Chapter 13

14. The output from statistical procedures in all software programs can be envisioned as: A) "Green light" devices. B) "Red light" devices. C) "Yellow light" devices. D) "Purple light" devices.

A) "Green light" devices.

7. Fundamental differences are based on all of the following EXCEPT: A) Implied significance. B) Statistical significance. C) Meaningfulness. D) Stability assessments.

A) Implied significance.

42. The reporting of findings has ________ for the marketing researcher, as he or she cannot choose to report only "good news" to the client. A) a significant ethical burden B) a significant revenue burden C) significant professional implications D) significant career implications

A) a significant ethical burden

30. ANOVA is a "________" procedure that signals when at least one pair of means is significantly different. A) red light B) green light C) yellow light D) purple light

B) green light

2. A(n) ________ is one that a marketing manager can potentially use as a basis for marketing decisions. A) marginal difference B) meaningful difference C) suspected difference D) unconfirmed difference

B) meaningful difference

3. The notion of ________ underpins marketing research. A) meaningful difference B) meaningful significance C) statistical significance D) market differences

C) statistical significance

45. When using a paired samples test for the difference between two means, ________; otherwise, the test would be analyzing differences. A) the means must be measured independently B) the variables should not be measured on the same scale C) the variables must be measured on the same scale D) the non-variables must be measured on the same scale

C) the variables must be measured on the same scale

12. When the sample size is 30 or greater it requires the use of a ________. A) p test B) n test C) z test D) t test

C) z test

22. When a researcher wants to perform the test of significance of differences between two percentages, each representing a separate group (sample), what is the FIRST required step? A) Subtracts the two percentages B) Adds the two medians of the percentages C) Divides each of the two percentages D) A comparison of the two percentages

D) A comparison of the two percentages

6. ________ means that a marketer can focus various marketing strategies and tactics, such as product design or advertising, on the market segments to accentuate the differences between the segments. A) A measurable difference B) A statistically significant difference C) A meaningful difference D) An actionable difference

D) An actionable difference

28. When a researcher wants to compare the means of three, four, five, or more different groups, what type of analysis should be used to accomplish such multiple comparisons? A) Multiple regression B) Difference analysis C) Comparison analysis D) Analysis of variances

D) Analysis of variances

13. Most computer statistical programs report only the t value because it is: A) Greater than the z value with large samples. B) Smaller than the z value with small samples. C) Less than the z value with large samples. D) Identical to the z value with large samples.

D) Identical to the z value with large samples.

9. ________ requires that standard or innovative market segmentation bases are used, and that these bases uniquely identify the various groups so they can be analyzed and put in the marketer's targeting mechanisms. A) Market targeting B) Market research C) Market planning D) Market segmentation

D) Market segmentation

17. A scale variable requires comparing which of the following? A) Medians B) Percentages C) Modes D) Means

D) Means

34. Options available to determine where the pair(s) of statistically significant differences between the means exist(s) are called? A) Ad hoc tests B) Hypotheses tests C) Post hypothesis tests D) Post hoc tests

D) Post hoc tests

46. Marketing researchers usually construct a ________ that summarizes the significant differences in an efficient manner when reporting group differences. A) comparison of means tables B) comparison of significant findings C) comparison table D) group comparison table

D) group comparison table

62. Statisticians have been able to show that the normal bell curve property also occurs when the sample size is 30 observations or fewer.

FALSE

64. With SPSS, the analyses of differences are referred to as Z tests.

FALSE

66. The t test is defined as the statistical inference test to be used with large samples sizes (n ≥ 30).

FALSE

69. Statistical tests are used when a researcher wants to compare the medians of two different groups or samples.

FALSE

72. With a differences test, the null hypothesis states there are significant differences between the percentages (or means) being compared.

FALSE

76. If the null hypothesis is true, when you subtract one group mean from the other, the result should be zero or a negative number.

