Chapter 6 Global Information Systems and Market Research: Global Marketing, 10e (Green/Keegan)

Global Marketing, 10e (Green/Keegan)
Chapter 6 Global Information Systems and Market Research
1) The reasons why a majority of recording artists are struggling to adapt to the new music
economy include all of the following except:
A) musicians can interact with fans via social networks.
B) artists do not see significant financial returns even after a song is streamed millions of times.
C) the majority of recording artists do not come close to achieving the same level of global
success as Swift, Adele, Cardi B, Ed Sheeran, or Jay-Z.
D) to supplement their incomes, many artists have opted to tour constantly, hoping to generate
income from ticket and merchandise sales.
E) the music industry has embraced information science and big data.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 6.1: Discuss the roles of information technology, management information
systems, and big data in a global company's decision-making processes.
AACSB: Application of knowledge
2) The music industry's use of big data shows how information about buyer behavior and the
overall business environment is vital to effective managerial decision making. All of the factors
listed below facilitate decision making for music industry except:
A) musicians can interact with fans via social networks.
B) big data allows record executives and band managers to find patterns and discern market
trends.
C) big data allows executives to see what factors "move the needle" across a variety of metrics.
D) data analytics permit record company executives to overlay information about an artist's
appearance on a TV show.
E) big data helps in increasing revenues from paid downloads.
Answer: E
3) One of the key features of an EDI (Electronic Data Interchange) system is:
A) it allows easy access to all company data to vendors.
B) its transaction formats are universal.
C) it allows third-party transmission connections to company data.
D) it saves both time and money by using different languages.
E) vendors receive orders by voice mail.
Answer: B
Difficulty: 1: Easy
4) An ________ system allows a company's business units to submit orders, issue invoices, and
conduct business electronically with other company units as well as outside companies.
A) Internet
B) intranet
C) ECR
D) EDI
E) EPOS
Answer: D
5) An ________ is a company's private data network, accessible only by authorized persons

inside the organization.
A) EDI
B) Internet
C) intranet
D) EPOS
E) ECR
Answer: C
6) Which of the following is an IT tool designed specifically to help retailers work more closely
with vendors on stock replenishment?
A) BOLD
B) ECR
C) data warehouse
D) projection
E) EDI
Answer: B
7) Which of the following can be defined as a business philosophy that values two-way
communication between a company and individual customers?
A) ECR
B) CRM
C) EDI
D) EPOS
E) BOLD
Answer: B
8) CRM tools allow companies such as Credit Suisse, AT&T, Hewlett-Packard and others to
determine:
A) warranty of products sold to consumers.
B) amount paid by consumers in different countries.
C) which customers are most valuable.
D) the use of credit cards for payment.
E) the use of laptop computers by customers.
Answer: C
9) One challenge of using CRM is:

A) integrating data into customer relationships.
B) knowing amount paid by consumers in different countries.
C) understanding which customers are most valuable.
D) assessing the use of credit cards for payment.
E) knowing the use of laptop computers by customers.
Answer: A
10) Direct sensory perception provides a vital background for the information that comes from
human and documentary sources since:
A) it provides secondhand information.
B) it is easy and the most economical way of collecting data.
C) it means firsthand seeing, feeling, hearing, smelling, and tasting.
D) it involves reading and reviewing documents.
E) top executives are involved in getting firsthand information.
Answer: C
Difficulty: 3: Challenging
11) CRM tools do not help companies in determining:

A) warranty of products sold to consumers.
B) amount paid by consumers in different countries.
C) which customers are very demanding.
D) the use of credit cards for payment.
E) the use of laptop computers by customers.
Answer: C
12) Using big data analytics, Netflix knows that twenty-something males have viewing habits
that many people would associate with 70-year-old females, and vice versa.
Answer: TRUE
Difficulty: 1: Easy
13) Gathering data is an end in itself.

Answer: FALSE
Difficulty: 1: Easy
14) By combining household information with weekly purchase behavior data, Tesco is able to
tailor promotions to specific customer segments.
Answer: TRUE
15) EDI links with vendors to enable retailers to improve inventory management and restock hot-
selling products in a timely, cost-effective manner.
Answer: TRUE
16) To prevent the most value-conscious shoppers from defecting to Walmart, Tesco mined its
database to identify Clubcard users who buy the lowest-priced grocery items.
Answer: TRUE
17) CRM tools allow companies like American Express, Dell, Sharp, and Sony to determine
which customers are most valuable and to react in a timely manner with customized products and
service offerings that closely match customer needs.
Answer: TRUE
18) Retailers are increasingly using a technique known as efficient consumer response (ECR) in
an effort to work more closely with vendors on stock replenishment.
Answer: TRUE
19) A "touchpoint" provides important data about consumers.

Answer: TRUE
20) Big data can be used in collecting information about buyer behavior and the overall business
environment, which is vital in making effective managerial decisions. Giving reasons illustrate
how this can be accomplished.
Answer: When researching a market, seeking a solution to any problem, or trying to answer key
questions, marketers must know where to go to obtain information. They must also know what
subject areas to investigate and what information to look for, the different ways to acquire
information, and the various types of analyses that will yield important insights and
understanding. With the availability of big data, marketers have a well of market information
available via information technology, such as the Internet. A few keystrokes can yield literally
hundreds of articles, research findings, and Web sites that offer a wealth of information about
marketing-related issues. Even so, marketers must do their homework if they are to make the
most of modern information technology. First, they need to understand the importance of
information technology and marketing information systems as strategic assets. Second, they
should have a general understanding of the formal market research process. Finally, they should
know how to manage the marketing information collection system and the marketing research
effort.
AACSB: Reflective thinking
21) Global competition intensifies the need for effective MIS and business intelligence that are
accessible throughout the company. How can IT provide valuable tools in fulfilling this need as
well as conducting global marketing research?
Answer: There are different IT programs that can provide valuable tools for marketing. EDI
(Electronic data interchange) links with vendors to enable retailers to improve inventory
management and restock popular products in a timely, cost-effective manner. Also, effective
consumer response (ECR) is another program which allows management to work more closely
with vendors on stock replenishment. ECR systems utilize electronic point of sale (EPOS) data
gathered by checkout scanners that help retailers identify product sales patterns as well as record
consumer preferences separated by geographical areas. All these tools are also helpful in
improving the ability of businesses to target consumers and increase loyalty. Customer
relationship management (CRM) is another method by which a relationship is developed with
the customer. It helps in determining which customers are most valuable and to react in a timely
manner with customized product and service offerings that closely match customer needs. It also
makes employees more productive and enhances corporate profitability. It also benefits
customers by providing value-added products and services. Data warehouses store a company's
CRM system as well as other IT systems. These data warehouses can provide multiple uses such
as helping retailers with multiple store locations fine-tune their product assortments. In addition
to the Internet, an intranet can be a valuable tool, which can connect individuals within a
company on a private basis.
22) Direct perception can be important when a global player dominates a company's domestic
market.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 6.2: Describe the various sources of market information, including direct
perception.
23) Although environmental scanning is a vital source of information, research has shown that
headquarters executives of global companies obtain as much as two-thirds of the information
they need from:
A) government publications.
B) professional publications.
C) trade publications.
D) census data.
E) personal sources.
Answer: E
perception.
24) Which of the following environmental factors may require marketers to adjust their approach
to conducting international as opposed to domestic marketing research?
A) Researchers must be prepared for new parameters of doing business.
B) Company personnel must come to grips with a new set of culture-based assumptions about
conducting business.
C) Research may help reduce psychological overload.
D) Researchers may have to broaden the definition of competitors to include competitive
pressures not present in the domestic market.
E) All of the above
Answer: E
perception.
25) All of the following represent keys to success of Tesco's Clubcard except:
A) Tesco's Clubcard is a loyalty program that the U.K.-based grocery store chain uses to reward
customers; shoppers receive points based on purchase amounts.
B) for every 100 points accumulated, shoppers receive a £1 voucher that can be redeemed for
future grocery purchases or used with airline frequent-flyer programs.
C) traditional shoppers who buy ingredients to prepare home-cooked meals gravitated toward
"Tesco's Finest" label.
D) by combining household information with weekly purchase behavior data, obtained by the
Clubcard, Tesco is able to tailor promotions to specific customer segments.
E) Clubcard gives Tesco a tactical advantage over Walmart's Asda stores.
Answer: C
perception.
26) Direct sensory perception provides a vital background for the information that comes from
human and documentary sources.
Answer: TRUE
perception.
27) A Safe Harbor agreement establishes principles for privacy protection.

