Deck 4: Managing Marketing Information to Gain Customer Insights

Question 1

Which of the following demonstrates the real value of a company's marketing research and information system?

A)the amount of data it generates
B)the variety of contact methods it uses
C)the efficiency with which it implements the research plans
D)the quality of customer insights it provides
E)the sampling plan it follows

Answer 1

D

Question 2

Which of the following is true with regard to a good MIS?

A)It solely aims at maximizing the amount of data that is generated irrespective of feasibility or requirements.
B)It typically uses only external sources of data for conducting marketing research.
C)It consists of people and procedures dedicated to the assessment and generation of customer insights.
D)It reduces the role of marketing managers in the strategic planning process by holding them responsible for marketing research only.
E)It eliminates the need to assess the marketing information needs of the organization before developing the research plan.

Answer 2

C

Question 3

Causal research is used to ________.

A)test hypotheses about cause-and-effect relationships
B)gather preliminary information that will help define problems
C)find information at the outset of the research process in an unstructured way
D)describe marketing problems or situations without any reference to their underlying causes
E)quantify observations that produce insights unobtainable through other forms of research

Answer 3

A

Question 4

Which of the following is a common source of data supplied to internal databases?

A)the mass media
B)the stockholders
C)the marketing department
D)the competitors
E)the Web

Question 5

Coolers has come up with the product idea of a new soft-drink that will have the lowest calorie count among all the competing products in this range.Which of the following types of research should Coolers use to identify the demographic group that would be their target market for this product?

A)observational research
B)archival research
C)causal research
D)experimental research
E)descriptive research

Question 6

As a marketing researcher for SoundSense,Nancy Bales has been asked to gather preliminary information that will help create a research hypothesis about EasyPlay,the new music player by SoundSense.Nancy has the task of conducting first-hand research about the characteristics of the target group that would buy EasyPlay,which the company believes to be superior to i-Pods and cell phones in terms of audio quality.Nancy Bales should conduct ________ research at this stage.

A)causal
B)experimental
C)secondary
D)internal
E)exploratory

Question 7

Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?

A)LexisNexis
B)Hoover's
C)Dialog
D)U)S. Security and Exchange Commission's database
E)ProQuest

Question 8

Vernon Producers are running a series of marketing exercises to price their new range of goods suitably.With this purpose in mind,they have sold one of their key new products at two different prices in two different locations,holding all other factors like quality,promotion,customer service,and so on constant.This is an example of ________ research.

A)exploratory
B)descriptive
C)causal
D)focus group
E)ethnographic

Question 9

Which of the following statements regarding marketing intelligence is true?

A)Marketing intelligence typically involves sensitive and confidential information kept out of the public domain.
B)The advantage of using competitive intelligence is negligible as it is based on internal sources of data only.
C)All marketing intelligence is available at no cost to all potential users.
D)Marketing intelligence involves publicly available information.
E)Marketing intelligence gathering is more focused on gaining insights into a firm's consumers' activities than its competitors' activities.

Question 10

The marketing department at Hammond Corp.is attempting to track competitors' actions and obtain early warnings of the opportunities and threats in the highly competitive electronic gadgets market it operates in.To achieve this goal,which of the following would be the best source of information for the department?

A)sales data from the stores that have a tying-arrangement with Hammond Corp.
B)archival data on company performance and organizational history
C)data provided from competitive marketing intelligence exercises by Hammond Corp.
D)data collected from the Web providing a general insight into the needs for all electronic goods manufacturers
E)data relating to employee performance and retention over the last two quarters in Hammond Corp.

Question 11

Haley Computers is one of the world's largest producers of computers.Being the market leader,the company spends a substantial amount of time and energy in innovating its computers and staying ahead of its competitors.In its efforts to do so,Haley Computers has appointed some key employees with the task of scanning online customer conversations on feedback pages of sites,social networking sites,and other online platforms.They communicate their findings to the marketing department so that they can make the right decisions and meet current consumer needs.These employees are likely to be ________.

A)working only with the production team of Haley Computers
B)working as hired resources from a brand management firm
C)working with a production orientation, rather than a marketing orientation
D)working primarily through the data in the internal database of Haley Computers
E)working as listening officers at Haley Computers for capturing consumer insights

Question 12

________ is the systematic design,collection,analysis,and reporting of data relevant to a specific marketing situation facing an organization.

