Ch 5 mgmt
The first step in the marketing research process is to locate and define issues or problems. Which of the following best identifies how a problem or issue might be recognized?
A departure from some normal function, such as the failure to attain objectives
Which organizations are most likely to utilize marketing research to aid their decision-making processes?
A wide variety of businesses and nonprofit organizations
According to the text, which source of secondary data is often overlooked by researchers?
Accounting records Accounting records are an excellent source of data but are often overlooked.
Juan Sanchez is the marketing research director for Pepsi and is working with the product development group in creating new flavors of Pepsi products. They are interested in testing three different flavor options and plan to offer the new products in limited markets throughout the United States. The research will provide important insights about consumer purchasing habits and the success of the new products. The research study will also help Pepsi determine whether the offering of new flavors will harm sales of existing products. What type of research would be most appropriate for Pepsi to utilize?
Experimental
The general manager of a local movie cinema is interested in determining the effect of promotions on concession sales. The manager wants to determine the best price to charge for a bucket of popcorn that could be reused by consumers. What type of research is recommended to determine the relationship between price and purchase of the reusable popcorn container?
Experimental
The Limited is considering the use of "bundled pricing" for socks. A pair of socks retails for $4 and the Limited wants to determine the effect on sales of a promotion to utilize a bundling approach. In one group of stores, it will offer three pairs of socks for $9 and in a second group of stores, it will offer two pairs of socks for $6. What type of research would be most appropriate for the Limited to determine which promotional offer is most successful in enhancing sales of socks?
Experimental research
_______ research is typically conducted when marketers need more information about a problem or want to make a tentative hypothesis more specific.
Exploratory
The owner of a fitness facility is considering launching an activity-based daycare for children ages 3 to 6 years old. He has conducted several focus groups with parents of children in the local area to determine their interest in a daycare option that provides a variety of physical activities such as swim lessons, gymnastics, and ball sports, such as basketball or tennis. The focus group sessions are an example of _______ research.
Exploratory Focus group research is a type of exploratory research.
You are the campaign manager for a candidate running for mayor of Hartford, Connecticut. You are running a series of focus group sessions with residents of the city to get a better understanding of their needs and wants. Your focus group sessions are an example of which of the following types of research?
Exploratory research One common method of conducting exploratory research is through a focus group, which brings together multiple people to discuss a certain topic in a group setting.
Bob Hunt is working as a marketing intern for the Hon Company and has been asked to review company sales reports from the last six months and identify any trends regarding color or style that purchasers of office furniture have selected. What type of data will Bob be using for this project?
Internal secondary
Which of the following is false about guidelines for questionnaire introduction that support ethical marketing research?
Keep the name of the research company confidential The interviewer should state the name of the company.
Which step of the marketing research process focuses on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation?
Locating and defining issues or problems
Which of the following is a disadvantage of mail surveys?
Low response rates
Which survey method is the least flexible?
Mail surveys
A _______ system is a framework for the day-to-day management and structuring of information gathered regularly from sources both inside and outside the organization.
Marketing information
To ensure that marketing research is reliable and valid globally, what should marketers do?
Modify data-gathering methods to allow for regional differences
A local restaurant is trying to determine whether it would be beneficial for them to open early and serve breakfast. It hires a marketing research company which proposes that it has individuals who visit various restaurants in the area who currently offer breakfast and record various information, such as number of people in their group, what each individual orders, how long they stay, whether they dine-in or order from the drive-thru, and whether or not they are using a wireless hotspot. The interviewers will not interact with the study participants and will be posing as customers themselves so as not to bias the research. What type of research method is proposed?
Observation
Which survey method enables researchers to obtain a quick response at lower costs compared to traditional mail and telephone surveys?
Online surveys
Which of the following is a major limitation of telephone surveys?
Only a small portion of the population likes to participate in telephone surveys
The _______ is defined as all the elements, units, or individuals of interest to researchers for a specific study.
Population
What type of data are marketing researchers collecting when they are making decisions about sampling techniques?
Primary Primary data are observed and recorded or collected directly from respondents and must be gathered by observing phenomena or surveying people of interest.
What are the two basic types of sampling utilized by marketing researchers?
Probability and nonprobability
Bath and Body Works is conducting research on new products to add to its store. It is interested in examining consumer needs based on different age groups: 18 to 30; 31 to 50; 51 to 65; and 66 or older. It will be working with a marketing research supplier to obtain 30 completed surveys from each age group in order to ensure that each age group has an appropriate number of respondents to the survey. What type of sampling is this?
Quota
Which method of sampling is a two-stage process where researchers first divide the population into groups and secondly, arbitrarily select participants from each group?
Quota
Floral Designs wants to conduct a customer satisfaction study to determine how well its meeting customer needs with floral gifts, wedding flowers, and other special occasion arrangements. It has a list of 1,000 names and will use a computer program to automatically select 500 names from the database to include in the sample. All customers on the list will have an equal chance of being included in the sample and receiving a survey. What type of sampling method is Floral Designs using?
Random
Which step of the marketing research process would include a specification of the research limitations or deficiencies?
Reporting research findings In most cases, it's extremely doubtful that the study can provide everything needed to answer the research question(s). Therefore, the researcher should point out the deficiencies or limitations of the research in the report.
Which of the following is NOT a step in the marketing research process?
Responding to competitor tactics The steps in the research process include: locating and defining issues or problems, designing the research project, collecting data, interpreting research findings, and reporting research findings.
Carson is a marketing research intern for a consumer products company and has been asked to obtain information about consumer needs and perceptions of products that are labeled as "green." Carson must make a presentation about consumer trends and perceptions in one week and has a limited amount of time to spend on the project. What type of data would be most appropriate for Carson to use for the report and presentation?
Secondary
Dick's Sporting Goods is interested in studying the product categories that consumers desire to have in the store. The company's marketing research director plans to select 1,000 customers from its database of 100,000 who have a loyalty card. The marketing research director will first segment the database of 100,000 customers into five regions of the United States based on geography and then use a random sampling method to select 200 customers from each region. What type of sampling method does the marketing research director plan to utilize?
Stratified A form of random sampling that can reduce some of the error that could occur in a simple random sample where the population is divided into groups and a random sample is chosen within each group is known as stratified sampling.
Which of the following has become a significant ethical issue in marketing research with the advance of technology?
The privacy of consumers
Marketing research has shifted its focus toward smaller studies such as test marketing, small-scale surveys, and short-range forecasting in order to learn about changing dynamics in the marketplace.
True However, large, high-value research projects remain necessary for long-term success.
An online survey of business-to-business buyers of office automation equipment asks the following question regarding future purchases, "Is your budget for office automation equipment most likely to (a) increase in the future, (b) stay the same, or (c) decrease?" This is an example of a(n) _______ question.
b.multiple-choice
Ethical issues are a constant risk in gathering and maintaining the quality of information obtained through research activities. One ethical issue researchers should consider is _______.
confidentiality issues in marketing research
The primary focus of a marketing information system (MIS) is _______.
data storage and retrieval
A collection of information arranged for easy access and retrieval is called a(n) _______.
database
Sherwin-Williams has a proprietary computer system that enables the company to maintain a _______ of customers, which contains contact information as well as purchase history, such as the quantity and types of materials purchased.
database
A form of question that gives respondents two options—either "yes" or "no"—is called a _______ question.
dichotomous
A new customer survey asked customers, "Would you rather receive your billing statements in the mail or electronically via email?" This is an example of a(n) _______ question.
dichotomous
A research study is valid when _______.
the research measures what it is supposed to measure
Which of the following best defines the research design phase or step in the marketing research process?
An overall plan for obtaining the information needed to address a research problem or issue. The research design step is the second step in the marketing research process and is defined as an overall plan for obtaining the information needed to address a research problem or issue.
Walmart has developed a reputation for its extensive use of information to aid in management and marketing decisions. Today, Walmart leverages its point-of-sale system in the stores and measures website traffic and information gleaned through the use of "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. The VP of Information Technology says this "mountain of data provides significant insights for its product category leaders and other managers across the Walmart company." What type of information does Walmart utilize?
Big data Big data involves massive data files that can be obtained from both structured and unstructured databases.
John Deere Inc. has launched a research effort to determine the most effective advertising message to gain interest and awareness in its agricultural products among its target market members—the farming community. Its marketing research department has recommended a series of focus group interviews to be fielded across the United States. Which activity is next according to the steps in the marketing research process?
Collect data The problem has been stated and a research design has been determined so the next step is to collect the data.
_______ research is designed to verify insights by utilizing objective procedures to assist marketers in making decisions.
Conclusive
Jersey Mike's is considering adding a new sandwich option to its menu. The company has been conducting a variety of research studies to evaluate consumers' perceptions of several new sandwiches and the director of product development is very excited about the prospects of several new menu items. However, the CEO has asked the director to conduct one last round of market research that will provide greater confidence about the success of the new menu items if they're offered in the restaurants. What type of research should be conducted to provide a high degree of confidence about the new menu items?
Conclusive research Conclusive research is recommended as it is designed to verify insights through objective procedures and to help marketers in making decisions.
The hypothesis being tested determines the general data-gathering approach to use.
Correct. The hypothesis being tested determines the general data-gathering approach to use because this data is being used to prove (or disprove) the research hypothesis.
Which of the following might be an example of a marketing problem or issue that could lead managers to engage in the marketing research process to gain insight into the problem?
Declining sales
A local IGA store is experiencing declining sales in several categories throughout the store—especially fresh produce. The store manager believes this decline in fresh produce store sales is related to the "buy local" phenomenon and consumers' desire to support sustainable agriculture, purchase fresh produce that's in season locally, and organic. Which type of research should the local IGA store utilize to determine how best to respond to the change in store sales?
Descriptive
Managers at Abercrombie & Fitch are interested in determining the characteristics of shoppers who visit their store as well as identify those consumers who spend the most and shop most often in their stores. This information will be quite helpful to Abercrombie & Fitch as it makes design changes to the store, select merchandise, and create advertising messages. Abercrombie & Fitch would like to identify the shoppers based on factors, such as gender, age, marital status, and discretionary income. What type of research would be most appropriate for Abercrombie & Fitch to utilize?
Descriptive Descriptive research is conducted to clarify the characteristics of certain phenomena to solve a particular problem.
Exploratory qualitative research techniques would include all of the following, except _______.
Descriptive studies Exploratory qualitative research techniques include observation, depth interviews, focus groups. Descriptive studies are part of conclusive research.
John Deere Inc. specializes in heavy equipment for the agriculture market and has been working with a wide variety of suppliers to integrate technology such as GPS into the equipment. Today's farmers are increasingly utilizing technology such as GPS and infrared technologies to gather information about soil composition and make decisions about types of quantities of soil additives or pesticides. However, prior to offering these add-ons or features to the equipment, John Deere engages in _______ research by assembling a small group of farmers throughout the United States to discuss its needs and how it might utilize new product enhancements. Managers from John Deere are typically present to view the group discussions and observe the interactions among group members as well as the group's moderator. What type of research technique is this?
Focus group
Which method of data collection offers the ability to observe the interaction among participants?
Focus group
Which of the following is NOT an example of a secondary data source?
Focus groups
When conducting marketing research in another country, researchers should begin the first phase by using focus groups and other survey methods to refine their understanding of customer needs and preferences.
Incorrect. Experts recommend a two-pronged approach to international marketing research. The first phase involves a detailed search for and analysis of secondary data to gain a greater understanding of a particular marketing environment and to pinpoint issues that must be taken into account in gathering primary research data.
Conclusive research is used when marketers need more information about a problem or want to make a tentative hypothesis more specific.
Incorrect. Exploratory research is conducted when marketers need more information about a problem or want to make a tentative hypothesis more specific.
Marketing research is a systematic and orderly gathering of information supplied through the routine reporting system within the organization.
Incorrect. Marketing research is the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunitie
The purpose of marketing analytics is to determine the accuracy of a firm's marketing activities.
Incorrect. The purpose of marketing analytics is to evaluate the company's return on investment (ROI) on their marketing strategies and make adjustments when necessary.
You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following phrase comes up:"Its purpose is to inform an organization about customers' needs and desires, marketing opportunities for products, and changing attitudes and purchase patterns of customers."What should the response be?
What is marketing research?
HQL Marketing Research has developed a proprietary software that companies can use to gather information about its customers based on feedback provided through its website. Even a few sentences of customer feedback can yield a number of insights about the customer, way more than would normally be recognized. HQL Marketing Research has become experts at collecting and analyzing _______.
big data Big data involves massive data files that can be obtained from both structured and unstructured databases. Big data often consists of high-volume data that marketers can use to discover unique insights and make more knowledgeable marketing decisions. HQL has this ability to glean a number of insights from data, making them masters of big data.
In designing research projects, marketing researchers must ensure that research techniques are both reliable and valid. Reliability means that _______.
consistent results can be obtained by those using the same research procedures
Jason has been tracking product returns and noticed that the percentage of returns on products increased from 7% to 15% of sales. He has crafted a succinct and clear statement of the marketing research problem and now should _______.
create a research design
Research involving the manipulation of an independent variable and the observation of a dependent variable is known as _______.
experimental research
Research that provides marketing managers with information regarding evidence of a cause and effect relationship is called _______.
experimental research Experimental research allows marketers to make causal inferences about relationships and can provide strong evidence of cause and effect relationships.
When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in _______.
experimentation Experimental research allows marketers to make causal deductions about relationships. It requires that an independent variable be manipulated and the resulting changes in a dependent variable be measured.
Information Resources Inc. (IRI) tracks retail sales and other information and sells the information to companies on a subscription basis. This is an example of _______ data.
external secondary
Information from The Wall Street Journal is commonly used as _______ by marketing researchers.
external secondary data
Smithfield Foods utilized a _______ research method to learn about consumers' food purchasing habits and in-home meal preparation. It hired Trinity Research to conduct the research by gathering small groups of eight to 12 individuals in one facility and employed a moderator to guide the discussion. Representatives from Smithfield Foods were able to observe the participants' interaction and they noticed that one individual in particular tended to monopolize the discussion. However, they were pleased with the way the moderator was able to limit the individuals' responses and enable everyone to fully participate in the study. What type of research is this?
focus group Focus group research methods is an interview that is often conducted informally, without a structured questionnaire, in small groups of eight to 12 people, to observe interaction when members are exposed to an idea or concept.
Suzy Davis is working with a marketing research consultant and trying to decide whether to use a mail survey or telephone survey for her study regarding frequency of grocery shopping. The marketing researcher has told her that compared to a mail survey, telephone surveys result in _______.
higher response rates but higher costs
When research is conducted, the primary conclusions are typically the reflection of _______ that are either accepted or rejected.
hypotheses The hypotheses that are accepted or rejected typically become a study's chief conclusions.
A _______ is defined as an informed guess or assumption about a certain problem or set of circumstances.
hypothesis
Subway would like to capture a greater proportion of market share from families with children under 12 years old and is interested in making changes to its menu to appeal to children. Subway believes that children would respond favorably to classic foods, such as macaroni and cheese or grilled cheese sandwiches. The statement about Subway's beliefs regarding children's opinions about menu items is an example of a(n) _______.
hypothesis
The real value of marketing research to the organization can best be measured by _______.
improvements in the ability to make decisions
Frito-Lay provides its sales representatives with detailed reports of individual stores in its territory and its weekly sales of Frito-Lay products. These reports enable the sales representatives to forecast sales of different types of snack products for each individual sale. In addition, Frito-Lay is able to determine the quantities of products to manufacture in its various facilities across the country. Frito-Lay's use of sales records is an example of _______.
internal secondary data Sales records are an example of internal secondary data.
Peter, the director of marketing at Holcomb, Inc., calls in Andrea, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a _______ survey.
Investing in _______ involves the following four steps: (1) defining what to measure and which tools to use; (2) collecting data; (3) developing reporting capabilities; and (4) implementing the campaign and analyzing the results.
marketing analytics
Baskin-Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of _______ sampling.
stratified
Allstate Insurance has a smart computer system that enables the calculation of insurance premiums for automobiles within minutes and consumers are able to obtain an accurate quote from the Allstate Insurance website and make a decision as to whether or not they would save money or receive more benefits by being an Allstate customer. The Allstate system requires individuals to enter the make, model, and year of their automobile, whether or not they own or rent their home, their age, gender, and drivers' license number. Based upon this information, the Allstate system can accurately calculate the insurance premium for the potential customer. This is an example of a _______ system.
marketing decision support
Max is the product manager for a new type of lumbar supports used in the production of office chairs. His company sells the lumbar supports to approximately 70 different chair manufacturers. The price for this new product still needs to be finalized. Max has decided to take the data recently collected in a marketing research study and apply it to different pricing scenarios in order to set the best price for his company. He will be utilizing computer software to obtain results from the various scenarios. Max is most likely using a _______.
marketing decision support system A marketing decision support system is customized computer software that aids marketing managers in decision making by helping them anticipate the effects of certain decisions.
Justina Krasnova is product manager for Krispy Kreme and works with the product development team to develop new products. Justina has been engaged in a variety of _______ activities in order to stay abreast of consumer trends, monitor flavor preferences, and determine the potential for success of new products.
marketing research
When researchers utilize _______ sampling, they have no way to determine the likelihood that a specific element of the study population has been selected.
nonprobability
Recently, marketing research companies such as Focus Global have been offering _______ focus groups which are more convenient for participants and enable a company to gather data from large and geographically diverse groups in a less intensive manner than traditional focus group interviews.
online
The BASF Company sent its chemical customers an invitation to an online survey via email. The final question of the survey asked, "Please provide one suggestion to help us better serve your needs." This is an example of a(n) _______ question.
open-ended
Focus Research Inc., a marketing research services supplier, counsels its clients that survey research is more difficult today because _______.
people are less willing to participate
One benefit of utilizing the _______ survey method is that participants can incorporate audiovisual aids, such as pictures, diagrams, or prerecorded advertising copy.
personal interview
Caterpillar recently launched a Class 8, commercial truck that is marketed to trucking firms or other entities that typically purchase a "day cab" such as garbage trucks, road construction vehicles used to haul gravel, or mining trucks hauling coal. The individuals who purchase or use a "day cab" vehicle is known as the study's _______.
population
Data that are observed and recorded or collected directly from respondents is known as _______.
primary
Many social media applications such as Facebook, Twitter, Pinterest, and Instagram request a user's permission to access his or her contacts as well as the user's current location. These companies often utilize this information to gain additional information about the user and design products and services to best meet his or her needs. Some consumers are reluctant to share this information due to concerns about their _______, which is a major ethical issue for marketing researchers or others who are involved in collecting and analyzing consumer information.
privacy
A method of sampling where every element in the population has a known, nonzero chance of being selected for a study is called _______.
probability
Exploratory research is usually associated with _______ research techniques. The data is typically shown in _______.
qualitative; interpretations and expressive descriptions The focus of qualitative research is not metrics and complex data analysis but rather stories, visual portrayals, interpretations, and expressive descriptions. Exploratory research does not usually provide quantitative data that assigns numeric values for statistical analysis.
