Principles of Marketing 9th Canadian Edition By Kotler – Test Bank

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Chapter 05: Managing Marketing Information to Gain Customer Insights

 

 

        1.0 – Part I True/False Questions

 

  1.0.1. Although customer and market insights are important for building customer value and relationships, these insights can be very difficult to obtain.
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-01
  Page-Reference:  144
  Skill:  Recall

 

  Answer: b. False

 

  1.0.2. Most marketers today believe they still lack a sufficient quantity of research data to make high-quality decisions.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-02
  Page-Reference:  145
  Skill:  Recall

 

  Answer: b. False

 

  1.0.3. The real value of marketing research and information lies not in quantity but in the customer insights provided.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-03
  Page-Reference:  145
  Skill:  Recall

 

  Answer: a. True

 

  1.0.4. An effective MIS assesses information needs, develops needed information, and helps decision makers use the information to generate and validate actionable customer and market insights.
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-04
  Page-Reference:  145
  Skill:  Recall

 

  Answer: a. True

 

  1.0.5. Today, marketing managers view marketing information not only as an input for making internal decisions but also as an input for external partners.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-05
  Page-Reference:  145
  Skill:  Recall

 

  Answer: a. True

 

  1.0.6. Too much marketing information can be as harmful as too little.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-06
  Page-Reference:  146
  Skill:  Recall

 

  Answer: a. True

 

  1.0.7. The company must decide whether the value of market insights gained from additional information is worth the costs of providing it.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-07
  Page-Reference:  146
  Skill:  Recall

 

  Answer: a. True

 

  1.0.8. Internal databases usually can be accessed more quickly and cheaply than other information sources.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-08
  Page-Reference:  147
  Skill:  Recall

 

  Answer: a. True

 

  1.0.9. When you glean information from your company’s accounting and sales records, stored in the company’s computer system, you are developing an internal database.
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-09
  Page-Reference:  147
  Skill:  Applied

 

  Answer: a. True

 

  1.0.10. You have just extracted sales and cost data used by the accounting department for preparing financial statements. Most likely, this information is complete and in usable form to build an internal marketing database.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-10
  Page-Reference:  148
  Skill:  Applied

 

  Answer: b. False

 

  1.0.11. It is important to note that data becomes outdated quickly so keeping the database current requires a major effort.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-11
  Page-Reference:  148
  Skill:  Recall

 

  Answer: a. True

 

  1.0.12. Companies do not need to actively monitor competitors’ activities.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-12
  Page-Reference:  149
  Skill:  Recall

 

  Answer: b. False

 

  1.0.13. Good sources of marketing intelligence information include competitors’ annual reports, business publications, trade show exhibits, press releases, advertisements, and webpages.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-13
  Page-Reference:  149
  Skill:  Recall

 

  Answer: a. True

 

  1.0.14. With all of the legitimate intelligence sources now available, a company does not need to break the law or accepted codes of ethics to get good intelligence.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-14
  Page-Reference:  149
  Skill:  Recall

 

  Answer: a. True

 

  1.0.15. Your manager asked you to go through three of your competitors’ garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-15
  Page-Reference:  149
  Skill:  Applied

 

  Answer: b. False

 

  1.0.16. Once the problems and research objectives have been defined, researchers must determine the exact information needed and present it to management.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-16
  Page-Reference:  150
  Skill:  Recall

 

  Answer: b. False

 

  1.0.17. The exploratory research is to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-17
  Page-Reference:  150
  Skill:  Recall

 

  Answer: b. False

 

  1.0.18. The descriptive research is to gather preliminary information that will help divine problems and suggest hypotheses.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-18
  Page-Reference:  150
  Skill:  Recall

 

  Answer: b. False

 

  1.0.19. The causal research is to test hypotheses about cause-and-effect relationships.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-19
  Page-Reference:  151
  Skill:  Recall

 

  Answer: a. True

 

  1.0.20. Primary data consist of information that already exists somewhere, having been collected for another purpose.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-20
  Page-Reference:  152
  Skill:  Conceptual

 

  Answer: b. False

 

  1.0.21. SEDAR, an external information source, provides detailed analysis of consumer patterns in 400 product categories in selected markets.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-21
  Page-Reference:  153
  Skill:  Recall

 

  Answer: b. False

 

  1.0.22. Marketing researchers can conduct their own searches of secondary data sources today by using commercial online databases.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-22
  Page-Reference:  152
  Skill:  Recall

 

  Answer: a. True

 

  1.0.23. Because secondary data provide good starting points and often help to define problems and research objectives, most companies do not also need to collect primary data.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-23
  Page-Reference:  152
  Skill:  Recall

 

  Answer: b. False

 

  1.0.24. Secondary data provide a good starting point for research and often help to define research problems and objectives.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-24
  Page-Reference:  152
  Skill:  Recall

 

  Answer: a. True

 

  1.0.25. Just about anything can be observed, especially feelings, attitudes and motives, or private behaviour.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-25
  Page-Reference:  154
  Skill:  Recall

 

  Answer: b. False

 

  1.0.26. Ethnographic research is a form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.”  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-26
  Page-Reference:  156
  Skill:  Conceptual

 

  Answer: a. True

 

  1.0.27. In group interviewing, participants normally are paid a small sum for attending.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-27
  Page-Reference:  158
  Skill:  Recall

 

  Answer: a. True

 

  1.0.28. Online marketing research is collecting secondary data online through Internet surveys, online focus group, and so on.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-28
  Page-Reference:  159
  Skill:  Conceptual

 

  Answer: b. False

 

  1.0.29. As response rates for traditional survey approaches decline and costs increase, the Web is quickly replacing mail and the telephone as the dominant data collection methodology.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-29
  Page-Reference:  160
  Skill:  Recall

 

  Answer: a. True

 

  1.0.30. According to the text, online research now accounts for about 50 percent of all survey research done in the United States.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-30
  Page-Reference:  160
  Skill:  Recall

 

  Answer: a. True

 

  1.0.31. The most important issue facing online researchers is the lack of a broad cross section of consumers who have access to the Internet.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-31
  Page-Reference:  161
  Skill:  Recall

 

  Answer: b. False

 

  1.0.32. Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviours of the larger population.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-32
  Page-Reference:  162
  Skill:  Recall

 

  Answer: a. True

 

  1.0.33. A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples.  
   
a True
b False

 

