Chapter 5 – Exploratory Research Design:
Syndicated Sources of Secondary Data
True/False Questions
1.
Companies that collect and sell common pools of data designed to serve information needs shared by a
number of clients are called syndicated services.
True (moderate, page 125)
2.
Data processing services make their money by collecting data and designing research products that fit the
information needs of more than one organization.
False (moderate, page 125)
3.
Periodic, panel, and shared are the three types of general surveys.
True (moderate, page 127)
4.
Interviews with a large number of respondents using a predesigned questionnaire are called observations.
False (moderate, page 127)
5.
Panel surveys collect data on the same set of variables at regular intervals, each time sampling from a new
group of respondents.
False (difficult, page 128)
6.
Periodic surveys measure the same group of respondents over time but not necessarily on the same
variables.
False (moderate, page 128)
7.
According to the text, panel surveys are used primarily because of their lower cost compared to random
sampling.
True (moderate, page 128)
8.
An example of a disadvantage of using surveys is interviewer error.
True (moderate, page 128)
9.
An advantage of scanner volume-tracking data is being the most flexible way of obtaining data.
False (moderate, page 128)
10.
According to the text, surveys are used primarily for new product testing.
False (moderate, page 128)
11.
Households provide specific information regularly over an extended period of time for diary purchase
panels.
True (moderate, page 128)
12.
Diary purchase panels are used primarily for establishing advertising rates.
False (difficult, page 128)
13.
Electronic devices automatically record behaviors that supplement a diary for audited services.
False (moderate, page 128)
14.
The primary use of diary media panels is to determine market potential by geographic region.
False (moderate, page 128)
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15.
Household purchases are recorded through electronic scanners in supermarkets for scanner volume-tracking
data.
True (moderate, page 128)
16.
The primary use of scanner volume-tracking data is to forecast sales.
False (difficult, page 128)
17.
Scanner diary panels with cable TV are used primarily for advertising theme selection.
False (difficult, page 128)
18.
Verifications of product movement by examining physical records or performing inventory analysis are
characteristics of audits.
True (moderate, page 128)
19.
The primary purpose of audit services is to establish consumer profiles.
False (moderate, page 128)
20.
The primary advantage of shared surveys is shared information.
False (moderate, page 129)
21.
Psychometrics refers to the psychological profiles of individuals and to psychologically-based measures of
lifestyle, such as brand loyalty and risk taking.
False (moderate, page 130)
22.
"Lifestyles" refer to the distinctive models of living of a society or some of its segments.
True (moderate, page 130)
23.
According to the text, surveys are the primary means of obtaining information about consumers' motives,
attitudes, and preferences.
True (moderate, page 131)
24.
Peoplemeters have revolutionized grocery store retailing by allowing self-service checkouts.
False (moderate, page 128)
25.
Scanner data are data obtained by passing merchandise over a laser scanner that reads the UPC code from
the packages.
True (moderate, page 134)
26.
Scanner data that provides information on purchases by brand, size, price, and flavor or formulation are
called volume-tracking data.
True (moderate, page 135)
27.
The three types of scanner data that are available are scanner diary panels, volume-tracking data, and
scanner diary panels with cable TV.
True (difficult, page 135)
28.
According to the text, qualitative data are data routinely collected by supermarkets and other outlets with
electronic checkouts.
False (difficult, page 135)
29.
A.C. Nielsen's volume-tracking data service is called InfoScan.
False (difficult, page 135)
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30.
Scanner diary panels collect scanner data wherein panel members are issued an ID card allowing panel
members' purchases to be linked to their identities.
True (moderate, page 136)
31.
The collection of product movement data for wholesalers and retailers is called a focus group.
False (easy, page 137)
32.
A major strength of scanner data is its representativeness gained by including all retail categories, such as
food warehouses and mass merchandisers.
False (difficult, page 137)
33.
A physical audit is a formal examination and verification of product movement carried out by examining
physical records or analyzing inventory.
True (moderate, page 138)
34.
Syndicated sources can be classified based on the unit of measurement.
False (difficult, page 140)
35.
