Chapter 4 Quiz

________ are small groups of consumers who interact directly and informally with product designers without a moderator.

Immersion groups - The definition of an immersion group is a small group of customers who interact with product designers to elicit more authentic responses; Here designers (researchers) immerse themselves with the responders to get detailed additional data

Which of the following is true of survey research?

It is the most widely used method for gathering primary data. - Survey research is not the most suitable for causal information - that is experimental research (thus B is incorrect). C is also incorrect because observational research is used for people who are unwilling to answer questions. D and E are wrong because survey research is used for descriptive research, and it is flexible - thus the answer is A, since survey research is the most commonly used.

Vincent Cosmetics decides to launch a cream with a claim that it made skin "nine times smoother." The claim is based on a study of thirty respondents who used products of other brands as well. However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin. In these circumstances, which of the following is the most ethical approach that Vincent Cosmetics can follow?

It should report the result as it is, or improve the product to match its claim. - A and B are incorrect because they would be falsifying research findings, which is unethical. E is also unethical because it ignores their research findings. As in D, they can claim that results must vary, however the second study on the larger sample proves that this would also be incorrect. Therefore, the answer is C because companies should not rig their research.

After a research instrument is selected, the next step in the marketing research process is ________.

implementing the research plan

A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively?

CRM systems - CRM systems, or customer relationship management systems, helps researchers sift through mounds of detailed customer information and dig out interesting findings about customers. These detailed information about customers personalities, likes and dislikes are integrated, analyzed, and used to maximize customer loyalty.

Which of the following is true of focus group discussions?

Consumers are not always honest and open about their opinions. - Although focus groups encourage participants to discuss thoughts and opinions, participants may feel uncomfortable sharing their opinions with others. This can lead to dishonesty because they do not want to say something they fear others may dislike. This is called socially desirable response

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

Its aim is to maximize customer loyalty.

Designing the sample requires deciding on the followings

What sampling unit, What sample size, and what sampling procedure. - Designing the sample requires three decisions. o Who is to be surveyed (what sampling unit)? o How many people should be surveyed (what sample size)? o How should the people in the sample be chosen (what sampling procedure)

A consumer is most likely to be paid a small fee for participating in which of the following?

a focus group interview - For focus groups individuals are recruited by market research firms and are paid for participating in the focus group. This is to compensate for participants time and for providing opinions..

Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.

causal - Causal research tests hypotheses about cause-and-effect relationships. Since Vernon Inc. is trying to determine if a lower price (cause. results in better sales)

Hammond Corp. operates in the highly aggressive electronics market. The firm aims to obtain early warnings of opportunities and threats caused by the actions of other firms that are doing well in the industry. Which of the following sources would best serve Hammond's purpose?

competitive marketing intelligence - Competitive marketing intelligence would best serve Hammond because he is looking for publicly available information about consumers, competitors, and developments in the marketplace, which is what competitive marketing intelligence monitors for.

In CRM, ________ is the technique that helps researchers sift through mounds of detailed customer information and dig out interesting findings about customers.

data mining - The definition of data mining in CRM is the method of sifting through individual customer data to maximize loyalty.

A market researcher wants to find the cause-and-effect relationship between using organic ingredients in food and the subsequent consumption by customers. He invites ten respondents to his research firm and asks them to taste two identical dishes. The dishes were prepared in a similar manner, but one has natural herbs for flavoring, and the other has artificial flavors. This is an example of ________.

experimental research - Experimental research involves placing subjects in different conditions. Here, the researcher had exposed the subjects to the two conditions of natural vs artificial flavors.

In the second step of the marketing research process, research objectives should be translated into specific ________.

information needs - The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans. Research objectives must be translated into specific information needs.

Diane Chambers, the marketing manager of FarmFresh, collects data from her monthly records of sales, costs, and cash flow. In this case, Diane is making use of ________ databases.

internal - Internal databases are collections of consumer and market information obtained from data sources within the company - her monthly records of sales, costs, and cash flow are internal data sources.

What are the two main types of research instruments used to collect primary data?

questionnaires and mechanical devices - Questionnaires and mechanical devices are known to be the two main types because questionnaires can be diverse (with open ended or closed ended questions) and mechanical instruments are especially frequently used.. Mechanical devices are sometimes used to measure physiological responses of research participants to product attributes or advertisements. Generally, what is measured is interest or emotions in response to what is seen, heard, felt, or smelled. Mechanical devices used in primary research data collection include Galvanometers, eye cameras, eye gaze recorders, audiometers, and tachistoscopes that show an image or ad.

Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________.

risk of error - questionnaires must be prepared in one language and then translated into the languages of each country researched. Responses then must be translated back into the original language for analysis and interpretation. This adds to research costs and increase the risk of error.

The availability of which of the following is most problematic in international marketing research?

secondary data - In many foreign markets, the international researcher may have a tough time finding good secondary data. Whereas U.S marketing researchers can obtain reliable secondary data from dozens of domestic research services.

Causal research is used to ________.

test hypotheses about cause-and-effect relationships - The objective of casual research is to test hypotheses about cause and effect relationship. To determine causality, it is important to observe variation in the variable assumed to cause the change in the other variable, and then measure the changes in the other variable. For example, would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition

Competitive marketing intelligence is:

the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. - Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. Marketing intelligence techniques range from observing consumers firsthand to quizzing the company's own employees, benchmarking competitors' products, researching the Internet, and monitoring social media buzz.