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Marketing: Real People, Real Choices

1) A ________ is a process that determines what information marketing managers need


and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing
information to users.
a. primary data collection system
b. secondary data collection system
c. competitive intelligence system
d. marketing research project
e. marketing information system
Answer: e
Diff: 1
Type: MC
Page Reference: 91
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
2) Which of the following lists the three important components of a basic marketing
information system (MIS) ?
a. competitive intelligence, internal records, and all sales personnel
b. existing data, market researchers to gather more data, and the technology to convert
those data into information
c. managers at all levels, corporate culture, and internal data
d. data, computer hardware and software, and output for marketing decision makers
e. information resources, technical experts, and marketing managers
Answer: d
Diff: 2
Type: MC
Page Reference: 91
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
3) Frito-Lay's ________ gathers daily sales data and sorts it by product line and by
region. The marketing managers use the data to evaluate the market share of different
Frito-Lay products compared to one another and to competing snack foods in each region
where the company does business.
a. case study
b. acquired database
c. syndicated research
d. marketing information system
e. marketing intelligence system
Answer: d
Diff: 2
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Copyright 2013 Pearson Canada Inc.

Marketing: Real People, Real Choices

Type: MC
Page Reference: 91
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
4) Data such as which of a company's customers buy which products, which items the
company has in stock, and when the company ships items to its customer are all examples
of ________.
a. marketing intelligence
b. acquired data points
c. external primary data
d. marketing research
e. internal company data
Answer: e
Diff: 2
Type: MC
Page Reference: 91
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
5) A(n)________ is an internal corporate communication network that uses Internet
technology to link company departments, employees, and databases.
a. social network
b. affiliate program
c. horizontal user network
d. intranet
e. marketing decision support system
Answer: d
Diff: 1
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
6) Which of the following is NOT a major data source for a marketing information
system (MIS)?
a. internal company data
b. marketing intelligence
c. marketing research
d. acquired databases
e. modeling software
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Marketing: Real People, Real Choices

Answer: e
Diff: 2
Type: MC
Page Reference: 91
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
7) Managers at a discount retailer's headquarters would use which of the following to
access up-to-the-minute sales information obtained from the store's cash registers around
the country in order to detect problems with products, promotions, and even the firm's
distribution system?
a. a company intranet
b. secondary data
c. a prediction market
d. marketing intelligence
e. sampling
Answer: a
Diff: 2
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
8) Which of the following is the method by which marketers collect available information
about what is going on in the world that is relevant to their business?
a. a marketing decision support system
b. marketing management
c. longitudinal research
d. a marketing intelligence system
e. data mining
Answer: d
Diff: 1
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
9) Which of the following statements regarding marketing intelligence is true?
a. Marketing intelligence is privately held information.
b. Most companies collect marketing intelligence on an annual or semi-annual basis.
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Marketing: Real People, Real Choices

c. All marketing intelligence is free.


d. Most marketing intelligence is publicly available information.
e. Marketing intelligence gathering is more focused on gaining insights into consumer
activities than competitors' activities.
Answer: d
Diff: 2
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
10) Which of the following is NOT considered a source of marketing intelligence?
a. distributors
b. industry trade publications
c. customers
d. causal research
e. activities of competitors
Answer: d
Diff: 2
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
11) ________ is the process of collecting, analyzing, and interpreting data about
customers, competitors, and the business environment to improve marketing
effectiveness.
a. Marketing research
b. Marketing management
c. Competitive intelligence
d. Marketing intelligence
e. Internal marketing
Answer: a
Diff: 1
Type: MC
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power

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Marketing: Real People, Real Choices

12) Which of the following is general information collected by specialized firms on a


regular basis and then sold to other firms?
a. syndicated research
b. custom research
c. competitive research
d. perceptual tracking
e. marketing decision support research
Answer: a
Diff: 1
Type: MC
Page Reference: 93
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
13) A company reports on consumers' perceptions of more than 1,700 performers for
companies that are interested in using a performer in their advertising. This type of report
is an example of ________.
a. syndicated research
b. custom research
c. case study research
d. exploratory research
e. primary research
Answer: a
Diff: 3
Type: MC
Page Reference: 93
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
14) Nielsen compiles ratings of television shows and then sells the information to many
firms. Nielsen conducts ________.
a. custom research
b. case study research
c. syndicated research
d. exploratory research
e. ethnographic research
Answer: c
Diff: 2
Type: MC
Page Reference: 93
Topic: Marketing Information system
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Marketing: Real People, Real Choices

Skill: Application
Objective: 3-1 Knowledge is power
15) ________ is research a single firm conducts to provide answers to specific questions.
a. Syndicated research
b. Custom research
c. Consumer data
d. Perceptual tracking
e. Internal data
Answer: b
Diff: 1
Type: MC
Page Reference: 93
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
16) A marketing decision support system (MDSS) is a(n)________.
a. basic system used by companies that do not have the resources to develop a marketing
information system (MIS)
b. popular syndicated research report purchased by most major media companies
c. sophisticated information system that allows marketing managers to use statistical and
modeling software tools
d. type of custom research report often called for in the marketing research process
e. data warehouse used to support a marketing information system (MIS)
Answer: c
Diff: 1
Type: MC
Page Reference: 93
Topic: Marketing Decision Support system
Skill: Application
Objective: 3-1 Knowledge is power
17) A(n)________ can use multidimensional scaling to create perceptual maps.
a. intranet analysis
b. marketing information system
c. data warehouse
d. marketing decision support system
e. competitive intelligence system
Answer: d
Diff: 2
Type: MC
Page Reference: 94
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Marketing: Real People, Real Choices

Topic: Marketing Decision Support system


Skill: Application
Objective: 3-1 Knowledge is power
18) A marketing manager would most likely use which of the following to find out how
many consumers stay with his brand and how many switch, and thus project market
shares over time?
a. modeling software
b. syndicated research
c. cross-sectional research
d. exploratory research
e. competitive intelligence
Answer: a
Diff: 3
Type: MC
Page Reference: 94
Topic: Marketing Decision Support system
Skill: Application
Objective: 3-1 Knowledge is power
19) Which of the following is a question that a marketing manager would use an MDSS
rather than an MIS to answer?
a. What were our company sales of each of our products during the past month?
b. What are the best media for reaching a high percentage of heavy users of our product?
c. What changes in sales are happening in our industry?
d. If we change our media schedule by replacing a certain media buy with a new media
buy, will we reach more users of our product?
e. What are the demographic characteristics of consumers whose purchase patterns are
changing the most?
Answer: d
Diff: 3
Type: MC
Page Reference: 94
Topic: Marketing Decision Support system
Skill: Application
Objective: 3-1 Knowledge is power
20) To take advantage of the massive amount of data now available, sophisticated
analysis techniques called ________ are becoming a priority for many firms.
a. data mining
b. prospecting
c. cold calling
d. data warehousing
e. data tallying
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Marketing: Real People, Real Choices

