Chapter 8 Information Gathering and Processing in Retailing

52) A chain shoe retailer with 100 stores determined that its monthly sales were 12 percent below expectations on the basis of its retail plan. Which represents a clear statement of a topic to be studied in the problem (issue) definition stage of the marketing research process in retailing? A) Why has overall sales volume declined 12 percent in comparison to the projected sales level? B) Why has sales volume declined by at least 25 percent over projected levels in some geographic areas versus a gain of 10 percent in others? C) Have competitors also had lower than anticipated sales? D) What is actual versus planned sales on each major merchandise classification (men's, ladies, and children'sslipper, dress shoe, casual shoe, and sneaker line) by store?

; D) What is actual versus planned sales on each major merchandise classification (men's, ladies, and children's; slipper, dress shoe, casual shoe, and sneaker line) by store?

62) A franchisee needs to determine its sales in a specific geographic area in conjunction with a major legal court case against a franchisor. The retailer should utilize ________. A) a probability sample B) a nonprobability sample C) simulation D) an experiment

A) a probability sample

42) An example of an exception report is ________. A) a report listing customers with overdue credit card balances B) a quarterly profit-and-loss statement C) an inventory turnover report by merchandise classification D) an analysis of profitability by merchandise classification

A) a report listing customers with overdue credit card balances

3) The information needs of retail managers are anticipated, collected, organized, and stored on a continuous basis in ________. A) a retail information system B) observation C) an experiment D) retail research

A) a retail information system

39) A hotel chain found the following profile to exist for its guests: average stay is 2.7 nights, 55 percent had a car with them, 8 percent watched a pay-per-view television program, and 15 percent purchased a snack item from the in-room refrigerator. Which form of marketing research was the retailer utilizing? A) a retail information system B) an experiment C) simulation D) observation

A) a retail information system

6) A major benefit to data warehousing is its ________. A) ability for data access and retrieval at multiple locations B) low cost C) continuously being updated D) ease of use

A) ability for data access and retrieval at multiple locations

47) An advantage of electronic data interchange (EDI) is ________. A) increased communication between retailers and their suppliers B) increased communication between retailers and their customers C) increased speed of data transmission on sales by employee D) more accurate data due to the modular nature of the transmission process

A) increased communication between retailers and their suppliers

57) The use of point-of-sale cash registers to study the number of products purchased in the average transaction illustrates ________. A) internal secondary data B) external secondary data C) a survey D) observation

A) internal secondary data

58) A retailer has a database of past sales by season, by store, and by merchandise classification. This database is used as a guide in planning and control. The database is an example of ________. A) internal secondary data B) external secondary data C) a survey D) observation

A) internal secondary data

46) The Universal Product Code (UPC) is most widely used in conjunction with ________. A) inventory management B) consumer credit-card purchases C) merchandise returns D) accounting recordkeeping

A) inventory management

23) Sampling of stores, products, or customers in a nonprobability sample is conducted on the basis of ________. A) judgment or convenience B) an equal chance of being chosen C) a known chance of being chosen D) a table of random digits

A) judgment or convenience

67) Stores with very similar images on a semantic differential have average scores ________. A) near each other B) on different scales C) far from each other D) on opposite scales

A) near each other

31) A form of research in which present behavior or the results of past behavior are noted and recorded is ________. A) observation B) survey C) simulation D) experimentation

A) observation

16) Data generated through surveys, observation, experiments, and simulation to address the specific problem or issue under study are ________ data. A) primary B) secondary C) marketing information systems D) marketing research

A) primary

1) Using intuition, continuing what was done before, and copying a successful competitor's strategy are examples of ________. A) retail strategies based on nonsystematic research B) creative problem solving C) the marketing concept applied to retailing D) executive judgment

A) retail strategies based on nonsystematic research

14) Data that have already been gathered for purposes other than the problem or issue under study are ________. A) secondary data B) primary data C) marketing research data D) marketing information systems data

A) secondary data

45) The data collection role of retailers in a distribution channel has been facilitated by ________. A) the use of UPC and scanners B) simulation-based studies C) personal surveys D) observation

A) the use of UPC and scanners

41) A retailer with 1,000 credit accounts has 50 with balances that are past due for over 45 days. How many accounts would be listed in the exception report? A) 25 B) 45 C) 50 D) The answer cannot be determined based on the information provided.

