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Marketing Canadian 5th Edition Lamb

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Chapter 7—Decision Support Systems and Marketing Research

MULTIPLE CHOICE

1. What is an interactive, flexible information system that enables managers to obtain and manipulate
information as they are making decisions?
a. a database marketing system
b. a marketing information system
c. a marketing decision support system
d. an artificial intelligence system
ANS: C PTS: 1 DIF: Definition REF: p. 200
OBJ: 1 BLM: Remember

2. What is the creation of a large computerized file of customers’ and potential customers’ names,
profiles, and purchase patterns?
a. competitive data mining
b. sampling procedure specification
c. database marketing
d. consumer behaviour marketing
ANS: C PTS: 1 DIF: Definition REF: p. 200
OBJ: 1 BLM: Remember

3. What should a true marketing decision support system be?


a. rigorous
b. interactive
c. reactive
d. customer-oriented
ANS: B
A true DSS should be flexible, interactive, discovery-oriented, and accessible.

PTS: 1 DIF: Definition REF: p. 200 OBJ: 1


BLM: Remember

4. What entails planning, collecting, and analyzing data relevant to marketing decision making, the
communication of the results of this analysis to management, and the addressing of “what if”
questions?
a. artificial intelligence
b. single-source research
c. marketing research
d. data collection
ANS: C PTS: 1 DIF: Comprehension
REF: p. 201 OBJ: 2 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-1


5. Marketing research has three functional roles. What are they?
a. descriptive, explanatory, and predictive
b. descriptive, diagnostic, and predictive
c. normative, descriptive, and explanatory
d. predictive, normative, and persuasive
ANS: B PTS: 1 DIF: Definition REF: p. 201
OBJ: 2 BLM: Remember

6. A manufacturer of an all-natural fruit and veggie bar targeted to people who want nutritious snacks
has asked for marketing research to explain the reasons for the recent failure of its Apple-Broccoli
bar. What is this type of research?
a. diagnostic
b. historical
c. predictive
d. descriptive
ANS: A
One of the roles of marketing research is to be diagnostic and to explain what happened.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2


BLM: Higher order

7. A bowling alley operator could use which of the following to determine why customers do not
seem to like his bowling alley’s new location?
a. transactional marketing
b. marketing research
c. market synergy
d. public relations
ANS: B
Marketing research can be used by management to trace problems and their causes.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2


BLM: Higher order

8. Soon after the Laura Secord Museum expanded its hours and began charging a small fee to pay for
the extra help needed to keep it open longer hours, attendance decreased. What could museum
staff use to determine why this decrease in attendance occurred?
a. secondary data
b. marketing research
c. database marketing
d. an internal marketing audit
ANS: B
Marketing research could be used to find out why attendance declined.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2


BLM: Higher order

7-2 Copyright © 2012 Nelson Education Limited


9. The publisher of a Canadian business magazine wanted to make several major changes in the
magazine’s content and format. To determine what changes would be supported by its subscribers
and what changes would not be welcomed, what should the publisher engage in?
a. marketing research
b. database marketing
c. secondary data
d. a data retrieval system
ANS: A
Marketing research would be appropriate to determine how the publisher could provide greater
customer satisfaction.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2


BLM: Higher order

10. What can marketing managers use marketing research for?


a. to implement a sales promotion
b. to improve the quality of their decision making
c. to learn how to more efficiently respond to customers
d. to find out why a marketing plan failed to launch
ANS: B PTS: 1 DIF: Comprehension
REF: p. 201 OBJ: 2 BLM: Higher order

11. What would marketing managers typically use marketing research for?
a. to implement a sales promotion
b. to eliminate any guesswork in decision making
c. to handle an individual customer’s complaint
d. to determine why a new product failed
ANS: D
Marketing research is used to determine why marketing plans failed.

PTS: 1 DIF: Comprehension REF: p. 201


OBJ: 2 BLM: Higher order

12. What is the first step in the marketing research process?


a. Collect the data.
b. Plan the research design.
c. Specify the sampling plan.
d. Define the marketing problem to be studied.
ANS: D PTS: 1 DIF: Definition REF: p. 203
OBJ: 3 BLM: Remember

Copyright © 2012 Nelson Education Limited 7-3


13. Wango Ltd’s product manager in charge of “Wangochewy,” a dog treat, declared that the
product’s weak sales were a result of a poor advertising effort. He decided to get to the root of the
problem by having focus groups examine the advertising campaign. The focus group results
indicated that the campaign was well executed and the message conveyed to consumers was clear
and strong. What, if anything, is wrong here?
a. Before the focus groups were arranged, primary data should have been collected.
b. Before the focus groups were arranged, secondary data should have been collected.
c. The product manager should have conducted quantitative research instead of qualitative
research.
d. The product manager did not properly identify and formulate the problem.
ANS: D PTS: 1 DIF: Application REF: p. 203
OBJ: 3 BLM: Higher order

14. A private academy for children with learning disabilities has noticed a steadily declining
enrollment in spite of the addition of several scholarships. Before conducting any marketing
research to explain the decline in enrollment, what will the school’s staff need to do?
a. Develop a survey to find out exactly what’s wrong.
b. Define the problem to be researched.
c. Determine who will be most likely to respond to their survey.
d. Select a market sample from everyone in the population.
ANS: B
To respond to a symptom, one should find out what the underlying problem is.

PTS: 1 DIF: Application REF: p. 203 OBJ: 3


BLM: Higher order

15. In contrast to marketing research problems, what are management decision problems?
a. narrower in scope
b. information-oriented
c. pervasive
d. action-oriented
ANS: D PTS: 1 DIF: Definition REF: p. 204
OBJ: 3 BLM: Remember

16. Which of the following BEST describes the marketing research problem?
a. It is information-oriented.
b. It involves determining what resources will be used in research efforts.
c. It is action-driven.
d. It does not rely on managerial experience.
ANS: A PTS: 1 DIF: Definition REF: p. 204
OBJ: 3 BLM: Remember

7-4 Copyright © 2012 Nelson Education Limited


17. Why must managers combine specific pieces of information to identify the marketing research
problem?
a. Their field service objective is to provide insightful decision-making information.
b. Their marketing research objective is to provide insightful decision-making information.
c. Their company-correlated goal is to provide insightful decision-making information.
d. Their autonomous task is to provide insightful decision-making information.
ANS: B PTS: 1 DIF: Definition REF: p. 204
OBJ: 3 BLM: Remember

18. Post Properties is a company that manages apartments in various communities. It is concerned
with a glut of apartments in Moose Jaw, Prince Albert, and Saskatoon. Its market researcher
begins by examining the rental markets in Saskatchewan, the history of apartment buildings, local
economies, competitive rents, and ownership—all information that was on hand and did not
require any new research to locate. What did the market researcher look at?
a. secondary data
b. primary data
c. priority databases
d. a statistical analysis
ANS: A PTS: 1 DIF: Application REF: p. 205
OBJ: 3 BLM: Higher order

19. Data previously collected for purposes other than the one at hand are an important source of
information as the researcher defines the problem. What are these data called?
a. secondary data
b. convenience data
c. primary data
d. single-source data
ANS: A PTS: 1 DIF: Definition REF: p. 205
OBJ: 3 BLM: Remember

20. Market research firms, commercial publications, and government data can be used as sources of
which of the following?
a. consensual information
b. primary data
c. marketing audits
d. secondary data
ANS: D
Data previously collected for purposes other than the one at hand are an important source of
information known as secondary data.

PTS: 1 DIF: Comprehension REF: p. 205


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-5


21. The TNT cable channel began using the slogan, “TNT knows drama,” in early 2002. It wants to
determine how its viewership has changed since it has changed its programming focus. It has
decided to use secondary data to determine if its viewers’ demographics have changed. What is a
potential disadvantage of this research plan?
a. the difficulty of holding certain variables constant while varying one factor of interest
b. the high cost of collecting secondary data
c. the information not fitting the needs of the research problem
d. interviewer bias during the collection process
ANS: C
Secondary data have been previously collected for some other purpose and may not fit the current
research problem.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

22. Which of the following is correct when assessing the quality of secondary data?
a. It is not necessary to know why the data were collected in the first place.
b. It is important to know the purpose for which the data were originally collected.
c. It is important to use the same methods and procedures as when primary data are
collected.
d. It is important to be able to have easy access to the data.
ANS: B
To assess the quality of the data, it is important to know when, where, why, and how the data were
originally collected.

PTS: 1 DIF: Comprehension REF: p. 205


OBJ: 3 BLM: Higher order

23. Which of the following is an example of secondary data?


a. a physical count of the number of cars passing through an intersection to determine the
need for a traffic signal
b. a collection of trade journal articles about the future of a particular industry
c. the creation of a customer database
d. a newspaper story describing the lifestyle of the average Internet user
ANS: B
Only the information in alternative B is secondary data. Alternative C is not even marketing
research.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

24. Which of the following BEST describes a search engine?


a. It answers specific, consultative marketing research questions.
b. It provides a limited amount of information in response to a general search request.
c. It requires a complete knowledge of Boolean logic and calculus.
d. It contains collections of links to documents.
ANS: D PTS: 1 DIF: Definition REF: p. 206
OBJ: 3 BLM: Remember

7-6 Copyright © 2012 Nelson Education Limited


25. What are metasearch engines?
a. a source of proprietary data
b. companies designed to generate secondary data
c. electronic scanners of consumer behaviour patterns
d. search engines for search engines
ANS: D PTS: 1 DIF: Definition REF: p. 206
OBJ: 3 BLM: Remember

26. In addition to using search engines to locate secondary data, people can also use subject
directories. The two types of directors are academic and professional directories and which of the
following?
a. federal records
b. commercial portals
c. business-to-business Web pages
d. compiled lists
ANS: B PTS: 1 DIF: Definition REF: p. 206
OBJ: 3 BLM: Remember

27. Avon Meadows Travel Agency has seen its number of customers decline by almost 15 percent in
the last two years. The agency needs to understand the reason(s) for the decline before it can make
plans to reverse the trend. The agency’s manager has identified the problem as a smaller number of
vacationers willing to travel by airplane. What is the agency’s next step in the marketing research
process?
a. Specify the sampling plan.
b. Collect the data.
c. Plan the research design.
d. Recognize the marketing problem.
ANS: C PTS: 1 DIF: Application REF: p. 207
OBJ: 3 BLM: Higher order

28. Which of the following function much like bulletin boards and are established to focus on a
particular topic?
a. commercial portals
b. search engines
c. newsgroups
d. visitation portals
ANS: C PTS: 1 DIF: Definition REF: p. 207
OBJ: 3 BLM: Remember

