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Marketing Canadian 5th Edition Lamb Test Bank
Marketing Canadian 5th Edition Lamb Test Bank
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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
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
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.
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.
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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
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.
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.
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.
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
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.
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
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.
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
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.
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.
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.
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.
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
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
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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,
3. The three roles of marketing research are persuasive, reminder, and informative.
ANS: F
The three roles are descriptive, diagnostic, and predictive.
ANS: F
This defines marketing research.
5. Marketing research provides decision makers with data on the effectiveness of the current
marketing mix and also insights for necessary changes.
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.
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.
8. Internal company information such as invoices, data from previous marketing research studies, and
historical sales data are sources of secondary data.
ANS: F
Secondary data often cannot be evaluated according to its reliability.
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.
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.
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.
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.
15. The best experiments are those in which all factors are held constant except the ones deliberately
manipulated.
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.
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.
ANS: F
This is the definition of sampling errors.
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.
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.
21. Among the advantages claimed for cyber focus groups are speed, cost effectiveness, broad
geographic scope, accessibility, and honesty.
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.
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.
26. Government agencies, newspapers, and trade shows are good sources of competitive intelligence.
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.
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.
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.
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.
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.
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.
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.
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).
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.
A Telephone interview: A company needs a brief, simple survey that contacts a large
sample and needs extremely quick results.
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.
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.
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.
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.
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
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?)
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.
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.
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.
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.
Random error occurs because the selected sample is an imperfect representation of the overall
population.
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.
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.
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.
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.
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.
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.
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