Test Bank
Chapter 5 Secondary Sources of Marketing Data
True-False
1.
Information is data which answer the specific questions of the
decision maker.
T
2.
The researcher who is not familiar with basic sources of marketing
data may lose time in searching for nonexistent data or in
collecting data which are already available.
T
3.
Sales reports are an example of input data.
F
4.
Budgets are an outcome of an internal accounting and control system
and are termed outcome data.
F
5.
One of the problems in applying accounting data to marketing
information needs is that unit breakdown, such as geographic areas
or product types, may differ.
T
6.
A consistent advantage to data found in internal records is that of
high reliability.
F
7.
Data which are relevant, complete, and inaccessible are of no use to
a researcher.
T
8.
Complaint letters are an important source of customer feedback
because those who take the time to write are representative of the
entire population of consumers for a particular product.
F
9.
Data on orders received or invoices billed should be used carefully.
These figures will not always correspond to sales.
T
10.
The most popular source of marketing data is secondary data. Even
when primary data must be collected, it is good practice for a
researcher to consult an appropriate secondary source.
T
11.
After a survey has been completed, the demographic distribution of
respondents in the sample can always be compared to census data.
F
12.
Basic rules to guide the search for secondary sources are: (1) to
start with the specific and go to the general and, (2) to make use
of all available expertise.
F
13.
Trade association publications should be avoided because the source
of their information is biased.
F
14.
A directory or compilation is an intermediate source which gives a
researcher access to an original source. An example of this is the
"Statistical Abstract of the United States," which contains sections
from the census and other agency data.
T
15.
The dangers facing the user of computer search methods are those of
missing important information and being overwhelmed by irrelevant
data.
T
16.
The primary advantage to computer retrieval methods is that crossreferenced searching is possible. This type of search is nearly
impossible without the computer.
F
17.
A researcher should be extremely careful when using data from
sources that do not describe the data collection methodology.
T
1
18.
Because there is often a time lag between data collection and
publication, the researcher should pay careful attention to when the
data are collected.
T
19.
The researcher should be aware of the fact that two sources using
different methodologies cannot be expected to arrive at the same
kind of data.
F
20.
The United States Bureau of Census does censuses on business,
manufacturing, agriculture, population, housing, mineral industries,
transportation, and government at different time intervals.
T
21.
From smallest to largest, the units of census data are the city
block, the block group, and the census tract. Census tracts are
grouped in urban areas to form Standard Metropolitan Statistical
Areas.
T
22.
The Standard Industrial Classification System is a uniform numbering
system for classifying establishments according to their economic
activities.
T
23.
The PRIZM system for market cluster analysis is based on the fact
that people of widely varying sociological backgrounds may be found
within a single geographical area.
F
24.
Source databases provide complete text or numeric information in
contrast to the indices and summaries contained in the reference
database.
T
25.
The Standard Industrial Classification System is a uniform system of
classifying establishments based on the types of goods and services
they provide.
T
26.
Secondary data is data specified, collected, and recorded by someone
other than the user.
T
27.
Primary data can be a valuable source of new ideas which can be
explored later through primary research.
F
28.
A customer database is raw information on the customer that can be
sorted and enhanced to produce useful information.
T
29.
The main limitation of the reference databases is the reliance on
the accuracy of the abstract author.
T
30.
Census is a mandatory enumeration conducted by the government of the
important facts about their population and the economic and social
environments.
T
31.
In some cases secondary data can be more accurate than primary data.
T
32.
Complaint letters are also used as sources of data on product quality
and service problems.
T
Multiple Choice
1.
The United States Bureau of Census conducts their Census of
Population and Housing every ______ years:
a) 1
b) 2
c) 5
d) 10
e) odd-numbered
d
2
2.
Compared to primary data, the two advantages of secondary data are they:
a) can be gathered quickly and inexpensively
b) are generally more objective and accurate
c) are generally more objective and accurate
d) are always internal to the firm and more relevant to the firm’s problems
e) none of the above
3.
Data that were initially generated for a purpose other than solving the
problem at hand are termed:
a)
b)
c)
d)
e)
4.
a
e
exploratory data
survey data
descriptive data
qualitative data
secondary data
As the manager of a fast food restaurant, you need information on brand
switching behavior. Which source do you use?
a) A restaurant audit
b) A Census of Business
c) A mail diary panel
d) A restaurant audit and a Census of Business
e) None of the above
c
5.
