Marketing Management Chapter 4

Which statement is TRUE of collecting data for market research in global markets? A) The quantity and quality of data found in the United States are not available in most of the world. B) The culture in countries such as China and India encourages the free flow of information. C) International market data are easier to get and understand than domestic data. D) Essential information about economic and general business trends cannot be gathered from secondary sources. E) In most Western European countries, it is much more difficult to access quality data than in the rest of the world.

A) The quantity and quality of data found in the United States are not available in most of the world.

Which type of research is less structured and can employ methods such as surveys and interviews to collect the data? A) quantitative B) qualitative C) computational D) statistical E) mathematical

B) qualitative

A marketing manager is interested in the relationship between the location of their stores and the level of sales. To test whether moving a store will lead to a change in sales and, if so, how much of a change, the marketing manager should use________ research. A) causal B) descriptive C) random D) academic E) exploratory

A) causal

A restaurant's marketing manager is interested in finding out if reducing the price of food items will lead to increased sales. For this purpose, the manager should conduct________ research. A) causal B) exploratory C) descriptive D) secondary E) longitudinal

A) causal

In the market research process, once the management research deliverable has been identified, the next step is to A) define the research problem. B) establish the research design. C) search secondary sources. D) collect the data. E) analyze the data.

A) define the research problem.

The owners of a tattoo shop are interested in determining the nature of the relationship between their clients' professional occupation and the number of tattoos that individuals have. In this case, which research will result in the most appropriate way to explain the nature of this relationship? A) descriptive B) exploratory C) longitudinal D) clinical E) random

A) descriptive

The manager of an automotive after-market specialties firm is interested in collecting secondary data. He is concerned with the future of the industry and his competition. He would like to find industry research reports along with industry and company analysis of his competitors. His best sources of this information would be A) independent online databases. B) research studies. C) CRM systems. D) online focus groups. E) sales force automation systems.

A) independent online databases.

What is one of the three factors a company needs to consider when creating a market information system? A) information needs B) technology needs C) flexibility D) diversity E) demographics

A) information needs

A company is conducting an online focus group to learn more about the nutritional habits of senior citizens and the underlying causes of these behaviors. They are having problems because many of the members of their target market do not own computers. Which disadvantage of online focus groups does this scenario illustrate? A) limited access B) identity verification C) environmental control D) family issues E) qualification

A) limited access

The marketing director of a bank decides to conduct a survey of 5,000 current customers to gather information to answer the research problem of what the bank can do to improve its services and customer satisfaction. Starting with a database of 50,000 current customers and randomly picking a name on the list to start, the marketing director then selects every tenth person on the list to receive a survey. A________ sampling method is being used to select the participants for the study. A) probability B) quota C) convenience D) observational E) judgment

A) probability

A restaurant chain recently experienced a decline in hamburger sales after salmonella was discovered during a health inspection at one of the restaurants. The marketing manager was interested in how other restaurants had dealt with similar situations. Which type of data would be the most appropriate way to find answers related to this marketing problem? A) secondary B) subjective C) experimental D) primary E) quantitative

A) secondary

The marketing management team of a food distributor hired a research firm to collect preference data from consumers in several former Soviet Bloc countries. However, the researchers struggled to get these data, especially from older citizens who were afraid that the information would be used against them, as it had been when they were under a Communist government. Which problem associated with collecting primary data in global markets does this scenario exemplify? A) unwillingness to respond B) limited access C) unreliable sampling procedures D) inaccurate language translation E) insufficient comprehension

A) unwillingness to respond

The owner of Joaquin's Pool Hall found some secondary data online that measured consumer reactions to certain amenities in bars and nightclubs. However, he is concerned about how these data were collected and from whom it was collected. This represents the concerns associated with the________ of secondary data. A) validity B) cost C) speed D) aptness E) availability

A) validity

________ is defined as the identification, collection, analysis, and distribution of data to discover and solve marketing problems or enhance good decision making. A) Marketing control B) Market research C) Market development strategy D) Marketing mix E) Market orientation

