Deck 6: Global Information Systems and Market Research

Question 1

Japan is Coach's second largest market, representing about 20% of global sales. All of the following statements are true regarding the market for Coach's products compared to that in America except:

A)Japanese consumers are enormously brand-centric.
B)Japanese consumers are not as brand loyal as American consumers.
C)American women tend to carry two or three brands while their Japanese counterparts tend to carry as many as five.
D)The company's $500 handbags are especially popular with young women.
E)Coach has to work on improving its brand image in Japan.

Answer 1

E

Question 2

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

Answer 2

True

Question 3

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 3

C

Question 4

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 5

One challenge of using CRM is:

A)integrating data into customer relationship.
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 6

Every "touch point" provides important data about consumers.

Question 7

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 8

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 9

The Intranet is a private network that allows authorized company personnel or outsiders to share information electronically in a secure fashion without generating mountains of paper.

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

Although big data and big data analytics have long been the province of astronomers, meteorologists, and other members of the scientific community, it is only recently that big data collection and analysis has been used in business situations.

Question 12

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 13

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 14

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 15

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 16

CRM tools does 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 17

One of the key advantages 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 18

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 19

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

Question 20

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

Question 21

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 22

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 23

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 24

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 25

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.

Question 26

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

A)National Trade Data Base (NTD
B).
B)Census Bureau.
C)Bureau of Economic Analysis.
D)Eurostat.

Question 27

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)district wise
E)country wide

Question 28

A vice president of a shoe company was in India to assess the market. He found that many people in the southern part of India were walking bare footed. This can be indicative of either the fact that there is a potential market for shoes or there is no market for shoes in that part of the world. To formally confirm one instinct or the other the vice president should:

A)establish an office to start manufacturing shoes in India.
B)give free shoe samples to a selected group of customers.
C)conduct research to find potential and actual customers.
D)find out if that is true for other Asian countries.
E)give up the idea of doing business in India.

Question 29

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

Question 30

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 31

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 32

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 33

The term "Safe Harbor" agreement applies to privacy issues pertaining to the companies that wish to transfer data to the United States from Europe.

Question 34

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 35

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 36

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

Question 37

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 the information requirement.

Question 38

Which of the following lists some of the steps in the market research process in the correct order?

A)determine information requirement→problem definition→choose unit of analysis→examine data availability→assess value of research
B)problem definition→assess value of research→determine information requirement→choose unit of analysis→examine data availability
C)examine data availability→problem definition→choose unit of analysis→assess value of research→determine information requirement
D)choose unit of analysis→assess value of research→problem definition→determine information requirement→examine data availability
E)examine data availability→assess the value of research→problem definition→presentation

Question 39

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 40

According to the Global Market Research Reports, data for Chinese markets are available for:

A)cosmetics.
B)online music.
C)whiskies.
D)luxury goods.
E)pharmaceutical.

Question 41

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 42

In Mexico City, only 55-60% of the population owns a telephone. The number drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate the task of market researchers hoping to use a telephone survey to obtain a ________ of the Mexican population.

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

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

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

Question 45

Which of the following is not true of secondary data about global markets?

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

Question 46

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 47

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)what consumers really feel.

Question 48

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 49

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 50

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

Question 51

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

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

Question 52

When a trained person is recording the 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 53

Harley-Davidson celebrated its 110th anniversary in 2013. The company grew impressively during its century of operations. All of the following mentioned facts regarding the company are true except:

A)the company's international success came after years of neglecting overseas markets.
B)the company reacted swiftly to a growing threat from Japanese manufacturers.
C)early on, the company used an export-selling approach.
D)early on, it had an underdeveloped dealer network.
E)after the 1980s, they recruited dealers in the important Japanese markets.

Question 54

The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the country's telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n):

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

Question 55

Manufacturers of Splenda, a low-calorie sugar substitute, wanted to arrange a focus group to find out its use in different markets. Open-ended questions were used in order to secure the unconscious attitudes and biases held by the subjects. This type of technique is known as:

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

Question 56

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 57

When the Coca-Cola Company convened focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect ________ data.

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

Question 58

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 59

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 60

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 61

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

Question 62

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

Question 63

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 64

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 65

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

Question 66

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

Question 67

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 68

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 69

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 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

"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 72

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

Question 73

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.

Question 74

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

Question 75

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

Question 76

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 77

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)MDS
C)dependence techniques
D)factor loading
E)focus group

Question 78

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

Question 79

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 80

"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.