Market Research

Question 1

Weaknesses of a survey technique can include:

a. Can be repeated to measure changes over time
b. Can tell you about a larger population
c. Can reveal differences between different groups
d. Can learn what people think but not why they think that way

Answer 1

d. Can learn what people think but not why they think that way

Question 2

Primary Customer research can involve:

a. Questionnaires, interviews, and focus groups
b. Internet articles
c. Gov’t economica data
d. Previously published research data

Answer 2

a. Questionnaires, interviews, and focus groups

Question 3

According to the results of a 1997 PDMA study that evaluated the use of market research tools in NPD, based upon 383 projects, which of the following was the most essential and used tool?

a. Survey research, sampling and statistics
b. Market testing
c. Customer site visits
d. Focus groups/panels

Answer 3

c. Customer site visits

Question 4

An example of secondary market research includes:

a. Consumer reports
b. Focus groups
c. Customer visits
d. All of the above

Answer 4

a. Consumer reports

Question 5

Qualitative market research is:

a. Generally conducted with a small number of respondents
b. Structured toward gaining an impression of customer beliefs, motivations and perceptions
c. Not representative of the market
d. All of the above

Answer 5

d. All of the above

Question 6

Test market refers to:

a. A type of market testing associated with introducing a new product into a selected market in a controlled manner
b. A pseudo sales technique
c. A controlled sales event
d. A method used to test concepts during the concept evaluation stage

Answer 6

a. A type of market testing associated with introducing a new product into a selected market in a controlled manner

Question 7

The goal of confirmatory market research is

a. Confirmation
b. Voice of customer data
c. Discovery
d. Exploration

Answer 7

a. Confirmation

Question 8

On the average, successful NPD efforts:

a. Do more market research, do it better, and do it earlier
b. Conduct excellent VOC sessions
c. Are from companies that are focused on a “first to market” stratgey
d. Do more secondary market research and do it better

Answer 8

a. Do more market research, do it better, and do it earlier

Question 9

Tips for a successful focus group include:

a. Have a clear objective of what you want to accomplish
b. Make sure you understand how the information is to be used
c. Always conduct several focus groups, not just one
d. All of the above

Answer 9

d. All of the above

Question 10

Methods of market testing include:

a. Pseudo sales
b. Controlled sales
c. Simulated sales
d. All of the above

Answer 10

d. All of the above

Question 11

Research done by you or for you versus research done by someone else for their purpose is the distinction between:

a. Primary vs. secondary
b. Qualitative vs. quantitative
c. Exploratory vs. confirmatory
d. All of the above

Answer 11

a. Primary vs. secondary

Question 12

Which of the following questions are answered through product use testing?

a. Whether or not the product works
b. Whether the product solves whatever problems led to development of the product in the first place
c. Whether the product solves all the problems of the customer
d. All of the above

Answer 12

d. All of the above

Question 13

Divergent thinking is:

a. Often used to move from a larger number of ideas to a smaller number of ideas
b. Performed in the concept evaluation stage
c. A bottom-up technique for discovering connections between pieces of data
d. Performed early in the idea generation stage

Answer 13

d. Performed early in the idea generation stage

Question 14

A distinction between primary research and secondary research is that:

a. Primary research is always conducted with a small number of respondents
b. Primary research is quick and relatively inexpensive
c. Primary research is more difficult and relatively expensive
d. Primary research is always statistically rigorous and the results can be projected to a larger population

Answer 14

c. Primary research is more difficult and relatively expensive

Question 15

Large sample market research studies are excellent in determining:

a. Unit volume needed at launch
b. Potential customer types
c. Understanding of customer’s beliefs, motivations and options
d. Selection of options and features

Answer 15

d. Selection of options and features

Question 16

The most difficult part of market research is:

a. Analyzing the data
b. Finding the right customers to interview
c. Defining the problem
d. The cost

Answer 16

c. Defining the problem

Question 17

Secondary market research is:

a. Often part of customer visits
b. Generally less expensive than primary research
c. Often used as part of the concept evaluation
d. All of the above

