Marketing Metrics
A company had $5000 in revenue from selling 100 units of Product X. The price of Product X was: $50 $5 $500
$50
Amy recently opened a "goat yoga" business in Los Angeles. In an interview with a local reporter, Amy said, "I opened this business 2 months ago, but in 6 months, I want to be not only the largest goat yoga studio in California in terms of number of customers, but also the biggest yoga studio of any type." Based on the SMART approach to setting goals, Amy's goal seems to suffer from not being: a) Attainable b) Specific c) Measureable d) Time-based
A
Consider the following statement from ebay: "To be the world's favorite destination for discovering great value and unique selection." This best represents a(n): a) Mission statement b) Vision statement c) Values statement d) Objective e) Strategy
A
When we think that we know more than we actually know, this is referred to as: a) The overconfidence effect b) The implicit bias effect c) The "know-it-all" effect d) The explicit bias effect
A
Which of the following is most accurate? A) although metrics are widely used, if they are used incorrectly, they can do more harm than good B) because metrics are numbers, they always lead to good decisions
A
Consider the following statement from ebay: "Commerce should be enabled by people, powered by technology, and open to everyone." This best represents a(n): a) Mission statement b) Vision statement c) Values statement d) objective e) strategy
B
The Greenville Children's Museum had 4800 visitors last month. For benchmarking purposes, what would be the best comparison point? a) Number of visitors from the same month last year b) Number of visitors last month at the Asheville Children's Museum c) Number of visitors two months ago d) Projected number of visitors next month
B
Betty's Bakery and Cafe wants to "Increase customer satisfaction by 20% in the next six months." This best represents which of the following? Betty's objective Betty's vision Betty's strategy
Betty's objective
Consider the following statement that could come from ebay (it didn't): "We strive every day to be responsive to our customers' needs, provide easy-to-use technology, behave in an ethical, fair manner, and operate in a sustainable way." This best represents a(n): a) Mission statement b) Vision statement c) Values statement d) Objective e) Strategy
C
Who said,"When you can measure what you are speaking about and express it in numbers you know something about it; but when you cannot express it in numbers your knowledge is of a meager and unsatisfactory kind." a) Euclid b) Albert Einstein c) Lord Kelvin d) Bill Gates
C
Consider the following statement that could come from ebay (it didn't): "Over the next year, we will grow our user base in Australia from 1.2 million to 2.4 million." This best represents a(n): a) Mission statement b) Vision statement c) Values statement d) Objective e) Strategy
D
Consider the following statement that could come from ebay (it didn't): "Over the next year, we will grow our user base in Australia with targeted television and online advertising." This best represents a(n): a) Mission statement b) Vision statement c) Values statement d) Objective e) Strategy
E
To be useful, metrics require comparison points. Which of the following is NOT a valid comparison point for a metric? a) Various marketing options b) Past performance c) Competitor performance d) A forecast or predicted value e) All of these could be valid comparison points
E
A company has a goal of attaining a 10% market share in China within two years. However, the company discovers that there's no system in place to track sales of all products of this type, so there's no way of knowing its market share. Based on the SMART approach to setting goals, this goal suffers from the problem of not being time-based. True/False
False
A company sold 1200 units in April and 1500 units in May. This represents a 20% increase in sales from April to May. True/False
False
A company sold 40,000 units last month, while its main competitor sold 6,000 units. Based on this information, the company sets a sales goal of 50,000 for next month based on the average of the company's sales and its competitor's sales. This is not a valid way to set a goal because you should never combine internal and external performance. True/False
False
A company that manufactures computers found that customers who called about technical problems spent, on average, 20 minutes talking to tech support. The company decided to outsource their tech support, and they found that the average time spent talking to tech support increased by 50%. They weren't happy with this result, so the company decided to bring tech support back in-house. After doing this, the amount of time customers spent talking to tech support went down by 50%. This means that customers were again spending 20 minutes, on average, talking to tech support. True/False
False
A forecast may include adjustments for the weather, but it may never include adjustments for the general economy. True/False
False
A long-term plan for using an organization's resources is a mission. True/False
False
A waiter asks a customer, "How did you like your meal?" The customer replies,"It was very good." The customer's comment represents a metric. True/False
False
Effective metrics require buy-in from senior management, but not employees. True/False
False
Effective metrics should only measure results, not the processes that lead to these results. True/False
