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Chapter 07
Test Bank
1. Field of Dreams is an example of a successful movie that could have failed because
A. too little money was spent on promotion.
B. it was targeting the wrong target market segments.
C. there was too little similarity between the original book and the screenplay.
D. its original title did not convey the correct message to its prospective audience.
E. too much time elapsed between promotions and its release.
Feedback: The original title of the movie was Shoeless Joe. The audiences thought that the title suggested Kevin Costner was playing a homeless
person, so it was changed.
2. Filmmakers want movie titles that use the same factors that make a good brand name. They must be short, memorable, appealing to consumers, and
A. creative.
B. familiar.
C. have no legal restrictions.
D. alliterative.
E. easy to remember.
Feedback: Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and have no legal restrictions—the same factors
that make a good brand name.
3. Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and have no legal restrictions. These are titles that
A. have the same factors that make a good brand name.
B. seem familiar.
C. use alliterative techniques.
D. play it safe.
E. appeal to multiple cultures.
Feedback: Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and have no legal restrictions—the same factors
that make a good brand name.
4. Filmmakers want movie titles that use the same factors that make a good brand name. Ideally, they should
A. be short and memorable.
B. create a sense of mystery.
C. use devices such as alliteration or rhyme.
D. create a sense of familiarity.
E. be creative.
Feedback: Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and have no legal restrictions—the same factors
that make a good brand name.
5. Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and
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tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the movie,
the audience completes a survey to
A. evaluate the quality of directing and producing.
B. critique the title, plot, and characters.
C. rate the performances of the individual actors and actresses.
D. recall specific details of the plot and dialogue.
E. compare the final film with the original script.
Feedback: In test screenings, 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the
movie, the audience completes a survey to critique its title, plot, characters, music, and ending to identify improvements to make in the final edit. John
Cameron, for example, used a test screening of a segment of Avatar to convince Twentieth Century Fox executives of the movie's potential appeal.
Feedback: In test screenings, 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the
movie, the audience completes a survey to critique its title, plot, characters, music, and ending to identify improvements to make in the final edit. John
Cameron, for example, used a test screening of a segment of Avatar to convince Twentieth Century Fox executives of the movie's potential appeal.
7. Which of the following would be best used to forecast the opening weekend box office sales for a new movie?
A. test screenings
B. demographic analysis
C. portfolio analysis
D. advanced promotions
E. tracking studies
Feedback: Before an upcoming film's release, studios will ask prospective moviegoers in the target audience three questions: (1) Are you aware of the
film? (2) Are you interested in seeing the film? and (3) Will you see the film? Studios also use "social listening" to understand what potential
moviegoers are saying on Twitter, YouTube, Tumblr, Facebook, Instagram, and other social media sites. Studios use these data to monitor a
promotional campaign, forecast the movie's opening weekend box-office sales and, if necessary, add additional marketing activities to promote the film.
8. Marketing researchers use tracking studies immediately before an upcoming film's release to
A. identify any factual errors or inconsistencies in the story line.
B. nominate specific actors or actresses for industry awards.
C. forecast a movie's opening weekend box office revenues.
D. select the best geographical location for the movie's premiere.
E. make changes to the movie's release based upon professional critics' reviews.
Feedback: Before an upcoming film's release studios will ask prospective moviegoers in the target audience three questions: (1) Are you aware of the
film? (2) Are you interested in seeing the film? and (3) Will you see the film? Studios also use "social listening" to understand what potential
moviegoers are saying on Twitter, YouTube, Tumblr, Facebook, Instagram, and other social media sites. Studios use these data to monitor a
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promotional campaign, forecast the movie's opening weekend box-office sales and, if necessary, add additional marketing activities to promote the film.
9. After qualifying by having seen at least six movies in the last year, members of tracking studies for a new movie are asked three key questions, one of
which is
A. How much would you be willing to pay for a ticket?
B. Will you be seeing the movie with someone else? If so, with whom?
C. In your own words, what is the premise of the movie?
D. Will you see the film this weekend?
E. If you like the movie, what is the probability that you will purchase it when it is released on a DVD?
Feedback: Before an upcoming film's release studios will ask prospective moviegoers in the target audience three questions: (1) Are you aware of the
film? (2) Are you interested in seeing the film? and (3) Will you see the film? Studios use these data to monitor a promotional campaign, forecast the
movie's opening weekend box-office sales and, if necessary, add additional marketing activities to promote the film.
10. Movie studios use tracking studies in which prospective moviegoers are asked questions about an upcoming film release to help them forecast sales.
This is an example of
A. movie advertising.
B. marketing research.
C. tactical support.
D. cross-movie research.
E. movie audits.
Feedback: Tracking studies are an example of marketing research, the topic of the chapter.
11. Test screenings and tracking studies are examples of market research techniques used in the movie industry to
A. estimate a production company's potential market share.
B. identify prospective nominees for industry awards such as the Oscars.
C. create an advance market for the movie's DVD release regardless of whether it is successful in its theater release or not.
D. identify possible story lines and/or plots for future movie ventures.
E. reduce uncertainty and improve marketing actions.
Feedback: Test screenings and tracking studies reduce uncertainty and improve marketing actions.
12. The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is
referred to as
A. marketing enquiry.
B. strategic intelligence.
C. data mining.
D. marketing tactics.
E. marketing research.
14. All of the following are challenges marketers face when conducting marketing research except which?
A. whether consumers' actual purchase behaviors will match their stated interests or intentions
B. whether consumers will reveal honest answers to questions about personal or status issues
C. whether consumers will remember the brand they actually purchased in order to report it correctly
D. whether consumers will accept a small gratuity for participating in a market research study for a new or existing product
E. whether consumers will really know whether they are likely to buy a new product that they have never thought about before
Feedback: When conducting marketing research studies, marketers are not concerned so much with payments to consumers for participating. Rather,
they are greatly concerned about the responses to the questions asked and getting valid information.
15. Which of the following statements concerning marketing research is most accurate?
A. The primary purpose of marketing research is to collect data for historical purposes.
B. When collecting marketing research, people may be reluctant to tell you what you want to know.
C. Marketing research, if done properly, will always result in a positive marketing result.
D. People are just as able to give accurate information about products they have only heard about as those they have actually used.
E. Among those people who participate in market research studies, there is an almost perfect correlation between a respondent's stated intentions and
his/her actual buying behavior.
Feedback: Understanding why consumers purchase some products often requires answers to personal questions. Marketing researchers try to obtain
answers that people know but are reluctant to reveal.
16. Grape-Nuts was one of the first cereals Post Cereal Co. ever marketed. It scores well in brand awareness studies, but recently its sales have been
steadily declining. Rather than assume the product was a "dog," the Grape-Nuts marketing manager decided Post should first
A. update the flavor of the cereal by making it slightly sweeter.
B. increase the amount spent on advertising and sales promotion.
C. do marketing research to identify what needs were not being satisfied.
D. hire additional salespeople who were younger and more assertive to contact grocery stores.
E. realign Grape-Nuts as a "star" and increase production.
Feedback: Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and
recommending actions. Post recognized a serious marketing problem existed—sales were declining. However, it didn't know what factors were causing
the decline. It needed more information to learn the cause of the sales decline and how to reverse the trend—a problem that marketing research could
resolve.
17. Members of the Book Promoters Association of Canada recently questioned what could be done to rejuvenate the Canadian book publishing
industry. Some claimed the problem was that many Canadian bookstores had been replaced by Amazon.com. Others said the problem was stodgy
advertising. Still others believed the problem was small budgets for marketing programs. The best way to identify the problem would be to use
A. market analysis.
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B. marketing management.
C. a marketing audit.
D. marketing research.
E. data mining.
Feedback: The Canadian publishers could use marketing research to identify and define both marketing problems and opportunities to generate and
improve marketing actions.
19. In marketing, a conscious choice made from among two or more alternatives is referred to as
A. a preference.
B. a paradigm.
C. a conclusion.
D. a paradox.
E. a decision.
Feedback: The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect
relevant information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
Feedback: The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect
relevant information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
Feedback: The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect
relevant information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
Feedback: The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect
relevant information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
Feedback: The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect
relevant information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
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26. Setting research objectives and identifying possible marketing actions that might result from the research would take place during which step of the
five-step marketing research approach?
A. Collect relevant information.
B. Develop the research plan.
C. Develop findings.
D. Obtain secondary data.
E. Define the problem.
Feedback: Step 1 of the five-step marketing research approach, define the problem, includes setting research objectives and identifying possible
marketing actions. See Figure 7-1.
27. Specifying constraints, identifying data needed for marketing actions, and determining how to collect data would take place during which step of the
five-step marketing research approach?
A. Collect relevant information.
B. Develop the research plan.
C. Develop findings.
D. Take marketing actions.
E. Define the problem.
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, includes specifying constraints, identifying data needed for
marketing actions, and determining how to collect data. See Figure 7-1.
28. Obtaining primary and secondary data would take place during which step of the five-step marketing research approach?
A. Collect relevant information.
B. Develop the research plan.
C. Develop findings.
D. Take marketing actions.
E. Define the problem.
Feedback: Step 3 of the five-step marketing research approach, collect relevant information, includes obtaining secondary and primary data. See Figure
7-1.
29. Analyzing data and presenting the results of this analysis would take place during which step of the five-step marketing research approach?
A. Collect relevant information.
B. Develop the research plan.
C. Develop findings.
D. Take marketing actions.
E. Define the problem.
Feedback: Step 4 of the five-step marketing research approach, develop findings, includes analyzing the data and presenting the findings. See Figure
7-1.
30. Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step
marketing research approach?
A. Collect relevant information.
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B. Develop the research plan.
C. Develop findings.
D. Take marketing actions.
E. Define the problem.
Feedback: Step 5 of the five-step marketing research approach, take marketing actions, includes making action recommendations, implementing action
recommendations, and evaluating the results. See Figure 7-1.
Figure 7-1
Figure 7-1
31. According to Figure 7-1, what does A represent in the marketing research process?
A. collect relevant information
B. develop the research plan
C. develop findings
D. take marketing actions
E. define the problem
Feedback: Step 1 of the five-step marketing research approach, define the problem, includes setting the research objectives and identifying possible
marketing actions. See Figure 7-1.
32. According to Figure 7-1, what does B represent in the marketing research process?
A. develop findings
B. define the problem
C. collect relevant information
D. develop the research plan
E. take marketing actions
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, includes specifying the constraints, identifying data needed
for marketing actions, and determining how to collect data. See Figure 7-1.
33. According to Figure 7-1, what does C represent in the marketing research process?
A. define the problem
B. collect relevant information
C. develop the research plan
D. develop findings
E. take marketing actions
7-8
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Feedback: Step 3 of the five-step marketing research approach, collect relevant information, includes obtaining secondary data and obtaining primary
data. See Figure 7-1.
34. According to Figure 7-1, what does D represent in the marketing research process?
A. define the problem
B. develop the research plan
C. develop findings
D. collect relevant information
E. take marketing actions
Feedback: Step 4 of the five-step marketing research approach, develop findings, includes analyzing the data and presenting the findings. See Figure
7-1.
35. According to Figure 7-1, what does E represent in the marketing research process?
A. take marketing actions
B. define the problem
C. develop the research plan
D. collect relevant information
E. develop findings
Feedback: Step 5 of the five-step marketing research approach, take marketing actions, includes making action recommendations, implementing action
recommendations, and evaluating the results. See Figure 7-1.
36. Setting research objectives occurs during which step of the five-step marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. take marketing actions
E. develop findings
Feedback: Setting research objectives is an action taken during Step 1—define the problem. See Figure 7-1.
37. Determining how to collect the data occurs during which step of the five-step marketing research approach?
A. define the problem
B. collect relevant information
C. develop the research plan
D. develop findings
E. take marketing actions
Feedback: Determining how to collect the data is an action taken during Step 2—develop the research plan. See Figure 7-1.
38. Obtaining secondary data occurs during which step of the five-step marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. develop findings
E. take marketing actions
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AACSB: Analytical Thinking
Blooms: Understand
Learning Objective: 07-02 Describe the five-step marketing research approach that leads to marketing actions.
Level of Difficulty: 2 Medium
Topic: Marketing Research Process
Feedback: Obtaining secondary data, or primary data for that matter, is an action taken during Step 3—collect relevant data. See Figure 7-1.
39. Analyzing the data occurs during which step of the five-step marketing research approach?
A. define the problem
B. develop findings
C. collect relevant information
D. develop the research plan
E. take marketing actions
Feedback: Analyze the data is an action taken during Step 4—develop findings. See Figure 7-1.
40. Implementing recommendations occurs during which step of the five-step marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. take marketing actions
E. develop findings
Feedback: Implement action recommendations is an action taken during Step 5—take marketing actions. See Figure 7-1.
