EXAM 2

Question 1

Marketing research should be used only to produce favorable recommendations for senior management to consider.

Answer 1

False

Question 2

One of the benefits of marketing research is it reduces the uncertainty under which managers make decisions.

Answer 2

True

Question 3

The marketing research process follows five steps, and to be effective, they must be followed in order without omitting any steps.

Answer 3

False

Question 4

Before conducting market research, the first question to ask is, “What are we trying to learn?”

Answer 4

True

Question 5

Briena is looking at the results of a syndicated study conducted two years ago. Briena is looking at primary data.

Answer 5

False

Question 6

A major advantage of primary data collection is that it can be tailored to fit the pertinent research questions.

Answer 6

True

Question 7

In the marketing research process, data collection happens after research design.

Answer 7

True

Question 8

Warren is conducting a marketing research project. He is not sure what questions to ask or what types of consumers he should talk to. Warren is ready to conduct quantitative research

Answer 8

False

Question 9

Quentin is in a group of eight to twelve people and is being asked questions by a trained moderator. Quentin is part of an in-depth interview group.

Answer 9

False

Question 10

Donald is analyzing and interpreting data. In the process, he is converting data into information.

Answer 10

True

Question 11

Data that have been collected prior to the start of the current research project are considered primary data.

Answer 11

False

Question 12

The terms “external secondary data” and “syndicated data” mean the same thing.

Answer 12

False

Question 13

When companies store information on customers’ purchase histories in large computer files, this is known as data warehousing

Answer 13

True

Question 14

Panel data are always secondary data

Answer 14

False

Question 15

Fingerprints are an example of biometric data.

Answer 15

True

Question 16

When survey data are analyzed in depth to determine consumer attitudes toward a product, this is an example of sentiment mining.

Answer 16

False

Question 17

A disadvantage to using secondary data is that it might not be precisely relevant to the information needed.

Answer 17

True

Question 18

When social media are used to gather research on customer attitudes and behaviors, protecting consumers’ privacy is up to the company conducting the research.

Answer 18

False

Question 19

Using wireless EEG scanners to measure involuntary brain waves that occur when a consumer views a product is called neuromarketing.

Answer 19

True

Question 20

Companies are legally required to disclose their privacy practices to customers on an annual basis.

Answer 20

True

Question 21

Marketing research includes all of the following EXCEPT

A. collecting data.

B. creating data.

C. recording data.

D. interpreting data.

E. analyzing data.

Answer 21

creating data

Question 22

Political consultants have been using market research for decades to help their candidates understand

A. who makes up the voting public and how to reach them.

B. what ethical lapses they can get away with.

C. which consumers spend the most money.

D. how large their campaign signs should be.

E. how to buy the votes they need.

Answer 22

who makes up the voting public and how to reach them.

Question 23

Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of market research primarily to

A. provide a link between him and his production center.

B. help him understand the needs of his customers.

C. monitor his competitors.

D. increase profits through the sale of syndicated data.

E. decide how to price his new products.

Answer 23

monitor his competitors

Question 24

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients’ comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to

A. provide a link between herself and her profession.

B. help her to understand the needs of her customers.

C. monitor her competitors.

D. decrease the uncertainty associated with decision making.

E. improve profitability.

Answer 24

help her to understand the needs of her customers

Question 25

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in

A. syndicated surveying.

B. focus group analysis.

C. behavioral analysis.

D. data mining.

E. structured sampling.

Answer 25

data mining.

Question 26

Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers’ billions of purchases are analyzed using data mining techniques to uncover

A. the impact of income tax laws.

B. patterns of consumers’ purchasing behavior.

C. the relationship between primary and secondary data.

D. new ideas for human resources management.

E. competitors’ pricing strategies.

Answer 26

patterns of consumers’ purchasing behavior.

Question 27

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to

A. understand psychographic motivations.

B. create marketing mixes based on consumer self-values.

C. build separate marketing programs for different demographic segments.

D. determine which syndicated data warehouse services to purchase.

E. find out which competitors its customers purchase from.

Answer 27

build separate marketing programs for different demographic segments.

Question 28

From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about

A. secondary data retrieval systems.

B. exploitation by foreign marketers.

C. their ability to get credit cards.

D. preserving their right to privacy.

E. the unstructured nature of market research.

Answer 28

preserving their right to privacy.

Question 29

When conducting a survey about choosing vacation destinations, Hillary will need to __________ to get reluctant respondents to provide honest information.

A. choose only highly verbal consumers

B. assure consumers that their individual responses will be kept confidential

C. use only focus group interviews

D. ask unstructured questions

E. create an efficient data warehouse

Answer 29

assure consumers that their individual responses will be kept confidential

Question 30

The marketing research process follows five steps, and researchers

A. may not always go through them in the exact sequence if the situation changes or new information is discovered.

B. should maintain the integrity of the process by following each step sequentially and thoroughly.

C. often collect data before defining the research objectives.

D. should be prepared to present the results before completing the analysis if they are under a great deal of pressure to meet a deadline.

E. may follow the process by completing all steps at once instead of planning the process first.

Answer 30

may not always go through them in the exact sequence if the situation changes or new information is discovered.

Question 31

The first question a marketing researcher should ask when considering a research study is

A. Who will pay for it?

B. Will the research be useful?

C. When is the due date?

D. What sample size will be needed?

E. Should we use structured or unstructured questions?

Answer 31

Will the research be useful?

Question 32

Assuming that a market research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is:

A. How will the results be presented?

B. Will observational research be considered intrusive?

C. Is top management committed to the study?

D. How will the questions be defined?

E. Who will manage the research?

Answer 32

Is top management committed to the study?

Question 33

Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if

A. the research is expensive.

B. all participants like the research design.

C. the research does not cost too much.

D. the results will be used in making management decisions.

E. the research is finished quickly.

Answer 33

the results will be used in making management decisions.

Question 34

Benefit-cost analysis in market research weighs

A. the benefits of answering questions against the cost of the research.

B. the benefit of qualitative research against the cost of quantitative research.

C. the benefit of primary data research against the cost of secondary data research.

D. the benefit of a data warehouse against the cost of syndicated data.

E. the benefit of internal secondary data against the cost of external secondary data.

Answer 34

the benefits of answering questions against the cost of the research.

Question 35

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to

A. develop a budget.

B. begin to collect data.

C. summarize their preliminary conclusions to present to managers.

D. begin recommending changes to the new product line based on ideas developed in the design phase.

E. analyze the data.

Answer 35

begin to collect data.

Question 36

Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Business people tend to be more cautious before embarking on a marketing research study, recognizing that research is often

A. beyond most managers’ ability to comprehend.

B. expensive and time consuming.

C. an academic exercise of little real value.

D. an impediment to decisive management.

E. of little use in real marketing situations.

Answer 36

expensive and time consuming.

Question 37

Market research begins with

A. designing the research project.

B. analyzing data.

C. defining objectives and research needs.

D. presenting results.

E. creating the data collection process.

Answer 37

defining objectives and research needs.

Question 38

The manager of a company selling baby products asks you to conduct research into the question, “Is life expectancy getting longer in Kuwait?” The problem with this research objective is that

A. it is irrelevant to the baby products company.

B. it is already known and available from the U.S. Bureau of the Census.

C. it will lead to a set of unstructured questions.

D. it is a research question that probably cannot be answered with any level of accuracy.

E. it is a question related to another culture.

Answer 38

it is irrelevant to the baby products company.

Question 39

The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, “What percentage of people in Kansas live in communities of fewer than 10,000 people?” The problem with this research objective is that

A. it is irrelevant to the cellular company.

B. it is already known and available from the U.S. Bureau of the Census.

C. it will lead to a set of unstructured questions.

D. it is a research question that probably cannot be answered with any level of accuracy.

E. it is too expensive to determine the answer.

Answer 39

it is already known and available from the U.S. Bureau of the Census.

Question 40

After defining objectives and research needs, the next step in the marketing research process involves

A. research evaluation.

B. data collection.

C. data analysis.

D. research design.

E. report writing.

Answer 40

research design.

Question 41

During the research design step of the marketing research process, researchers identify the type of data needed and

A. the statistical software to be used.

B. the dates when data will be collected.

C. the forum in which the data will be presented.

D. the identities of research participants in the project.

E. the type of research necessary to collect the data.

Answer 41

the type of research necessary to collect the data.