A)Test marketing
B)Marketing research
C)Commercialization
D)Integrated marketing
E)Exclusive distribution

Question 13

Amanda Hills,the marketing manager for Wilcox Stores,has been asked to study the scope of a new private-label brand of products that will be created from exclusive herbal and organic ingredients.Amanda has to conduct a full-scale study beginning with ascertaining features of the target market to generating estimates of projected demand through objective studies.Which of the following is true with regard to Amanda's steps in this research study?

A)She is most likely to start with an experimental study to determine the target markets.
B)She can complete the whole research through an exploratory study using online databases.
C)She should start with an exploratory research and conduct descriptive and causal research studies subsequently.
D)She should use only a descriptive study as she is required to study factors like the market potential for a product or the demographics and attitudes of consumers who buy the product.
E)She should use data mining and data warehousing techniques before conducting any in-house research.

Question 14

ProValue released a line of clothing and accessories titled "This is Me" for pre-teens and adolescents after conducting substantial marketing research on the demand in the target market.The new products were first released on an experimental basis to track their sales against the projected estimates.The successful test marketing exercise was followed by a full-scale rollout.ProValue is now considering raising the prices of some of the quick-selling products in this line.To test the impact of doing so,it increased the prices of these products by 10 percent,holding all other factors constant,and evaluated changes in sales.Which of the following statements is true with regard to ProValue's use of marketing research for this line of clothes and accessories?

A)ProValue failed to undertake adequate descriptive research to identify the features of its target market for this new line of products.
B)ProValue evaluated the demand for the goods before and after the change in prices only through online databases.
C)ProValue successfully used a combination of descriptive and causal research approaches in the events described in the scenario.
D)ProValue used exploratory research to evaluate the impact of price changes in the quick selling products of the new line.
E)ProValue used mechanical devices to study the market demand for its new line of products after the price rise.

Question 15

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)experimental

Question 16

What is the first step in the marketing research process?

A)developing a marketing information system
B)defining the problem and research objectives
C)developing the research plan for collecting information
D)implementing the research plan
E)interpreting data and deciding on type of research

Question 17

A marketing information system begins with the step of ________.

A)generating insights into the consumption patterns seen in the market
B)analyzing the results of marketing research studies
C)developing information from internal or external sources
D)assessing the information the company needs
E)hiring marketing research firms to conduct research for the company

Question 18

Diane Chambers,the marketing manager for FarmFresh,is currently scanning the data collected from the cash counters of the various stores that make up its retail chain,to make sound marketing decisions.Diane is making use of ________ databases.

A)external
B)secondary
C)historical
D)internal
E)dialog

Question 19

Amex Retail is a small retail chain that is a facing a drop in sales following a hike in prices of some of its most popular goods.The company is currently cash-strapped and needs a quick and efficient way to determine the specific products that are responsible for this drop in sales.Amex retail should ________ as it would be the cheapest and most effective solution to Amex Retail's current requirements.

A)utilize external agencies and partners
B)seek marketing intelligence inputs from high-end firms
C)seek information regarding the strategy adopted by competitors
D)utilize its internal databases for sales figures
E)hire a reputed marketing research firm

Question 20

The marketing manager at Appeal has constituted a cross-functional team to study the consumer trends in the cosmetic industry.The team has come up with two dominant trends: a preference for cruelty-free cosmetics and for organic cosmetics.To study these preferences further,the team has to convert them into operational concepts and break them down to smaller research questions.This cross-functional team is at the stage of ________ in the marketing research process.

A)developing the research plan
B)determining a research approach
C)defining the problem and research objectives
D)selecting a research agency to help
E)interpreting data and deciding on type of research

Question 21

Which of the following methods could a marketing researcher use to obtain information that people are unwilling or unable to provide?

A)observational research
B)focus groups
C)personal interviews
D)Internet surveys
E)questionnaires

Question 22

Which contact method for marketing research is flexible,allows for explanation of difficult questions,and lends itself to showing products and advertisements?

A)personal interviewing
B)experimental research
C)archival research
D)ethnographic research
E)observational research

Question 23

The major advantage of survey research is its ________.

A)flexibility
B)experimental research design
C)value in establishing causal relationships
D)ability to eliminate researcher bias
E)ability to elicit sensitive and private information

Question 24

________ are small groups of consumers who interact directly and informally with product designers without a moderator present.