29. Fred Farkle, marketing manager at Thebee Industries, was trying to decide whether to collect
information via personal interviews, telephone, or snail mail for a project he was working on. In
which step of the marketing research process was Fred currently engaged?
a. planning the research design and gathering primary data
b. analyzing the data
c. identifying and formulating the problem
d. specifying the sampling procedures
ANS: A PTS: 1 DIF: Application REF: p. 207
OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-7


30. What specifies the research questions to be answered, how and when the data will be gathered, and
how the data will be analyzed?
a. the research design
b. secondary data use plan
c. the sampling plan
d. the research collaborative plan
ANS: A PTS: 1 DIF: Definition REF: p. 207
OBJ: 3 BLM: Remember

31. What does the research design specify?


a. the information that will be found
b. follow-up procedures for the research
c. the research questions to be answered using primary data
d. how the information gathered will be used to predict external environmental changes
ANS: C PTS: 1 DIF: Comprehension
REF: p. 207 OBJ: 3 BLM: Higher order

32. What is information that is collected for the first time for the purpose of solving a particular
problem under investigation?
a. convenience data
b. primary data
c. observation data
d. secondary data
ANS: B PTS: 1 DIF: Definition REF: p. 207
OBJ: 3 BLM: Remember

33. Stair Specialist, Inc. builds customized circular staircases for homes in southern Ontario. Its sales
have plateaued. Nothing it does seems to change its sales picture. Its owner has asked you to
advise the company on what it should do to increase its sales. Which of the following is an
example of primary data that could be used for examining this marketing research problem?
a. information from the Toronto Yellow Pages showing that the number of building
contractors has declined over the past five years
b. industry predictions that the number of new homes built in Quebec will increase by 15
percent
c. a survey done of new home start-up buyers in southern Ontario
d. an article in a construction trade journal predicting fewer housing starts during the next
decade
ANS: C
Information that is collected for the first time for the purpose of solving a particular problem under
investigation is called primary data.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3


BLM: Higher order

7-8 Copyright © 2012 Nelson Education Limited


34. Mel and Mimi is the name of an upscale boutique that has outgrown the building it has been
located in for the last two decades. Its owners want to know how its customers will react to a move
and if the addition of new product lines will make the new location more attractive to its loyal
customers. The store’s owners have surveyed several of their customers to gauge their reaction to
various potential locations and changes in product lines. The survey results are an example of what
type of data?
a. Collaborative
b. Observation
c. Primary
d. Secondary
ANS: C
Information that is collected for the first time for the purpose of solving a particular problem under
investigation is called primary data.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3


BLM: Higher order

35. What is the chief advantage of primary data?


a. its relevance to the problem at hand
b. its availability to any interested party for use
c. its accessibility through computerized databases
d. avoiding interviewer biases
ANS: A
Primary data is information collected for the first time for the purpose of solving a particular
problem under investigation.

PTS: 1 DIF: Comprehension REF: p. 207


OBJ: 3 BLM: Higher order

36. As Key Energy Services, Inc. planned its first marketing research project, its marketing director
recommended it use primary data. Why?
a. It will provide a benchmark for new secondary information.
b. It will fit the information Key Energy Services needs exactly since the data will be
collected specifically for this study.
c. Its value is unrelated to sample size.
d. This is information that is available free to all interested parties.
ANS: B
Primary data is information that is collected for the first time for the purpose of solving a
particular problem under investigation.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-9


37. Which of the following collect data on two different projects using one questionnaire?
a. experiential data
b. dichotomous inquiries
c. single-source studies
d. piggyback studies
ANS: D PTS: 1 DIF: Definition REF: p. 210
OBJ: 3 BLM: Remember

38. The Salvation Army is collecting data on ways to make it simpler to give cash donations and
assess public opinion toward the uniforms worn by its members using one questionnaire. What is
this an example of?
a. dichotomous inquiries
b. piggyback studies
c. dual experimentation
d. Siamese twin projects
ANS: B
Piggyback studies collect data on two different projects using one questionnaire.

PTS: 1 DIF: Application REF: p. 210 OBJ: 3


BLM: Higher order

39. The most popular method for gathering primary data is one in which a researcher interacts with
people to obtain facts, opinions, and attitudes. Which of the following is that method?
a. heuristic-oriented
b. experiments
c. single-source research
d. survey research
ANS: D PTS: 1 DIF: Definition REF: p. 211
OBJ: 3 BLM: Remember

40. Which of the following BEST describes in-home personal interviews?


a. They are becoming increasingly more popular.
b. They offer high-quality data at low cost.
c. They offer high-quality data at high cost.
d. They offer information of moderate quality, but at a low cost.
ANS: C
The cost of interviewer time and mileage is high, but these interviews yield high-quality
information.

PTS: 1 DIF: Definition REF: p. 211 OBJ: 3


BLM: Remember

7-10 Copyright © 2012 Nelson Education Limited


41. What is a major limitation of the mall intercept interview?
a. the difficulty of demonstrating new products
b. the difficulty of measuring attitudes and opinions
c. the difficulty of obtaining a representative sample of the population of interest
d. the need to interview people standing up
ANS: C
A mall intercept sample is basically a convenience sample and not necessarily representative of the
population as a whole.

PTS: 1 DIF: Comprehension REF: p. 211


OBJ: 3 BLM: Higher order

42. A furniture manufacturer wants to test how consumers will respond to furniture upholstered in
fabric made from recycled plastic. Which form of survey would allow it to do this?
a. a laboratory test
b. a mall intercept
c. an observation study
d. a telephone interview
ANS: B
A mall intercept allows demonstration of the product, and the others do not. A laboratory test is
not a type of survey.

PTS: 1 DIF: Application REF: p. 211 OBJ: 3


BLM: Higher order

43. What is the most popular method of primary data collection?


a. survey research
b. observational studies
c. personal interviews
d. focus groups
ANS: A PTS: 1 DIF: Definition REF: p. 211
OBJ: 3 BLM: Remember

44. According to the text, which of the following statements about the mall intercept interview is true?
a. Mall intercept interviews are the least expensive method to conduct surveys.
b. It is difficult to get a representative sample of the population with a mall intercept
interview.
c. The mall intercept interviews offers researchers the ability to collect large quantities of
information through complex surveys.
d. Mall intercept interviews must be brief.
ANS: B
It is sometimes necessary for the mall intercept interviewer to ask probing questions.

PTS: 1 DIF: Comprehension REF: p. 211


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-11


45. Your supervisor has instructed you to conduct a marketing research effort that will determine how
your company’s business customer demographics have changed. You have also been instructed to
use primary data. What will you do?
a. Make sure you locate Internet information by using a search engine.
b. Develop a mail survey to study your primary market.
c. Employ studies done by Statistics Canada.
d. Ask the Conference Board for its latest study.
ANS: B
Primary data is information collected for the first time and used to gain a better understanding of a
primary market.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

46. Computer-assisted personal interviewing and computer-assisted self-interviewing are two


computerized methods for conducting which of the following?
a. mall intercept interviews
b. in-home interviews
c. CLT interviews
d. focus groups
ANS: A PTS: 1 DIF: Definition REF: p. 212
OBJ: 3 BLM: Remember

47. What is a specially designed phone room used to conduct telephone interviewing?
a. a central-location telephone (CLT) facility
b. a multi-interviewer location site
c. a telephone outsourcing centre
d. a controlled-feedback facility (CFF)
ANS: A PTS: 1 DIF: Definition REF: p. 212
OBJ: 3 BLM: Remember

48. What do telephone interviews offer?


a. speed in gathering data
b. the ability to collect complex and large amounts of data
c. the highest-cost method for obtaining data
d. a potential for reaching all households
ANS: A
Telephone interviews are of moderate cost when compared to in-home or mall interviews but are
more expensive than mail surveys.

PTS: 1 DIF: Comprehension REF: p. 212


OBJ: 3 BLM: Higher order

7-12 Copyright © 2012 Nelson Education Limited


49. One day before the limited release of a multi-million-dollar movie about the bombing of the World
Trade Center, a group of relatives of people who lost their family members on that day appeared
on the news to tell everyone how wrong it was for any company to try to profit from the tragedy.
To find out whether these relatives had an impact on the number of people who wanted to see the
movie, the production company hired a research company to obtain questionnaire data from
theatre goers in the cities where the movie was scheduled to open. Given the circumstances, what
should the research company use?
a. personal interview surveys
b. a telephone survey
c. a mail survey
d. focus group interviews
ANS: B
The quickest way to ascertain this information is a telephone survey of voters.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

50. You need to collect information quickly using a complex questionnaire that probes for feelings
behind why people purchase your products. You also want each interviewer to conduct the survey
in the same manner. Fortunately, you have access to a computerized questioning system. Which of
the following is your best option?
a. focus groups
b. central-location telephone (CLT) interviews
c. in-home personal interviews
d. mall intercept interviews
ANS: B
Central-location telephone interviewing allows for fast time spans, question probing, interviewer
control, and the ability to handle complex questionnaires when computer aided.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

51. Mail surveys can provide more thoughtful replies than other research methods can, but they often
produce low response rates. Why is this an important consideration?
a. It would be less expensive to use telephone surveys and get a higher response rate.
b. Certain members of the population are more likely to respond to mail surveys than others.
c. The respondents may elaborate too much on their responses.
d. Thoughtful replies are harder to quantify and are, therefore, of less value.
ANS: B
There could be a nonresponse bias because the type of subjects who do answer the survey may
differ from the population as a whole.

PTS: 1 DIF: Comprehension REF: p. 212


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-13


52. Low response rate is a problem commonly associated with which of the following?
a. exit interviews
b. mail surveys
c. mall intercept interviews
d. executive interviews
ANS: B
Mail surveys often have response rates as low as 4 percent, much lower than any other type of
interviews or surveys.

PTS: 1 DIF: Comprehension REF: p. 212


OBJ: 3 BLM: Higher order

53. You must conduct research to find out a great deal of information about the motives and desires of
potential customers for a home-delivery grocery service. You need a sample size of at least 300
people who spend at least $100 weekly at the supermarket, and you don’t have a lot of money to
conduct the research. What should you use?
a. a marketing experiment
b. in-home personal interviews
c. observation research
d. mail surveys
ANS: D
Mail surveys are the least expensive method of data collection for a sample of this size when a
lengthy survey is required.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

54. What is the most expensive type of survey research?


a. focus groups
b. mall intercept interviews
c. CLT interviews
d. executive interviews
ANS: D PTS: 1 DIF: Comprehension
REF: p. 212 OBJ: 3 BLM: Higher order

55. Which of the following have essentially the same advantages and disadvantages of in-home
interviews?
a. focus groups
b. mall intercept interviews
c. CLT interviews
d. executive interviews
ANS: D
The text describes executive interviews as the industrial equivalent of door-to-door interviewing.

