheses, manipulate independent variables, and make specific predictions. c 8. The descriptive study a. usually takes the form of an experiment. b. c. has its major emphasis on the discovery of insights and ideas. can be characterized as rigid. d. is concerned with the determination of a cause-and-effect relationship. e. has as its main objective the establishment of priorities for future research. d 9. A causal research design is typically concerned with a. the frequency with which something occurs. b. the discovery of ideas and insights. c. how two variables vary together. d. the determination of cause-and-effect relationships. e. establishing priorities when studying competing explanations of phenomenon. d 10. A descriptive study a. should be begun with the vague idea that the data collected should be interesting. b. presupposes little prior knowledge about the phenomenon of interest. c. d. is simply a fact-gathering study. requires a clear specification of the research problem. e. is characterized by its flexibility. b 11. The distinction between primary and secondary data is defined by a. b. the method of collection. the purpose of the investigation.

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c. d. e. the form used for collection. the group sponsoring the collection. the type of data collected. e 12. Which of the following might NOT be considered a benefit of using secondary data? a. Secondary data help to state better the problem under investigation. b. Secondary data cost less to collect than primary data. c. Secondary data can suggest improved methods or data for addressing the research problem. d. Secondary data provide comparative data to which primary data can be compared. e. Secondary data better fit the problem under investigation. b 13. Which of the following might be considered disadvantages of secondary data? a. Secondary data are more costly to collect than primary data. b. c.

Secondary data typically do not fit completely the problem at hand.

Secondary data are generally more accurate than primary data. d. b and c only. e. None of the above. b 14. An example of secondary data would be a. b. c. d. a survey conducted by the researcher. statistics from the U.S. Census. results of a phone interview conducted by the researcher. measurements made from observation by the researcher in the field. e. results of a field experiment conducted by the researcher. b 15. Which of the following are examples of secondary data (as contrasted with primary data)? a. Demographic information (birth, age, marriage, income, etc.) collected from a sample of respondents as a part of a market segmentation study for a prominent grocery chain. b. Housing data (tenure, race of occupants, year built, etc.) as reported in the Journal of Marketing and later used by a researcher working on a project for a construction company. c. Housing data especially collected from a sample by a researcher working on a project for a construction company. d. Consumer attitudes as measured by an attitude questionnaire designed and used by a researcher investigating a model of consumer behavior. e. Results of an experiment used to evaluate ad effectiveness for a new product. a 16. The main disadvantage of data furnished by standardized marketing information services over user-collected primary data is a. standardized data may not always fit the specific needs of the user. b. standardized data is generally more costly than primary data. c. d. e. standardized data is generally less accurate than primary data. standardized data is hard to locate. standardized data is only available in "hard copy" formats.

E 17. Which of the following might use data indexed in Dun’s Business Locator? a.

sales management.

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b.

advertising management. c.

marketing research professionals. d.

a and b. e.

a, b, and c. a 18. Which of the following are NOT activities typically associated with

"geodemographers?" a. conducting primary research b. tabulating census and other data for geographic areas c. updating census data through statistical extrapolation d. performing detailed analysis of census data e. all of the above are typically associated with "geodemographers" e 19. Which of the following is TRUE? a. There are more standardized marketing information services available to the consumer goods manufacturer than to the industrial goods manufacturer. b. The Dun's Business Locator is popular among industrial goods and service suppliers. c. Census Bureau material has proven to be very useful in targeting groups of customers. d. Geodemographers are companies that typically combine census data with other primary and secondary data to produce customized reports for clients. e. They are all true. d 20. Demographically balanced diary panels enable the service provider to a. save on the cost of assembling the panel. b. use the same panel members for all U.S. markets. c. assume that all panel members have the same lifestyle. d. generalize panel purchasing data to the population as a whole. e. disregard the effects of different ethnic backgrounds on purchase data.

b 21. Which of the following is NOT a potential source of internal secondary data? a. cash register receipts b. trade magazines c. d. e. warranty cards financial records all of the above are potential sources

b 22. Select the question that can be answered through experimentation. a. Do adults in the western United States consume more 100% fruit drinks than those in the Northeast? b. Will one brand name produce higher level-of-satisfaction reports than another brand name? c. Do consumers purchase more chicken per capita on a retail weight basis now than they did two years ago? d. Does the average two-person household purchase more than $65.00 worth of groceries a week? e. a and c.

a 23. Using different ads in different geographic areas and investigating which ad generated the highest sales is an example of _____ research design.

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a. causal b. exploratory c. longitudinal d. descriptive e. panel

e 24. An exploratory study should NOT be used for a. formulating a problem for more precise investigation. b. developing hypotheses. c. establishing priorities for future research. d. gathering information about the practical problems of carrying out research on particular issues. e. investigating the strength of the relationship between variables.

a 25. The experience survey is a procedure most appropriate for a. exploratory studies. b. descriptive studies. c. d. e. laboratory experimentation. field experimentation. computer simulation.

e 26. Which of the following statements describing Nielsen SCANTRACK is true? a. SCANTRACK is a service which interprets information provided by the reading of Universal Product Codes at point of purchase. b. The service provides weekly sales data from a nationwide sample of scanner-equipped stores. c. The data allow clients to monitor product recalls and shortages. d. The scanner data are not subject to recording biases.

e. All of the above is true

d 27. Nielsen's Scantrack service DOES NOT allow clients to evaluate the effectiveness of a. b. c. d. e. short-term promotions. pricing changes. new product introductions. radio advertising. in-store displays.

b 28. Select the question that can best be answered through experimentation. a. Do children from upper classes drink more carbonated beverages than those from lower classes? b. Will Chevron gasoline with XYZ additive provide better mileage than Chevron c. without the additive?

Does the average male use cosmetics? d. Is the standard of living higher today than ten years ago? e. How often do Chevron's customers purchase gasoline? c 29. Apex Manufacturing has developed an ingenious "twist" on a widely available home cleaning product. Management wishes to test market the new product, but they are hesitant to do so because other manufacturers of home cleaning products could easily duplicate Apex's modification. Which type of test marketing would you recommend to

Apex?

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a. controlled test marketing b. standard test marketing c. simulated test marketing d. forced-distribution test marketing e. electronic test marketing

d 30. A wealthy entrepreneur is able to analyze traffic patterns and consumer demographics to identify the best site for her new restaurant. Mapping software, often called a

_____________, allows her to easily combine demographic data with geographic information. a.

marketing information system b.

management information system c.

business locator d.

geographic information system

e. geodemographic locator

c 31. A researcher needs secondary data concerning the number, total sales, and number of employees of department stores in the state of Delaware. Which of the documents listed below is likely to be the best source of this information? a. Census of Service Industries b. c.

Census of Manufactures

Census of Retail Trade d. Census of Wholesale Trade e. "Statistical and Marketing Report"

e 32. The store audit continues to be a popular method of sales measurement for a.

small, independent grocery stores. b.

convenience stores. c.

liquor stores. d.

a and b. e.

a, b, and c.

a 33. Which of the following is TRUE? a. A panel is a permanent or fixed sample of members from whom information is obtained continuously or at intervals over a period of time. b.

Nielsen’s panels of households in which participants use a handheld scanner to record every UPC-coded item they purchase is example of an omnibus panel in which the same variables are measured over time. c. An omnibus panel is a fixed sample of individuals who are measured continuously (or periodically) with respect to the same information, e.g. purchase diary. d. A true longitudinal analysis can be performed on data from an omnibus panel. e. They are all true.

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