Answer: TRUE
perception.
28) Market research is the project-specific, systematic gathering of data and is the activity that
links the consumer, customer, and public to the marketer through information.
Answer: TRUE
perception.
29) Africa represents a huge untapped market for shoes since most people walk barefoot. Thus, it
will be easy to alter entrenched consumer behavior patterns if shoes are available.
Answer: FALSE
perception.
30) What are the secondary sources of data and how do these sources differ from primary
sources? Give examples of sources from which secondary data can be obtained.
Answer: A low-cost approach to market research and data collection begins with desk research.
There are a lot of secondary sources which are a good place to start. Data from census bureaus;
government and private agencies; trade associations; chamber of commerce; published reports;
academic institutions; and public libraries are not only extensive but can provide valuable
information in a very cost-effective manner. All of these are considered as secondary sources
since the data already exist and is not based on the research conducted by the company. Data
obtained by conducting research by the company is considered as a primary source. This may
also include the company's unpublished reports and other financial data. Other secondary sources
include the U.S. Government's National Trade Data Base (NTDB), an online resource from the
Department of Commerce. Similarly, there are other data which are published by almost all of
the federal government agencies. Most countries compile data related to the gross national
product (GNP), gross domestic product (GDP), consumption, investment, government
expenditures, price levels, and import/export expenditures. Demographic data are available from
the United Nations' agencies as well as other international agencies. The Statistical Yearbook of
the United Nations contains global data on agriculture, mining, manufacturing, construction,
energy production consumption, internal and external trade, health, housing, education and lots
of other services. Similar data are collected by the U.S. Central intelligence Agency which
publishes the World Fact book. Other sources are the World Bank and the International
Monetary Fund. The Economist and Financial Times regularly compile comprehensive surveys
of regional and country markets and include them in their publications. Data from many of these
sources are generally available in both print and electronic forms. There are also different
country Web sites which also provide some useful information. Syndicated studies published by
private research companies are another source of secondary data and information.
perception.
AACSB: Analytical thinking
31) The first step in formulating and conducting research is to:

A) define the problem.
B) collect information.
C) select unit of analysis.
D) examine data availability.
E) design research.
Answer: B
Chapter LO: 6.3: Identify the individual steps in the traditional market research process and
explain some of the ways global marketers adapt them.
32) When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls would
find the doll's design just as appealing as American girls did. This may be due to:
A) Barbie's physical features such as long legs and blonde hair.
B) Barbie being a symbol of American lifestyle.
C) the SRC tendency on the part of American managers.
D) the SRC tendency on the part of Japanese consumers.
E) the limited competition for dolls in Japan.
Answer: C
33) Marketer's should be aware of the impact of self-reference criterion (SRC) and other cross-
cultural assumptions. The advantages of such awareness include all of the following except:
A) it can enhance management's willingness to conduct market research.
B) it can enhance management's receptiveness to research findings.
C) it can help marketer's contradict "tried-and-true" marketing experience in other markets.
D) it can ensure that the research effort is designed without any bias.
E) it can ensure that the research effort is not affected by home-country findings.
Answer: A
34) Anyone undertaking a market research project should understand that the first step is:
A) setting the budget.
B) determining the methodology to use.
C) deciding who will see the final report.
D) defining the problem.
E) determining information requirements.
Answer: E
35) For consumer products, qualitative research is especially well suited to:
A) get close to the consumer.
B) describe the cultural context of consumer behavior.
C) identify core brand equity.
D) identify what people really feel.
E) all of the above
Answer: E
36) For research, the unit of analysis can be a single country or region; however, for all market-
entry decisions, ________ data are not required.
A) specific city
B) statewide
C) provincial
D) districtwide
E) countrywide
Answer: E
Difficulty: 1: Easy
37) The U.S. government's most comprehensive source of world trade data is:
A) National Trade Data Base (NTDB).
B) Census Bureau.
C) Bureau of Economic Analysis.
D) Eurostat.
E) Gross Domestic Product (GDP).
Answer: A
Difficulty: 1: Easy
38) Problems faced by small markets around the world in collecting research data can be
overcome by all of the following ways except:
A) devise inexpensive research techniques and methods.
B) estimate demand by using the economic and demographic relationships.
C) use inexpensive survey research sacrificing statistical rigor.
D) get information from selected individuals who may be familiar with demographics.
E) use methods sacrificing elegance in order to minimize expenses.
Answer: D
39) Potential markets can be subdivided into:

