Test Bank Market Research Essentials Chapter 4

Marketing Management, 3e (Marshall)

Chapter 4 Market Research Essentials

1) A major problem for most managers today is having too little information.

2) A market information system (MIS) is a software package that companies purchase to help decision makers cope with critical information.

3) Market information systems serve as an information bank where important data are stored until it is needed.

4) The information needs of all marketing managers are essentially the same.

5) In evaluating internal and external information sources, companies need to consider not only what information is important but also the source of the data.

6) In marketing planning, situation analysis involves identification of competitive strengths, weaknesses, and trends.

7) Technology companies such as Apple use market research to understand product users' needs and also to understand the competition.

8) Managers are typically aware of all the information in their own company.

9) Most companies do a good job of maximizing their existing information.

10) Salespeople's reports summarizing each sales call are a source of internal data.

11) Not tracking and responding to demographic changes is a management failure because the data are easy to obtain and major changes occur slowly.

12) Companies can use demographic data to create profiles of current customers and identify new market opportunities.

13) Good marketing research looks to develop answers to fit a predecided outcome.

14) Secondary data are collected for some other purpose than the problem currently being considered.

15) Research almost always involves secondary data collection.

16) Market research can be a useful tool helping senior managers identify and deal with the real issue.

17) Causal research is useful for identifying characteristics of a target market or determining how customers use a product.

18) Primary data are collected specifically for the research question at hand.

19) An in-depth interview is a structured conversation with an individual who was selected at random.

20) Open-ended questions allow respondents to express themselves freely, which tends to result in more detailed responses that are useful for exploratory research.

21) Conducting an online (virtual) focus group is an appropriate alternative to a traditional focus group format, and it offers cost-efficiency and convenience.

22) A continuing process of identifying, collecting, analyzing, accumulating, and dispensing critical data to marketing decision makers is known as ________.

A) market-driven strategic planning

B) a marketing concept

C) the marketing mix

D) marketing orientation

E) a market information system

23) A shoe manufacturing company is interested in selling its products in a new country. Before entering the marketplace, the company wishes to gather information about how the country's citizens set priorities and make buying decisions. For this purpose, the company is most likely to analyze the country's ________.

A) political environment

B) economic conditions

C) technological transformations

D) natural world

E) geographic changes

24) Which of the following is one of the three factors a company needs to consider when creating a market information system?

A) information needs

B) technology needs

C) flexibility

D) diversity

E) demographics

25) Which of the following is an internal source of collecting information for making marketing decisions?

A) demographics

B) ethnic groups

C) technology transformations

D) economic conditions

E) customer orders

26) The marketing manager of Zenith Corp. is interested in ranking clients on the basis of their profitability, and accesses a database that tells him about the frequency and size of each client's order along with the actual costs per order. This database is part of the ________ system.

A) sales information

B) customer relationship management (CRM)

C) financial information

D) employee management

E) promotion management

27) The sales manager at a company wants to keep informed, so he collects, analyzes, and stores data from the macro environment on a continuous basis. This illustrates the concept of ________.

A) portfolio analysis

B) exploratory research

C) marketing intelligence

D) probability sampling

E) mechanical observation

28) The marketing manager for Ned's Bar and Grill notices that his typical customer is a male college student. In the context of external information sources, he is using ________ to define his market.

A) stereotypes

B) estimations

C) visual cues

D) demographics

E) instincts

29) Jan Smith, the marketing manager of Big Wheel Autos, has noticed that in many European countries more of the population is moving into urban centers. This has resulted in an increased demand for subcompact cars that can maneuver through these congested streets rather than full-size automobiles. In the context of external information sources, this is an example of how ________ can influence marketing management decisions.

A) technology transformations

B) geographic changes

C) marketing plans

D) customer inquiries

E) internal factors

30) Which of the following is an external source of collecting information for making marketing decisions?

A) customer orders

B) marketing plans

C) salesperson information systems

D) customer inquiries

E) ethnic groups

31) Concerned by recent negative trends in economic indicators such as the consumer price index, gross domestic product, and inflation, the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending. His recommendation is based on ________ data.

A) microeconomic

B) macroeconomic

C) qualitative

D) observational

E) subjective

32) Small portable computers, powerful statistical software packages, and Internet-enabled supply chain management systems are all examples of how ________ influences marketing.

A) competition

B) the legal environment

C) the natural world

D) technology

E) training

33) The marketing manager of Big Wheel Motors notices an increased demand for "green" cars that use less fossil fuel and emit fewer pollutants. Under which of the following external information sources for making marketing decisions will this information be included?

