Deck 3: Collecting Information and Forecasting Demand

Question 1

Few consumers actually delete cookies frequently. When customers do not delete cookies, they expect customized marketing appeals and deals.

Answer 1

True

Question 2

By equipping its sales force with handheld devices with barcode readers and Internet connections to speed inventory assessment, TaylorMade allows sales executives to have significantly more time to interact with their consumers. This is an example of the use of technology in improving ________.

A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering

Answer 2

A

Question 3

What are the two basic advantages that a company's marketers have in identifying significant changes in the market?

Answer 3

The two advantages are
1. They have disciplined methods for collecting information.
2. They spend more time interacting with customers and observing competition.

Question 4

Marketers have little information about how consumption patterns vary across and within countries.

Question 5

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents which are then sent to various departments.

A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

Question 6

Describe the steps in the order-to-payment cycle.

Question 7

A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.

A) sales-force surrogates
B) intermediaries
C) external networks
D) advisory panels
E) customer feedback systems

Question 8

The company's marketing information system should be a mix of what managers think they need, what managers really need, and ________.

A) what the marketing research department is able to do
B) what consumers are willing to consume
C) what the government policies allow
D) what is acceptable at the industry level
E) what is economically feasible

Question 9

Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly and accurately?

Question 10

The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery.

A) sales information system
B) data mining system
C) order-to-payment cycle
D) information needs probe
E) data warehouse

Question 11

What is a marketing information system (MIS)? From what sources is the MIS developed?

Question 12

List three examples of how companies are using Big Data.

Question 13

Because customers are not really concerned with timely delivery, customers are unlikely to differentiate between firms based on their order-to-payment cycles.

Question 14

Companies with superior information enjoy a competitive advantage.

Question 15

As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.

A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Question 16

Mailing of a new offer to a handful of selected customers instead of all customers reduces the response rate to the offer.

Question 17

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

Question 18

Companies can practice targeted marketing by using ________, which are records of Web site usage stored on personal browsers.

A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots

Question 19

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.

A) internal
B) revenue
C) thematic
D) happenings
E) process

Question 20

A company can take several steps to improve the quality of its marketing intelligence. Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards?

A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports

Question 21

One of the ways to find relevant online information on competitors' strengths and weaknesses might be to frequent distributor or sales agent feedback sites.

Question 22

A fad is more predictable and durable than a trend.

Question 23

A growing population does not mean growing markets unless ________.

A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus

Question 24

When gathering marketing intelligence, companies often use the US census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of the more than 281 million people living in the United States. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?

A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Question 25

A ________ is "unpredictable, short-lived, and without social, economic, and political significance."

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 26

A ________ is a direction or sequence of events that has some momentum and durability; it reveals the shape of the future and can provide strategic direction.

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 27

The competitive intelligence function works best when it is closely coordinated with the decision-making process.

Question 28

What is a marketing intelligence system? How can marketing intelligence data be collected?

Question 29

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to?

A) training and motivating the sales force to spot and report new developments
B) motivating distributors, retailers, and other intermediaries to pass along important intelligence
C) hiring external experts to collect intelligence
D) using external network
E) purchasing information from outside research firms and vendors

Question 30

Briefly describe the five main ways in which marketers can find relevant online information on competitors' strengths and weaknesses.

Question 31

How do the distributors, retailers, and other intermediaries help a company to improve the quantity and quality of its marketing intelligence?

Question 32

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n) ________.

A) independent customer goods and service review forum
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor or sales agent feedback site

Question 33

PlanetFeedback.com is an example of a government-related public resource, which is one of the five main ways marketers can research competitors' product strengths and weaknesses online.

Question 34

Suppose Canon and Nikon are the only players in the digital camera industry. What can Canon do to acquire marketing intelligence?

Question 35

What are the various steps a company can take to improve the quality of its marketing intelligence function?

Question 36

If a company were pursuing a policy of networking externally to gather marketing intelligence, it might collect competitors' ads or look up news stories about competitors.

Question 37

Competitive intelligence gathering is inherently illegal and unethical.

Question 38

A ________ is a "large social, economic, political, and technological change that is slow to form, and once in place, influences us for some time - between seven and ten years, or longer."

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 39

When ConAgra learned that many mothers switched to time-saving meals and snacks when school started, it launched its "Seasons of Mom" campaign to help grocers adjust to seasonal shifts in household needs. Which of the eight possible actions to improve the quantity and quality of its marketing intelligence yielded this insight?

A) Train and motivate the sales force to spot and report new developments.
B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence.
C) Hire external experts to collect intelligence.
D) Network internally and externally.
E) Set up a customer advisory panel.

Question 40

Which of the following is true about trends in worldwide population growth?

A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

Question 41

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually eat, dress, and live well.

A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Question 42

Which of the following is NOT one of the reasons consumers are concerned about privacy?

A) Consumers worry that they will be robbed or cheated.
B) Consumers worry that their information will be used to customize their offers.
C) Consumers believe private information will be used against them.
D) Consumers believe they will be bombarded by solicitations.
E) Consumers believe that children will be targeted by ads.

Question 43

The traditional household consists of ________.

A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements

Question 44

By 2010, only ________ percent of US households were traditional households.

A) 20
B) 25
C) 28
D) 31
E) 33

Question 45

Which of the following economies provide limited opportunities to international marketers to develop product sales?