False
Goals are always beneficial to companies. True/False
False
Goals are valuable because they never lead to unintended consequences. True/False
False
Goals never encourage unethical behavior. True/False
False
Goals set by the organization are likely to create intrinsic motivation for employees. True/False
False
If celebrities have influence, this should lead to more product endorsements. The branding company measured the number of products endorsements each celebrity has. The company found that the number of endorsements was not related to the number of magazine covers the celebrity appeared on. This suggests that using the number of magazine covers to measure celebrity influence has low content validity. True/False
False
In a recent column about fuel cell cars, the author stated: "In January, 500 fuel cell vehicles were sold in the US. In February, this number increased to 750. That's a 150% increase." Is this statement true or false? True/False
False
In a recent column about the US economy, the author stated: "In January, the US gross domestic product (GDP) was $4 trillion. In February, the GDP dropped to $2 trillion. That's a 100% decrease." Is this statement true or false? True/False
False
In creating a "customer attractiveness" score, a company measures how many times a customer has purchased from the company in the past and how much money the customer has spent on the company's products. However, the company can't simply add these measures together. Instead, for each measure, they decide to assign a value of -1 if the measure is below the average for all customers, a value of 0 if the measure is equal to the average for all customers, and 1 if the measure is above the average for all customers. The company then adds these two values together to create the customer attractiveness measure. This is an example of the min-max normalization approach. True/False
False
It is not important for a goal to align with an organization's mission as long as the goal is clear and easy to understand. True/False
False
Marketers like to use influential celebrities to promote their products. A branding company once measured "celebrity influence" by counting the number of magazine covers a celebrity appeared on during the past six months. After a few years, they realized that reality show celebrities were able to manipulate the system. They appeared on many magazine covers, but they had no real influence over people. The fact that the number of magazine covers does not reflect the influence of reality show celebrities suggest that the measure has low discriminant value. True/False
False
Metrics are unique to the area of marketing. True/False
False
Metrics are useful for understanding past performance but not for making decisions about the future. True/False
False
Metrics can help companies make better decisions about the future, but not assess past performance. True/False
False
Net profits must be greater than or equal to gross profits. True/False
False
The "Adjusted Complication Rate" measure of surgeons was widely embraced by all in the medical community as a way to improve medical care. True/False
False
The definition of marketing presented by the American Marketing Association indicates that the primary goal of an organization should be to make money. True/False
False
To compute measures of efficiency, you should always use gross profits. True/False
False
To determine which of your friends' posts show up on your FB page, FB tracks the number of times you have liked posts from your various friends in the past and also how old the post is. FB combines these measures into a score called an "edge." However, before doing so, FB adjusts these measures by subtracting the mean (or average) value for each measure and dividing by its standard deviation. This represents the "min-max" approach to normalizing data true/false
False
Tracking the number of magazine covers a celebrity appears on over a six month period is not easy because there are a large number of magazines to track. So, the branding company had two different people go around to stores that sell magazines to count celebrity appearances on magazine covers. Having two people count magazine cover appearances is done to assess test-retest reliability. True/False
False
When benchmarking, companies always have easy access to competitor's performance data. True/False
False
The following stated on Motel 11's web site: "Motel 11 wants to enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure experiences." This best represents which of the following: Motel 11's metrics Motel 11's mission Motel 11's objectives
Motel 11's mission
A company had $10,000 in profit from selling 200 units of Product X. The price of Product X was: $5 $50 $500 The price can't be determined
The price can't be determined
A benchmark can be a goal True/False
True
A company lowers the price of Product X by 5%, and revenue for Product X goes up by 5%. This could occur True/False
True
A company raises the price of Product X by 5% and revenue for Product X does not change. This could occur True/False
True
A company's market share increased from 20% to 30%. This is a 50% increase in market share. True/False
True
A company's profit-to-revenue ratio is 150%. This is good, as it indicates the company is more efficient than the comparison. True/False
True
