Marketing Research Final
Robert Amos is the marketing manager for TeleOptics Inc. TeleOptics offers a system that greatly enhances the viewing experience of home theaters by altering audio and video signals and creating ambient lighting. Because TeleOptics is a new product, Robert is considering offering a single package or a "Basic" package with several options at additional prices. He examines survey data that was conducted during the concept stage of product development. One research question asked owners of home theaters what they would be willing to pay for this enhancement system. Robert looked at the mean and standard deviations. Which one of the following sets of means and standard deviations would indicate that Robert should offer the "Basic" package and several options at additional cost?
$95; 30.2
Listed below are several correlation coefficients and their respective p-value. If we use 0.05 as the level of significance, which correlation coefficient demonstrates an association that is significant?
.75, .04
For a variable coded "0" or "1," there are 102 "0s" and 101 "1s." What is the value of the measure of the central tendency for this type of data?
0 (mode)
A large clothing manufacturer plans to introduce a new line of sports clothes for women if preliminary market research shows that more than 88% of the population is favorably impressed by the new line. Four hundred women were surveyed; 360 of the women were favorably impressed. The research manager wants to test the hypothesis at the 0.05 significance level. What is the approximate standard deviation of the sample?
0.3
The manager of the local Jimmy John's store is interested in understanding whether sales are positively associated with customer satisfaction. If so, she wants to allocate more dollars on improving customer satisfaction. She collected monthly customer satisfaction (X) and monthly sales (Y) for consecutive 6 months. She finds thata) the covariance between customer satisfaction and sales is 4 (sxy= 4) b) the standard deviation of customer satisfaction is 2.5 (sx = 2.5) c) the standard deviation of monthly sales is 2 (sy = 2) What is the correlation between customer satisfaction and sales?
0.8
In a data set, there is variable that measures each respondents purchase quantity of yogurt per week. The value of purchase quantity is "12, 0, 0, 1, 1, 1, 6, 10, 11." What is the median?
1
In a data set, there is variable that measures each respondents purchase quantity of yogurt per week. The value of purchase quantity is "12, 0, 0, 1, 1, 1, 6, 10, 11." What is the mode?
1
A large clothing manufacturer plans to introduce a new line of sports clothes for women if preliminary market research shows that more than 88% of the population is favorably impressed by the new line. Four hundred women were surveyed; 360 of the women were favorably impressed. The research manager wants to test the hypothesis at the 0.05 significance level. The computed t-statistic for testing the hypothesis is
1.33
The FactFinder Research firm conducted a survey for a national food manufacturer, and one of the issues addressed by the research was to determine how many pounds of fish were consumed per capita annually. In the survey they found one person who consumed only one pound of fish per year while 10 people reported 200 pounds per year. The range was:
199
What is the value of the test statistic that would be used in the comparison of the two means? What is the degree of freedom?
2; 14
The principle that guides the framing of a null hypothesis is:
A null hypothesis may be rejected but can never be accepted.
A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas. Specifically, she wants to know if consumers in rural areas use bank debit cards less than consumers in urban areas. Each year for the past five years, she has surveyed 16 individuals (one-half urban, one-half rural) randomly selected from across the United States. The results of the current study indicate that people in urban areas use bank debit cards 12 times per month on average (x̅u =12) people in rural areas use bank debit cards 10 times per month on average (x̅r =10) the standard deviation in means of bank debit card usage in both rural and urban areas is 2 ( su = sr = 2) What test is appropriate for answering the above research question?
A one-tailed t test of difference
Mike Shula is a head football coach. His athletic department spends $30,000 a season on Lizard-Aide, a flavored drink that supposedly contributes to the performance of his players. This year, an independent sports testing association has decided to test the merits of Lizard-Aide and Shula's university has been selected as a member of the national sample. The study is an experiment in which the players, unknown to them, are divided into two segments. Segment 1 receives the real Lizard-Aide prior to and during the games. Segment 2 receives a placebo, which is nothing more than sugar-flavored colored water in containers made to make the sugar-flavored water appear to be Lizard-Aide. It is common practice that, following each game, the coaches evaluate films and give each player a grade ranging from 0 to 100. After the season the sports testing association collects the data. They now have a mean score of performance for each of the two segments for all of the athletic departments participating in the study. If you are the researcher, what statistical test would you conduct?