A) latent and parallel markets.
B) existing and incipient markets.
C) latent and incipient markets.
D) existing and latent markets.
E) incipient and existing markets.
Answer: C
40) Marketers must be aware of the impact of SRC and other cultural assumptions since:
A) it can have several positive effects on market planning.
B) it enhances management's willingness to pursue market research.
C) it can help ensure that the research effort is designed with minimal home-country bias.
D) it can help ensure that the research effort is designed with minimal second-country bias.
E) All of the above are correct.
Answer: E
41) Which of the following is an inaccurate description of secondary data use in global markets?
A) It was not gathered specifically for the research project at hand.
B) It is often so expensive that small companies cannot afford to access it.
C) It can be accessed quickly.
D) A great deal is available from government agencies.
E) It cannot be retrieved online.
Answer: B
42) According to Peter Drucker, Japanese companies are the leading sellers of fax machines
because their understanding of the market was based on survey research.
Answer: FALSE
43) Which of the following correctly reflects marketing expert David Arnold's recommendations
for companies engaged in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) all of the above
Answer: E
44) Which of the following is not recommended by expert David Arnold for companies engaged
in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) assess a particular market in isolation
Answer: E
45) For consumer products, qualitative research is especially well suited to accomplish all of the
following tasks except:
A) provide consumer understanding.
B) describe the social and cultural context of consumer behavior.
C) identify core brand equity and brands.
D) assess consumer spending trends.
E) determine what consumers really feel.
Answer: D
46) The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was
based on their study of a(n) ________ market.
A) existing
B) latent
C) parallel
D) incipient
E) global
Answer: A
47) In 1998, U.K.-based retailer Marks & Spencer closed its office in Shanghai and tabled plans
to commence operations there. After 3 years of research, they concluded that the timing is not
right. The majority of their customers are from middle-income groups. Within a decade,
however, China's emerging middle class represented an attractive opportunity. Marks & Spencer
opened its first store in Shanghai in 2008; by 2017, there were 10 stores. However, when its sales
stalled, the company pulled out of China for the second time. Part of the problem: low brand
awareness, plus the fact that many Chinese shoppers preferred "fast-fashion" brands such as Zara
and H&M. China was considered as a(n)________ market in both instances.
A) latent
B) incipient
C) cluster
D) existing
E) primary
Answer: B
48) Predicting economic and income growth rates is particularly important when researching
which type of market?
A) existing markets
B) latent markets
C) parallel markets
D) incipient markets
E) local markets
Answer: D
49) When a survey questionnaire in English is translated into Korean for use in South Korea and
then translated into English, it is described as:
A) incipient translation.
B) comparative translation.
C) native translation.
D) parallel translation.
E) back-translation.
Answer: E
50) Tools that can be used for collecting primary data include:
A) survey research and interviews.
B) consumer panels and observation.
C) focus groups and survey research.
D) interviews and observation.
E) all of the above
Answer: E
51) When a trained person is recording items selected in a grocery cart or basket, the research
method is known as:
A) observation.
B) survey research.
C) focus study.
D) secondary data collection.
E) personal interviews.
Answer: A
52) Emerging markets present a number of challenges to anyone conducting market research,
which includes all of the following except:
A) underdeveloped technology infrastructure.
B) geographic issues.
C) data-gathering methodologies.
D) privacy issues.
E) lack of field teams.
Answer: E
53) A marketer of breakfast cereals might send researchers to preselected households at 6 A.M.
to watch families go about their morning routines. The client could also assign a researcher to
accompany family members to the grocery store to record their behavior under actual shopping
conditions. This type of research method is considered as:
A) focus group.
B) invasion of privacy.
C) consumer panel study.
D) factor analysis.
E) observation.
Answer: E
54) When the Coca-Cola Company used the "micro-dosing technology" that allows for 170
possible drink combinations, the user data generated by the units helped in developing a new
flavor: Cherry Sprite. This is an example of collecting ________ data.
A) primary
B) secondary
C) incipient
D) quantitative
E) MIS
Answer: A
55) To gain insights for product and package design improvements, Procter & Gamble sent video
crews into 80 households in the United Kingdom, Italy, Germany, and China. P&G's ultimate
goal was to amass an in-house video library database. This type of technique is known as:
A) scaling technique.
B) qualitative technique.
C) projective technique.
D) reactivity technique.
E) MDS technique.
Answer: C
56) In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a

group of teenagers and a trained moderator facilitated discussion asking questions related to
brand's image, advertisement, social trends, TV watching habits, and snack usage. This type of
research is called:
A) survey research.
B) observational studies.
C) comparison studies.
D) focus group research.
E) experimental research.
Answer: D
57) One study compared consumer-shopping attitudes in the United States, Jordan, Singapore,
and Turkey. Data for the latter three countries were gathered from convenience samples recruited
by an acquaintance of the researcher. Although data gathered in this way are not subject to
statistical inference, they may be adequate to address the problem. In this study, for example, the
researchers were able to identify a clear trend toward cultural convergence in shopping attitudes
and customs that cut across modern industrial countries, emerging industrial countries, and
developing countries. The sample obtained in this case is referred to as a:
A) probability sample.
B) convenience sample.
C) secondary sample.
D) focus group sample.
E) quota sample.
Answer: A
58) Market research should focus on finding out how a potential customer can be changed into
an actual customer.
Answer: TRUE
59) Mattel Toys thought that Barbie would be as popular in Japan as it is in the United States.
This assumption was due to the self-reference criterion (SRC).
Answer: TRUE
60) Companies wishing to minimize the cost and effort associated with market research should
start by collecting and analyzing primary data.
Answer: FALSE
61) If a market researcher would like to know how much the typical Nigerian consumer spends
on soft drinks, the information can be obtained from GNP or GDP.
Answer: FALSE
62) If Avon would like to sell cosmetics in India, a good estimate of sales can be predicted by
researching the average wage of an office secretary.
Answer: TRUE
63) A latent market is, in essence, an undiscovered market segment.

Answer: TRUE
64) Traditional market research is the most effective means for identifying latent markets.
Answer: FALSE
65) Culture shapes attitudes and values in a way that directly affects people's willingness to
respond to interviewer questions.
Answer: TRUE
66) An "incipient market" is a market that will emerge if a particular economic, demographic,
political, or sociocultural trend continues in a country.
Answer: TRUE
67) Describe guidelines that are recommended by David Arnold for data gathering and explain
their importance in marketing research.
Answer: The guidelines for data gathering can be explained by the following steps: (1) Use
multiple indicators rather than a single measure. This approach will decrease the level of
uncertainty for decision makers. This technique, known as triangulation, is equally useful in
global market research. (2) Individual companies should develop customized indicators specific
to the industry, product market, or business model. Such indicators should leverage a company's
previous experience in global markets. (3) Always conduct comparative assessments in multiple
markets. Do not assess a particular market in isolation. Comparative assessment enables
management to develop a "portfolio" approach in which alternative priorities and scenarios can
be developed. (4) Observations of purchasing patterns and other behavior should be weighted
more heavily than reports or opinions regarding purchase intention or price sensitivity.
Particularly in developing markets, it is difficult to accurately survey consumer perceptions.
68) Authors Michael Czinkota and Ilka Ronkainen identified four specific environmental factors
that may require international research efforts to be conducted differently than domestic
research. Describe those factors to outline the differences.
Answer: The four specific environmental factors that may require international research efforts
to be conducted differently than domestic research are: (1) Researchers must be prepared for new
parameters for doing business. The requirements and ways in which rules are applied may differ
from country to country. (2) A "cultural mega-shock" may occur as company personnel come to
grips with a new set of culture-based assumptions about conducting business. (3) A company
entering more than one new geographic market faces a burgeoning network of interacting
factors. Research may help prevent psychological overload in that case. (4) Company researchers
may have to broaden the definition of competitors in international markets to include competitive
pressures that would not be present in the domestic market.
69) If Coach, a luxury goods marketer, would like to study the consumer perceptions of global
luxury brands, what would be the best approach since there are several competitors?
Answer: Consumers may differentiate one designer brand from another in various ways, such as
how easy it is to purchase each brand, how visible each brand is, whether or not the brand offers
diffusion lines, etc. A study can be conducted to study the perceptual dimension of "ubiquitous
verses rare." A five-point similarity judgment scale of selected designer brands can be
developed. The responses achieved help marketers understand which brands in a particular
category are in direct competition with each other and which are not. The responses can be
analyzed using an MDS program—the perceptual mapping. The perceptual map will show the
differences such as between ubiquity and rarity or exclusivity and accessibility. The position of
Coach, thus can be studied from the map. This type of study could help Coach to respond to new
industry realities, which include a shift in the perception of what constitutes luxury and the
increasing fragmentation of consumer tastes. Such a map will be helpful in knowing up-and-
coming fashion designers hoping to launch a new line.
70) Suppose Apple has collected extensive survey data about its new iPhone, and respondents
have rated it on 20 different features and benefits. Now researchers want to reduce the amount of
data to a few underlying dimensions. Which data analysis technique should the researchers use?
A) analogy
B) conjoint analysis
C) factor analysis
D) multidimensional scaling
E) cluster analysis
Answer: C
Chapter LO: 6.4: Compare the way a multinational firm organizes the marketing research effort
with the way a global or transnational firm approaches the organizing issue.
71) One study of adult involvement in household tasks revealed greater similarities between the
United Kingdom and the United States compared with France, Belgium, and French Canada.
Thus, the United States and United Kingdom were "twins" based on common language. This
study is an example of:
A) market latency.
B) conjoint analysis.
C) factor analysis.
D) multidimensional scaling.
E) cluster analysis.
Answer: E
72) When consumers have difficulty in verbalizing their perceptions, and there are different
alternative brands of toothpaste, what is the best method of judging them in terms of similarity?
A) cluster analysis
B) multidimensional scaling
C) dependence techniques
D) factor loading
E) focus group
Answer: B
73) Campbell is the world's largest soup company, commanding about 80% of the U.S. canned
soup market. However, the company has a presence in only 6% of the world's soup markets.
Russians eat 32 billion servings of soup each year, and the Chinese consume 300 billion! By
contrast, Americans eat 15 billion servings each year. Sensing a huge opportunity, Campbell has
dispatched teams to observe Russian and Chinese habits. This type of interpretation and decision
is based on:
A) demand pattern analysis.
B) income elastic analysis.
C) time series displacement.
D) polycentrism.
E) comparative analysis.
Answer: E
74) A market researcher who uses multidimensional scaling (MDS) will:

A) attempt to estimate market size by analogy.
B) ask respondents to rate a particular product or brand in terms of multiple characteristics or
attributes.
C) ask respondents to evaluate product or brand pairs in terms of similarity.
D) attempt to determine the combination of product features that create the greatest utility for
consumers.
E) conduct a focus group.
Answer: C
75) Red Bull energy drink manufacturer, Dietrich Mateschitz, hired a market research firm to
assess the market potential for the drink. In the tests, consumers reacted negatively to the taste,
the logo, and the brand name. The company ignored the research completely.
Answer: TRUE
76) During earlier days, Japanese women almost never used mascara because, by nature, they
have very straight, short and thin lashes. This was observed during a focus group study.
Answer: FALSE
77) Volkswagen, Peugeot, Chrysler, and other global automakers have established
manufacturing operations in China since they consider it to be an incipient market.
Answer: TRUE
78) It will be convenient to do a telephone survey in rural areas in China since, according to the
Ministry of Information Industry reports, 40 percent of households have at least one fixed-line
telephone.
Answer: FALSE
AACSB: Diverse and multicultural work environment
79) "Back-translation" is a technique used to ensure that currency conversion is performed

correctly when financial statements of foreign subsidiaries are consolidated with financial
statements at headquarters.
Answer: FALSE
80) "Back-translation" is a technique whereby a survey or other document that has been
translated is returned (i.e. "sent back") to the translator for corrections.
Answer: FALSE
81) It is difficult to obtain a representative sample in Brazil since the technological infrastructure
for gathering market data is minimal.
Answer: TRUE
AACSB: Information technology
82) A marketer of breakfast cereals might send researchers to preselected households at 6 a.m. to
watch families go about their morning routines.
Answer: TRUE
83) When using a "projective technique," the researcher presents close-ended or ambiguous
stimuli to a subject in a focus group.
Answer: FALSE
84) Many of the fast food operations are entering markets in Middle Eastern countries. In the
United States, breakfast items are very popular and are responsible for a majority of the profit
from sales, primarily from drive-in customers. However, to their dismay, managers found that
there was practically no demand for breakfast items. Firstly, due to hot weather conditions,
people sleep late and wake up late. Secondly, they do not eat burgers, and sausage or bacon is
prohibited. Also, drive-in business is not popular since people go to work at different periods of
time. Explain the reasons why these facts were not discovered by marketing research.
Answer: When conducting research in a foreign country one has to be free from any kind of bias
or prejudice as possible. A person's home-country values and beliefs may consciously or
unconsciously influence the assessment of a foreign culture or country. This is referred to as
SRC (self-reference criterion). The SRC tendency underscores the importance of understanding
the cultural environments of global markets. As in the above case, assumptions based on home-
country marketing success turned out to be wrong when applied in a Middle Eastern country. A
marketing program that is successful in one country does not guarantee success in another
country. Thus, marketers must be aware of the SRC and its impact. Such awareness can have
several positive effects. It can enhance management's willingness to conduct market research in
the first place. Also, an awareness of SRC can help in ensuring the validity of research with
minimal home-country or second-country bias. In other words, the research will have potentially
useful results which managers will be able to accept and implement.
85) Grey China Advertising agency gathers a wealth of information about attitudes and buying
patterns of the Chinese in its Grey China Base Annual Consumer Study. Recent findings point to
growing concerns about the future, Westernization of grocery purchases, growing market
saturation, increasingly discerning customers and a rise in consumer willingness to try new
products. These data can be very inconsistent since conflicting findings were reported by
different agencies. For example, data gathered by Euromonitor International estimates soft-drink
consumption at 23 billion liters in China, while Coca-Cola's in-house marketing research team
places the figure at 39 billion liters. Similar differences were noted in other data published by
different agencies. What is the best approach in such situations so that finite decisions can be
made? What are the differences between latent and incipient markets?
Answer: These types of discrepancies are expected due to the research methodology, design,
analyses, and scores of other factors. In such situations, and in countries where such data are not
available, researchers must first estimate the market size, the level of demand, or the rate of
product purchase or consumption. A second research objective in existing markets may be
assessment of the company's overall competitiveness in terms of product appeal, price,
distribution, and promotional coverage and effectiveness. Researchers may be able to find out
special aspects or weaknesses in competitors' way of doing business. Unserved market segments
may also be discovered. In some instances, there is no existing market to research. Such potential
markets can be further subdivided into latent and incipient markets. A latent market is, in
essence, an undiscovered market segment. It is a market in which demand would materialize if