41. Considering the five-step marketing research approach leading to marketing actions, the feedback loop
A. is useful only to help a researcher better define the problem next time.
B. is used to develop the research plan.
C. is a form of primary research.
D. is used to develop findings.
E. consists of lessons learned that can improve each of the steps.
Feedback: Lessons learned from past research mistakes are fed back to improve each of the steps. See Figure 7-1.
42. Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting
moves that alienated its customers. Eventually, the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of
directors recently announced that the company would resume flying if it could prove that the airline could regain at least 75 percent of its lost customers.
It decided to allocate $50,000 to determine the likelihood that its former customers would fly on the airline again and find methods requiring little or no
money that could be used to increase that probability. This description represents which step in the marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. develop findings
E. take marketing actions
Feedback: SwissAir used Step 1 of the five-step marketing research approach to define the problem and set the research objectives to identify the
possible marketing actions that may solve the marketing problem—in this case determining if former customers would fly on the airline again. See
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Figure 7-1.
43. Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or
sample offers that its advertisers expected. Marketing researchers for its publisher developed a research plan, gathered information from teen focus
groups, analyzed the findings, and recommended replacing Watch magazine with Fuel for boys and Verve for girls. Making this change would be
considered which step in the marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. take marketing actions
E. develop findings
Feedback: Implement action recommendations is an action taken during Step 5—take marketing actions. See Figure 7-1.
44. There are two key elements when defining a marketing research problem. One of these is
A. specify constraints.
B. set the research objectives.
C. determine how to collect data.
D. evaluate previous research results.
E. identify data needed for marketing actions.
Feedback: Step 1 of the five-step marketing research approach, define the problem, includes setting the research objectives and identifying possible
marketing actions. See Figure 7-1.
Feedback: Research objectives are the specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.
46. Set during the marketing research process, __________ are the specific, measurable goals the decision maker seeks to achieve in conducting the
marketing research.
A. measures of success
B. research constraints
C. marketing research plans
D. hypothetical scenarios
E. research objectives
Feedback: Research objectives are the specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.
48. Effective decision makers rely on criteria or standards known as __________ that are used in evaluating proposed solutions to a problem.
A. marketing dashboards
B. descriptive research
C. constraints
D. problem definitions
E. measures of success
Feedback: Different research outcomes, based on the measure of success, lead to different marketing actions.
50. Consider the LEGO Group MINDSTORMS product. LEGO Group designers created MINDSTORMS® kits to appeal to middle-school students,
among others. When attempting to choose between potential designs, what was the measure of success for use by LEGO Group in this instance?
A. age
B. gender
C. assembly time
D. cost
E. advertising
Feedback: For LEGO Group, assume the measure of success is the total time spent with each of the two potential new MINDSTORMS® kits until a
device that can do simple tricks is produced. This measure of success leads to a clear-cut marketing action: Market the kit that produces an acceptable
device in the least amount of playing time.
51. Consider the LEGO Group MINDSTORMS® product. If the marketing research measure of success is assembly time for a particular design meant
for middle-school students, which would be the best possible marketing action if the results of a marketing research study concluded, "All 10 teams
could assemble Design B in 20 minutes but only three teams completed Design A"?
A. Redesign the kits so that assembly time is more uniform.
B. Introduce Design B.
C. Introduce the Design A, but add more new features to charge a higher price.
D. Mine the data further for student reactions.
E. Consult the marketing dashboards to analyze LEGO Group sales in the United States.
7-12
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McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Describe the five-step marketing research approach that leads to marketing actions.
Level of Difficulty: 2 Medium
Topic: Marketing Research Process
Feedback: In this case, research results that students could assemble Design B in the time frame before which they would lose interest, so it is preferable
to Design A.
52. Which of the following statements represents a possible measure of success in the first step of the five-step marketing research approach, defining
the problem?
A. You have three weeks and $10,000 to determine if it is going to be profitable to serve breakfast on weekdays or not.
B. If 3-year-olds like this product, then it stands to reason that 4-year-olds will like it even more.
C. Use mail questionnaires, not focus groups.
D. Let's identify the most cost-effective method of advertising.
E. If the test subject eats most or all of the sample during the taste test, it will be assumed that he or she likes it.
Feedback: Measures of success are criteria or standards used in evaluating proposed solutions to the problem. Effective decision makers develop
specific measures of success, which are criteria or standards used in evaluating proposed solutions to the problem. Different research outcomes, based
on the measure of success, lead to different marketing actions. The amount consumed during a taste test could be one such measure.
53. When Home Depot entered the Quebec market in Canada, 2 percent of people were aware of the retail chain. To determine advertising effectiveness
during the first 18 months in Quebec, awareness research was done a second time. For this research, it was decided that if at least 50 percent of a
600-person sample of the population were aware of the Home Depot brand, it would continue its present advertising program. This is an example of
A. secondary data.
B. a constraint.
C. an assumption.
D. a measure of success.
E. a barrier to entry.
Feedback: Effective decision makers develop specific measures of success, which are criteria or standards used in evaluating proposed solutions to the
problem. Different research outcomes, based on the measure of success, lead to different marketing actions. In the case of Home Depot, the measure of
success criterion was "if at least 50 percent of a 600-person sample of the population are aware of the Home Depot brand."
54. After defining the problem, the next step in the five-step marketing research approach is to
A. develop the research plan.
B. evaluate the results.
C. examine the alternatives.
D. list the variables.
E. conduct the experiment.
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, involves: (1) specifying the constraints on the marketing
research activity; (2) identifying the data needed for marketing decisions; and (3) determining how to collect the data. See Figure 7-1.
55. There are three key elements when defining a marketing research problem. One of these is
A. specify the measures of success.
B. set the research objectives.
C. determine how to report the findings.
D. evaluate previous research results.
E. identify data needed for marketing actions.
7-13
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McGraw-Hill Education.
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-02 Describe the five-step marketing research approach that leads to marketing actions.
Level of Difficulty: 2 Medium
Topic: Marketing Research Process
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, involves: (1) specifying the constraints on the marketing
research activity; (2) identifying the data needed for marketing decisions; and (3) determining how to collect the data. See Figure 7-1.
56. Specifying constraints, identifying data needed for marketing actions, and determining how to collect data, would all take place during which step of
the five-step marketing research approach?
A. Define the problem.
B. Develop the research plan.
C. Collect relevant information.
D. Develop findings.
E. Take marketing actions.
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, involves: (1) specifying the constraints on the marketing
research activity; (2) identifying the data needed for marketing decisions; and (3) determining how to collect the data. See Figure 7-1.
57. The retail mall owner told a marketing researcher, "We have the option of staying open late twice a week or opening up an hour early every day. We
need to know which will be most profitable since we cannot do both. The decision must be made in 11 weeks and we only have $10,000 budgeted for
this research project." In which step of the marketing research process would the owner determine this budget and time frame?
A. Define the problem.
B. Develop the research plan.
C. Collect relevant information.
D. Develop findings and recommendations.
E. Take marketing actions.
Feedback: Step 2 of the five-step marketing research approach, develop the research plan, involves specifying the constraints on the marketing research
activity, such as a length of 11 weeks and a budget of $10,000.
58. In a decision, the restrictions placed on potential solutions to a problem are referred to as
A. objectives.
B. inhibitors.
C. dependent variables.
D. obstructions.
E. constraints.
60. What are the two most common constraints in marketing problem solving?
A. limitations of personnel and office space
B. limitations of the strategic thinking and creativity of the firm's advertising agency
C. limitations on the time and money available
D. government regulations and rights to privacy
E. limitations on access to upper and middle management
Feedback: The constraints in a decision are the restrictions placed on potential solutions to a problem. Examples include the limitations on the time and
money available to solve the problem.
61. DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to
introduce its product into new markets, but before it does so, it wants to predict how successful its sales efforts will be. The marketing research firm
hired to conduct the research study has six months to gather, analyze, and present its data to DirectProtect. The required time frame is an example of
A. a dependent variable.
B. an obstruction.
C. an objective.
D. a constraint.
E. an independent variable.
Feedback: The constraints in a decision are the restrictions placed on potential solutions to a problem. Examples include the limitations on the time and
money available to solve the problem. In this case, the marketing research firm had six months to present findings to DirectProtect.
62. Penningtons Superstore specializes in plus-size fashions for women. It recognized a potential marketing opportunity in plus-size junior clothes and
was considering adding a line of teen plus sizes to its 117 stores. Before doing so, it contracted with a marketing research firm to make sure that the teen
plus-size market was a viable one. Decision makers needed the results of its study by September 15 so Penningtons could introduce the line the
following March, if the market was viable. The major constraint for research here is
A. collecting secondary data.
B. finding primary research candidates to interview.
C. meeting the time deadline.
D. establishing measures of success.
E. locating age-appropriate styles in plus sizes.
Feedback: The constraints in a decision are the restrictions placed on potential solutions to a problem. Examples include the limitations on the time and
money available to solve the problem. In this case, Penningtons created a time constraint of a September 15 deadline.
63. Two key elements in deciding how to collect marketing data are
A. concepts and values.
B. concepts and methods.
C. constraints and hypotheses.
D. terms and constraints.
E. terms and hypotheses.
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Feedback: Two elements to consider in deciding how to collect data are (1) concepts and (2) methods.
64. In the world of marketing, __________ are ideas about products or services.
A. theories
B. designs
C. perceptions
D. impressions
E. concepts
65. A picture or verbal description of a product or service a firm might offer for sale is referred to as
A. a constraint.
B. an exemplar.
C. a new-product concept.
D. a test offering.
E. a protocol.
66. Before its production, LEGO Group marketing managers might develop a __________ for an innovative MINDSTORMS® EV3 robot that uses a
color sensor, responds to voice commands, or uses GPS navigation software.
A. virtual concept
B. product substitute
C. product hypothesis
D. new-feature matrix
E. new-product concept
Feedback: In the world of marketing, concepts are ideas about products or services. To find out about consumer reactions to a potential new product,
marketing researchers frequently develop a new-product concept, which is a picture or verbal description of a product or service the firm might offer for
sale.
67. When Fisher-Price managers attempted to redesign its classic toy, the Chatter Telephone, they considered adding a noisemaker, wheels, and eyes to
a basic plastic telephone, and thus they developed several
A. virtual prototypes.
B. product substitutes.
C. product hypotheses.
D. new-product concepts.
E. new-feature matrices.
Feedback: In the world of marketing, concepts are ideas about products or services. To find out about consumer reactions to a potential new product,
marketing researchers frequently develop a new-product concept, which is a picture or verbal description of a product or service the firm might offer for
sale.
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68. The approaches that can be used to collect data to solve all or part of a marketing research problem are referred to as
A. methods.
B. proposals.
C. strategies.
D. tactics.
E. analyses.
69. The Journal of Marketing Research and the Journal of Marketing provide
A. up-to-date tables for the latest data on consumer sales, listed by industry.
B. summaries of research methods and techniques valuable in addressing marketing problems.
C. the latest data on marketing expenditures based on consumer geodemographics.
D. postings of professional marketing opportunities at universities and colleges.
E. an in-depth list of marketing positions and opportunities at major corporations.
Feedback: Periodicals and technical journals, such as Journal of Marketing Research and Journal of Marketing, both published by the American
Marketing Association, summarize methods and techniques valuable in addressing marketing problems.
70. Sampling and statistical inference are special __________, which are vital in marketing research to solve all or part of a problem.
A. systems
B. styles
C. methods
D. manners
E. modes
Feedback: Special methods vital to marketing are (1) sampling and (2) statistical inference. For example, marketing researchers often use sampling by
selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are
interested. They may then use statistical inference to generalize the results from the sample to much larger groups of distributors, customers, or
prospects to help decide on marketing actions.
72. The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested
in is referred to as
A. hypothesis generation.
B. sampling.
C. information gathering.
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D. statistical inference.
E. probability extrapolation.
73. In marketing research, __________ involves generalizing the results from the sample to much larger groups of distributors, customers, or prospects
to help decide on marketing actions.
A. nonprobability sampling
B. probability sampling
C. extrapolation
D. statistical inference
E. criteria sampling
74. Drawing conclusions about every woman who leases a car in a particular zip code from a representative sample of 250 women in that zip code who
lease a car is called
A. probability sampling.
B. nonprobability sampling.
C. random sampling.
D. statistical inference.
E. interpolation.
Feedback: The method of statistical inference involves drawing conclusions about a population (women who lease a car in a particular zip code) from a
sample (250 women who lease a car) taken from the total population in that zip code.