Passive peoplemeters allow entire shopping carts to be checked out in an instant using tiny embedded chips
in merchandise
False (easy, page 142)
Multiple Choice
36.
Companies that collect and sell common pools of data designed to serve information needs shared by a
number of clients are called _____________.
a. syndicated services (moderate, page 125)
b. data processing services
c. field services
d. qualitative research services
e. pooling services
37.
______________ make their money by collecting data and designing research products that fit the
information needs of more than one organization.
a. Data processing services
b. Syndicated services (moderate, page 125)
c. Field services
d. Qualitative research services
e. Pooling services
38.
Syndicated data are data that are collected and made available to all subscribers in
a. standard format (moderate, page 125)
b. moderated format
c. customized format
d. specialized format
e. contemporary format
39.
Which of the following is NOT one of the three types of general surveys?
a. periodic
b. panel
c. shared
d. descriptive
e. parallel (moderate, page 127)
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40.
Syndicated sources can be classified as based units of measurement, such as ______________ and
____________.
a. observations; insights
b. surveys; interviews
c. qualitative; quantitative
d. secondary; primary
e. households/consumer; institutions (moderate, page 127)
41.
______________ collect data on the same set of variables at regular intervals, each time sampling from a
new group of respondents.
a. Periodic surveys (moderate, page 127)
b. Panel surveys
c. Shared surveys
d. Parallel surveys
e. Regular surveys
42.
Which of the following types of general surveys measure the same group of respondents over time but not
necessarily on the same variables?
a. periodic surveys
b. panel surveys (moderate, page 127)
c. shared surveys
d. parallel surveys
e. regular surveys
43.
According to the text, ______________ are used primarily because of their lower cost compared to random
sampling.
a. periodic surveys
b. panel surveys (moderate, page 129)
c. shared surveys
d. parallel surveys
e. regular surveys
44.
Shared surveys______________.
a. deal mostly with questions of general interest to a client group
b. are only one-time surveys
c. have samples drawn exclusively from the population of interest
d. allow syndicated research organizations to produce only a single report
e. include supplementary proprietary questions from each participating client (moderate, page
129)
45.
A disadvantage for which of the following types of syndicated services includes interviewer error?
a. diary media panels
b. scanner volume-tracking data
c. audit services
d. in-depth interviews
e. surveys (moderate, page 128)
46.
An advantage of which of the following types of syndicated services is being the most flexible way of
obtaining data?
a. surveys (moderate, page 128)
b. audit services
c. diary media panels
d. scanner volume-tracking data
e. in-depth interviews
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47.
According to the text, surveys are used primarily for all of the following purposes EXCEPT:
a. market segmentation.
b. advertising theme and selection.
c. advertising effectiveness.
d. in-depth interviews
e. new product testing. (difficult, page 128)
48.
For which of the following types of syndicated services do households provide specific information
regularly over an extended period of time?
a. surveys
b. diary purchase panels (moderate, page 128)
c. scanner volume-tracking data
d. audit services
e. regular surveys
49.
Diary purchase panels are used primarily for all of the following purposes EXCEPT:
a. forecasting sales.
b. establishing consumer profiles.
c. evaluating test markets.
d. forecasting market share
e. establishing advertising rates. (difficult, page 128)
50.
For which of the following types of syndicated services do electronic devices automatically record behavior
that supplement a diary?
a. diary purchase panels
b. audit services
c. surveys
d. diary media panels (moderate, page 128)
e. online surveys
51.
The uses of diary media panels include all of the following EXCEPT:
a. establishing advertising rates.
b. selecting media programs or airtime.
c. determining market potential by geographic area. (difficult, page 128)
d. establishing view profiles.
e. a and b
52.
Household purchases are recorded through electronic scanners in supermarkets for which of the following
syndicated services?
a. surveys
b. diary media panels
c. scanner volume-tracking data (moderate, page 128)
d. audit services
e. sales tax monitoring
53.
Which of the following is NOT a primary use of scanner volume-tracking data?
a. forecasting sales (difficult, page 128)
b. price tracking
c. modeling
d. effectiveness of in-store modeling
e. b and c
49
54.