PTS: 1 DIF: Comprehension REF: p. 212


OBJ: 3 BLM: Higher order

7-14 Copyright © 2012 Nelson Education Limited


56. Adidas, the athletic shoe manufacturer, wants to collect data on consumer receptivity to its newest
product line extension—Adidas perfume, a perfume with a floral scent. The marketing research
director has recommended using a mail panel operated by NPD Research. What can Adidas expect
from a mail panel?
a. data collection more rapid than telephone interviews
b. the panel of consumers meeting monthly to discuss products that were sent to them to try
c. the participants not usually being compensated for their assistance, so it will be
inexpensive
d. a very high response rate
ANS: D
Mail panel members are recruited to be used as a sample several times, and return rates of 70
percent are not uncommon.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

57. What is essential to the success of focus group research?


a. group dynamics
b. corporate synergy
c. individualism
d. empowerment
ANS: A PTS: 1 DIF: Definition REF: p. 213
OBJ: 3 BLM: Remember

58. What is a form of personal interviewing that uses a group of seven to ten people who have been
recruited because of certain desired consumer characteristics?
a. a primary data group
b. a focus group
c. a CLT interview
d. a passive people meter
ANS: B PTS: 1 DIF: Definition REF: p. 213
OBJ: 3 BLM: Remember

59. In which of the following situations would a marketing researcher be most likely to use executive
interviews?
a. A shampoo manufacturer wants to test which smells consumers perceive as relaxing and
exhilarating.
b. The producers of children’s programming on public television want to learn more about
the viewing habits of an audience composed of 5- to 12-year-old males.
c. A manufacturer of frozen dinners wants to research the eating habits of its target market.
d. A manufacturer of extruded plastic wants to determine where there are other markets for
its products.
ANS: D
Only the extruded plastic manufacturer would be selling exclusively in the business-to-business
market.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-15


60. A promoter wants to know if there is a market for a convention devoted to understanding how the
intellectual property of music companies, book publishers, and software development companies
will be protected in the future from unauthorized use. What type of survey technique would be
most appropriate for gathering this type of primary data?
a. in-home interviews
b. executive interviews
c. cyber focus groups
d. CLT interviews
ANS: B
Since this is a topic where the respondent should be a product user as opposed to a consumer,
executive interviews are most appropriate.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

61. Which of the following consists of gathering seven to ten people together for a few hours with a
qualified moderator to talk about products, services, companies, and/or brands?
a. executive interviewing
b. conversational interviewing
c. computer-assisted personal interviewing
d. focus group interviewing
ANS: C PTS: 1 DIF: Definition REF: p. 213
OBJ: 3 BLM: Remember

62. In a survey of consumer buying habits, Visa Canada asked Canadian shoppers, “Do you ever buy
holiday gifts for your pets? What kind of survey question is this?
a. Likert scale
b. multiple choice
c. open-ended
d. dichotomous
ANS: D
There are only two possible answers—yes or no.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

63. After McDonald’s Canada introduced a Lighter Choice menu, its researchers conducted intercept
interviews in store and asked consumers, “What motivated you to buy a Veggie Burger?” and “If
you were to change the product in any way, how would you?” What are these examples of?
a. open-ended questions
b. dichotomous questions
c. scaled-response questions
d. multiple choice questions
ANS: A
The question encouraged an answer phased in the customer’s own words.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

7-16 Copyright © 2012 Nelson Education Limited


64. Suppose the Canadian Red Cross sent out a questionnaire that included the question, “Why are so
many people reluctant to donate blood?” What would this be an example of?
a. an open-ended question
b. a sampling frame question
c. a scaled-response question
d. a dichotomous response
ANS: A
Open-ended questions encourage unlimited answer choices phrased in the respondent’s own
words.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

65. You have been given the task of creating a questionnaire that requires each respondent to provide a
rich array of information based on his or her own frame of reference. Which of the following types
of questions would best deliver such information?
a. true-false questions
b. closed-ended questions
c. scaled-response questions
d. open-ended questions
ANS: D
Open-ended questions encourage unlimited answer choices phrased in the respondent’s own
words.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

66. When the marketing researcher for Avon Meadows Travel Agency was putting together its
questionnaire for studying the domestic travel market and the travel habits of people who travel at
least four times a year, it listed five possible answers for each question and asked the respondent to
choose one. What is this an example of?
a. sampling frame questions
b. open-ended questions
c. scaled-response questions
d. closed-ended questions
ANS: D PTS: 1 DIF: Application REF: p. 213
OBJ: 3 BLM: Higher order

67. In the survey Homer filled out after spending the night at a New Brunswick inn, he was asked,
“Have you ever stayed at an inn before your visit here? Circle YES or NO.” What type of question
is this?
a. scaled-response
b. open-ended
c. dichotomous
d. double-barrelled
ANS: C PTS: 1 DIF: Application REF: p. 213
OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-17


68. A survey by RoperASW asked consumers to state where they were most likely to look for
information about a new book. Choices were book club catalogues, book reviews in newspapers,
book reviews in magazines, television programs, friends, radio programs, local reading groups, or
the Internet. What type of question was used in this survey?
a. sampling frame
b. scaled-response
c. multiple choice
d. open-ended
ANS: C PTS: 1 DIF: Application REF: p. 213
OBJ: 3 BLM: Higher order

69. In a survey about new washing machine features, survey respondents were asked, “How often do
you wash clothes? Check one: once a month, twice a month, every week, twice a week, more than
twice a week.” What type of question is this?
a. scaled-response
b. open-ended
c. double-barrelled
d. dichotomous
ANS: A PTS: 1 DIF: Application REF: p. 213
OBJ: 3 BLM: Higher order

70. Which of the following is the BEST example of an effective question on a mail survey?
a. “What is the economy of scale achieved by the transference of heat through solar cells?”
b. “Do you believe the synergy of the indigenous population has created a precursor to
ecological disaster?”
c. “Have you ever put food out for wild birds?”
d. “Why do you think dogs make good pets and cats make poor pets?”
ANS: C
The correct alternative is the only question that is not ambiguous, does not use difficult
terminology, and asks only one question.

PTS: 1 DIF: Application REF: p. 214 OBJ: 3


BLM: Higher order

71. What type of research depends on watching what people do?


a. personal scanner
b. anonymous viewership
c. survey
d. observation
ANS: D PTS: 1 DIF: Definition REF: p. 215
OBJ: 3 BLM: Remember

7-18 Copyright © 2012 Nelson Education Limited


72. When people are hired to record traffic patterns in a shopping mall, what type of research are they
engaging in?
a. sample framing
b. observation
c. experimental
d. survey sampling
ANS: B
Research that does not rely on direct interaction with people is observation research.

PTS: 1 DIF: Comprehension REF: p. 215


OBJ: 3 BLM: Higher order

73. Mystery shoppers engage in a form of which of the following?


a. experiential study
b. market audit
c. mall intercept study
d. observation research
ANS: D PTS: 1 DIF: Definition REF: p. 215
OBJ: 3 BLM: Remember

74. In the late 1990s, Procter & Gamble launched Dryel product, which allowed consumers to
dry-clean their clothes in a dryer. Before launching the product, P&G researchers visited
consumers’ homes and watched as people sorted laundry, creating piles of darks, whites, and
delicates, and a pile that would go to the dry cleaners because they were unsure how to clean it.
This was an example of what type of research?
a. experiment
b. survey
c. mall intercept
d. observation
ANS: D PTS: 1 DIF: Application REF: p. 215
OBJ: 3 BLM: Higher order

75. A retailer of sporting goods equipment is interested in learning what peoples’ attitudes,
motivations, and feelings are about its product lines. All of the following are potential sources for
this information EXCEPT which one?
a. focus group interviews
b. observation study
c. telephone survey
d. mail questionnaire
ANS: B
Observation data does not provide good information on attitudes, motivations, or feelings.

PTS: 1 DIF: Comprehension REF: p. 215


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-19


76. The owner of a small amusement park wanted to know how his employees interacted with park
guests. Which of the following research methods is most appropriate for learning this information?
a. a mail questionnaire of a sample of current customers
b. a telephone survey of current and potential customers
c. an employee focus group interview
d. a mystery shopper
ANS: D
This is an appropriate research project for observation research. Mystery shoppers are one of the
two primary forms of observation research.

PTS: 1 DIF: Application REF: p. 215 OBJ: 3


BLM: Higher order

77. Murray Moman has a unique job. His mission is to walk the streets of Japan and locate fads.
According to Moman, “Japan is advanced. What will happen 10 years from now is already
happening in Japan.” What kind of research is Moman conducting?
a. observation
b. open-ended
c. experiment
d. survey
ANS: A
He is watching what people do.

PTS: 1 DIF: Application REF: p. 215 OBJ: 3


BLM: Higher order

78. What is characterized by the researcher’s altering one or more variables—such as price or package
design—while observing the effects of those alterations on another variable (usually sales)?
a. research problem
b. correlation of facts study
c. observation research project
d. experiment
ANS: D PTS: 1 DIF: Definition REF: p. 216
OBJ: 3 BLM: Remember

79. Which are the best experiments?


a. those in which all variables are held constant except the ones manipulated
b. those in which the subjects are unpaid volunteers
c. those in which all variables are allowed to act freely
d. those in which two variables are held constant while all of the others are manipulated
ANS: A
An experiment is characterized by the researcher changing one or more variables while observing
the effects of those changes on another variable.

PTS: 1 DIF: Comprehension REF: p. 216


OBJ: 3 BLM: Higher order

7-20 Copyright © 2012 Nelson Education Limited


80. Boston Pizza is trying to decide which of two potential new menu offerings it will add to its
restaurant menu across Canada. Which research method would be best suited to make this
decision?
a. on-line research
b. observation research
c. experimental research
d. mass telephone interviews
ANS: C PTS: 1 DIF: Application REF: p. 216
OBJ: 3 BLM: Higher order

81. C&S Manufacturing Company wants to add five square metres to its most popular rolls of
wrapping paper and keep the individual price of each roll at $4.95. C&S Manufacturing wonders if
the additional paper area would increase sales enough to offset the higher costs. What type of
primary data research should the company use to answer this question?
a. mail surveys with current distributors
b. experimental research
c. telephone interviews with current and potential customers
d. focus group interviews in a laboratory setting
ANS: B
An experiment is characterized by the researcher changing one or more variables while observing
the effects of those changes on another variable.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3


BLM: Higher order

82. A marketing executive for a company that manufacturers mobile telephones wonders if a new line
of phones in bright colours like tangerine and shocking pink will attract current nonusers of her
products and cause them to become users. To research this problem, what should she do?
a. Ask the sales force to interview each of their clients to see what their responses to the new
colours are.
b. Conduct a focus group and ask users and nonusers what they think about each of the new
colours.
c. Conduct an experiment that exposes some nonusers to the old product and others to the
new product colours, and measure the difference in responses between the two groups.
d. Conduct in-store personal interviews to ask potential buyers how they will respond to the
new colours.
ANS: C
To see whether changes in one market condition (the product) will cause a change in behaviour
(sales to nonusers), an experiment should be conducted.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-21


83. In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble
gum, what is the first question to be answered before a sampling plan is selected?
a. “Must the sample be representative of the population?”
b. “What is the population or universe of interest?”
c. “How large should the sample be in terms of its measurement costs?”
d. “How often should the sample be redesigned?”
ANS: B
The first step is the definition of the group from which the sample will be drawn.