B) Market research

The CEO of an automaker is concerned about declining sales, and has identified the research problem as the fact that competitors are drawing away the company's business. The CEO purchases access to J.D. Power's automobile rankings to learn about possible reasons for the shift in consumer purchasing. In this case, the CEO is using________ to collect secondary data for the research problem. A) a survey questionnaire B) a market research organization C) a government source D) focus groups E) unstructured interviews

B) a market research organization

The marketing management team of a toy company is looking at the possibility of opening a new plant in one of several developing countries. Before they decide in which country they want to build, they want to conduct some preliminary research including local population demographics and lifestyle characteristics. However, they have discovered that the governments in several of these countries do not have a department that collects these data, and no independent research firm has measured any of these areas. Which issue with secondary data in global markets does this illustrate? A) extendibility B) accessibility C) dependability D) compatibility E) comparability

B) accessibility

Since there are so many other companies that operate in the food service industry, the owner of National Restaurants pays detailed attention to what other restaurants that offer similar meals, prices, and services are doing. In the context of external forces affecting marketing decisions, the owner's focus is on A) demographics. B) competition. C) the political/legal environment. D) technological transformations. E) the natural world.

B) competition.

The marketing manager of Zenith Corp. is interested in ranking clients on the basis of their profitability, and accesses a database that tells him about the frequency and size of each client's order along with the actual costs per order. This database is part of the________ system. A) sales information B) customer relationship management (CRM) C) financial information D) employee management E) promotion management

B) customer relationship management (CRM)

The sole proprietor of a company is interested in gaining a better understanding of his current customers in terms of certain demographic and lifestyle characteristics so he may better serve their needs. For this purpose, he should most appropriately conduct________ research. A) causal B) descriptive C) random D) academic E) exploratory

B) descriptive

A shoe manufacturing company is interested in selling its products in a new country. Before entering the marketplace, the company wishes to gather information about the ability of the country's citizens to purchase products. For this purpose, the company is most likely to analyze the country's A) political environment. B) economic conditions. C) technological transformations. D) natural world. E) geographic changes.

B) economic conditions.

For managers, the key section of the market research report that presents a brief and concise overview of essential findings is the A) nature of data. B) executive summary. C) sampling plan. D) information content. E) research design.

B) executive summary.

While researching the possible impact of economic conditions on a proposed new product introduction on the internet, you find an article inBloomberg Business Week online that reviews how new products have fared during times of rising inflation. Which source of secondary data does this scenario exemplify? A) market research organizations B) general knowledge sites C) government sources D) focus groups E) in-depth interviews

B) general knowledge sites

A marketing manager has noticed that in many European countries, more of the population is moving into urban centers. This has resulted in an increased demand for subcompact cars that can maneuver through these congested streets rather than full-size automobiles. In the context of external information sources, this is an example of how________ can influence marketing management decisions. A) technology transformations B) geographic changes C) marketing plans D) customer inquiries E) internal factors

B) geographic changes

Which action is least likely to be part of the market research process? A) defining the problem B) implementing the results C) establishing the research design D) collecting the data E) searching secondary sources

B) implementing the results

An advantage of using secondary data over primary data is that it A) provides specific answer to a research problem. B) is less expensive. C) fits the research problem exactly. D) has high validity regardless of the methodology used. E) is more current.

B) is less expensive.

Concerned by recent negative trends in the consumer price index, gross domestic product, and inflation, the marketing manager of a vacation rentals company recommends that the company reduce its advertising spending. His recommendation is based on________ data. A) microeconomic B) macroeconomic C) qualitative D) observational E) subjective

B) macroeconomic

A market research company is testing how people react to a proposed advertising campaign for Super Sports Cars. The researchers use a device that tracks eye movement while the subjects view a series of advertisements to determine what the person sees first, what they are focusing on in the ad, and how their eyes move around the ad. In this case, the company is using________ for its market research. A) in-depth interviews B) mechanical observation C) behavioral measures D) structured surveys E) focus groups

B) mechanical observation

Doreen is creating a survey for her company. The question she is currently working on asks her business-to-business customers to describe the ideal purchasing transaction. Doreen is utilizing a(n)________ question. A) census B) open-ended C) observational D) closed-ended E) statistical

B) open-ended

Which statement about descriptive research is accurate? A) It primarily involves developing hypotheses for testing in exploratory research. B) It is usually the first step when more sophisticated research is needed. C) It uses many different methods including secondary data, surveys, and observation. D) It primarily tries to discover the cause and effect between variables. E) It uses a different, less restrictive and rigorous methodology than exploratory research.

