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Marketing Research 8th Edition by Burns – Test Bank
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Marketing Research, 8e (Burns/Bush)
Chapter 2 The Marketing Research Industry
1) Information gathering to be used for decision-making goes back to the earliest days of recorded history. In the United States, surveys were used in the early 1800s to determine:
- A) The popularity of political candidates.
- B) The popularity of saloon entertainers.
- C) The popularity of early sports teams.
- D) The popularity of regional foods.
Answer: A
LO: 2:1: A brief history of the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
2) The first known application of marketing research to a business marketing/advertising problem was conducted by:
- A) A group of students.
- B) An advertising agency.
- C) A farm equipment company.
- D) A publishing company.
Answer: B
LO: 2:1: A brief history of the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
3) ________ is the person recognized as the “Father of Marketing Research.” He is given credit for conducting the first continuous and organized market research
- A) Charlie Young
- B) C. J. Craig
- C) Charles Coolidge Parlin
- D) Jed Bartlet
Answer: C
LO: 2:1: A brief history of the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
4) The term used for research conducted within an organization is called:
- A) Internal research.
- B) Market-side research.
- C) Supplier-side research.
- D) Client-side research.
Answer: D
LO: 2:2: The different types of marketing research firms
Diff: Easy
Classification: Application
AACSB: Application of knowledge
5) In medium-size and smaller firms, the responsibilities of those in the market research department are primarily:
- A) Helping others in the firm know when to do research and in finding the right supplier firm to help conduct marketing research.
- B) Helping others in the firm do the research and conducting the analysis.
- C) Executing the research, conducting the analysis, and reporting the findings.
- D) Designing the research, executing the research, and reporting the findings.
Answer: A
LO: 2:2: The different types of marketing research firms
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
6) ________ represent the “democratization” of marketing research.
- A) Do-it-yourself research applications
- B) Online survey platforms
- C) Online secondary research platforms
- D) Statistical analysis software solutions
Answer: A
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
7) One of the most important emerging trends for client-side marketing research departments is:
- A) Specialized internal research teams.
- B) Increasing use of specialized research agencies.
- C) Informal departments organized around specific product.
- D) Increasing use of do-it-yourself research.
Answer: D
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
8) The appeal of do-it-yourself research has to do with:
- A) Its cost effectiveness and increasing availability of marketing research tools.
- B) The increasing availability of marketing research tools.
- C) Its cost effectiveness and the ability to visualize data.
- D) The increasing availability of marketing research tools and ability to visualize data.
Answer: A
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
9) Firms sometimes hire an outside marketing research company to conduct its research. This is referred to as:
- A) In-house research.
- B) Supply-side research.
- C) Do-it-yourself research.
- D) Client-side research.
Answer: B
LO: 2:2: The different types of marketing research firms
Diff: Easy
Classification: Application
AACSB: Application of knowledge
10) The ________ is an annual publication that lists the top global marketing research firms in the world by revenue earned.
- A) Honomichl Global Top 25
- B) AMA Gold Global Top 50
- C) AMA Platinum Top 25
- D) MRA’s Top 50
Answer: B
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
11) Full-service supplier firms:
- A) Focus primarily in quantitative research.
- B) Provide services at a reduced cost due to economies of scale.
- C) Have the ability to conduct the entire marketing research project.
- D) Provide qualitative services only.
Answer: C
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
12) A research firm that specializes in one, or, at most, a few marketing research activities is:
- A) A full-service supplier firm.
- B) A syndicated data service firm.
- C) An internal supplier firm.
- D) A limited-service supplier firm.
Answer: D
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
13) The marketing research industry relies on:
- A) Derived demand.
- B) Latent demand.
- C) Irregular demand.
- D) Full demand.
Answer: A
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
14) The fastest-growing regions of the world for marketing research are:
- A) India and China.
- B) Africa and the Middle East.
- C) Mexico and Brazil.
- D) Europe and the United States.
Answer: B
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
15) The five largest markets, by country, for marketing research are:
- A) China, India, United States, and Brazil.
- B) United States, China, India, Saudi Arabia, and United Kingdom.
- C) United States, United Kingdom, Germany, France, and China.
- D) United States, Germany, France, India, and United Kingdom.
Answer: C
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
16) Which of the following is NOT a major source of online information allowing marketers to explore the many different types of research firms that operate worldwide?