PTS: 1 DIF: Comprehension REF: p. 216


OBJ: 3 BLM: Higher order

84. Marketing researchers will draw inferences or conclusions about larger target groups of consumers
through studying what?
a. a small population of the target consumer population
b. a small sample of the target consumer population
c. a small audience of the target consumer population
d. a small group of the target consumer population
ANS: B PTS: 1 DIF: Definition REF: p. 216
OBJ: 3 BLM: Remember

85. What type of sample is characterized by every element in the population having a known nonzero
probability of being selected?
a. probability
b. convenience
c. nonprobability
d. piggyback
ANS: A PTS: 1 DIF: Definition REF: p. 216
OBJ: 3 BLM: Remember

86. A research manager decides to pick households for interviews by selecting street intersections at
random, and then using a given route for the interviewers to follow—such as every fifth house on
the right side of the road until the end of the street and then turn east and interview every fifth
house on the left. What is this?
a. a sampling error
b. a convenience sample
c. a nonprobability sample
d. a probability sample
ANS: D
A probability sample is characterized by every element in the population having a known nonzero
probability of being selected, allowing an estimate of the accuracy of the sample.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3


BLM: Higher order

7-22 Copyright © 2012 Nelson Education Limited


87. While discussing an upcoming marketing research study of how the home decorating industry is
affected by the teenage consumer, you emphasize the necessity of having a sample that is
representative of the population. What type of sample must be used?
a. a convenience sample
b. a probability sample
c. a field service sample
d. a nonprobability sample
ANS: B
A probability sample is characterized by every element in the population having a known nonzero
probability of being selected, allowing an estimate of the accuracy of the sample.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3


BLM: Higher order

88. A hospital is interested in getting a cross-section of patients’ opinions on proposed changes that
will make the hospital stay more like a motel stay in terms of amenities. The hospital used a
random number table to select participants from the list of patients who are currently in the
hospital. What type of sample is this?
a. random
b. nonprobability
c. synergistic
d. representational
ANS: A PTS: 1 DIF: Application REF: p. 216
OBJ: 3 BLM: Higher order

89. In what type of sample is little or no attempt made to obtain a representative cross-section of the
population?
a. nonprobability
b. representational
c. probability
d. random
ANS: A PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

90. Which of the following BEST describes nonprobability samples?


a. They include any sample in which little is done to obtain a representative cross-section of
the population.
b. They often start out with random numbers to ensure selection of subjects is truly random.
c. By definition, they must be representative of the population.
d. They require more expensive marketing research than probability sampling.
ANS: A
A nonprobability sample is any sample in which there is little or no attempt to obtain a
representative cross-section of the population.

PTS: 1 DIF: Comprehension REF: p. 217


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-23


91. Will Otley is the buyer for a sports equipment store. He is interested in learning more about the
needs of people who participate in individual sports such as weight lifting and aerobics. Otley has
decided to survey the people at his gym for information. What type of sample is Otley gathering?
a. representational
b. random
c. convenience
d. probability
ANS: C PTS: 1 DIF: Application REF: p. 217
OBJ: 3 BLM: Higher order

92. Larry has to interview 20 people who are not part of the college community for his marketing
research class project and decides to use his relatives and their neighbours. What type of sample is
this?
a. representational
b. random
c. convenience
d. probability
ANS: C
A convenience sample is based on using respondents who are readily accessible.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

93. After Mystery on Demand bookstore received the results of a survey that measured readers’
intentions to purchase a newly discovered Agatha Christie mystery as soon as it was released, the
store owner worried that many readers might have overstated their intentions and would not
actually buy. The owner was concerned about the potential for what kind of sampling error?
a. nonresponse
b. frame
c. random
d. measurement
ANS: D PTS: 1 DIF: Application REF: p. 217
OBJ: 3 BLM: Higher order

94. What occurs when a sample, in some ways, is not representative of the target population?
a. diagnostic error
b. single-source research
c. measurement error
d. sampling error
ANS: D PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

7-24 Copyright © 2012 Nelson Education Limited


95. What is one type of sampling error, which is created when the sample actually interviewed differs
from the sample drawn?
a. random error
b. measurement error
c. diagnostic error
d. sampling error
ANS: D PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

96. If the sampling error cannot be calculated because of the method used to collect the sample, the
market researcher has used which of the following?
a. a probability sample
b. a random sample
c. a nonprobability sample
d. a statistical sample
ANS: C PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

97. Five hundred women were surveyed about their thoughts on Martha Stewart. The majority
admired her creativity but would not trust her as a friend. Because it used subscribers to her
magazine as survey participants, the survey was what type of sample?
a. convenience
b. random
c. framing
d. representational
ANS: A
Convenience samples use respondents who are convenient or readily accessible.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

98. What type of error arises if the sample drawn from a population differs from the target population?
a. measurement
b. frame
c. field
d. nonresponse
ANS: B PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

99. What type of error occurs when the selected sample is an imperfect representation of the overall
population?
a. field
b. random
c. representational
d. frame
ANS: B PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

Copyright © 2012 Nelson Education Limited 7-25


100. Which of the following specialize in arranging interviews for data collection on a subcontract
basis, and also conduct focus groups, mall intercepts, retail audits, and other data collection
services?
a. single-source researchers
b. marketing information organization companies
c. decision support companies
d. field service firms
ANS: D PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

101. A researcher wants to determine what percentage of the population in southern Ontario would use
a mass transit system if it were well maintained. He gets telephone books from every city with
over 50,000 people and selects the fifteenth name in the middle column on every 100th page as his
sample. He has made what type of error?
a. nonprobability
b. random
c. reliability
d. frame
ANS: D
He has made a frame error because not everyone has a listed telephone number.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

102. Several types of analysis are common to marketing research. Which one provides a general picture
of the results of the study and is the simplest, noting how many respondents answered a question a
certain way?
a. one-way frequency tables
b. scaled responses
c. passive people meters
d. statistical analyses
ANS: A PTS: 1 DIF: Definition REF: p. 217
OBJ: 3 BLM: Remember

103. In a survey for her marketing class, Alicia interviewed 80 randomly selected men and asked them
their opinions of women with tans. Her initial results showed that the men overwhelmingly
believed tans were a health risk. When she conducted the same survey using the same
methodology, she discovered that 50 percent of the surveyed population in the second group find
women with tans sexy. This is most likely an example of what type of error?
a. nonprobability
b. representational
c. reliability
d. random
ANS: D
A random error occurs when the results of two surveys conducted in the same manner differ.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

7-26 Copyright © 2012 Nelson Education Limited


104. Kent has gathered data concerning people’s preferences for traditional breakfast foods. He has
learned that 30 percent of the population prefer eggs in the morning, 50 percent of the population
prefer something sweet for breakfast like a doughnut, and an overwhelming 86 percent prefer food
that they can eat while they drive to work. What method of analyzing the data has Kent used?
a. cross-tabulation
b. one-way frequency
c. standard deviation
d. linear regression
ANS: B PTS: 1 DIF: Application REF: p. 217
OBJ: 3 BLM: Higher order

105. Which of the following permit the analyst to relate the responses to one question to the response to
one or more other questions when assessing marketing research data?
a. correlation analyses
b. one-way frequency counts
c. standard deviation measures
d. cross-tabulations
ANS: D PTS: 1 DIF: Definition REF: p. 218
OBJ: 3 BLM: Remember

106. If a researcher wanted to look at responses to pet ownership questions as they relate to age and
educational level of respondent, what analysis approach would he or she use?
a. scaled responses
b. standard deviation measures
c. cross-tabulations
d. passive people meters
ANS: C
Cross-tabulations permit the analyst to relate the responses to one question to the response to one
or more other questions.

PTS: 1 DIF: Application REF: p. 218 OBJ: 3


BLM: Higher order

107. According to the text, which of the following statements about preparing and presenting the
market research report is true?
a. Put the report in a language that the presenter is comfortable using.
b. The report should begin with a clear, concise statement of the research project’s
objectives.
c. Rely on hunches or managerial intuition instead of costly research for data analysis.
d. Never present the report orally.
ANS: B
Intuition is not what someone who has been paid to conduct marketing research should use.
Research reports are typically presented orally and in writing. The language of the report should be
tailored to suit the audience’s need—not that of the presenter.

PTS: 1 DIF: Comprehension REF: p. 219


OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-27


108. Which of the following statements explains the success of Internet marketing research?
a. It decreases the ability to respond quickly to customer needs and market shifts.
b. It allows for faster and better decision making through more rapid access to business
intelligence.
c. Its use makes it much harder to conduct follow-up studies.
d. It increases labour- and time-intensive research activities and associated costs.
ANS: B PTS: 1 DIF: Comprehension
REF: p. 220 OBJ: 4 BLM: Higher order

109. Tracey Dyer works for Recipher Marketing, a market research firm. She has determined over the
past couple of years that Internet survey research has several advantages over traditional research
methods. Which of the following is an advantage?
a. rapid analysis
b. decreased access to the “hard to reach”
c. less personal interaction
d. reduced cost
ANS: D PTS: 1 DIF: Application REF: p. 221
OBJ: 4 BLM: Higher order

110. To determine how people reacted to the bombing of the World Trade Center, an Internet survey
was conducted. Anyone who wanted to express his or her feelings about the event was allowed to
participate. What type of sample did this survey use?
a. interactive
b. framed Internet
c. unrestricted Internet
d. restricted Internet
ANS: C PTS: 1 DIF: Comprehension
REF: p. 221 OBJ: 4 BLM: Higher order

111. Which of the following is an advantage associated with the use of Internet surveys?
a. ability to get analysis results much more rapidly
b. ability to standardize the survey
c. ability to contact hard-to-reach respondents
d. increased labour costs even though data-collection costs decrease
ANS: C PTS: 1 DIF: Comprehension
REF: p. 221 OBJ: 4 BLM: Higher order

112. How might Internet samples be classified?


a. as unrestricted, screened, and recruited
b. as traditional, panel, and longitudinal
c. as random, recruited, and mined
d. as convenience, quota, and probability
ANS: A PTS: 1 DIF: Definition REF: p. 221-223
OBJ: 4 BLM: Remember

7-28 Copyright © 2012 Nelson Education Limited


113. Which type of Internet sample would be used by a consumer products company that already has a
database from which to select its sample?
a. representational
b. recruited
c. mined
d. conventional
ANS: B PTS: 1 DIF: Definition REF: p. 223
OBJ: 4 BLM: Remember

114. What is the moderator’s role in cyber focus groups?


a. to let respondents control the discussion
b. to make sure costs remain relatively low
c. to limit discussion to closed-ended questions
d. to provide freestyle screen dialogue including text, instructions, and probes
ANS: D
One of the most difficult jobs of the moderator is to control the discussion.