FALSE

77. It is a simple matter to apply formulas to percentages to determine the significance of their differences, for all that is needed is the sample size of each group.

FALSE

86. Duncan's multiple range test provides output that is mostly a "picture" of what means are significantly different, however, it is more statistical than most of the other post hoc tests.

FALSE

89. In the bowels of a detailed marketing research report, differences should be absolutely obvious to the client, and it is the researcher's responsibility to ensure this.

FALSE

91. Depending on the objectives of the research, it is not recommended to combine percentage differences and mean differences in the same table when reporting the results of differences tests.

FALSE

47. Market segmentation holds that different types of consumers have different requirements, and these differences can be the bases of marketing strategies.

TRUE

71. A researcher must fall back on statistical significance to determine whether the difference that is found between the two sample statistics is a true population difference.

TRUE

73. With a differences test, the researcher tests the null hypothesis that no differences exist between the two group means (or percentages).

TRUE

74. The second step in determining differences between percentages with two groups, requires that this difference be translated into a number of standard errors away from the hypothesized value of zero.

TRUE

75. SPSS does not perform tests of the significance of the difference between the percentages of two groups, but the researcher can use SPSS to generate the relevant information and perform a hand calculation.

TRUE

78. Once the number of standard errors is known, knowledge of the area under the normal curve will yield an assessment of the probability of support for the null hypothesis.

TRUE

82. The end result of analysis of variance is an indication to the marketing researcher as to whether a significant difference at some chosen level of statistical significance exists between at least two group means.

TRUE

85. Post hoc tests are options that are available to determine where the pair(s) of statistically significant differences between the means exist(s).

TRUE

87. Finding significant differences is exciting to marketing researchers because it means that the researcher will have something that is potentially very useful to report to the client.

TRUE

36. The ________ in the ANOVA table indicates the level of significance. A) Minus Sig. value B) Sig. value C) Null Sig. value D) Positive Sig. value

B) Sig. value

35. ________ is a preferred post hoc test because its presentation is easy to interpret. A) Duncan's multiple range test B) Scheffe's test C) Tukey's test D) Neuman-Keuls' test

A) Duncan's multiple range test

1. One commonly used basis for market segmentation is the discovery of all of the following differences EXCEPT for: A) Economically viable. B) Statistically significant. C) Meaningful. D) Stable.

A) Economically viable.

10. Meaningfulness, stability, and actionability are not statistical issues; rather, they are: A) Marketing manager judgment calls. B) Subject to market research validation C) Market target issues. D) Market differentiation issues.

A) Marketing manager judgment calls.

29. ANOVA (analysis of variance) is an investigation of the differences between the group means to ascertain whether: A) Sampling errors or true population differences explain their failure to be equal. B) True population differences explain failure to be equal. C) Sampling errors or true population differences explain their true equality. D) Sampling errors explain the failure to be equal.

A) Sampling errors or true population differences explain their failure to be equal.

23. When a researcher wants to perform the test of significance of differences between two percentages, each representing a separate group (sample), what is the SECOND required step? A) The difference is translated into a number of standard errors away from the hypothesized value of zero. B) The difference is translated into a number of standard errors closest to the hypothesized value of zero. C) The percentage is translated into a number of standard errors away from the hypothesized value of zero. D) The difference is translated into a number of standard errors away at the hypothesized value of zero.

A) The difference is translated into a number of standard errors away from the hypothesized value of zero.

33. Another advantage of using ANOVA is that it ________ so the significant differences can be located and interpreted easily. A) arranges the means B) arranges the medians C) arranges the mode D) arranges insignificant data

A) arranges the means

18. Statistical tests are used when a researcher wants to ________ of two different groups or samples. A) compare the means or percentages B) differentiate between the means or a percentage C) compare medians or percentages D) invalidate a means or percentage

A) compare the means or percentages

43. Statistically significant differences are the beginning point for market segmentation and savvy target marketing. Meaningfulness, stability, and actionability are not statistical issues; rather, they are ________. A) marketing manager judgment calls B) determined by outside market factors C) sales management judgment calls D) determined by internal corporate factors

A) marketing manager judgment calls

4. In order to be potentially useful for a marketing manager, differences must at minimum be: A) At a ratio of 2 to 1. B) Statistically significant. C) New and not part of existing knowledge. D) At a ratio of 10 to 1.

B) Statistically significant.

44. When a researcher wants to determine if two means of two different questions using the same scale format and answered by the same respondents in the sample are significantly different, they would use what type of test? A) Paired samples test for the difference between respondents B) Paired samples test for the difference between two means C) Paired samples test for the difference between two medians D) Non-paired samples test for the difference between two means

B) Paired samples test for the difference between two means

26. A researcher has two percentages and wants to know if the percentages are statistically different. The researcher calculates the z value and finds that it is 4.21. This means that the two percentages: A) Are the same. B) Are not statistically different. C) Have a 421 percent chance of not being different. D) Are statistically different.

B) Are not statistically different.

24. A researcher can test the null hypothesis that no differences exist between the two group means (or percentages) by using what type of test? A) Confidence interval test B) Differences test C) Chi-square test D) Spearman correlation

B) Differences test

27. ________ is the assumption of equal variances between two samples for differences testing. A) The Test of Variances B) Levene's Test for Equality of Variances C) Levene's Test for Heterogeneity D) The Staniklos-Shockley Test of Equal Common Variance

B) Levene's Test for Equality of Variances

15. Virtually every statistical test or procedure involves the computation of some critical statistic, and that statistic is used to determine what? A) The measureable significance of the findings B) The statistical significance of the findings C) The actionable significance of the findings D) The meaningful significance of the findings

B) The statistical significance of the findings

19. When a marketing researcher is interested in making comparisons between two groups of respondents to determine whether or not there are statistically significant differences between them, in concept, the researcher is considering them as: A) Two potentially similar populations. B) Two potentially different populations. C) Two potentially different markets. D) Two identical populations.

B) Two potentially different populations.

11. The ________ is defined as the statistical inference test to be used with small samples sizes (n ≤ 30). A) z test B) t test C) p test D) n test

B) t test

5. Differences are important, but a finding of statistical significance in no way guarantees which of the following? A) Significant difference B) Market difference C) Meaningful difference D) Actionable difference

C) Meaningful difference

20. To test whether a true difference exists between two group percentages, we test the: A) Alternative hypothesis. B) Causal hypothesis. C) Null hypothesis. D) Attributive hypothesis.

C) Null hypothesis.

16. A nominal variable requires that the researcher compare: A) Means. B) Medians. C) Percentages. D) Modes.

C) Percentages.

39. ANOVA is much more efficient and convenient than: A) Performing successive independent sample similarities tests. B) Performing successive dependent sample differences tests. C) Performing successive independent sample differences tests. D) Performing an independent sample differences test.

C) Performing successive independent sample differences tests.

8. What is the marketing segmentation requirement where marketers are not working with a short-term or transitory set of differences? A) Permanence B) Longevity C) Stability D) Sustainability

C) Stability

21. A(n) __________ is that there is a true difference between two groups' population parameters. A) null parameter B) null hypothesis C) alternative hypothesis D) null alternative hypothesis

C) alternative hypothesis

25. The procedure for testing significance of difference between two means from two different groups (either two different samples or two different groups in the same sample) is ________ the procedure used in testing two percentages. A) different from B) the opposite of C) identical to D) similar to

C) identical to

41. Market segmentation is very prevalent, and whenever significant differences are found, they may: A) Result in sales strategy changes. B) Enable global market entry. C) Change marketing mix components. D) Represent important market segmentation implications.

D) Represent important market segmentation implications.