Answer 17

b. Generally less expensive than primary research

Question 18

The type of research that identifies issues that can be measured in later research is:

a. Causative
b. Exploratory
c. Quantitative
d. Confirmative

Answer 18

b. Exploratory

Question 19

The Delphi process is:

a. A technique that funnels a large number of ideas into a small number or a single idea
b. A technique that uses iterative rounds of consensus development with a panel of experts to arrive at a forecast of the most probable outcome for the future
c. A process in which memebers of a group first write out their ideas individually and then participate in a group discussion about each one.
d. A bottom-up technique for discovering connections between pieces of data

Answer 19

b. A technique that uses iterative rounds of consensus development with a panel of experts to arrive at a forecast of the most probable outcome for the future

Question 20

Two major causes of new product failure are:

a. Too long to market and failure to identify customer needs
b. Lack of understanding of the customer’s needs and poor marketing execution
c. Poor market research and skipping stages
d. Poor market research and lack of project planning

Answer 20

b. Lack of understanding of the customer’s needs and poor marketing execution

Question 21

McQuarie’s market research rule is:

a. Secondary market research first, primary market research second
b. Market research is everything in NPD
c. Use market research to confirm sr. management decisions
d. Primary market research 1st, secondary market research 2nd

Answer 21

a. Secondary market research first, primary market research second

Question 22

Customer visits in NPD are:

a. An opportunity to guage the potential market size for a proposed new product
b. A method to improve the customer relations in order to sell a product later
c. A very specific event where the customer and the developer interact
d. An opportunity to visit a customer to get new product ideas and make a sale

Answer 22

c. A very specific event where the customer and the developer interact

Question 23

Practival rules of using market research include:

a. Review your market research results with the past experience of your market
b. Use as a springbaord to other and newer ideas
c. Use the data, but do not put it on a pedestal
d. All of the above

Answer 23

d. All of the above

Question 24

Which of the following would not be an appropriate method for formally measuring customer satisfaction?

a, Exit surveys

b. Telephone surveys
c. Customer visits
d. Mystery shopping

Answer 24

c. Customer visits

Question 25

NIH, a common issue found in many organizations stands for:

a. National Institute of Health
b. No Innovations Here
c. Not Invented Here
d. New Idea Hunting

Answer 25

c. Not Invented Here

Question 26

A major weakness in using focus groups to select new product options is:

a. Cost
b. Time required
c. Small, non-random sample
d. Flexibility in the ability to ask questions

Answer 26

c. Small, non-random sample

Question 27

Customer visits, focus groups, Voice of the Customer, and the Nominal Group Process are examples of:

a. Causative research
b. Qualitative research
c. Quantitative research
d. Confirmatory research

Answer 27

b. Qualitative research

Question 28

Qualitative market research usually:

a. Is associated with Voice of the Customer research
b. Has results which can be projected to the general population
c. Is conducted using a samll number of participants
d. Has data values in numeric form

Answer 28

c. Is conducted using a samll number of participants

Question 29

Non-interactive customer visist include:

a. Antropological studies
b. Contextual inquiry
c. Ethnographic studies
d. All of the above

Answer 29

d. All of the above

Question 30

A product use testing technique that provides a crucial “first look” at product design to see if it performs according to its specifications is:

a. Alpha test
b. Simulated market test
c. Beta test
d. Home use test

Answer 30

a. Alpha test

Question 31

It is appropriate to use market research in which part(s) of the NPD process?

a. Project selection
b. Product development
c. Commercialization
d. All of the above

Answer 31

d. All of the above

Question 32

When conducting a customer visit, which of the following would NOT be a best practice?

a. Including a salesperson in your visit team
b. Having a planned list of questions
c. Listening to the customer
d. All of the above

Answer 32

a. Including a salesperson in your visit team

Question 33

Affinity charting is:

a. A bottom-up technique for discovering connections between pieces of data
b. A technique for interpreting market research data
c. A problem-based technique used to develop ideas to solve consumer problems
d. A technique used to funnel a high volume of ideas into a small group or single idea

Answer 33

a. A bottom-up technique for discovering connections between pieces of data

Question 34

Limitations of surveys include:

a. Lack of statistical tools for ananlysis
b. Not objective
c. Not a good discovery tool
d. Lack of percision