A)Cross-functional groups
B)Ethnographic groups
C)Observational groups
D)Immersion groups
E)Focus groups

Question 25

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,a researcher would be most concerned about which of the following?

A)finding a representative sample
B)generalizing from the results
C)administering the questions
D)orchestrating cooperation among participants
E)finding enough secondary data to support the findings

Question 26

Burger Town came out with a new hamburger and released it in two different cities with two different price points.Marketers at Burger Town then analyzed the different levels of purchase made at the two different price points,planning on using the information to set a nationwide price for the new offering.This is an example of ________.

A)observational research
B)survey research
C)ethnographic research
D)experimental research
E)descriptive research

Question 27

Brekkies is releasing a new type of breakfast cereal that combines different grains and flavors.Since Brekkies is releasing a new product in the industry,Brekkies will ________.

A)locate information about the demand for breakfast cereals from online databases easily
B)use information based on competitors' products like cornflakes to evaluate the success of its brand new product
C)use measures of derived demand from intermediaries and resellers, rather than data and feedback relating to end-users
D)undertake research to generate primary data regarding demand and features of its new product before marketing
E)use ethnographic research before the products have been released in the market on a full-scale

Question 28

Secondary data consists of information ________.

A)that already exists somewhere but is outdated
B)that does not currently exist in an organized form
C)that already exists somewhere but was collected for another purpose
D)that is directly generated from the company's sales division
E)that the researcher can only obtain through first-hand surveys and observation

Question 29

Experimental research is best suited for gathering ________ information.

A)exploratory
B)causal
C)attitudinal
D)interactive
E)descriptive

Question 30

Information collected from online databases on the Internet is an example of ________ data.

A)primary
B)secondary
C)first-hand
D)experimental
E)ethnographic

Question 31

Walmart sends a trained observer to watch and interact with customers as they shop in a Wal-Mart store.This is an example of ________.

A)secondary research
B)causal research
C)ethnographic research
D)experimental research
E)archival research

Question 32

Kathy Jenkins is conducting research to determine consumers' personal grooming habits.Because of the personal nature of the survey questions about this topic,Kathy wants to select a contact method that is most likely to encourage respondents to answer honestly.Which contact method should Kathy select?

A)mail questionnaires
B)telephone interviews
C)individual interviews
D)focus group interviews
E)online video interactions

Question 33

Which of the following is true with regard to survey research?

A)It is the most widely used method for gathering primary data.
B)It is the most widely used method for establishing causal relationships.
C)It is identical to the ethnographic research approach in terms of methodology.
D)It is seldom used to collect data for descriptive research.
E)It is seldom used in research as it is an inflexible tool for data collection.

Question 34

________ is a method of gathering primary data by asking people questions about their knowledge,attitudes,preferences,and buying behavior.

A)Observational research
B)Archival research
C)Survey research
D)Experimental research
E)Internal research

Question 35

Which of the following has the highest rating for speed of data collection and compilation?

A)group interviews
B)personal interviews
C)mail surveys
D)online surveys
E)ethnographic research

Question 36

Ethnographic research ________.

A)is an approach arising from traditional focus groups
B)is conducted in settings where people live and work
C)is an approach that provides only secondary data
D)is most popular in the service sector
E)is used by marketers when observation is impossible

Question 37

________ data consist of information collected for the specific purpose at hand.

A)Primary
B)Secondary
C)Derived
D)Archival
E)Ethnographic

Question 38

In the second step of the marketing research process,a ________ is developed.

A)research problem
B)research plan
C)research report
D)research rationale
E)research objective

Question 39

Ethnographic research essentially involves ________.

A)experimental manipulation
B)observation and interaction
C)neuromarketing techniques
D)use of mechanical devices
E)use of secondary sources of data

Question 40

Which of the following is an example of ethnographic research?

A)The marketing team at Amex is conducting surveys through mail questionnaires to estimate the demand for a new pain-relieving device in the market.
B)The marketing team at ProValue is scanning data in the internal database to categorize customers based on age, gender, occupation, and other variables.
C)The marketing researcher hired by Vince is manipulating the variable of price while holding all other relevant variables constant to study the impact of Vince's pricing changes.
D)The marketing researcher hired by Lou and Price is watching and interacting with consumers in retail stores as they evaluate and purchase different products.
E)The marketing team at Hollis Inc. is using data mining techniques to unearth relevant consumption patterns and preferences of their customers.