  Difficulty:  3
  QuestionID:  05-1-33
  Page-Reference:  162-163
  Skill:  Recall

 

  Answer: b. False

 

  1.0.34. The questionnaire is by far the most common research instrument.  
   
a True
b False

 

  QuestionID:  05-1-34
  Page-Reference:  165
  Skill:  Recall

 

  Answer: a. True

 

  1.0.35. Open-ended survey questions are particularly useful in exploratory research.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-35
  Page-Reference:  165
  Skill:  Recall

 

  Answer: a. True

 

  1.0.36. Interpretation of market research data should be the responsibility of the researchers, not the marketing managers.  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-36
  Page-Reference:  167
  Skill:  Recall

 

  Answer: b. False

 

  1.0.37. You have just identified the “touch points” of the 400 best customers in your database. At this point, you want to manage detailed information about each of them to maximize customer loyalty. You should use customer relationship management (CRM).  
   
a True
b False

 

  Difficulty:  2
  QuestionID:  05-1-37
  Page-Reference:  169
  Skill:  Applied

 

  Answer: a. True

 

  1.0.38. International research has different steps than domestic research.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-38
  Page-Reference:  171
  Skill:  Recall

 

  Answer: b. False

 

  1.0.39. Cultural differences from country to country cause additional problems for international researchers.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-39
  Page-Reference:  172
  Skill:  Recall

 

  Answer: a. True

 

  1.0.40. Big companies have now appointed chief privacy officers (CPOs) whose jobs are to safeguard the privacy of the companies.  
   
a True
b False

 

  Difficulty:  1
  QuestionID:  05-1-40
  Page-Reference:  174
  Skill:  Recall

 

  Answer: b. False

 

 

        2.0 – Part II Multiple Choice Questions

 

  2.0.1. Despite the data glut that marketing managers receive, they frequently complain that they lack ________.
   
  enough information of the right kind
  timely information
  accurate information
  reliable information
  valid information

 

  Difficulty:  2
  QuestionID:  05-2-01
  Page-Reference:  145
  Skill:  Recall

 

  Answer:  enough information of the right kind

 

  2.0.2. Fresh understandings of customers and the marketplace are derived from that become(s) the basis for creating customer value and relationships.
   
  business decisions
  marketing strategies
  marketing information
  government policies
  market demand

 

  Difficulty:  3
  QuestionID:  05-2-02
  Page-Reference:  145
  Skill:  Conceptual

 

  Answer:  marketing information

 

  2.0.3. A marketing information system (MIS) consists of people and procedures to assess information needs, develop the needed information, and_______________________.
   
  experiment to develop information
  test-market the information
  help decision makers analyze and use the information
  critique the needed information
  question the needed information

 

  Difficulty:  1
  QuestionID:  05-2-03
  Page-Reference:  145
  Skill:  Conceptual

 

  Answer:  help decision makers analyze and use the information

 

  2.0.4. A good MIS balances the information users’ ______ against ______ and finally what is ______.
   
  needs; their likes; feasible
  likes; what they can afford; needed
  needs; what they can afford; useful
  desire; their actual needs; feasible to offer
  use; what they have to use; available

 

  Difficulty:  3
  QuestionID:  05-2-04
  Page-Reference:  146
  Skill:  Recall

 

  Answer:  desire; their actual needs; feasible to offer

 

  2.0.5. Marketers must weigh carefully the _____ of additional information against the benefits resulting from it.
   
  organization
  ethical issues
  creativity
  costs
  validity

 

  Difficulty:  1
  QuestionID:  05-2-05
  Page-Reference:  146
  Skill:  Recall

 

  Answer:  costs

 

  2.0.6. Four common sources of internal data include the __________, operations, the sales force, and the marketing department.
   
  owners
  stockholders
  accounting department
  competition
  Web

 

  Difficulty:  2
  QuestionID:  05-2-06
  Page-Reference:  147
  Skill:  Recall

 

  Answer:  accounting department

 

  2.0.7. A(n) ________database can usually provide marketing information more quickly and cheaply than other information sources.
   
  external
  LexisNexis
  intermediate
  internal
  Hoover’s

 

  Difficulty:  1
  QuestionID:  05-2-07
  Page-Reference:  147
  Skill:  Recall

 

  Answer:  internal

 

  2.0.8. Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases.
   
  online
  internal
  external
  public
  search service

 

  Difficulty:  1
  QuestionID:  05-2-08
  Page-Reference:  147
  Skill:  Applied

 

  Answer:  internal

 

  2.0.9. Your marketing department is attempting to improve strategic decision making, track competitors’ actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use?
   
  Internal databases
  External databases only
  Company reports only
  Marketing intelligence
  The Internet

 

  Difficulty:  2
  QuestionID:  05-2-09
  Page-Reference:  148
  Skill:  Applied

 

  Answer:  Marketing intelligence

 

  2.0.10. The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment is known as _______________.  
   
  marketing data
  competitive intelligence
  sales management
  customer intelligence
  competitive marketing intelligence

 

  Difficulty:  1
  QuestionID:  05-2-10
  Page-Reference:  148
  Skill:  Conceptual

 

  Answer:  competitive marketing intelligence

 

  2.0.11. Which of the following statements regarding marketing intelligence is true?  
   
  The advantage of using competitive intelligence is negligible.
  All marketing intelligence is available for free.
  Marketing intelligence relies upon privately held information.
  Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors’ activities.
  Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands.

 

  Difficulty:  3
  QuestionID:  05-2-11
  Page-Reference:  148
  Skill:  Recall

 

  Answer:  Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands.

 

  2.0.12. Through which of these sources of information is a competitor most likely to reveal intelligence information?  
   
  Annual reports
  Ad hoc exhibits
  URLs
  Product releases
  Internal marketing conferences

 

  Difficulty:  1
  QuestionID:  05-2-12
  Page-Reference:  149
  Skill:  Recall

 

  Answer:  Annual reports

 

  2.0.13. Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?  
   