Answer 34

c. Not a good discovery tool

Question 35

Customers may be segmented by:

a. Age and sex
b. Ethnicity and income
c. Marital status and place of residence
d. All of the above

Answer 35

d. All of the above

Question 36

Types of surveys can include:

a. Anthropological and ethnographic
b. Primary and secondary
c. Formal and informal
d. Concurrent and sequential

Answer 36

c. Formal and informal

Question 37

A research effort that assists in determining if potential customers really need the product proposed:

a. Market testing
b. Test marketing
c. Concept testing
d. Product use testing

Answer 37

c. Concept testing

Question 38

When scheduling customer visits you shoud:

a. Have a plan, a list of questions and follow-up questions
b. Know roles of visitors-moderator, questioner, observer, recorder and listener
c. Avoid any type of sales pitch
d. All of the above

Answer 38

d. All of the above

Question 39

A primary distinction between Alpha testing and Beta testing is:

a. Alpha testing is conducted internally in a lab environment while Beta testing is conducted in an actual customer use environment
b. Alpha testing is conducted during the concept generation stage while Beta testing is conducted during the launch stage
c. Alpha testing is useful for determining customer value while Beta testing is useful for determining whether a product performs as specified
d. Alpha testing uses a fully developed ready for launch product while Beta testing is conducted on an early development prototype

Answer 39

a. Alpha testing is conducted internally in a lab environment while Beta testing is conducted in an actual customer use environment

Question 40

Primary market research involves:

a. Collecting data from various sources such as the internet, tradeshows, and publications
b. Collecting data for use in determining which markets should be trageted
c. Information that will tell you how much customers spend in specified broad categories
d. Information collection techniques such as questionnaires, interviews, and focus groups

Answer 40

d. Information collection techniques such as questionnaires, interviews, and focus groups

Question 41

Concept testing should be accomplished on a new concept primarily for which of the following reasons?

a. To screen and eliminate poor concepts and help develop the good concepts
b. To determine whether the new product meets that customer needs and whether the new product is cost effective for them
c. To determine whether the product works as expected
d. To test the combined package of product and its marketing plan to determine the level of success

Answer 41

a. To screen and eliminate poor concepts and help develop the good concepts

Question 42

Which of the following statements is NOT true about information gathered from secondary sources?

a. Newer information is always better than older information
b. The information may be of unknown quality
c. You may not know how the information was gathered
d. All of the above

Answer 42

a. Newer information is always better than older information

Question 43

Types of market research typically conducted during the Concept Generation stage includes:

a. Internal sources and concept testing
b. Social media and focus groups
c. Focus groups and concept testing
d. Customer visits and Voice of Customer

Answer 43

d. Customer visits and Voice of Customer

Question 44

Nominal group process is:

a. A process in which memebers of a group first write their ideas out individually and then participate in group discussion about each idea
b. A problem-based technique used to develop ideas solve customer problems
c. A bottom-up-technique for discovering connections between pieces of data
d. A technique that uses iterative rounds of consensus development among a group of experts to arrive at a forecast of some future state

Answer 44

a. A process in which memebers of a group first write their ideas out individually and then participate in group discussion about each idea

Question 45

Problems with customer visits can include:

a. Customer unable to express their problems
b. Being too flexible with questions
c. Interviewer bias
d. All of the above

Answer 45

d. All of the above

Question 46

Voice of Customer (VOC) is:

a. A technique for elciting needs from customers using structured in-depth interviews
b. A document used by engineers to develop new product specifications
c. A potential customer’s opinion of a new product concept
d. A technique used to test if a product meets the customer needs during development

Answer 46

a. A technique for elciting needs from customers using structured in-depth interviews

Question 47

Types of market research typcially conducted during the Concept Evaluation stage includes:

a. Customer visits and product use testing
b. Customer visits and surveys
c. Market opportunity analysis (MOA) and focus groups
d. Surveys and concept testing

Answer 47

d. Surveys and concept testing

Question 48

A quantitative market research tool used to understand what customers think about current or future products in relation to other products is:

a. Perceptual mapping
b. Voice of Customer
c. Market testing
d. Focus group

Answer 48

a. Perceptual mapping

Question 49

Pseudo sales methods include:

a. Test markets
b. Controlled sale and full salet echniques
c. Speculative sales and simulated test markets
d. All of the above

