Chapter 4 Marketing
46) Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population. A) group B) sample C) population D) target group E) audience
Answer: B Diff: 1 Page Ref: 116 Skill: Concept
56) Which of the following most accurately identifies the purpose of a data warehouse? A) to prioritize information B) to integrate information a company already has C) to interpret data D) to analyze data E) to identify and discard old data
Answer: B Diff: 2 Page Ref: 121 Skill: Concept AACSB: Use of IT
57) In CRM, findings about customers discovered through ________ techniques often lead to marketing opportunities. A) data warehousing B) data mining C) customer strategy D) customer loyalty management E) value network
Answer: B Diff: 2 Page Ref: 121 Skill: Concept AACSB: Use of IT
67) Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________. A) foreign trade B) risks of error C) response rate D) need for a larger sample E) reliance on primary data
Answer: B Diff: 2 Page Ref: 125 AACSB: Multicultural and Diversity
40) Which of the following contact methods is generally the least flexible? A) telephone interviewing B) personal interviewing C) mail questionnaires D) online surveys E) online panels
Answer: C Diff: 2 Page Ref: 112 Skill: Concept AACSB: Communication
52) After a research instrument is selected, the next step in the marketing research process is ________. A) selecting a sampling method B) interpreting the findings C) implementing the research plan D) collecting secondary data E) selecting a research approach
Answer: C Diff: 2 Page Ref: 120 Skill: Concept
39) Which of the following is NOT a disadvantage of telephone interviews? A) They are more expensive to conduct than mail questionnaires. B) Interviewer bias is introduced. C) Respondents may be unwilling to
Answer personal questions. D) Interviewers may explain or probe more deeply on some questions. E) Potential respondents may refuse to participate. ; Answer: D Diff: 2 Page Ref: 112 Skill: Concept AACSB: Communication
64) The availability of which of the following is most problematic in international marketing research? A) primary data B) research specialists C) secondary data D) intelligence limitations E) consumers willing to
Answer surveys ; Answer: C Diff: 3 Page Ref: 125 Skill: Concept AACSB: Multicultural and Diversity
1) Despite the data glut that marketing managers receive, they frequently complain that they lack ________. A) enough information of the right kind B) reliable information C) timely information D) accurate information E) valid information
Answer: A Diff: 1 Page Ref: 101 Skill: Concept AACSB: Communication
21) Causal research is used to ________. A) test hypotheses about cause-and-effect relationships B) gather preliminary information that will help define problems C) find information at the outset of the research process in an unstructured way D) describe marketing problems or situations E) quantify observations that produce insights unobtainable through other forms of research
Answer: A Diff: 1 Page Ref: 107 Skill: Concept
31) Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide? A) observational research B) focus groups C) personal interviews D) Internet surveys E) questionnaires
Answer: A Diff: 1 Page Ref: 110 Skill: Concept AACSB: Communication
41) Which contact method for marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements? A) personal interviewing B) online interviewing C) phone interviewing D) ethnographic research E) observational research
Answer: A Diff: 1 Page Ref: 113 Skill: Concept AACSB: Communication
16) Faced with determined competitive marketing intelligence efforts by competitors, most companies are now doing which of the following? A) training employees on protecting company information B) promising to not participate in marketing intelligence efforts against competitors C) providing employees with less key company information D) decreasing the number of employees involved in decision-making processes E) introducing codes of ethics
Answer: A Diff: 2 Page Ref: 105 Skill: Concept
35) Fredia Pellerano has just discovered the major advantage of survey research. She reports to her supervisor that the advantage is its ________. A) flexibility B) interactive design C) ease to complete D) understandability E) simplicity
Answer: A Diff: 2 Page Ref: 111 Skill: Concept
48) What is a major drawback of probability sampling? A) It can be time consuming. B) Sampling error cannot be measured. C) The most difficult population from which to obtain information is chosen. D) Everyone has an equal chance of selection. E) Marketers must rely on the judgment of the researcher in respondent selection.