B) 45

4) Which of these is not a benefit of the use of a retail information system? A) Opportunities can be foreseen. B) The initial time and labor investment is low. C) Crises can be avoided. D) The elements of a retail strategy can be coordinated.

B) The initial time and labor investment is low.

48) Paperless communication between a retailer and its suppliers has been facilitated by ________. A) retail information systems B) UPC-based technology and EDI C) exception reports D) database management

B) UPC-based technology and EDI

65) A retailer wants to study the effect of store brand on customer perception of quality. While the same exact knit shirts are shown to respondents, one-half are labeled with the store's dealer brand and the other half with a nationally advertised manufacturer's brand. Respondents are told to rate the quality of each shirt. They are told that the purpose of the study is to refine the store's quality measurement scale. This illustrates ________. A) a simulation B) a disguised survey C) a nondisguised survey D) observation

B) a disguised survey

30) An appliance retailer is classified by consumers as friendly, reliable, moderately attractive, and as providing a relatively good value for the money. The research technique used by the retailer is ________. A) observation B) a semantic differential C) experimentation D) an online survey

B) a semantic differential

32) The major disadvantage of observation is that ________. A) the sampling is not probability-based B) attitudes cannot be studied C) the experiment is contrived D) the respondent knows that he or she is being measured

B) attitudes cannot be studied

25) Which of the following is not a survey? A) personal interviewing B) customer traffic counts C) a mail-based questionnaire D) a telephone-based questionnaire

B) customer traffic counts

44) A retailer uses sophisticated software to evaluate large quantities to uncover emerging trends. This illustrates ________. A) data warehousing B) data mining C) experimentation D) simulation

B) data mining

50) A retailer determined that its monthly sales were 22 percent below expectations on the basis of its retail plan. Which stage of the marketing research process should the retailer be concerned with? A) making recommendations B) defining the problem C) analyzing primary data exception reports D) implementing findings

B) defining the problem

2) An example of nonsystematic research in retailing, relating to the effect of a price rise on projected sales, is ________. A) evaluating sales of sweaters at different price levels in prior years B) developing an educated "guess" as to demand for sweaters based on current weather conditions C) interviewing consumers to determine their probability of purchasing sweaters at different prices D) experimentation with different price levels in matched-pairs of stores

B) developing an educated "guess" as to demand for sweaters based on current weather conditions

11) Retailers and their suppliers regularly exchange information via their computers through the use of ________. A) retail information systems B) electronic data interchange C) data-base management D) customer relationship marketing programs

B) electronic data interchange

34) Which research technique is able to show cause and effect? A) survey B) experiment C) observation D) simulation

B) experiment

17) A major advantage of secondary data is the ________. A) fit with the research topic to be studied B) immediate availability of data for analysis C) ability to control the use of questions and the sequence of questions D) known source and control over data collection

B) immediate availability of data for analysis

15) Secondary data can be further broken down into ________ and ________ data. A) probability; nonprobability B) internal; external C) survey; experiments D) primary; tertiary

B) internal; external

63) A retailer seeks to conduct a survey. It is important that interviewer bias be minimized. The retailer should utilize which survey technique? A) observation B) mail survey C) telephone survey D) personal survey

B) mail survey

22) A major advantage of primary data is that the ________. A) study is inexpensive B) methodology is conducted for the current study C) data are readily available D) data can always be collected by a single retailer

B) methodology is conducted for the current study

36) A small movie theater plans to build a coffee and snack bar that features espresso based on the success of a much larger competitor that features six screens. This strategy represents ________. A) systematic research B) nonsystematic research C) a retail information system D) single-source data

B) nonsystematic research

64) A retailer plans to study store loyalty among a group of respondents that live within normal driving time of its store. The retailer seeks to terminate the data collection process in the early stage of data collection if the store-loyal group of customers approximates 30 percent of respondents. Which survey technique should the retailer utilize? A) mail survey B) telephone survey C) simulation D) observation