A) capitalist economies
B) subsistence economies
C) raw-materials-exporting economies
D) industrializing economies
E) industrialized economies

Question 46

Which of the following is likely to occur during economic downturns?

A) People tend to spend more on luxury goods.
B) Consumption of necessary goods decline.
C) Long-term credit is available at concessional rates of interest.
D) The purchasing power of the population declines.
E) The level of investment in the economy rises.

Question 47

________ beliefs and values are passed from parents to children and reinforced by social institutions - schools, churches, businesses, and governments; they are very difficult to change.

A) Transient
B) Secondary
C) Protected
D) Core
E) Variable

Question 48

When its monitoring software spotted a Twitter post that went to 10,000 followers from an upset consumer who couldn't redeem a prize from a MyCoke rewards program, Coke quickly posted an apology on his Twitter profile and offered to help resolve the situation. This is an example of which of the following?

A) mystery shopper actions
B) consumer panel data
C) purchasing outside information
D) acting on marketing intelligence
E) conducting a sentiment analysis

Question 49

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ are a major market for movies, music, surfing, and camping.

A) Makers
B) Preservers
C) Escapers
D) Changers
E) Developers

Question 50

Firms find "reverse innovation" advantage by introducing a commodity in a ________.

A) developed country and then distributing it globally
B) developing country and then distributing it in other developing countries
C) developing country and then distributing it globally
D) developed country and then distributing it in developing countries
E) developed country and then distributing it in other developed countries

Question 51

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.

A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Question 52

Which of the following would be the best illustration of a secondary belief or value?

A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest

Question 53

Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' views of ________.

A) others
B) organizations
C) themselves
D) the universe
E) society

Question 54

Abby lives in a suburb of Atlanta with her three children. She is part of the biggest household change this decade, which was ________.

A) a growing demand for larger apartments
B) a need for smaller-size food packages
C) the jump in households headed by women without husbands
D) the growth of the gay and lesbian population in the suburbs
E) the increase of empty nesters

Question 55

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc.?

A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

Question 56

Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.

A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches

Question 57

In the United States, people born between the years ________ are called baby boomers.

A) 1978 and 2002
B) 1946 and 1964
C) 1925 and 1945
D) 1965 and 1985
E) 1920 and 1940

Question 58

________ refer to groups of individuals who are born during the same time period and travel through life together.

A) Cohorts
B) Populations
C) Clans
D) Societies
E) Ethnic groups

Question 59

In the first two-and-a-half years of the iPad's existence, Apple sold ________ million units worldwide.

A) 97
B) 45
C) 63
D) 112
E) 91

Question 60

Which of the following represents a raw-material-exporting economy?

A) Papua New Guinea
B) Democratic Republic of Congo
C) India
D) Egypt
E) Philippines

Question 61

Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful?

A) demonstrate that the products will benefit both customers and the society in the long term
B) emphasize benefits to the consumer rather than environmental benefits
C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers
D) engage in "greenwashing" to highlight the environmental benefits of the product
E) explain the rules and regulations laid out by governmental agencies to protect the environment

Question 62

Of the following, which country received the highest score on the Greendex sustainable consumption index, which suggests they minimize their environmental impact via decisions made about transportation, household energy, resource use, and food/good consumption?

A) China
B) Brazil
C) India
D) United States
E) France

Question 63

Firms whose products require ________ resources - oil, coal, platinum, zinc, silver - face substantial cost increases as depletion approaches.

A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable

Question 64

When a company is said to have engaged in "greenwashing," it means that the ________.

A) company has significantly changed its business processes to incorporate a greener, more environmentally friendly philosophy
B) company has moved its production facilities to countries where environmental laws and regulations are less rigorous
C) company has changed its "green" image in order to appeal to a different, usually older, demographic
D) company's products are not nearly as green and environmentally beneficial as its marketing might suggest
E) company has undertaken a campaign to lobby for tougher environmental regulations for the industry

Question 65

________ Americans, the second-largest Asian population in the United States, is generally affluent, well-educated, and attractive to marketers.

A) Korean
B) Japanese
C) Chinese
D) Filipino
E) Indian

Question 66

Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets.

Question 67

Which of the following is the largest contributor to global warming, contributing almost a quarter of the carbon dioxide in the environment?

A) transportation
B) industrial production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires

Question 68

A possible unintended effect of business legislation is ________.

A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth

Question 69

The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life.

Question 70

Population growth is highest in countries and communities that can least afford it.

Question 71

Of all illiterate adults in the world, two-thirds are women.

Question 72

An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.

A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic

Question 73

Which of the following is true about the technology trends that marketers should monitor?

A) A growing portion of US R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

Question 74

Consumers belonging to the same ethnic group have identical tastes and preferences.

Question 75

Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles this situation?

A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipment.
E) Government restricts unfair trade practices to promote international trade.

Question 76

Households comprised of single, separated, widowed, and divorced individuals generally demand larger apartments and expensive appliances, furniture, and furnishings.

Question 77

A new market opportunity generally guarantees success, if the new product is technically feasible.

Question 78

Demographic developments are often unpredictable.

Question 79

There is a global trend toward an aging population.

Question 80

Which of the following is the second largest contributor to global warming, accounting for roughly a fifth of carbon emissions?

A) transportation
B) primary metal production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires