Exam Questions Ch5 Secondary Sources of Marketing Data

Test Bank

Chapter 5 Secondary Sources of Marketing Data

True-False

1. Standardized data are collected especially for a set of information users with a common need.

2. Primary data are data that were collected by persons or agencies for purposes

other than solving the problem at hand

3. Sales reports are an example of input data.

4. Budgets are an outcome of an internal accounting and control system

and are termed outcome data.

5. One of the problems in applying accounting data to marketing

information needs are that unit breakdown, such as geographic areas

or product types, may differ.

6. A consistent advantage to data found in internal records is that of

high reliability.

7. The most significant benefits secondary data offer a researcher are savings in cost and time.

8. Complaint letters are an important source of customer feedback

because those who take the time to write are representative of the

entire population of consumers for a particular product.

9. Data on orders received or invoices billed should be used carefully.

These figures will not always correspond to sales.

10. The most popular source of marketing data is secondary data. Even

when primary data must be collected, it is good practice for

researcher to consult an appropriate secondary source.

11. Data on outcomes—marketing effort expended—can range from budgets

and schedules of expenditures to salespeople’s call reports.

12. Basic rules to guide the search for secondary sources are: (1) to

start with the specific and go to the general and, (2) to make use

of all available expertise.

13. Trade association publications should be avoided because the source

of their information is biased.

14. A directory or compilation is an intermediate source which gives

researcher access to an original source. An example of this is the

"Statistical Abstract of the United States," which contains sections

from the census and other agency data.

15. The dangers facing the user of computer search methods are those of

missing important information and being overwhelmed by irrelevant

data.

16. The primary advantage to computer retrieval methods is that cross-

referenced searching is possible. This type of search is nearly

impossible without the computer.

17. A researcher should be extremely careful when using data from

sources that do not describe the data collection methodology.

18. Because there is often a time lag between data collection and

publication, the researcher should pay careful attention to when the

data are collected.

19. The researcher should be aware of the fact that two sources using

different methodologies cannot be expected to arrive at the same

kind of data.

20. The United States Bureau of Census does censuses on business,

manufacturing, agriculture, population, housing, mineral industries,

transportation, and government at different time intervals.

21. From smallest to largest, the units of census data are the city

block, the block group, and the census tract. Census tracts are

grouped in urban areas to form Standard Metropolitan Statistical

Areas.

22. The PRIZM system for market cluster analysis is based on the fact

that people of widely varying sociological backgrounds may be found

within a single geographical area.

23. Source databases provide complete text or numeric information in

contrast to the indices and summaries contained in the reference

database.

24. The Standard Industrial Classification (SIC) codes is the new standard

code system to describe business establishments and industries, replacing

the North American Industry Classification System (NAICS).

.

25. Secondary data is data specified, collected, and recorded by someone

other than the user.

26. Primary data can be a valuable source of new ideas which can be

explored later through primary research.

27. The NAICS is the first industry classification system that is based on the principle that

producing units that use similar production processes should be grouped together in the

classification.

28. The main limitation of the reference databases is the reliance on

the accuracy of the abstract author.

29. Census is a mandatory enumeration conducted by the government of the

important facts about their population and the economic and social

environments.

30. Examining available secondary data is often a prerequisite to collecting primary data.

31. Compilations are intermediate sources, in that they facilitate access to the original

sources.

Multiple Choice

1. The United States Bureau of Census conducts their Census of

Population and Housing every ______ years.

1. 1
2. 2
3. 5
4. 10
5. odd-numbered
6. Compared to primary data, the two advantages of secondary data are they
7. can be gathered quickly and inexpensively
8. are generally more objective and accurate
9. are generally more objective and accurate
10. are always internal to the firm and more relevant to the firm’s problems
11. none of the above
12. Data that were initially generated for a purpose other than solving the

problem at hand are termed

1. exploratory data
2. survey data
3. descriptive data
4. qualitative data
5. secondary data
6. Data on inputs—marketing effort expended—include all of these except:
7. budgets
8. schedules of expenditures
9. the billing records on shipments
10. None of the above
11. Secondary data cannot be used for which of the following?
12. interpret primary data
13. demonstrate causal relationship
14. identify problem
15. all of the above
16. Which of the following is not an advantage of online methods?
17. Scope of information available
18. Speed of information access and retrieval
19. Sole reliance on the accuracy of the abstract author
20. Commercially available search procedures provide considerable flexibility and efficiency
21. Within the category of guides and indices, there is a hierarchy of generality.