  LexisNexis
  ProQuest
  Dialog
  System for Electronic Document Analysis and Retrieval (SEDAR)
  Hoover’s

 

  Difficulty:  2
  QuestionID:  05-2-13
  Page-Reference:  149
  Skill:  Recall

 

  Answer:  System for Electronic Document Analysis and Retrieval (SEDAR)

 

  2.0.14. Marketing research is the systematic design, collection, analysis, and reporting of ______________ relevant to a specific marketing situation facing an organization.  
   
  marketing information systems
  intelligence
  data
  competitive intelligence
  causality research

 

  Difficulty:  1
  QuestionID:  05-2-14
  Page-Reference:  150
  Skill:  Conceptual

 

  Answer:  data

 

  2.0.15. Defining the problem and research objectives is the _______ step in the marketing research process.  
   
  third
  first
  second
  fourth
  last

 

  Difficulty:  2
  QuestionID:  05-2-15
  Page-Reference:  150-151
  Skill:  Recall

 

  Answer:  first

 

  2.0.16. The four-step marketing research process includes defining the problems and research objectives; ________________; implementing the research plan; and interpreting and reporting the findings.  
   
  developing the research budget
  choosing the research agency
  choosing the research method
  developing the research plan
  comparing and contrasting primary and secondary data

 

  Difficulty:  2
  QuestionID:  05-2-16
  Page-Reference:  150-151
  Skill:  Recall

 

  Answer:  developing the research plan

 

  2.0.17. Causal research is used by many companies to better understand customers by __________.  
   
  describing marketing problems or situations
  gathering preliminary information that will help define problems
  uncovering information at the outset in an unstructured way
  testing hypotheses about cause-and-effect relationships
  quantifying observations that produce insights unobtainable through other forms of research

 

  Difficulty:  1
  QuestionID:  05-2-17
  Page-Reference:  151
  Skill:  Conceptual

 

  Answer:  testing hypotheses about cause-and-effect relationships

 

  2.0.18. Companies will often ask their managers to start with ________ research.  
   
  exploratory
  descriptive
  cursory
  precursory
  causal

 

  Difficulty:  3
  QuestionID:  05-2-18
  Page-Reference:  151
  Skill:  Recall

 

  Answer:  exploratory

 

  2.0.19. Often, the hardest step to take when using the marketing research process is _________________.  
   
  developing the research plan
  determining a research approach
  selecting a research agency
  defining the problem and research objectives
  obtaining marketing intelligence

 

  Difficulty:  2
  QuestionID:  05-2-19
  Page-Reference:  150
  Skill:  Applied

 

  Answer:  defining the problem and research objectives

 

  2.0.20. To help define the problem and suggest hypotheses, researchers will often use ________ research to gather preliminary information.  
   
  secondary
  descriptive
  causal
  primary
  exploratory

 

  Difficulty:  1
  QuestionID:  05-2-20
  Page-Reference:  150
  Skill:  Recall

 

  Answer:  exploratory

 

  2.0.21. Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference?  
   
  Exploratory
  Descriptive
  Causal
  Experimental
  Secondary

 

  Difficulty:  2
  QuestionID:  05-2-21
  Page-Reference:  150
  Skill:  Applied

 

  Answer:  Descriptive

 

  2.0.22. You are about to test hypotheses about decreasing sales in certain markets and their causes. You are involved in what type of research?  
   
  Exploratory
  Descriptive
  Causal
  Focus group
  Ethnographic

 

  Difficulty:  1
  QuestionID:  05-2-22
  Page-Reference:  151
  Skill:  Applied

 

  Answer:  Causal

 

  2.0.23. You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research.  
   
  causal
  experimental
  secondary
  survey
  exploratory

 

  Difficulty:  1
  QuestionID:  05-2-23
  Page-Reference:  150
  Skill:  Applied

 

  Answer:  exploratory

 

  2.0.24. Information that already exists but was collected for a different purpose is called ________.  
   
  primary
  tertiary
  secondary
  redundant
  old

 

  Difficulty:  1
  QuestionID:  05-2-24
  Page-Reference:  152
  Skill:  Conceptual

 

  Answer:  secondary

 

  2.0.25. In the second step of the marketing research process, research objectives should be translated into specific ________.  
   
  marketing goals
  information needs
  dollar amounts
  research methods
  information sources

 

  Difficulty:  1
  QuestionID:  05-2-25
  Page-Reference:  151
  Skill:  Recall

 

  Answer:  information needs

 

  2.0.26. For secondary data to be useful to marketers, it must be relevant, current, impartial, and ________.  
   
  complete
  accurate
  inexpensive
  collected before secondary data
  experimental

 

  Difficulty:  2
  QuestionID:  05-2-26
  Page-Reference:  152
  Skill:  Recall

 

  Answer:  accurate

 

  2.0.27. Information collected from online databases is an example of ________ data.  
   
  primary
  secondary
  observational
  experimental
  ethnographic

 

  Difficulty:  2
  QuestionID:  05-2-27
  Page-Reference:  152
  Skill:  Recall

 

  Answer:  secondary

 

  2.0.28. Which form of data below can usually be obtained more quickly and at a lower cost than the others?  
   
  Primary
  Survey research
  Experimental research
  Secondary
  Observational research

 

  Difficulty:  2
  QuestionID:  05-2-28
  Page-Reference:  152
  Skill:  Recall

 

  Answer:  Secondary

 

  2.0.29. Secondary data are ________.  
   
  collected mostly via surveys
  expensive to obtain
  never purchased from outside suppliers
  always necessary to support primary data
  not always very usable

 

  Difficulty:  2
  QuestionID:  05-2-29
  Page-Reference:  152
  Skill:  Recall

 

  Answer:  not always very usable

 

  2.0.30. Ethnographic research can be very helpful because it _____________________.  
   
  is conducted within traditional focus groups.
  is a research option when observation is not possible.
  provides researchers with secondary data.
  is most popular in the service sector.
  provides greater insight into customer behaviour than interviews do.

 

  Difficulty:  3
  QuestionID:  05-2-30
  Page-Reference:  156
  Skill:  Recall

 

  Answer:  is a research option when observation is not possible.

 

  2.0.31. Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide?  
   
