Marketing- Exam 2

Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if

the results will be used in making management decisions.

During the research design step of the marketing research process, researchers identify the type of data needed and

the type of research necessary to collect the data.

Joe is reviewing secondary data his company collected about seasonal variation in consumer spending because he is thinking about developing a new product line. The advantages of using these data are that

they can be quickly accessed at a relatively low cost.

A disadvantage to using secondary data is that it might not be precisely relevant to the information needed.

true

A major advantage of primary data collection is that it can be tailored to fit the pertinent research questions.

true

Before conducting market research, the first question to ask is, "What are we trying to learn?"

true

Companies are legally required to disclose their privacy practices to customers on an annual basis.

true

Donald is analyzing and interpreting data. In the process, he is converting data into information.

true

Fingerprints, iris scans, and facial characteristics are examples of biometric data.

true

Using wireless EEG scanners to measure involuntary brain waves that occur when a consumer views a product is called neuromarketing.

true

When companies store information on customers' purchase histories in large computer files, this is known as data warehousing.

true

In the marketing research process, data collection happens after research design.

true; research design ensures that data collection is conducted in a way to best suit research needs and objectives

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences.

unable to articulate their experiences

Political consultants have been using market research for decades to help their candidates understand

who makes up the voting public and how to reach them

Omar is responsible for marketing and marketing research for a mid-sized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind?

"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk."

A typical focus group has ________ members.

8-12

In what country have regulators demanded that Facebook stop collecting biometric data on its users?

Germany

Assuming that a market research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is:

Is top management committed to the study?

Which of the following is true about quantitative research?

It confirms insights and provides a basis for taking a course of action.

One of the benefits of marketing research is it reduces the uncertainty under which managers make decisions

True

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be

U.S. census data.

The first question a marketing researcher should ask when considering a research study is

Will the research be useful?

panel

a group of consumers who provide information over a period of time

anything that is of value to a consumer and can be offered through a voluntary exchange.

a product

In a focus group, researchers usually videotape the session to

assess both verbal and nonverbal responses.

When conducting a survey about choosing vacation destinations, Hillary will need to __________ to get reluctant respondents to provide honest information.

assure consumers that their individual responses will be kept confidential

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to

begin to collect data.

refers to overuse of the brand for brand extensions, such that brand equity becomes weaker

brand dilution

the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

brand equity

the use of the same brand name in a different product line

brand extension

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to

build separate marketing programs for different demographic segments.

The number of customers who discontinue their use of a service divided by the average number of total participants is called

churn (turnover rate, think "churn"over)

Marketing research includes

collecting, recording, interpreting, and analyzing data

________ can be defined as raw numbers or other factual information that, on its own, has limited value.

data

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in

data mining

uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables.

data mining

Market research begins with

defining objectives and research needs.

The value of a brand is often calculated by assessing the

earning potential of the brand over the next 12 months.

Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Business people tend to be more cautious before embarking on a marketing research study, recognizing that research is often

expensive and time consuming.

manipulates a variable to determine cause and effect

experimental

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand

facilitates purchasing

Marketing research should be used only to produce favorable recommendations for senior management to consider.

false

a decrease in a company's product depth will always hurt its marketing efforts (T/F)

false

The marketing research process follows five steps, and to be effective, they must be followed in order without omitting any steps.

false (can be followed in any order)

Panel data are always secondary data.

false; either secondary (record of purchases) or primary (response to a survey)

A familiar brand name always helps the sales of a product. (t/f)

false; even if the brand name is familiar, it won't help the sales of individual products unless the consumer know what products are available under that name

Data that have been collected prior to the start of the current research project are considered primary data.

false; secondary

When survey data are analyzed in depth to determine consumer attitudes toward a product, this is an example of sentiment mining.

false; sentiment mining analyzes consumer comments on social media to gain insight

Warren is conducting a marketing research project. He is not sure what questions to ask or what types of consumers he should talk to. Warren is ready to conduct quantitative research. (T/F)

false; should start with qualitative research

The terms "external secondary data" and "syndicated data" mean the same thing.

false; syndicated is a form of external secondary, but not the only form

Quentin is in a group of eight to twelve people and is being asked questions by a trained moderator. Quentin is part of an in-depth interview group. (T/F)

false; this is a focus group

Briena is looking at the results of a syndicated study conducted two years ago. Briena is looking at primary data.

false; this is secondary data

When social media are used to gather research on customer attitudes and behaviors, protecting consumers' privacy is up to the company conducting the research.

false; up to the consumer

good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

focus groups

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to

help her understand the needs of her customers

Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to

how the secondary data were collected.