A) legal environment

B) technology transformations

C) natural world

D) competition

E) economic conditions

34) The marketing manager for Dream Weaver Textiles reads in a trade magazine that the Federal Trade Commission is in the process of revising content labeling requirements for textiles that claim to be natural. In the context of external forces affecting marketing decisions, this represents the ________.

A) economic conditions

B) geographic changes

C) technological transformations

D) political/legal environment

E) natural world

35) Since there are so many other companies that operate in the food service industry, the marketing manager of Gourmet Dining pays detailed attention to what other restaurants that offer similar meals, prices, and services are doing. In the context of external forces affecting marketing decisions, the marketing manager's focus is on ________.

A) demographics

B) competition

C) the political/legal environment

D) technological transformations

E) the natural world

36) ________ is defined as the methodical identification, collection, analysis, and distribution of data to discover and solve marketing problems or enhance good decision making.

A) Marketing control

B) Market research

C) Market development strategy

D) Marketing mix

E) Market orientation

37) Good market research will ________.

A) develop answers to fit an already decided outcome

B) not enhance the validity of information

C) happen by accident

D) be subjective

E) be impartial

38) The marketing manager for Brand A Razors, a strong national brand, believes he knows how customers will react to a new product offering, but he conducts market research so that he can provide justification for this new product. This cannot be considered quality market research because it ________.

A) fails to prejudge the outcome

B) enhances the validity of the information

C) is not impartial and objective

D) enhances good decision making

E) is a result of the methodical analysis of data

39) Which of the following is NOT a part of the market research process?

A) defining the problem

B) implementing the recommendations

C) establishing the research design

D) collecting the data

E) searching secondary sources

40) In the market research process, once the management research deliverable has been identified, the next step is to ________.

A) define the research problem

B) establish the research design

C) search secondary sources

D) collect the data

E) analyze the data

41) Apex Jerseys, a manufacturer of sports apparel and sports equipment, has experienced a sharp drop in sales over the last quarter. The marketing manager asks the marketing research department to investigate this alarming development. The first step taken by the researchers in their process should be to ________.

A) design a questionnaire to gather pertinent data

B) decide which statistical procedure to use

C) determine sources of internal secondary data

D) identify the sample of customers to survey

E) formulate a specific research problem

42) B&B Co. is conducting market research to determine if a new beverage will be successful. The company is in the process of determining the kind of research that needs to be done, the information needed, and the sampling plan—including the research participants. B&B is in which stage of the market research process?

A) collecting the data

B) searching secondary sources

C) establishing the research design

D) analyzing the research data

E) reporting the research findings

43) Reasons for conducting exploratory research include ________.

A) discovering the cause and effect between variables

B) discovering differences across demographic characteristics

C) identifying characteristics of the target market

D) assessing competitors' actions in the marketplace

E) answering the research question

44) A restaurant's marketing manager is interested in finding out if reducing the price of food items will lead to increased sales. For this purpose, the manager should conduct ________ research.

A) causal

B) exploratory

C) descriptive

D) secondary

E) longitudinal

45) Sheena, marketing manager for Yaard-Vark Lawn Tractors, is interested in the relationship between the prices of lawn tractors and the level of sales. To test whether increasing prices will lead to a change in sales and, if so, how much of a change, she should use ________ research.

A) causal

B) descriptive

C) random

D) academic

E) exploratory

46) Brand X diapers, a national brand, has been declining in absolute level of sales for the last four consecutive months. The product manager asks the market research department to do a study to determine why sales have declined. The most appropriate research type would be ________.

A) a laboratory experiment

B) a field experiment

C) a descriptive study

D) an exploratory research

E) a causal research 

47) The sole proprietor of Sam's Swings is interested in gaining a better understanding of his current customers in terms of certain demographic and lifestyle characteristics so he may better serve their needs. For this purpose, he should most appropriately conduct ________ research.

A) causal

B) descriptive

C) random

D) academic

E) exploratory

48) The owners of Tyrell's Tattoo Shop are interested in determining the nature of the relationship between their clients' professional occupation and the number of tattoos that individuals have. In this case, which research will result in the most appropriate way to explain the nature of this relationship?

A) descriptive

B) exploratory

C) longitudinal

D) clinical

E) random

49) Which of the following is TRUE of descriptive research?

A) It primarily involves developing hypotheses for testing in exploratory research.

B) It is usually the first step when more sophisticated research is needed.

C) It uses many different methods including secondary data, surveys, and observation.

D) It primarily tries to discover the cause and effect between variables.

E) It uses a different, less restrictive and rigorous methodology than exploratory research.

50) Brand Electronics' marketing manager would like to know about the typical consumer who purchases handheld computers. He begins by searching online and in databases for this information, but soon discovers that a product is too new for the sources to be of help. In this instance he will need ________ data to solve his research problem.

A) secondary

B) governmental

C) experimental

D) primary

E) subjective

51) Burger Bistro recently experienced a decline in hamburger sales after salmonella was discovered during a health inspection at one of the restaurants. The marketing manager was interested in how other restaurants had dealt with similar situations. Which of the following types of data would be the most appropriate way to find answers related to this marketing problem?

A) secondary

B) subjective

C) experimental

D) primary

E) quantitative

52) Which of the following types of research is less structured and can employ methods such as surveys and interviews to collect the data?

A) quantitative

B) qualitative

C) computational

D) statistical

E) mathematical

53) The marketing managers of Brand Z Shoes have clearly defined their research problem as "If we increase our promotions expenditures, by what percentage will it increase sales?" They have also decided that they need primary data to answer this question. To collect these data, it is best for them to use ________ research.

A) qualitative

B) mechanical

C) exploratory

D) quantitative

E) case-based

54) Vegan Videos has decided to conduct exploratory research to clarify its marketing-related research problem. The company needs to collect primary data using qualitative research, and it needs to collect this data from 10 customers with only one researcher. In this case, Vegan Videos would most likely use a(n) ________ to collect the data and meet its short deadline.

A) in-depth interview

B) experimental design

C) statistical method

D) case-study research

E) focus group

55) The marketing manager for Joe's Shoe-Mart has decided to conduct descriptive research using primary data. Based on some preliminary research of trade journals and interviews with customers, she knows what questions to ask. However, the customers she wants information from are spread out over many stores in several states. The best technique for her to collect this data would be ________.

A) in-depth interviews

B) case studies

C) focus groups

D) experiments

E) surveys

56) The marketing manager of Low Cost Retailer wants to conduct descriptive research to gather information on what customers purchase, when they purchase, and how often they purchase certain products. For this purpose, the marketing manager should use ________.

A) an in-depth interview

B) a focus group

C) behavioral data

D) causal data

E) a laboratory experiment

57) The manager of Gina's Groceries wanted to see how customers would react to some new displays. To collect this information, she posted employees where they could see the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. In this case, she is using ________ for her market research.

A) situation analysis

B) secondary data

C) in-depth interviews

D) observational data

E) focus groups

58) Core Market Research is testing how customers react to a proposed advertising campaign for Go Fast Sports Cars. The researchers scan consumers' brains using an fMRI machine while the consumers view a series of advertisements so that they can monitor the blood flow in different areas of the brain. In this case, Core is using ________ for its market research.

A) in-depth interviews

B) mechanical devices

C) behavioral measures

D) structured surveys

E) focus groups

59) Juan Martinez, a researcher for ABC Research Group, is working on crafting a survey for a client. He is concentrating on framing the questions, selecting response choices, refining the wording, and determining how many questions to ask. In the context of establishing the research design, Juan is focusing on the ________.

A) type of research

B) nature of data

C) nature of data collection

D) information content

E) sampling plan

60) Dan is creating a survey for his company. The question he is currently working on asks his business-to-business customers to describe the ideal purchasing transaction. Dan is utilizing a(n) ________ question.

A) hypothetical

B) open-ended

C) observational

D) closed-ended

E) statistical

61) While writing a customer satisfaction survey, the marketing director for Brand X Bank created a set of questions that customers would answer by circling a number between 1 and 7. The number 1 meant that the customers were very dissatisfied by that aspect of the experience, whereas 7 meant that they were very satisfied. The director is using ________ questions to collect this information.

A) behavioral

B) open-ended

C) observational

D) closed-ended

E) qualitative

62) The marketing manager of a firm has hired a market research team. Together, the manager and the researchers decide that they need data from current customers and noncustomers who fit a specific demographic and lifestyle profile. In the context of research design activities, the selection of these individuals as targets for data collection represents the ________.

A) type of research

B) nature of data

C) nature of data collection

D) information content

E) sampling plan

63) In the context of sampling plan, a comprehensive record of each individual in the population of interest is known as a ________.

A) survey

B) database

C) focus group

D) sample

E) census

64) The marketing director of Bank Y decides to conduct a survey of 5,000 current customers to gather information to answer the research problem of what the bank can do to improve its services and customer satisfaction. She starts with a database of 50,000 current customers and randomly picks a name on the list to start. She then selects every tenth person as she goes down the list to receive a survey. She is using a ________ sampling method to select the participants for the study.

A) probability

B) quota

C) convenience

D) observational

E) judgment

65) The manager of Big Brand Clothing wants to determine what items consumers are looking for this Christmas so that he can plan his orders. He decides to collect data for the purpose by stationing employees outside the store on a particular Saturday with a list of questions to ask willing shoppers to answer as they pass by. In this case, the manager is using a ________ sampling method to select respondents.

A) probability

B) random

C) systematic

D) nonprobability

E) stratified

66) ________ sampling uses a specific set of procedures to identify individuals from the population to be included in the research.

A) Snowball

B) Convenience

C) Probability

D) Quota

E) Judgment

67) The CEO of Big Wheel Automotive is concerned about declining sales. He has identified his research problem as the fact that his competitors are drawing away his business. He purchases access to J. D. Power's automobile rankings to learn about possible reasons for the shift in consumer purchasing. In this case, the CEO is using ________ to collect secondary data for his research problem.

A) a survey questionnaire

B) a market research organization

C) government sources

D) focus groups

E) unstructured interviews

68) A marketing manager is considering a new advertising campaign for Guzzle Beverages. She purchases six months of scanner data for Cruncheez Snack Foods, a company that recently ran a similar campaign. She wants to use this information to determine the campaign's effectiveness before implementing it for Guzzle. In this case, the marketing manager is using ________ to collect the needed information for research.

A) mechanical observation

B) unstructured interviews

C) observational data

D) secondary data

E) behavioral data

69) Which of the following statements is true of secondary data?

A) Secondary data are current.

B) A specific answer to a research problem will be possible using secondary data alone.

C) Secondary data are relatively more expensive.

D) Getting information through secondary data is time-consuming.

E) Secondary data will not fit the research problem exactly.

70) While researching the possible impact of economic conditions on a proposed new product introduction on the Internet, you find an article in Bloomberg Business Week online that reviews how new products have fared during times of rising inflation. Which of the following sources of secondary data does this scenario exemplify?

A) market research organizations

B) general knowledge sites

C) government sources

D) focus groups

E) in-depth interviews

71) Which of the following is an advantage of secondary data?

A) Secondary data has high validity regardless of the methodology used.

B) Secondary data often fits the research problem exactly.

C) Secondary data are a fast way to get information.

D) Secondary data can alone provide specific answer to a research problem.

E) Secondary data are always updated and current.

72) An advantage of secondary data over primary data is that they ________.

A) provide specific answer to a research problem

B) are less expensive

C) fit the research problem exactly

D) have high validity regardless of the methodology used

E) are more current

73) The account manager of a market research firm is conducting secondary research on consumer preferences in energy drinks for his clients. His client's drink is 100 percent organic, but all of the secondary data he has found contains only beverages that contain a majority of artificial ingredients. This scenario illustrates the fact that secondary data ________.

A) can alone provide specific answer to a research problem

B) are more expensive than primary data

C) are always updated and current

D) will not fit the research problem exactly

E) has high validity regardless of the methodology used

74) The owner of Joe's Pool Hall found some secondary data online that measured consumer reactions to certain amenities in bars and nightclubs. However, he is concerned about how these data were collected and from whom it was collected. This represents the concerns associated with the ________ of secondary data.

A) validity

B) cost

C) speed

D) aptness

E) availability

75) The marketing manager for Brand K retail stores is in the process of getting primary data from customers to learn which current products need improvement. She is using a probability sampling method, but is having trouble figuring out how to contact customers and get them to participate. She is also debating alternative ways to record the responses so that they can be analyzed. She is concerned with the ________ part of the market research process.

A) problem definition

B) research design

C) data collection

D) data analysis

E) reporting

76) For managers, the key section of the market research report that presents a synopsis of the analysis and essential findings is the ________.

A) nature of data

B) executive summary

C) sampling plan

D) information content

E) research design

77) In the market research process, once the data are collected, coded, and verified, the next step is to ________.

A) report the findings

B) establish a research design

C) choose a sampling method

D) search secondary sources

E) analyze the information

78) Mark Jones, the marketing manager for Big Brand Furniture, is conducting an analysis of internal sales data. These data are collected and stored electronically on site by each store. He is able to access the data on his computer at the corporate headquarters. He is gathering this information via a(n) ________.

A) CRM system

B) information broker

C) market research organization

D) online database

E) sales force automation system

79) The manager of an automotive after-market specialties firm is interested in collecting secondary data. He is concerned with the future of the industry and his competition. He would like to find industry research reports along with industry and company analysis of his competitors. His best sources of this information would be ________.