Answer: a
Diff: 1
Type: MC
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
21) The process through which analysts sift through massive amounts of available data to
identify unique patterns of behavior among different customer groups is called ________.
a. causal research
b. custom research
c. longitudinal research
d. data warehousing
e. data mining
Answer: e
Diff: 1
Type: MC
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
22) A company that compiles and uses large amounts of data to understand its customers
is likely to have a(n) ________ to store and process its data.
a. distribution center
b. data warehouse
c. competitive intelligence center
d. custom research project
e. marketing research department
Answer: b
Diff: 2
Type: MC
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
23) Cellular providers who have begun signing deals with business partners wanting to
market products based on specific phone users' locations and calling habits are
participating in a new trend called ________.
a. telemarketing
b. data warehousing
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Marketing: Real People, Real Choices

c. reality mining
d. virtual mining
e. prediction marketing
Answer: c
Diff: 2
Type: MC
Page Reference: 96
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
24) Which of the following is NOT one of the four main applications of data mining for
marketers?
a. customer retention
b. customer acquisition
c. customer abandonment
d. competitive intelligence
e. market basket analysis
Answer: d
Diff: 2
Type: MC
Page Reference: 96
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
25) Through the data mining application of ________, marketers identify big-spending
customers and target them for special offers that other customers won't receive.
a. customer retention
b. customer acquisition
c. customer abandonment
d. competitive intelligence
e. market basket analysis
Answer: a
Diff: 2
Type: MC
Page Reference: 96
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
26) Companies are most likely to use data mining results identifying unprofitable
customers for ________.
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Marketing: Real People, Real Choices

a. customer retention
b. customer loyalty
c. customer acquisition
d. customer abandonment
e. market basket analysis
Answer: d
Diff: 2
Type: MC
Page Reference: 96
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
27) Which of the following is a true statement about the steps in the marketing research
process?
a. The research design should be determined before the problem is defined.
b. The last step is to analyze and interpret the data.
c. The first step is selecting a method of data collection.
d. The first step is defining the research problem.
e. The data must be collected before the sample can be designed.
Answer: d
Diff: 2
Type: MC
Page Reference: 97
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
28) The first step in the marketing research process is to ________.
a. determine how data will be collected
b. select samples
c. clearly understand the information needed by managers
d. set the mission statement for the research
e. determine a research design
Answer: c
Diff: 2
Type: MC
Page Reference: 97
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process

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Marketing: Real People, Real Choices

29) The marketing research process step of defining the research problem has three
components specifying the research objectives, identifying the consumer population of
interest, and ________.
a. placing the problem in an environmental context
b. determining a budget for the research process
c. selecting managers responsible for analyzing the data
d. determining whether primary data will be needed
e. deciding whether to hire a marketing research agency or to conduct the research inhouse
Answer: a
Diff: 2
Type: MC
Page Reference: 97
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
30) Which component of the marketing research process determines the consumer
population that a company will study?
a. the research design
b. the sampling method
c. the research objective
d. the collection method
e. the sampling design
Answer: c
Diff: 2
Type: MC
Page Reference: 97
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
31) The second step of the marketing research process is to ________.
a. define the problem
b. select the primary data collection method
c. determine the sampling method
d. calculate the budget
e. determine the research design
Answer: e
Diff: 2
Type: MC
Page Reference: 97
Topic: Research Process
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Marketing: Real People, Real Choices

Skill: Concept
Objective: 3-3 Steps in the marketing research process
32) Which of the following specifies exactly what information marketers will collect and
what type of study they will do?
a. the research objective
b. the environmental context
c. the sampling method
d. the data collection method
e. the research design
Answer: e
Diff: 1
Type: MC
Page Reference: 98
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
33) Data that has been collected for some other purpose than to answer the question at
hand is called ________.
a. primary data
b. secondary data
c. mined data
d. experimental data
e. ethnographic data
Answer: b
Diff: 1
Type: MC
Page Reference: 98
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
34) LexisNexis and Dialog are two companies that provide ________.
a. primary data
b. secondary data
c. reality mining data
d. causal research designs
e. questionnaire designs
Answer: b
Diff: 2
Type: MC
Page Reference: 98
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Marketing: Real People, Real Choices

Topic: Research Process


Skill: Concept
Objective: 3-3 Steps in the marketing research process
35) Which of the following is information gathered directly from respondents in order to
specifically address a question at hand?
a. ethnographic observations
b. experimental hypotheses
c. primary data
d. secondary data
e. internal data
Answer: c
Diff: 1
Type: MC
Page Reference: 99
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
36) Marketers would be most likely to use ________ to come up with ideas for new
strategies and opportunities or to get a better understanding of a problem they are
currently experiencing with a product.
a. experimental research
b. experiential research
c. exploratory research
d. causal research
e. secondary research
Answer: c
Diff: 2
Type: MC
Page Reference: 99
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
37) Which of the following is most likely to involve in-depth surveying or observation of
a few consumers who fit the profile of the "typical" customer?
a. data mining
b. syndicated research
c. exploratory research
d. causal research
e. descriptive research
Answer: c
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Marketing: Real People, Real Choices

Diff: 2
Type: MC
Page Reference: 99
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
38) Which type of research generates nonnumeric results that provide detailed verbal or
visual information about consumers' attitude?
a. data mining
b. qualitative research
c. quantitative research
d. causal research
e. descriptive research
Answer: b
Diff: 2
Type: MC
Page Reference: 99
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
39) A company utilized ________ when it asked consumers to indicate how they feel
about panty hose.
a. exploratory research
b. causal research
c. case study research
d. ethnography
e. descriptive research
Answer: a
Diff: 2
Type: MC
Page Reference: 99
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
40) Which of the following is true of focus groups?
a. They are typically conducted in mall settings.
b. They are a type of descriptive research.
c. They are a type of one-on-one interview.
d. They are used to gather exploratory data.
e. They do not use a discussion leader.

