Deck 4: Managing Marketing Information to Gain Customer Insights

Question 1

Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using ________.

A) ethnographic research
B) internal databases
C) descriptive research
D) data warehouses
E) causal research

Answer 1

B

Question 2

The real value of marketing research lies in the customer insights that it provides.

Answer 2

True

Question 3

An MIS is used to ________.

A) generate product interest
B) develop marketing plans
C) identify demographic trends
D) assess information needs
E) test hypotheses about cause-and-effect relationships

Answer 3

D

Question 4

The real value of marketing information lies in how it is used ________.

A) in determining selling prices for products
B) in analyzing budgets
C) in creating advertising campaigns
D) in the customer insights that it provides
E) in introducing a new product to the marketplace

Question 5

The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies.

A) large reports
B) huge and complex data sets
C) information requests
D) social media contacts
E) e-mail messages

Question 6

A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

A) enterprise planning system
B) enterprise information system
C) marketing information system
D) corporate performance management system
E) geographic information system

Question 7

With the recent explosion of information technologies, companies are finding it difficult to generate marketing information in great quantities.

Question 8

What is the function of a marketing information system (MIS)?

Question 9

Briefly explain the functions of a customer insights team.

Question 10

A good marketing information system balances the information users ________ to have against what they ________ and what is ________ to offer.

A) request; want; affordable
B) demand; should request; time-efficient
C) want; are unaware of; the newest technology
D) would like; need; feasible
E) don't need; can afford; available

Question 11

Information in a company's database can come from many sources. An advantage of harnessing such information is to ________.

A) eliminate employee turnover
B) achieve a high degree of employee empowerment
C) gain competitive advantage
D) gain access to mass markets
E) eliminate resource dependency

Question 12

Challenges of managing big data include ________.

A) determining what information to request
B) investing in appropriate technology
C) hiring enough software engineers
D) properly routing the information after gathering it
E) accessing and sifting through so much data

Question 13

The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) ________.

A) enterprise planning system
B) product mix
C) strategic planning system
D) marketing information system
E) business portfolio

Question 14

Brad works with a reputable retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumers' behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the ________ team.

A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights

Question 15

With the recent explosion of information technologies, ________.

A) most marketing managers are overloaded with data and often overwhelmed by it
B) most marketing managers are concerned solely about the duplication of content
C) companies have ceased to feel the need for marketing information systems
D) companies have ceased to maintain internal databases
E) it has become more difficult and expensive to obtain primary data

Question 16

With current technology systems, marketers find it simple to access and sift through the data that is gathered.

Question 17

What do marketers gain from gathering and analyzing information about customers and the needs and motivations of those customers?

Question 18

Costs are involved in obtaining, ________, storing, and delivering information.

A) analyzing
B) interviewing
C) conducting
D) designing
E) reporting

Question 19

An MIS user should most likely be able to ________.

A) implement new technology
B) increase order requests
C) develop customer insights
D) analyze employee turnover
E) establish short-term objectives

Question 20

A management information system assesses information needs, develops needed information, and helps decision makers use the information.

Question 21

Which of the following statements is true regarding competitive marketing intelligence?

A) The advantage of using competitive marketing intelligence is negligible.
B) The goal of competitive marketing intelligence is to improve recruiting efforts.
C) Competitive marketing intelligence relies upon costly internal databases.
D) Competitive marketing intelligence relies upon publicly available information.
E) Companies using competitive marketing intelligence routinely ignore consumers' online chatter.

Question 22

Problems with internal databases include all of the following EXCEPT that ________.

A) data ages quickly
B) the data is in the wrong form for making marketing decisions
C) managing and mining mountains of information requires sophisticated equipment
D) keeping a database current requires major effort
E) information can be accessed more cheaply

Question 23

Which of the following is a disadvantage of using information from internal databases?