PTS: 1 DIF: Comprehension REF: p. 224


OBJ: 4 BLM: Higher order

115. What are the two types of on-line focus groups?


a. individual and panel
b. real-time and time-extended
c. field and laboratory
d. diagnostic and predictive
ANS: B PTS: 1 DIF: Definition REF: p. 224
OBJ: 4 BLM: Remember

116. What do marketing researchers use the Internet for?


a. collaboration between the client and the research supplier in the management of a research
project
b. publication and distribution of sample surveys
c. sending out on-line coupons
d. distribution of financial results
ANS: A PTS: 1 DIF: Comprehension
REF: p. 225 OBJ: 4 BLM: Higher order

117. Which of the following is an advantage associated with cyber focus groups?
a. speed
b. accessibility to older consumers
c. respondents won’t exaggerate
d. narrow geographic scope
ANS: A PTS: 1 DIF: Comprehension
REF: p. 225 OBJ: 4 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-29


118. Which of the following gathers its information from one group of respondents by continuously
monitoring the advertising, promotion, price they are exposed to, and what is subsequently
purchased to create a huge database of marketing efforts and resultant consumer behaviour?
a. one-way-mirror observation study
b. scanner-based research system
c. CLT interview
d. television meter investigation
ANS: B PTS: 1 DIF: Definition REF: p. 226
OBJ: 5 BLM: Remember

119. What type of research continuously monitors consumer purchases linked to their exposure to
various marketing mix inputs?
a. primary research
b. scanner-based research
c. secondary research
d. focus group research
ANS: B PTS: 1 DIF: Definition REF: p. 226
OBJ: 5 BLM: Remember

120. A regional supermarket chain gathers monthly information from the same consumers. It
continuously monitors the in-store promotion the consumers are exposed to and records their
purchases. It uses the mail to send different promotions to different areas, and consumers complete
diaries recording grocery purchases in return for a small fee. What is this an example of?
a. a CLT interview
b. scanner-based research system
c. machinated observation
d. the use of a people meter
ANS: B
Scanner-based research systems gather information over time from a single panel of respondents
using UPC scanner information time. This is an attempt to develop an accurate picture of the direct
causal relationship between marketing efforts and actual sales.

PTS: 1 DIF: Application REF: p. 226 OBJ: 5


BLM: Higher order

121. IRI panel members shop with an ID card, which is presented at checkout in scanner-equipped
grocery and drug stores, allowing IRI to electronically track each household’s purchasing over
time. This information on the household members is a product called which of the following?
a. BehaviourScan
b. InfoScan
c. Scanner Plus
d. Nielsen Data
ANS: A PTS: 1 DIF: Definition REF: p. 226
OBJ: 5 BLM: Higher order

7-30 Copyright © 2012 Nelson Education Limited


122. What is a scanner-based, national market tracking service for the consumer packaged goods
industry that tracks retail sales, consumer purchasing information, and promotional activity for all
bar-coded products?
a. Scanner Plus
b. Nielsen Data
c. VideOCart
d. InfoScan
ANS: D PTS: 1 DIF: Definition REF: p. 226
OBJ: 5 BLM: Higher order

123. When should marketing research NOT be undertaken?


a. when there is no secondary data in existence to guide the project definition
b. when the perceived costs are the same as the forecasted benefits
c. when it will take a long time to complete
d. when the actual costs are less than the forecasted benefits
ANS: B
The future benefits of the research must outweigh the cost of performing the research.

PTS: 1 DIF: Comprehension REF: p. 226-227


OBJ: 5 BLM: Higher order

124. Because some companies have been conducting market research for many years on particular
markets they are interested in, they understand the characteristics of target customers. For this
reason, when should marketing research NOT be undertaken?
a. when the actual costs are less than the forecasted benefits
b. when there is no secondary data in existence to guide the project definition
c. when the perceived costs are the same as the forecasted benefits
d. when the research would be redundant and a waste of money
ANS: D
The future benefits of the research must outweigh the cost of performing the research.

PTS: 1 DIF: Comprehension REF: p. 226-227


OBJ: 5 BLM: Higher order

125. What does competitive intelligence allow managers to do?


a. predict changes in business relationships
b. influence a competitor’s strategy
c. learn about the impact of proposed government legislation on other industries
d. learn about new technologies that can affect the country
ANS: A PTS: 1 DIF: Comprehension
REF: p. 227 OBJ: 6 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-31


126. In order for a firm to become a more efficient and effective competitor, it can assess its
competition. What does such a competitive assessment require a company to engage in?
a. an audit
b. a competitive advantage
c. competitive intelligence
d. a differential competitive advantage
ANS: C PTS: 1 DIF: Definition REF: p. 227
OBJ: 6 BLM: Remember

127. Annual reports, websites, advertisements, and trade shows are all sources of which of the
following?
a. primary data
b. competitive intelligence
c. promotion
d. survey research
ANS: B PTS: 1 DIF: Definition REF: p. 227
OBJ: 6 BLM: Remember

128. Bruno Harkin would like to open a local delivery service in his hometown, but he has no idea who
his competitors might be. Harkin should first use which of the following external sources of
competitive intelligence?
a. the Yellow Pages of his hometown phone book
b. the Internet
c. advertisements in the local newspaper
d. federal government business licensing applications
ANS: A
The Yellow Pages are a good first source for competitive intelligence, especially for a local
marketplace.

PTS: 1 DIF: Application REF: p. 227 OBJ: 6


BLM: Higher order

7-32 Copyright © 2012 Nelson Education Limited


Observers of the supermarket industry see no letup in the use of checkout-counter-based target
marketing. Sav-More Supermarkets has installed an electronic marketing system in its stores.
The system allows the stores to do more direct mail promotions by combining the current
Sav-More’s cheque-cashing cards with the new Sav-More’s Bonus Club frequent-shopper
cards. The new system uses barcode scanners and magnetic cards issued to shoppers to track all
purchases. As with most customer databases, demographic information is gathered for
subsequent offers to frequent-shopper club members, and psychographic information is tracked
whenever customers use the magnetic strip cards to make purchases. Generally, marketing to
these consumers achieves better results than free-standing insert (FSI) coupons.

129. Refer to Sav-More Supermarkets. Sav-More management is continually provided with


information to make better marketing decisions. This data is easily accessed and manipulated.
What is this type of system called?
a. a marketing research system
b. a marketing information system
c. a competitive intelligence system
d. a marketing decision support system
ANS: D
An interactive, flexible system that enables a manager to obtain and manipulate information is a
marketing decision support system.

PTS: 1 DIF: Application REF: p. 200 OBJ: 1


BLM: Higher order

130. Refer to Sav-More Supermarkets. What is the creation of a large computerized file of customers’
demographic and psychographic characteristics through the new Sav-More system called?
a. survey research
b. database marketing
c. secondary data
d. situation analysis
ANS: B
Database marketing is the creation of a large computerized file of customers’ and potential
customers’ profiles and purchase patterns.

PTS: 1 DIF: Application REF: p. 200 OBJ: 1


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-33


131. Refer to Sav-More Supermarkets. Al Edisto, Sav-More’s frozen food manager, noticed that sales
of orange juice have fallen, and he wanted to set up a marketing research project to determine
possible reasons for the decline. He first studied the data from the database system discussed
above. What are these data?
a. secondary
b. representational
c. single-source
d. primary
ANS: A
Secondary data are data collected for any purpose other than the one at hand.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

132. Refer to Sav-More Supermarkets. Al Edisto, Sav-More’s frozen food manager, decided the best
way to determine what is causing the drop in orange juice sales was to conduct a survey among
shoppers in the frozen-food section of Sav-More. What are the data Edisto collected?
a. single-source
b. secondary
c. dichotomous
d. primary
ANS: D
Information that is collected for the first time for the purpose of solving a particular problem under
investigation is called primary data.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3


BLM: Higher order

133. Refer to Sav-More Supermarkets. Al Edisto, Sav-More’s frozen food manager, decided to survey
each customer who stops in front of the frozen orange juice section on Saturday. What type of
sample is Edisto using for his research project?
a. convenience
b. simple random
c. stratified
d. piggyback
ANS: A
The convenience sample is based on using respondents who are convenient or readily accessible to
the researcher.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

7-34 Copyright © 2012 Nelson Education Limited


Erica Cicarelli is an advertising sales representative for CHEZ, a radio station that has a play
list limited to recordings from the 1980s. Cicarelli believes the listener ratings of her station
provided by a marketing research company are inaccurate. CHEZ is ranked 25th in the city.
Cicarelli believes her station is more likely ranked at least 10th and possibly higher with young
professional listeners. Listener rankings determine the rates Cicarelli can charge for advertising
time. Cicarelli decided her station needed to conduct its own ratings study to determine the size
of the audience and a profile of current listeners. First, Cicarelli reviewed all data from the
current ratings providers to see if she could find any trends in listenership. Next, she completed
a background investigation of her station, competitive stations, and the market to determine
what the ratings problem may be.

Cicarelli then prepared a questionnaire for current and potential listeners. The questionnaire
contained a long list of yes/no questions on whether the respondent listens to a specific station.
The data were collected via telephone with 1,000 radio listeners using random-digit dialling.
Cicarelli chose telephone interviewing because previous research has shown that nearly 100
percent of radio listeners have telephones, and it is faster than mail surveys.

134. Refer to CHEZ. Cicarelli’s initial background study of her company, competitors, and market
represents which step in the marketing research decision process?
a. analyzing the data
b. specifying the sampling procedures
c. planning the research design
d. defining the marketing problem
ANS: D
Cicarelli is conducting a situation analysis to identify and structure the marketing problem.

PTS: 1 DIF: Application REF: p. 203 OBJ: 3


BLM: Higher order

135. Refer to CHEZ. Cicarelli’s review of the current research information represents a study of what
type of data?
a. primary
b. representational
c. single-source
d. secondary
ANS: D
Secondary data are data previously collected for any purpose other than the one at hand.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-35


136. Refer to CHEZ. Cicarelli’s research design involves utilizing a questionnaire via telephone. This
method best represents which type of research?
a. survey
b. laboratory test
c. experimental
d. single-source
ANS: A
In survey research, the researcher interacts with people to obtain facts, opinions, and attitudes.
Telephone interviewing is a type of survey research.