B) telephone survey

69) Which type of consumer behavior can best be studied using observation? A) the average distance shoppers will travel to shop at a new regional shopping center B) the average length of time a consumer spends in the cereal aisle of a supermarket C) the degree of store loyalty D) the store image of a specialty retailer

B) the average length of time a consumer spends in the cereal aisle of a supermarket

40) The difference between regular reports and exception reports is based on ________. A) length B) the handling of deviations from expected performance C) cost D) types of accounts covered

B) the handling of deviations from expected performance

49) The major difference between marketing research in retailing and a retail information system is that ________. A) the retail information system stores data B) the retail information system is continuous C) marketing research in retailing includes the retail information system process D) marketing research in retailing does not include inventory-related data

B) the retail information system is continuous

9) Which statement concerning the Universal Product Code (UPC) is not correct? A) The UPC is not readable by humans. B) The UPC is now the accepted industry standard by food and general merchandise retailers. C) The UPC symbol also includes price information. D) With the UPC, cashiers no longer have to enter transactions manually.

C) The UPC symbol also includes price information.

19) An example of internal secondary data is ________. A) a new market research study conducted by an independent market research company B) a new market research study conducted by the firm's market research department C) a retailer's profit-and-loss statements D) annual reports of competitors

C) a retailer's profit-and-loss statements

27) In a nondisguised survey, a respondent is told the ________. A) actual stores being investigated B) sponsor of the survey C) actual intent of the study D) actual name of the market research company conducting the survey

C) actual intent of the study

28) Disguised surveys are typically used to study consumer ________. A) demographics B) lifestyles C) attitudes D) reactions to price changes

C) attitudes

56) A major concern with a retailer's using internal secondary data as a source of information is the ________. A) high cost of permissions B) credibility of the data source C) data being misleading since it may focus on one time period D) high cost of data collection

C) data being misleading since it may focus on one time period

43) A frequent-shopper program is an example of ________. A) electronic data interchange B) market research C) database management D) data mining

C) database management

5) The procedure to gather, integrate, apply, and store information related to specific subject areas is referred to as ________. A) data warehousing B) data mining C) database management D) a retail information system

C) database management

53) The major distinction between primary and secondary data is that primary data are ________. A) less costly B) generated by the affected retailer C) generated specifically for the research project under study D) conducted at continuous time intervals

C) generated specifically for the research project under study

13) Which stage of the marketing research process in retailing is concerned with the development of a clear statement of the topic to be examined? A) recommendations B) primary data collection C) issue (problem) definition D) implementation

C) issue (problem) definition

7) An application of data mining is ________. A) pilferage control B) sales forecasting C) micromarketing D) mass marketing

C) micromarketing

70) A retailer wishes to determine how many of its salespeople cross-sell related items. The optimal methodology should utilize ________. A) an experiment B) a survey C) mystery shoppers D) secondary data

C) mystery shoppers

68) A shopping center developer seeks to determine the average turnover of cars in the shopping center. The developer is concerned about whether he or she should impose a parking fee. A sample of cars is monitored in terms of entry and exit times. Which primary research technique was used? A) survey B) experimentation C) observation D) simulation

C) observation

66) In studying its image, a retailer discovers that it is, on average, described as being expensive, as having very good service, as stocking conventional "me-too" goods, and as having a conservative fashion orientation. The retailer used which primary research technique? A) observation B) sampling C) semantic differential D) multi-dimensional scaling

C) semantic differential

24) Information is systematically gathered from respondents by communicating with them in a(n) ________. A) observation B) simulation C) survey D) experiment

C) survey

18) A major disadvantage of the use of secondary data is ________. A) its high cost of data collection B) its lack of a representative sample C) that data may be categorized in an unusable fashion D) its difficulty in tabulation

C) that data may be categorized in an unusable fashion

12) Marketing research in retailing involves ________. A) primary data collection and analysis B) secondary data collection and analysis C) the collection and analysis of information relating to specific issues or problems facing a retailer D) the gathering, storing, and retrieval of data in an orderly manner

