Deck 4: Marketing Research and Information Systems

Question 1

Discuss the role of the marketing information system in helping marketing managers make better decisions.

Answer 1

A marketing information system (MIS) is a framework for the day-to-day
management and structuring of information gathered regularly from sources both inside and outside the organization. As such, an MIS provides a continuous flow of information about prices, advertising expenditures, sales, competition, and distribution expenses and can be an important asset for developing effective marketing strategies. The main focuses of an MIS are on data storage and retrieval, as well as on computer capabilities and management's information requirements.
MIS can help with producing regular sales reports by product or market categories, data on inventory levels, and records of salespeople's activities, which can all help in marketing decision making.

Question 2

Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem:

A) involves an informed guess or assumption about a certain set of circumstances.
B) is usually accompanied by a cost/benefit analysis.
C) most often comes in the form of customer complaints.
D) is often mentioned in secondary data reports, such as trade journals.
E) is typically a departure from some normal function.

Answer 2

E

Question 3

How does marketing research differ when conducted in other countries?

Answer 3

Sociocultural, economic, political, legal, and technological forces vary in different regions of the world. These variations create challenges for the organizations that are attempting to understand foreign customers through marketing research. While the marketing research process is generally the same around the world, some regional differences exist. To make certain that firms are sufficiently aware of global and regional differences, many companies retain a research firm, or at least a researcher, with experience in the country of interest. Most of the largest marketing research firms derive a significant share of their revenues from research conducted outside the United States. For example, the Nielsen Company, the largest marketing research firm in the world, is a U.S. company but has a market presence in over 100 different countries.

Question 4

Explain the conditions that would favor an exploratory study over a conclusive study.

Question 5

Why would a personal interview be favored over a mail or telephone survey?

Question 6

Why is it essential that a questionnaire be carefully designed and prepared? Describe the three kinds of questions used in research project.

Question 7

Marketing research is a process designed to gather information:

A) exclusively about a company's customers.
B) from the company's database.
C) not currently available to decision makers.
D) about the needs and desires of employees.
E) concerning the interpretation of the company's sales goals.

Question 8

How is it possible to increase the response rate of a mail survey?

Question 9

Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows that new car sales are down by reading the paper, so he thinks that people should be driving more used cars, which need repairs. Wade knows that he needs to find out why customers are coming to the stores in his area, and the best way to approach this problem and obtain accurate information is to use:

A) the marketing research process.
B) the opinions of store managers.
C) the company sales data.
D) hypothesis testing.
E) stratified sampling of customers.

Question 10

Compare reliability and validity. Why are they important considerations in marketing research?

Question 11

What is sampling in marketing research? Describe the two basic types of sampling. Compare the advantages and disadvantages of the two types of collecting a sample.

Question 12

Pointing out any deficiencies and the possible reasons for them should be done in the step of the marketing research process.

A) interpreting research findings
B) collecting data
C) defining the issue or problem
D) reporting research findings
E) designing the research project

Question 13

Marketing research is best defined as:

A) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
B) a framework for the day-to-day management and structuring of information gathered by marketers.
C) a continuous gathering of data of an organization to make marketing decisions.
D) the collection of data from secondary sources and internal documents.
E) an intuitive process for making decisions based on personal knowledge and experience.

Question 14

Why is ethics an important consideration in marketing research?

Question 15

The use of marketing research is:

A) limited strictly to large corporations.
B) limited to for-profit businesses of all sizes.
C) controlled by the federal government.
D) widespread throughout business and nonprofit organizations.
E) carefully monitored by each state's trade agencies.

Question 16

All of the following are steps in the marketing research process except:

A) collecting data.
B) interpreting research findings.
C) designing the research project.
D) reporting research findings.
E) understanding your customer.

Question 17

How can companies use information technology as a competitive advantage?

Question 18

Why is defining a problem the most important step in marketing research?

Question 19

What pitfalls should a marketing researcher avoid in preparing a report for a company executive? Why?

Question 20

The real value of marketing research to the organization can best be measured by:

A) its immediate impact on profits of the firm.
B) the amount of time spent in conducting the research.
C) the costs incurred during the market research.
D) improvements in the ability to make decisions.
E) the increase in sales volume or market share.