75. The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered
from a national sample of 600 respondents throughout the United States, it was able to announce that 13.3 percent of all Americans under age 65 lacked
health insurance. To make this statement, the Centers for Disease Control and Prevention had to use
A. focus groups.
B. no constraints.
C. internal secondary data.
D. statistical inference.
E. interpolation.
Feedback: Statistical inference is used to draw conclusions about a population (the universe of all people about which one wishes to
generalize—Americans) from a sample (some elements of the universe—a smaller set of Americans or sample of 600 people) taken from that
population.
76. After defining the problem and developing the research plan, the next step in the five-step marketing research approach is to
A. collect relevant information.
B. develop findings and recommendations.
C. take marketing actions.
D. plan the research budget.
E. identify the constraints on the process.
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AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Explain how marketing uses secondary and primary data.
Level of Difficulty: 2 Medium
Topic: Marketing Research Process
Feedback: Step 3 in the research process is to collect relevant information. See Figure 7-1.
77. GI Design is a small studio that designs and builds items such as fountains and tabletops made from copper. To increase sales, Greg, the owner,
developed a research plan to determine what landscape architects and interior designers wanted in copper furnishings and appropriate pricing. He had
begun to interview representative designers. Greg was engaged in __________, the third step of the five-step marketing research approach.
A. developing the research plan
B. solving the problem
C. developing findings and recommendations
D. collecting relevant information
E. taking marketing actions
Feedback: Step 3 of the five-step marketing research approach is about collecting enough relevant information to make a rational, informed marketing
decision. This sometimes simply means using your knowledge to decide immediately. At other times it entails collecting an enormous amount of
information at great expense. Greg was about to do this by interviewing designers to see what price to charge for items they prefer.
78. Penningtons Superstore, which specializes in plus-size fashions for women, wanted to determine if it should add a line of plus-size junior wear. The
following statement reflects which step in the five-step marketing research approach? "To compare the effectiveness of offering products for the
teenage market in our current stores versus opening separate stores targeted directly to this market, let's distribute questionnaires to current shoppers and
solicit their opinions, set up some focus groups with plus-size teens, and locate any relevant secondary research."
A. Define the problem.
B. Develop the research plan.
C. Collect relevant information.
D. Develop findings and recommendations.
E. Take marketing actions.
Feedback: Step 3 of the five-step marketing research approach is to collect enough relevant information to make a rational, informed marketing
decision. In this case, the information will be collected using surveys, focus groups, and relevant secondary research.
79. The facts and figures related to a research problem are referred to as
A. data.
B. statistics.
C. variables.
D. concepts.
E. constraints.
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AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 07-03 Explain how marketing uses secondary and primary data.
Level of Difficulty: 1 Easy
Topic: Marketing Research Process
Feedback: Data, the facts and figures related to the problem, are divided into two main parts: secondary data and primary data. See Figure 7-2.
82. Considering the two main types of data, if facts and figures are newly collected for a project, which type of data is being collected?
A. internal primary data
B. secondary data
C. external primary data
D. primary data
E. internal secondary data
Feedback: Data, the facts and figures related to a research problem, are divided into two main parts: secondary data and primary data. Primary data are
facts and figures that are newly collected for that project. See Figure 7-2.
Figure 7-2
Figure 7-2
83. Figure 7-2 shows that secondary data may be divided into two related parts. If Box A represents marketing input and outcome data (budgets, call
reports, customer communications, etc.), which type of data is A?
A. questionnaire data
B. mined data
C. internal secondary data
D. external secondary data
E. observational data
Feedback: Secondary data are the facts and figures that have already been recorded before the project at hand. Secondary data may be divided into two
related parts: (1) internal data (A), which consists of marketing input and outcome data (budgets, call reports, customer communications, etc.) collected
from within the firm and (2) external secondary data (B), which is collected outside the firm. See Figure 7-2.
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84. Figure 7-2 shows that secondary data may be divided into two related parts. If B represents data collected from the U.S. Census Bureau, trade
association studies, business periodicals, etc., which type of data is B?
A. compiled data
B. mined data
C. internal secondary data
D. external secondary data
E. observational data
Feedback: Secondary data are the facts and figures that have already been recorded before the project at hand. Secondary data may be divided into two
related parts: (1) internal data (A), which consists of marketing input and outcome data (budgets, call reports, customer communications, etc.) collected
from within the firm and (2) external secondary data (B), which is collected outside the firm. See Figure 7-2.
85. Figure 7-2 shows that primary data may be divided into three related parts. If C represents data collected from mechanical, personal, or
neuromarketing methods, which type of data is C?
A. questionnaire data
B. mined data
C. internal secondary data
D. external secondary data
E. observational data
Feedback: Primary data are the facts and figures that are newly collected for the project. Primary data may be divided into three related parts: (1)
observational data (C), which consists of facts and figures obtained by watching, either mechanically or in person, how people actually behave and
include mechanical, personal, or neuromarketing methods; (2) questionnaire data (D), which consists of facts and figures obtained by asking people
about their attitudes, awareness, intentions, and behaviors; and (3) other sources of data (E). See Figure 7-2.
86. Figure 7-2 shows that primary data may be divided into three related parts. If D represents data collected from individual interviews, focus groups,
or online surveys, which type of data is D?
A. questionnaire data
B. mined data
C. internal secondary data
D. external secondary data
E. observational data
Feedback: Primary data are the facts and figures that are newly collected for the project. Primary data may be divided into three related parts: (1)
observational data (C), which consists of facts and figures obtained by watching, either mechanically or in person, how people actually behave and
include mechanical, personal, or neuromarketing methods; (2) questionnaire data (D), which consists of facts and figures obtained by asking people
about their attitudes, awareness, intentions, and behaviors; and (3) other sources of data (E). See Figure 7-2.
87. All of the following are sources of primary data except which?
A. government publications
B. observational data
C. experiments
D. social media
E. panels
Feedback: Primary data are the facts and figures that are newly collected for the project. Primary data may be divided into three related parts:
observational data, questionnaire data and other sources, which consist of social media, panels and experiments, and data mining. Government
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publications are an external secondary data source. See Figure 7-2.
89. Facts and figures that have already been recorded before the project at hand are referred to as
A. primary data.
B. empirical data.
C. secondary data.
D. demographic data.
E. observational data.
Feedback: Secondary data can be divided into two parts—internal and external secondary data—depending on whether the data came from inside or
outside the organization needing the research.
91. Children's accessory and toy store Red Carpet Baby! uses U.S. Census Bureau information to determine the number of families with children under
age 5 for each state in its market area. Data obtained from this source are called
A. proprietary data.
B. primary data.
C. secondary data.
D. observational data.
E. experimental data.
Feedback: Secondary data are facts and figures that have already been recorded before the project, such as U.S. Census Bureau data. See Figure 7-2.
92. If a researcher is using data that are low in cost and save time, which type of data is this likely to be?
A. questionnaire data
B. mined data
C. secondary data
D. patented data
E. observational data
Feedback: Secondary data are facts and figures that have already been recorded before the project at hand. Two important advantages of secondary data
are (1) the tremendous time savings because the data have already been collected and published or exist internally and (2) the low cost, such as free or
inexpensive Census reports. Furthermore, a greater level of detail is often available through secondary data, especially U.S. Census Bureau data. See
Figure 7-2.
93. If a researcher is concerned that data may be out of date or the parameters may not entirely suit the project, which type of data is this likely to be?
A. questionnaire data
B. mined data
C. internal secondary data
D. external secondary data
E. observational data
Feedback: Secondary data are facts and figures that have already been recorded before the project at hand. Such data may be too old or otherwise not
appropriate to a new project at hand. See Figure 7-2.
94. Facts and figures that are newly collected for a project at hand are referred to as
A. statistical data.
B. empirical data.
C. secondary data.
D. primary data.
E. inferential data.
96. Observing people and asking them questions are the two principal ways to obtain
A. external secondary data.
B. internal secondary data.
C. primary data.
D. experimental independent variables.
E. nonprobability data.
Feedback: The two principal ways to collect new or primary data for a marketing study are by (1) observing people and (2) asking them questions. See
Figure 7-2.
97. When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments' archives
within her firm to make marketing decisions today, she is using
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A. internal secondary data.
B. primary data.
C. external secondary data.
D. sensitivity analysis.
E. probability data.
Feedback: Internal secondary data have already been collected and exist inside a business firm or organization. See Figure 7-2.
98. All of the following are examples of marketing input data except which?
A. advertising budgets
B. call reports
C. accounting records
D. sales budgets
E. advertising expenses
Feedback: Marketing input data relate to the effort expended to make sales. These range from sales and advertising budgets and expenditures to
salespeople's call reports. Accounting records are marketing outcome data.
99. All of the following are examples of marketing outcome data except which?
A. customer phone calls
B. repeat sales reports
C. accounting records
D. salespeople's call reports
E. sales reports by geographic region
Feedback: Marketing outcome data relate to the results of the marketing efforts. These involve accounting records on shipments from the accounting
department and include sales and repeat sales, often broken down by sales representative, industry, and geographic region. Also included are
communications from customers—e-mails, phone calls, and letters. Salespeople's call reports are marketing input data.
100. Published data from outside the organization are referred to as __________ data.
A. proprietary
B. external primary
C. internal secondary
D. internal primary
E. external secondary
Feedback: External secondary data include published data from outside the organization such as U.S. Census reports, trade association studies and
magazines, business periodicals, and Internet-based reports. See Figure 7-2.
101. The U.S. Census Bureau publishes the __________, which is conducted every five years and contains detailed information on the number and sales
of U.S. establishments that produce goods or resources.
A. North American Industry Classification System
B. Economic Census
C. Annual Survey of Manufacturers
D. Annual Wholesale Trade Survey
E. Survey of Business Owners
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AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Explain how marketing uses secondary and primary data.
Level of Difficulty: 2 Medium
Topic: Secondary Data
Feedback: External secondary data include published data from outside the organization such as the U.S. Census Bureau, which publishes the results
from the Economic Census that is conducted every five years.
102. The 2012 __________ contains data on the number and sales of establishments in the United States that produce a product or service based on its
geography, industry sector, and North American Industry Classification System code.
A. Annual Retail Trade Survey
B. Annual Survey of Manufacturers
C. Economic Census
D. Annual Wholesale Trade Survey
E. Service Annual Survey
Feedback: The Census Bureau also publishes the Economic Census, which is conducted every five years. These reports are vital to business firms
selling products and services to organizations. The 2012 Economic Census contains data on the number and sales of establishments in the United States
that produce a product or service based on each firm's geography (state, county, zip code, etc.), industry sector (manufacturing, retail trade, etc.), and
North American Industry Classification System (NAICS) code.
103. When customers have their groceries scanned at the supermarket checkout counter, data regarding product sales and coupon redemptions are
collected and processed by tracking services such as IRI's InfoScan. Consumer product firms such as Procter & Gamble use data collected by IRI to
allocate scarce marketing resources. For P&G, such data should be considered
A. internal secondary data.
B. primary data.
C. external secondary data.
D. sensitivity analysis.
E. probability data.
Feedback: For consumer product firms such as Procter & Gamble, sales data from various channels help them allocate scarce marketing resources. As
a result, they use tracking services such as IRI's InfoScan to collect product sales and coupon/free-sample redemptions that have been scanned at the
checkout counters of supermarket, drug, convenience, and mass merchandise retailers. IRI collects the data, but P&G is using it, so it is external
secondary data at that point.
104. When Karsh and Hagan Advertising Agency uses information found in the Nielsen Television Index Ranking Report published by Nielsen to plan
television advertising schedules for its clients, it is relying on __________ data.
A. neuromarketing
B. primary
C. internal secondary
D. observational
E. external secondary
Feedback: Secondary data are facts and figures that have already been recorded before the project at hand. External secondary data are published data
from outside the organization such as that provided by Nielsen.
105. According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads
them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to sell insurance
through telemarketers, this research would be an example of
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A. internal secondary data.
B. a constraint.
C. an assumption.
D. a dependent variable.
E. external secondary data.
Feedback: External secondary data are published data from outside the organization. In this case, the data came from a research study conducted by
Canadian cultural anthropologists.
106. A survey by the Economic Research Service of the U.S. Department of Agriculture, government statistics from the Department of Commerce, and
stock market information from The Wall Street Journal would all be examples of
A. internal primary data.
B. nonprobability sampling methods.
C. internal secondary data.
D. external secondary data.
E. external primary data.
Feedback: External secondary data are published data from outside the organization.
107. The Economic Research Service of the U.S. Department of Agriculture provides information on topics from how many dairies there are in the
United States to how many pounds of broccoli were eaten per person in 2015. This service provides
A. internal primary data.
B. nonprobability sampling tools.
C. internal secondary data.
D. external secondary data.
E. external primary data.
Feedback: External secondary data are published data from outside the organization, such as those from the U.S. Department of Agriculture.
108. J.D. Power and Associates and other market research firms recruit groups of consumers for __________, each of whom are paid to record all of
their purchases on a regular basis. Businesses pay firms such as J.D. Power for their reports that answer the question, "How many times did our
customers buy our products this year compared to last year?"