A) Obtaining information from internal databases is both time-consuming as well as expensive.
B) It is not possible to verify information obtained from internal databases.
C) Using information from internal databases leads to biased research findings.
D) Internal information may be incomplete or in the wrong form for making marketing decisions.
E) Internal databases do not support highly sophisticated technologies that make it difficult to store large volumes of data.

Question 24

Refer to the scenario below to answer the following question(s).
Jason West, owner of A1 Cleaning, started his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months, Jason has seen a decline in demand for his office cleaning services. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason knew that office cleaning was a high-frequency service that is usually performed daily; therefore, competitors must have been doing something to attract his customers. Building a competitive advantage seemed to be the only option to offset competition. But as Jason pondered over his dilemma, he realized that prior to building his competitive advantage he needed to better understand how customers assessed service quality and what they look for in a superior cleaning service.
Jason developed a research plan. First, he gathered information about his competitors, primarily through pamphlets and Web sites, as well as through a few phone calls in order to find out exactly what the competitors offered in their cleaning packages. In addition, Jason obtained from the Chamber of Commerce an updated list of local corporations. He planned on sending written questionnaires to them.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.
In this scenario, which of the following is representative of competitive marketing intelligence?

A) formulating a research plan
B) collecting data about competitors
C) sending mail questionnaires to focus groups
D) creating competitive advantage
E) consolidating core competencies

Question 25

External databases are electronic collections of consumer and market information obtained from data sources within a company's network.

Question 26

What is the most important characteristic of a good MIS?

Question 27

Which of the following is NOT a method of gathering good marketing intelligence?

A) sending out teams of trained observers to mingle with customers
B) interviewing competitors' employees to learn as much "inside information" as possible
C) setting up digital centers that monitor brand-related online consumer and marketplace activity
D) purchasing merchandise from competing sites to analyze and compare their assortment, speed, and service quality
E) searching specific competitor names, events, or trends to see what comes up

Question 28

Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace.

Question 29

Competitor intelligence can be collected from people inside the company, such as executives, engineers, purchasing agents, and the sales force, as well as customers.

Question 30

Internal databases usually can be accessed more quickly and cheaply than other information sources.

Question 31

The goal of competitive marketing intelligence is to evaluate and prevent high employee turnover.

Question 32

________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

A) Data warehousing
B) Competitive marketing intelligence
C) SWOT analysis
D) Ethnographic research
E) Customer relationship management

Question 33

Which of the following is an advantage of using an internal database?

A) Data always remains current in internal databases.
B) Highly sophisticated equipment and techniques are not required for maintaining internal databases.
C) Internal databases can be accessed more quickly and cheaply than other information sources.
D) Internal databases require less maintenance efforts.
E) Information obtained from internal databases is almost always sufficient for making marketing decisions.

Question 34

Internal information is almost always sufficient for making marketing decisions.

Question 35

Which of the following refers to a marketing intelligence technique?

A) interviewing customers randomly
B) increasing the annual budget for R&D
C) investing heavily in primary research
D) implementing product diversification
E) benchmarking competitors' products

Question 36

The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?

A) ethnographic research
B) strategic planning
C) data warehousing
D) competitive marketing intelligence
E) customer relationship management

Question 37

Data ages quickly.

Question 38

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

A) Product marketing
B) Strategic planning
C) Marketing research
D) Market segmentation
E) Causal research

Question 39

Marketers can obtain information from internal data and from competitive marketing intelligence. Compare and contrast the two sources of information.

Question 40

Firms use competitive marketing intelligence to ________.

A) create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors

Question 41

The research plan ________.

A) provides comprehensive marketing intelligence about competitors
B) outlines sources of existing data and spells out the specific research approaches
C) does not include sampling plans
D) does not include contact methods
E) precedes the definition of research objectives

Question 42

Secondary data consist of ________.

A) information collected for the specific purpose at hand
B) data that does not age
C) information that already exists somewhere, having been collected for another purpose
D) information collected from conducting personal, in-depth interviews
E) data that is unreliable and unsuitable for the purpose of making marketing decisions

Question 43

Which of the following is the final step of the marketing research process?