At the top are the

1. guides to the guides
2. guides to general business information sources
3. Research Alert Directs
4. reference guides
5. Which of the following is not a disadvantage of online methods?

a) Sole reliance on the accuracy of the abstract author

b) Scope of information available

c) Depend on the journal and article selection policy of the database producer

d) Potential to retrieve a lot of irrelevant data if searching by “keyword”

9. Which of the following sources of data should be looked first?

1. primary data
2. external secondary data
3. internal secondary data
4. census data

10. Internal records have all of the following characteristics except

a. ready availability.

b. absolute reliability.

c. relevance to the organization's marketing environment.

d. accessibility on a continuing basis.

e. all of these are characteristic of internal records.

11. Which of the following statements about internal records is false?

a. Internal records provide data on marketing inputs and outputs.

b. The data in internal records are intended to satisfy many

different information needs and may be inappropriate for

marketing decisions.

c. The time frames in which variables such as sales are measured

will always correspond to those used in external data.

d. Records of sales staff activity may be exaggerated.

e. Sales invoices may not always correspond to actual sales.

12. Which of the following is not true about complaint letters?

a. Complaint letters are sources of data on product quality and

service problems.

b. Complaint letters represent an incomplete and distorted picture.

c. People who write complaint letters are likely to be highly

educated and articulate.

d. Complaint letters are the most commonly used method for consumers

to resolve a dissatisfaction.

e. All of these are true about complaint letters.

13. Secondary data may do all of the following except

a. eliminate the need for primary data whenever the required data

are specific and topical.

b. expand a researcher's understanding of a problem.

c. suggest research design alternatives.

d. provide a means of validating a sample.

e. secondary data do all of these.

14. Which of the following can be used in locating secondary sources?

a. authorities.

b. directories.

c. computer-retrievable databases.

d. a good reference librarian.

e. all of these should be used in locating secondary sources.

15. Which of the following are problems associated with secondary data in international e marketing research: a. the accuracy of data may vary on account of different definitions used in different countries

b. different countries have different tax structures and different levels of taxation

c. measurement units are not necessarily equivalent across countries.

d. differences in data accuracy on account of differences in the sophistication of procedures adopted.

e. all of these.

16. In using secondary sources, it is important for a researcher to know

1. the resources and reputation of the organization

reporting the data.

2. whether the data were collected to serve the interests of

a particular group.

3. the methodology used to collect the data.

a. 1

b. 2

c. 3

d. 1, 2, and 3

e. 1 and 2

17. All of the following are units used to aggregate census data except

the

a. Standard Metropolitan Statistical Area.

b. block group.

c. suburban tract.

d. block.

e. all of these are used to aggregate census data.

18. NAICS system has _____ broad sectors.

a. 5

b. 20

c. 4

d. 6

e. 10

19. Data that has been specified, collected, and recorded by someone

other than the user are known as

a. historical data.

b. external data.

c. primary data.

d. secondary data.

e. tertiary data.

20. Which one of the following is not an external data source?

a. Government reports

b. Trade association journals

c. Companies' annual reports

d. Newspapers

e. Customer feedback

21. NAICS industries are identified by a _____ code, in contrast to the ______SIC code.

a. four‐digit; six‐digit

b. six‐digit; four‐digit

c. 10-digit; 20-digit

d. 20-digit; 10-digit

e. none of these.

22. A(n) ________ is a service that identifies groups of consumers who

share demographic and lifestyle characteristics.

a. PRIZM

b. Dun's market identifier

c. Standard Industrial Classification

d. Economic Information System

e. Arbitron Panel

23. The major use(s) of secondary data in international marketing

research is

1. selecting countries that merit in-depth investigation.

2. determining the initial estimate of demand potential.

3. monitoring environmental changes.

a. 1

b. 2

c. 3

d. 1 and 2

e. 1, 2, and 3