A. focus groups
B. experiments
C. syndicated panels
D. professional data mining
E. mall intercept interviews
Feedback: Several market research companies pay households and businesses to record all their purchases using a paper or electronic diary. Such
syndicated panel data economically answer questions that require consistent data collection over time, such as, "How many times did our customers buy
our products this year compared to last year?" Examples of syndicated panels that provide a standard set of data on a regular basis are the Nielsen TV
ratings and J.D. Power's automotive quality and customer satisfaction surveys.
109. Several market research companies pay households and businesses to record all their purchases using a paper or electronic diary, which allows for
an economical way to collect consistent data over time. These data are referred to as
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A. sponsored data.
B. data reciprocity.
C. syndicated sampling.
D. syndicated panel data.
E. data journaling.
Feedback: Syndicated panel data economically answer questions that require consistent data collection over time.
110. Several marketing data services provide information on household demographics and lifestyle, purchases, TV viewing behavior, responses to
promotions, and social media use. The principle advantage of these services is that
A. one service can collect, analyze, interrelate, and present this disparate information.
B. all data collection and analysis is computerized, so the results obtained are almost instantaneous.
C. members of the firm can be included in the analysis of data, making the results more reliable.
D. the service gets paid on a percentage basis; the better the information, the higher the fee.
E. firms using these services get discounts if they share their customer data with competitors.
Feedback: Some data services provide comprehensive information on household demographics and lifestyle, product purchases, TV viewing behavior,
responses to coupon and free-sample promotions, and social media use. Their advantage is that a single firm can collect, analyze, interrelate, and present
all this information.
111. A general rule of thumb among marketing researchers is to use __________ first and then collect __________.
A. external secondary data; internal primary data
B. internal primary data; external primary data
C. primary data; secondary data
D. secondary data; primary data
E. observational data; questionnaire data
Feedback: A general rule of thumb among marketing researchers is to use secondary data first and then collect primary data.
112. Two important advantages of secondary data are that they are
A. inexpensive and up-to-date.
B. up-to-date and supply all relevant categories of information.
C. inexpensive or free and save time.
D. tailor-made to specifications and relatively inexpensive.
E. highly credible and up-to-date.
Feedback: Two important advantages of secondary data are (1) the tremendous time savings if the data have already been collected and published or
exist internally and (2) the low cost, such as free or inexpensive Census reports.
113. Two important disadvantages of secondary data are that they may be
A. difficult to acquire and not up to date.
B. out of date and not specific enough for the project.
C. unavailable in time and biased toward large corporations.
D. biased toward government objectives and out of date.
E. costly and time-consuming.
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AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-03 Explain how marketing uses secondary and primary data.
Level of Difficulty: 2 Medium
Topic: Secondary Data
Feedback: Three important disadvantages of secondary data are (1) the secondary data may be out of date, especially if they are U.S. Census data
collected only every five or 10 years; (2) the definitions or categories might not be quite right for a researcher's project (i.e., the age groupings or product
categories might be wrong for the project); and (3) because the data have been collected for another purpose, they may not be specific enough for the
project, making it necessary to collect primary data.
114. Secondary data in online databases can be accessed either directly or via Internet search engines or
A. portals through keyword searches.
B. internal statistical data.
C. probability sampling data.
D. personal chat rooms.
E. social media such as Facebook.
Feedback: These data are often available online and can be identified and located using a search engine or a portal like USA.gov.
115. The Internet sites for The Wall Street Journal, CNBC, and Fox Business
A. sell information on trade activity collected by the U.S. government.
B. are portals to all government websites that can be found by topic or keyword.
C. provide information in online databases and an index of blogs by primary topic.
D. are the most popular online portals in which to enter keywords or topics for specific searches.
E. provide up-to-the-minute business news and video clips about companies, industries, and trends.
Feedback: The Wall Street Journal, CNBC, and Fox Business provide up-to-the-minute business news and video clips about companies, industries, and
trends. See Marketing Matters in the textbook.
Feedback: The U.S. Census Bureau provides information on U.S. business, economic, and trade activity collected by the federal government. See
Marketing Matters in the textbook.
Feedback: USA.gov provides a portal to all government websites that can be found by topic or keyword. See Marketing Matters in the textbook.
118. Facts and figures obtained by watching, either mechanically or in person, how people actually behave are referred to as __________ data.
A. inspection
B. hypothetical
C. primary source
D. observational
E. eyewitness
120. Mechanical, personal, or neuromarketing methods are ways that __________ data can be collected.
A. virtual
B. primary source
C. hypothetical
D. observational
E. statistical
Feedback: Observational data can be collected by mechanical (including electronic), personal, or neuromarketing methods.
121. Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher-Price is
collecting __________ data.
A. observational
B. questionnaire
C. interview
D. on-site
E. focus group
Feedback: Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. Fisher-Price
watches children play to collect facts about its toys.
122. Nielsen collects national TV ratings by using a "people meter." This is a box that is attached to televisions, DVRs, cable boxes, and satellite dishes
in about 30,000 households across the country; has a remote control that is used to indicate when a viewer begins and finishes watching a TV program;
and stores and then transmits the viewing information to Nielsen each night. The information Nielsen is collecting is referred to as
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A. internal secondary data.
B. interactive industry data.
C. sensitivity data.
D. external secondary data.
E. observational data.
Feedback: Facts and figures obtained by watching how people actually behave is the way marketing researchers collect observational data.
Observational data can be collected by mechanical (including electronic), personal, and neuromarketing methods. In this case, data are collected about
people's TV viewing behavior. National TV ratings, such as those collected by Nielsen, are an example of mechanical observational data collected by a
"people meter." The device measures what channel and program are tuned in and who is watching.
Feedback: Nielsen introduced a "cross-platform television rating," which combines Nielsen's existing TV ratings with its new online ratings.
124. The data that is collected with a "people meter" and later published by Nielsen as national TV ratings are an example of __________ data when
gathered.
A. internal secondary data
B. interactive industry data
C. external secondary data
D. mechanical observational data
E. sensitivity data
Feedback: National TV ratings, such as those collected by Nielsen, are an example of mechanical observational data collected by a "people meter."
125. What marketing metric determines whether a TV program such as The Big Bang Theory remains on the CBS broadcast TV network?
A. appeal
B. cost per ad
C. rating
D. poll
E. frequency
Feedback: National TV ratings, such as those collected by Nielsen, are an example of mechanical observational data collected by a "people meter." The
device measures what channel and program are tuned in and who is watching. On the basis of all observational data, Nielsen then calculates the rating
of each TV program. A single rating point equals 1 percent, or 1,160,000 TV households. A change of 1 percentage point in a rating can mean gaining
or losing millions of dollars in advertising revenues because advertisers pay rates on the basis of the size of the audience of the TV program. See Figure
7-3.
126. The Nielsen Television Index Ranking reports the rating of each TV program. With 116 million TV households in the United States, a single rating
point
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A. is not a good measurement of television viewership.
B. equals one point on a 10-point scale.
C. has limited impact on advertising rates for marketers.
D. equals 1 percent, or 1,160,000 TV households.
E. suggests that a show has very few viewers.
Feedback: On the basis of observational data, Nielsen calculates the rating of each TV program. With 116 million TV households in the United States,
a single rating point equals 1 percent, or 1,160,000 TV households. See Figure 7-3.
127. By _________________, IKEA noticed that customers often stopped shopping when their baskets or carts were full, so additional shopping bags
are now placed throughout IKEA stores.
A. using survey data
B. the use of mystery shoppers
C. neuromarketing
D. interviewing employees
E. watching consumers in person
Feedback: Watching consumers in person is another approach to collecting observational data. IKEA noticed that customers often stopped shopping
when their baskets or carts were full, so additional shopping bags are now placed throughout IKEA stores.
128. People posing as customers, who are paid to check on the quality of a company's products and services and write a detailed report on the
experience, are referred to as
A. mystery shoppers.
B. customer ombudsmen.
C. secret customers.
D. Facebook "likers."
E. repeat customers.
Feedback: Companies pay researchers to shop at their stores, outlets, or showrooms to obtain the point of view of actual shoppers. Mystery shoppers can
check on the availability and pricing of products and services and on the quality of the customer service provided by employees.
Feedback: Companies pay researchers to shop at their stores, outlets, or showrooms to obtain the point of view of actual shoppers. Mystery shoppers can
check on the availability and pricing of products and services and on the quality of the customer service provided by employees.
130. Melanie manages a local store for a national drugstore chain and had received complaints from several customers about rude employees. To check
on her customer service, Melanie hired a team of researchers, who posed as customers shopping in the store. Occasionally, they bought something, but
their primary purpose was to take notes and record the actions of the service staff. The research information Melanie received was a form of
__________ data.
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A. secondary
B. developmental
C. observational
D. national
E. questionnaire
Feedback: Companies pay researchers to shop at their stores, outlets, or showrooms to obtain the point of view of actual shoppers. Mystery shoppers can
check on the availability and pricing of products and services and on the quality of the customer service provided by employees. The researchers in the
example, who posed as mystery shoppers, provided information that served as observational data.
131. A specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers
encounter products in their natural use environment is referred to as __________ research.
A. ethnographic
B. cultural
C. genealogical
D. sociological
E. physiological
132. Which of the following statements concerning ethnographic research is most accurate?
A. Ethnographic research was specifically designed to use in global markets to help marketers understand cultural diversity and ethnocentrism.
B. Ethnographic research employs the use of genealogical data to track purchase behaviors through family lines.
C. Ethnographic research relies on physiological responses such as heart rate, breathing rate, and stress levels to obtain objective data.
D. Ethnographic research uses trained researchers to discover subtle behavioral and emotional reactions as consumers encounter products in their
natural use environment.
E. Ethnographic researchers use videotapes to eliminate miscues of subtle emotional reactions that can skew market research results.
Feedback: Ethnographic research is a specialized observational approach in which trained observers seek to discover subtle behavioral and emotional
reactions as consumers encounter products in their natural use environment, such as in their home, car, or hotel.
133. Best Western International, Inc., a national hotel chain, paid couples to film themselves as they spent three to seven days on a cross-country trip.
Best Western found that women usually decide when to pull off the road, where to stay overnight, and what amenities the lodging should have to make
their stay more enjoyable. These couples made choices in an authentic environment, providing __________ research to Best Western.
A. secondary
B. developmental
C. alternative
D. ethnographic
E. focus group
Feedback: Best Western is using ethnographic research, which is a specialized observational approach in which trained observers seek to discover
subtle behavioral and emotional reactions as consumers encounter products in their natural use environment, such as in their home, car, or hotel.
134. Which of the following statements concerning personal observation is most accurate?
A. Personal observation is more accurate than ethnopsychic research because the observer/analyst is able to pick up subtleties in the respondent's body
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language, speech patterns, and facial movements that are often missed by other data collection methods.
B. Personal observation is especially suited for small businesses that need the research data but cannot afford more expensive data collection methods.
C. Personal observation is very effective since it can reveal not only what people do, but also effectively determine why they do it.
D. Personal observation is both useful and flexible, but has reliability issues if different observers watching the same event report different results.
E. With personal observation, different observers will reliably report the same conclusions when watching the same event, such as people brushing their
teeth.
Feedback: Personal observation is both useful and flexible, but it can be costly and unreliable if different observers report different conclusions when
watching the same event.
135. The field of marketing that studies the brain and its response to marketing stimuli is referred to as
A. market extrapolation.
B. strategic hypothesizing.
C. neuromarketing.
D. consumer deduction.
E. mental conjecture.
Feedback: Marketing researchers are utilizing neuromarketing methods to observe responses to nonconscious stimuli. Neuromarketing is a relatively
new field of study that merges technologies used to study the brain with marketing's interest in understanding consumers.
136. What type of marketing uses brain scanning to analyze the buying processes of research participants?
A. subliminal marketing
B. permission marketing
C. ultrasense marketing
D. optimization marketing
E. neuromarketing
Feedback: Marketing researchers are utilizing neuromarketing methods to observe responses to nonconscious stimuli. Neuromarketing is a relatively
new field of study that merges technologies used to study the brain with marketing's interest in understanding consumers.
137. Martin Lindstrom used __________ to analyze buying processes and presented the findings of his research in his book Buyology.
A. genealogy
B. brain scanning
C. astrology
D. biochemistry
E. numerology
Feedback: Expert Martin Lindstrom has used brain scanning to analyze the buying processes of more than 2,000 people. The findings of his research are
summarized in his book Buyology.
