GENERAL CONTENT:
Multiple-Choice Questions
1. Despite
the data glut that marketing managers receive, they frequently complain that
they lack _____.
a. enough
information of the right kind
b. quality
information
c. timely
information
e. valid
information
(Answer: a; p. 97;
Easy)
2. An
MIS consists of people, equipment, and procedures to gather, sort, _____,
evaluate, and distribute information to marketing decision makers.
a. test
b. test
market
c. analyze
d. critique
e. assess
(Answer: c; p. 97;
Easy)
3. Your
firm has just developed its first successful MIS. It interacts with information
users to assess information needs, develop needed information, _____ the
marketing information, and help managers use it in their decision making.
a. distribute
b. collect
c. retrieve
d. store
e. validate
(Answer: a; p. 97;
Challenging)
4. The
marketing information system is not limited to use by the company it serves. It
may also provide information to _____.
a. the
government
b. external
partners
c. various
publics
d. competitors
e. none
of the above
(Answer: b; p. 97;
Moderate)
5. Marketers
must weigh carefully the costs of additional information against the _____
resulting from it.
a. uses
b. benefits
c. knowledge
d. rewards
e. cost
(Answer: b; p. 98;
Easy)
6. Four
common sources of internal data include the accounting department, operations,
the sales force, and the _____.
a. owners
b. stockholders
c. marketing
department
d. custodians
e. quality
control department
(Answer: c; p. 99;
Moderate)
7. Marketing
information from this type of database usually can be accessed more quickly and
cheaply than other information sources. Which one is it?
a. External.
b. MDSS.
c. EIS.
d. Internal.
e. Field
representatives.
(Answer: d; p. 99;
Easy)
8. This
systematic collection and analysis of publicly available information about
competitors and developments in the marketing environment is very useful. What
is it called?
a. Marketing
data.
b. Marketing
intelligence.
c. Web
Master.
d. Sales
and sales management.
e. Secondary
data.
(Answer: b; p. 99;
Moderate)
9. Which
of the following was not mentioned in your textbook as a source of marketing
intelligence?
a. Suppliers.
b. Resellers.
c. Key
customers.
d. Your
company reports.
e. Sales
force.
(Answer: d; p. 101;
Easy)
10. Which
of the following was not mentioned in your textbook as a source of marketing
intelligence?
a. Competitors’
garbage.
b. Buying
competitors’ products.
c. Monitoring
competitors’ sales.
d. Checking
for new goodwill.
e. Purchasing
agents.
(Answer: d; p. 101;
Moderate)
11. Your
competitor may reveal intelligence information through which of these sources
of information?
a. Annual
reports.
b. Trade
show exhibits.
c. Web
pages.
d. Press
releases.
e. All
of the above.
(Answer: e; p. 101;
Easy)
12. In
today’s information age, companies are leaving a paper trail of information
_____.
a. in
the wastebasket
b. online
c. in
annual reports
d. with
government agencies
e. that
is inaccessible
(Answer: b; p. 101;
Moderate)
13. To
combat marketing intelligence by competitors, Unilever Corporation is now providing
_____ to employees.
a. intelligence
training
b. privacy
blocks
c. protection
d. less
information
e. none
of the above
(Answer: a; p. 102;
Moderate)
14. Which
of the steps in the marketing research process has been left out: defining the
problems and research objectives, implementing the research plan, and
interpreting and reporting the findings?
a. Developing
the research budget.
b. Choosing
the research agency.
c. Choosing
the research method.
d. Developing
the research plan.
e. Comparing
and contrasting primary and secondary data.
(Answer: d; p. 102;
Moderate)
15. Your
colleague is confused about using the marketing research process. He seems to
be having problems with _____, which is often the hardest step to take.
a. defining
the problem
b. defining
the research objectives
c. defining
the problem and research objectives
d. researching
a research agency to help
e. C
and D
(Answer: c; p. 102;
Moderate)
16. The
objective of _____ research is to gather preliminary information that will help
define the problem and suggest hypotheses.
a. descriptive
b. exploratory
c. causal
d. corrective
e. descriptive
and exploratory
(Answer: b; p. 103;
Easy)
17. It
is important to note that research objectives must be translated into specific
_____.
a. marketing
goals
b. information
needs
c. dollar
amounts
d. results
that justify the means
e. time
allotments
(Answer: b; p. 103;
Easy)
18. The
research plan outlines sources of existing data and spells out the specific
research approaches, contact methods, _____, and instruments that researchers
will use to gather new data.
a. personnel
b. sampling
plans
c. budget
requirements
d. all
of the above
e. none
of the above
(Answer: b; p. 103;
Moderate)
19. The
way to begin marketing research is to gather secondary data, which consists of
information _____.
a. that
already exists somewhere
b. that
does not currently exist in an organized form
c. that
already exists somewhere, having been collected for another purpose
d. used
by competition
e. that
the researcher can obtain through surveys and observation
(Answer: c; p. 103;
Easy)
20. How
would you describe the primary data being used by your firm?
a. Collected
for the specific purpose at hand.
b. Original
information.
c. First-time
information.
d. Fresh
and perhaps more reliable than secondary data.
e. All
of the above.
(Answer: e; p. 105;
Easy)
21. Which
form of data can usually be obtained more quickly and at a lower cost?
a. Primary.
b. Census.
c. Secondary.
d. Syndicated.
e. Tertiary.
(Answer: c; p. 105;
Moderate)
22. Your
assistant wants to use secondary data exclusively for the current research
project. You advise him that the use of secondary data has some potential
problems. Which of the following is not one of them?
a. It
may not exist.
b. All
of the needed data is rarely available.
c. It
may not be useable.
d. It
is generally more expensive when purchased from the government.
e. You
do not know why it was originally collected.
(Answer: d; p. 105;
Challenging)
23. Primary
data must be relevant, current, unbiased, and _____.
a. complete
b. accurate
c. inexpensive
d. collected
before secondary data
e. valid
(Answer: b; p. 105;
Moderate)
24. Which
method of research can obtain information that people are unwilling or unable
to provide?
a. Observation.
b. Focus
groups.
c. Personal
interviews.
d. Fax
surveys.
e. Questionnaires.
(Answer: a; p. 106;
Easy)
25. Survey
research, called the backbone of primary research, is the most widely used
method for primary data collection and is best suited for gathering _____
information.
a. personal
b. preference
c. attitude
d. descriptive
e. exploratory
(Answer: d; p. 107;
Moderate)
26. Fredia
Pellerano has just discovered the major advantage of survey research. She reports
to her supervisor that it is _____.
a. flexibility
b. cost
effectiveness
c. quickness
to administer
d. understandability
e. simplicity
(Answer: a; p. 107;
Moderate)
27. Experimental
research is best suited for gathering _____ information.
a. unknown
b. causal
c. complicated
d. interactive
e. descriptive
(Answer: b; p. 107;
Challenging)
28. One
of the following is not a current survey research method. It is contact by
_____.
a. online
use
b. mail
c. telephone
d. fax
e. none
of the above
(Answer: d; p. 107;
Easy)
29. All
of the following are disadvantages of telephone interviewing except one. Which
one?
a. Higher
cost than mail questionnaires
b. Introduces
interviewer bias
c. Under
time pressures some interviewers might cheat
d. Interviewers
tend to interpret answers similarly
e. A
and C
(Answer: d; p. 108;
Challenging)
30.
Currently, you find yourself involved in marketing research. The form you are using is flexible, allows explanation of difficult questions, and lends itself to showing products and advertisements. What is this form of research?
Currently, you find yourself involved in marketing research. The form you are using is flexible, allows explanation of difficult questions, and lends itself to showing products and advertisements. What is this form of research?
a. Personal
interviewing.
b. Online
interviewing.
c. Vision
phone interviewing.
d. Mall
intercepts.
e. None
of the above.
(Answer: a; p. 108;
Easy)
31. Which
of the following is not an advantage of Web research?
a. Speed.
b. Low
costs.
c. Instantaneous
results.
d. All
of the above.
e. A
and C
(Answer: e; p. 109;
Easy)
32. DelRay
Pools and Spas is collecting marketing data through online (Internet) marketing
research. Management will have the choice of using Internet surveys, experiments,
or _____.
a. online
focus groups
b. individual
interviewing
c. hit
counting
d. questionnaire
responses
e. observations
(Answer: a; p. 109;
Challenging)
33. Judy
Hammerschmidt regularly conducts online marketing research at work. She has
found that it has several advantages over traditional methods. Which of these
is not an advantage?
a. Respondents
tend to be more honest.
b. It
is more cost efficient.
c. Report
generation turnaround time is much quicker.
d. There
is greater personal interaction.
e. Respondents
cannot remain anonymous.
(Answer: d; p. 109;
Challenging)
34. Marketing
researchers usually draw conclusions about large groups of consumers by
studying a small _____ of the total consumer population.
a. group
b. sample
c. population
d. target
group
e. audience
(Answer: b; p. 110;
Easy)
35. Why
would In The Mood Music Distributors choose a sampling of its customers to
research rather than all 1,500 of them?
a. Researching
all of them is too time-consuming.
b. Researching
all of them can be too expensive.
c. The
sample can fairly represent the entire population.
d. The
customers may all be similar.
e. All
of the above.
(Answer: d; p. 110;
Moderate)
36. Sampling
requires the answers to three questions. Choose the inappropriate one.
a. Who
is to be sampled (what sampling unit)?
b. How
many people should be surveyed (what sample size)?
c. Why
should they be sampled (justification)?
d. How
should the people be chosen (what sampling method)?
e. None
of the above.