Answer: A Diff: 2 Page Ref: 116 Skill: Concept
51) Which of the following is the best advice about creating research questionnaires? A) Use simple and direct language. B) Questions should not be arranged in a particular order. C) Ask difficult questions in the beginning to "weed out" uninterested respondents. D) Ask personal questions in the middle of the instrument. E) Avoid personal questions that may make some respondents uncomfortable.
Answer: A Diff: 2 Page Ref: 119 Skill: Concept AACSB: Communication
60) What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more? A) an intranet B) an extranet C) the Internet D) marketing research E) marketing intelligence
Answer: A Diff: 2 Page Ref: 122 Skill: Concept AACSB: Use of IT
61) When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using ________. A) informal surveys B) experiments C) observation D) direct marketing E) marketing intelligence
Answer: A Diff: 2 Page Ref: 124 Skill: Concept
65) Because of the scarcity of good secondary data, international researchers often must collect their own primary data. An initial problem with this collection is developing good ________. A) samples B) research firms C) customer relationships with nationals D) relationships with channel members E) analytical models
Answer: A Diff: 2 Page Ref: 125 Skill: Concept
22) Of the following combinations, managers would be most likely to start with ________ research and later follow with ________ research. A) exploratory: causal B) descriptive: causal C) descriptive: exploratory D) causal: descriptive E) causal: exploratory
Answer: A Diff: 3 Page Ref: 107 Skill: Concept
7) Marketers must weigh carefully the costs of additional information against the ________ resulting from it. A) organization B) benefits C) creativity D) ethical issues E) cost
Answer: B Diff: 1 Page Ref: 103 Skill: Concept
10) ________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. A) Marketing data B) Marketing intelligence C) Sales management D) Customer intelligence E) Competitive intelligence
Answer: B Diff: 1 Page Ref: 104 Skill: Concept
17) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) The marketing information system B) Marketing research C) Exploratory research D) Observational research E) Causal research
Answer: B Diff: 1 Page Ref: 106 Skill: Concept
18) What is the first step in the marketing research process? A) developing a marketing information system B) defining the problem and research objectives C) developing the research plan for collecting information D) implementing the research plan E) interpreting data and deciding on type of research
Answer: B Diff: 2 Page Ref: 106 Skill: Concept
23) The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses. A) descriptive B) exploratory C) causal D) corrective E) descriptive and exploratory
Answer: B Diff: 2 Page Ref: 106 Skill: Concept AACSB: Communication
24) In the second step of the marketing research process, research objectives should be translated into specific ________. A) marketing goals B) information needs C) dollar amounts D) research methods E) information sources
Answer: B Diff: 2 Page Ref: 107 Skill: Concept
26) Information collected from online databases on the Internet is an example of ________ data. A) primary B) secondary C) observational D) experimental E) ethnographic
Answer: B Diff: 2 Page Ref: 108 Skill: Concept AACSB: Use of IT
30) For secondary data to be useful to marketers, it must be relevant, current, unbiased, and ________. A) complete B) accurate C) inexpensive D) collected before secondary data E) experimental
Answer: B Diff: 2 Page Ref: 110 Skill: Concept
32) Ethnographic research ________. A) comes from traditional focus groups B) is gathered where people live and work C) provides secondary data D) is most popular in the service sector E) provides data to marketers when observation is impossible
Answer: B Diff: 2 Page Ref: 111 Skill: Concept AACSB: Communication
37) Experimental research is best suited for gathering ________ information. A) exploratory B) causal C) attitudinal D) interactive E) descriptive
Answer: B Diff: 2 Page Ref: 111 Skill: Concept AACSB: Communication
42) Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is small, a researcher would be most concerned about which of the following? A) finding a representative sample B) generalizing from the results C) administering the questions D) orchestrating cooperation among participants E) finding enough secondary data to support the findings
Answer: B Diff: 2 Page Ref: 113 Skill: Concept AACSB: Communication
43) Which of the following is a disadvantage of online focus groups? A) Participants must be in a central location. B) The Internet format can restrict respondents' expressiveness. C) Results take longer to tabulate and analyze. D) The cost of online focus groups is greater than that of most other qualitative research methods. E) The format of focus groups can be varied.