  Observational
  Survey
  Questionnaire
  Focus groups
  Personal interviews

 

  Difficulty:  2
  QuestionID:  05-2-31
  Page-Reference:  154
  Skill:  Recall

 

  Answer:  Observational

 

  2.0.32. Ethnographic research ________.  
   
  comes from traditional focus groups
  is gathered where people live and work
  provides secondary data
  is most popular in the service sector
  provides data to marketers when observation is impossible

 

  Difficulty:  2
  QuestionID:  05-2-32
  Page-Reference:  156
  Skill:  Recall

 

  Answer:  is gathered where people live and work

 

  2.0.33. Walmart sends a trained observer to watch and interact with customers as they shop in a Walmart store. This is an example of ________.  
   
  secondary research
  survey research
  ethnographic research
  experimental research
  descriptive research

 

  Difficulty:  2
  QuestionID:  05-2-33
  Page-Reference:  156
  Skill:  Applied

 

  Answer:  ethnographic research

 

  2.0.34. When ZIBA designers, looking for ideas on how to craft a shower-cleaning tool, spent 10 days in people’s homes, watching consumers wash shower stalls, they were conducting ________ research.  
   
  survey
  experimental
  secondary
  ethnographic
  personal

 

  Difficulty:  2
  QuestionID:  05-2-34
  Page-Reference:  156
  Skill:  Applied

 

  Answer:  ethnographic

 

  2.0.35. Maryann Rose is conducting research to determine consumers’ personal grooming habits. Because of the personal nature of the survey questions about this topic, Maryann wants to select the contact method that is most likely to encourage respondents to answer honestly. Which contact method should Maryann select?  
   
  Mail questionnaires
  Telephone interviews
  Individual interviews
  Focus group interviews
  Online panels

 

  Difficulty:  3
  QuestionID:  05-2-35
  Page-Reference:  158
  Skill:  Applied

 

  Answer:  Mail questionnaires

 

  2.0.36. Harvey’s came out with a new hamburger and released it in two different cities with two different price points. Marketers at Harvey’s then analyzed the sales results at the two different price points. This information was used to help them set a nationwide price for the new offering. This is an example of ________.  
   
  observational research
  behavioural research
  qualitative research
  experimental research
  survey research

 

  Difficulty:  2
  QuestionID:  05-2-36
  Page-Reference:  157
  Skill:  Applied

 

  Answer:  experimental research

 

  2.0.37. Survey research, though used to obtain many kinds of information in a variety of situations, is best suited for gathering ________ information.  
   
  interpersonal
  causal
  exploratory
  descriptive
  creative

 

  Difficulty:  2
  QuestionID:  05-2-37
  Page-Reference:  157
  Skill:  Recall

 

  Answer:  descriptive

 

  2.0.38. According to the textbook, the major advantage of survey research is its ________.  
   
  flexibility
  interactive design
  ease and speed to complete
  duplicability
  simplicity

 

  Difficulty:  2
  QuestionID:  05-2-38
  Page-Reference:  157
  Skill:  Recall

 

  Answer:  flexibility

 

  2.0.39. Experimental research is best suited for gathering ________ information.  
   
  exploratory
  causal
  interactive
  preferential
  descriptive

 

  Difficulty:  2
  QuestionID:  05-2-39
  Page-Reference:  157
  Skill:  Recall

 

  Answer:  causal

 

  2.0.40. ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has a disadvantage of .  
   
  low cost per respondent.
  encouraging more honest answers.
  having an average response rate
  no interviewer to bias respondents’ answers
  collecting large amounts of information

 

  Difficulty:  3
  QuestionID:  05-2-40
  Page-Reference:  158
  Skill:  Recall

 

  Answer:  having an average response rate

 

  2.0.41. Which of the following contact methods has the poorest response rate?  
   
  Mail
  Telephone
  Personal
  Online
  Individual

 

  Difficulty:  2
  QuestionID:  05-2-41
  Page-Reference:  158
  Skill:  Recall

 

  Answer:  Mail

 

  2.0.42. Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she utilizes low-cost or no-cost methods to gather research data. One method that works very well for her is to change the themes in her local newspaper and radio advertising and watch the result. Juanita is using ________ to gather data for marketing decisions.  
   
  informal surveys
  experiments
  guess work
  logic-directed research
  secondary sources

 

  Difficulty:  2
  QuestionID:  05-2-42
  Page-Reference:  157
  Skill:  Applied

 

  Answer:  experiments

 

  2.0.43. Which of the following has the highest rating for speed of data collection and compilation?  
   
  Open-ended questionnaires
  Personal interviews
  Mail surveys
  Internet surveys
  Ethnographic research

 

  Difficulty:  3
  QuestionID:  05-2-43
  Page-Reference:  158
  Skill:  Recall

 

  Answer:  Internet surveys

 

  2.0.44. Which of the following is an advantage of telephone interviews?  
   
  They are more expensive to conduct than mail questionnaires.
  Interviewer bias is introduced.
  Under time pressures, some interviewers might cheat.
  Interviewers can explain some questions and probe more deeply on others.
  Potential respondents may refuse to participate.

 

  Difficulty:  3
  QuestionID:  05-2-44
  Page-Reference:  160
  Skill:  Recall

 

  Answer:  Interviewers can explain some questions and probe more deeply on others.

 

  2.0.45. Which of the following contact methods is generally the most flexible?  
   
  Mail
  Telephone
  Internet surveys
  Online panels
  Personal

 

  Difficulty:  3
  QuestionID:  05-2-45
  Page-Reference:  158
  Skill:  Recall

 

  Answer:  Personal

 

  2.0.46. Which form of marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements?  
   
  Individual interviewing
  Internet surveys
  Telephone surveys
  Ethnographic research
  Observational research

 

  Difficulty:  2
  QuestionID:  05-2-46
  Page-Reference:  158
  Skill:  Recall

 

  Answer:  Individual interviewing

 

  2.0.47. Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be difficult to ________.  
   
  find enough secondary data to support the findings
  orchestrate co-operation among participants
  encourage honest responses to questions
  generalize from the results
  find a representative sample

 

  Difficulty:  2
  QuestionID:  05-2-47
  Page-Reference:  159
  Skill:  Recall

 

  Answer:  generalize from the results

 

  2.0.48. Beyond their advantage, web-based surveys also tend to be more interactive and engaging, easier to complete, and less intrusive than traditional phone or mail surveys.  
   
  speed
  cost
  speed and cost
  control over respondents
  instantaneous results

 

  Difficulty:  2
  QuestionID:  05-2-48
  Page-Reference:  160
  Skill:  Recall

 

  Answer:  speed and cost

 

  2.0.49. Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct; however, the sample size for her research is quite large. Which of the following methods of contact would provide Tasoula with the most cost-effective way to reach a large sample of potential customers?  
   