138. Based on __________, the Campbell Soup Co. changed the labels of most of its soup cans.
A. external secondary data, an article in the Journal of Consumer Behavior on ethnographic research
B. social media Facebook comments and Twitter tweets analysis
C. internal secondary data, sales reports on soup sales by flavor and package type (can or microwave bowl)
D. neuromarketing studies
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E. online/e-mail questionnaires
Feedback: Based on the results of neuromarketing studies, the Campbell Soup Co. recently changed the labels of most of its soup cans.
139. Researchers for Frito-Lay discovered that matte beige bags of potato chips picturing potatoes and other healthy ingredients in the snack do not
trigger activity in the anterior cingulate cortex, an area of the brain associated with feelings of guilt, as much as shiny bags with pictures of chips.
Frito-Lay then switched out of shiny packaging in the United States shortly thereafter. This is an example of using
A. subliminal marketing
B. permission marketing
C. ultrasense marketing
D. optimization marketing
E. neuromarketing
Feedback: Marketing researchers are utilizing neuromarketing methods to observe responses to nonconscious stimuli. Neuromarketing is a relatively
new field of study that merges technologies used to study the brain with marketing's interest in understanding consumers.
140. The facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors are referred to as
A. internal primary data.
B. secondary data.
C. statistical inference.
D. observational data.
E. questionnaire data.
142. Research and media firm Youth Culture publishes Watch magazine, a teen publication distributed free to high school students. Unfortunately, the
publication was unable to gauge whether it was meeting the needs of its audience. Youth Culture handed out surveys to learn how students felt about the
publication. Feedback indicated teen boys and girls were demanding very different things from the publication. This feedback was gleaned from
__________ data.
A. questionnaire
B. internal secondary
C. external secondary
D. observational
E. promotional sales
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AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Learning Objective: 07-04 Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.
Level of Difficulty: 3 Hard
Topic: Primary Data
Feedback: Questionnaire data are the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors. In this case,
the teens were asked their opinions about Watch magazine through the use of a survey.
143. When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods surrounding its branch banks to ask people
with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, they were gathering __________ data.
A. intercept
B. secondary
C. questionnaire
D. observational
E. nonprobability
Feedback: Questionnaire data are the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors. Marine
Midland collected information about behavior using surveys to obtain questionnaire data from them.
144. DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell insurance and deal with claims. It wants to pursue
new markets, but with some idea of how successful its sales efforts will be. Researchers invited a group of eight insured people to its headquarters to
discuss their attitudes about home and auto insurance and awareness of DirectProtect. Responses were gathered on paper as __________ data.
A. hypothetical
B. generative
C. evaluative
D. questionnaire
E. experiential
Feedback: Questionnaire data are the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
DirectProtect collected information here with a focus group, a method for collecting questionnaire data.
145. The foundation of all research using questionnaires is developing ________________ that get clear, unambiguous answers from respondents.
A. precise questions
B. effective research protocols
C. online surveys
D. observational interventions
E. synergistic techniques
Feedback: The foundation of all research using questionnaires is developing precise questions that get clear, unambiguous answers from respondents.
146. Each survey method, from focus groups to personal interviews, results in valuable __________, which are facts and figures obtained by asking
people about their attitudes, awareness, intentions, and behaviors.
A. hypothetical data
B. generative data
C. evaluative data
D. questionnaire data
E. experiential data
Feedback: Each survey method results in valuable questionnaire data, which are facts and figures obtained by asking people about their attitudes,
awareness, intentions, and behaviors.
147. All of the following are idea generation methods for collecting questionnaire data except which?
A. a mail survey
B. trend hunting
C. a focus group
D. a depth interview
E. an individual interview
Feedback: Idea generation methods include individual interviews, depth interviews, focus groups, and "fuzzy front end" methods such as trend hunting.
Mail surveys are an idea evaluation method.
149. A common way of collecting questionnaire data to generate ideas that involves a single researcher asking questions of one respondent is referred to
as
A. a panel.
B. a focus consultation.
C. an individual interview.
D. a face-to-face exchange.
E. an interactional interview.
150. When it is desirable for the interviewer to be flexible in asking probing follow-up questions, data would be best collected using
A. mail surveys.
B. mechanical observations.
C. fax surveys.
D. individual interviews.
E. online surveys.
Feedback: In the past, the most common way of collecting questionnaire data to generate ideas was through an individual interview, which involves a
single researcher asking questions of one respondent. This approach has many advantages, such as being able to probe for additional ideas using
follow-up questions to a respondent's initial answers. However, this method is very expensive.
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151. Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher wanted to spend
15 minutes talking with a head of the household about his or her savings accounts to discuss why he or she did not also have checking accounts and
credit cards with the bank. Marine Midland researchers were using __________ to collect these data.
A. secondary interviews
B. individual interviews
C. intercept interviews
D. observational data collection
E. ethnographic research
Feedback: Individual interviews are conducted by a single researcher asking questions of one respondent. Marine Midland used individual interviews to
collect information about its customers' behavior.
152. A special kind of individual interview in which researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings
is called a
A. focus group.
B. discovery interview.
C. probing interview.
D. guided interview.
E. depth interview.
153. A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred
to as
A. a depth interview.
B. data mining.
C. a research team.
D. a focused interview.
E. a focus group.
154. Consider the Marketing Research Method Photo. What type of marketing research method is most likely being represented here, with observers
behind a one-way mirror watching a discussion among people about topics of interest to marketers?
A. individual interview
B. questionnaire data
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C. social network
D. information panel
E. focus group
Feedback: Focus groups are informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator, asks their
opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products
don't address. Often recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and
managers to hear and watch consumer reactions.
155. The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at ball games. The Twins hired
a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did
not like about the baseball team and their experience at the stadium. Discussions were videotaped for later review. These research sessions are called
A. experiments.
B. secondary data.
C. focus groups.
D. panels.
E. depth interviews.
Feedback: Focus groups are informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator, asks their
opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products
don't address. Often recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and
managers to hear and watch consumer reactions.
156. DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and deal with claims. It wants to
introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. The first thing
researchers did was invite a group of eight insured people to talk about home and auto insurance. Their conversations were recorded and later analyzed
to determine if there were any differences between customers from different markets. This was an example of
A. an experiment.
B. a focus group.
C. a panel.
D. an evaluative interview.
E. a depth interview.
Feedback: Focus groups are defined as informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator,
asks their opinions about the firm's and its competitors' products or services, how they use these, and what special needs they have that these offerings
don't address. Often video recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and
managers to hear and watch consumer reactions.
157. A publishing company sponsors an informal one-time-only session with seven college instructors who use a specific management textbook. The
instructors meet with a moderator who asks their opinions about the textbook, its instructor's manual, and its video and written cases. This is an example
of
A. a jury of executive thought.
B. a consumer panel.
C. an information forum.
D. a focus group.
E. a depth interview.
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Topic: Primary Data
Feedback: Focus groups are informal sessions with 6 to 10 current, past, or potential customers in which a discussion leader, or moderator, asks their
opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products
don't address. Often recorded and conducted in special interviewing rooms with a one-way mirror, these groups enable marketing researchers and
managers to hear and watch consumer reactions.
158. The practice of identifying "emerging shifts in social behavior," which are driven by changes in pop culture that can lead to new products, is called
__________ hunting.
A. trend
B. fad
C. fashion
D. cult
E. affinity
Feedback: Trend hunting (or watching) is the practice of identifying "emerging shifts in social behavior," which are driven by changes in pop culture
that can lead to new products.
159. In __________, the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions.
A. idea generation
B. new-product concept testing
C. data mining
D. data analysis
E. idea evaluation
Feedback: In idea evaluation, the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing
actions.
160. All of the following are idea evaluation methods except which?
A. a mail survey
B. an online survey
C. a focus group
D. a telephone survey
E. an e-mail survey
Feedback: Idea evaluation methods include personal, mail, telephone, fax, and online (e-mail or Internet) surveys of a large sample of past, present, or
prospective consumers.
161. __________ surveys are the best choice if a marketing researcher wants flexibility in asking probing questions or getting reactions to visual
materials.
A. Personal interview
B. Mail
C. Telephone
D. Fax
E. Online
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Feedback: Text term definition—personal interview surveys.
162. __________ surveys are usually biased because those most likely to respond are those who have had especially positive or negative experiences
with the product or brand.
A. Personal interview
B. Online
C. Telephone
D. Fax
E. Mail
163. Marketers are increasingly using online surveys to collect primary data. One advantage is that
A. response rates are higher because consumers are anonymous.
B. the quality of responses is better with online surveys than they are with personal interview surveys.
C. turnaround time from data collection to report is much quicker than with other methods.
D. consumers value e-mail surveys and feel highly regarded when receiving them.
E. consumers want to be helpful so they complete the survey multiple times.
Feedback: Increasingly, marketing researchers have begun to use online surveys (e-mail and Internet) to collect primary data. The advantages of online
surveys are that the cost is relatively minimal and the turnaround time from data collection to report presentation is much quicker than with the
traditional methods.
164. The __________ method has two advantages over other traditional methods of data collection: The cost is relatively minimal and the turnaround
time for data collection to report presentation is much quicker.
A. personal interview
B. telephone interview
C. mail survey
D. online survey
E. fax survey
Feedback: The advantages of online surveys are that the cost is relatively minimal and the turnaround time from data collection to report presentation is
much quicker than with the traditional methods.
Feedback: The advantages of online surveys are the lower cost and the faster turnaround time from data collection to report presentation. However,
online surveys have serious drawbacks: Some consumers may view e-mail surveys as "junk" or "spam" and may either choose to not receive them (if
they have a "spam blocker") or purposely or inadvertently delete them, unopened. For Internet surveys, some consumers have a "pop-up blocker" that
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prohibits a browser from opening a separate window that contains the survey; thus, they may not be able to participate in the research. For both e-mail
and Internet surveys, consumers can sometimes complete the survey multiple times, creating a significant bias in the results. The cost, though, is
relatively minimal.
166. A(n) __________ question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among
alternatives that have been predetermined by a marketing researcher.
A. dichotomous
B. open-ended
C. closed-end
D. fixed-alternative
E. semantic differential
168. "What do you like most about Target?" followed by several lines for a response is an example of which type of marketing research question?
A. Likert scale
B. fixed alternative
C. dichotomous
D. open-ended
E. semantic differential
169. Before opening six Torrid plus-size-only retail stores that cater to women age 15 to 30, a great deal of information was gathered from a sample of
women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of an
open-ended question that might have been asked in the survey?
A. "Do you wear a dress larger than size 12?"
B. "How old are you?"
C. "Would you shop at a store that only sold plus-size clothing?"
D. "Why do you wear that particular fashion style?"
E. "Do you think the stores should use bright- or subtle-colored fixtures?"
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Figure 7-4: Question 1
170. Consider Figure 7-4: Question 1, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Question 1 illustrates which type of question format?
A. dichotomous
B. open-ended
C. closed-end
D. attitudinal
E. semantic differential
Feedback: This is an example of an open-ended question. An open-ended question allows respondents to express opinions, ideas, or behaviors in their
own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. See Figure 7-4, Question 1.
171. A(n) __________ question requires respondents to select one or more response options from a set of predetermined choices.
A. depth interview
B. open-ended
C. fixed-alternative
D. attitudinal
E. semantic differential
Feedback: Text term definition—closed-end or fixed-alternative question. See Figure 7-4, Questions 2 and 3.
172. A fixed alternative question requires respondents to select one or more response options from the set of predetermined choices. Another name for
this kind of question is
A. a dichotomous question.
B. an open-ended question.
C. an attitudinal question.
D. a closed-end question.
E. a semantic differential question.
Feedback: Text term definition—closed-end or fixed-alternative question. See Figure 7-4, Questions 2 and 3.
173. Before opening six Torrid plus-size-only retail stores that cater to women age 15 to 30, a great deal of information was gathered from a sample of
women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of a
closed-end question that might have been asked?
A. Why would you want to shop at a store that carries plus-size clothing?
B. In what ways might you be uncomfortable shopping at a plus-size-only retailer?
C. Would you be interested in buying the Torrid merchandise on the Internet? ___ Yes ___ No
D. What type of person would shop at Torrid?
E. What is your age? Please write the number in the space: __________
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Feedback: A dichotomous question, the simplest form of a closed-end or fixed alternative question, allows only a "yes" or "no" response. All of the
other alternatives are open-ended question formats. See Figure 7-4, Questions 2 and 3.
174. A(n) __________ question is the simplest form of a fixed alternative question that allows only a "yes" or "no" response.
A. dichotomous
B. open-ended
C. closed-end
D. attitudinal
E. semantic differential
175. "Have you been to a dentist within the past twelve months? ___ Yes ___ No?" is an example of which type of question?
A. Likert scale
B. semantic differential
C. dichotomous
D. open-ended
E. evaluative
176. Consider Figure 7-4: Question 2, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Question 2 illustrates which type of question format?