Question 21

Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for the sales to increase in a particular store. The type of research conducted to answer this question is .

A) exploratory
B) descriptive
C) experimental
D) informal
E) qualitative

Question 22

Declining sales, increasing expenses, or decreasing profits:

A) are to be expected during the marketing research process.
B) are examples of symptoms that point to larger problems.
C) usually have no effect on the marketing research process.
D) are important considerations in designing the research project.
E) should be carefully considered before collecting data.

Question 23

Students from a marketing research class are involved in a project about the level of sleep, exercise, and stress which individuals experience. They have decided to collect data from three student-center areas on campus. When they analyze their data they find the responses are very similar across the three areas. The students feel comfortable they have achieved with regard to their data.

A) reliability
B) causal relationships
C) validity
D) sampling accuracy
E) measurability

Question 24

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a(n) _.

A) exploratory research
B) hypothesis development
C) survey research
D) stratified sampling
E) experimental research

Question 25

A research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called a(n) research.

A) primary
B) experimental
C) descriptive
D) secondary
E) exploratory

Question 26

An overall plan for obtaining the information needed to address a research problem or an issue is known as .

A) research design
B) problem recognition
C) hypothesis
D) data collection method
E) sampling procedure

Question 27

A valid study:

A) portrays the population being studied.
B) results in a causal relationship between the independent and dependent variables.
C) uses random sampling.
D) verifies expected results.
E) measures what it is supposed to.

Question 28

, that are either accepted or rejected, become the primary conclusions of a marketing research study.

A) Descriptions
B) Issues
C) Primary data
D) Samples
E) Hypotheses

Question 29

A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with .

A) secondary data
B) reliability
C) validity
D) reporting findings
E) generalizability

Question 30

An informed guess or assumption about a certain problem or a set of circumstances is known as .

A) a description of the situation
B) good research design
C) a hypothesis
D) a reliable guess
E) managerial intuition

Question 31

Cover Girl believes that sales of one of its lipstick lines have fallen due to the introduction of a new color palette. However, in order to best determine the impact of the color palette, Cover Girl should conduct a(n) before proceeding with this tentative hypothesis.

A) experimental research
B) hypothesis testing
C) exploratory research
D) conclusive research
E) descriptive research

Question 32

A research that allows marketers to make causal deductions about relationships between variables is known as a(n) _____.

A) variable research
B) relational research
C) exploratory research
D) linkage research
E) experimental research

Question 33

When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in .

A) surveys
B) secondary data gathering
C) interviews
D) observation
E) experimentation

Question 34

A research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is known as a(n) research.

A) primary
B) secondary
C) exploratory
D) conclusive
E) hypothetical

Question 35

A study that is reliable .

A) is called a marketing research study
B) produces almost identical results every time
C) is expensive to implement and complete
D) measures subtle differences in the population being studied
E) is difficult to produce without expert researchers

Question 36

Designing research procedures that produce reliable marketing data means that .

A) others using the same procedure will get almost identical data
B) the procedure must give results that support the hypothesis
C) the procedure must not give results that contradict other research studies
D) the procedure may give results that contradict other research studies
E) sampling must be done in a completely random manner

Question 37

To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?

A) Locating and defining problems
B) Designing the project
C) Collecting data
D) Interpreting findings
E) Reporting and analyzing findings

Question 38

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct a(n) research.

A) descriptive
B) experimental
C) exploratory
D) analytical statistical
E) conclusive

Question 39

Jack knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should move on to:

A) calculating reliability and validity.
B) designing the research project.
C) collecting data.
D) interpreting research findings.
E) taking corrective action.

Question 40

Costco believes that most of its sales are to small businesses rather than consumers, and that women are more likely to be making the purchasing decisions. This is an example of a(n) that Costco could test through marketing research.

A) descriptive sample
B) hypothesis
C) experimental question
D) sampling error
E) conceptual error

Question 41

Kristen is the new marketing manager for the footwear division of her company and is currently planning next season's product lines. She needs to gain access to data about recent purchasing patterns in the industry, but has a limited budget and time. Which type of data would be the best choice for Kristen to use in this situation?