  Telephone surveys
  Personal interviews
  Internet surveys
  Mail surveys
  Focus group interviews

 

  Difficulty:  2
  QuestionID:  05-2-49
  Page-Reference:  160
  Skill:  Applied

 

  Answer:  Internet surveys

 

  2.0.50. Which of the following is a disadvantage of web-based research?  
   
  Speed
  Low costs
  Almost instantaneous results
  Control over who respondents are
  Ease of administration

 

  Difficulty:  2
  QuestionID:  05-2-50
  Page-Reference:  161
  Skill:  Recall

 

  Answer:  Control over who respondents are

 

  2.0.51. Which of the following is a disadvantage of online focus groups?  
   
  Participants must be in a central location.
  Online focus groups can lack the real-world dynamics of more personal approaches.
  Results take longer to tabulate and analyze.
  The cost of online focus groups is greater than that of most other qualitative research methods.
  The format of focus groups can be varied.

 

  Difficulty:  2
  QuestionID:  05-2-51
  Page-Reference:  161
  Skill:  Recall

 

  Answer:  Online focus groups can lack the real-world dynamics of more personal approaches.

 

  2.0.52. Del Monte has created an ________ called “I Love My Dog”; this online community allows company-selected dog enthusiasts to complete product-related polls, chat with product developers, and provide feedback about specific products.  
   
  online experiment
  online social network
  Internet survey
  immersion group
  expert panel

 

  Difficulty:  2
  QuestionID:  05-2-52
  Page-Reference:  161
  Skill:  Applied

 

  Answer:  online social network

 

  2.0.53. Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.  
   
  group
  target group
  population
  sample
  audience

 

  Difficulty:  1
  QuestionID:  05-2-53
  Page-Reference:  162
  Skill:  Recall

 

  Answer:  sample

 

  2.0.54. You generally need to ask three questions when developing a sampling plan. Which of the following questions is part of that process?  
   
  Who should be left out of the sample (sampling exclusion)?
  How should we contact the sample (sampling approach)?
  Why should respondents be selected (sampling justification)?
  How should participants be chosen (sampling procedure)?
  How much should we pay the participants (sampling costing)?

 

  Difficulty:  3
  QuestionID:  05-2-54
  Page-Reference:  162-164
  Skill:  Recall

 

  Answer:  How should participants be chosen (sampling procedure)?

 

  2.0.55. Behavioural targeting, the practice of ________, is being used by more and more companies.  
   
  tracking customers’ activities and rewarding customer loyalty
  managing customer relationships
  mining and analyzing data from data warehouses
  tracking consumers’ online movements and using this information to target ads to them
  observing and interacting with consumers in their natural environments

 

  Difficulty:  3
  QuestionID:  05-2-55
  Page-Reference:  163
  Skill:  Recall

 

  Answer:  tracking consumers’ online movements and using this information to target ads to them

 

  2.0.56. What is a major drawback of probability sampling?  
   
  It can be money and time consuming.
  The sampling error cannot be measured.
  The most difficult population from which to obtain information is chosen.
  Everyone has an equal chance of selection.
  Marketers must rely on the judgment of the researcher in respondent selection.

 

  Difficulty:  3
  QuestionID:  05-2-56
  Page-Reference:  164
  Skill:  Recall

 

  Answer:  It can be money and time consuming.

 

  2.0.57. What are the two main types of research instruments used to collect primary data?  
   
  Surveys and samples
  Questionnaires and mechanical devices
  Focus groups and online databases
  Online panels and experiments
  Personal interviews and online marketing research

 

  Difficulty:  1
  QuestionID:  05-2-57
  Page-Reference:  164-165
  Skill:  Recall

 

  Answer:  Questionnaires and mechanical devices

 

  2.0.58. The most common research instrument used is the ________.  
   
  mechanical device
  live interviewer
  questionnaire
  focus group
  people meter

 

  Difficulty:  2
  QuestionID:  05-2-58
  Page-Reference:  165
  Skill:  Recall

 

  Answer:  questionnaire

 

  2.0.59. You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data.  
   
  simple random sample
  mechanical device
  stratified random sample
  cluster sample
  convenience sample

 

  Difficulty:  3
  QuestionID:  05-2-59
  Page-Reference:  162
  Skill:  Applied

 

  Answer:  stratified random sample

 

  2.0.60. Loft Industries sells roof trusses to contractors and builders and would like to conduct research to determine how customers assess customer service. Which of the following research instruments would be best for this firm?  
   
  People meters
  Checkout scanners
  Questionnaires
  Eye cameras
  BlueEyes technology

 

  Difficulty:  2
  QuestionID:  05-2-60
  Page-Reference:  165
  Skill:  Applied

 

  Answer:  Questionnaires

 

  2.0.61. Which of the following is good advice about creating research questionnaires for Mark Hammel, research specialist at New Wave Data, to follow?  
   
  Use care in the wording and ordering of questions.
  Questions do not have to be arranged in any given order.
  Ask difficult questions in the beginning to “weed out” uninterested respondents.
  Ask personal questions in the middle of the instrument.
  Use impressive vocabulary to convey the importance of the questionnaire.

 

  Difficulty:  3
  QuestionID:  05-2-61
  Page-Reference:  165
  Skill:  Applied

 

  Answer:  Use care in the wording and ordering of questions.

 

  2.0.62. Marketing information is only valuable when it is used to ________.  
   
  simplify management’s job
  identify a target market
  please shareholders
  increase efficiencies in the supply chain
  make better marketing decisions

 

  Difficulty:  2
  QuestionID:  05-2-62
  Page-Reference:  169
  Skill:  Recall

 

  Answer:  make better marketing decisions

 

  2.0.63. Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try?  
   
  Customer satisfaction management
  More sophisticated hardware
  Customer relationship management
  Decreased marketing intelligence
  A marketing information system

 

  Difficulty:  1
  QuestionID:  05-2-63
  Page-Reference:  167
  Skill:  Recall

 

  Answer:  Customer relationship management

 

  2.0.64. Which of the following is true about customer relationship management (CRM)?  
   
  It relies on information produced through primary research.
  Its aim is to maximize profit margins.
  Its aim is to increase the efficiency of each customer touch point.
  Its aim is to maximize customer loyalty.
  Most companies who first implemented CRM have greatly benefited from the results.

 

  Difficulty:  2
  QuestionID:  05-2-64
  Page-Reference:  167
  Skill:  Recall

 

  Answer:  Its aim is to maximize customer loyalty.