Stephanie Riggings works for Maui Jim, a manufacturer of sunglasses sold through specialty optic boutiques, directly to consumers via the company website and shopping mall kiosks, such as the Sunglass Hut. Stephanie is interested in determining consumer satisfaction with the company's sunglasses and wishes to gather data from people who utilize the sunglasses in different sports: golf, tennis, and boating/swimming. Stephanie has hired a marketing research consultant to assist her. The consultant recommends that Stephanie utilize her company database to segment the recent purchasers into three categories according to the sport (golf, tennis, and boating/swimming). Next, the marketing researcher would contract with a telephone survey provider to seek customer participation in a telephone survey. Surveys would be attempted with each group of consumers until 100 completed surveys from each group had been obtained. This is an example of the _______ sampling method.
quota
The _______ sampling method is often used in exploratory studies when hypotheses are being developed.
quota Quota sampling is a nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group. It is commonly used in exploratory studies.
The _______ sampling method ensures all units in a population have an equal chance of appearing in the sample.
random
Shasta Soda is developing a new beverage product and has completed taste tests in four different markets across the United States to identify consumers' perceptions of the new product as well as their willingness to buy. The results provide similar feedback in all test markets that consumers enjoy the taste, believe it to be refreshing, and are highly likely to purchase the product. Since the researchers obtained consistent results across these three markets with regard to these measurement items, the research has _______.
reliability
Those who utilize marketing research typically engage in the process to obtain information _______.
that aids managers in making decisions
The Limited tested a promotional offer of socks in six stores across the United States. In two stores, it offered two pairs of socks for $6 representing a savings of $2 if purchased separately. In two different stores, it offered three pairs of socks for $9 which represented a savings of $3 if purchased separately. The results of the study indicated that store sales of socks were higher in the two stores that offered three pairs of socks for $9 compared to the two stores offering two pairs of socks for $6. Therefore, the Limited decided to run the promotion of three socks for $9 across its entire chain of stores. However, the actual sales of socks did not increase in the same proportion as the test stores' sales. The Limited doesn't understand why the results in the roll-out across the country of the promotion do not match the results obtained by the research. This example illustrates that the research was _______ but not _______.
reliable; valid
Marketing researchers at Nike decided to test several new designs and colors of shoes with its young, urban target market. The shoe colors used in the experiment were bright yellow, light blue, bright green, red, and black. Nike repeated the particular experiment several times in different large cities and discovered that the results produced each time were nearly identical. The participants preferred the green, red, and black. However, when the shoes were produced, the sales were higher for the plain white version, the black, and the red. The sales of the bright green were very low. Nike couldn't understand why the test results were consistent, but the results didn't match with the actual sales. This phenomenon would indicate that the test results were _______ but not _______.
reliable; valid A research technique has reliability if it produces almost identical results in repeated trials. It has validity if the research method measures what it is supposed to measure. Clearly, the tests conducted by Nike were reliable because the results were consistent. However, this didn't translate to increased sales, which suggests that the tests didn't measure what was intended.
Descriptive research is defined as _______.
research conducted to clarify the characteristics of certain phenomena to solve a particular problem
A limited number of units chosen to represent the characteristics of a total population is called a(n) _______.
sample
A marketing research analyst with Cox Communications is accessing the U.S. Census Bureau website to obtain statistics about the population in various metropolitan areas in the Cox Communications market. The U.S. Census Bureau is an example of _______ data.
secondary
A form of random sampling that can reduce some of the error that could occur in a simple random sample where the population is divided into groups and a random sample is chosen within each group is known as _______ sampling.
stratified
The managers of a local grocery store are trying to understand consumers' purchasing habits with regard to fresh produce. They conducted a study and determined that consumers desired fresh, local, and organic produce because they valued improved taste and wanted to consume products that were free of harmful pesticides, which might cause cancer. Based on the results of the research, the store began offering a greater selection of organic and locally sourced produce; however, sales of the organic produce did not match the store managers' expectations. Therefore, it's likely the research has a problem with _______.
validity Validity is a condition that exists when a research method measures what it is supposed to measure. The study of consumer interest in purchasing organic does not seem related to the actual sales of buying organic produce—therefore, it lacks validity.