PTS: 1 DIF: Application REF: p. 211 OBJ: 3


BLM: Higher order

137. Refer to CHEZ. The yes/no questions about listening to particular stations are an example of
which of the following?
a. sampling frame questions
b. open-ended questions
c. dichotomous questions
d. scaled-response questions
ANS: C
A dichotomous question is one that features only two alternatives.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

138. Refer to CHEZ. What type of sampling plan is Cicarelli using?


a. a probability sample
b. a quota sample
c. a convenience sample
d. a nonprobability sample
ANS: A
Cicarelli has chosen a probability sample by utilizing random-digit dialling among a population
that has telephones.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3


BLM: Higher order

7-36 Copyright © 2012 Nelson Education Limited


According to marketing research by the Specialty Equipment Market Association (SEMA), a
growing number of people want to buy compact performance cars and customize them. They
want to turn Honda Civics, Acura Integras, and Mitsubishi Eclipses into personalized
statements of automotive expression. Eighty-four percent of these people are under 30, and 42
percent are Asian-Canadian. More than 80 percent of them are men. SEMA research shows
that a high percentage of this population is interested in finding a domestic car that can be
customized. At a recent automotive after-market show, Ford showed three Focus-based concepts
to demonstrate its seriousness about reaching this market.

139. Refer to SEMA. The type of research gathered by SEMA would have which of the following
roles?
a. predictive
b. descriptive
c. subjective
d. fictional
ANS: B
Marketing research that is descriptive is the gathering and presenting of factual statements.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2


BLM: Higher order

140. Refer to SEMA. Since the SEMA research was not done specifically for Ford, how would it be
classified?
a. as primary data
b. as secondary data
c. as predictive data
d. as descriptive data
ANS: B
Secondary data are data previously collected for another purpose.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

141. Refer to SEMA. The SEMA research was done by asking questions such as, “What features have
you added to your car that best reflect your personality?” This type of question is an example
which of the following?
a. a scaled-response question
b. a close-ended question
c. an open-ended question
d. a multiple-answer question
ANS: C
With an open-ended question, the interviewer encouraged the respondent to answer in his or her
own words.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3


BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-37


142. Refer to SEMA. What type of research would have been done if SEMA researchers went to
parking lots and counted the number of customized vehicles and noted the different ways they
were customized?
a. experimental
b. nonprobability survey
c. observation
d. probability sample
ANS: C
Observation research is people watching what people do.

PTS: 1 DIF: Application REF: p. 215 OBJ: 3


BLM: Higher order

143. Refer to SEMA. If the result of the SEMA research was an imperfect representation of the overall
population, what type of error would have occurred?
a. random
b. framed
c. quantitative
d. sampling
ANS: A PTS: 1 DIF: Application REF: p. 216
OBJ: 3 BLM: Higher order

Generally speaking, the digital divide is defined as the gap between those people who have
computers and computer skills and those who do not. For companies considering marketing on
the Internet, the digital divide measures the percentage of a segment using the Internet.
Forrester Research wanted to see if the digital divide was as wide as some experts thought.
According to research conducted by Forrester, in Canada 43 percent of white households , 33
percent of African American households, 47 percent of South Asian households, and 69 percent
of Chinese households are on the Internet. This information becomes more interesting when
Statistics Canada data are used that show that only 2 percent of the total population in Canada
is Chinese.

144. Refer to Digital Divide. How would the marketing research conducted by Forrester be
categorized?
a. as descriptive
b. as memorable
c. as diagnostic
d. as predictive
ANS: A
Forrester Research wanted to see if the digital divide was as large as some people thought.

PTS: 1 DIF: Comprehension REF: p. 201


OBJ: 2 BLM: Higher order

7-38 Copyright © 2012 Nelson Education Limited


145. Refer to Digital Divide. A retailer that used the Forrester Research to target its Internet retailing
website to select an ethnic group for target marketing would be using what type of sample?
a. random
b. secondary
c. primary
d. representational
ANS: A
The data were previously collected for another purpose.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

146. Refer to Digital Divide. Included in the survey by Forrester Research was information on income
and education. The income question asked the respondent if he or she earned less than $20,000,
between $20,001 and $30,000, between $30,001 and $40,000, between $40,001 and $50,000, or
more than $50,000. This is an example of what type of question?
a. open-ended
b. scaled-response
c. multiple choice
d. Likert scale
ANS: C
The respondent is asked to choose from a limited list of responses.

PTS: 1 DIF: Comprehension REF: p. 213


OBJ: 3 BLM: Higher order

147. Refer to Digital Divide. If all people with computers were allowed to participate in the survey,
what type of error would exist?
a. random
b. frame
c. measurement
d. sampling
ANS: D
The target population is both computer owners and people who do not own computers.

PTS: 1 DIF: Comprehension REF: p. 217


OBJ: 3 BLM: Higher order

148. Refer to Digital Divide. During which step of the marketing research process would Forrester
Research have discovered that the digital divide is largely due to income and educational
inequities?
a. problem identification
b. data analysis
c. report presentation
d. sampling procedure specifications
ANS: B PTS: 1 DIF: Application REF: p. 217
OBJ: 3 BLM: Higher order

Copyright © 2012 Nelson Education Limited 7-39


Research by Morgan Stanley revealed that 72 percent of Canada is willing to try flavoured
colas. Since the cola industry is stagnant in most areas of the country, this is important data.

149. Refer to Morgan Stanley. Marketing research on how best to use this information will begin with
which of the following steps?
a. collection of the data
b. research design
c. recognition of the marketing opportunity
d. specification of the sampling plan
ANS: C
Marketing research can hone in and clarify where the best opportunities lie.

PTS: 1 DIF: Application REF: p. 203 OBJ: 3


BLM: Higher order

150. Refer to Morgan Stanley. The research also showed which flavours were most desired. Cola
producers using this information provided to them by Morgan Stanley would be using what sort of
data?
a. observation
b. primary
c. secondary
d. convenience
ANS: C
It is secondary data, which have been previously collected for some other purpose and may not fit
the current research problem.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3


BLM: Higher order

To determine new product opportunities, British Colombia’s Sun-Rype Products conducted


focus groups in which it learned Canadians are having trouble getting their required servings of
fruits and vegetables each day—especially the vegetables.

151. Refer to Fruits. What type of data did it gather?


a. consensual
b. heuristic
c. collaborative
d. primary
ANS: D PTS: 1 DIF: Application REF: p. 207
OBJ: 3 BLM: Higher order

152. Refer to Fruits. What type of research methods did Sun-Rype use?
a. mall intercept
b. survey
c. experiment
d. observation
ANS: B PTS: 1 DIF: Application REF: p. 211
OBJ: 3

7-40 Copyright © 2012 Nelson Education Limited


When the Toronto Symphony Orchestra wanted to determine how to make classical music
appeal to younger concertgoers, it hired CMN to conduct a survey. It was important that the
survey had a relatively low cost and offered anonymity to respondents to ensure candid answers.

153. Refer to Toronto Symphony Orchestra. Which form of survey research should CMN have used?
a. mall intercept interviews
b. in-home personal interview
c. CLT interviews
d. mail survey
ANS: D
Relatively low cost and respondent anonymity are two of the benefits of mail surveys.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3


BLM: Higher order

154. Refer to Toronto Symphony Orchestra. What is CMN most likely an example of?
a. a decision support company
b. a marketing research diagnostics firm
c. a field service firm
d. a knowledge portal
ANS: C
Field service firms specialize in interviewing respondents on a subcontracted basis.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3


BLM: Higher order

TRUE/FALSE

1. A marketing decision support system is an interactive, flexible computerized data storage system
that bypasses information-processing specialists and gives managers access to useful information
from their own desks.

ANS: T PTS: 1 DIF: Definition REF: p. 196


OBJ: 1

2. The only connection between database marketing and decision support systems is that they both
operate on computers.

ANS: F
The fastest-growing use of DSS probably is for database marketing,

PTS: 1 DIF: Definition REF: p. 196 OBJ: 1

3. The three roles of marketing research are persuasive, reminder, and informative.

ANS: F
The three roles are descriptive, diagnostic, and predictive.

PTS: 1 DIF: Definition REF: p. 197 OBJ: 2

Copyright © 2012 Nelson Education Limited 7-41


4. A decision support system (DSS) involves the planning, collection, and analysis of data relevant to
marketing decision making, and the communication of the results of this analysis to management.

ANS: F
This defines marketing research.

PTS: 1 DIF: Definition REF: p. 197 OBJ: 2

5. Marketing research provides decision makers with data on the effectiveness of the current
marketing mix and also insights for necessary changes.

ANS: T PTS: 1 DIF: Definition REF: p. 197


OBJ: 2

6. When the Witchduck Diner, serving Caribbean cuisine, first opened in Wasaga Beach, it drew
novelty seekers but few of the several hundred business people who worked within five kilometres
of the restaurant. The owner’s recognition that a problem exists is the first step in the marketing
research process.

ANS: T PTS: 1 DIF: Application REF: p. 201


OBJ: 3

7. To save money on marketing research, a marketing manager suggests the company use the results
of a survey conducted last year because similar questions were asked then. The manager is
suggesting use of secondary data.

ANS: T PTS: 1 DIF: Application REF: p. 205


OBJ: 3

8. Internal company information such as invoices, data from previous marketing research studies, and
historical sales data are sources of secondary data.

ANS: T PTS: 1 DIF: Comprehension


REF: p. 202 OBJ: 3

9. The quality of secondary data should never be questioned.

ANS: F
Secondary data often cannot be evaluated according to its reliability.

PTS: 1 DIF: Comprehension REF: p. 202


OBJ: 3

10. Metasearch engines have proven impractical for most marketing research projects.

ANS: F
According to the text, metasearch engines can be very useful in doing Internet research.

PTS: 1 DIF: Comprehension REF: p. 203


OBJ: 3

7-42 Copyright © 2012 Nelson Education Limited


11. Stuart Marketing Research is gathering information on the way people wrap gifts. The research is
specifically for a large manufacturer of gift wrap paper that is considering introducing reusable
wrapping paper with Velcro fasteners. This information gathered would be an example of primary
data.

ANS: T PTS: 1 DIF: Application REF: p. 205


OBJ: 3

12. The most popular technique for gathering primary data is statistical analysis.

ANS: F
RAT:The most popular technique for gathering primary data is survey research.

PTS: 1 DIF: Application REF: p. 206 OBJ: 3

13. Shayla Wong is considering mall intercept interview techniques for collecting some primary data.
She can choose between computer-assisted personal interviewing and computer-assisted
self-interviewing.

