Chapter 4

C) marketing information system (MIS)

3) 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.

D) Internal information may be incomplete or in the wrong form for making marketing decisions.

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

B) defining the problem and objectives of the study

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

C) Internet search engines can be useful sources of relevant secondary data.

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

B) It involves sending observers to watch and interact with consumers in their natural environments.

38) Which of the following is true of ethnographic research?

D) ethnographic research

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

A) exploratory research

47) Observation is best suited for ________.

A) mail questionnaires

50) Wilma Roberts is conducting research to determine consumers' personal grooming habits. Because of the personal nature of the survey questions involved, Wilma 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 Wilma's requirements?

B) Controlling the online sample is difficult.

67) Which of the following is a disadvantage of online focus groups?

A) quota sample

73) Which of the following refers to a nonprobability sample in which the researcher finds and interviews a prescribed number of people in each of several categories?

D) Neuromarketing

76) ________ refers to the measurement of brain activity to learn how consumers feel and respond.

C) customer relationship management

79) Customer information is buried deep in the separate databases and records of different company departments. To overcome such problems, many companies are now turning to ________ to manage detailed information about individual customers.

B) data mining

82) In CRM, ________ techniques are used to sort through data and locate useful findings about customers.

D) sharing information without the customer's authorization

91) While collecting sensitive customer data, market researchers should adhere to all of the following guidelines EXCEPT ________.

True

98) T/F A management information system (MIS) assesses information needs, develops needed information, and helps decision makers use the information.

C) data obtained from the surveys conducted in the 75 companies

(93-95) 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. 93) In this scenario, which of the following is an example of primary data?

A) most marketing managers are overloaded with data and often overwhelmed by it

1) With the recent explosion of information technologies, ________.

True

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

B) Competitive marketing intelligence

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

D) competitive marketing intelligence

12) The marketing department of a reputed 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?

B) secondary data

29) Commercial online databases are rich sources for obtaining ________.

D) Competitive marketing intelligence relies upon publicly available information.

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

C) information collected for the specific purpose at hand

27) Primary data consist of ________.

B) secondary data

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

A) exploratory

22) In__ research, the objective is to father preliminary information that will help define the problem and suggest hypotheses.

B) outlines sources of existing data and spells out the specific research approaches

23) The research plan ________.

B) descriptive research

25) 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?

C) information that already exists somewhere, having been collected for another purpose

26) Secondary data consist of ____.

C) causal

24) Ramona Adams, a marketing manager working in an American firm, 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. Ramona is involved in ________ research.

E) benchmarking competitors' products

14) Which of the following refers to a marketing intelligence technique?

D) chief listening officer

15) Which of the following most likely refers to a person who is charged with sifting through online customer conversations and passing along key insights to marketing decision makers?

D) gain early warnings of competitor moves and strategies

16) Firms use competitive marketing intelligence to ________.

C) Marketing research

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

c) Marketing research gives marketers insights into customer motivations

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

E) customer insights

2) Brad works with a reputed 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 consumer behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the ________ team.

C) interpreting and reporting the findings

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

A) to test hypotheses about cause-and-effect relationships

21) Which of the following is the objective of casual research?

D) It can be obtained more quickly and at a lower cost than primary data.

30) Which of the following is true about secondary data?

E) Relevant secondary data can be difficult to locate.

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

D) descriptive research

32) 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?

C) ethnographic research

33) 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 ________.

B) Internet search engines

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

A) Observational research

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

B) Ethnographic research

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

B) Netnography

39) ________ research involves observing customers in a natural context on the Internet.

D) assess information needs

4) An MIS is used to ________.

B) experimental research

40) 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 ________.

D) Survey research

41) ________ 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) The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.

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

E) Survey research is the most widely used method for primary data collection.

43) Which of the following is true about survey research?

A) Experimental research

45) ________ 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.

B) causal

46) Experimental research is best suited for gathering ________ information.

D) experimental research

48) Kinger Burgers came out with a new hamburger and, before including it into 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 using the information to help them set a nationwide price for the new offering. This is an example of ________.

A) The response rate of mail questionnaires is often very low.

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

C) develop customer insights

5) An MIS user should most likely be able to ________.

D) online surveys

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

C) mail questionnaires

52) 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?