(Answer: c; p. 110;
Challenging)
37. The
backbone of marketing research, or the most common instrument used, is the
_____.
a. mechanical
device
b. live
interviewer
c. questionnaire
d. teleinterviewer
e. Internet
(Answer: c; p. 110;
Easy)
38. In
creating research questionnaires, which of the following is good advice for
Mark Hammel, research specialist at New Wave Data, to follow?
a. Use
care in the wording and ordering of questions.
b. Questions
do not have to be arranged in a logical order.
c. Ask
difficult questions in the beginning to “weed out” uninterested respondents.
d. Ask
personal questions in the middle of the instrument.
e. Avoid
eye contact as it may confuse the respondents.
(Answer: a; p. 111;
Moderate)
39. Which
of the following was not mentioned in your text as a common mechanical
instrument used to conduct market research?
a. Supermarket
scanners.
b. People
meters.
c. Galvanometers
and eye cameras.
d. Telephones.
e. e. B
and C
(Answer: d; p. 111;
Moderate)
40. At
this point in your marketing research project, Mr. Barnes comments that the
_____ phase is generally the most expensive and the most subject to error.
a. exploratory
research
b. hypothesis
c. data
collection
d. interpreting
and reporting the findings
e. data
validation
(Answer; c; p. 113;
Challenging)
41. AMF
Research Group must guard against problems during the implementation phase of
marketing research for its clients. Typically, management will not encounter
which of these problems?
a. Contacting
respondents.
b. Respondents
who refuse to cooperate or give biased answers.
c. Interviewers
who make mistakes or take shortcuts.
d. Interpreting
and reporting the findings.
e. Primary
data that conflict with secondary data.
(Answer: d; p. 112;
Challenging)
42. Researchers
interpret and report findings to their managers. What might be a typical
problem the researcher might encounter when discussing the findings?
a. Managers
may be biased.
b. Managers
may accept results that support their preconceived notions.
c. Managers
may interpret the findings differently.
d. Managers
may not believe the findings.
e. All
of the above.
(Answer: e; p. 113;
Easy)
43. Analytical
models help analyze marketing information collected from research. These models
can help answer _____ and _____ questions.
a. short;
simple
b. what
if; which is best
c. relevant;
current
d. advanced;
difficult
e. none
of the above
(Answer: b; p. 113;
Challenging)
44. What
is the purpose of a data warehouse?
a. To
gather information.
b. To
integrate information a company already has.
c. To
interpret data.
d. To
analyze data.
e. To
discard old data.
(Answer: b; p. 114;
Moderate)
45. Tommy
Baker is in charge of customer relationship management for American Pie
Nostalgia. As a result of his effort in this area, his firm enjoys all of the
following except _____.
a. providing
higher levels of customer service
b. developing
deeper customer relationships
c. creating
offers tailored to specific customer requirements
d. understanding
competition better
e. understanding
how to better build the marketing mix
(Answer: d; p. 114;
Moderate)
46. Hiro
Chan knows that when CRM works well at his company, the benefits far outweigh
the _____ and _____.
a. time;
costs
b. time;
risks
c. efforts;
costs
d. costs;
risks
e. efforts;
risks
(Answer: d; p. 115;
Moderate)
47. Siebel
Systems claims that firms using its CRM software report an average of _____
percent increase in revenues and _____ percent increase in customer loyalty and
staff efficiency.
a. 14;
16
b. 15;
18
c. 16;
20
d. 16;
21
e. 20;
30
(Answer: d; p. 115;
Challenging)
48. Marketing
information has no value until it is used to _____.
a. satisfy
company objectives
b. make
better marketing decisions
c. make
management’s job easier
d. please
stockholders
e. please
customers
(Answer: b; p. 115;
Easy)
49. This
source of marketing information provides ready access to research information,
stored reports, shared work documents, contact information for employees and
other stakeholders, and more. What do we call this?
a. A
intranet.
b. An
extranet.
c. The
Internet.
d. An
internal database.
e. Marketing
intelligence.
(Answer: a; p. 115;
Moderate)
50. For
conservative small businesses and not-for-profit organizations, good marketing
information may be collected by simple _____.
a. purchase
b. observation
c. questioning
d. surveying
e. focus
groups
(Answer: b; p. 117;
Easy)
51. When
managers use small convenience samples such as asking customers what they think
or inviting a small group out to lunch to get reactions, they are using _____.
a. informal
surveys
b. experiments
c. observation
d. focus
groups
e. marketing
intelligence
(Answer: a; p. 117;
Moderate)
52. Small
organizations can obtain most of this type of data available to large
businesses with minimal effort. What type is it?
a. Census.
b. The
Internet.
c. Secondary.
d. Primary.
e. Business.