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Marketing: Real People, Real Choices

Answer: d
Diff: 2
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
41) Firms such as Coca Cola and Disney use online ___________ that often bear
resemblance to the other socisl netwrking sites.
a. focus group
b. case study
c. longitudinal study
d. expert panel
e. ethnographic study
Answer: a
Diff: 1
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
42) Which of the following methods of gathering exploratory data was derived from
anthropology?
a. focus groups
b. one-on-one interviews
c. case studies
d. longitudinal studies
e. ethnography
Answer: e
Diff: 1
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
43) Using ________, some marketing researchers participate in real-life consumer
activities to get an understanding of how consumers actually use products.
a. mechanical observation
b. ethnography
c. focus groups
d. face-to-face interviews
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Marketing: Real People, Real Choices

e. telephone interviews
Answer: b
Diff: 2
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
44) Focus groups have become one of the major marketing research tools for getting
insight into consumer thoughts and feelings. However, a researcher relying solely on
focus groups would likely be most concerned about which of the following?
a. finding a convenience sample
b. generalizing the results to the rest of the population
c. administering the questions
d. orchestrating cooperation among participants
e. generating qualitative data
Answer: b
Diff: 3
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process
45) Once a company has conducted exploratory research and reviewed the resulting data,
its next step is most likely which of the following?
a. conduct descriptive research
b. calculate the representative sample size
c. identify secondary data sources
d. select a primary data collection method
e. conduct qualitative research
Answer: a
Diff: 2
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
46) Descriptive research using a ________ design tracks the responses of the same
sample of respondents over time.
a. latitudinal
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Marketing: Real People, Real Choices

b. cause-and-effect
c. longitudinal
d. cross-sectional
e. hierarchical
Answer: c
Diff: 1
Type: MC
Page Reference: 100
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
47) Marketers use ________ when they want to determine if a change in one thing is
responsible for a change in something else.
a. ethnography
b. predictive techniques
c. descriptive research
d. causal research
e. exploratory research
Answer: d
Diff: 1
Type: MC
Page Reference: 101
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
48) Researchers design ________ to test predicted relationships among variables in a
controlled environment.
a. longitudinal assessments
b. statistical models
c. multidimensional scales
d. experiments
e. perceptual maps
Answer: d
Diff: 1
Type: MC
Page Reference: 101
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
49) Your text describes the two main primary data collection methods as ________.
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Marketing: Real People, Real Choices

a. descriptive and exploratory


b. causal and descriptive
c. survey and observation
d. direct and indirect
e. impersonal and personal
Answer: c
Diff: 2
Type: MC
Page Reference: 102
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
50) Which of the following best explains the goal of mall intercept?
a. using subliminal messages to influence consumer decisions
b. To hold face to face interviews with the mall customers
c. observing and tracking consumer behavior on the Internet
d. designing marketing research experiments using the Internet
e. analyzing data from various sources to answer complex "what if" questions
Answer: b
Diff: 2
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
51) Of the following, which type of data collection method is likely to have the lowest
response rate?
a. mail questionnaire
b. focus group
c. online focus group
d. case study
e. face-to-face interview
Answer: a
Diff: 2
Type: MC
Page Reference: 102
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
52) Which of the following is NOT a survey method for data collection?
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Marketing: Real People, Real Choices

a. online questionnaires
b. mail questionnaires
c. mall intercepts
d. observations
e. face-to-face interviews
Answer: d
Diff: 1
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
53) Which of the following data collection methods is generally the least flexible?
a. telephone interviewing
b. face-to-face interviewing
c. mail questionnaires
d. online questionnaires
e. mall intercepts
Answer: c
Diff: 3
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
54) Which data collection method for marketing research is flexible, allows for
explanation of difficult questions, and lends itself to showing products and other visual
materials?
a. face-to-face interviewing
b. online questionnaires
c. telephone interviewing
d. ethnographic research
e. mail questionnaires
Answer: a
Diff: 2
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process

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Marketing: Real People, Real Choices

55) Which of the following is NOT an advantage of online questionnaires?


a. speed
b. low costs
c. almost instantaneous results
d. control over who respondents are
e. no geographic restrictions
Answer: d
Diff: 2
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
56) Telemarketing has had the greatest impact on which of the following data collection
methods?
a. mail questionnaires
b. online questionnaires
c. mall intercepts
d. telephone interviews
e. face-to-face interviews
Answer: d
Diff: 1
Type: MC
Page Reference: 102
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
57) A questionnaire that asks respondents whether they "strongly agree," "somewhat
agree," "somewhat disagree," or "strongly disagree" is most likely a(n)________.
a. unstructured questionnaire
b. online questionnaire
c. mail questionnaire
d. moderately structured questionnaire
e. completely structured questionnaire
Answer: e
Diff: 3
Type: MC
Page Reference: 102
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
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Marketing: Real People, Real Choices

58) ________ is a type of data collection in which the researcher simply records the
consumer's behaviors.
a. Mall intercept
b. Observation
c. Survey
d. Focus group
e. Neuromarketing
Answer: b
Diff: 1
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
59) Which of the following is a primary data collection method that relies on nonhuman
devices to record consumer behavior?
a. mechanical observation
b. mall intercepts
c. ethnography
d. unobtrusive measurement
e. case studies
Answer: a
Diff: 2
Type: MC
Page Reference: 104
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
60) ________ is less expensive, faster, and more flexible than other methods of data
collection.
a. Mail surveying
b. Telephone surveying
c. The mall intercept
d. The focus group
e. Online data collection
Answer: e
Diff: 2
Type: MC
Page Reference: 104
Topic: Research Process
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Marketing: Real People, Real Choices

Skill: Concept
Objective: 3-3 Steps in the marketing research process
61) Disadvantages of ________ are that hackers can influence research and competitors
can learn about marketing firms' plans.
a. mail surveys
b. telephone surveys
c. mall intercepts
d. focus groups
e. online research
Answer: e
Diff: 2
Type: MC
Page Reference: 106
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
62) ________ are a method for tracking what computer users do at various Web sites and
which sites they visit.
a. Projective techniques
b. People meters
c. Predictive techniques
d. Cookies
e. Search engines
Answer: d
Diff: 1
Type: MC
Page Reference: 105
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
63) Predictive technology used by e-marketers relies on which of the following?
a. sophisticated brain scans revealing consumers' reactions to advertisements and
products
b. collecting data through people meters
c. collecting qualitative information through online questionnaires
d. drawing generalizations from professional respondents
e. tracking the shopping patterns of large numbers of people
Answer: e
Diff: 3
Type: MC
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Marketing: Real People, Real Choices