Answer: B Diff: 2 Page Ref: 115 Skill: Concept AACSB: Use of IT
49) What are the two main types of research instruments used to collect primary data? A) surveys and samples B) questionnaires and mechanical devices C) focus groups and online databases D) online panels and experiments E) personal interviews and online focus groups
Answer: B Diff: 2 Page Ref: 118 Skill: Concept
69) According to your text, what are two current major public policy and ethical issues in marketing research? A) child pornography and identifying sampling methods B) intrusions on consumer privacy and misuse of research findings C) misuse of research findings and locating valuable secondary data D) selling of personal information to other firms and online secondary data E) ethnography and the misinterpretation of it
Answer: B Diff: 2 Page Ref: 126 Skill: Concept AACSB: Ethical Reasoning
33) Which of the following is true of ethnographic research? A) It is conducted within traditional focus groups. B) It provides fresher and better insight into customer behavior than traditional approaches do. C) It provides researchers with secondary data. D) It is most popular in the service sector. E) It is a research option when observation is not possible.
Answer: B Diff: 3 Page Ref: 111 Skill: Concept
3) A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information. A) experiment to develop information B) test market the information C) develop the needed information D) critique the needed information E) compare the needed information
Answer: C Diff: 1 Page Ref: 102 Skill: Concept AACSB: Communication
25) Secondary data consists of information ________. A) that already exists somewhere but is outdated B) that does not currently exist in an organized form C) that already exists somewhere but was collected for another purpose D) that is used by competitors E) that the researcher can only obtain through surveys and observation
Answer: C Diff: 1 Page Ref: 108 Skill: Concept AACSB: Communication
50) The most common research instrument used is the ________. A) mechanical device B) live interviewer C) questionnaire D) telephone interviewer E) moderator
Answer: C Diff: 1 Page Ref: 118 Skill: Concept
6) A good MIS balances the information users would ________ against what they really ________ and what is ________. A) need: like: feasible B) like: can afford: needed C) like to have: need: feasible to offer D) need: can afford: useful E) use: have to use: available
Answer: C Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication
8) Four common sources of internal data supplied to internal databases include the accounting department, operations, the sales force, and the ________. A) owners B) stockholders C) marketing department D) competition E) Web
Answer: C Diff: 2 Page Ref: 103 Skill: Concept AACSB: Communication
19) Your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take. A) developing the research plan B) determining a research approach C) defining the problem and research objectives D) selecting a research agency to help E) C and D
Answer: C Diff: 2 Page Ref: 106 Skill: Concept
27) Which form of data below can usually be obtained more quickly and at a lower cost than the others? A) primary B) survey research C) secondary D) experimental research E) observational research
Answer: C Diff: 2 Page Ref: 108 Skill: Concept AACSB: Analytic Skills
28) It is most accurate to say that secondary data are ________. A) collected mostly via surveys B) expensive to obtain C) not always very usable D) never purchased from outside suppliers E) always necessary to support primary data
Answer: C Diff: 2 Page Ref: 108-110 Skill: Concept
54) Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try? A) customer satisfaction measurement B) more sophisticated software C) customer relationship management D) a marketing information system E) decreased marketing intelligence
Answer: C Diff: 2 Page Ref: 121 Skill: Concept AACSB: Use of IT
62) Small organizations can obtain, with minimal effort and cost, most of which type of data available to large businesses? A) experimental B) observational C) secondary D) primary E) ethnographic
Answer: C Diff: 2 Page Ref: 124 Skill: Concept
72) Consumers are most likely to willingly provide research information when researchers provide which of the following? A) coupons B) social network membership C) value for the exchange D) prizes E) rebates
Answer: C Diff: 2 Page Ref: 129
74) Many major companies have created the position of ________ to address concerns about the privacy of customers. A) chief customer loyalty manager B) chief behavioral analyst C) chief privacy officer D) ethics manager E) data warehouse manager
Answer: C Diff: 2 Page Ref: 129 Skill: Concept AACSB: Ethical Reasoning
9) Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources? A) external B) LexisNexis C) DataStar D) internal E) ProQuest
Answer: D Diff: 1 Page Ref: 104 Skill: Concept AACSB: Use of IT
36) Survey research is least likely to be conducted through which of the following? A) the Web B) the mail C) the telephone D) observation E) person-to-person interactions
Answer: D Diff: 1 Page Ref: 111 Skill: Concept AACSB: Communication
63) You have been asked to locate secondary data for your small organization's research needs. Which of the following is NOT a common source for this type of research? A) competitors' Web sites B) the U.S. Small Business Administration C) the U.S. Census Bureau D) online surveys E) the local Chamber of Commerce
Answer: D Diff: 1 Page Ref: 124 Skill: Concept
70) Choose the statement that is NOT a typical consumer concern about intrusion on consumer privacy. A) Sophisticated researchers probe our deepest feelings. B) Marketers use personal information to manipulate our buying. C) Marketers build huge databases full of personal information. D) Marketers make too many products and services available, creating unnecessary consumer wants. E) Protecting personal information is increasingly important.
