Exam 2

Question 1

What is marketing research?

Answer 1

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Question 2

Why is marketing research essential?

Answer 2

It’s crucial at every stage of marketing.

Question 3

What are the steps in the marketing research process?

Answer 3

Define the Problem
Develop the Research Plan
Implement the Plan
Interpret and Report the Findings
Feedback

Question 4

What does ‘defining the problem’ involve?

Answer 4

Setting research objectives. Objectives should have a clear research purpose, but not be too broad or narrow.

Question 5

What does ‘developing the research plan’ involve?

Answer 5

Specifying constraints, identifying data needed, and determining how to collect data.

Question 6

What are the two main types of data?

Answer 6

Primary and Secondary.

Question 7

What is secondary data?

Answer 7

Information that already exists, collected for another purpose.

Question 8

What are the advantages of secondary data?

Answer 8

Time-saving
Relatively inexpensive
Some data are too large for individual collection

Question 9

What are the disadvantages of secondary data?

Answer 9

Could be out of date
Definitions/categories may not fit perfectly

Question 10

What is primary data?

Answer 10

Information collected for the specific purpose at hand.

Question 11

What is a survey/interview?

Answer 11

A way of collecting primary data. Methods include mail, online, fax, telephone, individual interviews, and mall intercepts.

Question 12

What is the observational approach?

Answer 12

Gathering data by observing people, actions, or situations. Useful when asking questions is not effective.

Question 13

What is a focus group?

Answer 13

A small group of people who gather for a few hours with a trained interviewer to talk about a product, service, or organization.

Question 14

What is an experiment in marketing research?

Answer 14

An attempt to measure the causal relationship between two or more variables.

Question 15

What is the independent variable?

Answer 15

The variable being manipulated in an experiment.

Question 16

What is the dependent variable?

Answer 16

The variable that reflects the impact of the independent variable.

Question 17

What is Big Data?

Answer 17

Large amount of new data generated in real-time.

Question 18

What is marketing analytics?

Answer 18

The tools, technologies, and processes to dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.

Question 19

What is the purpose of mystery shoppers?

Answer 19

To obtain the point of view of actual customers. They blend in with other shoppers.

Question 20

How does understanding customers help marketers?

Answer 20

It helps in setting a marketing strategy and designing a marketing mix.

Question 21

What are the main categories of factors affecting consumer behavior?

Answer 21

Cultural, Social, Personal, and Psychological.

Question 22

What are cultural factors?

Answer 22

Cultures and subcultures that impact consumer behavior, including regional, generational, political, religious, and racial cultures.

Question 23

What is a reference group?

Answer 23

A group that influences a person’s attitudes, behaviors, and brand choices.

Question 24

What is an opinion leader?

Answer 24

A person who exerts social influence due to expertise, knowledge, or credibility.

Question 25

What is word-of-mouth influence?

Answer 25

The impact of personal recommendations from trusted individuals on buying behavior.

Question 26

What is influencer marketing?

Answer 26

Enlisting influencers to promote a product or brand.

Question 27

What personal factors influence consumer behavior?

Answer 27

Occupation, Age and Life Stage, Economic Situation, Lifestyle, Personality, and Self-Concept.

Question 28

What is motivation (drive)?

Answer 28

A need that drives a person to seek satisfaction.

Question 29

What is perception?

Answer 29

The process of selecting, organizing, and interpreting information to form a meaningful view of the world.

Question 30

What are the stages in the Buyer Decision Process?

Answer 30

Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Question 31

What is the initial consideration set?

Answer 31

The small number of brands consumers initially consider for purchase.

Question 32

What does the active evaluation phase involve?

Answer 32

Consumer-driven activities like online reviews, word-of-mouth, and past experiences.

Question 33

What happens at the moment of purchase?

Answer 33

Consumers finalize decisions, often influenced by in-store (online/offline) experience.

Question 34

Why is the post-purchase experience important?

Answer 34

It influences future buying decisions and word-of-mouth recommendations.

Question 35

What is the difference between active and passive loyalists?

Answer 35

Active loyalists stick with and recommend a brand, while passive loyalists stay without commitment and may switch brands.

Question 36

What are business markets comprised of?

Answer 36

Organizations that buy goods/services for production or resale.

Question 37

How does the size of the business market compare to the consumer market?

Answer 37

The business market is larger than the consumer market.

Question 38

How do business markets differ from consumer markets in terms of structure and demand?

Answer 38

Fewer & larger buyers, Less price elasticity (short run), Derived demand (from final consumer demand), Direct purchasing (fewer intermediaries).

Question 39

How does the nature of the buying unit differ in business markets?

Answer 39

More decision participants and a professional purchasing process.

Question 40

How do decisions and the decision process differ in business markets?

Answer 40

More complex, longer, and formalized decision-making.

Question 41

What is a straight rebuy?

Answer 41

Routine reorder without modifications.

Question 42

What is a modified rebuy?

Answer 42

A reorder with changes in specifications, price, terms, or suppliers.

Question 43

What is a new buy?

Answer 43

A first-time purchase of a product or service.

Question 44

What is the buying center?

Answer 44

Individuals and units involved in the purchase decision process.

Question 45

Who are the participants in the buying center?

Answer 45

Initiators, Users, Influencers, Deciders, Approvers, Buyers, Gatekeepers.

Question 46

What are the major influences on business buyers?

Answer 46

Economic, technological, political, cultural, and competitive factors.

Question 47

What is marketing strategy?

Answer 47

A plan to serve specific market segments profitably.

Question 48

Why can’t a business be everything to everyone?

Answer 48

Buyers have diverse needs, and companies have limited resources.

Question 49

What is segmentation?

Answer 49

Dividing a market into distinct groups with different needs or behaviors.

Question 50

What are the types of segmentation?

Answer 50

Geographic (location-based), Demographic (age, income, gender, etc.), Psychographic (lifestyle, personality), Behavioral (knowledge, usage, response).

Question 51

What are the requirements for effective segmentation?

Answer 51

Differentiable, Measurable, Substantial, Actionable, Accessible.

Question 52

What is a target market?

Answer 52

A market segment a company chooses to serve.

Question 53

What are the different targeting strategies?

Answer 53

Undifferentiated (Mass Marketing) – One offer for all, Differentiated (Segmented Marketing) – Separate offers for different segments, Concentrated (Niche Marketing) – Large share of a small segment, Micromarketing – Customizing products for local/individual needs.

Question 54

What is product/brand positioning?

Answer 54

How a product is perceived relative to competitors.

Question 55

What are ways to differentiate a product/brand?

Answer 55

Product differentiation, Service differentiation, Price differentiation, Channel differentiation, People differentiation, Image differentiation.

Question 56

What is a value proposition?

Answer 56

The unique mix of benefits that differentiates a brand.

Question 57

What is a positioning statement?

Answer 57

A statement summarizing how a company differentiates and positions its brand.

Question 58

What are the parts of a positioning statement?

Answer 58

Target segment & needs, Brand/product name, Product category/frame of reference, Point of difference/value proposition.