Deck 6: Global Information Systems and Market Research

Question 1

An ________ is a company's private data network,accessible only by authorized persons inside the organization.

A)EDI
B)Internet
C)intranet
D)EPOS
E)ECR

Answer 1

C

Question 2

By combining household information with weekly purchase behavior data,Tesco is able to tailor promotions to specific customer segments.

Answer 2

True

Question 3

Big data can be used in collecting information about buyer behavior and the overall business environment,which is vital in making effective managerial decisions.Giving reasons illustrate how this can be accomplished.

Answer 3

When researching a market,seeking a solution to any problem,or trying to answer key questions,marketers must know where to go to obtain information.They must also know what subject areas to investigate and what information to look for,the different ways to acquire information,and the various types of analyses that will yield important insights and understanding.With the availability of big data,marketers have a well of market information available via information technology,such as the Internet.A few keystrokes can yield literally hundreds of articles,research findings,and Web sites that offer a wealth of information about marketing-related issues.Even so,marketers must do their homework if they are to make the most of modern information technology.First,they need to understand the importance of information technology and marketing information systems as strategic assets.Second,they should have a general understanding of the formal market research process.Finally,they should know how to manage the marketing information collection system and the marketing research effort.

Question 4

Retailers are increasingly using a technique known as efficient consumer response (ECR)in an effort to work more closely with vendors on stock replenishment.

Question 5

Gathering data is an end in itself.

Question 6

EDI links with vendors to enable retailers to improve inventory management and restock hot-selling products in a timely,cost-effective manner.

Question 7

An ________ system allows a company's business units to submit orders,issue invoices,and conduct business electronically with other company units as well as outside companies.

A)Internet
B)intranet
C)ECR
D)EDI
E)EPOS

Question 8

CRM tools do not help companies in determining:

A)warranty of products sold to consumers.
B)amount paid by consumers in different countries.
C)which customers are very demanding.
D)the use of credit cards for payment.
E)the use of laptop computers by customers.

Question 9

Direct sensory perception provides a vital background for the information that comes from human and documentary sources since:

A)it provides secondhand information.
B)it is easy and the most economical way of collecting data.
C)it means firsthand seeing,feeling,hearing,smelling,and tasting.
D)it involves reading and reviewing documents.
E)top executives are involved in getting firsthand information.

Question 10

The music industry's use of big data shows how information about buyer behavior and the overall business environment is vital to effective managerial decision making.All of the factors listed below facilitate decision making for music industry except:

A)musicians can interact with fans via social networks.
B)big data allows record executives and band managers to find patterns and discern market trends.
C)big data allows executives to see what factors "move the needle" across a variety of metrics.
D)data analytics permit record company executives to overlay information about an artist's appearance on a TV show.
E)big data helps in increasing revenues from paid downloads.

Question 11

Which of the following can be defined as a business philosophy that values two-way communication between a company and individual customers?

A)ECR
B)CRM
C)EDI
D)EPOS
E)BOLD

Question 12

CRM tools allow companies such as Credit Suisse,AT&T,Hewlett-Packard and others to determine:

A)warranty of products sold to consumers.
B)amount paid by consumers in different countries.
C)which customers are most valuable.
D)the use of credit cards for payment.
E)the use of laptop computers by customers.

Question 13

The reasons why a majority of recording artists are struggling to adapt to the new music economy include all of the following except:

A)musicians can interact with fans via social networks.
B)artists do not see significant financial returns even after a song is streamed millions of times.
C)the majority of recording artists do not come close to achieving the same level of global success as Swift,Adele,Cardi B,Ed Sheeran,or Jay-Z.
D)to supplement their incomes,many artists have opted to tour constantly,hoping to generate income from ticket and merchandise sales.
E)the music industry has embraced information science and big data.

Question 14

A "touchpoint" provides important data about consumers.

Question 15

Which of the following is an IT tool designed specifically to help retailers work more closely with vendors on stock replenishment?

A)BOLD
B)ECR
C)data warehouse
D)projection
E)EDI

Question 16

One challenge of using CRM is:

A)integrating data into customer relationships.
B)knowing amount paid by consumers in different countries.
C)understanding which customers are most valuable.
D)assessing the use of credit cards for payment.
E)knowing the use of laptop computers by customers.

Question 17

Using big data analytics,Netflix knows that twenty-something males have viewing habits that many people would associate with 70-year-old females,and vice versa.

Question 18

One of the key features of an EDI (Electronic Data Interchange)system is:

A)it allows easy access to all company data to vendors.
B)its transaction formats are universal.
C)it allows third-party transmission connections to company data.
D)it saves both time and money by using different languages.
E)vendors receive orders by voice mail.

Question 19

CRM tools allow companies like American Express,Dell,Sharp,and Sony to determine which customers are most valuable and to react in a timely manner with customized products and service offerings that closely match customer needs.