Answer 49

c. Speculative sales and simulated test markets

Question 50

The type of market research research conducted to measure customer perception of a product and its ability to perform as promised is:

a. Concept testing
b. Market tests
c. Product use testing
d. Market opportunity analysis

Answer 50

c. Product use testing

Question 51

Market testing can be used to:

a. Minimize the risk of product failure
b. Determine which market to play in
c. Test the product’s marketing plan
d. Evaluate a product concept

Answer 51

c. Test the product’s marketing plan

Question 52

Test market refers to a type of:

a. Market segmentation
b. Speculative sale
c. Market testing
d. Pseudo sale testing

Answer 52

c. Market testing

Question 53

Overall size of market, segment growth rates, market profitability, and threats of change are examples of things one might examine when doing a:

a. Focus group
b. PIC
c. Market Opportunity Analysis (MOA)
d. Ethnographic study

Answer 53

c. Market Opportunity Analysis (MOA)

Question 54

Sampling refers to:

a. A focus group with 6-10 participants
b. A technique that uses a small number of participants to represent a larger population
c. Product use testing techniques
d. Estimates based on behavioral observations

Answer 54

b. A technique that uses a small number of participants to represent a larger population

Question 55

Convergent thinking is:

a. A technique used to generate a large number of ideas from a single problem or idea
b. A technique used to funnel a high volume of ideas into a single or small group ideas
c. A bottom-up technique for discovering connections between pieces of data
d. A technique for interpreting market research datat

Answer 55

b. A technique used to funnel a high volume of ideas into a single or small group ideas

Question 56

Type of market research typically conducted during the Launch stage includes:

a. Customer satisfaction and field tests
b. Market testing and concept testing
c. Product use testing and surveys
d. Market testing and test markets

Answer 56

d. Market testing and test markets

Question 57

Quantitative market research is characterized by:

a. Being useful for exploring new ideas and customer needs
b. Having large, non-random samples or participants
c. Having statistically valid and reliable results which can be used to project to the larger population
d. Being a part of secondary market research efforts

Answer 57

c. Having statistically valid and reliable results which can be used to project to the larger population

Question 58

Customer visits are excellent for generating:

a. Population information
b. Ideas and sales
c. Options and ideas
d. Sales and options

Answer 58

c. Options and ideas

Question 59

Methods of market testing include:

a. Pseudo sales
b. Simulated test markets
c. Speculative sales
d. All of the above

Answer 59

d. All of the above

Question 60

Confirmatory market research should be used to :

a. Explore customer wants and needs
b. Identify which customers to visit
c. Support the decision-making process
d. Get ideas for new product concepts

Answer 60

c. Support the decision-making process

Question 61

Types of research typically conducted during the Opportunity Identification stage:

a. Secondary research research and customer visits
b. Focus groups and concept testing
c. Customer visits and surveys
d. Ideation and Focus groups

Answer 61

a. Secondary research research and customer visits

Question 62

The goal of exploratory market research is:

a. Discovery
b. Controlled
c. Projection to the total population
d. Confirmatory

Answer 62

a. Discovery

Question 63

Disadvantages of focus groups include:

a. Can get direct feedback from customers
b. Power of a group to provide fresh insights
c. Group dynamics can supress participation
d. Behavior of participants can be observed

Answer 63

c. Group dynamics can supress participation

Question 64

New product features describe:

a. Specifications
b. A product’s attributes
c. What a customer wants in a new product
d. A product’s value proposition

Answer 64

b. A product’s attributes

Question 65

Which of the following statements is the best regarding the use of market testing during new product launch?

a. Market testing is not necessary when product use testing was successful, capital investment is low, and the organization understands the business
b. Pseudo sale market testing is a valuable toll becasue it provides complete and very accurate information on whether a customer will purchase a new product
c. Test marketing the product is the most powerful and successful approach to market testing
d. Market testing must always be used to test the combined package of the product and the marketing plan to determine the level of success

Answer 65

a. Market testing is not necessary when product use testing was successful, capital investment is low, and the organization understands the business