C) It uses many different methods including secondary data, surveys, and observation.

________ sampling uses a specific set of procedures to identify individuals from the population to be included in the research. A) Snowball B) Convenience C) Probability D) Quota E) Judgment

C) Probability

A marketing manager decides to conduct descriptive research to gather information on what customers purchase, when they purchase, and how often they purchase certain products. For this purpose, the marketing manager would most likely use A) an in-depth interview. B) qualitative data. C) behavioral data. D) causal data. E) a laboratory experiment.

C) behavioral data.

The marketing manager for a group of housewares stores is in the process of getting primary data from customers to learn which current products need improvement. They are using a probability sampling method, but are having trouble figuring out how to contact customers and get them to participate. They are also debating alternative ways to record the responses so that they can be analyzed. The company is concerned with the________ part of the market research process. A) problem definition B) research design C) data collection D) data analysis E) reporting

C) data collection

The recent controversy over the age of Chinese Olympic divers because of differing ages on their passports and in government files exemplifies the difficulty with the________ of secondary data in global markets. A) extendibility B) accessibility C) dependability D) compatibility E) comparability

C) dependability

A soft drink company is conducting market research to determine if a new beverage will be successful. The company is in the process of determining the kind of research that needs to be done, the information needed, and the sampling plan—including the research participants. The company is in which stage of the market research process? A) collecting the data B) searching secondary sources C) establishing the research design D) analyzing the research data E) reporting the research findings

C) establishing the research design

An advantage of using secondary data is that it A) has high validity regardless of the methodology used. B) often fits the research problem exactly. C) is a fast way to get information. D) can alone provide specific answer to a research problem. E) is always updated and current.

C) is a fast way to get information.

The marketing manager for Brand X Razors, a strong national brand, believes he knows how customers will react to a new product offering, but he conducts market research so that he can provide justification for this new product. This cannot be considered quality market research because it A) fails to prejudge the outcome. B) enhances the validity of the information. C) is not impartial and objective. D) enhances good decision making. E) is a result of the methodical analysis of data.

C) is not impartial and objective.

The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of A) portfolio analysis. B) exploratory research. C) marketing intelligence. D) probability sampling. E) mechanical observation.

C) marketing intelligence.

The marketing manager of Big Wheel Motors notices an increased demand for "green" cars that use less fossil fuel and emit fewer pollutants. Under which external information source for making marketing decisions will this information be included? A) legal environment B) microeconomics C) natural world D) competition E) economic conditions

C) natural world

A disadvantage of online focus groups is that A) they require someone to transcribe the spoken words into a transcript. B) they provide data in a format that is usually difficult to read and analyze. C) participants can become distracted and environmental factors can affect their concentration. D) they create an environment where participants are required to focus on the questions. E) participants cannot respond from a remote location such as from home or workplace.

C) participants can become distracted and environmental factors can affect their concentration.

To ensure the primary data they collected about consumer reactions to their product were accurate, a maker of high-end bathroom fixtures hired a single research firm to collect data from certain cities in various countries. In the past, the company had used mail and telephone surveys by local companies in each country to gather data, but it was concerned about whom these companies were surveying and if they actually fit the demographic and lifestyle profiles of the firm's target market. What problem was the firm avoiding when collecting primary data in global markets? A) unwillingness to respond B) limited access C) unreliable sampling procedures D) inaccurate language translation E) insufficient comprehension

C) unreliable sampling procedures

The marketing manager for a furniture company is conducting an analysis of internal sales data. These data are collected and stored electronically on site by each store. He is able to access the data on his computer at the corporate headquarters. He is gathering this information via a(n) A) CRM system. B) information broker. C) market research organization. D) online database. E) sales force automation system.

D) online database.