Scanner diary panels with cable TV are used primarily for all of the following purposes EXCEPT:
a. promotional mix analyses.
b. copy testing.
c. new product testing.
d. positioning
e. advertising theme selection. (difficult, page 128)
55.
Verification of product movement by examining physical records or performing inventory analysis are
characteristics of which of the following types of syndicated services?
a. surveys
b. audits (easy, page 128)
c. diary purchase panels
d. diary media panels
e. movement exams
56.
Relatively precise information at the retail and wholesale levels is an advantage of which of the following
syndicated services?
a. diary media panels
b. surveys
c. diary purchase panels
d. movement exams
e. audit services (moderate, page 128)
57.
The purposes of audit services include all of the following EXCEPT:
a. establishing consumer profiles. (difficult, page 128)
b. measuring consumer sales and market share.
c. analyzing distribution patterns.
d. tracking new products.
e. measuring competitive activity
58.
______________ refer to the psychological profiles of individuals and to psychologically-based measures
of lifestyle, such as brand loyalty and risk taking.
a. Psychometrics
b. Psychographics (moderate, page 130)
c. Demographics
d. Geo-demographics
e. Ego-profiling
59.
The distinctive models of living of a society or some of its segments refers to ______________.
a. geo-demographics
b. lifestyles (moderate, page 130)
c. psychometrics
d. demographics
e. usage segments
60.
According to the text, ______________ are the primary means of obtaining information about consumers'
motives, attitudes, and preferences.
a. surveys (moderate, page 131)
b. focus groups
c. secondary research
d. experiments
e. in-depth interviews
50
61.
Purchase panel respondents like those on NPD's Online Panel provide detailed information on all of the
following EXCEPT:
a. brand and amount purchased.
b. price paid.
c. special deals used.
d. store where purchased.
e. all of the above are provided by those NPD respondents. (moderate, page 133)
62.
Purchase panels provide useful information for all of the following EXCEPT:
a. forecasting sales.
b. estimating market shares.
c. assessing brand loyalty/switching behavior.
d. measuring promotional effectiveness.
e. attitudes and motives of consumers. (difficult, page 134)
63.
Panel data's advantages over survey data include all of the following EXCEPT:
a. changes in brand loyalty can be measured.
b. more committed respondents give more accurate information.
c. recall errors are eliminated when panelists record information at the time of purchase.
d. human errors are eliminated if electronic devices are used.
e. minorities and low-education groups are most always represented in sufficient numbers among
purchase panel respondents. (difficult, page 133)
64.
______________ are data obtained by passing merchandise over a laser scanner that reads the UPC code
from the packages.
a. Scanner data (moderate, page 134)
b. Secondary data
c. Qualitative data
d. Modular data
e. Cashier data
65.
Which of the following companies is (are) recognized as the largest syndicated firms specializing in the
collection of scanner data?
a. A.C. Neilsen
b. Microsoft (easy, page 134)
c. Information Resources
d. a and b
e. a, b, and c
66.
Scanner data that provides information on purchases by brand, size, price, and flavor or formulation are
called ______________.
a. segmenting data
b. volume-tracking data (moderate, page 135)
c. secondary data
d. modular data
e. audiologs
67.
Which of the following is (are) a type(s) of scanner data that currently available?
a. scanner diary panels
b. modular data
c. volume-tracking data
d. scanner diary panels with cable TV
e. a, c and d (moderate, page 135)
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68.
According to the text, ______________ are data routinely collected by supermarkets and other outlets with
electronic checkouts.
a. observational data
b. modular data
c. volume-tracking data (moderate, page 135)
d. experimental data
e. cashier data
69.
______________ collect scanner data wherein panel members are issued an ID card allowing panel
members' purchases to be linked to their identities.
a. Focus group panels
b. Modular group panels
c. Scanner diary panels (moderate, page 135)
d. Audit panels
e. Cashier panels
70.
The collection of product movement data for wholesalers and retailers is called ______________.
a. an audit (moderate, page 137)
b. a panel
c. a survey
d. a focus group
e. a movement exam
71.
______________ is a formal examination and verification of product movement carried out by examining
physical records or analyzing inventory.
a. An audit (moderate, page 137)
b. A panel
c. A survey
d. A focus group
e. A movement exam
72.