Question 20

To prevent the most value-conscious shoppers from defecting to Walmart,Tesco mined its database to identify Clubcard users who buy the lowest-priced grocery items.

Question 21

When Mattel first introduced Barbie in Japan,managers assumed that Japanese girls would find the doll's design just as appealing as American girls did.This may be due to:

A)Barbie's physical features such as long legs and blonde hair.
B)Barbie being a symbol of American lifestyle.
C)the SRC tendency on the part of American managers.
D)the SRC tendency on the part of Japanese consumers.
E)the limited competition for dolls in Japan.

Question 22

Anyone undertaking a market research project should understand that the first step is:

A)setting the budget.
B)determining the methodology to use.
C)deciding who will see the final report.
D)defining the problem.
E)determining information requirements.

Question 23

Potential markets can be subdivided into:

A)latent and parallel markets.
B)existing and incipient markets.
C)latent and incipient markets.
D)existing and latent markets.
E)incipient and existing markets.

Question 24

Global competition intensifies the need for effective MIS and business intelligence that are accessible throughout the company.How can IT provide valuable tools in fulfilling this need as well as conducting global marketing research?

Question 25

Africa represents a huge untapped market for shoes since most people walk barefoot.Thus,it will be easy to alter entrenched consumer behavior patterns if shoes are available.

Question 26

Direct perception can be important when a global player dominates a company's domestic market.

Question 27

Marketer's should be aware of the impact of self-reference criterion (SRC)and other cross-cultural assumptions.The advantages of such awareness include all of the following except:

A)it can enhance management's willingness to conduct market research.
B)it can enhance management's receptiveness to research findings.
C)it can help marketer's contradict "tried-and-true" marketing experience in other markets.
D)it can ensure that the research effort is designed without any bias.
E)it can ensure that the research effort is not affected by home-country findings.

Question 28

For research,the unit of analysis can be a single country or region;however,for all market-entry decisions,________ data are not required.

A)specific city
B)statewide
C)provincial
D)districtwide
E)countrywide

Question 29

Marketers must be aware of the impact of SRC and other cultural assumptions since:

A)it can have several positive effects on market planning.
B)it enhances management's willingness to pursue market research.
C)it can help ensure that the research effort is designed with minimal home-country bias.
D)it can help ensure that the research effort is designed with minimal second-country bias.
E)All of the above are correct.

Question 30

Market research is the project-specific,systematic gathering of data and is the activity that links the consumer,customer,and public to the marketer through information.

Question 31

Which of the following environmental factors may require marketers to adjust their approach to conducting international as opposed to domestic marketing research?

A)Researchers must be prepared for new parameters of doing business.
B)Company personnel must come to grips with a new set of culture-based assumptions about conducting business.
C)Research may help reduce psychological overload.
D)Researchers may have to broaden the definition of competitors to include competitive pressures not present in the domestic market.
E)All of the above

Question 32

Problems faced by small markets around the world in collecting research data can be overcome by all of the following ways except:

A)devise inexpensive research techniques and methods.
B)estimate demand by using the economic and demographic relationships.
C)use inexpensive survey research sacrificing statistical rigor.
D)get information from selected individuals who may be familiar with demographics.
E)use methods sacrificing elegance in order to minimize expenses.

Question 33

The first step in formulating and conducting research is to:

A)define the problem.
B)collect information.
C)select unit of analysis.
D)examine data availability.
E)design research.

Question 34

Direct sensory perception provides a vital background for the information that comes from human and documentary sources.

Question 35

What are the secondary sources of data and how do these sources differ from primary sources? Give examples of sources from which secondary data can be obtained.

Question 36

A Safe Harbor agreement establishes principles for privacy protection.

Question 37

All of the following represent keys to success of Tesco's Clubcard except:

A)Tesco's Clubcard is a loyalty program that the U.K.-based grocery store chain uses to reward customers;shoppers receive points based on purchase amounts.
B)for every 100 points accumulated,shoppers receive a £1 voucher that can be redeemed for future grocery purchases or used with airline frequent-flyer programs.
C)traditional shoppers who buy ingredients to prepare home-cooked meals gravitated toward "Tesco's Finest" label.
D)by combining household information with weekly purchase behavior data,obtained by the Clubcard,Tesco is able to tailor promotions to specific customer segments.
E)Clubcard gives Tesco a tactical advantage over Walmart's Asda stores.

Question 38

For consumer products,qualitative research is especially well suited to:

A)get close to the consumer.
B)describe the cultural context of consumer behavior.
C)identify core brand equity.
D)identify what people really feel.
E)all of the above

Question 39

Although environmental scanning is a vital source of information,research has shown that headquarters executives of global companies obtain as much as two-thirds of the information they need from:

A)government publications.
B)professional publications.
C)trade publications.
D)census data.
E)personal sources.