A) Sampling data
B) Secondary data
C) Quota data
D) Primary data
E) Survey data

Question 42

The two basic types of sampling which marketing researchers use are .

A) random and nonrandom
B) probability and nonprobability
C) stratified and quota
D) even and odd
E) planned and spontaneous

Question 43

Data that are observed or collected directly from respondents are called .

A) direct samples
B) secondary data
C) stratified data
D) primary data
E) firsthand information

Question 44

Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is .

A) interpreting research findings
B) collecting data
C) developing a testable hypothesis
D) sampling the population
E) reporting research findings

Question 45

If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be .

A) the faculty and staff of the University of Michigan
B) all college-aged adults in the state of Michigan
C) all the people who live in Ann Arbor and surrounding areas
D) undergraduate students at the University of Michigan
E) all students, faculty, supporters, and staff of the University of Michigan

Question 46

All the elements, individuals, or units of interest to researchers for a specific study are known as the .

A) data set
B) sample
C) population
D) focus group
E) target market

Question 47

The objective of sampling in marketing research is to .

A) obtain responses from as many people as possible
B) control independent variables that might influence research results
C) select representative units from a total population
D) ensure that measures in the study are reliable
E) provide data that can be used to test the hypotheses being investigated

Question 48

Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's .

A) experiment
B) dependent variable
C) population
D) independent variable
E) sample

Question 49

Secondary data cannot be obtained from .

A) trade journals
B) the government
C) international sources
D) surveys
E) computerized literature retrieval databases

Question 50

Which sampling design gives every member of the population an equal chance of appearing in the sample?

A) Nonprobability
B) Random
C) Quota
D) Stratified
E) Poll

Question 51

One overlooked internal source of secondary marketing information discussed in the text is .

A) sales receipts
B) accounting records
C) interviews with salespeople
D) quality control data
E) consumer surveys

Question 52

Primary data are best described as the .

A) first batch of data collected for a specific study
B) data that are necessary for a correct decision
C) data that are observed, recorded, or collected directly from subjects
D) data that are compiled for some purpose other than the study in question
E) data that are collected inside and outside the organization for some purpose other than the current investigation

Question 53

In marketing research, a sample is best described as .

A) a small group that is a part of a larger group
B) all the elements, units, or individuals of interest to researchers for a specific study
C) a limited number of units chosen to represent the characteristics of a total population
D) a group that shares a common attribute within a population
E) a small portion of a product offered to customers to try a new product

Question 54

When working as a summer intern for a local retail store, Jane Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered .

A) primary data
B) secondary data
C) information data from syndicated research services
D) secondhand data
E) a primary database

Question 55

Saks Fifth Avenue wants to learn about its consumers' attitudes toward online purchases. There are numerous studies that are available about consumers and online buying, but Saks believes its customers might be different from the usual online consumer profile, so they decide to conduct their own study. If Saks were to use the available data about consumer attitudes, it would be using data.

A) descriptive
B) experimental
C) secondary
D) primary
E) conclusive

Question 56

If Time Warner Cable uses its sales reports which are broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections, then Time Warner Cable is said to be using .

A) internal sampling
B) internal primary data
C) external secondary data
D) external primary data
E) internal secondary data

Question 57

In what type of sampling does every element have a known chance of being selected for study?

A) Quota
B) Stratified
C) Poll
D) Nonprobability
E) Probability

Question 58

If you were to choose a sample in order to study the market for preschool toys in Illinois, the population would logically be defined as all .

A) children in Illinois
B) families in Illinois that have or are expecting preschool children
C) people in Illinois who had preschool children till the preceding year
D) preschools in Illinois who will be admitting students in the following year
E) preschool children in Illinois

Question 59

Information from the U.S. Census Bureau is commonly used as by a variety of agencies and organizations.

A) external secondary data
B) sampling systems
C) primary data
D) internal secondary data
E) hypotheses

Question 60

When marketing researchers consider sampling techniques, they are preparing to collect data.

A) census
B) statistical
C) internal secondary
D) external secondary
E) primary

Question 61

Which of the following is a shortcoming associated with gathering primary data through surveys?