A one-tailed t test of difference
Which statement is not correct about the null hypothesis?
Accepting the null hypothesis will lead to some changes in opinions or action
Which of the following is NOT a step in the typical hypothesis testing procedure?
All of the above are appropriate steps in the typical testing procedure.
In hypothesis testing, the alternative hypothesis:
All of the above are true.
Identify in which of the following it would be useful for a marketing manager to test for differences between segments
All of the above situations would benefit from tests for differences between segments
Which of the following is appropriate when the research objective is description?
Averages
Which of the research questions/hypotheses below is best answered using hypothesis testing?
Both B and C are correct
Suppose we wanted to test the hypothesis that the mean familiarity rating exceeds 4.0, the neutral value on a seven-point scale. The hypotheses may be formulated as
H0 : μ = 4.0 ; H1 : μ > 4.0
What is the correct expression of the null hypothesis for the alternative hypothesis: the percentage of Internet users who use the Internet for shopping is greater than .40?
H0: π = .40
A large clothing manufacturer plans to introduce a new line of sports clothes for women if preliminary market research shows that more than 88% of the population is favorably impressed by the new line. Four hundred women were surveyed; 360 of the women were favorably impressed. The research manager wants to test the hypothesis at the 0.05 significance level. The correct hypotheses for this situation are:
H0: π = 0.88; H1: π > 0.88
________ is a statistical procedure used to draw inference from the sample parameter to the population parameter.
Hypothesis testing
Which of the following are caveats of correlation?
It's use is limited to interval or ratio variables. It examines the association between only two variables. Do not assume cause and effect. It is limited to linear relationships.
A winery sees the market in three distinct segments based upon usage of wine; a dog food manufacturer sees the dog food market in 12 segments; Toyota offers 17 different models ranging from a two-seater sports car to the Avalon luxury car. These are all examples illustrating how:
Marketers can take advantages of differences between market segments and differences analysis can be used to discovery statistically significant, meaningful, and stable differences
You wish to test the hypothesis that female college students spend more on wearing apparel than male college students. Which of the following is INCORRECT?
None of the above
Let µu and µr be the population mean of usage rates for people in the urban and rural areas, respectively. Which of the following is the null hypothesis that the researcher should use in comparing the usage rates. A) H0 : µu= µr ; H1 : µu ≠ µr B) H0 : x̅u= x̅r ; H1 : x̅u ≠ x̅r C) H0 : µu= µr ; H1 : µu > µr D) H0 : µu= µr ; H1 : µu < µr E) H0 : x̅u= x̅r ; H1 : x̅u > x̅r
Option C
The advertising director in your firm announced her resignation this morning to take another job, and she is leaving this afternoon. Your boss has asked you to take charge of advertising. Unfortunately, you learn the former director was just beginning planning for an upcoming promotion of one of the company's new products. Your immediate decision is to determine a brand name for the product. As the former director leaves, she stops by to drop off some marketing research reports she had just received, which includes several tests on brand names that were proposed for the new brand. The research company tested 30 potential brand names. For each brand name, they collected data on a number of variables such as "intention to purchase" and "attitude toward the brand name." All these variables were collected using 5-point intensity continuum scales. Thus, all the variables possess an interval level of measurement. Just focusing on the two variables mentioned ("intention to purchase" and "attitude toward the brand name"), what type of analysis would you conduct to help you make the decision?
Pearson product moment correlation analysis
Jesse Pollard is the marketing director for SNERDLY TV Cable. He is considering offering a DVR service (digital video recording) to his customers and he is not certain what price they are willing to pay. He had a survey conducted and, after respondents were given a detailed description of the proposed DVR service, they were asked what price they were willing to pay for the service. The mean price was $30 a month. Based upon this mean, Jesse should:
Pollard should actually examine all items covered in b through d before making the decision.
A large clothing manufacturer plans to introduce a new line of sports clothes for women if preliminary market research shows that more than 88% of the population is favorably impressed by the new line. Four hundred women were surveyed; 360 of the women were favorably impressed. The research manager wants to test the hypothesis at the 0.05 significance level. Based on the t-statistic, what finding do we have?
The clothing manufacturer should NOT introduce a new line of sports clothes because there is NO statistical evidence that more than 88% of the population is favorably impressed by the new line.
Which best represents the correct meaning of statistical significance?
The differences found between the sample mean and the hypothesized value in the null hypothesis may be assumed to exist in the population
Which of the following is NOT true of frequency and percentage?
The frequency is preferred over percentages because frequency are intuitive and easy to handle
If the threshold t value is 1.746, which of the following statement about the research findings is true?
The researcher can reject the null hypothesis and find statistical evidence that people in urban areas use bank debit cards more than people in rural area
If the correlation between two variables X and Y is equal to -0.9 and is significant, which of the following is TRUE?
The variable X and Y are highly related, whereby a negative change in X is accompanied by a positive change in Y
Tommy Prothro, a marketing manager for Golden Snack Bars, has commissioned marketing research to determine if one recipe of snack bar is superior to another recipe. More than 400 persons who were "snack bar eaters" were involved in taste tests and, after tasting both recipes, they were asked which recipe they would purchase the next time they purchased snack bars. Tommy is now looking at the data and he sees that recipe A had 53 percent stating a preference whereas recipe B had 47 percent. Tommy's brand manager felt this was "significant" evidence that the firm should produce recipe A. But Tommy wanted more evidence so he asked the research firm to run a test to determine if there was a significant difference between the two recipes. When the firm ran the test, they reported a t value of 5.64. Furthermore, the threshold t value for one-tailed test is 1.650 and the threshold t value for two-tailed test is 1.960. This means:
There are statistically significant differences between the two recipe preferences in the population and one recipe of snack bar is superior to another recipe
If we examine the frequency of a nominal variable and find it to be very dispersed (or stretched out), we can say:
There is a high standard deviation
Which of the following is NOT true of a scatter diagram?
There is no relationship between scatter diagrams and correlation coefficients
Which of the following statements is not correct about the alternative hypothesis?
There is no way to determine whether the alternative hypothesis is supported
Michelle Steward is a marketing professor at Wake Forest University. Michelle had been asked by the administration to study a sample of classes at Wake to help the university understand the student population better particularly in terms of factors that differentiate students with high versus low GPAs. One of the questions asked was: "What score did you earn (0 to 100) on the last test that you took?" and another question in the study asked "How much time, estimated in numbers of minutes, did you study for the last test you took?" Michelle decided to run a correlation analysis on these two questions. When she did, she also run a one-tailed t test. The result shows that the correlation between both variables is 0.98 and the p-value is 0.0001. Michelle knew that this meant:
There was the presence of a positive and significant association between the variables.
When testing whether a true difference in average exists between two segment, the ________ hypothesis is that there is a true difference between the two segment averages that we are comparing
alternative
In the formula for calculating the standard deviation, the differences between each observation and the mean is squared. If we did not square these differences, the standard deviation would:
always be near zero
If we had data that shows the percentage of persons in the population who expect to live until one of the following categories: 61-70, 71-80, 81-90, 91-100, and over 100, the pie chart would be:
an effective visual aid for displaying age range percentages
Pontiac wants to know what types of persons respond favorably to proposed style changes in the Firebird. Frito-Lay wants to know what kinds of people buy from the Frito-Lay line. These are questions that may be answered through:
association analysis
You are an officer in your college's Student Marketing Association. You are looking for ways to ensure that members will join again the following year. Students tend to join for one semester or one year and then drop out. You decide to take a simple random sample of this year's members and give them a survey. One of the questions asks: Will you join the SMA next semester? Yes, No, Don't Know. Another question asks respondents to check all the following that they feel provides them with "value" by virtue of being in the SMA: free food at meetings, getting to socialize in a relaxed setting with fellow classmates, learning about businesses through the guest speaker program, getting job search information through the organization's "Career Search" program, and getting to know your professors on a more personal basis. You want to know which of these are related to whether or not students will join the SMA in the next semester. What analysis should you run?
association analysis between the question that asks if they will join and each one of the remaining questions
Prior to analysis, the data from a survey is arranged into a(n)
data matrix
When computing standard deviation, if the sample size increases while the variability remains the same, then the standard deviation:
decreases
Measures of variability are concerned with:
depicting "typical" difference between the values in a set of values
Computing the average number of dollars college students have on their credit card balances exemplifies:
description
65% of males bought a snack when they rented a DVD and 40% of females bought a snack when they rented a DVD. This is an example where a researcher would:
determine if there is a difference between the average of two populations
When making a comparison between two segments of respondents to determine whether or not they are statistically different, in concept, the researcher is considering the two segments as two:
different populations
The expression of how dispersed respondents are to one another is referred to as
dispersion
The last step involved in hypothesis testing is
draw a marketing research conclusion
A toy store owner is interested in knowing, at the 5% level of significance, whether parents spend greater than $100 on toys per visit to her store or not. In this case, the owner has a null hypothesis that " parents spend exactly $100 on toys per visit to her store " and an alternative hypothesis "parents spend greater than $100 on toys per visit to her store." A sample is taken and calculate the t statistic as 1.7, which is smaller than the threshold value 1.96. Based on the statistical result, we should:
fail to reject the null hypothesis
American Express executives wish to know if there is an association between credit card balance carried and the number of credit cards owned. This is an example of:
finding associations
Assume a college professor wanted to know if the number of hours studied by her students was related to students' test scores. She would use:
finding associations
When determining the effect of different advertising copies on customers' purchase intention, you should use:
finding causal relationship
American Express executives wish to know if there is a difference between the average dollar balance carried on credit cards between males and females. This is an example of:
findings associations
Which of the following refers to a set of procedures in which the sample size and sample statistics are used to make estimates of population values or facts?
generalization or inference
Thinking of a standard deviation and the shape of the distribution, the distribution is "stretched out at both ends" (dispersed) when the standard deviation is:
high
A ________ is a statement about the value of a population parameter based on prior knowledge, assumptions, or intuition.
hypothesis
Tommy Prothro, a marketing manager for Golden Snack Bars, has commissioned marketing research to determine if one recipe of snack bar is superior to another recipe. More than 400 persons who were "snack bar eaters" were involved in taste tests and, after tasting both recipes, they were asked which recipe they would purchase the next time they purchased snack bars. Tommy is now looking at the data and he sees that recipe A had 53 percent stating a preference, whereas recipe B had 47 percent. Tommy's brand manager felt this was "significant" evidence that the firm should produce recipe A. But Tommy wanted more evidence so he asked the research firm to run a test to determine if there was a significant difference between the two recipes. By doing this, Tommy would get information that would allow him to determine:
if there are real differences between the two recipe preferences in the population
Suppose that you are interested in know if the customer satisfaction of a restaurant is greater ethan 4 on a 5-pt scale. You should use:
inference
The Pearson product moment correlation measures the linear relationship between two:
interval- or ratio-scaled variables
The stronger a relationship the:
larger the absolute size of the correlation coefficient
If we adopt a 95 percent level of confidence, we need a P value to be significant if it is:
less than or equal to 0.05
If we adopt a 95 percent level of confidence, we need a p-value, to be significant (i.e., flag is waving) if it is:
less than or equal to 0.05
If we were to graph two variables, let's say, height (in inches) and GPA, and the graph showed points scattered about in a formless shape, we could say there is:
likely no significant association between height and GPA
Iams marketing over 20 different types of dog food, Toyota marketing over 20 different types of cars, and Boeing having five different types of commercial jets and a separate business jets division are all examples of:
market segmentation
Which of the following marketing concepts is an important reason for using the test of differences?
market segmentation
The value obtained by summing all elements in a set and dividing by the number of elements is the
mean
When the scale type is interval or ratio, the appropriate measure of central tendency is:
mean
What would you use to summarize an interval or ratio data?
mean, standard deviation
When a participating respondent does not answer a specific question, this is known as:
missing value
The ________ is the value that occurs most frequently.
mode
When the scale type is nominal the appropriate measure of central tendency is
mode
What would you use to summarize a nominal data?
mode and frequency or percentage
When the scale type is ordinal the appropriate measure of central tendency is:
mode or median
When a computed t value (for a test for differences between two percentages), 4.21, is larger than the standard t value, 1.96, then this amounts to:
no support for the null hypothesis; the two percentages are different
When a computed t value (for a test of population mean with the alternative hypothesis as "the population mean is greater than the hypothesized value"), say 4.21, is larger than t0.95(n-1) = 1.65, then this amounts to:
no support for the null hypothesis; the two percentages are different
George Hubbard has nearly completed designing a survey for a political candidate. Not only is the candidate interested in knowing how constituents in her state feel about certain issues, but she is interested in knowing if attitudes toward these issues differ by demographic subgroups. One of the demographic questions George has added to the survey is religious preference. He asked this question in a way that respondents would indicate their preference by checking a blank alongside the name of several possible religious affiliations such as "Catholic," "Methodist," "Muslim," and so on. George knows that he should anticipate how he is going to analyze the data before he completes the survey questions. As he looks at the religious preference question, he knows that because it's measurement level is ________, he should use a ________ to report the central tendency and a ________ to report variability.
nominal; mode; frequency or percentage
Which of the following states that the difference between the population parameters between two groups is zero?
null hypothesis
The alternative hypothesis: the percentage of Internet users who use the Internet for shopping is greater than .40, is a
one-tailed test
When a researcher is determining if the difference between two segments' parameters are statistically significant, he or she is considering the two segments as two separate populations and the question is whether or not the two different populations'
parameters are different
For purposes of comparison, we can convert the frequency by dividing the frequency of each value by the total number of observations, which results in the:
percentage
The summary of the percent of times each and every category appears for the entire sample is called the:
percentage
A researcher runs a correlation analysis between two variables that she is certain are associated but the analysis indicates the two variables are not associated. The researcher may then want to:
run a scatter plot in search of a non-linear relationship
Let's assume we find in a study that the correlation coefficient between number of years of education and cigarette smoking is -.89. This means that as education level increases:
smoking tends to decrease
If you have a question that has an interval or ratio data, which of the following should be used to report the variability?
standard deviation and range
In the step-by-step approach to the presentation of hypothesis tests, the first step is:
state the hypothesis
An analyst is interested in testing the hypothesis H0 : μ = 15,000 ; H1 : μ < 15,000. The data consist of 20 observations of an interval variable. The correct statistical procedure is the
t-test
A statistically significant test of population mean means:
the differences between the population mean and the hypothesized value would remain in a large number of trials if we repeated the survey over many times
40% women video renters buy snacks; 65% male video renters buy snacks. A computed t statistic is 4.5. Given that the threshold t value is 1.96, this means:
the null hypothesis is not supported; there is a true difference between the two percentages
Assume you run a correlation analysis and there is a significant relationship. What can you use to determine how strong the relationship is?
the size of the correlation coefficient
The functions of data analysis "match up" with:
the types of research objectives
The manager of the city's professional hockey team conducted a large survey. He wanted to know if there was an association between fans being "season ticket holders" versus "nonseason ticket holders" and whether they "bought" versus "didn't buy" hockey team merchandise at the game. Because his survey included these measurements, he ran a Pearson product moment correlation coefficient that turned out to be .88 with a Sig. value of .001. This meant that:
there is a significant, very strong, positive relationship
Let's assume we run a correlation analysis, and we get a correlation coefficient of .941 and a p-value of 0.000. These figures mean:
there is little or no probability for supporting the null hypothesis, and there is a strong, positive association
The BEST way to handle missing values when analyzing the data is to:
there is no single best way for handling missing values; rather, their treatment depends on the purpose of the study, the incidence of missing values, and the methods that will be used to analyze the data
With test of differences, a researcher is able to compare:
two percentages two averages
Associative analyses determine whether stable relationships exist between:
two variables
If a correlation coefficient is not statistically significant:
you must assume the correlation is zero; the coefficient has no meaning at all