 

  2.0.65. What is the purpose of a data warehouse?  
   
  To organize internal and external data by relevance
  To gather and integrate information a company already has
  To interpret data
  To analyze data
  To identify and discard outdated data

 

  Difficulty:  2
  QuestionID:  05-2-65
  Page-Reference:  167-168
  Skill:  Recall

 

  Answer:  To gather and integrate information a company already has

 

  2.0.66. In customer relationship management (CRM), findings about customers discovered through ________ techniques often lead to marketing opportunities.  
   
  data warehousing
  data mining
  customer strategy
  customer loyalty management
  value network

 

  Difficulty:  2
  QuestionID:  05-2-66
  Page-Reference:  167-168
  Skill:  Recall

 

  Answer:  data mining

 

  2.0.67. What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more?  
   
  An intranet
  An extranet
  The Internet
  Marketing research
  Marketing intelligence

 

  Difficulty:  2
  QuestionID:  05-2-67
  Page-Reference:  169
  Skill:  Recall

 

  Answer:  An intranet

 

  2.0.68. Michael Quinones is a customer service agent for a national car rental business. He has access to the company’s intranet, which provides performance reports, shared work documents, contact information, and detailed information about customers. Which of the following is this access most likely to enable Michael to do during interactions with customers?  
   
  Analyze primary data
  Use data mining techniques
  Share information with value-network partners
  Reward customer loyalty with an upgrade or discount
  Evaluate marketing intelligence

 

  Difficulty:  2
  QuestionID:  05-2-68
  Page-Reference:  169-170
  Skill:  Applied

 

  Answer:  Reward customer loyalty with an upgrade or discount

 

  2.0.69. When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using ________.  
   
  experiments
  informal surveys
  observation
  marketing intelligence
  direct marketing

 

  Difficulty:  2
  QuestionID:  05-2-69
  Page-Reference:  171
  Skill:  Applied

 

  Answer:  informal surveys

 

  2.0.70. The availability of which of the following is most problematic in international marketing research?  
   
  Primary data
  Research specialists
  Secondary data
  Intelligence limitations
  Consumers willing to answer survey questions

 

  Difficulty:  2
  QuestionID:  05-2-70
  Page-Reference:  171
  Skill:  Recall

 

  Answer:  Secondary data

 

  2.0.71. Because of the scarcity of good secondary data, international researchers often must collect their own primary data. An initial problem with this collection is developing good ________.  
   
  samples
  research firms
  customer relationships with nationals
  relations with channel members
  analytical models

 

  Difficulty:  2
  QuestionID:  05-2-71
  Page-Reference:  172
  Skill:  Recall

 

  Answer:  samples

 

  2.0.72. Most data collection in Mexico is done _______.  
   
  by telephone
  via mail
  online
  through focus groups
  door-to-door

 

  Difficulty:  2
  QuestionID:  05-2-72
  Page-Reference:  172
  Skill:  Recall

 

  Answer:  door-to-door

 

  2.0.73. Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________.  
   
  risk of error
  foreign trade
  response rate
  likelihood of using a smaller sample
  reliance on primary data

 

  Difficulty:  2
  QuestionID:  05-2-73
  Page-Reference:  172
  Skill:  Recall

 

  Answer:  risk of error

 

  2.0.74. Which of the following is most true about conducting international marketing research?  
   
  It is on the decrease due to high costs.
  Cultural differences are not great enough to skew results.
  There is a lack of qualified research personnel.
  Despite the costs of international research, the costs of not doing it are higher.
  Interpretations of quality are consistent among different countries.

 

  Difficulty:  3
  QuestionID:  05-2-74
  Page-Reference:  173
  Skill:  Recall

 

  Answer:  Despite the costs of international research, the costs of not doing it are higher.

 

  2.0.75. Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents. Which of the following should Malaya do before administering this questionnaire to a sample of the market?  
   
  Make sure that the survey includes both open-ended and closed-ended questions
  Decide whether to focus on primary or secondary data
  Determine which type of research instrument to use
  Have the questionnaire translated back into English to check for accuracy
  Determine whether to focus on descriptive or causal objectives

 

  Difficulty:  2
  QuestionID:  05-2-75
  Page-Reference:  172
  Skill:  Applied

 

  Answer:  Have the questionnaire translated back into English to check for accuracy

 

  2.0.76. Consumers are most likely to provide research information when researchers provide ________.  
   
  coupons
  value for the exchange
  prizes
  rebates
  social network membership

 

  Difficulty:  2
  QuestionID:  05-2-76
  Page-Reference:  174
  Skill:  Recall

 

  Answer:  value for the exchange

 

  2.0.77. Many major companies have created the position of ________ to address concerns about the privacy of customers.  
   
  chief customer loyalty manager
  chief behavioural analyst
  chief privacy officer
  ethics manager
  data warehouse manager

 

  Difficulty:  2
  QuestionID:  05-2-77
  Page-Reference:  174
  Skill:  Recall

 

  Answer:  chief privacy officer

 

  2.0.78. To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________.  
   
  customer relationship management guidelines
  behavioural targeting “Do Not Track” lists
  chief privacy officer job descriptions
  codes of research ethics
  bans against using “cookies”

 

  Difficulty:  2
  QuestionID:  05-2-78
  Page-Reference:  175
  Skill:  Recall

 

  Answer:  codes of research ethics

 

  2.0.79. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

In this scenario, which of the following are examples of marketing intelligence?

 
   
  Responses to the surveys Jason sent
  Competitors’ pamphlets
  Data mining
  Focus group conclusions
  Online social network comments

 

  Difficulty:  3
  QuestionID:  05-2-79
  Page-Reference:  148
  Skill:  Applied

 

  Answer:  Competitors’ pamphlets

 

  2.0.80. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

Jason wanted to better understand how his customers assess service quality. This is an example of a ________.

 
   
  marketing research problem
  research objective
  research method
  research plan
  research approach

 

  Difficulty:  2
  QuestionID:  05-2-80
  Page-Reference:  150
  Skill:  Applied

 

  Answer:  research objective

 

  2.0.81. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

In this scenario, which of the following is an example of primary data?

 
   
  The list of local corporations from the Chamber of Commerce
  Competitor information gleaned from pamphlets
  Responses to the 75 surveys
  The names of the 75 companies that received surveys
  Competitors’ websites

 

  Difficulty:  1
  QuestionID:  05-2-81
  Page-Reference:  154
  Skill:  Applied

 

  Answer:  Responses to the 75 surveys

 

  2.0.82. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

Jason may be able to learn more about why A-1 Cleaning has seen a decline in demand for office cleaning by sending trained observers to watch and interact with his potential customers in their “natural habitat.” This type of research is called ____________.