ANS: T PTS: 1 DIF: Definition REF: p. 207


OBJ: 3

14. Sundeep Thind would be engaged in observation research if she asked people in a discount store to
show her what they had purchased.

ANS: F
There is no interaction between the observer and the person being observed in observation
research.

PTS: 1 DIF: Application REF: p. 215 OBJ: 3

15. The best experiments are those in which all factors are held constant except the ones deliberately
manipulated.

ANS: T PTS: 1 DIF: Definition REF: p. 216


OBJ: 3

16. A random sample is a carefully developed probability sample set up to ensure that every member
of the population has an equal chance of being selected as part of the sample.

ANS: T PTS: 1 DIF: Definition REF: p. 216


OBJ: 3

17. Researcher Susan Brandon was interested in how the human resources department at her company
might better address some of the issues facing its employees. To collect data on this issue, she
interviewed the employees in her department. Brandon has used a random sampling procedure.

ANS: F
This describes a convenience sample.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3

Copyright © 2012 Nelson Education Limited 7-43


18. Measurement error occurs when the sample who was actually interviewed differs from the sample
drawn and the target population.

ANS: F
This is the definition of sampling errors.

PTS: 1 DIF: Definition REF: p. 217 OBJ: 3

19. Once adequate amounts of data have been collected, the researcher should present the report.

ANS: F
The data must be analyzed and interpreted before a meaningful report can be prepared.

PTS: 1 DIF: Comprehension REF: p. 217


OBJ: 3

20. An example of a good open-ended question would be, “Do you prefer auburn or blonde highlights
in your hair?”

ANS: F
This is a close-ended question. It is not probing.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3

21. Among the advantages claimed for cyber focus groups are speed, cost effectiveness, broad
geographic scope, accessibility, and honesty.

ANS: T PTS: 1 DIF: Comprehension


REF: p. 225 OBJ: 4

22. Scanner-based research is a system of gathering information on respondents by continuously


monitoring the promotions panel members are exposed to and their subsequent purchase
behaviour.

ANS: T PTS: 1 DIF: Comprehension


REF: p. 226 OBJ: 5

23. The two major scanner data suppliers are Information Resources Incorporated (IRI) and the A.C.
Nielsen Company; each has about half the market for single-source research.

ANS: T PTS: 1 DIF: Definition REF: p. 226


OBJ: 5

24. Cawfee Café has successfully operated 7 restaurants in the same community for 20 years.
Management plans to introduce an egg-and-cheese breakfast burger to three restaurants after
having success with this product in its other four diners. Cawfee Café doesn’t need to conduct
research before introducing the new product to its remaining restaurants.

ANS: T PTS: 1 DIF: Application REF: p. 226-227


OBJ: 5

7-44 Copyright © 2012 Nelson Education Limited


25. Competitive intelligence allows managers to predict changes in business relationships, identify
marketplace opportunities, and discover new or potential competitors.

ANS: T PTS: 1 DIF: Definition REF: p. 227


OBJ: 6

26. Government agencies, newspapers, and trade shows are good sources of competitive intelligence.

ANS: T PTS: 1 DIF: Comprehension


REF: p. 227 OBJ: 6

ESSAY

1. What is a marketing DSS? Name and briefly describe three characteristics of a true DSS.

ANS:
A decision support system (DSS) is an interactive, flexible information system that enables
managers to obtain and manipulate information as they are making decisions. Characteristics of a
true DSS include the following. It is:

Interactive. Managers give instructions and see immediate results. The manager does not rely on a
computer programmer, an information processing specialist, or a scheduled report.

Flexible. The system can sort, regroup, total, average, and otherwise manipulate data in many
ways according to the varied needs of each user.

Discovery-oriented. The system helps managers probe for trends, isolate problems, and ask new
questions.

Accessible. The system is easy to learn and should be immediately usable to computer novices.

PTS: 1 DIF: Application REF: p. 200 OBJ: 1

2. What is marketing research? Name and briefly describe the three functional roles of marketing
research.

ANS:
Marketing research entails planning, collecting, and analyzing data relevant to marketing decision
making, and communicating results of this analysis to management. Marketing research provides
decision makers with data on the effectiveness of current marketing strategies. Marketing research
is the primary data source for the marketing DSS. The three functional roles of marketing research
are descriptive, diagnostic, and predictive.

The descriptive role of marketing research includes gathering and presenting factual statements.
The diagnostic role of research explains and assigns meaning to data. The predictive role allows
the researcher to use the descriptive and diagnostic research to predict the results of a planned
marketing decision.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2

Copyright © 2012 Nelson Education Limited 7-45


3. Marketing research is important to management because it helps managers in several ways.
Discuss three major benefits of marketing research to managers.

ANS:
Improving the quality of decision making. Marketing research improves the quality of marketing
decision making by exploring the desirability of various marketing alternatives.

Tracing problems. Managers might use research to find out why something did not work as
planned. Marketing research can identify incorrect decisions, changes in the external environment,
and strategic errors.

Focusing on the paramount importance of keeping existing customers. Marketing research helps
companies measure the level of existing customer satisfaction. Costs fall because companies do
not have to replace defectors. Steady customers are easier to serve. Increased customer retention
also leads to increased employee job satisfaction.

Understanding the ever-changing marketplace. Marketing research provides insight into questions
about the marketplace. Marketing research can help managers develop the marketing mix by
providing insights into lifestyles, preferences, and purchasing habits of target consumers.

PTS: 1 DIF: Application REF: p. 201 OBJ: 2

4. List in order the seven steps of the marketing research process.

ANS:
1. Define the marketing problem.
2. Plan the research design and gather primary data.
3. Specify the sampling procedures.
4. Collect the data.
5. Analyze the data.
6. Prepare and present the report.
7. Follow up.

PTS: 1 DIF: Application REF: p. 203 OBJ: 3

5. What are secondary data? List four major sources of secondary data. Why do most research efforts
rely on secondary data and usually collect secondary data before primary data is collected?

ANS:
Secondary data are data that have been previously collected for any purpose other than the one at
hand. Secondary data can be either external or internal. Major sources of secondary data include
historical internal information, market research firms, trade associations, university research
bureaus, professional associations, foundations, commercial publications, and government data.
Secondary data can ordinarily be obtained quickly and at relatively low cost. Secondary data
investigation allows better preparation for primary data collection.

PTS: 1 DIF: Application REF: p. 205 OBJ: 3

7-46 Copyright © 2012 Nelson Education Limited


6. What are primary data? What are three methods that marketing researchers use to gather primary
data? What is a piggyback study?

ANS:
Primary data is information collected for the first time for the purpose of solving a particular
problem.

The most popular technique for gathering primary data is through survey research in which a
researcher interacts with consumers to elicit information. Another method is by observation, in
which consumer behaviours are observed, but no interaction takes place. Finally, experiments can
be used by a researcher to collect primary data.

One technique used to save money during primary data collection is to piggyback the studies; that
is, to gather data on two different projects using one questionnaire.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3

7. What is the difference between primary and secondary data? Name two advantages and two
disadvantages for using each type of data.

ANS:
Primary data is information that is collected for the first time for the purpose of solving a
particular problem under investigation. Secondary data are data that have been previously
collected for any purpose other than the one at hand.

Advantages of primary data: (1) They will answer a specific research question that cannot be
answered by secondary data, (2) the data is current, (3) the source is known to the researcher, (4)
the methodology is specified and controlled by the researcher, and (5) the information is
proprietary.

Disadvantages of primary data: (1) expense, (2) time consumption, and (3) possible lowered
quality of data collection to save money.

Advantages of secondary data: (1) saving time, (2) saving money, (3) assisting in problem
statement formulation, (3) providing suggestions for research methods and other types of data
needed for solving the problem, (4) pinpointing people and locations to approach, and (5) serving
as a source of comparative data by which primary data can be analyzed and evaluated.

Disadvantages of secondary data: (1) mismatch between the unique problem and the secondary
data already collected for a different specific problem, (2) inability to answer specific questions
relevant to the problem at hand, and (3) possible poor quality of the data.

PTS: 1 DIF: Application REF: p. 207 OBJ: 3

Copyright © 2012 Nelson Education Limited 7-47


8. What is survey research? How does survey research differ from observation research? Name six
popular forms of survey research.

ANS:
Survey research is a technique for gathering primary data. A survey involves the researcher
interacting with people to obtain facts, opinions, and attitudes. Observation research does not rely
on direct interaction with people.

Popular forms of survey research include in-home personal interviews, mall intercept interviews
(both computer-assisted personal interviewing and computer-assisted self-interviewing), telephone
interviews, focus groups, mail surveys, mail panel surveys, on-line interviews (also called cyber
focus groups), and executive interviews (for business-to-business marketing research).

PTS: 1 DIF: Application REF: p. 211 OBJ: 3

9. There are several marketing research survey techniques available to the marketing researcher.
Match the type of survey technique with the research situation by placing the matching letter of the
survey technique in the blank provided to the left of the description. Each letter is used only once.
A. telephone interview
B. mail survey
C. focus group
D. in-home (personal) interview
E. mall intercept interview
F. mail panel
G. cyber focus group

_____ A research firm desires face-to-face interaction with consumers for a taste test and
short survey, but has a limited budget.
_____ A company needs a brief, simple survey that contacts a large sample and has
extremely quick results.
_____ A marketing researcher is seeking detailed answers to specific questions and expects
to have to demonstrate a complicated product and probe for answers.
_____ A company wishes to conduct a somewhat lengthy survey on a limited budget and on
a one-time basis.
_____ A research firm assembles a small group of consumers who will discuss new product
ideas.
_____ A researcher wants subjects to test products and respond several times to surveys.
_____ This method uses a database of respondents who were collected via a screening
questionnaire on a website.

7-48 Copyright © 2012 Nelson Education Limited


ANS:

E Mall intercept interview: A research firm desires face-to-face interaction with


consumers for a taste test and short survey, but has a limited budget.

A Telephone interview: A company needs a brief, simple survey that contacts a large
sample and needs extremely quick results.

D In-home interview: A marketing researcher is seeking detailed answers to specific


questions and expects to have to demonstrate a complicated product and probe for
answers.

B Mail survey: A company wishes to conduct a somewhat lengthy survey on a limited


budget and on a one-time basis.

C Focus group: A research firm assembles a small group of consumers who will discuss
new product ideas.

F Mail panel: A researcher wants subjects to test products and respond several times to
surveys.

G Cyber focus group: A method of using a database of respondents who were collected
via a screening questionnaire on a website.

PTS: 1 DIF: Application REF: p. 211-212 OBJ: 3

10. As part of your summer intern job, you have been asked to perform some marketing research
concerning a proposed playground. Because you are unsure of the athletic abilities and parental
safety concerns, you decide to conduct a focus group to develop a better idea of what should be
included in a quantitative survey questionnaire. How would you go about setting up and
conducting these focus groups?