A. dichotomous
B. open-ended
C. Likert scale
D. attitudinal
E. semantic differential
Feedback: This question is an example of a dichotomous question, the simplest form of a fixed alternative question that allows only a yes or no
response. See Figure 7-4, Question 2.
177. A survey asked consumers of dental products the following question "Have you used toothpaste in the past week? ___ Yes ___ No." The results of
this question show that 92.6 percent of the people in New York City have used toothpaste in the past week and 87.2 percent of people in Los Angeles
have used toothpaste during the same period. This information was gathered by using which type of question?
A. open-ended
B. dichotomous
C. holistic
D. evaluative
E. Likert scale
Feedback: Text term definition—fixed alternative question. See Figure 7-4, Questions 2 and 3.
179. The type of question you are answering right now is an example of __________ question.
A. a Likert scale
B. a dichotomous
C. an open-ended
D. a fixed alternative
E. a semantic differential
Feedback: Text term definition—fixed alternative question. See Figure 7-4, Questions 2 and 3.
180. Consider Figure 7-4: Question 3, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Question 3 illustrates which type of question format?
A. dichotomous
B. open-ended
C. closed-end
D. attitudinal
E. semantic differential
Feedback: Question 3 is an example of a closed-end or fixed alternative question, which requires respondents to select one or more response options
from a set of predetermined choices. See Figure 7-4, Questions 3.
181. Likert and semantic differential are two forms of fixed alternative questions that have three or more choices and use
A. a frequency distribution.
B. a scale.
C. a measure of success.
D. an open-ended question.
E. a constraint.
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Feedback: A fixed alternative question with three or more choices uses a scale. A semantic differential scale is a five-point scale in which the opposite
ends have one- or two-word adjectives that have opposite meanings. A Likert scale allows the respondent to indicate the extent to which he or she agrees
or disagrees with a statement. See Figure 7-4, Questions 5 and 6.
182. A(n) __________ scale is a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings.
A. dichotomous
B. open-ended
C. Likert
D. attitudinal
E. semantic differential
Feedback: Text term definition—semantic differential scale. See Figure 7-4, Question 5.
183. What kind of question is the following? "Place an 'X' in the space that describes your view of this test." Easy __ __ __ __ __ Difficult
A. Likert scale
B. semantic differential scale
C. dichotomous question
D. open-ended question
E. sensitivity analysis question
Feedback: This is an example of a question that uses a semantic differential scale, a five-point scale in which the opposite ends have one- or two-word
adjectives that have opposite meanings. See Figure 7-4, Question 5.
184. Consider Figure 7-4: Question 5, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Question 5 illustrates which type of question format?
A. dichotomous
B. open-ended
C. Likert scale
D. semantic differential scale
E. attitudinal
Feedback: This is an example of a question that uses a semantic differential scale, a five-point scale in which the opposite ends have one- or two-word
adjectives that have opposite meanings. See Figure 7-4, Question 5.
185. A(n) __________ scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.
A. Likert
B. attitudinal
C. dichotomous
D. open-ended
E. semantic differential
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Blooms: Remember
Learning Objective: 07-04 Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.
Level of Difficulty: 1 Easy
Topic: Likert scale
186. What type of scale is the following? Indicate your degree of agreement with the following statement: "Marketing is an interesting subject" by
checking one of the responses. ( ) Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree
A. semantic differential scale
B. dichotomous question
C. open-ended question
D. Likert scale
E. attitudinal question
Feedback: This question is an example of a Likert scale, in which the respondent indicates the extent to which he or she agrees or disagrees with a
statement. See Figure 7-4, Question 6.
187. Consider Figure 7-4: Question 6, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Question 6 illustrates which type of question format?
A. dichotomous
B. open-ended
C. Likert
D. attitudinal
E. semantic differential
Feedback: Question 6 is an example of a Likert scale, in which the respondent indicates the extent to which he or she agrees or disagrees with a
statement. See Figure 7-4, Question 6.
188. Consider Figure 7-4: Question 9, which was part of a Wendy's survey that assessed fast-food restaurant preferences among present and prospective
consumers. Which of the following statements most likely explains why Question 9 was included in the questionnaire?
A. Wendy's wanted to know if children eat at its restaurants.
B. Wendy's wanted to know why people have children under age 18 living at home.
C. Wendy's can use these personal and household demographic characteristics to segment the fast-food market.
D. Wendy's wants to know how much people earn so it knows whether it should take credit cards for purchases.
E. Wendy's wanted to send these respondents coupons for the products that would appeal to them most.
Feedback: Question 9 is an example of a closed-end question that asks respondents about their personal or household characteristics. These
demographic questions can serve as bases to segment and target consumers who patronize fast-food. See Figure 7-4, Question 9.
189. "Do you eat at fast-food restaurants regularly: Yes or No?" is worded poorly because the word "regularly" makes it __________ question.
A. an unanswerable
B. an ambiguous
C. two questions in one
D. a leading
E. a nonmutually exclusive
Feedback: Marketing research questions must be worded precisely so that all respondents interpret the same question similarly. For example, in a
question asking whether you eat at fast-food restaurants regularly, the word regularly is ambiguous. Two people might answer "yes" to the question, but
one might mean "once a day" while the other means "once or twice a month." However, each of these interpretations suggests that dramatically different
marketing actions be directed to these two prospective consumers.
Feedback: A disadvantage of mall intercept interviews is that the people interviewed may not be representative of the consumers targeted, giving a
biased result.
192. Frito-Lay substituted __________ for its usual focus groups to allow consumers to weigh in on which new flavors of Lay's potato chips would be
introduced.
A. telephone interviews
B. Facebook
C. a panel
D. virtual focus groups
E. experiments
193. Carma Laboratories, Inc., the maker of Carmex lip balm, used __________ to conduct marketing research to understand the nature of online
conversations about lip balm.
A. ethnographic research
B. depth interviews
C. focus groups
D. social media
E. telephone surveys
Feedback: Carma Labs relies on social media programs to help promote its products. One opportunity for Carmex is to conduct marketing research
using social media listening tools to understand the nature of online lip balm conversations.
194. In evaluating whether its Facebook and Twitter social media programs are working well, Carmex considered using various marketing metrics. One
metric it chose was __________, which provides the percentages of Internet Carmex mentions that are positive, neutral, or negative.
A. Carmex Twitter followers
B. Carmex conversation velocity
C. Carmex sentiment
D. Carmex Facebook likers (or Fans or likes)
E. Carmex share of voice
Feedback: Carmex measures sentiment, which provides the percentages of Internet Carmex mentions that are positive, neutral, or negative. The Carmex
sentiment metric is shown in the right pie chart in the Using Marketing Dashboards box. It shows that 80 percent of the Carmex mentions were positive
in December 2015. See Applying Marketing Metrics in the textbook.
195. In evaluating whether its Facebook and Twitter social media programs are working well, Carmex considered using various marketing metrics. One
metric it chose was __________, which quantifies the number of Carmex mentions on the Internet as a percentage of all mentions of major lip balm
brands.
A. Carmex sentiment
B. Carmex Twitter followers
C. Carmex conversation velocity
D. Carmex Facebook likes
E. Carmex share of voice
Feedback: Carmex measures share of voice as the marketing metric to see how its mention on the Internet compared with those of its two biggest
competitors-Chapstick and Blistex. The Carmex share of voice metric is shown in the left pie chart in the Using Marketing Dashboards box. It shows
that the Carmex share of voice was 35 percent for December 2015. See Applying Marketing Metrics in the textbook.
196. A __________ is a sample of consumers or stores from which researchers take a series of measurements.
A. representative group
B. jury of executive opinion
C. panel
D. survey of experts
E. focus group
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Learning Objective: 07-04 Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.
Level of Difficulty: 1 Easy
Topic: Primary Data
Feedback: Marketing researchers often want to know if consumers change their behavior over time, so they take successive measurements of the same
people using a panel. A panel is a sample of consumers or stores from which researchers take a series of measurements.
198. A disadvantage of a __________ is that the marketing research firm needs to recruit new members continually to replace those who drop out.
A. representative group
B. mall intercept interviews
C. focus group
D. survey of experts
E. panel
Feedback: A disadvantage of panels is that the marketing research firm needs to recruit new members continually to replace those who drop out. These
new recruits must match the characteristics of those they replace to keep the panel representative of the marketplace.
199. Data obtained by manipulating factors under tightly controlled conditions to test cause and effect is an example of
A. questionnaire data.
B. virtual modeling.
C. an experiment.
D. a panel.
E. nonprobability sampling.
200. As marketing vice president of Health Care Services, Inc., you must test the hypothesis that increasing the number of salespeople assigned to a
territory will increase sales of health care services in the territory. Which experiment will do this best?
A. Create an incentive program for your sales force based upon individual performance. Use increases in customer satisfaction as your dependent
variable and increases in sales performance as your independent variable.
B. Select three degrees of service health care (poor, good, average) as your independent variable and measure customer responses for each grade using
the same number of sales representatives in each territory as your dependent variable.
C. Create an incentive program for your sales force based upon individual performance. Use increases in customer satisfaction as your independent
variable and increases in sales performance as your dependent variable.
D. Use a different number of salespeople in three different sales territories as your independent variable and changes in sales of health care services as
the dependent variable.
E. Create an incentive program for your sales force based upon team performance. Use increases in customer satisfaction as your independent variable
and increases in sales performance for the team as your dependent variable.
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Level of Difficulty: 3 Hard
Topic: Experimental Methods
Feedback: The interest is in whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is
studied (the result). The increase in number of salespeople assigned to a territory was the causal condition (independent variable) that was manipulated
by the experimenter to see if there would be a change in sales (dependent variable).
201. In marketing experiments, the independent variable is the __________ and the dependent variable is the __________.
A. element that never changes; element that always changes
B. result; factor beyond the experimenter's control
C. result of an action; cause of an action
D. cause of an action; result of an action
E. element that always changes; element that never changes
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result).
202. GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would
be on its sales. The price increase is the __________ in this three-month experiment.
A. control
B. dependent variable
C. independent variable
D. constraint
E. hypothesis
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). With GI
Designs, the price increase was the causal condition (independent variable) that was manipulated by the experimenter to see if there would be a change
in sales (dependent variable).
203. When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether its
sales would increase. The advertising message is the __________ in this marketing experiment.
A. dependent variable
B. extraneous variable
C. constraint
D. independent variable
E. error variable
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). The
advertising message in the Procter & Gamble study served as the independent variable and the sales of the product served as the dependent variable.
204. When conducting marketing experiments, the independent variable often involves marketing mix elements such as product features or coupons,
while dependent variables often include
A. elements of the environmental forces that cannot be controlled.
B. changes in channels of distribution or pricing.
C. elements of the marketing mix that cannot be manipulated.
D. the primary experimental hypothesis.
E. changes in purchases such as dollar or unit sales of individuals or organizations.
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Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 07-04 Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.
Level of Difficulty: 2 Medium
Topic: Experimental Methods
Feedback: In marketing experiments, the independent variables of interest—sometimes called the marketing drivers—are often one or more of the
marketing mix elements, such as a product's features, price, or promotion (like advertising messages or coupons). The ideal dependent variable usually
is a change in the purchases (incremental unit or dollar sales) of individuals, households, or organizations.
205. GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would
be on its sales. The change in sales is the __________ in this three-month experiment.
A. constraint
B. dependent variable
C. decision task
D. control
E. independent variable
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). The price
increase was the causal condition (independent variable) that was manipulated by the experimenter to see if there would be a change in sales (dependent
variable).
206. A market researcher showed a plain print ad of a new brand of designer jeans to several groups of college students and asked the students to rate the
quality of the jeans. Then the researcher showed some other college students a print ad featuring movie star Scarlett Johansson wearing the new brand
and asked the students again to rate the quality of the jeans. The marketer predicted that after viewing the ad featuring Johansson, the students' ratings of
the jeans would be more positive than the other ones. In this experiment, students' ratings of the new blue jeans served as the
A. dependent variable.
B. independent variable.
C. social environmental force.
D. secondary data.
E. constraint.
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). The
researcher compared ratings of the quality of the blue jeans before and after the advertisement. The type of advertisement in the study served as the
independent variable and the ratings of the blue jeans served as the dependent variable.
207. When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using different television and print advertising to see
whether sales would increase. The level of sales is the __________ in this experiment.
A. dependent variable
B. independent variable
C. hypothesis
D. extraneous variable
E. error variable
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). The
advertisement in the study served as the independent variable and the sales of the product served as the dependent variable.
208. Eppie's Used Cars wanted to test whether straight price discounting worked better than a free gift. It ran two different commercials on alternate
Wednesdays. The first offered 20 percent off the Kelley Blue Book price for any four-wheel-drive vehicle on the lot while the second offered a free tent
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with the purchase of any four-wheel-drive vehicle at the Kelley Blue Book price. The type of offer was the __________ variable. The number of people
that responded to each type was the __________ variable, which would suggest best strategy for increasing traffic.