Page Reference: 105


Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
64) Which of the following groups currently oversees the development and maintenance
of standards to protect the privacy of Internet users?
a. Canadian Marketing Association
b. International Commerce Commission
c. Federal Communications Commission
d. Federal Trade Commission
e. Internet industry
Answer: e
Diff: 3
Type: MC
Page Reference: 106
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
65) ________ is the extent to which research actually measures what it was intended to
measure.
a. Flexibility
b. Validity
c. Responsiveness
d. Reliability
e. Representativeness
Answer: b
Diff: 1
Type: MC
Page Reference: 106
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
66) ________ is the extent to which research measurement techniques are free of errors.
a. Flexibility
b. Validity
c. Responsiveness
d. Reliability
e. Representativeness
Answer: d
Diff: 1
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Marketing: Real People, Real Choices

Type: MC
Page Reference: 107
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
67) Children are difficult subjects for market researchers because they have poor recall
and often do not understand the questions they are asked. This brings into question the
________ of the survey.
a. flexibility
b. sampling
c. responsiveness
d. reliability
e. representativeness
Answer: d
Diff: 2
Type: MC
Page Reference: 107
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
68) ________ is the process of selecting respondents for a survey.
a. Sampling
b. Prospecting
c. Modeling
d. Surveying
e. Representation
Answer: a
Diff: 1
Type: MC
Page Reference: 107
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
69) The two main types of samples used by researchers are ________.
a. reliable and nonreliable
b. probability and nonprobability
c. valid and invalid
d. static and dynamic
e. longitudinal and latitudinal
Answer: b
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Diff: 2
Type: MC
Page Reference: 107-08
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
70) Which of the following is true about a probability sample?
a. The observation method is used to select people who appear most willing to
participate.
b. Convenience is the key determinant of who participates.
c. A researcher uses personal judgment to select participants.
d. Every member of the population is included in the sample.
e. Each member of the population has some known chance of being included in the
sample.
Answer: e
Diff: 2
Type: MC
Page Reference: 108
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
71) A ________ sample is a type of probability sample in which a researcher divides the
population into segments that relate to the study's topic.
a. systematic
b. convenience
c. stratified
d. quota
e. simple random
Answer: c
Diff: 3
Type: MC
Page Reference: 108
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
72) What is a major drawback of probability sampling?
a. It can be time consuming.
b. The sample is proportionate to the population.
c. The most difficult population from which to obtain information is chosen.
d. Everyone has an equal chance of selection.
e. Marketers must rely on the judgment of the researcher in respondent selection.
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Answer: a
Diff: 2
Type: MC
Page Reference: 108
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
73) Which of the following is true about a nonprobability sample?
a. The hierarchical sampling method is used to select people who appear most willing to
participate.
b. Representativeness is the key determinant of who participates.
c. A researcher uses personal judgment to select participants.
d. Every member of the population is included in the sample.
e. Each member of the population has some chance of being included in the sample.
Answer: c
Diff: 3
Type: MC
Page Reference: 108
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
74) A survey questioned men and women to determine how each group felt about low-fat
foods advertising on television. The results from male and female respondents were
examined separately to see if their responses were different. The research results were
analyzed using ________.
a. ethnographic techniques
b. single-source data methods
c. cross-tabulation
d. standard correlation calculations
e. projective techniques
Answer: c
Diff: 3
Type: MC
Page Reference: 110
Topic: Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process
75) In general, a research report will NOT include ________.
a. an executive summary of the report that covers the high points of the total report
b. a description of the research methodology
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c. a discussion of the results of the study, including tabulations, cross-tabulations, and


additional statistical analysis
d. a discussion of limitations of the study
e. a situation analysis
Answer: e
Diff: 3
Type: MC
Page Reference: 110
Topic: Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
76) A cosmetic company asked 293 women who were wearing their StayColor line of
cosmetics to rub their cheeks against their shirts using "the pressure they use when
caressing someone else's face." The company was conducting ________.
a. syndicated research
b. custom research
c. case study research
d. secondary research
e. none of the above
Answer: b
Diff: 3
Type: MC
Page Reference: 93
Topic: Marketing Information System
Skill: Application
Objective: 3-1 Knowledge is power
77) RBC Royal Bank wanted to evaluate the financial value of its substantial personal
customer base to determine which type of customers were the most valuable to the bank.
To do this, the bank looked at revenues and expenses from each of its financial products,
including loans and credit card usage. To identify and then analyze this information, the
bank utilized the MIS analysis technique called ________.
a. data warehousing
b. marketing research
c. probability sampling
d. data mining
e. market basket analyzing
Answer: d
Diff: 2
Type: MC
Page Reference: 95
Topic: Data Mining
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Skill: Application
Objective: 3-2 Data mining
78) Tabak catalog retailer studies about 3,500 variables over the lifetime of a customer's
relationship. Through ________, it has found that customers who change residences are
three times more likely than customers who do not move as frequently to buy tables, fax
machines, and decorative products but are no more likely to buy jewelry or footwear.
a. data mining
b. prospecting
c. sampling
d. latitudinal research
e. customer acquisition
Answer: a
Diff: 2
Type: MC
Page Reference: 95
Topic: Data Mining
Skill: Application
Objective: 3-2 Data mining
79) A catalog retailer studies about 3,500 variables over the lifetime of a customer's
relationship. It has found that customers who change residences are three times more
likely than customers who do not move as frequently to buy tables, fax machines, and
decorative products but are no more likely to buy jewelry or footwear. By using data
analysis to determine which promotion to target to customers who have recently moved,
this catalog retailer has engaged in ________.
a. customer retention
b. customer acquisition
c. customer abandonment
d. customer accrual
e. market basket analysis
Answer: e
Diff: 3
Type: MC
Page Reference: 96
Topic: Data Mining
Skill: Application
Objective: 3-2 Data mining
80) To determine what type of information to add to its Web site in order to attract more
visitors, an Internet company could look at a survey by the AOL/Roper Starch
Cyberstudy, which showed the primary activities Canadians are most likely to engage in
when surfing the Internet. This study is an example of ________.
a. ethnographic data
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b. a secondary data source


c. a primary internal data source
d. data mining
e. a primary external data source
Answer: b
Diff: 2
Type: MC
Page Reference: 98
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
81) Which of the following is NOT an example of a secondary data source for a company
researching whether it should open a casino near St. Louis, Missouri?
a. U.S. Census reports on St. Louis growth patterns
b. a survey commissioned by the company asking St. Louis residents about their
gambling habits
c. the stockholders' report from a casino that currently operates in St. Louis
d. a trade organization report on the tourism industry in Missouri
e. an academic study of the growth of online gambling activities
Answer: b
Diff: 2
Type: MC
Page Reference: 98
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
82) A market research bureau semiannually conducts national surveys of more than
25,000 consumers who complete monthly logs detailing their purchases of products.
Many companies subscribe to the bureau's report publication to learn of the findings of
these surveys. This information can be classified as ________.
a. primary data
b. secondary data
c. mined data
d. experimental data
e. cross-tabulated data
Answer: b
Diff: 2
Type: MC
Page Reference: 98
Topic: Research process
Skill: Application
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Objective: 3-3 Steps in the marketing research process