Which of the following describes the disadvantage of using audit data?
a. There are significant limitations associated with the extent to which audited data can be analyzed.
b. Audits provide relatively inaccurate data at the wholesale level.
c. There is a delay associated with compiling and reporting audited data. (difficult, page 138)
d. Audits provide relatively inaccurate data at the retail level.
e. Audits can be linked to consumer data.
73.
If a company is interested in determining the in-store shelf exposure of their brand versus competitive
brands, the most effective way to obtain this information is via:
a. scanner data.
b. in-store intercepts where consumers were observed purchasing a product in a particular category.
c. telephone interviews with individuals who made a recent category.
d. an audit. (moderate, page 138)
e. diary panel data from individuals making in the interested category.
74.
______________ provide secondary data derived from industrial sources that are intended for industrial
use.
a. Industry services (moderate, page 138)
b. Single-source services
c. Customized services
d. Retail services
e. Movement services
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75.
Which of the following companies is NOT involved with audits, or purchase or media panels in the US?
a. A.C. Neilsen
b. Simmons Market Research Bureau
c. Microsoft
d. NFO World Group
e. Information Resources (difficult, pages 133, 138)
76.
An effort to combine data from different sources by gathering integrated information on household and
marketing variables applicable to the same set of respondents is called ______________.
a. single-source data (moderate, page 140)
b. dual-source data
c. multiple-source data
d. qualitative data
e. cashier data
77.
Regarding supermarket loyalty cards, a shopper provides demographic and shopping-related information
when applying for the cards. At check-out, the UPC-coded loyalty cards are swiped prior to scanning the
items for purchase. Typically, databases gather the list of items that are scanned at check-out and match
them to the shopper's records.
a. Maintaining these databases reduce grocery-store profits by 11 per cent each year.
b. In 2004, Congress proposed legislation limiting loyalty card programs.
c. The supermarkets' data from these loyalty programs cannot be sold to syndicated research firms.
d. Forty per cent of supermarkets have reported increased in sales as a result of implementing their loyalty
card programs.
e. Most consumers are unaware that the supermarkets have all this information on them.
(moderate, page 140)
78.
Informed consent is an ethical principal ______________.
a. applying to the contracts between clients and research agencies.
b. applying primarily to syndicate firms.
c. dealing with requests for social security numbers from respondents.
d. where retailers don't take title to goods until they are purchased by customers.
e. requiring researchers to avoid both uninformed and misinformed participation in marketing
research projects. (moderate, page 143)
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Essay Questions
79.
In a short essay, list and discuss the three types of general surveys used to collect syndicated data.
Answer
a. Periodic surveys collect data on the same set of variables at regular intervals, each time sampling a
new group of respondents. Like longitudinal research, periodic surveys track change over time.
However, the changes due to variation in the respondent pool are not controlled in the way it is true for
longitudinal studies. A new sample of respondents is chosen, with each survey taken by the syndicate
firm. Once analyzed, the data are made available to subscribers.
b. Panel surveys measure the same group of respondents over time but not necessarily on the same
variables. A large pool of respondents is recruited to participate on the panel. From this pool, different
subsamples of respondents may be drawn for different surveys. Any of the survey techniques may be
used, including mail, telephone, or personal or electronic interviewing. The content and topic of the
surveys vary and cover a wide range. Panel surveys are used primarily because of their lower cost
compared to random sampling.
c. Shared surveys are developed and executed for multiple clients, each of whom shares the expenses.
The bulk of the shared survey will deal with questions of general interest to the client group. These
general questions are also typically supplemented with proprietary questions from each participating
client. This survey may be repeated at regular intervals, or it may be a one-time study. The sample
may be drawn from an omnibus panel or randomly from the population of interest. The primary
advantage of shared surveys is lower cost.
(moderate, pages 127-129)
80.
In a short essay describe the characteristics of a consumer diary panel and discuss the uses of this type of
panel. Next, list and discuss the two classifications of diary panels.