(Answer: c; p. 117;
Moderate)
53. You
have been asked to locate secondary data for current research needs. Which of
the following is not a common source for this type of research?
a. The
business section at the local library.
b. The U.S. Small
Business Administration.
c. The
Internet.
d. INS
records.
e. The
local Chamber of Commerce.
(Answer: d; p. 117;
Easy)
54. A
common problem in international marketing research is the availability of
_____.
a. primary
data
b. research
specialists
c. secondary
data
d. intelligence
limitations
e. consumers
across cultures to answer surveys
(Answer: c; p. 118;
Challenging)
55. In
general, domestic researchers deal with fairly homogeneous markets. Foreign
markets present the challenges of varying levels of economic development,
cultures and customs, and _____.
a. import
regulations
b. buying
patterns
c. dislike
of American goods
d. language
barriers
e. social
perceptions
(Answer: b; p. 118;
Moderate)
56. Because
of the scarcity of good secondary data, international researchers often must
collect their own primary data. An initial problem with this collection is
finding and developing good _____.
a. representative
samples
b. research
firms
c. rapport
with nationals
d. relations
with channel members
e. communication
methods
(Answer: a; p. 118;
Moderate)
57. What
do many researchers encounter when conducting market research in foreign
countries?
a. Some
countries have few telephones that limit access to respondents.
b. Some
countries have poor mail services.
c. Some
countries have poor roads that limit personal contacts.
d. Some
foreign cultures may not understand the value of marketing data.
e. All
of the above.
(Answer: e; p. 118;
Easy)
58. Cultural
differences, especially involving language, can add to research costs in
foreign markets and can increase the _____.
a. foreign
trade
b. risks
of error
c. likelihood
of not finding a translator
d. likelihood
that a smaller sample could be used
e. none
of the above
(Answer: b; p. 119;
Moderate)
59. A
common problem researchers find when going international is that consumers vary
in their _____ marketing research.
a. understanding
of
b. beliefs
in
c. attitudes
toward
d. appreciation
of
e. any
of the above
(Answer: e; p. 119;
Easy)
60. Even
when respondents in other countries are willing to respond to research
questions, they may not be able to because of _____.
a. high
functional illiteracy rates
b. language
barriers
c. lack
of availability
d. limitations
imposed by government
e. B
and D
(Answer: a; p. 119;
Easy)
61. Anna
Gregory just completed reading a marketing research report about the top 25
countries that purchase American products. What might the report say about
international research with these countries?
a. It
is on the decrease due to high costs.
b. The
costs are higher than the benefits.
c. There
is a lack of qualified research personnel.
d. There
is a growth in international research, and the costs of not doing it are high.
e. Their
interpretations of American quality are about the same.
(Answer: d; p. 119;
Moderate)
62. Choose
the statement that is not a typical consumer reaction to intrusion on consumer
privacy.
a. Sophisticated
researchers probe our deepest feelings.
b. Marketers
use this information to manipulate our buying.
c. Marketers
build huge databases full of personal information.
d. Marketers
make too many products and services available—it’s confusing.
e. None
of the above.
(Answer: d; p. 119;
Easy)
63. Your
text points out that _____ Americans worry that companies have too much of
consumers’ personal information and that _____ Americans feel their privacy is
compromised if that information is used to sell products.
a. fewer
than half of; fewer than half of
b. all;
fewer than half of
c. fewer
than half of; all
d. some;
no
e. almost
three-fourths of; about three-fourths of
(Answer: e; p. 121;
Moderate)
64. It
has been shown that consumers will gladly provide research information when
researchers provide _____.
a. coupons
b. money
c. value
for the exchange
d. prizes
e. any
of the above
(Answer: c; p. 122;
Challenging)
65. The
best approach for researchers to take to guard consumer privacy includes all of
the following except which one?
a. Ask
only for the information needed.
b. Use
information responsibly to provide value.
c. Avoid
sharing information without the customer’s permission.
d. Sell
the information only when it is worth it.
e. Fully
explain to the respondents how the information will be used.
(Answer: d; p. 122;
Easy)
66. Some
companies often use study results as claims in their _____.
a. advertising
b. promotion
c. A
and B
d. annual
reports
e. all
of the above
(Answer: c; p. 122;
Easy)
67. Many
research studies appear to be little more than vehicles for _____.
a. gathering
names for resale
b. pitching
the sponsor’s products
c. building
company image
d. tearing
down competition
e. training
future salespeople to work with people face-to-face
(Answer: b; p. 122;
Moderate)
68. Recognizing
that surveys can be abused, several research associations have developed _____
and _____.
a. research
conduct; standards of ethics
b. codes
of research ethics; standards of conduct
c. safeguards;
public policy
d. research
ethics; safeguards
e. stiff
fines; punishments for abusers
(Answer: b; p. 123;
Challenging)
69. Which
of the following statements is not true regarding information collected by
marketers?
a. Managers
lack information of the right kind.
b. Most
managers do not need more information.
c. Most
managers need better information.
d. Many
managers are burdened by data overload.
e. Managers
have the right information and they have enough of it.