Victor's custom auctioneering service provides online auction selling assistance. Victor plans to conduct marketing research to determine which auction site is best for his customers. His next step is to

identify the type of data he needs to have.

good way to collect detailed opinions from a small number of individuals

in-depth interview

Using __________, researchers ask questions, listen to and record responses, and ask additional questions based on initial responses.

in-depth interviews (qualitative)

One important purpose of a brand is to

increase consumer recognition/awareness of product offerings (while differentiating product offerings from competitors)

based on a company's day-to-day operations.

internal secondary data

A major advantage of primary data collection is that

it can be tailored to meet the specific research needs.

The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, "What percentage of people in Kansas live in communities of fewer than 10,000 people?" The problem with this research objective is that

it is already known and available from the U.S. Bureau of the Census.

Marketers with successful brands sometimes hesitate to expand their brands because

it is costly to maintain many product lines, and it might weaken the brand's meaning.

The manager of a company selling baby products asks you to conduct research into the question, "Is life expectancy getting longer in Kuwait?" The problem with this research objective is that

it is irrelevant to the baby products company.

A major disadvantage of primary data collection is

it takes more time to collect than secondary data and is more costly.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.

licensed

The marketing research process follows five steps, and researchers

may not always go through them in the exact sequence if the situation changes or new information is discovered.

eliminating a product line decreases the product _____ _______

mix breadth

a company's product ______ consists of its various product _______.

mix; lines

Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of market research primarily to

monitor his competition

Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her customers visit when they come to her store. To collect information for this objective, Bianca will most likely use

observation

Qualtrics, Surveymonkey, and Zoomerang are examples of

online survey software

Data collection begins

only after completing the research design process.

Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed using data mining techniques to uncover

patterns of consumers' purchasing behavior

One of the disadvantages of secondary research is ______, whereas one of the disadvantages of primary research is often ________.

potential bias; cost

From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about

preserving their right to privacy.

retailer or store brand, developed by retailers to be sold only within their own stores.

private-label brand

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

__________ is the number of items within a product line.

product line depth

the number of products within a product line

product line depth

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

product lines

The complete set of all products offered by a firm' is called its

product mix

number of product lines offered by a firm

product mix breadth

Primary point of marketing research-

provide information on which to base decision marketing

When the market research problem is not clearly defined, a researcher will likely engage in __________ research.

qualitative

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct

quantitative data

After defining objectives and research needs, the next step in the marketing research process involves

research design.

A marketing research project often begins with a review of the relevant __________ data.

secondary

Company sales invoices, census data, and trade association statistics are examples of

secondary data.

used to attract consumer's attention on the product

secondary package

Some companies take sentiment mining a step further by joining the online conversation with customers, a process called

social engagement.

customers show a strong preference, such that they will spend time and effort searching for the best suppliers

specialty product

Quantitative research offers a means to confirm ideas through

surveys or experiments.

It is almost impossible to watch a sporting event on television without seeing Nike's swoosh check mark, which is Nike's

symbol

If a marketing researcher has to collect data under severe time constraints, which of the following types of data sources would probably be available soonest?

syndicated data

Jalel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends, including sales by different musical styles, online downloads, and concert attendance. Jalel will most likely use __________ to gather this type of data.

syndicated data

Commercial research firms like ACNielsen and SymphonyIRI Group are sources of

syndicated data (secondary data that can be purchased from firms that collect it)

Benefit-cost analysis in market research weighs

the benefits of answering questions against the cost of the research.

Sentiment mining

the collection and analysis of social media posts to gain insights into consumer thoughts and opinions