- A) GreenBook
- B) BlueBook
- C) Quirk’s Researcher SourceBook™
- D) Thomas Register®
Answer: D
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
17) After many years of relative stability in marketing research methods, the industry is undergoing great change due to:
- A) New sources of data and technology.
- B) Expanded focus on qualitative methods.
- C) Reluctance of clients to adopt new research methods.
- D) New uses of traditional research tools.
Answer: A
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
18) In the 1990s, ________ brought about significant change, with online panels becoming a primary source of data.
- A) new software approaches
- B) electronic surveys
- C) automated sampling
- D) survey volunteers
Answer: B
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
19) Data that are gathered without overt questioning or other types of interactions with consumers have become a new and valuable source of information. This type of data are called:
- A) Interactive data.
- B) Social media data.
- C) Passive data.
- D) Panel data.
Answer: C
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
20) In a 2015 survey of marketing researchers by GreenBook, over half of respondents (56%), stated that ________ are one of the biggest challenges they face.
- A) methodologies
- B) data
- C) new software approaches
- D) technology investments
Answer: A
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
21) Which of the following is NOT a new source of data that have the potential to provide valuable insights?
- A) Social media websites
- B) The Internet of Things (IoT)
- C) Syndicated data
- D) Phone and mail surveys
Answer: D
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
22) Marketing researchers not only need to be skilled at gathering and analyzing data, but also at communicating results effectively because of:
- A) The multiple new types of data and methods now in use.
- B) The multiple new types of social media.
- C) The multiple new types of interactive resources.
- D) The multiple new types of traditional data and methods.
Answer: A
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
23) For the marketing research industry to evolve, there exists a need for researchers to:
- A) Understand the broader implications of new research technologies.
- B) Dig deeper into data and deliver strategic insights with their results.
- C) Dig deeper into data and deliver tactical insights with their results.
- D) Understand the broader implications of social media data.
Answer: B
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
24) There is an increasing demand for researchers to present results:
- A) With full statistical analysis and commentary.
- B) With competitor data and profiles.
- C) In unambiguous, understandable, easy-to-grasp reports.
- D) In an understandable format that connects to the client’s strategic plan.
Answer: C
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
25) One of the most compelling challenges for the marketing research industry is finding individuals who combine tech savviness and analytical skills with:
- A) The ability to perform high-level statistical analysis.
- B) The ability to understand new software technologies.
- C) The ability to understand syndicated and social media data.
- D) The ability to synthesize data and present it in a compelling way.
Answer: D
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
26) Which of the following organizations has been devoted to developing best practices for the marketing research profession?
- A) MRA (Marketing Research Association)
- B) AMA (American Marketing Association)
- C) AAPOR (American Association for Public Opinion Research)
- D) CASRO (Council of American Survey Research Organizations)
Answer: A
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
27) What does “sugging” refer to?
- A) Fundraising under the guise of a survey
- B) Selling under the guise of a survey
- C) Collecting data through telephone interviews
- D) Surveying under the guise of selling
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
28) What does “frugging” refer to?
- A) Collecting data through telephone interviews
- B) Selling under the guise of a survey
- C) Fundraising under the guise of a survey
- D) Surveying under the guise of selling
Answer: C
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
29) Which organization offers an online guide, “What Survey Participants Need to Know,” to provide the public with information about the conduct and use of survey research?
- A) MRA (Marketing Research Association)
- B) AMA (American Marketing Association)
- C) AAPOR (American Association for Public Opinion Research)
- D) CASRO (Council of American Survey Research Organizations)
Answer: D
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
30) The Transparency Initiative is a program by the ________ to encourage the routine disclosure of methods used in research that is released to the public.
- A) AAPOR (American Association for Public Opinion Research)
- B) MRA (Marketing Research Association)
- C) AMA (American Marketing Association)
- D) CASRO (Council of American Survey Research Organizations)
Answer: A
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
31) Under what circumstance is there an exemption under the Do Not Call Registry?
- A) Calling U. S. citizens to sell an unsolicited offer
- B) Calling U.S. citizens for survey purposes
- C) Calling U.S. citizens for political push polling purposes
- D) Calling U.S. citizens for telemarketing purposes
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
32) For many years, ________ has monitored trends in the industry.
- A) Burke Institute
- B) American Association for Public Opinion Research (AAPOR)
- C) GreenBook
- D) Industry Financial Survey
Answer: C
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
33) What annual publication reports data provided to the industry in terms of what techniques are being used as well as what drives their use?