A. marketing; dependent
B. dependent; independent
C. control; independent
D. independent; dependent
E. dependent; control
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in
whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result). The price
decrease or the free tent was the causal condition (independent variable) that was manipulated by the experimenter to see if there would be a change in
sales (dependent variable).
209. In marketing experiments, the independent variables of interest, sometimes called the marketing __________, are often one or more of the
marketing mix elements.
A. factors
B. drivers
C. forces
D. actions
E. causalities
210. Experiments often use marketing drivers from which of the four Ps?
A. product, price, and place only
B. product, promotion, and people only
C. product features only
D. product features and price only
E. product features, price, or promotion
Feedback: In marketing experiments, the independent variables of interest—sometimes called marketing drivers—are often one or more of the
marketing mix elements, such as a product's features, price, or promotion (such as advertising messages or coupons).
211. Offering a product for sale in a small geographic area to help evaluate potential market actions is called
A. a micro market.
B. a test market.
C. an experimental market.
D. a simulated market.
E. a trial market.
212. What type of experiment is conducted when a food company offers a product for sale in a small geographic area to help it evaluate potential
marketing actions?
A. micro market
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B. trail market
C. experimental market
D. simulated market
E. test market
Feedback: Food companies often use test markets, which offer a product for sale in a small geographic area to help evaluate potential marketing actions.
213. A potential difficulty with experiments such as test markets is that outside factors, such as the actions of competitors, can distort the results by
affecting __________, such as sales.
A. independent variables
B. marketing drivers
C. dependent variables
D. causality variables
E. probability variables
Feedback: A potential difficulty with experiments is that outside factors (such as actions of competitors) can distort the results of an experiment and
affect the dependent variable (such as sales).
Feedback: An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. Food companies
often use test markets, which offer a product for sale in a small geographic area to help evaluate potential marketing actions. Kellogg's test market is a
kind of marketing experiment to reduce risks.
215. Even though primary data can be especially valuable to an individual firm, secondary data are often used because
A. secondary data are much more up-to-date and tailored to a specific firm or industry.
B. secondary data, although far more expensive, are also much more reliable.
C. primary data are usually more costly and time-consuming to collect.
D. primary data can be accessed by virtually anyone so the information generated loses much of its value.
E. primary data are less fact and figure based; they are more subjective and therefore more vulnerable to misinterpretation.
Feedback: Secondary data are facts and figures that have already been recorded before the project at hand. Primary data are facts and figures that are
newly collected for the project. The main disadvantages of primary data are that they are usually far more costly and time-consuming to collect than
secondary data.
216. Analyzing the data obtained during the marketing research project and presenting the results take place during which step of the five-step
marketing research approach?
A. collect relevant information
B. develop findings
C. take marketing actions
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D. plan the budget
E. identify constraints
217. Once a market researcher has defined the problem, developed the research plan, and collected the relevant information, what is the next step in the
five-step marketing research approach?
A. set budgets
B. determine target market
C. take marketing actions
D. develop findings
E. determine if there is a planning gap between desired findings and actual findings
Feedback: Step 4 of the marketing research approach is to develop findings, which includes analyzing the data and presenting the findings. See Figure
7-1.
218. ________ is a vague term generally used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly
sophisticated set of technologies.
A. Big data
B. Data visualization
C. Data intelligence
D. Data mining
E. Data tabulation
219. __________ includes all of the computing resources that collect, store, and analyze the data that originate from a variety of sources.
A. Data mining
B. Environmental scanning
C. Computerization
D. E-marketing
E. Information technology
221. Marketing researchers have observed that today we live in an era of data deluge. The challenge facing managers is not data collection or even
storage but how to
A. leverage external data sources.
B. effectively develop internal sources without excessive data generation.
C. avoid the use of data warehouses.
D. efficiently transform the huge amount of data into useful information.
E. match buying queries to relevant outputs.
Feedback: Information technology includes all of the computing resources that collect, store, and analyze the data. Marketing researchers have observed
that today we live in an era of data deluge. The challenge facing managers is not data collection or even storage but how to efficiently transform the huge
amount of data into useful information.
222. The presentation of the results of data analysis is becoming a new field of marketing research known as
A. external data sources.
B. data visualization.
C. data warehouse presentations.
D. internal data source coding.
E. data maximization.
223. Marketing managers must use the combination of data, technology, and analytics to convert the data into useful information that will answer
marketing questions and lead to effective marketing actions. Organizations that accomplish this successfully are often referred to as
A. an external data source specialist.
B. a results-oriented enterprise.
C. an intelligent enterprise.
D. an internal data source user.
E. an information entrepreneur.
224. Data from internal and external sources are stored, organized, and managed in databases. Collectively, these databases form a
A. data vault.
B. data depot.
C. data storehouse.
D. data warehouse.
E. data repository.
Feedback: Big data are created through a sophisticated communication network that collects data from internal and external sources. These data are
stored, organized, and managed in databases. Collectively, these databases form a data warehouse. See Figure 7-5.
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225. When a marketing manager begins asking "what if" questions to determine how hypothetical changes in product or brand drivers can affect sales,
she is performing __________ analysis.
A. a marketing
B. an environmental
C. a structured
D. a query
E. a sensitivity
Feedback: When accessing a database, marketers can use sensitivity analysis to ask "what if" questions to determine how hypothetical changes in
product or brand drivers—the factors that influence the buying decisions of a household or organization—can affect sales.
226. Red Carpet Baby!, a children's accessory and toy store, is considering expanding the size of the store. The manager queries its marketing database
to understand how a change in square footage might impact sales. She is performing
A. a marketing action analysis.
B. an environmental scan.
C. a situational analysis.
D. a sensitivity analysis.
E. a problem search.
Feedback: When accessing a database, marketers can use sensitivity analysis to ask "what if" questions to determine how hypothetical changes in
product or brand drivers—the factors that influence the buying decisions of a household or organization—can affect sales. This is what the Red Carpet
Baby! manager is doing.
227. If a marketing manager queries a marketing information system to determine the effect of three different levels of price for a new product, he is
using
A. action analysis.
B. an environmental scan.
C. a problem search.
D. situational analysis.
E. sensitivity analysis.
Feedback: When accessing a database, marketers can use sensitivity analysis to ask "what if" questions to determine how hypothetical changes in
product or brand drivers—the factors that influence the buying decisions of a household or organization—can affect sales.
228. The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing
actions is referred to as
A. predictive analysis.
B. information extraction.
C. variable analysis.
D. database management.
E. data mining.
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229. Data mining refers to
A. any form of electronically generated market research.
B. the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing
actions.
C. a branch of marketing specializing in obtaining both objective and subjective data to be used by other companies or organizations.
D. obtaining information about a competitor and its products for use by one's own firm.
E. the use of information derived solely from unsolicited sources such as customer complaints or complements.
230. Many consumers buy soft drinks and potato chips together when they shop at a grocery, convenience, or mass merchandiser store. But when
querying its marketing information system (MIS), one convenience store discovered that when consumers bought a sandwich, many also purchased
toothpaste. This information was obtained from checkout scanner data from its stores nationwide. This convenience store used __________ to extract
this hidden information from its MIS to find the statistical link between the two product categories.
A. linear trend extrapolation
B. heuristic modeling
C. data mining
D. descriptive research
E. RFID data
Feedback: Data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing
patterns and marketing actions. The convenience store used this technique to identify the link between the purchase of sandwiches and toothpaste—a
link that was hidden until identified when a manager queried its marketing information system.
231. All of the following are downsides to data mining except which?
A. Some of the information found on the Internet is factually incorrect.
B. Personal, private data on most Americans are available on the Internet.
C. It is easy for almost anyone to find out your personal information through both online and offline sources.
D. You can use the Internet to find out which companies are obtaining your personal data.
E. Many firms obtain personal, private data by placing cookies on a person's computer or use tracking apps to forward location information from a user's
mobile phone.
Feedback: Data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing
patterns and marketing actions. See Making Responsible Decisions in the textbook.
232. Making action recommendations, implementing action recommendations, and evaluating results take place during which step of the five-step
marketing research approach?
A. define the problem
B. take marketing actions
C. collect relevant information
D. develop findings
E. develop the research plan
Feedback: Step 5 of the five-step marketing research approach, take marketing actions, includes making action recommendations, implementing action
recommendations, and evaluating results.
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233. Evaluating the results of a marketing decision involves
A. asking prospective customers if they are likely to buy the product during a specified future time period.
B. requesting the firm's salespeople to estimate sales during a coming period.
C. collecting data from marketing experts about changes in the environment.
D. collecting projections from all regional sales managers and making projections based on a region-to-region basis.
E. monitoring the marketplace to determine if action is necessary in the future.
Feedback: Evaluating the decision itself involves monitoring the marketplace to determine if action is necessary in the future.
234. Marketing teams must be vigilant in looking for ways to improve the analysis and results in order to learn lessons that might apply to future
marketing research efforts. Evaluating the results of marketing research includes
A. asking prospective customers if they are likely to buy the product during some future time period.
B. requesting the firm's salespeople to forecast sales during a coming period.
C. determining if the marketing research and analysis used to develop the recommendations was effective.
D. collecting projections from all regional sales managers and making projections based on a region-to-region basis.
E. collecting data from marketing experts about changes in the environment.
Feedback: Evaluating the decision process used involves asking the question: Was the marketing research and analysis used to develop the
recommendations effective?
235. The two aspects of the process for evaluating the results of a marketing decision are evaluating the decision itself and
A. evaluating the sales results.
B. conducting a SWOT analysis.
C. evaluating the decision process used.
D. beginning a new environmental scan.
E. reallocating resources to become more efficient and effective.
Feedback: Evaluating results is a continuing way of life for effective marketing managers. There are really two aspects of this evaluation process: (1)
evaluating the decision itself, which involves monitoring the marketplace to determine if action is necessary in the future; and (2) evaluating the
decision process used, which asks the question: Was the marketing research and analysis used to develop the recommendations effective?
236. The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own
marketing efforts is referred to as the
A. prognostication.
B. sales forecast.
C. guesstimate.
D. marketing intuition.
E. market potential.
238. Which of the following is one of the three frequently used sales forecasting techniques?
A. heuristic prognostications
B. customer contracts
C. trade association experts
D. surveys of knowledgeable groups
E. empirical studies
Feedback: Three main sales forecasting techniques are often used: (1) judgments of the decision maker; (2) surveys of knowledgeable groups; and (3)
statistical methods.
239. A(n) __________ is a type of forecast that involves estimating the value to be forecast without any intervening steps.
A. direct forecast
B. survey forecast
C. lost-horse forecast
D. lost-cause forecast
E. intention forecast
Feedback: A direct forecast involves estimating the value to be forecast without intervening steps. Example: "How many quarts of milk should I buy?"
241. A(n) __________ involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing
whether they have a positive or negative impact, and making the final forecast.
A. direct forecast
B. lost-horse forecast
C. buyers' intentions forecast
D. indirect forecast
E. incremental forecast
243. Sherrie sold about $800 worth of produce last weekend at a farmer's market, but it was sunny and warm both days. This Saturday and Sunday are
both supposed to be rainy, so she thinks fewer people will attend. She estimates she'll only sell about three-fourths of her total for last time, or $600. This
is an example of
A. a direct forecast.
B. a lost-horse forecast.
C. a buyer's intentions forecast.
D. an indirect forecast.
E. an incremental forecast.
Feedback: A lost-horse forecast involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast,
assessing whether they have a positive or negative impact, and making the final forecast.
247. In trend extrapolation, the forecasting technique that involves using a straight line is called
A. causal analysis.
B. non-parametric regression.
C. planning gap analysis.
D. infinite dimension.
E. linear trend extrapolation.
Figure 7-7
Figure 7-7
249. Figure 7-7 depicts what type of statistical forecasting (line A)?
A. causal analysis
B. non-parametric regression
C. curvilinear extrapolation
D. infinite dimension
E. linear trend extrapolation
Feedback: Linear trend extrapolation involves extending a pattern observed in past data into the future. When the pattern is described with a straight
line, it is linear trend extrapolation. Using linear trend extrapolation, you draw a line to fit the past sales data and project it into the future to give the
forecast values. See Figure 7-7.