Answer: D Diff: 1 Page Ref: 126 Skill: Concept AACSB: Ethical Reasoning
73) The best approach for researchers to take to guard consumer privacy includes all of the following EXCEPT which one? A) Ask only for the information needed. B) Use information responsibly to provide value. C) Avoid sharing information without the customer's permission. D) Sell the information only when it is financially worthwhile. E) Fully explain to the respondents how the information will be used.
Answer: D Diff: 1 Page Ref: 129 Skill: Concept AACSB: Ethical Reasoning
4) The real value of a company's marketing research and information system lies in the ________. A) amount of data it generates B) variety of contact methods it uses C) efficiency with which it completes studies D) quality of customer insights it provides E) marketing information system it follows
Answer: D Diff: 2 Page Ref: 102 Skill: Concept AACSB: Communication
11) Which of the following statements regarding marketing intelligence is true? A) Marketing intelligence is privately held information. B) The advantage of using competitive intelligence is negligible. C) All marketing intelligence is free. D) Marketing intelligence is publicly available information. E) Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors' activities.
Answer: D Diff: 2 Page Ref: 104 Skill: Concept
12) Which of the following is NOT considered a source of marketing intelligence? A) suppliers B) resellers C) key customers D) causal research E) activities of competitors
Answer: D Diff: 2 Page Ref: 105 Skill: Concept
13) Which of the following is NOT a potential source for marketing intelligence? A) competitors' garbage B) competitors' products C) competitors' sales data published in annual reports D) primary data E) discussions with purchasing agents
Answer: D Diff: 2 Page Ref: 105 Skill: Concept
15) Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence? A) LexisNexis B) Hoover's C) Dialog D) U.S. Security and Exchange Commission's database E) ProQuest
Answer: D Diff: 2 Page Ref: 105 Skill: Concept AACSB: Use of IT
20) Which of the steps in the marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings? A) developing the research budget B) choosing the research agency C) choosing the research method D) developing the research plan E) comparing and contrasting primary and secondary data
Answer: D Diff: 2 Page Ref: 106 Skill: Concept
29) Your assistant wants to use secondary data exclusively for the current marketing research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them? A) It may not exist. B) It may not be relevant. C) It may not be impartial. D) It is generally more expensive to obtain than primary data. E) It may not be current.
Answer: D Diff: 2 Page Ref: 108-110 Skill: Concept
34) Survey research, though used to obtain many kinds of information in a variety of situations, is the approach best suited for gathering ________ information. A) interpersonal B) causal C) attitudinal D) descriptive E) exploratory
Answer: D Diff: 2 Page Ref: 111 Skill: Concept AACSB: Communication
45) Which of the following has the highest rating for speed of data collection and compilation? A) open-ended questionnaires B) personal interviews C) mail surveys D) online surveys E) ethnographic research
Answer: D Diff: 2 Page Ref: 112 Skill: Concept AACSB: Use of IT
44) Which of the following is NOT an advantage of Web-based research? A) speed B) low costs C) almost instantaneous results D) control over who respondents are E) ease of administration
Answer: D Diff: 2 Page Ref: 116 Skill: Concept AACSB: Use of IT
55) Which of the following is true about customer relationship management (CRM)? A) It relies on information produced through primary research. B) Its aim is to maximize profit margins. C) Its aim is to increase the efficiency of each customer touchpoint. D) Its aim is to maximize customer loyalty. E) Most companies who first implemented CRM have greatly benefited from the results.