- A) Quirk’s Researcher SourceBook™
- B) Thomas Register®
- C) ESOMAR Directory
- D) GreenBook Research Industry Trends (GRIT)
Answer: D
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
34) ________ publishes an annual Global Market Research report that includes many measures of industry performance.
- A) ESOMAR
- B) AAPOR
- C) MRA
- D) CASRO
Answer: A
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
35) MRA’s “Code of Marketing Research Standards” discusses the ethics of collecting passive user data. Which of the following is NOT considered passive user data?
- A) Web tracking (including but not limited to: Flash, QuickTime, cookies and JavaScript)
- B) Manual entry of a telephone survey with permission of the respondent
- C) Manual entry into a historical profile after a conversation, email or online chat with a customer service representative
- D) Certain forms of observational research such as mystery shopping, social media listening or certain ethnographic protocols
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Difficult
Classification: Application
AACSB: Ethical understanding and reasoning
36) Which of the following does NOT represent the maintenance of marketing research integrity?
- A) Data will never be falsified or omitted.
- B) Research results will be reported accurately and honestly.
- C) Research companies may withhold damaging client data.
- D) Researchers will not misrepresent the impact of the sampling method and its impact on sample data.
Answer: C
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
37) Ensuring that respondents may elect not to take part or participate in a research project is a common ethical code practice. This code falls into the category of:
- A) Concern for society.
- B) Fair dealings with clients and subcontractors.
- C) Maintaining research integrity.
- D) Fair dealings with respondents.
Answer: D
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
38) Falsifying data in order to make the findings consistent with predetermined points of view would demonstrate:
- A) Lack of research integrity.
- B) Lack of proper study design.
- C) Lack of proper study supervision.
- D) Lack of the use of data falsification detection software.
Answer: A
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
39) The major associations created a common ethical code to ensure that research released for public information will contain information that ensures transparency. This code falls into the category: of:
- A) Fair dealings with respondents.
- B) Concern for society.
- C) Fair dealings with clients and subcontractors.
- D) Maintaining research integrity.
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
40) The abbreviation, “PRC,” stands for:
- A) Public Researcher Certification.
- B) Professional Researcher Certification.
- C) Professional Researcher, Corporate.
- D) Professional Researcher Certificate.
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
41) What organization sponsors the certification program in the U.S. for marketing researchers?
- A) American Marketing Association
- B) Marketing Research and Intelligence Association
- C) Marketing Research Corporation
- D) Marketing Research Association
Answer: D
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
42) What organization sponsors the certification program in Canada for marketing researchers?
- A) Marketing Research and Intelligence Association
- B) American Marketing Association
- C) Marketing Research Corporation.
- D) Marketing Research Association.
Answer: A
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
43) Which of the following is NOT an advantage of obtaining certification as a professional marketing researcher?
- A) Puts researchers in a select group of like-minded professionals
- B) Would be able to charge higher fees for their services
- C) A visible badge of distinction, demonstrating professional skill, commitment, and dedication
- D) Have taken training in both the research and legal fields
Answer: B
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
44) Two serious ethical issues in marketing research are deception and invasion of privacy. Which of the following is NOT an example of deception or invasion of privacy?
- A) Potential respondents are not told the true identity of the sponsor of the research.
- B) Potential respondents are viewed during a study without their permission.
- C) Respondents participate in a focus group and are compensated for their opinions.
- D) Potential respondents are told they will remain anonymous when they will not.
Answer: C
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
45) Misrepresenting the impact of the sampling method and its impact on sample data violates ethics codes of the marketing profession. This code would falls into the category of:
- A) Fair dealings with respondents.
- B) Fair dealings with clients and subcontractors.
- C) Maintaining research integrity.
- D) Concern for society.
Answer: C
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
46) IBIS World predicts that the number of employees in the marketing research industry will:
- A) See jobs expand annually through 2020, but also experience a leveling of wages.
- B) See jobs expand annually through 2020 with a corresponding increase in wages.
- C) Not see annual job expansion with a corresponding contraction in wage levels.
- D) Not see annual job expansion, but with a corresponding slight increase.
Answer: B
LO: 2:6: How to investigate careers in marketing
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
47) Charles Coolidge Parlin conducted the first continuous and organized research in 1911, when he was hired by the Pearson Education Company to gather information about academic markets to help Pearson sell textbooks.
Answer: FALSE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
48) Prior to the Industrial Revolution, in an economy based on artisans and craftsmen involved in barter exchange with their customers, there was not much need to “study” consumers.
Answer: TRUE
LO: 2:1: A brief history of the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
49) A. C. Nielsen and George Gallup are known as the “Fathers of Marketing Research.”
Answer: FALSE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
50) By the late 1950s and 1960s, marketing research was seen as indispensable for companies to track consumption changes in increasingly expanding markets.
Answer: TRUE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
51) The development of cloud computing in the 1970s led to the automation of data management and analysis for larger firms.
Answer: FALSE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
52) In the 1900s and 2000s, the wide availability and convenience of the Internet transformed all phases of the research process, from data collection to analysis to reporting.
Answer: TRUE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
53) Even with the tremendous growth, the emergence of several professional organizations, and a certification program, the industry includes few publicly held firms.
Answer: FALSE
LO: 2:1: A brief history of the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
54) Client-side research is research that is conducted within an organization.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Easy
Classification: Application
AACSB: Application of knowledge
55) Supplier-side departments may appear in organizational charts under a variety of names, such as consumer insights, but they serve the basic function of providing information to decision makers.
Answer: FALSE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
56) Medium-sized and smaller firms may assign an individual or team to conduct some of the research, but often their responsibilities lie in helping others in the firm know when to do research and in finding the right supplier firm to help conduct marketing research.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
57) Do-it-yourself (DIY) research, which has been called the “socialization” of marketing research, is considered one of the most important emerging trends for client-side marketing research departments.
Answer: FALSE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
58) DIY marketing research has been facilitated by online access to secondary data and better knowledge of data analysis software such as SPSS.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
59) Data analysis and visualization dashboards (such as those offered by Burke and Tableau) are examples of tools that would be used by DIY researchers.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
60) Marketing research tools like online survey platforms (such as Qualtrics and SurveyMonkey) statistical analysis tools (such as SPSS, SAS, and R), social media monitoring tools (such as Hootsuite) are so expensive that they are out of reach for DIY researchers.
Answer: FALSE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
61) Supply-side marketing research is research conducted by an outside firm hired to fulfill a company’s marketing research needs.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
62) Full-service supplier firms have the ability to define the problem, specify the research design, collect and analyze the data. However, the client prepares the final report.
Answer: FALSE
LO: 2:2: The different types of marketing research firms
Diff: Easy
Classification: Application
AACSB: Application of knowledge
63) Firms specializing in different types of industries, such as airline, sports, or pharmaceuticals would be examples of limited-service supplier firms.
Answer: TRUE
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
64) Three professional organizations publish industry resources and provide a better understanding of the many different types of research firms and their specialties. The three organizations are GreenBook, MRA’s Blue Book, and Quirk’s.
Answer: TRUE
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
65) The marketing research industry is one of the few that does not rely on derived demand.
Answer: FALSE
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
66) The fastest-growing regions of the world for marketing research are Africa and the Middle East.
Answer: TRUE
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
67) The five largest markets by country for marketing research are United States (42%), United Kingdom (12%), Germany (8%), India (6%), and China (4%)
Answer: FALSE
LO: 2:3: To be aware of the industry structure of marketing research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
68) The marketing research industry is currently facing a number of important challenges including evolving sources of data and methodologies, the effective communication of results, and the need for talented and skilled employees.
Answer: TRUE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
69) In recent years, passive data, or data that are gathered with covert questioning or other types of interactions with consumers, have become a new and valuable source of information.
Answer: FALSE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
70) The methodologies necessary to analyze the data from social media websites, the Internet of Things (IoT) and new kinds of syndicated data have the potential to provide valuable insights, but are not easy to develop and learn.
Answer: TRUE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
71) Older and established marketing research companies find it difficult to keep abreast of new technologies, while new, upstart marketing research companies find unique and new ways to deliver the promised insights.
Answer: FALSE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
72) With the multiple new types of data and methods now in use, marketing researchers not only need to be skilled at gathering and analyzing data but also at communicating results effectively.
Answer: TRUE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
73) In a recent survey by Quirk’s, fully half of marketing research clients stated that they have had trouble with research suppliers who “did not take time to understand our business.”
Answer: TRUE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
74) Fortunately, the industry has an ample supply of marketing researchers who can dig deeper into data and who can deliver strategic insights with their results.
Answer: FALSE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
75) There is an increasing demand that marketing researchers provide simple and straightforward reports that “tell a story” rather than give clients lengthy, complex documents.