Question 41

What are the two main types of research instruments used to collect primary data?

A)official records and samples
B)questionnaires and mechanical devices
C)focus groups and online databases
D)online panels and experiments
E)personal interviews and online focus groups

Question 42

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)neuromarketing
D)direct marketing
E)data mining

Question 43

Which of the following is a disadvantage of online focus groups?

A)Participants must be in a central location.
B)Determining the identity of people who constitute an online sample is difficult.
C)Results take the longest to tabulate and analyze in this method when compared to all other data collection methods.
D)The cost of online focus groups is greater than that of most other qualitative research methods.
E)The format of focus groups is not fixed and can be varied.

Question 44

What source of marketing information provides those within the company ready access to research information,stored reports,shared work documents,contact information for employees,and other information?

A)an intranet
B)an extranet
C)the ARPANET
D)the telnet
E)the datanet

Question 45

A researcher is conducting a study on a new type of insurance that has been released for professionals in jobs that pose a high risk to their life.The researcher,who has substantial experience in this field,has decided to select people who serve as fire fighters and fighter pilots following his own assessment of the people who would serve as good prospects for this insurance.The researcher has used ________ sampling here.

A)stratified random
B)cluster
C)simple random
D)judgment
E)probability

Question 46

In a quota sample,the researcher ________.

A)divides the population into mutually exclusive groups (such as age groups), and random samples are drawn from each group
B)selects the easiest population members from which to obtain information
C)divides the population into mutually exclusive groups (such as blocks), and draws a sample of the groups to interview
D)uses his or her judgment to select population members who are good prospects for accurate information
E)finds and interviews a prescribed number of people in each of several categories

Question 47

Tuff Industries sells roof trusses to contractors and builders and would like to conduct research to determine how customers assess customer service.Which of the following research instruments would be best for this firm?

A)observation rating scales
B)mechanical devices
C)questionnaires
D)sampling plans
E)online databases

Question 48

Which of the following is a type of sampling that allows the researcher to ascertain the sampling error accurately?

A)convenience sample
B)cluster sample
C)judgment sample
D)quota sample
E)nonprobability sample

Question 49

Erica Jenson has a limited budget for the market research she needs to conduct; however,the sample size for her research is quite large.Which of the following methods of contact would provide Erica with the most cost-effective way to reach a large sample of potential customers?

A)telephone surveys
B)personal interviews
C)Internet surveys
D)mail surveys
E)focus group interviews

Question 50

In CRM,findings about customers discovered through ________ techniques often lead to marketing opportunities.

A)value marketing
B)data mining
C)test marketing
D)neuromarketing
E)serial processing

Question 51

Which of the following is the definition of a sample?

A)the complete population selected for marketing research
B)a segment of the population selected for marketing research
C)the proportion of the population eliminated from the purview of the marketing research
D)the group of consumers who lack the characteristic being tested in the marketing research study
E)the whole collection of individuals from which a smaller group is selected for research purposes

Question 52

By far the most common research instrument,whether administered in person,by phone,by e-mail,or online is the ________ method.

A)mechanical device
B)personal interview
C)questionnaire
D)telephone interview
E)focus group

Question 53

Which of the following is true about customer relationship management (CRM)?

A)It eliminates the need to depend on information produced through primary research.
B)Its aim is to directly maximize profit margins.
C)Its aim is to establish cause-effect relationships between marketing strategies and consumption trends.
D)Its aim is to maximize customer loyalty.
E)It eliminates the need to use data mining techniques in marketing research studies.

Question 54

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 should you use?

A)online market research tools
B)integrated marketing system
C)customer relationship management
D)internal company databases
E)mass marketing approach

Question 55

In a simple random sample,________.

A)the population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group
B)the researcher selects the easiest population members from which to obtain information
C)the researcher finds and interviews a prescribed number of people in each of several categories
D)every member of the population has a known and equal chance of selection
E)the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview

Question 56

In a ________,the population is divided into mutually exclusive groups (such as blocks),and the researcher draws a sample of the groups to interview.

A)stratified random sample
B)cluster sample
C)simple random sample
D)quota sample
E)convenience sample

Question 57

After a research instrument is selected,the next step in the marketing research process is ________.