A) Most companies do not have any funding for survey research.
B) Fewer people are willing to participate in surveys.
C) Laws significantly limit firms' ability to conduct surveys.
D) Unreliable methods of distributing surveys make them difficult to conduct.
E) Very little useful information is ever gathered from survey results.

Question 62

The major disadvantage of a mail survey versus a telephone or personal survey is .

A) having to offer high premiums and attractive incentives
B) the failure of respondents to return the questionnaire
C) the elimination of interview bias
D) the lack of open-ended questions
E) the high cost incurred in conducting the survey

Question 63

Although telephone surveys can be conducted very quickly, a major limitation is .

A) the inability to build rapport with respondents
B) the difficulty in asking probing questions to every respondent
C) that only a few companies prefer this survey method
D) that only a small portion of the population likes to participate
E) the high expense involved when compared to in-home interviews and other forms of surveys

Question 64

Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, a sampling technique would be used.

A) random
B) stratified
C) quota
D) area
E) experimental

Question 65

Compared to a mail survey, telephone surveys have .

A) lower response rates but higher validity
B) a slower response time, but less cost
C) faster response time, but less cost
D) fewer expenses overall
E) higher response rates, but higher costs

Question 66

Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist; the best type of sampling for this research would be sampling.

A) random
B) quota
C) population
D) stratified
E) nonquota

Question 67

An offshoot of mail surveys, have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population.

A) purchase diaries
B) telephone surveys
C) online surveys
D) focus-group interviews
E) immediate feedback forms

Question 68

In sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen.

A) population
B) random
C) stratified
D) probability
E) nonprobability

Question 69

Quota sampling is most commonly used in .

A) descriptive research
B) population research
C) surveys
D) collecting primary data
E) exploratory studies

Question 70

DailyDiet wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 500 employees by having a computer program automatically pick which employees will be in the sample. If it uses the payroll database as the list of names to choose from, which type of sampling method is Daily Diet using?

A) Random sampling
B) Sampling populations
C) Stratified sampling
D) Nonprobability sampling
E) Quota sampling

Question 71

Which of the following surveys is most inflexible among the basic survey methods?

A) Telephone survey
B) Focus-group interview
C) Personal interview survey
D) Mail survey
E) Observation

Question 72

In which of the following sampling designs do all members of a population have an equal chance of being selected?

A) Stratified
B) Nonprobability
C) Quota
D) Probability
E) Judgment

Question 73

Maggie is currently working on the three-year strategic plan for a professional hockey team. She needs data to help make decisions about a new pricing strategy, but she needs the data from a wide geographic area. She would like to have the best response but also has a limited budget for the project. Under these circumstances, Maggie should use _.

A) telephone surveys
B) online surveys
C) mail surveys
D) shopping mall intercept interviews
E) focus-group interviews

Question 74

The manager of Mega Market, an online store, is interested in asking consumers what they think about the store's new web page and expanded product selection. If the manager would like to obtain a high response rate while avoiding interviewers' travel expenses and have the study conducted as quickly as possible, which data collection method should be recommended?

A) Mail survey
B) Direct observation of consumers in the store
C) Telephone survey
D) Focus-group interview
E) Shopping mall intercept interview

Question 75

Cream Rush is conducting research on all possible new ice cream flavors and products. It is selecting at random 100 males and 100 females to collect data. This is an example of sampling.

A) nonprobability
B) random
C) quota
D) stratified
E) selective

Question 76

sampling is highly judgmental because the final choice of participants is left to the researchers.

A) Stratified
B) Random
C) Cluster
D) Area
E) Quota

Question 77

Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because _____.

A) response rates are declining resulting to unreliable results
B) primary data are so much cheaper and easier to gather
C) survey data collection is highly inaccurate
D) survey data do not provide in-depth responses
E) the survey method has been replaced by the Internet

Question 78

Peter, the director of marketing at Holcomb Inc., calls in Andrea, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a survey.

A) mail
B) telephone
C) random
D) personal interview
E) population

Question 79

When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using .

A) quota sampling
B) selective surveying
C) random sampling
D) stratified sampling
E) researcher samples

Question 80

Which of the following is a probability sampling technique used to reduce errors within random sampling?

A) Quota
B) Stratified
C) Nonprobability
D) Cluster
E) Snowball