250. Jeff Gerst, who manages the Carmex social media properties, says, "For Carmex, Facebook isn't just a way to share coupons or the latest product
news, but it is also a marketing research resource." One objective in the marketing research he undertook using Facebook involved
A. assessing the market for its new hand cream product.
B. projecting the market size for the Carmex Moisture Plus line of premium lip balms for women.
C. assessing the market for Carmex products outside the United States in countries where Facebook is active.
D. evaluating the effectiveness of integrating Carmex Facebook promotions with traditional Carmex promotions.
E. narrowing the number of flavors going into quantitative testing from three to two.
Feedback: Jeff Gerst is using Facebook to narrow the number of lip balm flavors from three (Watermelon, Green Apple, and Peach Mango) to two
before going into quantitative testing. See Video Case 8: Carmex® (A): Leveraging Facebook for Marketing Research.
251. In conducting marketing research on Facebook, Carmex is considering using a marketing metric that measures how active its Facebook audience is
with Carmex, such as when consumers post a comment on the Carmex wall or reply to one of the Carmex posts. This metric is called Carmex
A. sentiment.
B. share of voice.
C. engagement.
D. conversation velocity.
E. likes.
Feedback: In using Facebook to do marketing research to narrow the number of lip balm flavors Carmex will place in quantitative testing, Jeff Gerst is
trying to decide whether to use (1) "likes" (also called "likers" or sometimes "fans") or (2) engagement. The metric described is Carmex engagement.
See Video Case 8: Carmex® (A): Leveraging Facebook for Marketing Research.
Studios producing and marketing films emphasize marketing research at different stages in the motion picture development process. Concept testing
and script assessment are techniques used to assess early ideas for proposed new films. Studios conduct test screenings to critique a movie's title, plot,
characters, music, and ending as well as the marketing program (posters, trailers, etc.). They also use tracking studies to ask prospective moviegoers in
the target audience three key questions: (1) Are you aware of the film? (2) Are you interested in seeing the film? and (3) Will you see the film? Studios
also use "social listening" to understand what potential moviegoers are saying on Twitter, Facebook, and YouTube. Studios then use the data collected
to monitor a promotional campaign and to forecast the movie's opening weekend box office sales. If necessary, they will run last-minute ads to increase
awareness and interest for the film. These research activities are designed to reduce uncertainty and to improve marketing decisions.
253. Good marketing research requires great care especially because of inherent difficulties in asking consumers questions. What are the three basic
problems faced by marketing researchers when trying to assess consumers' willingness to buy products or services with which they are not familiar?
Inherent difficulties in asking the consumer questions involve the following: (1) Suppose your firm is developing a product that is completely new to the
marketplace, and you are charged with estimating demand for the product. How can marketing research determine if consumers will buy a product they
have never seen and never thought about before? (2) Understanding why consumers purchase some products often requires answers to personal
questions. How can marketing research obtain answers that people know but are reluctant to reveal? (3) Past purchase behaviors may help firms
understand the influence of marketing actions. How can marketing research help people accurately remember and report their interests, intentions, and
purchases?
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Learning Objective: 07-01 Identify the reason for conducting marketing research.
Level of Difficulty: 2 Medium
Topic: Marketing Research Process
254. What are the five steps in the marketing research approach?
The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect relevant
information; Step 4—develop findings; Step 5—take marketing actions. See Figure 7-1.
255. Explain why measures of success are important to effective decision makers and give an example of one.
Measures of success are criteria or standards used in evaluating proposed solutions to a problem. Different research outcomes—based on the measure of
success—lead to different marketing actions. For example, for LEGO Group, assume the measure of success is the total time spent with each of two
potential new MINDSTORMS® kits until a device that can do simple tricks is produced. This measure of success leads to a clear-cut marketing action:
Market the kit that produces an acceptable device in the least amount of playing time.
256. What are some of the methods marketers use to conduct research and solve marketing problems? Include at least one specific print source.
Methods can include asking someone for information directly, such as in an interview, questionnaire, or survey. To collect data, LEGO Group
marketing researchers might use a combination of (1) observing the behavior of MINDSTORMS® users, and (2) asking users questions about their
opinions of the MINDSTORMS kits. Observing people and asking them questions are the two main data collection methods. How successful is LEGO
Group's marketing research and design strategy for its MINDSTORMS products? Among younger users alone, tens of thousands of elementary and
middle-school teams face off in competitions around the world each year. It is also important to make use of already collected information or statistical
data. This information can come from texts, periodicals, and journals. The American Marketing Association offers both the Journal of Marketing and
the Journal of Marketing Research as excellent resources. Two special methods include sampling and statistical inference.
257. Marketing information consists of secondary and primary data. Define each of these types of marketing information. Give examples for secondary
and primary data.
Data, the facts and figures related to the project, are divided into two main parts: secondary data and primary data. Secondary data are facts and figures
that have already been recorded before the project at hand. Secondary data can be divided into two parts—internal and external secondary
data—depending on whether the data come from inside or outside the organization needing the research. Examples of internal secondary data include
financial statements, research reports, files, customer letters, sales call reports, and customer lists. Examples of external secondary data include U.S.
Census reports, trade association studies and magazines, business periodicals, and Internet-based reports. Primary data are facts and figures that are
newly collected for the project. Primary data can be divided into observational data, questionnaire data, and other sources of data. Examples of
observational data include mechanical, personal, and neuromarketing methods. Examples of questionnaire data include idea generation methods
(individual interviews, depth interviews, focus groups, and trend hunting) and idea evaluation methods (personal, mail, telephone, fax, e-mail, and
online/Internet surveys). Examples of other sources of data include social media, panels, experiments, information technology, and data mining.
258. What is the basic difference between primary and secondary data, and what are the advantages and disadvantages of each?
Secondary data are facts and figures that have already been recorded before the project at hand. Primary data are facts and figures that are newly
collected for the project. Secondary data should be used first, before the collection of primary data. Two main advantages of secondary data are the
tremendous time savings because the data have already been collected and published and the relatively low cost. A greater level of detail is often
available through secondary data, and industry data are usually more complete than data collected by private organizations. On the other hand,
secondary data may be out of date, a good example being U.S. Census Bureau data that are collected at 5- or 10-year intervals. Furthermore, the
definitions and categories might not be quite right for a particular project. And, finally, because secondary data are collected for another purpose, they
may not be specific enough for particular needs. In the latter case, it might be necessary to collect primary data, which should be specific to the
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particular project or program for which the data collection is designed. Compared with secondary data, primary data have the advantage of being more
specific to the problem being studied. The main disadvantages are that primary data are usually far more costly and time-consuming to collect than
secondary data.
259. The principal ways to collect new or primary data for a marketing study are by watching people and by asking them questions. Give two examples
of each method.
Observing people includes watching how people actually behave. For example, Nielsen uses a "people meter" to monitor what people watch on TV.
Mystery shoppers who observe the behavior of retail clerks are another example. Watching people is another approach to collecting observational data
that can lead to innovation. Asking people questions can be done using questionnaires, which ask people about their attitudes, awareness, intentions,
and behaviors. It can also be done using depth interviews. Focus groups are another way of asking people, which involve informal sessions of 6 to 10
past, present, or prospective customers in which a moderator asks their opinions. [NOTE: Students may provide other examples, such as personal
methods (ethnographic research), neuromarketing, trend hunting, questionnaires (personal, mail, telephone, fax, and online/Internet), mall intercept
interviews, social media, panels, experiments, information technology, and data mining.]
Neuromarketing was developed by Martin Lindstrom. He has used brain scanning to analyze the buying processes of more than 2,000 people. The
findings of his research are summarized in his book Buyology. Marketing researchers are also utilizing neuromarketing methods to observe responses to
nonconscious stimuli. Neuromarketing is a relatively new field of study that merges technologies used to study the brain with marketing's interest in
understanding consumers. Aradhana Krishna, one of the foremost experts in the field, says, "Many companies are just starting to recognize how
strongly the senses affect the deepest parts of our brains."
261. What is the difference between a semantic differential scale and a Likert scale?
Both are used with fixed alternative questions. The semantic differential scale is a five-point scale in which the opposite ends have one- or two-word
adjectives that have opposite meanings. With a Likert scale, the respondent indicates the extent to which he or she agrees or disagrees with a statement
that is presented. See Figure 7-4, Question 5 and Question 6.
262. What is a panel? How is it used in marketing research? What disadvantages are associated with panels?
A panel is a sample of consumers or stores from which researchers take a series of measurements. Unlike a focus group, members of a panel are
members over long periods of time. The information gathered from panels is used to tell marketing researchers if consumers change their behavior over
time. A disadvantage is that the research firm needs to recruit new members continually to replace those who drop out. The new recruits must match the
characteristics of those they replace to keep the panel representative of the marketplace.
263. Briefly explain what a marketing experiment is. Include the definitions of dependent and independent variables and give examples of each.
An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, an example of causal
research. The interest is in whether changing one of the independent variables (a cause) will change the behavior of the dependent variable being studied
(the result). In marketing experiments, the independent variables of interest—sometimes called the marketing drivers—are often one or more of the
marketing mix elements, such as a product's features, price, or promotion. The ideal dependent variable is a change in purchases (sales in dollars or
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units) of individuals, households, or organizations.
264. Briefly explain what a marketing driver is. Give three examples.
A marketing driver is a factor that influences buying decisions of a household or organization and, hence, sales. These drivers include controllable
marketing mix factors such as a product's features, price, or promotion. Product or brand drivers might also include advertising messages or coupons.
265. List the elements of an information technology system used to help answer marketing questions.
An information technology system used to satisfy an organization's needs for marketing information includes: (1) the marketing researcher or data
scientist with access to a computer; (2) cloud environment—data storage—and cloud computing capabilities, consisting of external and internal
databases housed in a data warehouse; (3) buying queries (or a set of questions) of the system; (4) analytical tools to analyze, organize, and present data;
and (5) the results, displayed in print or on a computer monitor, in the form of text, tables, charts, graphics, etc. See Figure 7-5.
Data mining is the extraction of hidden predictive information from large databases. Data mining is used to find statistical links about consumer
purchasing patterns that suggest marketing actions.
267. What are the three actions a marketing manager must take in the final step of the five-step marketing research approach?
The three actions a marketing manager must take in the final step of the five-step marketing research approach are (1) make action recommendations,
(2) implement the action recommendations, and (3) evaluate the results.
268. Why can't a marketing manager's decision making process stop when he or she has chosen the best alternative to solving a problem?
Effective marketing research doesn't stop with findings and recommendations—someone has to identify the marketing actions, put them into effect, and
monitor how the decisions turn out, which is the essence of taking marketing actions, Step 5 in the marketing research approach. Two aspects of the
evaluation process are (1) evaluating the decision itself and (2) evaluating the decision process used.
269. Briefly explain the difference between a direct forecast and a lost-horse forecast.
A direct forecast involves estimating the value to be forecast without any intervening steps. A lost-horse forecast involves starting with the last known
value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making
the final forecast.
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Learning Objective: 07-06 Describe three approaches to developing a company's sales forecast.
Level of Difficulty: 2 Medium
Topic: Sales Forecasting
270. Briefly explain the best-known statistical method, trend extrapolation, used by marketers to develop a company's sales forecasts. In your
explanation, explain the strengths and weaknesses of using this method.
The best-known statistical method of forecasting is trend extrapolation, which involves extending a pattern observed in past data into the future. When
the pattern is described with a straight line, it is linear trend extrapolation. Using linear trend extrapolation, you draw a line to fit the past sales data and
project it into the future to give the forecast values for extended time frames. Trend extrapolation assumes that the underlying relationships in the past
will continue into the future, which is the method's key strength: simplicity. If this assumption proves correct, you have an accurate forecast. However,
if this proves wrong, the forecast is likely to be wrong. See Figure 7-8.
Category # of Questions
AACSB: Analytical Thinking 232
AACSB: Knowledge Application 38
Accessibility: Keyboard Navigation 199
Blooms: Apply 50
Blooms: Remember 70
Blooms: Understand 150
Learning Objective: 07-01 Identify the reason for conducting marketing research. 9
Learning Objective: 07-02 Describe the five-step marketing research approach that leads to marketing actions. 64
Learning Objective: 07-03 Explain how marketing uses secondary and primary data. 44
Learning Objective: 07-04 Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods. 115
Learning Objective: 07-05 Explain how data analytics and data mining lead to marketing actions. 22
Learning Objective: 07-06 Describe three approaches to developing a company's sales forecast. 16
Level of Difficulty: 1 Easy 70
Level of Difficulty: 2 Medium 150
Level of Difficulty: 3 Hard 50
Topic: Demographic questions 1
Topic: Experimental Methods 18
Topic: Information Technology and Data Mining 13
Topic: Likert scale 3
Topic: Marketing Metrics 2
Topic: Marketing Research Process 99
Topic: Marketing Research Process warehouse 2
Topic: Panels 1
Topic: Primary Data 80
Topic: Sales Forecasting 16
Topic: Secondary Data 29
Topic: Semantic differential and Likert scales 1
Topic: Understanding Competitors and Customers in Marketing Research 4
Topic: Using marketing research 1
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