A)selecting a sampling method
B)interpreting the findings
C)implementing the research plan
D)collecting secondary data
E)selecting a research approach

Question 58

You want to find out whether Americans between 21 and 40 years of age tend to vote for Democrats and whether Americans between 41 and 70 tend to vote for Republican candidates.You will most likely use a ________ to collect your data if you want an accurate measure of the sampling error.

A)quota sample
B)mechanical device
C)stratified random sample
D)judgment sample
E)convenience sample

Question 59

What is a major drawback of probability sampling?

A)It can be time consuming.
B)Sampling error cannot be measured.
C)The sample size chosen is often too large for valid generalizations to be made.
D)Everyone has an equal chance of selection.
E)Marketers must rely on the judgment of the researcher in respondent selection.

Question 60

Marge Griffin operates a dress shop in a suburban mall.Her research budget is very small,so she uses low-cost or no-cost methods to gather research data.Which of the following would suit her needs of studying consumer trends at no additional cost?

A)informal surveys conducted by hired professionals
B)sites like www.sba.gov
C)experiments and mechanical devices
D)neuromarketing research
E)surveys conducted by market research firms on a contractual basis

Question 61

When you glean information from your company's accounting and sales records stored in the computer,you are using an internal database.

Question 62

Primary data can usually be obtained more quickly and at a lower cost than secondary data.

Question 63

Which of the following statements is true with regard to the status of international research?

A)It is on the decrease due to high costs.
B)The costs are significantly higher than the benefits.
C)There is an abundance of qualified research personnel.
D)Despite the costs of international research, the costs of not doing it are higher.
E)There is no dearth of primary data in international marketing research.

Question 64

The Internet is especially well suited to qualitative research.

Question 65

The objective of exploratory research is to test hypotheses about cause-and-effect relationships.

Question 66

Vincent Medicals released a cosmetic that claimed to make skin "nine times smoother" based on a research study using thirty female respondents who were chosen by a convenience sample and had utilized a wide range of cosmetics.The research study revealed a mild correlation between using the new product by Vincent Medicals and experiencing healthier skin.Which of the following should Vincent Medicals do in this scenario?

A)It should market the product as planned with the promotional line of "nine times smoother."
B)It should modify the results of the study to ensure that at least a moderate correlation is seen.
C)It should report the result as it is, to protect consumers' best interests and its own.
D)It should ensure that its product composition is not altered significantly and then release the product in the market as planned.
E)It should conduct an experimental research study as that may lead to better results of the efficacy of the new product.

Question 67

The primary objective of causal research is to describe things,such as the market potential for a product or the demographics and attitudes of consumers who buy the product.

Question 68

An effective MIS assesses information needs,develops needed information,and distributes the information to help managers use it in decision making.

Question 69

Whereas observational research approaches seek to test known hypotheses and obtain answers to well-defined product or strategy questions,traditional quantitative research can generate fresh customer and market insights that people are unwilling or unable to provide.

Question 70

Experimental research is a form of ethnographic research.

Question 71

Major suppliers and resellers cannot serve as important sources of intelligence information for marketing decision making.

Question 72

Mail surveys usually take longer to complete,and the response rate is often very low.

Question 73

Roxanne Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market.The survey Roxanne is using was written in English and then translated into Spanish for use by Spanish-speaking respondents.Which of the following must Roxanne ensure prior to administering this questionnaire to a sample of the market?

A)make sure that the survey can be conducted without a moderator to cut costs and time
B)decide whether to collect primary or secondary data for the research study
C)determine which type of research instrument to use
D)eliminate any discrepancies in meaning that may rise from the two versions of the test
E)determine whether to focus on descriptive or causal objectives

Question 74

Data age quickly,so keeping the database current requires dedicated resources.

Question 75

Internal databases usually can be accessed more quickly but are more expensive than other information sources.

Question 76

Once the research problems and objectives have been defined,researchers must first determine the exact information needed and then present that information to management.

Question 77

Marketing researchers can conduct their own searches of secondary data sources by using commercial online databases.

Question 78

Marketing research is the systematic design,collection,analysis,and reporting of data directly relevant to a specific marketing situation facing an organization.

Question 79

Survey research is best suited for gathering descriptive information and experimental research is best suited for gathering causal information.

Question 80

Customer needs and buying motives are overtly evident to marketers.