(Answer: e; p. 97;
Moderate)
70. The
marketing information system can serve _____.
a. the
company’s marketing managers
b. suppliers
c. resellers
d. marketing
services agencies
e. all
of the above
(Answer: e; p. 97;
Easy)
71. Which
of the following statements regarding marketing intelligence is(are) true?
a. Marketing
intelligence is privately held information.
b. Much
intelligence is difficult or impossible to collect.
c. All
marketing intelligence is free.
d. Marketing
intelligence is publicly available information.
e. B
and D
(Answer: d; p. 99;
Moderate)
72. Managers
often start with _____ research and later follow with _____ research.
a. exploratory;
descriptive
b. exploratory;
causal
c. descriptive;
causal
d. A
and B
e. all
of the above
(Answer: d; p. 103;
Challenging)
73. Secondary
data are _____.
a. collected
mostly via surveys
b. expensive
to obtain
c. sometimes
not reliable
d. never
purchased from outside suppliers
e. always
necessary to support or refute the primary data collected
(Answer: c; p. 105;
Moderate)
74. Secondary
data must be _____.
a. relevant
b. accurate
c. current
d. impartial
e. all
of the above
(Answer: e; p. 105;
Easy)
75. Ethnographic
research _____.
a. comes
from traditional focus groups
b. provides
greater insights into buying behavior
c. provides
secondary data
d. is
most popular in the service sector
e. provides
data to marketers when observation is impossible
(Answer: b; p. 106;
Moderate)
True/False
76. In
the last decade, Coach has ignored marketing research when designing new bags.
(Answer: True; p. 96;
Easy)
77. Many
analysts believe that Coach’s exhaustive market research has failed to pay off.
(Answer: True; p. 96;
Easy)
78. Today,
marketing managers are viewing research information not only as an input for
making internal decisions but also as an input for external partners.
(Answer: True; p. 97;
Moderate)
79. Most
marketers today believe they still lack a sufficient quantity of research data
to make high-quality decisions.
(Answer: False; p. 97;
Easy)
80. An
effective MIS assesses information needs, develops needed information, and
distributes the information to help managers use it in decision making.
(Answer: True; p. 98;
Moderate)
81. Too
much information can be as harmful as too little.
(Answer: True; p. 98;
Easy)
82. When
you glean information from your company’s accounting and sales records stored
in the computer, you are developing an internal database.
(Answer: True; p. 99;
Moderate)
83. You
have just extracted sales and cost data used by the accounting department for
preparing financial statements. Most likely, this information should be
complete and in useable form to build an internal marketing database.
(Answer: False; p. 99;
Challenging)
84. It
is important to note that data age quickly, and keeping the database current
requires a major effort.
(Answer: True; p. 99;
Easy)
85. After
carefully questioning your major suppliers and resellers, you ascertain they do
not form important sources of intelligence information for marketing decision
making.
(Answer: False; p.
101; Challenging)
86. Your
manager asked you to go through three of your competitors’ garbage bins to
gather marketing intelligence from their discarded paperwork. One of them
caught you in the act and has summoned you to court. The judge will most likely
rule this to be an illegal activity and fine you and your company.
(Answer: False; p.
101; Challenging)
87. Good
sources of marketing intelligence information include competitors’ annual
reports, business publications, trade show exhibits, press releases,
advertisements, and Web pages.
(Answer: True; p. 101;
Moderate)
88. Your
firm faces determined marketing intelligence efforts by competitors. You take
the typical response by “letting it ride.”
(Answer: False; p.
101; Easy)
89. Marketing
research is conducted to systematically design, collect, and report data directly
relevant to a specific marketing situation facing the organization.
(Answer: False; p.
102; Moderate)
90. The
research and development department just released a report and commented that
“Defining the problem and research objectives is often the hardest step in the
research process.”
(Answer: True; p. 102;
Easy)
91. Once
the research problems and objectives have been defined, researchers must
determine the exact information needed and present it to management.
(Answer: False; p.
102; Challenging)
92. After
conducting formal marketing research for your department, you make an oral
presentation with notes to management. You are following normal marketing
research steps.
(Answer: False; p.
102; Moderate)
93. Marketing
researchers can conduct their own searches of secondary data sources today by
using commercial secondary data sources.
(Answer: True; p. 103;
Easy)
94. Secondary
data provide good starting points and often help to define problems and
research objectives, though most companies must also collect primary data.
(Answer: True; p. 105;
Moderate)
95. ABC
Interior Designs wants to collect research data through mechanical observation.
The three typical methods are video cameras, checkout scanners, and Internet
cookies.
(Answer: False; p.
111; Challenging)
96. A
single-source data system uses huge consumer panels and electronically monitors
survey respondents’ purchases and exposure to various marketing activities.
(Answer: True; p. 107;
Moderate)
97. Focus
groups use no interviewer to bias the answers, may produce more honest answers,
and can be used to collect large amounts of data at a low cost per respondent.
(Answer: False; p.
108; Moderate)
98. You
have decided upon a method of collecting research data with flexible
interviewing, whereby trained interviewers can explain difficult questions and
explore issues as the situation requires. Audio-visual aids can also be used.
We refer to this as focus group interviewing.
(Answer: False; p.
108; Moderate)
99. Parley
Trade Shows wants to use the latest technology in marketing research. You are
told this method is online (Internet) marketing research.
(Answer: True; p. 109;
Easy)
100. Ideally,
a sample should be representative so that the researcher can make accurate
estimates of the thoughts and behaviors of the larger population.
(Answer: True; p. 110;
Easy)
101. You
want to calculate confidence limits for sampling error. It would be best to use
nonprobability samples.
(Answer: False; p.
110; Challenging)
102. Marketers
all agree that questionnaires are the most common research instrument.
(Answer: True; p. 111;
Easy)
103. The
researcher interprets findings, draws conclusions, and reports those conclusions
to management. Ideally, we should present important findings that are useful to
the major decisions faced by management to prevent overwhelming them.
(Answer: True; p. 113;
Moderate)
104. You
have just identified the “touch points” of the 400 best customers in your
database. At this point, you want to manage detailed information about each of
them to maximize customer loyalty. You should use customer relationship
management (CRM).
(Answer: True; p. 113;
Challenging)
105. Buy-It-Lower
Stores has gained many benefits from CRM. If this company is typical, it will
realize how to provide higher levels of customer service and develop deeper
customer relationships. Management can also pinpoint low-value customers and
begin to eliminate them while tailoring offers to specific customers.
(Answer: False; p.
114; Challenging)
Essay
106. Discuss
the functions of a marketing information system (MIS).
A typical MIS consists
of people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision
makers. First, it interacts with information users to assess information needs.
Next, it develops needed information from internal company databases, marketing
intelligence activities, and marketing research. Then it helps users to analyze
information to put it in the right form for making marketing decisions and
managing customer relationships. Finally, the MIS distributes the marketing
information and helps managers use it in their decision making.
(p. 97; Moderate)
107. Marketers
can obtain needed information from internal data, marketing intelligence, and
marketing research. Explain some common sources for each of these.
Internal
databases are built upon statements and records from the accounting department.
Operations reports on production-related issues. Sales and marketing provide
data on resellers, competitors, buyer behavior, and the industry. These are
cheaper sources that are easy to access. Marketing intelligence is a collection
and analysis of publicly available data about competitors and developments in
the industry. It can come from quizzing employees, studying their ads and
annual reports, and analyzing their products. Marketers often need formal
studies of specific situations where they seek sources of secondary and primary
data to form decisions. The processes and methods used to collect the data
should fit the purpose and budget of the researching firm.
(p. 99; Moderate)
108. Describe
the basic marketing research process.
The
marketing research process involves: defining the problem and research
objectives, developing the plan, implementing the plan, and interpreting and
reporting the findings. Managers must know what is wrong and the causes in
defining the problem. Objectives must be reached: exploratory, descriptive, and
causal research. Next, the information needed and a plan for gathering and
presenting is made. Then, secondary and primary data must be collected to
compile and analyze. The important information must be presented to management
for decision making.
(p. 102; Moderate)
109. Provide
the advantages/benefits of each of the contact methods.
Mail
questionnaires can be used to collect large amounts of information at a low
cost per respondent. Respondents may give more honest answers to more questions
than to an unknown interviewer in person or on the phone. Also, no interviewer
is involved to bias the answers. Telephone interviewing is one of the best
methods for gathering information quickly and provides great flexibility.
Interviewers can explain difficult questions, skip questions, or probe on other
questions. Rates of response tend to be higher than mail methods. Personal and
group interviewing allow interviewers to guide respondents and explore issues
as they evolve, and they are flexible. Visual aids can be used, products can be
demonstrated, and reactions and behaviors can be observed. Computer-assisted
interviewing aids in eliminating interviewer bias. Online methods allow the
person to be more honest, the costs are greatly reduced, and reports come back
faster.
(p. 107; Challenging)
110. What
would a researcher need to know about drawing conclusions about large groups of
consumers by studying a small sample of the total population?