A company's profit-to-revenue ratio was determined to be 125% when compared to its biggest competitor, but 78% when compared to last year. This is possible. True/False
True
A company's stock price dropped from $80 to $20 in a matter of hours. This represents a 75% decrease. True/False
True
A forecast can be a goal True/False
True
College and professional quarterbacks are graded with something called the quarterback rating (QBR). It's a fairly complicated formula that grades quarterbacks based on all of the plays in a game. One aspect of the rating is that plays that occur during "trash time" (when the game is already decided) count less than plays that occur at other times of the game. This indicates that the QBR is a weighted index. True/False
True
Dividing sales by number of employees to create a measure of "sales per employee" is one way to standardize sales performance across stores. True/False
True
Goals can encourage employees to focus too narrowly True/False
True
In a recent column about the US economy, the author stated: "Three percent growth is not 1 percent better than 2 percent growth, it is 50 percent better." Is this statement true or false? True/False
True
In today's marketing environment, you'll be competing not only with other marketing majors for jobs, but also with statisticians, computer scientists, and engineers. True/False
True
It is known that as celebrities age, they become less influential in pop culture. The branding company referenced in previous question also measured the celebrities' ages. They found that age was not related to the number of magazine covers that celebrities appeared on. This suggests that using the number of magazine covers to measure celebrity influence has low convergent validity True/False
True
Specific goals established by an organization are called objectives. True/False
True
The branding company also measured the number of tv talk shows the celebrities appeared on. They compared the number of magazine covers to talk show appearances. Measuring both talk show appearances and magazine cover appears is done to assess parallel-forms reliability. True/False
True
To combine the measures, FB computes the "edge" as .7x (number of likes) + .3x (age of post). this represents a weighted index True/False
True
Tri-County Plumbing stated, "Last quarter, we had 24 new customers. This quarter, we had 29 new customers." This best represents which of the following? a metric a vision the company's values
a metric
The Big Red Taxi Company states,"We make transportation as reliable as running water, everywhere, for everyone." This best represents which of the following? an objective a mission the company's values
a mission
Smitty's Gym states that it will "Implement a new advertising campaign that involves television, online, and local print media." This best represents which of the following? A strategy A mission An objective
a strategy
The retailer only wants to measure review helpfulness for people who have purchased from the web site in the past. The retailer feels like the other people aren't a good indicator of helpfulness, as they don't have experience with the company's products. However, for people who give a review a thumbs-up or thumbs-down, the retailer can't tell who has or has not purchased from the website in the past. This calls into questions the measures: discriminant validity content validity predictive validity concurrent validity
content validity
The retailer also allows shoppers to share reviews on social media. The retailer can track the number of times a given review has been shared. The retailer checks to see if there is a relationship between the measure of helpfulness and number of times the review was shared on social media. In doing this, the retailer is assessing content validity convergent validity face validity discriminant validity
convergent validity
The retailer checks to see if there is a relationship between the price of the product being reviewed and the measure of helpfulness. The retailer doesn't expect price to be related to the measure of helpfulness. In doing this, the retailer is assessing: convergent validity content validity predictive validity discriminant validity
discriminant validity
A department store commissions a study to determine customer satisfaction. In a survey, customers are asked "Select one of the two following categories to indicate how you feel about the store.___ I hate the store so much, I want it to burn to the ground__ I dislike the store a little or like it a little or like it a lot."Everyone surveyed selects the second category. Based on this information, this measure lacks convergent validity. True/False
false
A local grocery store wants to know where people direct their attention when they look at products on a shelf in the store. So they purchase eye tracking devices and recruit people to participate in a study. Participants wear the devices like glasses and walk around the store shopping for products. Using the eye tracking devices in this way would be a type of indirect measure. True/False
false
A manager says, "I've done the analysis. Our measure of loyalty tells us nothing about whether a customer will buy from us in the future. It's useless!" The manager is complaining about the measure's discriminant validity. True/False
false
A scale is used for measuring properties such as height and weight, but not for measuring properties such as happiness and loyalty. True/False
false
Asking people to indicate in which state they reside in a survey would have an ordinal level of measurement. True/False