C) online surveys

53) Ursula Williams owns a small publishing company in Utah and has a very restrictive budget for the market research she currently needs to conduct. She requires a large sample size for her research in order to arrive at insightful conclusions. Additionally, she wants to have excellent control over her sample. Keeping in mind her restrictive budget and other specifications, which of the following methods of contact would you advise Ursula to use?

D) The speed with which data is collected is high.

54) Which of the following is an advantage of telephone interviews?

A) simple random sample

55) For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a ________.

A) online surveys

56) Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method which can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?

A) individual interviewing

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

E) Focus group interviewing

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

A) places a high emphasis on speed

59) Jake Adams works for a marketing research firm and is currently conducting research for a company that wants to investigate multiple international markets for the possibility of expansion. Internet-based survey research would be the most attractive research option for Jake if his client ________.

D) marketing information system

6) 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) ________.

B) immersion group

60) Happy Pets, a company manufacturing pet foods and accessories, created a membership club for its regular customers called "I Love My Pet." This group consists of animal lovers selected by the company to complete product-related polls, chat with product developers, and provide feedback about specific products. Which of the following best describes "I Love My Pet"?

C) group interviewing

61) Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited 8 regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods has Redrunners used in this instance?

A) How is voting going to help the nation?

62) Which of the following is an example of an open-end question?

D) Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.

63) Which of the following is most likely a disadvantage of focus group interviewing?

D) Would you like to try our new ice cream flavor?

64) Which of the following questions is an example of a closed-end question?

D) immersion groups

65) To overcome problems in focus group interviewing, some companies employ small groups of consumers who interact directly and informally with product designers without a focus group moderator present. Such groups are known as ________.

C) Internet-based survey research is characterized by high speed and low costs.

66) Which of the following is true about Internet-based survey research?

D) sample

68) A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.

A) every member of the population has a known and equal chance of selection

69) In a simple random sample, ________.

B) internal databases

7) Diana, 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, Diana is using ________.

C) cluster sample

70) Which of the following refers to a probability sample in which the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview?

C) convenience sample

71) Which of the following refers to a nonprobability sample in which the researcher selects the easiest population members from which to obtain information?

E) customer relationship management

84) Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph's primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, used by Zenith to personalize its customers' shopping experiences. Ralph's position at Zenith requires him to focus primarily on ________.

B) judgment sample

72) Which of the following refers to a nonprobability sample in which the researcher uses his or her evaluation techniques to select population members who are good prospects for accurate information?

B) questionnaires and mechanical devices

74) In collecting primary data, marketing researchers have a choice of two main research instruments, ________.

A) biased phrasing

75) While creating research questionnaires, researchers must particularly avoid the use of ________.

C) implement the research plan

77) After a research instrument is selected, the next step in the marketing research process is to _______.

C) firms manage customer touch points to maximize customer loyalty

78) Customer relationship management (CRM) helps ________.

C) gain competitive advantage

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

D) CRM aims to maximize customer loyalty.

80) Which of the following is true about customer relationship management (CRM)?

D) understand the competition better

83) A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.

C) Internet search engines

85) Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and would like to gather free secondary data. What is the best option for Joe?

A) reliable secondary data is both scarce and difficult to find

86) Often, international researchers must collect their own primary data because ________.

A) language

87) For international researchers, ________ is the most obvious obstacle.

A) Translation of questionnaires increases research costs and risks of error.

88) Which of the following is true with regard to problems faced by international researchers?

D) Costly international research is necessary if firms want to succeed in foreign markets.

89) Which of the following is most likely true about international research?

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

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

D) consider marketing research efforts, such as interviewing, intrusions on consumer privacy

90) Consumers who mistrust marketing research are more likely to ________.

C) safeguard the privacy of a firm's customers

92) In a company, the job of a chief privacy officer (CPO) is to ________.

B) collecting data about competitors

94) In this scenario, which of the following is representative of competitive marketing intelligence?

D) stratified random sample

95) Of the 141 companies on the list, Jason chose to survey only 75 of them. He sent surveys to both small as well as large companies. If Jason selected survey recipients randomly from two mutually exclusive groups comprising of small and large companies respectively, he most likely used a ________.

False

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

True

97) T/F The real value of marketing research lies in the customer insights that it provides.

True

99) T/F Internal databases are electronic collections of consumer and market information obtained from data sources within a company's network.