First,
it is imperative to determine who is to be surveyed. Next, we must determine
the sample size by deciding how many people need to be surveyed. Third, the
sampling procedure should be chosen to know how the respondents should be
chosen. The correct combination of secondary and primary data should be
researched to provide reliable information.
(p. 110; Easy)
111. How
can a company overcome the problem of gathering internal data for research
purposes when it is usually scattered widely across the organization?
Many
companies are using customer relationship management (CRM). CRM offers the
benefits of managing detailed information about individual customers and
carefully managing customer “touch points” in order to maximize customer
loyalty. By using sophisticated software and analytical tools, information
about customers can be integrated from all sources and analyzed in depth, and
the results can be applied to build stronger customer relationships. CRM integrates
everything that a company’s sales, service, and marketing teams know about
individual customers to provide a 360-degree view of the customer relationship.
(p. 113; Challenging)
112. Explain
the common problems that international marketing researchers encounter.
International
researchers deal with less homogeneous markets in and among countries. The
markets often vary greatly in their levels of economic development, their
cultures and customers, and their buying patterns. Good secondary data are
difficult to find in many foreign markets. More time and expense is involved in
gathering primary data. In addition, choosing representative samples and
finding methods of contacting them can be a formidable task. Cultural and
language differences can present obstacles in interpreting the data and drawing
realistic conclusions. Consumers’ attitudes in other countries may hinder the
process of collection.
(p. 118; Challenging)
113. Compare
and contrast closed-end questions and open-end questions for gathering data.
Closed-end questions
make it easier for respondents to choose among relevant answers. They are also
easier for the researcher to interpret and tabulate. Open-end questions allow
respondents to answer in their own words and as such do not limit their
choices.
(p. 111; Easy)
114. Explain
the importance of information to the company and its understanding of the
marketplace.
The marketing process
starts with a complete understanding of the marketplace and consumer needs and
wants. Thus, the company needs sound information in order to produce superior
value and satisfaction for consumers. The company also requires information on
competitors, resellers, and other actors and forces in the marketplace.
Increasingly, marketers are viewing information not only as an input for making
better decisions but also as an important strategic asset and marketing tool.
(p. 124; Moderate)
115. Discuss
the special issues some marketing researchers face, including public policy and
ethics issues.
Some marketers face
special marketing research situations, such as those conducting research in
small business, nonprofit, or international situations. Marketing research can
be conducted effectively by small businesses and nonprofit organizations with
limited budgets. International marketing researchers follow the same steps as
domestic researchers but often face more and different problems. All
organizations need to respond responsibly to major public policy and ethical
issues surrounding marketing research, including issues of intrusions on
consumer privacy and misuse of research findings.
(p. 116; Challenging)
APPLICATION CONTENT:
Multiple-Choice Questions
116. You
have decided to model your marketing strategy after Coach’s strategy. You
recognize that it is time for an extreme makeover. Where do you start?
a. Being
with a price change.
b. Begin
with a package change.
c. Add
new and improved features to your products.
d. Begin
with marketing research.
e. None
of the above.
(Answer: d; p; 96;
Moderate)
117. A
good MIS balances the information users would _____ against what they really
_____ and what is _____.
a. need;
like; feasible
b. like;
can afford; needed
c. like
to have; need; feasible to offer
d. need;
can afford; useful
e. use;
have to use; available
(Answer: c; p. 98;
Challenging)
118. Harold
Younger has found that his MIS at work sometimes cannot provide the information
his firm needs. If the reasons are not because it is not available, or cost is not
a problem, then what must the reason be?
a. MIS
limitations.
b. Lack
of knowledge of using it.
c. Faulty
equipment.
d. All
of the above.
e. None
of the above.
(Answer: a; p. 98;
Moderate)
119. Diana
Dion is currently researching data sources from within her company to make
marketing decisions. Diana is making use of _____ databases.
a. external
b. current
c. historical
d. internal
e. foreign
(Answer: d; p. 99;
Easy)
120. Your
marketing department is attempting to improve strategic decision making, assess
and track competitors’ actions, and provide early warning of opportunities and
threats. Your department would do well to use _____.
a. internal
databases
b. external
databases
c. marketing
intelligence
d. the
Internet
e. company
reports only
(Answer: c; p. 99;
Challenging)
121. Harvard University is
using the systematic design, collection, analysis, and reporting of data
relevant to marketing its programs to minority students. What do we call this?
a. Promotion.
b. Self-study.
c. Marketing
research.
d. Cost-benefit
analysis.
e. Identifying
the target market.
(Answer: c; p. 102;
Challenging)
122. Patti
Lovelace is making a presentation to the owners of her company. She is trying
to convince them to conduct some current marketing research. Which of the
following would she NOT emphasize as a benefit or selling point?
a. Assess
market potential and market share.
b. Understand
customer satisfaction and purchase behavior.
c. Measure
the effectiveness of pricing and accounting.
d. Measure
the effectiveness of distribution and promotion activities.
e. None
of the above.