83) A group of investors wants to bring a minor league baseball team to a community of
100,000 to create hometown spirit and offer a new form of family entertainment. The
group surveyed people in the community to see if they would attend the games, how
frequently they would attend, and whether the location of the proposed baseball stadium
was acceptable. This survey is an example of ________.
a. data mining
b. a secondary internal source
c. longitudinal data
d. a primary data source
e. a secondary external source
Answer: d
Diff: 2
Type: MC
Page Reference: 99
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
84) A city hired a research company to survey spring break vacationers to learn about this
market. One of the questions asked was, "If you were able to hang out on the beach with
any celebrity, who would she or he be?" This type of question is a means for gathering
________.
a. qualitative data
b. ethnographic observations
c. cross-tabulated data
d. quantitative data
e. longitudinal data
Answer: a
Diff: 2
Type: MC
Page Reference: 99
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
85) Six women were invited to participate in a discussion on motels, hotels, and resorts.
A discussion leader first asked them what differentiated motels, hotels, and resort
accommodations. Then she asked them to identify all the amenities they expect to find in
overnight accommodations. These six women and their group leader participated in
a(n)________.
a. mall intercept
b. questionnaire
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c. expert panel
d. case study
e. focus group
Answer: e
Diff: 3
Type: MC
Page Reference: 100
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
86) A company did a comprehensive examination of how pit crews in an auto race work
to quickly get a racecar into the pit area, gas the car, perform other maintenance, and get
the car back on the track. The company wanted to see if it could adapt some of the
teamwork techniques used by pit crews to speed up its order processing. The company
conducted a(n)________.
a. focus group
b. concept test
c. case study
d. worker intercept
e. ethnographic study
Answer: c
Diff: 3
Type: MC
Page Reference: 100
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
87) A trained researcher was paid to visit a home with three preschoolers every day for
two weeks to observe the children's bath time. This is an example of ________
a. a focus group
b. experimental research
c. a case study
d. descriptive research
e. ethnography
Answer: e
Diff: 2
Type: MC
Page Reference: 100
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
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88) During one day researchers counted the number of out-of-state cars parked in an
outlet mall parking lot at 10 a.m. and 4 p.m. The gathering of this quantitative data is an
example of descriptive research using ________.
a. a hierarchical format
b. a cross-sectional design
c. latitudinal tracking
d. a longitudinal design
e. ethnography
Answer: b
Diff: 3
Type: MC
Page Reference: 101
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
89) Every six months, Doug is asked to fill out a survey which asks when he expects to
buy a new vehicle and what type and model he plans to purchase. Doug, along with a
group of consumers with similar buying habits, has been participating in this survey for
the last eight years. The gathering of this quantitative data is an example of descriptive
research using ________.
a. a hierarchical format
b. a cross-sectional design
c. latitudinal tracking
d. a longitudinal design
e. ethnography
Answer: d
Diff: 3
Type: MC
Page Reference: 101
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
90) An independent grocer who wants to know if cocktail and tartar sauce would sell
better if the two products were moved from the salad dressing section of the store to a
display next to the seafood selection would most likely use ________ research.
a. longitudinal
b. exploratory
c. latitudinal
d. ethnographic
e. causal

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Answer: e
Diff: 3
Type: MC
Page Reference: 101
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
91) Prior to setting up its Thanksgiving Turkey Hotline, a company conducted one-onone discussions with a small number of new and experienced cooks to determine what
type of questions it should be prepared to answer. In research terms, this company
conducted ________.
a. focus groups
b. face-to-face interviews
c. ethnographic research
d. unobtrusive measures
e. observational research
Answer: b
Diff: 2
Type: MC
Page Reference: 104
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
92) Barry was sitting on a bench near the center of the shopping mall waiting for his wife
to finish her shopping when he was approached by a woman holding a clipboard and a
dress shirt. She asked if Barry had the time to answer a few questions about the shirt.
After Barry examined the shirt, the woman asked him to assess the quality of the shirt
and to state how much he would be willing to pay for the shirt. Barry participated in
a(n)________.
a. focus group
b. observational interview
c. expert panel
d. experimental interview
e. mall intercept
Answer: e
Diff: 3
Type: MC
Page Reference: 104
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process

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93) A survey about pet ownership used a sample derived from people who visit a Web
site and register. This sample would lack ________ because not everyone has Internet
access.
a. flexibility
b. validity
c. responsiveness
d. reliability
e. representativeness
Answer: e
Diff: 3
Type: MC
Page Reference: 106
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
94) Will has eight puppies. He is concerned his puppies may be infected with parvo, a
disease that is deadly in young dogs unless diagnosed and treated early. The cost of the
test to determine if a dog has parvo is $59. Will cannot afford to have all of his puppies
tested. However, if one dog tests positive, then Will can assume that all the puppies are
infected. If the tested puppy is not infected, then Will can assume that his puppies are
healthy.The veterinarian has suggested that Will reach into the pen where the dogs stay
and pick up the first puppy that walks into his hand. What kind of sampling technique is
the vet suggesting Will use?
a. simple random sampling
b. cluster sampling
c. stratified sampling
d. systematic sampling
e. convenience sampling
Answer: a
Diff: 3
Type: MC
Page Reference: 108
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
95) A daycare center operator wanted to survey her parents to determine if they were
interested in the center providing once-a-month Saturday night care for their children.
Rather than survey all 254 parents, the operator took the list of parents' names and,
starting with the third parent's name, surveyed every twelfth parent. What type of
sampling did the daycare operator use?
a. simple random sampling
b. convenience sampling
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c. stratified sampling
d. systematic sampling
e. non-probability sampling
Answer: d
Diff: 2
Type: MC
Page Reference: 108
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
96) When Gap, Inc. was developing the concept for its chain of Old Navy stores, the
company gave employees who fit the desired Old Navy customer profile $200 apiece.
They set them loose on a shopping spree, and then interviewed them about what they had
bought so these products would be on the Old Navy shelves when the stores opened. Gap,
Inc. utilized what format of participant sampling?
a. probability sampling
b. systematic sampling
c. stratified sampling
d. nonprobability sampling
e. simple random sampling
Answer: d
Diff: 2
Type: MC
Page Reference: 108
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
97) As part of her summer job, Martina was instructed to collect data from ten people to
determine how they felt about a number of political issues, including socialized medicine,
food stamps, and educational vouchers. She asked her father, grandfather, mother,
brother, two uncles, and four sorority sisters to answer the survey questions. Marina used
a ________ sample.
a. probability
b. convenience
c. stratified
d. systematic
e. simple random
Answer: b
Diff: 2
Type: MC
Page Reference: 108
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Topic: Research process