Answer: TRUE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
76) A survey by GreenBook notes a need for individuals who can combine tech savviness and analytical skills with the ability to synthesize data and communicate results from social media and user-generated media in a compelling way.
Answer: FALSE
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
77) Led by some active professional associations, several initiatives have been undertaken to improve industry performance.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
78) Despite best efforts, the marketing research industry has fallen short with initiatives directed at keeping the public informed about the value of research, the appropriateness of research methods, and the ethics the industry uses in collecting research information.
Answer: FALSE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Difficult
Classification: Application
AACSB: Ethical understanding and reasoning
79) Telemarketers used sugging for years to entice the public into taking what they thought was an opinion survey but actually was a lead-in for a sales pitch.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
80) “Fund raising under the guise of research” is known as frugging and is illegal.
Answer: FALSE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
81) The Council of American Survey Research Organizations (CASRO). offers an online guide, “What Survey Participants Need to Know,” to provide the public with information about the conduct and use of survey research.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
82) The National Do Not Call Registry was established that allows U.S. residents to register their telephone numbers to be protected from receiving unsolicited telemarketing calls.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Ethical understanding and reasoning
83) Unsolicited phone calls for the purpose of conducting surveys were not exempted from the restrictions imposed by the Do Not Call Registry. In other words, researchers conducting surveys cannot legally call U.S. residents.
Answer: FALSE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Difficult
Classification: Application
AACSB: Ethical understanding and reasoning
84) GreenBook Research Industry Trends (GRIT) report provides insights by contrasting supplier marketing research firms’ views on issues with buyer-client views.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
85) ESOMAR publishes an annual Global Market Research report, which examines perceived threats and attitudes toward changes in the industry, forecasts revenues, and profiles innovations.
Answer: FALSE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
86) The professional associations serving the marketing research industry have all established rules, standards, or codes of ethical conduct.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
87) Larger firms, such as those found in the Fortune 500, typically have a formal department devoted to marketing research.
Answer: TRUE
LO: 2:2: The different types of marketing research firms
Diff: Easy
Classification: Application
AACSB: Application of knowledge
88) While associations have attempted to set professional rules, standards, and codes of ethical conduct, most have not been proactive in maintaining and updating these standards.
Answer: FALSE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
89) Certification programs assure that certified individuals have passed some standard(s) of performance.
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
90) In the United States, professionals may earn the Professional Researcher Certification (PRC).
Answer: TRUE
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
91) IBIS World predicts that the number of employees in the marketing research industry will expand at an average annual rate of 2.1% through 2020, with wages predicted to increase at an average annual rate of 2.5%.
Answer: TRUE
LO: 2:6: How to investigate careers in marketing
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
92) Quirk’s Marketing Research Media maintains a directory of colleges and universities that offer certificates, concentrations, programs, or degrees in marketing research.
Answer: TRUE
LO: 2:6: How to investigate careers in marketing
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
93) Describe the evolution of the marketing research industry from the early roots in the 1800s to the present. Note key events from early beginnings to its evolution as a mature industry today that caused it to grow.
Answer: Answers do not have to completely or comprehensively recount the history of market research. However, answers should cover the key events and milestones of the development of the marketing research industry. Key points that may be mentioned are as follow: Gathering information dates back to the earliest days of recorded history. Surveys were used for politics in the United States in the early 1800s. The first known application of research to a business/marketing/advertising problem was conducted by an ad agency in 1879, and the first continuous, organized research was started in 1911 by Charles Coolidge Parlin. The industry began to grow in the early 1900s as the Industrial Revolution separated business owners from customers. Many developments occurred during the 20th century that allowed marketing research to evolve into a mature industry
LO: 2:1: A brief history of the marketing research industry
Diff: Easy
Classification: Application
AACSB: Application of knowledge
94) Compare and contrast client-side and supply-side marketing research. Provide an example of a typical project for each.
Answer: Students should be able to clearly distinguish between client-side and supply-side marketing research. Answers should include something similar to the following: Marketing research may be divided into client-side research and supply-side research. Client-side research is marketing research that is conducted within and for a firm (such as research that is conducted by a marketing research department within a manufacturing firm). Supply-side research is research that is conducted by an outside firm to fulfill a company’s marketing research needs. Advanced answers will also include comments such as: Firms that conduct supply-side marketing research are also called agencies, or simply suppliers. A few large firms and many small firms characterize the industry. The largest firms have revenues in the billions of dollars. Firms are classified as full-service or limited-service supplier firms. All answers should provide a clear example of a typical project for each type.