Secondary data cannot be used for which of the following?
a) interpret primary data
b) demonstrate causal relationship
c) identify problem
d) all of the above
b
6.
Which of the following is not used to evaluate the usefulness of secondary data?
a) content of data
b) purpose for which the data is collected
c) extent to which it agrees with the primary data
d) source of data
c
7.
Which one of the following provides a standard source of recurring data?
a) guides
b) census
c) directories
d) indexes
a
8.
Which of the following is the ideal method to collect data on lifestyles and
psychographics?
a) census data
b) surveys
c) diary panels
d) scanner data
b
9.
Which of the following sources of data should be looked first?
a) primary data
b) external secondary data
c) internal secondary data
d) census data
c
10.
Internal records have all of the following characteristics except:
a. ready availability.
b. absolute reliability.
c. relevance to the organization's marketing environment.
d. accessibility on a continuing basis.
e. all of these are characteristic of internal records.
b
3
11.
Which of the following statements about internal records is false?
a. Internal records provide data on marketing inputs and outputs.
b. The data in internal records are intended to satisfy many
different information needs and may be inappropriate for
marketing decisions.
c. The time frames in which variables such as sales are measured
will always correspond to those used in external data.
d. Records of sales staff activity may be exaggerated.
e. Sales invoices may not always correspond to actual sales.
c
12.
Which of the following is not true about complaint letters?
a. Complaint letters are sources of data on product quality and
service problems.
b. Complaint letters represent an incomplete and distorted picture.
c. People who write complaint letters are likely to be highly
educated and articulate.
d. Complaint letters are the most commonly used method for consumers
to resolve a dissatisfaction.
e. All of these are true about complaint letters.
d
13.
Secondary data may do all of the following except:
a. eliminate the need for primary data whenever the required data
are specific and topical.
b. expand a researcher's understanding of a problem.
c. suggest research design alternatives.
d. provide a means of validating a sample.
e. secondary data do all of these.
a
14.
Which of the following can be used in locating secondary sources?
a. authorities.
b. directories.
c. computer-retrievable databases.
d. a good reference librarian.
e. all of these should be used in locating secondary sources.
e
15.
A researcher should keep in mind that the use of the computerretrieval method is limited by:
a. the slow pace of display after the actual computer search has
been done.
b. inaccessibility to worldwide information services.
c. the fact that information is always available in published form
before it is put on a computer.
d. its dependence on the accuracy of an abstract or citation author.
e. all of these.
d
16.
In using secondary sources, it is important for a researcher to know:
1. the resources and reputation of the organization
reporting the data.
2. whether the data were collected to serve the interests of
a particular group.
3. the methodology used to collect the data.
a. 1
b. 2
c. 3
d. 1, 2, and 3
e. 1 and 2
d
17.
All of the following are units used to aggregate census data except
the:
a. Standard Metropolitan Statistical Area.
b. block group.
c
4
c. suburban tract.
d. block.
e. all of these are used to aggregate census data.
18.
Syndicated services are not able to provide information on products:
a. through retailers, as provided by store audits.
b. searched for by customers, as provided by customer complaints.
c. through wholesalers, as provided by warehouse withdrawal
services.
d. purchased by consumers, as provided by consumer purchase panels.
e. none of the above.
b
19.
Data that has been specified, collected, and recorded by someone:
other than the user are known as
a. historical data.
b. external data.
c. primary data.
d. secondary data.
e. tertiary data.
d
20.
Which one of the following is not an external data source?
a. Government reports
b. Trade association journals
c. Companies' annual reports
d. Newspapers
e. Customer feedback
e
21.
A uniform numbering system for classifying establishments according
to the types of goods and services they provide is:
a. Market Identifiers.
b. Standard Industrial Classification.
c. Compustat services.
d. Valueline database.
e. Economic Information System.
b
22.
A___________ is a service that identifies groups of consumers who
share demographic and lifestyle characteristics:
a. PRIZM
b. Dun's market identifier
c. Standard Industrial Classification
d. Economic Information System
e. Arbitron Panel
a
23.
The major use(s) of secondary data in international marketing
research is:
1. selecting countries that merit in-depth investigation.
2. determining the initial estimate of demand potential.
3. monitoring environmental changes.
a. 1
b. 2
c. 3
d. 1 and 2
e. 1, 2, and 3
e
5