an appropriate product or service were made available. In a latent market, demand is zero before
the product is offered. An incipient market is a market that will emerge if a particular economic,
demographic, political, or sociocultural trend continues. A company is not likely to achieve
satisfactory results if it offers a product in an incipient market before the trends have taken root.
After the trends have had a chance to unfold, the incipient market will become latent and, later,
an existing market.
86) How can observational studies and focus groups be used in marketing research? What are the
different methods by which these studies are conducted?
Answer: In the observation method, one or more trained observers or a mechanical device watch
and record the behavior of actual or prospective buyers. The research results are used to guide
marketing managers in their decision making. For example, observations are done as to how
male or female customers open the door of cars and sit. This simple act can be of tremendous
help in designing the doors of cars and the adjustment of seats. Similarly, observing how
consumers are picking items in a grocery store or observing the items in shopping carts can give
better understanding of the actual purchase behavior of consumers. It should be noted that since
consumers are unaware of being watched, actual behavior can be recorded and interpreted.
Marketers can also observe the eating behavior by observation or the plate wastages after dinner
to assess food preferences of consumers. Companies using observation as a research
methodology must be sensitive to public concerns about privacy issues, particularly if the
subjects know that they are being watched. In focus group research, a trained moderator
facilitates discussion of a product concept, a brand's image and personality, advertisement, social
trends, or other related topic with a group comprised of 6 to 10 people. Selection of focus group
participants has to be done very carefully since the number of participants is very limited. They
should also meet the criteria which closely fit the overall population under study. Usually focus
group meetings are conducted in a special equipment room in an undisturbed environment. The
questions are carefully framed and answers are solicited from all participants in an organized
manner. Recordings are made of the entire process and analyzed after the conclusion of the
session. A one-way mirror or a video screening is simultaneously conducted where focus group
participants are being watched. Also the trained moderator is connected by earphones with others
including business managers, so that appropriate instant questions may be prompted to be used in
discussion. Focus group research yields qualitative data that does not lend itself to statistical
projection. Such data are extremely valuable in the exploratory phase of a project and are
typically used in conjunction with data gathered via observation and other methods.
87) In India, only 10% of men who shave use Gillette razors. Worldwide, 50% of male shavers
use Gillette products. To achieve greater penetration in India, Gillette rolled out a no-frills brand
that costs 15 rupee —about 34 cents. The Gillette Guard® has a lighter handle that is cheaper to
produce. It also lacks the lubrication strip found in Gillette's more expensive razors, and
replacement blades cost only 5 rupees (11 cents). This use of data is described as:
A) demand pattern analysis.
B) income elastic analysis.
C) factor analysis.
D) market estimation by analogy.
E) multidimensional scaling.
Answer: D
Chapter LO: 6.5: Explain how information's role as a strategic asset affects the structure of
global corporations.
88) According to David Arnold, there are four possible approaches to forecasting by analogy,
which does not include which of the following?
A) Data is available on a comparable product in the same country.
B) Data is available on the same product in a comparable country.
C) Data is available on the same product from a dependent distributor in a neighboring country.
D) Data is available about a comparable company in the same country.
E) Data is available on the same product in every country.
Answer: E
89) Which of the following is true about etic and emic approaches to country analysis?
A) The etic and emic approaches are identical.
B) An emic approach studies a culture from within; etic analysis is "from the outside."
C) An emic approach studies a culture "from the outside"; etic analysis studies a culture from
within.
D) The emic/etic distinction is not useful in cultural studies.
E) The emic/etic approaches cannot be applied to Asian countries.
Answer: B
90) A market research study of soft drink consumption and distribution in Hungary
commissioned by an American company indicated that soft drinks were available in drugstores.
However, Western-style drugstores do not exist in Hungary. This illustrates an important issue in
global marketing research, namely:
A) inflated data.
B) using convenience samples.
C) market estimation by analogy.
D) comparability of data.
E) using multidimensional scaling.
Answer: D
91) Whirlpool conducts usability studies that provide insight into the ways consumers interact
with its products. In one study in an emerging market, engineers and designers stood behind a
two-way mirror and watched as a volunteer put groceries away in a Kenmore Elite refrigerator.
The Whirlpool team recorded a variety of data, such as the amount of time required for the
volunteer to finish the task and the number of features used. The basis of this research study was
based on the fact that:
A) listening to customers is only possible in America.
B) data collected in the United States should be applicable in other countries.
