Deck 5: Marketing Research and Information Systems

Question 1

How can companies use information technology as a competitive advantage?

Answer 1

Technology and the Internet have made the information required for marketing decisions more accessible than ever. Marketers can easily track customer buying behavior, obtain detailed demographic profiles, and anticipate what buyers want-making it possible to fine-tune marketing mixes to satisfy customers. Information technology permits for easy internal research and quick information gathering to help marketers better understand and satisfy customers. CRM has been enhanced by the ability to integrate and access data from all customer contacts. Many firms use marketing information systems, CRM technologies, and cloud computing to network technologies and organize the marketing data available to them. Improvements in information technology have made it possible for firms to develop databases that are vastly enhanced in their speed and storage capacity to guide strategic planning and improve customer service.

Question 2

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 findings

Answer 2

A

Question 3

Compare the advantages and disadvantages of the two types of collecting a sample.

Answer 3

There are two basic types of sampling: probability sampling and nonprobability sampling. With probability sampling, every element in the population being studied has a known chance of being selected for study. Random sampling is a form of probability sampling. When marketers employ random sampling, all the units in a population have an equal chance of appearing in the sample. Another type of probability sampling is stratified sampling, in which the population of interest is divided into groups according to a common attribute, and a random sample is then chosen within each subgroup. A stratified sample may reduce some of the error that is a risk of a completely random sample, ensuring that a group is not accidentally overrepresented. By segmenting a population into groups, the researcher makes sure that each segment receives its proportionate share of sample units and helps investigators avoid including too many or too few sample units from each subgroup. Samples are usually stratified when researchers believe there may be variations among different types of respondents.
The second type of sampling, nonprobability sampling, is more subjective than probability sampling because there is no way to calculate the probability that a specific element of the population being studied will be chosen. Quota sampling, for example, is highly judgmental because the final choice of participants is left to the researchers. In quota sampling, researchers divide the population into groups and then arbitrarily choose participants from each segment. In quota sampling, researchers impose some controls-usually limited to two or three variables, such as age, gender, or race-over the selection of participants to ensure that representative categories of respondents are included.

Question 4

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 5

Compare and contrast the response rates of the four basic survey methods. Are there methods to increase any of these response rates?

Question 6

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

Question 7

An overall plan for obtaining the information needed to address a research problem or issue is called the

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

Question 8

Why is ethics an important consideration in marketing research?

Question 9

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 10

Why is it essential that a questionnaire be carefully designed and prepared? What problems can arise when a survey has not been well thought out?

Question 11

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

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

Decreasing 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 14

How does marketing research differ when conducted in other countries?

Question 15

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) the use of tools and methods to measure and interpret the effectiveness of a firm's marketing activities.
D) the collecting of data from secondary sources and internal documents.
E) an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities.

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

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

Question 18

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, such as a failure to attain objectives.

Question 19

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

Question 20

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

Question 21

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 22

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

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

Question 23

____ 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 24

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 25

An informed guess or assumption about a certain problem or 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 26

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 next 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 27

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 28

Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ____ research.

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

Question 29

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct

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

Question 30

Students from a marketing research class are involved in a project about the level of sleep, exercise, and stress 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 which of the following with regard to their data?

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

Question 31

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 32

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 33

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 34

A study that is valid and reliable

A) is called a marketing research study.
B) measures what it is supposed to measure and produces almost identical results in repeated trials.
C) is expensive to implement and complete.
D) measures subtle differences in the population being studied and produces almost identical results in repeated trials.
E) is difficult to produce without expert researchers.

Question 35

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 36

Secondary data cannot be obtained from

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

Question 37

Research that allows marketers to make causal inferences about relationships is called

A) variable research.
B) relationality.
C) exploratory research.
D) linkage research.
E) experimental research.

Question 38

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; however, if Saks does its own study it would collect ______ data.

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

Question 39

Research designed to verify insights through an objective procedure to help marketers make decisions is called

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

Question 40

Suppose that marketers at Sun Products are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales 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 41

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 42

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) Random
E) Judgment

Question 43

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, ____ sampling is being used.

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

Question 44

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 45

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

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

Question 46

The two basic types of sampling that 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 47

When working as a summer intern for a local retail store, Jan 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 48

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 49

Georgia-Pacific needs information about trends in housing starts and remodeling around the country. Since it will be difficult to collect _______ from the numerous locations, it decides to use _____ data from the U.S. Department of Commerce reports to get this information.

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

Question 50

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 51

If 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 would be

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

Question 52

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

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

Question 53

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 54

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 55

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 56

Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ____ data.

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

Question 57

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 58

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 59

Subway 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 Subway using?

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

Question 60

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

Question 61

Kelsey thinks she will be able to get the highest quality of responses concerning the product features most sought by consumers through personal interviews. She decides to conduct her interviews at ____ because this is a common location for personal interviews today.

A) a shopping mall
B) the respondent's home
C) the interviewer's home
D) the company's offices
E) a city park

Question 62

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 63

Which of the following is the least flexible survey method?

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

Question 64

Mika is the marketing research manager for a company that sells skis and other sporting equipment. His company currently has a profitable brand and a good share of the traditional ski market, but would like to enter the "extreme" category of winter sports. Mika needs to obtain information about consumer attitudes of the company's current products as well as attitudes of potential customers in the "extreme" consumer market. He does not have constraints on time, but he does have a modest budget for research. Mika should probably use _____ to obtain the data about the company's current products, and _____ to obtain information about the extreme consumers' attitudes.

A) crowdsourcing; online surveys
B) online surveys; focus groups
C) mail surveys; focus groups
D) personal interview surveys; online surveys
E) focus groups; mail surveys

Question 65

In which type of sampling design is the final choice of respondents left up to the interviewer?

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

Question 66

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

A) the ability to gain rapport with respondents.
B) the difficulty in asking probing questions.
C) that few companies prefer this survey method.
D) that only a small portion of the population likes to participate in telephone surveys.
E) the expense compared to in-home interviews.

Question 67

Less randomness and more difficulty in obtaining a sample size are disadvantages of _________ .

A) personal interview surveys
B) telephone surveys
C) mail surveys
D) social media
E) online experimentation

Question 68

The manager of MegaMarket is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend?

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

Question 69

Compared to a mail survey, telephone surveys have

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

Question 70

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 71

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

A) having to offer premiums.
B) the failure of respondents to return the questionnaire.
C) the elimination of interview bias.
D) the lack of open-ended questions.
E) the cost.

Question 72

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use

A) observation.
B) a focus-group interview.
C) an on-site computer interview.
D) a shopping mall intercept interview.
E) a telephone survey.

Question 73

Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. During the discussion, Emily was annoyed that Jack, another participant, seemed to "hog" the discussion and didn't give others a chance to speak. This is an example of a problem when using

A) focus-group interviews.
B) group surveys.
C) personal interview surveys.
D) sampling teams.
E) group think.

Question 74

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 75

What is the primary factor contributing to the increasing difficulty 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 76

Nielsen Marketing Research is concerned about using surveys to conduct a marketing research project because

A) fewer people are willing to participate.
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 77

A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n)

A) in-home interview.
B) mail survey.
C) focus-group interview.
D) shopping mall intercept interview.
E) chat room interview.

Question 78

Quota sampling is most commonly used in

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

Question 79

Participants in ____ frequently get to see pictures, products, advertising samples, and diagrams.

A) quota samples
B) personal interview surveys
C) mail surveys
D) telephone surveys
E) probability samples

Question 80

Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys?

A) Total population surveys
B) In-home (door-to-door) interviews
C) Focus-group interviews
D) Personal interview surveys
E) Online surveys