Deck 6: Global Information Systems and Market Research

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Although many professional women appreciated the conservative styling of the signature Coach bag,they did not necessarily regard Coach's accessories as must-have fashion items.

Answer 3

True

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

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 11

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 12

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 13

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 14

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

Question 15

An intranet is a public network that allows authorized company personnel or outsiders to share information electronically in a secure fashion.

Question 16

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 17

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

Question 18

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 19

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 20

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

Question 21

It is difficult to obtain a representative sample in Brazil since the technological infrastructure for gathering market data is minimal.

Question 22

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 23

"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 24

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 25

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 26

When using a "projective technique," the researcher presents close-ended or ambiguous stimuli to a subject in a focus group.

Question 27

When research shows that Burberry and Ferragamo are perceived as the most similar by consumers while Coach and Dior are the farthest apart,researchers can interpret the results to show which brands are in direct competition.

Question 28

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 29

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

Question 30

In global marketing research,the results of a nonprobability sample can be projected with statistical reliability.

Question 31

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 32

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.

Question 33

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 34

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 35

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 36

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 37

In global marketing research,it is important to establish scalar equivalence when obtaining information from different countries.

Question 38

"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.

Question 39

A marketer of breakfast cereals might send researchers to preselected households at 6 a.m.to watch families go about their morning routines.

Question 40

If interaction between two variables is desired,factor analysis can be used to transform large amounts of data into manageable units.

Question 41

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 42

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 43

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 44

The first step in formulating and conducting research is:

A)to define the problem.
B)information requirement.
C)choosing unit of analysis.
D)examine data availability.
E)research design.

Question 45

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 46

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 47

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 48

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 49

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 50

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 51

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 the 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 52

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

A)National Trade Data Base (NTDB).
B)Census Bureau.
C)Bureau of Economic Analysis.
D)Eurostat.
E)Gross Domestic Product (GDP).

Question 53

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 54

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 55

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 56

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 57

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 58

Harley-Davidson celebrates its 110th anniversary in 2013.The company has grown 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 59

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 60

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 61

Which of the following is true about etic and emic approaches to country analysis?

A)The etic and emic approaches are identical.
B)An emic approach studies a culture from within;etic analysis is "from the outside."
C)An emic approach studies a culture "from the outside";etic analysis studies a culture from within.
D)The emic / etic distinction is not useful in cultural studies.
E)The emic / etic approaches cannot be applied to Asian countries.

Question 62

According to David Arnold,there are four possible approaches to forecasting by analogy,which does not include which of the following?

A)Data is available on a comparable product in the same country.
B)Data is available on the same product in a comparable country.
C)Data is available on the same product from a dependent distributor in a neighboring country.
D)Data is available about a comparable company in the same country.
E)Data is available on the same product in every country.

Question 63

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 Chines 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 64

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 65

Whirlpool conducts usability studies that provide insight into the ways consumers interact with its products.In one study in an emerging market,engineers and designers stood behind a two-way mirror and watched as a volunteer put groceries away in a Kenmore Elite refrigerator.The Whirlpool team recorded a variety of data,such as the amount of time required for the volunteer to finish the task and the number of features used.The basis of this research study was based on the fact that:

A)listening to customers is only possible in America.
B)data collected in the United States should be applicable in other countries.
C)consumers in different countries prefer different types of features.
D)in China,it will be difficult to find enough space in homes to put a refrigerator.
E)in India,refrigerators are seldom used by customers.

Question 66

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 67

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 68

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 69

Suppose Apple has collected extensive survey data about its new iPhone,and respondents have rated it on twenty 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 70

In India,only about 10% of men who shave use Gillette razors.Worldwide,50% of male shavers use Gillette products.To achieve greater penetration in India,Gillette rolled out a no-frills brand that costs 15 rupees-about 34 cents.The Gillette Guard has a lighter handle that is cheaper to produce.It also lacks the lubrication strip found in Gillette's more expensive razors,and replacement blades cost only 5 rupees (11 cents).This use of data and process are described as:

A)demand pattern analysis.
B)income elastic analysis.
C)factor analysis.
D)market estimation by analogy.
E)multidimensional scaling.

Question 71

In Singapore,Coca-Cola wanted to develop an advertisement program.They selected a group of teenagers in a room,and a trained moderator facilitated discussion asking questions on 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 72

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 73

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 74

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 75

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 76

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 77

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 78

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 79

A market research study of soft drink consumption and distribution in Hungary commissioned by an American company indicated that soft drinks were available in drugstores.However,Western-style drugstores do not exist in Hungary.This illustrates an important issue in global marketing research,namely:

A)inflated data.
B)using convenience samples.
C)market estimation by analogy.
D)comparability of data.
E)using multiple dimensional scaling.

Question 80

Manufacturers of Splenda,a low-calorie sugar,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.