Answer: D Diff: 2 Page Ref: 121 Skill: Concept AACSB: Use of IT
58) A successful CRM program can be expected to help a company achieve all of the following EXCEPT ________. A) providing higher levels of customer service B) developing deeper customer relationships C) creating offers tailored to specific customer requirements D) understanding competition better E) understanding how to better build the marketing mix
Answer: D Diff: 2 Page Ref: 122 Skill: Concept
68) Anna Gregory just completed reading a marketing research report about the top 25 countries that purchase American products. What would the report most likely say about international research within these countries? A) It is on the decrease due to high costs. B) The costs are higher than the benefits. C) There is a lack of qualified research personnel. D) Despite the costs of international research, the costs of not doing it are higher. E) Interpretations of American quality are consistent among different countries.
Answer: D Diff: 2 Page Ref: 126 Skill: Concept
75) To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________. A) customer relationship management guidelines B) behavior targeting "Do Not Track" lists C) chief privacy officer job descriptions D) codes of research ethics E) bans against using "cookies"
Answer: D Diff: 2 Page Ref: 129 Skill: Concept AACSB: Ethical Reasoning
47) You generally need to ask three questions when developing a sampling plan. Which of the questions below is one of these three? A) Who should be left out of the sample (sampling exclusion)? B) How should we contact the sample (sampling approach)? C) Why should respondents be selected (sampling justification)? D) How should participants be chosen (sampling procedure)? E) none of the above
Answer: D Diff: 3 Page Ref: 116 Skill: Concept
71) Behavioral targeting, the practice of ________, is being used by more and more companies. A) tracking customers' activities and rewarding customer loyalty B) managing customer relationships C) mining and analyzing data from data warehouses D) tracking consumers' online movements and using this information to target ads to them E) observing and interacting with consumers in their natural environments
Answer: D Diff: 3 Page Ref: 127 Skill: Concept AACSB: Use of IT
2) Which of the following statements is NOT true regarding information collected by marketers? A) Managers lack information of the right kind. B) Most managers do not need more information. C) Most managers need better information. D) Many managers are burdened by data overload. E) Managers have the right information and they have enough of it.
Answer: E Diff: 1 Page Ref: 101 Skill: Concept AACSB: Communication
14) Through which of these sources of information is a competitor least likely to reveal intelligence information? A) annual reports B) trade show exhibits C) Web pages D) press releases E) internal marketing meetings
Answer: E Diff: 1 Page Ref: 105 Skill: Concept AACSB: Communication
66) What do many researchers encounter when conducting market research in foreign countries? A) Some countries have few telephones, limiting access to respondents. B) Some countries have poor mail services. C) Some countries have poor roads that limit personal contacts. D) Some cultures may not value marketing research. E) all of the above
Answer: E Diff: 1 Page Ref: 125 Skill: Concept AACSB: Multicultural and Diversity
5) The marketing information system can serve ________. A) the company's marketing managers B) suppliers C) resellers D) marketing services agencies E) all of the above
Answer: E Diff: 2 Page Ref: 102 Skill: Concept
59) Marketing information is only valuable when it is used to ________. A) simplify management's job B) identify a target market C) please shareholders D) increase efficiencies in the supply chain E) make better marketing decisions
Answer: E Diff: 2 Page Ref: 122 Skill: Concept
53) AMF Research Group must guard against problems during the implementation phase of marketing research for its clients. Which of the following is NOT a problem that should be anticipated during this phase? A) ensuring the accuracy of the collected data B) respondents who give biased
Answers C) interviewers who make mistakes or take shortcuts D) interpreting and reporting the findings E) ensuring the completeness of the collected data ; Answer: D Diff: 3 Page Ref: 120 Skill: Concept
38) ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has all the following advantages EXCEPT which one? A) low cost per respondent B) more honest
Answers may be given C) has an average response rate D) has no interviewer to bias respondents' ; Answers E) can collect large amounts of information ; Answer: C Diff: 3 Page Ref: 112 Skill: Concept AACSB: Communication