The marketing managers of a shoe company have clearly defined their research problem as "If we increase our promotions expenditures, by what percentage will it increase sales?" They have also decided that they need primary data to answer this question. To collect these data, it is best for them to use________ research. A) qualitative B) mechanical C) exploratory D) causal E) case-based

D) causal

While writing a customer satisfaction survey, the marketing director for a bank created a set of questions that customers would answer by circling a number between 1 and 7. The number 1 meant that the customers were very dissatisfied by that aspect of the experience, whereas 7 meant that they were very satisfied. The director is using________ questions to collect this information. A) behavioral B) open-ended C) observational D) closed-ended E) qualitative

D) closed-ended

The marketing manager for a campus bar knows that his typical customer is a male college student, so he chooses products and entertainment to appeal to that segment. In the context of external information sources, he is using________ to define his market. A) stereotypes B) estimations C) data cues D) demographics E) instincts

D) demographics

The primary difference between domestic and international research is that international market data are more________ than domestic data. A) easily comparable B) accurate C) reliable D) difficult to interpret E) easily accessible

D) difficult to interpret

A company has seen a decline in absolute level of sales for the last four consecutive months. The product manager asks the market research department to do a study to determine why sales have declined. The most appropriate research type would be A) a laboratory experiment. B) a field experiment. C) a descriptive study. D) exploratory research. E) causal research.

D) exploratory research.

Researchers for Research Group, Inc. are working on crafting a survey for a client. They are concentrating on framing the questions, selecting response choices, refining the wording, and determining how many questions to ask. In the context of establishing the research design, the researchers are focusing on the A) type of research. B) nature of data. C) nature of data collection. D) information content. E) sampling plan.

D) information content.

Bradley, the manager of a home goods store wants to determine what items consumers are looking for this Christmas so that he can plan his orders. He decides to collect data for the purpose by stationing employees outside the store on a particular Saturday with a list of questions to ask willing shoppers to answer as they pass by. In this case, the Bradley is using a________ sampling method to select respondents. A) probability B) random C) systematic D) nonprobability E) stratified

D) nonprobability

A manager wanted to learn how customers would react to some new product displays. To collect this information, she posted employees near the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. In this case, she is using________ for her market research. A) situation analysis B) secondary data C) in-depth interviews D) observational data E) focus groups

D) observational data

As the marketing manager for Household Cleaner Company, you are interested in collecting some qualitative primary data about what outcomes consumers want from your products. You would like the customers you study to react to each other's ideas. However, you want information from a wide range of customers from across the country. The best way to achieve this is to use a(n) A) online database. B) survey study. C) market research organization. D) online focus group. E) CRM system.

D) online focus group.

The marketing manager for Infinity Fabrics reads in a trade magazine that the Federal Trade Commission is in the process of revising content labeling requirements for textiles that claim to be natural. In the context of external forces affecting marketing decisions, this represents the A) economic conditions. B) geographic changes. C) technological transformations. D) political/legal environment. E) natural world.

D) political/legal environment.

A marketing manager would like to know about the typical consumer who purchases a specific type of laptop computer. He begins by searching online and in databases for this information, but soon discovers that the product is too new for the sources to be of help. In this instance he will need________ data to solve his research problem. A) secondary B) governmental C) experimental D) primary E) subjective

D) primary

A marketing manager is considering a new advertising campaign for Healthy Beverages. She purchases six months of scanner data for Tasty Cola, a company that recently ran a similar campaign. She wants to use this information to determine the campaign's effectiveness before implementing it for Healthy Beverages. In this case, the marketing manager is using________ to collect the needed information for research. A) mechanical observation B) unstructured interviews C) observational data D) secondary data E) behavioral data

D) secondary data

Small portable computers, powerful statistical software packages, and internet-enabled supply chain management systems are all examples of how________ influences marketing. A) competition B) the legal environment C) the natural world D) technology E) training

D) technology

The account manager of a market research firm is conducting secondary research on consumer preferences in energy drinks for his clients. His client's drink is 100 percent organic, but all of the secondary data he has found contains only beverages that contain a majority of artificial ingredients. This scenario illustrates the fact that secondary data A) can alone provide specific answer to a research problem. B) are more expensive than primary data. C) are always updated and current. D) will not fit the research problem exactly. E) has high validity regardless of the methodology used.