Skill: Application
Objective: 3-3 Steps in the marketing research process
98) Whether a sample can be categorized as a probability sample or a nonprobability
sample depends on the ________ of the sample.
a. validity
b. responsiveness
c. representativeness
d. flexibility
e. reliability
Answer: c
Diff: 3
Type: MC
Page Reference: 107
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
99) A sign at a Tokyo hotel once read, "You are invited to take advantage of the
chambermaid," and a dry cleaner in Majorca urged passing customers to "drop your pants
here for best results." These are examples of ________ in global markets that
international market researchers must consider.
a. technological barriers
b. cultural differences
c. local customs
d. ethnocentric positions
e. language barriers
Answer: e
Diff: 2
Type: MC
Page Reference: 109
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
100) A sports entertainment company wants to research how Canadians spend their free
time. It is preparing a survey that will be used in all of Canada, including the province of
Quebec. Unlike Canadians from other provinces, the people of Quebec primarily speak
French. The researchers are planning to use English and French versions of the survey. In
preparing the surveys, they should use ________.
a. back translation
b. nonprobability sampling
c. probability sampling
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d. syndicated research
e. cross-tabulation
Answer: a
Diff: 3
Type: MC
Page Reference: 109
Topic: Research process
Skill: Application
Objective: 3-3 Steps in the marketing research process
101) An intranet is an external corporate communication network that uses Internet
technology to facilitate interaction among company employees, customers, and potential
customers.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
102) The marketing intelligence system uses corporate espionage to gather information
about competitors.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
103) Companies should continuously collect marketing intelligence data.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 92
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Topic: Marketing Information system


Skill: Concept
Objective: 3-1 Knowledge is power
104) MIS stands for Marketing Internet Systems
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 90
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
105) A company that uses data mining is unlikely to need a data warehouse, as the
company's data is constantly in use.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
106) Data mining can be used to identify customers who are not profitable and who
should be abandoned.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
107) It is just as expensive for a company to retain good customers as it is to acquire
customers.
a. True
b. False
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Answer: b
Diff: 2
Type: TF
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
108) Research design falls into the two broad categories of secondary research and
primary research.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 98
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
109) A syndicated research report is an example of a secondary data source.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 98
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
110) Exploratory research is typically large scale and more expensive than other research
techniques.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 99
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
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111) The focus group format can be used online.


a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 100
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
112) Descriptive research is typically expressed in qualitative terms.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 101
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
113) Cross-sectional design involves the systematic collection of responses to a consumer
survey instrument from one or more samples of respondents at one point in time.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 101
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
114) A causal research design tracks the responses of the same sample of respondents
over time.
a. True
b. False
Answer: b
Diff: 2
Type: TF
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Page Reference: 101


Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
115) Researchers carefully design experiments with independent and dependent variables
to test predicted relationships among those variables.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 101
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
116) Mail questionnaires give researchers full flexibility in the types of questions they
can ask as well as full control over the circumstances under which the respondents
answer the questions.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 102
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
117) Mall-intercept studies are a commonly used type of face-to-face interview.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 104
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process

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118) When researchers suspect that research subjects will alter their behavior if they
know someone is watching, the researchers are likely to use unobtrusive observational
methods.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 104
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
119) Representativeness is a problem when the researchers cannot be sure the consumer
population they are studying even understands the questions.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 107
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
120) The most basic type of nonprobability sampling is a simple random sample.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 108
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
121) Decision makers within a company would be more likely to use an MIS than an
MDSS to forecast the results of maintaining the company's prices while competitors
reduce their prices.
a. True
b. False
Answer: b
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Diff: 3
Type: TF
Page Reference: 94
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
122) Sora is a teenager who loves to shop for clothes. She has a points card from Trend
Town, her favorite shop. Sora's card is scanned each time she makes a purchase at Trend
Town, and the more she uses the card, the more special offers she receives from the shop.
Managers at Trend Town are likely to use information from Sora's shopping for the
purpose of customer acquisition.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 95
Topic: Data Mining
Skill: Application
Objective: 3-2 Data mining
123) After conducting formal marketing research for your department, you summarize the
data in an oral presentation to management. You are following normal marketing research
steps.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 97
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
124) A researcher investigating the amount of food waste in the typical four-person
family plans to sift through the garbage of a small sample of representative families. This
method is an example of an unobtrusive survey.
a. True
b. False
Answer: b
Diff: 3
Type: TF
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Page Reference: 104


Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
125) ABC Interior Designs wants to collect research data through their checkout
scanners. This is an example of mechanical observation.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 104
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
126) Discuss the makeup and functions of a marketing information system (MIS).
Answer:
A typical MIS includes three important components: data, computer hardware and
software, and output for marketing decision makers. The different types of data that feed
into an MIS are internal company data, marketing intelligence, marketing research, and
acquired databases. This data is processed by the MIS software, and then MIS analysts
use the output to generate reports for various decision makers.
Diff: 2
Type: ES
Page Reference: 92
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
127) The Chair Trade is an independent furniture store that specializes in selling Amishstyle furniture and household items. Until the first of the year, its overall sales revenue
was slowly increasing. Since the first of the year, however, sales of small items increased
while sales of furniture decreased, leading to declining sales revenue. How could the
owner of the store rely on marketing intelligence to understand the change in consumer
buying behavior? Should the owner rely solely on marketing intelligence? Why or why
not?
Answer:
A marketing intelligence system is a method by which marketers get information about
everyday happenings in the marketing environment relevant to their business. The owner
of the store could compile observations about the marketplace, read industry trade
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publications, review competitors' Web sites, and even hire "mystery shoppers" to gather
information on the customer experience. However, marketing intelligence is just the
beginning. An effective MIS must include procedures to ensure that the intelligence data
are translated and combined with internal data and other marketing information to create
a useful report for owner.
Diff: 3
Type: ES
Page Reference: 92
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
128) How does a marketing decision support system (MDSS) differ from a marketing
information system (MIS)? Why might a marketer want to use an MDSS in addition to an
MIS?
Answer:
A marketing decision support system (MDSS) includes analysis and interactive software
that allows marketing managers to access MIS data and conduct their own analyses. The
statistical and modeling software of an MDSS allows marketers to examine complex
relationships among factors in the marketplace and to generate answers to "what-if"
questions about those relationships. MDSS is an enhancement to the MIS that makes it
easy for marketing managers, rather than just MIS analysts, to access the MIS system and
find answers to their questions.
Diff: 2
Type: ES
Page Reference: 94
Topic: Marketing Information system
Skill: Concept
Objective: 3-1 Knowledge is power
129) Theresa Fielding owns an Internet company that sells gift baskets. Each customer
can pick out what she wants in the basket to make it a personalized gift. Theresa has
demographic information about buyers stored in the company database. The database also
has the address of each basket recipient, when each basket was sent, the contents of each
basket, and whether it was sent for a special occasion. How could Theresa use this
database?
Answer:
Theresa has an opportunity to engage in a small-business version of data mining. She
could use a data mining program to identify unique patterns of behavior among her
different customer groups. Identifying and understanding the habits of her current
customers will help Theresa with customer acquisition, or attracting new customers. Data
mining could help Theresa increase customer retention and loyalty by identifying the
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most important customers and then targeting them with special offers and inducements to
buy more. Theresa could also use data mining for market basket analysis, using the
records of customers who have bought certain products to develop promotional strategies.
Finally, Theresa could use data mining to identify unprofitable customers who should be
abandoned.
Diff: 3
Type: ES
Page Reference: 95
Topic: Data Mining
Skill: Application
Objective: 3-2 Data mining
130) Describe the basic marketing research process.
Answer:
The marketing research process involves seven steps: defining the research problem,
determining the research design, choosing the method to collect primary data, designing
the sample, collecting the data, analyzing and interpreting the data, and preparing the
research report. First, it must be clear what information management needs, or what
problem they need to solve. The research design may rely on secondary research or
primary research. The three types of primary research are exploratory, descriptive, and
causal. Next, the method for collecting the primary data must be selected. Researchers
can use different types of surveys or observation to collect the data that is required.
Before data collection can begin, decisions about the design of the sample must be made.
Researchers can use probability or nonprobability sampling. The next step is actually
collecting the data as planned, which is followed by analyzing the data and then
interpreting it in a research report.
Diff: 3
Type: ES
Page Reference: 97
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
131) A catalog retailer specializes in ceramic figures, paintings, books, and other
decorative items related to endangered animals. The company is considering donating 10
percent of its net profit to the World Wildlife Foundation (WWF). This idea may attract
more customers who like the idea of a portion of their money supporting this charity that
works to save species. Provide several examples of primary and secondary data that the
retailer can use in its marketing research.
Answer:
Students' answers to this question will vary. Primary data could come from a customer
survey about the WWF and its mission or from a series of focus groups asking current
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customers how they might respond to the proposed relationship between the catalog and
the World Wildlife Foundation. Secondary data could come from looking at reports on
other companies engaged in similar promotions as well as internal sales records.
Secondary data could also include published information on the WWF and its
membership.
Diff: 3
Type: ES
Page Reference: 98-99
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
132) Compare and contrast the structure and uses of exploratory research and descriptive
research.
Answer:
Exploratory research can be used to generate ideas for future strategies or just to get a
better handle on a problem a firm is experiencing with a product. These studies are
usually small in scale and less costly than other research techniques. Exploratory research
typically is qualitative, meaning that the results of the research project tend to be
nonnumeric. The results might be verbal or visual information about consumers' attitudes,
feelings, and buying behavior in the form of words rather than numbers. Descriptive
research often follows exploratory research. Descriptive research is much more
systematic, probing into a specific marketing problem and basing its conclusions on a
much larger sample of participants. Descriptive research is quantitative, meaning that
results are expressed in numerical terms such as averages, percentages, or other statistics
summarizing results from a large set of measurements.
Diff: 3
Type: ES
Page Reference: 99-100
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
133) Discuss the advantages/benefits of each of the data collection methods.
Answer:
The main data collection methods are mail questionnaires, telephone interviews, face-toface interviews, and online questionnaires. Mail questionnaires can be used to collect
information at a low cost per respondent. Respondents may give more honest answers to
more questions in this format than to an unknown interviewer in person or on the phone.
Telephone interviewing is one of the best methods for gathering information quickly and
it provides great flexibility. Telephone interviewing is also less expensive than face-toface interviewing. Face-to-face interviews are flexible and allow interviewers to help
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respondents understand difficult questions. Visual aids can be used, products can be
demonstrated, and reactions and behaviors can be observed. Online questionnaires allow
the interviewee to be more honest, the costs are greatly reduced, there is no interviewer
bias, and reports come back faster.
Diff: 3
Type: ES
Page Reference: 102-105
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
134) Explain the three factors that typically influence the quality of research results and
discuss how researchers can ensure the quality of their data.
Answer:
The three factors that typically influence the quality of research results are validity,
reliability, and representativeness. Validity is the extent to which the research actually
measures what it was intended to measure. To make sure that they gather valid data,
researchers should carefully analyze the construction of surveys and experiments. The
second factor is reliability, which is the extent to which the research measurement
techniques are free of errors. Researchers can maximize reliability by carefully training
interviewers and by using several different ways to ask the same question or using several
analysts to interpret the responses. The third factor is representativeness, which is the
extent to which consumers in the study are similar to the larger population in which the
organization is interested. Researchers should carefully design the sample to ensure
representativeness.
Diff: 3
Type: ES
Page Reference: 106-107
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
135) Explain the common problems that international marketing researchers encounter.
Answer:
International researchers deal with less homogeneous markets in and among countries.
The markets often vary greatly in their levels of economic development, their cultures
and customers, and their market conditions. In many developing countries, infrastructure
is an impediment to executing phone, mail, and online surveys. Choosing an appropriate
data collection method can be difficult. Cultural and language differences can present
obstacles in interpreting the data and drawing realistic conclusions. Also, low literacy
rates may interfere with survey results.