(Answer: c; p. 102;
Challenging)
123. You
are to the point of testing hypotheses about decreasing sales in certain
markets and their causes. You are involved in what type of research?
a. Exploratory.
b. Descriptive.
c. Causal.
d. Focus
group.
e. Market.
(Answer: c; p. 103;
Easy)
124. Loft
Industries sells roof trusses to contractors and builders and uses observation
in its marketing research. Which of the following methods would be best for
this firm?
a. People
meters.
b. Checkout
scanners.
c. Cookies.
d. Mechanical
observation.
e. Marketing
intelligence.
(Answer: d; p. 111;
Challenging)
125. ABC
Company has decided to use mail questionnaires to collect large amounts of
information. Management recognizes this method has all the following advantages
except one. Can you locate it?
a. Low
cost per respondent.
b. May
provide more honest answers.
c. Has
an average response rate.
d. No
interview to bias respondents’ answers.
e. B
and D
(Answer: c; p. 107;
Challenging)
126. Focus
group interviewing has become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, if the sample size is
small, it may be difficult to _____.
a. find
a representative sample
b. generalize
from the results
c. administer
the questions
d. orchestrate
cooperation
e. find
enough secondary data to support the findings
(Answer: b; p. 108;
Moderate)
127. Typically,
customer information is buried deep in separate databases, plans, and records
of many different company functions and departments. To overcome such problems,
which of the following could you try?
a. Customer
satisfaction measurement.
b. More
sophisticated software.
c. Customer
relationship management.
d. Synergetic
meetings of the minds.
e. Avoid
marketing intelligence.
(Answer: c; p. 113;
Moderate)
128. As
a small business consultant, you recommend to your clients that they use the
no-cost method of observation to gather market research. Which of the following
are you NOT likely to recommend they do?
a. Observe
vehicle and pedestrian traffic.
b. Monitor
competitors’ advertising from local media.
c. Evaluate
their customer mix—how many and what kind of customers.
d. Hire
additional staff to observe extensively.
e. A
and B
(Answer: d; p. 106;
Easy)
129. Juanita
Petino operates a dress shop in a suburban mall. Her research budget is very
small, and thus she utilizes low-cost or no-cost methods to gather research
data. One method that works very well for her is to change the themes in her
local newspaper and radio advertising and watch the result. Juanita is using
_____ to gather data for marketing decisions.
a. informal
surveys
b. experiments
c. guess
work
d. logic-directed
research
e. causal
analysis
(Answer: b; p. 107;
Easy)
130. A
recent article in the Wall Street Journal commented on two major
public policy and ethical issues in marketing research. What are they?
a. Child
pornography and spam.
b. Intrusions
on consumer privacy and misuse of research findings.
c. Misuse
of research findings and spam.
d. Selling
of personal information to other firms and intrusions on consumer privacy.
e. Ethnography
and the misinterpretation of it.
(Answer: b; p. 119;
Challenging)
131. American
Express views privacy as a way to gain _____.
a. higher
customer approval
b. higher
sales
c. loyalty
d. a
competitive advantage
e. B
and C
(Answer: d; p. 122;
Challenging)
132. For
a marketer deciding where to relocate within the city, the research will most
likely use _____.
a. traffic-flow
patterns in specific areas
b. lifestyle
characteristics found in the city
c. past
sales data
d. competitors’
sales data
e. ways
to repackage the marketer’s products
(Answer: a; p. 103;
Easy)
133. Fifty
percent of the respondents surveyed preferred diet soft drinks over regular
soft drinks. Fifty percent of those preferring diet soft drinks were also
smokers; fifty percent of those preferring regular soft drinks were smokers. A
researcher might conclude that _____.
a. Smokers
are more weight-conscious than nonsmokers.
b. There
is no correlation between preferring diet soft drinks and being a smoker.
c. Most
nonsmokers will eventually prefer diet soft drinks.
d. There
is too much information but it is the wrong kind.
e. Manufacturers
of diet soft drinks should target smokers.
(Answer: b; p. 113;
Challenging)
134. You
want to find out whether Americans between 21 and 40 years of age tend to vote
democratic and whether Americans between 41 and 70 tend to vote republican. You
will most likely use _____ to collect your data.
a. observation
b. mechanical
devices
c. a
sample
d. people
meters
e. checkout
scanners
(Answer: c; p. 110;
Moderate)
135. You
have decided to use only closed-end questions on your survey. Which of the
following questions would not be found on your survey?
a. Do
you like chocolate?
b. What
is your gender?
c. Do
you work full- or part-time?
d. Why
don’t you like your teacher?
e. In
what month do you plant your garden?
(Answer: d; p. 111;
Moderate)
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