C) consumers in different countries prefer different types of features.
D) in China, it will be difficult to find enough space in homes to put a refrigerator.
E) in India, refrigerators are seldom used by customers.
Answer: C
92) In global marketing research, it is important to establish scalar equivalence when obtaining
information from different countries.
Answer: TRUE
93) In global marketing research, the results of a nonprobability sample can be projected with
statistical reliability.
Answer: FALSE
94) If interaction between two variables is desired, factor analysis can be used to transform large
amounts of data into manageable units.
Answer: FALSE
95) What are "interdependence techniques" in the analysis of data? What type of measurement is
possible with this technique, and what are different methods that are used in marketing research?
Answer: Interdependence techniques show the interaction between variables and are comprised
of factor analysis, cluster analysis, and multidimensional scaling (MDS). Factor analysis can be
used to transform large amounts of data into manageable units. Specialized statistical programs
can reduce or group the data by distilling out certain meaningful factors. These factors are
selected by the program on the basis of attitudes and perceptions that can be closely aligned from
a multitude of survey responses.
Factor analysis is useful in psychographic segmentation studies. It can also be used to create
perceptual maps.
Cluster analysis allows the researcher to group variables into clusters that maximize within-
group similarities and between-group differences. Cluster analysis shares some characteristics of
factor analysis in that it does not classify variables as dependent or independent. It can also be
used in psychographic segmentation. It is well suited to global marketing research because
similarities and differences can be established between local, national, and regional markets of
the world. Cluster analysis can also be used to perform benefit segmentation and identify new
product opportunities.
MDS is another technique for creating perceptual maps. When the researcher is using MDS, the
respondent is given the task of comparing products or brands, one pair at a time, and judging
them in terms of similarity. The researcher then infers the dimensions that underlie the
judgments. MDS is particularly useful when there are many alternatives from which to choose
and when consumers may have difficulty verbalizing their perceptions. To create a well-defined
spatial map, a minimum of eight products or brands should be used.
96) What is meant by Comparative Analysis and Market Estimation by Analogy? How can these
be helpful in marketing research?
Answer: In global marketing research, it may be necessary to conduct comparisons of market
potential and marketing performance in different countries or regional markets at the same point
in time. This analysis can be intra-company or cross-national comparison. There may be
differences even under similar conditions from one country to another. For example, catalog
sales in the United States represent about 3% of overall retail sales. By comparison, catalog sales
in Germany account for 5.8% of overall sales. This suggests that there is a catalog marketing
opportunity in Germany. Sometimes data may not be available for a particular country or
regional market. In such cases it is sometimes possible to draw an analogy. In other words the
comparison is based on partial resemblance since data are not available. Time-series
displacement is an analogy technique based on the assumption that an analogy between markets
exists in different time periods. The time displacement method requires a marketer to estimate
when two markets are at similar stages of development.
97) What is the difference between emic and etic analysis? Explain with examples as to how
these analyses can be used in marketing research.
Answer: Emic analysis is similar to ethnography in that it attempts to study a culture from
within, using its own system of meanings and values. Etic analysis is "from the outside"; in other
words, it is a more detached perspective that is often used in comparative or multi-country
studies. In a particular research study, an etic scale would entail using the same set of items
across all countries. This approach enhances comparability, but some precision is lost. By
contrast, an emic study would be tailored to fit a particular country; inferences about cross-
cultural similarities based on emic research have to be made subjectively. A good compromise is
to use a survey instrument that incorporates elements of both types of analysis. It is likely that
the marketing director will end up with a number of marketing programs tailored to clusters of
countries that exhibit within-group similarities.

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Global Marketing, 10e (Green/Keegan)

Chapter 6 Global Information Systems and Market Research

5) An ________ is a company's private data network, accessible only by authorized persons

9) One challenge of using CRM is:

11) CRM tools do not help companies in determining:

13) Gathering data is an end in itself.

19) A "touchpoint" provides important data about consumers.

27) A Safe Harbor agreement establishes principles for privacy protection.

31) The first step in formulating and conducting research is to:

39) Potential markets can be subdivided into:

56) In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a

63) A latent market is, in essence, an undiscovered market segment.

74) A market researcher who uses multidimensional scaling (MDS) will:

79) "Back-translation" is a technique used to ensure that currency conversion is performed

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