ANS:
First, focus group participants need to be recruited. People could be recruited via telephone calls
(with a screening question to establish age group), by mail, or by invitations to parent groups.
Qualified participants would be offered an incentive ($30–$50) to participate in a group discussion
of seven to ten people. A discussion room should be set up with chairs, a table, and audiotaping
equipment. The room may also have a one-way mirror and/or videotaping equipment. A moderator
would be in the room to lead the group through a discussion of the proposed playgrounds.

PTS: 1 DIF: Application REF: p. 213 OBJ: 3

11. What are three advantages and three disadvantages inherent in the use of a mail survey?
Distinguish between a mail survey and a mail panel.

ANS:
Benefits of using a mail survey include relatively low cost, elimination of interviewers and field
supervisors, centralized control, actual/promised anonymity for respondents, and an opportunity
for respondents to make more thoughtful replies.

Copyright © 2012 Nelson Education Limited 7-49


Disadvantages of a mail survey include low response rates, unrepresentative samples, and the
inability of respondents to clarify or elaborate on their answers.

Mail panels are an alternative to the one-shot mail survey. The mail panel consists of a recruited
sample of households that participate by mail. The mail panel is used several times. Panel
members are rewarded for their participation, and response rates are quite high.

PTS: 1 DIF: Application REF: p. 212 OBJ: 3

12. A marketing researcher has many options when designing a questionnaire. However, some
questions are better than others for obtaining specific types of responses. Match each survey
question example with its most precise definition by placing the matching letter in the blank to the
left of the example. Each letter is used only once.
A. open-ended question
B. closed-ended dichotomous question
C. closed-ended multiple-choice question
D. scaled-response question
E. ambiguous question
F. two questions in one
G. biased and/or leading question

_____ What is your favorite pizza topping?


_____ PEPPERONI ____ SAUSAGE ____ VEGETABLE ____ OTHER
_____ Have you ever eaten a vegetarian pizza?
_____ YES ____ NO
_____ What are your opinions about vegetarian food in general?
_____ Do you like a vegetarian burger or a vegetarian pizza best?
_____ Don’t you think vegetarianism is a much healthier lifestyle?
_____ Now that you know about Garden Fresh vegetarian pizza would you ...
____ Definitely buy it
____ Probably buy it
____ Might or might not buy it
____ Probably not buy it
____ Definitely not buy it
____ If you are thinking of buying Garden Fresh vegetarian pizza, will you be buying it
soon?
____ YES ____ NO

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ANS:
C What is your favorite pizza topping?
PEPPERONI ____ SAUSAGE ____ VEGETABLE ____ OTHER
CLOSED-ENDED MULTIPLE CHOICE

B Have you ever eaten a vegetarian pizza?


____ YES ____ NO
CLOSED-ENDED DICHOTOMOUS

A What are your opinions about vegetarian food in general?


OPEN-ENDED

F Do you like a vegetarian burger or a vegetarian pizza best?


TWO QUESTIONS IN ONE (Vegetarian burger? Vegetarian pizza?)

G Don’t you think vegetarianism is a much healthier lifestyle?


BIASED/LEADING (healthier is assumed)

D Now that you know about Garden Fresh vegetarian pizza would you ...
____ Definitely buy it
____ Probably buy it
____ Might or might not buy it
____ Probably not buy it
____ Definitely not buy it
SCALED RESPONSE

E If you are thinking of buying a Garden Fresh vegetarian pizza, will you be buying it
soon?
____ YES ____ NO
AMBIGUOUS (What does “soon” mean?)

PTS: 1 DIF: Application REF: p. 213 OBJ: 3

13. In contrast to survey research, observation research does not rely on direct interaction with people.
Observation research takes three forms. What are these three forms? For each form, give one
example of an observation method used.

ANS:
People watching people. Examples include mystery shoppers and one-way mirror observations.

People watching phenomena. Observer stands at an intersection and counts traffic moving in
various directions.

Machines watching people. Movie or videotape records behaviours as in the


people-watching-people example.

Machines watching phenomena. Examples include traffic counters.

PTS: 1 DIF: Application REF: p. 215 OBJ: 3

Copyright © 2012 Nelson Education Limited 7-51


14. What is an experiment? What is a characteristic of a good experiment? Why is it impossible to
conduct a perfect experiment?

ANS:
An experiment is a method for gathering primary data. An experiment is characterized by the
researcher changing one or more variables (such as price, package design, or advertising theme)
while observing the effect of those changes on another variable (usually sales).

The best experiments are those in which all factors are held constant except the ones manipulated.
This allows the researcher to observe the changes in the variable of interest.

However, holding all other factors constant in the external environment is costly to attempt and
may be an impossible task. Competitors’ actions, weather, economic conditions, and other external
environmental conditions are beyond the control of the researcher. Techniques can be used to help
account for the changing external environment, but it cannot be completely accounted for.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3

15. Primary data are most often collected from a sample (a subset of a larger population). An
important question researchers must ask is, “Must the sample be representative of the population?”
The answer to this question yields two possible types of samples. Name and describe each of the
two sampling procedures. Give a specific example of a sample type for each procedure.

ANS:
Probability samples. If the sample must be representative of the population, probability sampling
is used. In this case, every element in the population has a known nonzero probability of being
selected. One type of probability sample is a random sample, in which every population element
has an equal chance of being selected.

Nonprobability samples. Any sample in which there is no attempt to ensure representativeness is a


nonprobability sample. Researchers cannot statistically calculate the reliability of the sample. A
common form of a nonprobability sample is a convenience sample, based on using respondents
who are readily accessible.

PTS: 1 DIF: Application REF: p. 216 OBJ: 3

16. Any time a sample is used in marketing research, there will be two major types of errors,
measurement error and sampling error. Briefly describe these two sources of error. Then name and
define one other possible source of error.

ANS:
Measurement error occurs when there is a difference between the information desired by the
researcher and the information provided by the measurement process. This error tends to be larger
than sampling error.

Sampling error occurs when a sample is not representative of the target population. There are
several other types of error related to sampling error: nonresponse error, frame error, and random
error.

Nonresponse error is created when the sample actually interviewed differs from the sample drawn
because people refuse to cooperate or are inaccessible.

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Frame error arises if the sample is drawn from a population (or frame) that differs from the target
population.

Random error occurs because the selected sample is an imperfect representation of the overall
population.

PTS: 1 DIF: Application REF: p. 217 OBJ: 3

17. List three reasons a manufacturer of health and beauty aids might want to use Internet marketing
research as opposed to some other method for marketing research.

ANS:

1. It allows for better and faster decision making through much more rapid access to
business intelligence.
2. It improves the ability to respond quickly to customer needs and market shifts.
3. It makes the conducting of all follow-up studies and longitudinal research easier and
more fruitful.
4. It slashes labour- and time-intensive research activities and associated costs.

PTS: 1 DIF: Application REF: p. 220 OBJ: 3

18. Comment on the following statement: “Internet surveys are superior to mail surveys.”

ANS:
Internet surveys can be filled out and returned to researchers much faster than mail surveys. The
Internet is less expensive, with no mailing costs. Internet surveys can be highly personalized at a
lower cost (no printing costs); survey requests can be personalized for each individual’s situation.
Respondents who have grown intolerant of “snail mail” will still participate in Internet surveys and
provide researchers with a much higher response rate. Certain groups can best be reached by the
Internet—specifically those who receive numerous mail surveys that can be tossed into the trash
without reading them.

PTS: 1 DIF: Application REF: p. 221 OBJ: 4

19. List and give a brief definition of the three types of Internet samples.

ANS:
Unrestricted Internet sample. Anyone who desires can complete the questionnaire and participate
in the research.

Screened Internet sample. It is adjusted for the unrepresentativeness of the self-selected respondent
by imposing quotas on the sample based on some desired sample characteristic.

Recruited Internet sample. This is a targeted population in surveys that require more control over
the make-up of the sample.

PTS: 1 DIF: Application REF: p. 221-223 OBJ: 4

Copyright © 2012 Nelson Education Limited 7-53


20. What is scanner-based research? What two companies currently provide most of the scanner data?

ANS:
A scanner-based system gathers its information from a single group of respondents by
continuously monitoring the advertising, promotion, and pricing they are exposed to and what is
subsequently purchased. The variables measured are advertising campaigns, coupons, displays,
and product prices. This creates a huge database of marketing efforts and resultant consumer
behaviour. Scanner data provides an accurate, objective picture of the direct, causal relationship
between different kinds of marketing efforts and actual sales.

The two major single-source data suppliers are Information Resources Incorporated (IRI) and the
A.C. Nielsen Company. IRI offers scanner-based BehaviourScan, which is based on data from
panel members who shop with an ID card. InfoScan is a scanner-based record of sales for
consumer packaged goods.

PTS: 1 DIF: Application REF: p. 226 OBJ: 5

21. When a manager is faced with alternative solutions to a problem, he or she should not instinctively
call for marketing research. The first decision to make is whether or not to conduct marketing
research at all. Name and briefly discuss two situations in which it is best not to conduct
marketing research.

ANS:
When decision-making information already exists. Some companies have been conducting
research in certain markets for many years. These firms have developed a thorough understanding
of target markets. Under these circumstances, further research may be redundant and a waste of
money.

When the costs of conducting research exceed the benefits. Willingness to acquire additional
decision-making information depends upon a manager’s perception of the information quality,
price, and timing. While marketing research relieves some uncertainty, it is also expensive, and the
costs of obtaining research may not be outweighed by potential benefits.

PTS: 1 DIF: Application REF: p. 226-227 OBJ: 5

22. What is competitive intelligence and how is it used? Provide an example.

ANS:
Competitive intelligence is the creation of an intelligence system that helps managers assess their
competition and their vendors in order to become more efficient and effective competitors.
Competitive intelligence can help identify the advantage of a competitor and play a major role in
determining how the advantage was achieved.

Intelligence is analyzed information. It becomes decision-making intelligence when it has


implications for the organization. For example, a primary competitor may have plans to introduce
a product with performance standards equal to yours but with a 15 percent cost advantage. This
intelligence has important decision-making and policy consequences for management.

PTS: 1 DIF: Application REF: p. 227 OBJ: 6

7-54 Copyright © 2012 Nelson Education Limited


23. List five non-computer-based sources of competitive intelligence.

ANS:

• Company salespeople
• Experts with in-depth knowledge
• CI Consultants
• Government agencies
• Uniform Commercial Code Filings
• Suppliers
• Periodicals
• Yellow Pages
• Trade shows and other official gatherings

PTS: 1 DIF: Application REF: p. 228 OBJ: 6

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