false
Asking people to indicate their current level of happiness on the scale -3 -2 -1 0 1 2 3 would have a ratio level of measurement because the scale has a 0 point. True/False
false
Construct validity can be directly measured. True/False
false
Properties such as weight and distance can be measured, but properties such as mood and emotion cannot be measured. True/False
false
Random error affects measures of central tendency. True/False
false
Someone says, "You measured people's weight by asking them if they are Republicans or Democrats?That doesn't make sense." This person is commenting on the measure's predictive validity. True/False
false
The Director of Social Media at Chick-Fil-A scrapes the internet for all the online comments people made about Chick-Fil-A in the past 30 days. She then analyzed the comments to identify common themes in these comments. The director's efforts refer to operationalization analysis. True/False
false
Two years ago, a company sold 400 units of a product. The company president recently stated, "Last year was terrible for our sales. Compared to two years ago, our sales were down 200%." this is possible true/false
false
To make sure the measure of review helpfulness is accurate, the retailer employs two people to record the number of thumbs-up and thumbs-down for each review. These values are entered into a data file and checked to make sure both people's numbers match. In doing this, the retailer is checking: inter-rater reliability internal consistency reliability test-retest reliability parallel forms reliability
inter-rater reliability
"How happy are you today? Very Unhappy 1 2 3 4 5 6 7 Very happy" ratio ordinal interval nominal
interval
"How happy are you today? Very unhappy -3 -2 -1 0 1 2 3 very happy" ratio nominal ordinal interval
interval
"In what month were you born? 1=Jan 2=Feb...12=Dec nominal ratio interval ordinal
nominal
"Rank the following car brands from the most (1) to least (5) likely that you would buy. ___ Ford __ Chevrolet __GM ___Honda ___Toyota" ordinal nominal interval ratio
ordinal
"what is your age? ___Less than 18 ___18-34 ____35-54 ____older than 54" ratio interval ordinal nominal
ordinal
The retailer recruits a group of shoppers to evaluate the helpfulness of each review using the following scale, "I found this review to be..very unhelpful 1 2 3 4 5 6 7 very helpful." The retailer then checks to see if this measure of helpfulness correlates with the original measure of helpfulness described in the first question. In doing this, the retailer is assessing: inter-rater reliability test-retest reliability parallel forms reliability internal consistency reliability
parallel forms reliability
The retailer allows shoppers to click on the name of the reviewer written by that person. The retailer relates the measure of helpfulness to the number of times people click on the reviewer's name. In doing this, the retailer is assessing: content validity predictive validity face validity discriminant validity
predictive validity
What level of measurement does each of the following measures have? "How many pairs of shoes to do you own? ________ ratio ordinal interval nominal
ratio
The retailer also asks each person referenced in the previous question to record the number of thumbs-up and thumbs-down for reach review twice, five minutes apart. The retailer doesn't expect the number of thumbs-up or thumbs down to change in the five minutes span, so each person should record the same number of votes both times. In doing this, the retailer is assessing: test-retest reliability inter-rater reliability parallel forms reliability internal consistency reliability
test-retest reliability
Best Burger states, "We encourage our employees to be positive and encouraging, do the right thing, and have fun." This best represents which of the following? a metric the company's values an objective
the company's values
A company buys two different software programs to track the number of visitors to its web site. Both programs use completely different ways of tracking web site visitors. The company can use these two programs to assess inter-rater reliability. True/False
true
A company defines customer loyalty as "the likelihood of a customer spending more than $200 on our products in the next 6 months.""In the next 6 months" is part of the domain of this construct. True/False
true
A company defines customer loyalty as "the likelihood of a customer spending more than $200 on our products in the next 6 months.""More than $200" is part of the domain of this construct. True/False
true
A measure can be reliable but not valid. True/False
true
An unobservable property is referred to as a latent construct. True/False
true
Asking people to indicate their age by selecting a category (18-25, 26-45, 46-65, older than 65) would have an ordinal level of measurement. True/False
true
Latent constructs can have multiple dimensions. True/False
true
Measures and data that already exist and can be used to understand the situation at hand are referred to as secondary data. True/False
true
Someone wanting to measure "brand strength" may try to determine the relationships between brand strength, brand equity, and brand awareness. In doing so, the person is considering a nomological network. True/False
true
When an organization establishes multiple goals, it's possible for the goals to work against (or contradict) each other. True/False
true