38. If the Sig. value is .05 or less, the researcher can use ________ to identify the pair or pairs of groups where the means are significantly different. A) a null hypothesis for differences test B) analysis of variance C) paired samples test for the difference between two means D) a post hoc procedure such as Duncan's multiple range test

D) a post hoc procedure such as Duncan's multiple range test

40. Markets are often comprised of a number of market segments, not just two, so ________ is a valuable tool for discovering differences between and among multiple market segments. A) t tests B) z tests C) post hoc tests D) analysis of variance

D) analysis of variance

32. One of the advantages of using ANOVA is that it ________, because all a researcher needs to do is to look at the Sig. value. A) immediately notifies the researcher of potential problems B) raises cautionary issues of concern regarding differences C) allows the researcher to find similarities D) immediately notifies the researcher if there is any significant difference

D) immediately notifies the researcher if there is any significant difference

49. There is a clear-cut need to investigate differences among consumer groups for consumer marketers, but not as clear for business establishments for B2B (business-to-business) marketers.

FALSE

51. Market differentiation is based on differences between groups of consumers.

FALSE

53. Apparent differences between and among market segments are not usually subjected to tests that assess their statistical significance.

FALSE

55. To be useful to the marketing researcher or manager, differences must, if statistically significant, be measurable and actionable.

FALSE

57. A measurable difference is one that the marketing manager can potentially use as a basis for marketing decisions.

FALSE

58. Even if differences are statistically significant and meaningful, they do not necessarily need to be stable.

FALSE

60. Meaningfulness, stability, and actionability are statistical issues; they are not within the purview of a marketing manager.

FALSE

83. ANOVA will "signal" when at least one pair of means has a statistically significant difference, but will tell which pair.

FALSE

84. The Sig. value in the ANOVA table is one of several that indicate the level of significance.

FALSE

48. Differences are important and one of the most useful marketing management concepts is market segmentation.

TRUE

50. One commonly used basis for market segmentation is the discovery of (1) statistically significant, (2) meaningful, (3) stable, and (4) actionable differences.

TRUE

52. To be potentially useful to the marketing researcher or manager, differences must, at minimum, be statistically significant.

TRUE

54. A finding of statistical significance in no way guarantees "meaningful" difference.

TRUE

56. With the proliferation of data mining analysis due to scanner data with tens of thousands of records, online surveys that garner thousands of respondents, and other ways to capture very large samples, there is a very real danger of finding a great deal of statistical significance that is not meaningful.

TRUE

59. An actionable difference means that the marketer can focus various marketing strategies and tactics, such as product design or advertising, on the market segments to accentuate the differences between the segments.

TRUE

61. Market segmentation requires that standard or innovative market segmentation bases are used, and that these bases uniquely identify the various groups so they can be analyzed and put in the marketer's targeting mechanisms.

TRUE

63. The computation of the z value makes the assumption that the raw data for most statistics under scrutiny have normal or bell-shaped distributions.

TRUE

65. SPSS will always determine the correct significance level whether it is a t or a z, you do not need to worry about which statistic to use.

TRUE

67. The sample size of 30 or greater requires the use of a z test.

TRUE

68. Virtually every statistical test or procedure involves the computation of some critical statistic, and that statistic is used to determine the statistical significance of the findings.

TRUE

70. Independent samples are treated as representing two potentially different populations.

TRUE

79. The procedure for testing significance of difference between two means from two different groups is identical to that used in testing two percentages. However, the equations differ because a scale variable is involved.

TRUE

80. ANOVA is used when comparing the means of three or more groups.

TRUE

81. In using analysis of variance, there is a desire on the part of a researcher to determine whether a statistically significant difference exists between the means for any two groups in a sample with a given variable, regardless of the number of groups

TRUE

88. In presenting results to clients, market researchers have the obligation have the responsibility to report both good and bad news.

TRUE

90. A paired samples test for the difference between two means is not used for segmentation purposes.

TRUE

92. When the researcher is reporting differences found from ANOVA, the table presentation becomes more challenging, as there can be overlap of non-significant differences and significant differences.

TRUE