Question 40

The U.S.government's most comprehensive source of world trade data is:

A)National Trade Data Base (NTDB).
B)Census Bureau.
C)Bureau of Economic Analysis.
D)Eurostat.
E)Gross Domestic Product (GDP).

Question 41

In 1998,U.K.-based retailer Marks & Spencer closed its office in Shanghai and tabled plans to commence operations there.After 3 years of research,they concluded that the timing is not right.The majority of their customers are from middle-income groups.Within a decade,however,China's emerging middle class represented an attractive opportunity.Marks & Spencer opened its first store in Shanghai in 2008;by 2017,there were 10 stores.However,when its sales stalled,the company pulled out of China for the second time.Part of the problem: low brand awareness,plus the fact that many Chinese shoppers preferred "fast-fashion" brands such as Zara and H&M.China was considered as a(n)________ market in both instances.

A)latent
B)incipient
C)cluster
D)existing
E)primary

Question 42

For consumer products,qualitative research is especially well suited to accomplish all of the following tasks except:

A)provide consumer understanding.
B)describe the social and cultural context of consumer behavior.
C)identify core brand equity and brands.
D)assess consumer spending trends.
E)determine what consumers really feel.

Question 43

Which of the following is not recommended by expert David Arnold for companies engaged in global market research?

A)use multiple indicators
B)develop customized measures specific to an industry or product
C)conduct comparative assessments in neighboring countries
D)observation should be weighted more heavily than statements of purchase intention
E)assess a particular market in isolation

Question 44

When a trained person is recording items selected in a grocery cart or basket,the research method is known as:

A)observation.
B)survey research.
C)focus study.
D)secondary data collection.
E)personal interviews.

Question 45

One study compared consumer-shopping attitudes in the United States,Jordan,Singapore,and Turkey.Data for the latter three countries were gathered from convenience samples recruited by an acquaintance of the researcher.Although data gathered in this way are not subject to statistical inference,they may be adequate to address the problem.In this study,for example,the researchers were able to identify a clear trend toward cultural convergence in shopping attitudes and customs that cut across modern industrial countries,emerging industrial countries,and developing countries.The sample obtained in this case is referred to as a:

A)probability sample.
B)convenience sample.
C)secondary sample.
D)focus group sample.
E)quota sample.

Question 46

Mattel Toys thought that Barbie would be as popular in Japan as it is in the United States.This assumption was due to the self-reference criterion (SRC).

Question 47

The decision by Toyota executives to introduce the Sienna minivan in the U.S.market was based on their study of a(n)________ market.

A)existing
B)latent
C)parallel
D)incipient
E)global

Question 48

When the Coca-Cola Company used the "micro-dosing technology" that allows for 170 possible drink combinations,the user data generated by the units helped in developing a new flavor: Cherry Sprite.This is an example of collecting ________ data.

A)primary
B)secondary
C)incipient
D)quantitative
E)MIS

Question 49

Which of the following is an inaccurate description of secondary data use in global markets?

A)It was not gathered specifically for the research project at hand.
B)It is often so expensive that small companies cannot afford to access it.
C)It can be accessed quickly.
D)A great deal is available from government agencies.
E)It cannot be retrieved online.

Question 50

Companies wishing to minimize the cost and effort associated with market research should start by collecting and analyzing primary data.

Question 51

Emerging markets present a number of challenges to anyone conducting market research,which includes all of the following except:

A)underdeveloped technology infrastructure.
B)geographic issues.
C)data-gathering methodologies.
D)privacy issues.
E)lack of field teams.

Question 52

When a survey questionnaire in English is translated into Korean for use in South Korea and then translated into English,it is described as:

A)incipient translation.
B)comparative translation.
C)native translation.
D)parallel translation.
E)back-translation.

Question 53

Predicting economic and income growth rates is particularly important when researching which type of market?

A)existing markets
B)latent markets
C)parallel markets
D)incipient markets
E)local markets

Question 54

Which of the following correctly reflects marketing expert David Arnold's recommendations for companies engaged in global market research?

A)use multiple indicators
B)develop customized measures specific to an industry or product
C)conduct comparative assessments in neighboring countries
D)observation should be weighted more heavily than statements of purchase intention
E)all of the above

Question 55

Tools that can be used for collecting primary data include:

A)survey research and interviews.
B)consumer panels and observation.
C)focus groups and survey research.
D)interviews and observation.
E)all of the above

Question 56

In Singapore,Coca-Cola wanted to develop an advertisement program.They selected a group of teenagers and a trained moderator facilitated discussion asking questions related to brand's image,advertisement,social trends,TV watching habits,and snack usage.This type of research is called:

A)survey research.
B)observational studies.
C)comparison studies.
D)focus group research.
E)experimental research.