 
   
  secondary
  focus group
  ethnographic
  mechanical
  experimental

 

  Difficulty:  3
  QuestionID:  05-2-82
  Page-Reference:  156
  Skill:  Applied

 

  Answer:  ethnographic

 

  2.0.83. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

A-1 Cleaning could use the Web as a survey medium by including a questionnaire on its website and offering incentives for completing it. This is ________ research.

 
   
  online
  secondary
  ethnographic
  experimental
  observational

 

  Difficulty:  3
  QuestionID:  05-2-83
  Page-Reference:  159-160
  Skill:  Applied

 

  Answer:  online

 

  2.0.84. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

Of the 141 companies on the list, Jason chose to survey only 75 of them. Jason sent surveys to small companies and large companies. If Jason selected survey recipients randomly from the groups of small companies and large companies, he was using a ________.

 
   
  simple random sample
  judgment sample
  convenience sample
  stratified random sample
  quota sample

 

  Difficulty:  3
  QuestionID:  05-2-84
  Page-Reference:  162
  Skill:  Applied

 

  Answer:  stratified random sample

 

  2.0.85. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

Jason had to consider the many contact methods available with which to administer his survey. Which contact method would offer the best control over interviewer effects?

 
   
  Mail
  Phone
  Online
  In person
  Focus group

 

  Difficulty:  3
  QuestionID:  05-2-85
  Page-Reference:  158
  Skill:  Applied

 

  Answer:  Mail

 

  2.0.86. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

If Jason wants to be sure that respondents can answer questions in their own words, his questionnaire should feature which type of questions?

 
   
  Open-ended
  Personal
  Factual
  Quantitative
  Closed-ended

 

  Difficulty:  3
  QuestionID:  05-2-86
  Page-Reference:  165
  Skill:  Applied

 

  Answer:  Open-ended

 

  2.0.87. Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

Jason could capture information at every possible customer touchpoint. What strategy could Jason use to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?

 
   
  Mechanical research
  Online databases
  Ethnographics
  Customer relationship management
  Marketing intelligence networks

 

  Difficulty:  3
  QuestionID:  05-2-87
  Page-Reference:  167
  Skill:  Applied

 

  Answer:  Customer relationship management

 

 

        3.0 – Part III Short Answer Questions

 

  3.0.1.  Discuss the makeup and functions of a marketing information system (MIS).
     

 

  Difficulty:  2
  QuestionID:  05-3-01
  Page-Reference:  145
  Skill:  Applied

 

  Answer: A typical MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. First, it interacts with information users to assess information needs. Next, it develops needed information from internal company databases, marketing intelligence activities, and marketing research. Finally, it helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships.

 

  3.0.2.  Briefly explain the following statement: “Too much information can be as harmful as too little.”
     

 

  Difficulty:  3
  QuestionID:  05-3-02
  Page-Reference:  146
  Skill:  Applied

 

  Answer: Too much information may prohibit marketers from clearly applying the data/information to their objectives; excess information may also lead marketers to lose sight of their objectives.

 

  3.0.3.  Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Explain some common sources for each of these.
     

 

  Difficulty:  3
  QuestionID:  05-3-03
  Page-Reference:  147-167
  Skill:  Applied

 

  Answer: Internal databases are built upon records of consumer and market information data sources within the company network. For example, the accounting department provides records of sales, costs, and cash flows; operations reports on production-related issues; sales and marketing provides data on resellers, competitors, buyer behaviour, and the industry; and marketing provides information on customer transactions, demographics, and buying behaviour. Internal data are cheaper sources that are easy to access. Marketing intelligence is a collection and analysis of publicly available data about consumers, competitors, and developments in the industry. It can come from quizzing employees, studying competitors’ ads and annual reports, analyzing competitors’ products, monitoring Internet buzz, and researching the Internet. In addition to internal data and marketing intelligence, marketers often need formal studies of specific situations. To address this need, they conduct marketing research to collect, analyze, and report secondary and primary data to better form decisions.

 

  3.0.4.  What are some ways that companies can collect competitive intelligence?
     

 

  Difficulty:  3
  QuestionID:  05-3-04
  Page-Reference:  148-149
  Skill:  Recall

 

  Answer: Much competitor intelligence can be collected from people inside the company—executives, engineers and scientists, purchasing agents, and the sales force. The company can also obtain important intelligence information from suppliers, resellers, and key customers. Or it can get good information by observing competitors and monitoring their published information. It can buy and analyze competitors’ products, monitor their sales, check for new patents, and examine various types of physical evidence.

 

  3.0.5.  Describe the basic marketing research process.
     

 

  Difficulty:  2
  QuestionID:  05-3-05
  Page-Reference:  150-151
  Skill:  Applied

 

  Answer: The marketing research process involves four steps: defining the problem and research objectives, developing the plan, implementing the plan, and interpreting and reporting the findings. Managers must know what is wrong in defining the problem. Research objectives may be reached through exploratory, descriptive, or causal research. Next, the information needed and a plan for gathering and presenting is made. Then, secondary and primary data must be collected to compile and analyze. Finally, the important information must be presented to management for decision making.

 

  3.0.6.  Why is it important for the statement of the problem and the research objectives to guide the entire research process?
     

 

  Difficulty:  2
  QuestionID:  05-3-06
  Page-Reference:  150-151
  Skill:  Applied

 

  Answer: The specific nature of the problem and the research objectives determine which type of research, contact methods, sampling plans, and instruments should be used; without a focus of a specific problem and objectives, the marketing research process would not result in relevant data.

 

  3.0.7.  The research plan should be presented in a written proposal. What should that proposal contain?
     

 

  Difficulty:  3
  QuestionID:  05-3-07
  Page-Reference:  151-152
  Skill:  Recall

 

  Answer: The proposal should cover the management problems addressed and the research objectives, the information to be obtained, and the way the results will help management decision making. The proposal should also include research costs.

 

  3.0.8.  Briefly compare the three different types of research approaches for gathering primary data.
     

 

  Difficulty:  2
  QuestionID:  05-3-08
  Page-Reference:  154-157
  Skill:  Applied

 

  Answer: The three research approaches for gathering primary data are observations, surveys, and experiments. Observational research involves watching relevant people, actions, and situations, usually to glean customer insights that can’t be obtained through direct questions and answers. Observations can reveal information that people are unwilling or unable to provide in surveys or experiments. Survey research is very flexible, as it can be used to obtain many different kinds of information in many different situations. Mail, telephone, and online surveys have relatively low costs in comparison to observational research. Surveys are also better suited than observations for gathering descriptive information. Experimental research is best suited for gathering causal information.