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Diff: 3
Type: ES
Page Reference: 109
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
136) What is a company's internal data? Give two examples of internal data.
Answer:
Internal company data is information that comes from within the company. This includes
a firm's internal records of sales and information such as which customers buy which
products in what quantities and at what intervals, what items are in stock, which items are
back-ordered because they are out of stock, when items were shipped to the customer,
and what items have been returned because they are defective.
Diff: 2
Type: ES
Page Reference: 91
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
137) Explain the advantages of an intranet to a company.
Answer:
An intranet is an internal corporate communication network that uses Internet technology
to link company departments, employees, and databases. Having access to an intranet
allows salespeople and sales managers in the field to access company records and to
directly enter their reports into the system. Marketing managers in the home office can
use an intranet to get daily or weekly sales data by brand or product line.
Diff: 2
Type: ES
Page Reference: 92
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
138) Compare and contrast syndicated research with custom research.
Answer:
Syndicated research is general information collected by firms on a regular basis to be sold
to other firms. Custom research is information collected for a single firm to provide
answers to that firm's specific questions.

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Diff: 2
Type: ES
Page Reference: 93
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
139) Economic and demographic data compiled by the Statistics Canada is available at
little or no cost. In the terms of a marketing information system, what type of data is this?
Answer:
This is secondary research from an acquired database.
Diff: 2
Type: ES
Page Reference: 93
Topic: Marketing Information system
Skill: Application
Objective: 3-1 Knowledge is power
140) What is the purpose of data mining?
Answer:
Researchers rely on data mining to help them use information in extremely large
databases to identify unique patterns of behavior among different customer groups.
Diff: 2
Type: ES
Page Reference: 95
Topic: Data Mining
Skill: Concept
Objective: 3-2 Data mining
141) A gambling casino gives its high-spending players free rooms in its hotels along
with free meals and tickets to the entertainment shows at the casino. What application of
data mining is the casino using?
Answer:
The casino is using data mining for customer retention and loyalty. The firm can identify
big-spending customers and then target them for special offers and inducements other
customers will not receive.
Diff: 2
Type: ES
Page Reference: 96
Topic: Data Mining
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Skill: Concept
Objective: 3-2 Data mining
142) In the marketing research process, it is essential for marketers to define the research
problem. What does this mean?
Answer:
The word problem doesn't necessarily mean that something is wrong. Rather, it refers to
the overall questions for which the firm needs answers. In other words, marketers must
clearly define what questions they need to have answered through research.
Diff: 2
Type: ES
Page Reference: 97
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
143) What is the difference in the qualitative versus quantitative approach to research?
Answer:
In the qualitative approach, the results of the research project tend to be nonnumeric. The
results might be verbal or visual information about consumers' attitudes, feelings, and
buying behavior in the form of words rather than in numbers. In the quantitative
approach, results are typically expressed in numerical terms of averages, percentages, or
other statistics summarizing results from a large set of measurements.
Diff: 2
Type: ES
Page Reference: 99-100
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
144) Explain the roles of independent and dependent variables in causal research.
Answer:
Independent variables cause some change in dependent variables. Researchers test the
relationship between these variables in causal research.
Diff: 3
Type: ES
Page Reference: 101
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
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145) Why might a researcher decide to use causal research rather than descriptive
research?
Answer:
Descriptive research techniques provide valuable information about what is happening in
the marketplace but do not address why something may or may not be happening. Causal
research attempts to understand why something is happening. Marketers use causal
research techniques when they want to know if a change in something is responsible for a
change in something else.
Diff: 3
Type: ES
Page Reference: 101
Topic: Marketing Research Process
Skill: Concept
Objective: 3-3 Steps in the marketing research process
146) A manager in a grocery store decides to place packages of pound cake in two
different locations in the store. One display of the cake also includes other bakery items.
The second display of the cake is in the vegetable section of the store, placed next to the
shelf full of boxes of fresh strawberries. The grocery store manager wants to learn which
of the two locations will most encourage customers to buy the cake. What format of
research is the store manager conducting? Explain your answer.
Answer:
The store manager is conducting an experiment. Experiments are carefully designed to
test predicted relationships among variables in a controlled environment. The store could
be considered a controlled environment, and the experiment is to see which location will
cause more sales of the cakes.
Diff: 2
Type: ES
Page Reference: 101
Topic: Marketing Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process
147) An advertising agency's research division sends researchers into homes with
handheld video cameras to get pictures of how and why people use products. What
method of research is this advertising agency implementing? Explain your answer.
Answer:
The advertising agency is implementing the observation method. Specifically, the
personal observation method is being implemented. This method is used when consumers
are watched to understand how they react to marketing activities.
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Diff: 2
Type: ES
Page Reference: 104
Topic: Marketing Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process
148) The owner of a successful independent book store has been thinking lately that she
either needs to find a new location or expand this one as she stumbles over boxes of
books in the cramped space. What type of research design should she use to determine
how her customers feel about the current store? Why?
Answer:
This would be an opportunity to use exploratory research. The store owner is trying to
come up with a new strategy, and the type of qualitative feedback offered by exploratory
research would likely be most helpful. She needs to know about her customers' attitudes
and feelings, something more easily discovered through exploratory research than
descriptive or causal research.
Diff: 2
Type: ES
Page Reference: 99
Topic: Marketing Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process
149) Two brothers own a hair salon. One believes they could have more business if they
mailed out $5-off coupons to people living within a five-mile radius of the shop. The
other brother wants to run an ad in the local shopping newspaper with a coupon for a free
hot oil treatment. (The newspaper goes to everyone in the area.) What type of marketing
research can they use to determine whose idea would be more profitable? Explain your
answer.
Answer:
Causal research could be used to understand cause-and-effect relationships. Both methods
should be tried as experiments, and then the results compared to determine which idea
would be the most profitable.
Diff: 2
Type: ES
Page Reference: 101
Topic: Marketing Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process

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150) Why would marketing researchers use convenience samples?


Answer:
A convenience sample is a non probability sample, meaning that the sample is not
representative of the population. Sometimes a company merely wants to know it is on the
right track and the expense of a major study using a probability sample is unnecessary.
Diff: 2
Type: ES
Page Reference: 108
Topic: Marketing Research Process
Skill: Application
Objective: 3-3 Steps in the marketing research process

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