Answer
a. A diary panel is made up of a group of individuals, households, or organizations that record their
purchases and behavior in a diary over time. Households are continually being recruited and added to
the panel as respondents drop out of the study or are removed in order to rotate the panel. The makeup
of the panel is designed to be representative of the U.S. population in terms of demographics. These
panels are used to provide information useful for forecasting sales, estimating market shares, assessing
brand loyalty and brand switching behavior, establishing profiles of specific user groups, measuring
promotional effectiveness, and conducting controlled store tests. Based on the content of information
recorded, diary panels can be classified as diary purchase panels or diary media panels.
b. A diary purchase panel is a data-gathering technique in which respondents record their purchases in a
diary. A diary media panel is composed of samples of respondents whose television viewing behavior
is automatically recorded by electronic devices, supplementing the purchase information recorded in a
diary.
(moderate, pages 133-134)
81.
In a short essay, list and discuss the three types of scanner data.
Answer
a. Volume-tracking data are data routinely collected by supermarkets and other outlets with electronic
checkout counters. When the consumer purchases are scanned, the data are automatically entered into
a computer. These data provide information on purchases by brand, size, price, and flavor or
formulation, based on sales data collected from the checkout scanner tapes. However, this information
cannot be linked to background characteristics of consumers since their identities are not recorded
when their purchases are scanned.
b. Scanner diary panels provide each household member an ID card that can be read by the electronic
scanner at the cash register. The scanner panel members simply present the ID card at the checkout
counter each time they shop. In this way, consumer identity is linked to products purchased as well as
the time and day of the shopping trip, and the firm can build a shopping record for that individual.
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c. Scanner diary panels with cable TV combines diary panels with new technologies growing out of the
cable TV industry. Households on these panels subscribe to one of the cable TV systems in their
market. By means of a cable TV "split," the researcher targets various commercials into the homes of
the panel members. These panels allow researchers to conduct fairly controlled experiments in a
relatively natural environment.
(moderate, pages 135-136)
82.
In a short essay, describe an audit and list at least four uses of audit data.
Answer
A physical audit is a formal examination and verification of product movement carried out by examining
physical records or analyzing inventory. These audits track inventory flow, current inventory levels, and
the impact of both promotional and pricing programs on inventory levels. Standardized as well as
customized reports are available to help subscribers manage their brands. These reports provide information
that can be used to (1) determine market size and share for both categories and brands by type of outlet,
region, or city; (2) assess competitive activity; (3) identify distribution problems including shelf space
allocation and inventory issues; (4) develop sales potentials and forecasts; and (5) develop and monitor
promotional allocations based on sales volume.
(easy, pages 137-138)
83.
In a short essay, describe the uses of scanner data and list at least three advantages and three disadvantages
of using scanner data.
Answer
Scanner data are useful for a variety of purposes. National volume-tracking data can be used for tracking
sales, prices, distribution, modeling, and analyzing early warning signals. Scanner diary panels with cable
TV can be used for testing new products, repositioning products, analyzing promotional mix, and making
advertising and pricing decisions. These panels provide marketing researchers with a unique controlled
environment for the manipulation of marketing variables.
a. The advantages of using scanner data include having the data available more quickly and also that the
data is typically more accurate than data collected through either surveys or diary panels. Errors due to
failures in recall are also eliminated with electronic data collection. Another advantage is that in-store
variables such as pricing, promotions, and displays are also recorded. Finally, a scanner panel with
cable TV provides a highly controlled test environment for alternate promotional messages.
b. The disadvantages of using scanner data include its lack of representativeness. Another disadvantage
is that the quality of scanner data is only as good as the scanning process itself and may be limited.
With respect to scanner panels, the available technology permits the monitoring of only one TV set per
household. Hence, there is a built-in bias if the household has a second or third TV set because the
viewing of these additional sets is not considered. Also, the system provided information on TV sets in
use rather than actual viewing behavior.
(difficult, page 137)
84.
Compare and contrast the disadvantages of surveys, purchase and media panels, and scanner data.
Answer
The successful response will form a discussion around the following ideas synthesized in the matrix below:
Surveys
Panels
Scanner Data
(difficult, page 137)
Tendency for
Having a
Representative
Sample
Yes
No
No
Main Type of Field Error
respondent response error
respondent response error
check-out person recording errors
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