 

  3.0.9.  Provide the advantages/benefits of each of the contact methods.
     

 

  Difficulty:  3
  QuestionID:  05-3-09
  Page-Reference:  158
  Skill:  Applied

 

  Answer: Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Respondents may give more honest answers to more questions by mail than to an unknown interviewer in person or on the phone. Also, no interviewer is involved to bias the answers. Telephone interviewing is one of the best methods for gathering information quickly, and it provides great flexibility. Interviewers can explain difficult questions, skip questions, or probe on other questions. Rates of response tend to be higher than through the mail. Personal and group interviews are flexible and allow interviewers to guide respondents and explore issues as they evolve. Visual aids can be used, products can be demonstrated, and reactions and behaviours can be observed. Online methods allow the interviewee to be more honest, the costs are greatly reduced, the response rate is higher, and reports come back faster.

 

  3.0.10. Why is the Internet especially well suited to quantitative research—conducting marketing surveys and collecting data?  
     

 

  Difficulty:  1
  QuestionID:  05-3-10
  Page-Reference:  160
  Skill:  Recall

 

  Answer: Eighty-five percent of Canadians now have access to the Web, making it a fertile channel for reaching a broad cross-section of consumers. As response rates for traditional survey approaches decline and costs increase, the Web is quickly replacing mail and the telephone as the dominant data collection methodology.

 

  3.0.11.  Describe the three decisions a researcher must make when designing a sample.  
     

 

  Difficulty:  1
  QuestionID:  05-3-11
  Page-Reference:  162
  Skill:  Applied

 

  Answer: First, the researcher must determine who is to be surveyed. Next, a researcher must determine the sample size by deciding how many people need to be surveyed. Third, the sampling procedure should be chosen to know how the respondents should be chosen.

 

  3.0.12.  Compare and contrast closed-ended questions and open-ended questions for gathering data.  
     

 

  Difficulty:  1
  QuestionID:  05-3-12
  Page-Reference:  165
  Skill:  Applied

 

  Answer: Closed-ended questions, which include all possible answers, make it easier for respondents to choose among relevant answers. Examples include multiple-choice questions and scale questions. These types of questions are easier for the researcher to interpret and tabulate. Open-ended questions allow respondents to answer in their own words and as such do not limit their choices. Open-ended questions are more difficult to interpret and tabulate, but they are particularly useful in exploratory research.

 

  3.0.13. Air Canada must design a questionnaire for an exploratory research study. What guidelines for drafting a questionnaire should it consider?  
     

 

  Difficulty:  2
  QuestionID:  05-3-13
  Page-Reference:  165
  Skill:  Applied

 

  Answer: Open-ended questions are especially useful in exploratory research, when the researcher is trying to find out what people think but not measuring how many people think in a certain way. Air Canada’s researchers should also use care in the wording and ordering of questions. They should use simple, direct, unbiased wording. Questions should be arranged in a logical order. The first question should create interest if possible, and difficult or personal questions should be asked last so that respondents do not become defensive.

 

  3.0.14.  Explain why it’s important for both the researcher and the marketing manager to interpret the findings of market research.  
     

 

  Difficulty:  2
  QuestionID:  05-3-14
  Page-Reference:  166-167
  Skill:  Applied

 

  Answer: Both a marketing manager and a researcher bring important points of view to the task: a marketing manager is an expert in the problem and the decisions that must be made, but also may be biased about the results; a researcher is an expert in statistics. Because findings can be interpreted in many ways, discussions between a researcher and marketing manager will lead to the most appropriate interpretation for the given situation.

 

  3.0.15.  How can a company overcome the problem of gathering internal data for research purposes when the data is usually scattered widely across the organization?  
     

 

  Difficulty:  3
  QuestionID:  05-3-15
  Page-Reference:  167-168
  Skill:  Applied

 

  Answer: Many companies are using customer relationship management (CRM). CRM offers the benefits of managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty. By using sophisticated software and analytical tools, information about customers can be integrated from all sources and analyzed in depth, and the results can be applied to build stronger customer relationships. CRM integrates everything that a company’s sales, service, and marketing teams know about individual customers to provide a 360-degree view of the customer relationship. CRM involves creating a data warehouse that can be mined for useful insights about customers.

 

  3.0.16.  Discuss several ways in which smaller organizations can use marketing research techniques at little or no expense.  
     

 

  Difficulty:  2
  QuestionID:  05-3-16
  Page-Reference:  170-171
  Skill:  Applied

 

  Answer: Small organizations can use the same marketing research process as larger firms, as well as many of the same methods, such as secondary data collection, observation, surveys, and experiments. There are many sources of free secondary data on the Web, and small firms also have access to special help collecting data from chambers of commerce, government agencies, and other organizations. Managers of small organizations can use observation and conversations with their customers to collect data. Informal surveys with small convenience samples are another tool that smaller organizations can use. As with larger firms, smaller organizations must conduct research systematically for the results to be valid and useful.

 

  3.0.17.  Explain the common problems that international marketing researchers encounter.  
     

 

  Difficulty:  3
  QuestionID:  05-3-17
  Page-Reference:  171-172
  Skill:  Applied

 

  Answer: International researchers deal with less homogeneous markets in and among countries. The markets often vary greatly in their levels of economic development, cultures and customers, and buying patterns. Good secondary data are difficult to find in many foreign markets. More time and expense is involved in gathering primary data. In addition, choosing representative samples and finding methods of contacting participants can be a formidable task. Cultural and language differences can present obstacles in interpreting the data and drawing realistic conclusions. Consumers’ attitudes in other countries may hinder the process of collection.

 

  3.0.18.  Why is it difficult to obtain relevant and reliable secondary data when conducting international marketing research?  
     

 

  Difficulty:  2
  QuestionID:  05-3-18
  Page-Reference:  171-172
  Skill:  Applied

 

  Answer: Unlike Canada and the United States, many countries have no or almost no research services; in addition, most international research services operate in only a handful of countries. Thus, even when secondary information is available, it usually must be obtained from many different sources on a country-by-country basis, making the information difficult to combine or compare.

 

 

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