D) will not fit the research problem exactly.

Which statement is true of secondary data? A) Secondary data are current. B) A specific answer to a research problem will be possible using secondary data alone. C) Secondary data are relatively more expensive than primary data. D) Getting information through secondary data is time-consuming. E) Secondary data will not fit the research problem exactly.

E) Secondary data will not fit the research problem exactly.

A continuing process of identifying, collecting, analyzing, accumulating, and dispensing critical data to marketing decision makers is known as A) market-driven strategic planning. B) a marketing concept. C) the marketing mix. D) marketing orientation. E) a market information system.

E) a market information system.

In the market research process, once the data are collected, coded, and verified, the next step is to A) report the findings. B) establish a research design. C) choose a sampling method. D) search secondary sources. E) analyze the information.

E) analyze the information.

Reasons for conducting exploratory research include A) discovering the cause and effect between variables. B) discovering differences across demographic characteristics. C) identifying characteristics of the target market. D) assessing competitors' actions in the marketplace. E) answering the research question.

E) answering the research question.

Good market research will A) develop answers to fit an already decided outcome. B) not enhance the validity of information. C) happen by accident. D) be subjective. E) be impartial.

E) be impartial.

In the context of sampling plan, a comprehensive record of each individual in the population of interest is known as a A) survey. B) database. C) focus group. D) sample. E) census.

E) census.

When examining some secondary data from Uzbekistan, the marketing manager of RS Chemicals notices that the income figures seem high even after conversion to U.S. dollars. He later learns that the government agency that collects this information records total household income rather than per capita income as in most other countries. This demonstrates which issue with secondary data in global markets? A) extendibility B) accessibility C) dependability D) compatibility E) comparability

E) comparability

What is an external source of collecting information for making marketing decisions? A) customer orders B) marketing plans C) salesperson information systems D) customer inquiries E) competition

E) competition

What is an internal source of collecting information for making marketing decisions? A) demographics B) ethnic groups C) technology transformations D) economic conditions E) customer orders

E) customer orders

A manufacturer of sports apparel and sports equipment experienced a sharp drop in sales during the COVID-19 pandemic. The marketing manager asks the marketing research department to investigate this alarming development. The first step taken by the researchers in their process should be to A) design a questionnaire to gather pertinent data. B) decide which statistical procedure to use. C) determine sources of internal secondary data. D) identify the sample of customers to survey. E) define a specific research problem.

E) define a specific research problem.

All Star Videos wants to conduct exploratory research to clarify its marketing-related research problem. The company decides to collect primary data using qualitative research, and to collect this data from 10 customers with only one researcher. In this case, All Star Videos would most likely use a(n)________ to collect the data and meet its short deadline. A) in-depth interview B) experimental design C) statistical method D) case-study research E) focus group

E) focus group

A manufacturer of food products wants to collect data on item and flavor preferences in several international markets. It sends out a survey that has been accurately translated into the local language, but it still receives inconsistent results. In talking with a consulting firm, the manufacturer is informed that several of these countries have extremely high illiteracy rates and the survey answers may be only random guesses by the respondents. Which problem associated with collecting primary data in global markets does this scenario exemplify? A) unwillingness to respond B) limited access C) unreliable sampling procedures D) inadequate demographic information E) insufficient comprehension

E) insufficient comprehension

The marketing manager of a firm has hired a market research team. Together, the manager and the researchers decide that they need data from current customers and noncustomers who fit a specific demographic and lifestyle profile. In the context of research design activities, the selection of these individuals as targets for data collection represents the A) type of research. B) nature of data. C) nature of data collection. D) information content. E) sampling plan.

E) sampling plan.

A marketing manager has decided to conduct descriptive research using primary data. Based on some preliminary research of trade journals and interviews with customers, she knows what questions to ask. However, the customers she wants information from are spread out over many stores in several states. The best technique for her to collect this data would be A) in-depth interviews. B) case studies. C) focus groups. D) experiments. E) surveys.

E) surveys.