A) developing the research plan
B) implementing the research plan
C) interpreting and reporting the findings
D) selecting a research agency
E) defining the research objectives

Question 44

Primary data consist of ________.

A) data that does not age
B) data obtained from the public domain
C) information collected for the specific purpose at hand
D) information that already exists somewhere, having been collected for another purpose
E) information that is the least expensive and the easiest to obtain

Question 45

Which of the following is a disadvantage of using secondary data?

A) Secondary data is generally not appropriate for consumer products.
B) Collecting secondary data is time consuming.
C) Few sources exist for secondary data.
D) Gathering secondary data is costly.
E) Relevant secondary data can be difficult to locate.

Question 46

Which of the following is a valid source of secondary data?

A) personal letters and correspondence
B) Internet search engines
C) ethnographic research
D) direct surveys
E) interviews

Question 47

Which of the following is true with regard to gathering secondary data?

A) Gathering secondary data involves costly fees to government agencies.
B) Commercial online databases contain primary rather than secondary data.
C) Internet search engines can be useful sources of relevant secondary data.
D) It is illegal for firms to purchase secondary data from outside suppliers.
E) Secondary data eliminates the need for primary data in most cases.

Question 48

Information collected from Internet search engines is an example of ________ data.

A) primary
B) secondary
C) binary
D) low-level
E) disposable

Question 49

Which of the following is the first step in the marketing research process?

A) developing a marketing information system
B) defining the problem and objectives of the study
C) developing the research plan
D) implementing the research plan
E) interpreting and reporting the findings

Question 50

Commercial online databases are rich sources for obtaining ________.

A) primary data
B) secondary data
C) customer insights
D) low-level data
E) binary data

Question 51

Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?

A) internal research
B) descriptive research
C) causal research
D) exploratory research
E) demographic research

Question 52

Designing a plan for primary data collection requires decisions on all of the following EXCEPT ________.

A) research instruments
B) contact methods
C) sampling plan
D) research results
E) research approaches

Question 53

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

A) The marketing research process depends primarily on sophisticated internal databases.
B) The marketing research process requires assessing macroeconomic forces.
C) Marketing research gives marketers insights into customer motivations.
D) Marketing research eliminates the need for a SWOT analysis.
E) Marketing research is a simple two-step process.

Question 54

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

A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive

Question 55

In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.

A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive

Question 56

Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.

A) exploratory
B) descriptive
C) causal
D) constructive
E) ethnographic

Question 57

The objective of causal research is to ________.

A) test hypotheses about cause-and-effect relationships
B) gather preliminary information that will help suggest hypotheses
C) describe things, such as the market potential for a product
D) assign a cause to a seemingly random event
E) predict the effect of a random event on unrelated entities

Question 58

The research plan should be presented in a written proposal. The proposal should include all of the following EXCEPT ________.

A) the predicted results
B) research objectives
C) how the results will help management's decision making
D) estimated research costs
E) the information to be obtained

Question 59

Beth Williams works for a marketing research company in Chicago. Her current research involves finding the market potential for a client's new line of sports apparel. Given her objective, which of the following types of research is the most suitable for Beth?

A) causal research
B) constructive research
C) statistical research
D) descriptive research
E) exploratory research

Question 60

Which of the following is true about secondary data?

A) It is always current and, unlike primary data, it does not have to be updated.
B) Unlike primary data, it can be obtained by using direct surveys and questionnaires by the company.
C) It cannot provide extra information a company is looking for.
D) It can be obtained more quickly and at a lower cost than primary data.
E) It requires more effort compared to gathering primary data.

Question 61

A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.

A) viral marketing
B) survey research
C) ethnographic research
D) experimental research
E) niche marketing

Question 62

Which of the following is an advantage of telephone interviews?

A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.

Question 63

Which of the following is true with regard to mail questionnaires?