C) the collection and analysis of information relating to specific issues or problems facing a retailer

55) Which problem definition is most likely to require primary data collection? A) to determine the average household income level in a county B) to analyze the percent of high school graduates that plan to go immediately to college C) to determine the average supermarket purchase by consumers on the basis of family size D) to determine the percent of households that move in a given year

C) to determine the average supermarket purchase by consumers on the basis of family size

37) Which does not represent a systematic method of research? A) pre-testing of a survey to determine potential biases in wording B) verifying that interviews were actually conducted with selected respondents by use of a telephone C) use of a nonprobability sample in a legal case involving retail pricing D) removing potential respondents, who have moved prior to a store being renovated, from a store image survey

C) use of a nonprobability sample in a legal case involving retail pricing

54) An example of primary data to determine the effect of a 10 percent price increase in sales is information gathered from ________. A) trade association unpublished research B) public data which is filed by competitors for federal agencies C) company sales reports that list sales at different price intervals over time D) an experiment in which company personnel monitor sales in matched pairs of stores where prices differ by 10 percent on a systematic basis

D) an experiment in which company personnel monitor sales in matched pairs of stores where prices differ by 10 percent on a systematic basis

20) An example of external secondary data is ________. A) a new market research study conducted by an independent market research company B) a new market research study conducted by the firm's market research department C) company-based inventory records D) annual reports of competitors

D) annual reports of competitors

29) The semantic differential technique uses ________. A) demographic data B) nominal scales C) ratio scales D) bipolar adjective scales

D) bipolar adjective scales

21) Ongoing studies are made available to many clients for a fee from ________. A) channel members B) the U.S. federal government C) the Business Periodicals Index D) commercial research houses

D) commercial research houses

8) The use of micromarketing is an example of which target marketing strategy? A) undifferentiated marketing B) mass marketing C) concentrated marketing D) differentiated marketing

D) differentiated marketing

33) One or more elements of a retail strategy mix are manipulated under controlled conditions in which research technique? A) observation B) simulation C) survey D) experiment

D) experiment

38) A major characteristic of a retail information system is ________. A) its low cost B) the use of competitor data C) the use of verified data from government sources D) its continuous nature

D) its continuous nature

51) An example of secondary data relating to inventory levels held at each store is information gathered from ________. A) a physical count of each store's inventory developed especially for the current study B) a questionnaire sent to store managers on inventory adequacy C) an experiment conducted to determine what percent of consumers switch brands when their preferred brand is out of stock D) past management reports developed on the basis of point-of-sale equipment

D) past management reports developed on the basis of point-of-sale equipment

26) The potential for interviewer bias is greatest in which survey technique? A) mail survey B) observation C) telephone survey D) personal survey

D) personal survey

60) A retailer can generate data on sales by cash versus credit, the average sale, and number of items purchased on the average shopping trip by examining ________. A) inventory records B) purchase orders C) merchandise purchases D) sales invoices

D) sales invoices

61) A drug store chain customarily sells items, such as nationally advertised film, batteries, and shampoo, at low cost in an attempt to increase store traffic and sales of other merchandise. It seeks to determine the percentage of shoppers that purchased any of these three goods who also bought at least $10 in additional goods on the same shopping trip. This can be determined through an analysis of ________. A) telephone survey B) personal survey C) observation D) sales invoices

D) sales invoices

35) A mathematical model is constructed to explain the environment facing a retailer in which research technique? A) survey B) experiment C) observation D) simulation

D) simulation

59) The distinction between internal and external secondary data is based on the ________. A) purpose of the data collection process (past research or new research project) B) focus of the data (company or industry) C) firm collecting the data (government or commercial research house) D) source of the data (within or outside the firm)

D) source of the data (within or outside the firm)

10) The Universal Product Code (UPC) system allows a retailer to ________. A) develop a personnel performance system B) evaluate store managers based on profitability C) read price information based on the code D) store and monitor product sales data on an item-by-item basis

D) store and monitor product sales data on an item-by-item basis