A) independent online databases

B) research studies

C) CRM systems

D) online focus groups

E) sales force automation systems

80) As the marketing manager for National Household Cleaner Co., you are interested in collecting some qualitative primary data about what outcomes consumers want from your products. You would like the customers you study to react to each other's ideas. However, you want information from a wide range of customers from across the country. The best way to achieve this is to use a(n) ________.

A) online database

B) survey study

C) market research organization

D) online focus group

E) CRM system

81) A disadvantage of online focus groups is that ________.

A) they require someone to transcribe the spoken words into a transcript

B) they provide data in a format that is usually difficult to read and analyze

C) participants can become distracted and environmental factors can affect their concentration

D) they create an environment where participants are required to focus on the questions

E) participants cannot respond from a remote location such as from home or workplace

82) Health+ is conducting an online focus group to learn more about the nutritional habits of senior citizens and the underlying causes of these behaviors. They are having problems because many of the members of their target market do not own computers. Which of the following disadvantages of online focus groups does this scenario illustrate?

A) limited access

B) identity verification

C) environmental control

D) family issues

E) qualification

83) The marketing management team of Brand Z Toys is looking at the possibility of opening a new plant in one of several developing countries. Before they decide on which country they want to build in, they want to conduct some preliminary research including local population demographics and lifestyle characteristics. However, they have discovered that the governments in several of these countries do not have a department that collects these data and no independent research firm has measured any of these areas. This demonstrates which issue with secondary data in global markets?

A) extendibility

B) accessibility

C) dependability

D) compatibility

E) comparability

84) When examining some secondary data from Uzbekistan, the marketing manager of RS Chemicals notices that the income figures seem high even after conversion to U.S. dollars. He later learns that the government agency that collects this information records total household income rather than per capita income as in most other countries. This demonstrates which issue with secondary data in global markets?

A) extendibility

B) accessibility

C) dependability

D) compatibility

E) comparability

85) The recent controversy over the age of Chinese Olympic gymnasts because of differing ages on their passports and in government files exemplifies the difficulty with the ________ of secondary data in global markets.

A) extendibility

B) accessibility

C) dependability

D) compatibility

E) comparability

86) The marketing management team of Superior Foods Inc. hired a research firm to collect preference data from consumers in several former Soviet Bloc countries. However, the researchers struggled to get these data, especially from older citizens who were afraid that the information would be used against them, as it had been when they were under a Communist government. Which of the following problems associated with collecting primary data in global markets does this scenario exemplify?

A) unwillingness to respond

B) limited access

C) unreliable sampling procedures

D) inaccurate language translation

E) Insufficient comprehension

87) To ensure the primary data they collected about consumer reactions to their product were accurate, the makers of Classic Toiletries hired a single research firm to visit certain cities in various countries. In the past, the company had used mail and telephone surveys by local companies in each country to gather data, but it was concerned about whom these companies were surveying and if they actually fit the demographic and lifestyle profiles of Classic's target market. Classic hired a new research firm to overcome the problem of ________ that can occur when collecting primary data in global markets.

A) unwillingness to respond

B) limited access

C) unreliable sampling procedures

D) inaccurate language translation

E) insufficient comprehension

88) The primary difference between domestic and international research is that, international market data are ________.

A) more easily comparable than domestic data

B) more accurate than domestic data

C) more reliable than domestic data

D) more difficult to understand than domestic data

E) more easily accessible than domestic data

89) A manufacturer of food products is looking at entering several new markets in developing countries. Before it does this, the company wants to collect data on item and flavor preferences in these markets. It sends out a survey that has been accurately translated into the local language, but it still receives inconsistent results. In talking with a consulting firm, the manufacturer is informed that several of these countries have extremely high illiteracy rates and the survey answers may be only random guesses by the respondents. Which of the following problems associated with collecting primary data in global markets does this scenario exemplify?

A) unwillingness to respond

B) limited access

C) unreliable sampling procedures

D) inadequate demographic information

E) insufficient comprehension

90) Which of the following is TRUE of collecting data for market research in global markets?

A) The quantity and quality of data found in the United States are not available in most of the world.

B) The culture in countries such as China and India encourages the free flow of information.

C) International market data are easier to get and understand than domestic data.

D) Essential information about economic and general business trends cannot be gathered from secondary sources.

E) In most Western European countries, it is much more difficult to access quality data than in the rest of the world.

91) Explain three ways that a CRM system can be used for marketing research.

92) Name and describe the six external forces that affect marketing decisions.

93) Briefly describe the six steps in the market research process.