A) The response rate of mail questionnaires is often very low.
B) Mail questionnaires are highly flexible.
C) The researcher has maximum control over the mail questionnaire sample.
D) Mail questionnaires are unsuitable for collecting large amounts of information about respondents.
E) Respondents always provide honest answers to personal questions on mail questionnaires.

Question 64

Maria Ramirez is conducting research to determine consumers' personal grooming habits. Because of the personal nature of many of the survey questions, Maria wants to select the contact method that is most likely to encourage respondents to answer honestly and that will allow her to easily collect large amounts of data. Which of the following is best suited to meet Maria's requirements?

A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) immersion group discussions

Question 65

________ involves gathering primary data by closely examining relevant people, actions, and situations.

A) Observational research
B) Survey research
C) Telephone interviewing
D) Causal research
E) Group interviewing

Question 66

Which of the following is most likely an advantage of survey research?

A) The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.
B) Survey research allows researchers to observe respondents closely in their natural environments.
C) The chances of getting dishonest feedback are almost negligible with survey research.
D) The attitudes and motives of the customers can be easily determined through survey research.
E) The data gathered in survey research is impartial and free from bias as the surveys are done in-person to evaluate consumer behavior.

Question 67

While looking for ideas on how to craft a user-friendly dishwasher, the designers of a dishwasher-manufacturing company spent 10 days observing people as they used their dishwashers in their homes. In this instance, the designers were conducting ________.

A) survey research
B) experimental research
C) quantitative marketing research
D) ethnographic research
E) causal research

Question 68

Which of the following contact methods is the most cost-effective?

A) telephone interviews
B) individual interviews
C) in-depth interviews
D) online surveys
E) group interviews

Question 69

Loft Industries sells roof trusses to contractors and builders and is currently looking for honest feedback on its services. However, in the past, most of its efforts to procure feedback from customers did not yield any meaningful data. According to the marketing managers of Loft Industries, feedback was more polite than honest. Which of the following contact methods should Loft Industries most likely use to maximize its chances of receiving honest and impersonal feedback?

A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews

Question 70

Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.

A) niche marketing
B) experimental research
C) product differentiation
D) ethnographic research
E) viral marketing

Question 71

Which of the following is true about survey research?

A) It involves sending observers to watch and interact with consumers in their natural environments.
B) It is best suited for gathering causal information.
C) It involves selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
D) The level of flexibility in survey research is lower than most other research methodologies.
E) Survey research is the most widely used method for primary data collection.

Question 72

Which of the following is true of ethnographic research?

A) It is a type of experimental research that involves evaluating group responses.
B) It involves sending observers to watch and interact with consumers in their natural environments.
C) It is a traditional quantitative research approach.
D) Information used in this mode of research is mainly derived from secondary data sources.
E) It is a form of survey research.

Question 73

________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.

A) Experimental research
B) Constructive research
C) Observational research
D) Survey research
E) Descriptive research

Question 74

________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization.

A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing

Question 75

Experimental research is best suited for gathering ________ information.

A) exploratory
B) causal
C) random
D) unstructured
E) descriptive

Question 76

________, a form of observational research, involves sending observers to watch and interact with consumers in their natural environments.

A) Group interviewing
B) Ethnographic research
C) Survey research
D) Experimental research
E) Causal research

Question 77

Which form of marketing research involves talking with people in their homes or offices, on the street, or in shopping malls?

A) individual interviewing
B) focus-group interviewing
C) telephone interviewing
D) mail questionnaires
E) observational research

Question 78

Observation is best suited for ________ research.

A) exploratory
B) constructive
C) experimental
D) descriptive
E) survey

Question 79

________ involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, or buying behavior. It is the most widely used method for primary data collection.

A) Experimental research
B) Causal research
C) Ethnographic research
D) Survey research
E) Exploratory research

Question 80

Kinger Burgers came out with a new hamburger and, before including it on its main menu, released it in two different cities with two different prices. The marketers at Kinger Burgers then analyzed the different levels of purchase made at these two different places, planning to use the information to help them set a nationwide price for the new offering. This is an example of ________.

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