Question 57

To gain insights for product and package design improvements,Procter & Gamble sent video crews into 80 households in the United Kingdom,Italy,Germany,and China.P&G's ultimate goal was to amass an in-house video library database.This type of technique is known as:

A)scaling technique.
B)qualitative technique.
C)projective technique.
D)reactivity technique.
E)MDS technique.

Question 58

According to Peter Drucker,Japanese companies are the leading sellers of fax machines because their understanding of the market was based on survey research.

Question 59

A marketer of breakfast cereals might send researchers to preselected households at 6 A.M.to watch families go about their morning routines.The client could also assign a researcher to accompany family members to the grocery store to record their behavior under actual shopping conditions.This type of research method is considered as:

A)focus group.
B)invasion of privacy.
C)consumer panel study.
D)factor analysis.
E)observation.

Question 60

Market research should focus on finding out how a potential customer can be changed into an actual customer.

Question 61

Culture shapes attitudes and values in a way that directly affects people's willingness to respond to interviewer questions.

Question 62

One study of adult involvement in household tasks revealed greater similarities between the United Kingdom and the United States compared with France,Belgium,and French Canada.Thus,the United States and United Kingdom were "twins" based on common language.This study is an example of:

A)market latency.
B)conjoint analysis.
C)factor analysis.
D)multidimensional scaling.
E)cluster analysis.

Question 63

"Back-translation" is a technique whereby a survey or other document that has been translated is returned (i.e."sent back")to the translator for corrections.

Question 64

Describe guidelines that are recommended by David Arnold for data gathering and explain their importance in marketing research.

Question 65

It will be convenient to do a telephone survey in rural areas in China since,according to the Ministry of Information Industry reports,40 percent of households have at least one fixed-line telephone.

Question 66

Red Bull energy drink manufacturer,Dietrich Mateschitz,hired a market research firm to assess the market potential for the drink.In the tests,consumers reacted negatively to the taste,the logo,and the brand name.The company ignored the research completely.

Question 67

Authors Michael Czinkota and Ilka Ronkainen identified four specific environmental factors that may require international research efforts to be conducted differently than domestic research.Describe those factors to outline the differences.

Question 68

A market researcher who uses multidimensional scaling (MDS)will:

A)attempt to estimate market size by analogy.
B)ask respondents to rate a particular product or brand in terms of multiple characteristics or attributes.
C)ask respondents to evaluate product or brand pairs in terms of similarity.
D)attempt to determine the combination of product features that create the greatest utility for consumers.
E)conduct a focus group.

Question 69

Traditional market research is the most effective means for identifying latent markets.

Question 70

Campbell is the world's largest soup company,commanding about 80% of the U.S.canned soup market.However,the company has a presence in only 6% of the world's soup markets.Russians eat 32 billion servings of soup each year,and the Chinese consume 300 billion! By contrast,Americans eat 15 billion servings each year.Sensing a huge opportunity,Campbell has dispatched teams to observe Russian and Chinese habits.This type of interpretation and decision is based on:

A)demand pattern analysis.
B)income elastic analysis.
C)time series displacement.
D)polycentrism.
E)comparative analysis.

Question 71

If a market researcher would like to know how much the typical Nigerian consumer spends on soft drinks,the information can be obtained from GNP or GDP.

Question 72

A latent market is,in essence,an undiscovered market segment.

Question 73

"Back-translation" is a technique used to ensure that currency conversion is performed correctly when financial statements of foreign subsidiaries are consolidated with financial statements at headquarters.

Question 74

If Coach,a luxury goods marketer,would like to study the consumer perceptions of global luxury brands,what would be the best approach since there are several competitors?

Question 75

Suppose Apple has collected extensive survey data about its new iPhone,and respondents have rated it on 20 different features and benefits.Now researchers want to reduce the amount of data to a few underlying dimensions.Which data analysis technique should the researchers use?

A)analogy
B)conjoint analysis
C)factor analysis
D)multidimensional scaling
E)cluster analysis

Question 76

An "incipient market" is a market that will emerge if a particular economic,demographic,political,or sociocultural trend continues in a country.

Question 77

Volkswagen,Peugeot,Chrysler,and other global automakers have established manufacturing operations in China since they consider it to be an incipient market.

Question 78

When consumers have difficulty in verbalizing their perceptions,and there are different alternative brands of toothpaste,what is the best method of judging them in terms of similarity?

A)cluster analysis
B)multidimensional scaling
C)dependence techniques
D)factor loading
E)focus group

Question 79

If Avon would like to sell cosmetics in India,a good estimate of sales can be predicted by researching the average wage of an office secretary.

Question 80

During earlier days,Japanese women almost never used mascara because,by nature,they have very straight,short and thin lashes.This was observed during a focus group study.