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
95) Do-it-yourself (DIY) research has been called the “democratization” of marketing research. Discuss the factors and reasons that it is considered to be one of the great emerging trends affecting client-side research departments.
Answer: Do-it-yourself (DIY) marketing research refers to firms conducting their own marketing research. Answers should state that DIY marketing research has been facilitated by online access to secondary data and better knowledge of data analysis software such as SPSS. Comments should note that DIY research could provide the information needed to solve the user’s problem in a cost-effective way. An increasing number of tools are being developed so firms can conduct their own marketing research. Advanced answers may mention online survey platforms (such as Qualtrics and SurveyMonkey), statistical analysis tools (such as SPSS, SAS, and R), social media monitoring tools (such as Hootsuite) and data analysis and visualization dashboards (such as those offered by Burke and Tableau) as new valuable online tools.
LO: 2:2: The different types of marketing research firms
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
96) There are two types of supply-side firms or agencies: full-service firms and limited-service firms. Discuss the differences and similarities between full-service supplier firms and limited-service firms. Provide examples of the typical projects or engagements each might perform.
Answer: Answers should clearly discuss differences and similarities between full-service supplier and limited-service firms. Discussion may include comments to the effect that research that is conducted by an outside firm to fulfill a company’s marketing research needs is called supply-side research. A firm that is engaged in supply-side marketing research is often referred to as an agency, or simply as a supplier. Comments will recognize that these firms specialize in marketing research and offer services to buyers needing information to make more informed decisions. In most cases, client-side marketing researchers also purchase research from marketing research suppliers. General Motors, for example, while conducting research on electric cars, may hire a research firm in California to provide feedback from consumers who test-drive prototype cars. Large and small firms, for-profit and not-for-profit organizations, and government and educational institutions purchase research information from suppliers. Comments will recognize that limited-service supplier firms specialize in one or, at most, a few marketing research activities. Firms can specialize in marketing research services such as online communities, questionnaire development and pretesting, data collection, or data analysis. Some firms specialize in specific market demographic segments such as senior citizens or Hispanics.
Typical projects or engagement examples may be those from the text or from the student’s experience.
LO: 2:2: The different types of marketing research firms
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
97) There are many new challenges facing the marketing research industry that have emerged in recent years. Some practitioners say the industry “must evolve.” Describe and discuss some of the challenges facing the industry.
Answer: Discussion will note that the nature of these new challenges include new and evolving sources of data, effective communication of results, and finding talented and skilled employees. Answers will note that the new sources of data have created challenges for marketing research companies that want to take advantage of new technology. Comments may mention that in a 2015 survey of marketing researchers over half of respondents (56%) stated that methodologies are one of the biggest challenges that they face. Discussion should include comments that data sources, such as social media websites, the Internet of Things (IoT), and new kinds of syndicated data, have the potential to provide valuable insights. However, the methodologies necessary to analyze the data are not easy to develop and learn. Answers may mention that some researchers believe that the marketing research industry has been adapting to new opportunities too slowly. Older and established marketing research companies find it difficult to keep abreast of new technologies, and new, upstart marketing research companies cannot always deliver the insights that they promise.
LO: 2:4: To be aware of new challenges to the marketing research industry
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
98) Discuss the marketing research industry’s proactive efforts regarding self-improvement including specific initiatives and how they improve the practice of marketing research.
Answer: Comments should note that the marketing research industry has been proactive regarding self-improvement, largely through industry initiatives, extensive continuing education programs, and certification. Answers should discuss several of the following in greater detail: best practices, maintaining public credibility, monitoring industry trends, improving ethical conduct, continuing education, and certification programs. Advanced answers will mention and explain “The Transparency Initiative” as a critical part of the marketing research industry’s effort to engage in self-improvement.
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
99) The professional associations serving the marketing research industry have all established rules, standards, or codes of ethical conduct. Discuss the four major areas or codes that have been established to improve ethical conduct.
Answer: Answers should demonstrate a clear understanding of each of the four core areas for ethical conduct. Answers will include the four major areas (or codes): 1. Fair dealings with respondents; 2. Fair dealings with clients and subcontractors; 3. Maintaining research integrity; 4. Concern for society. Advanced answers will give examples of each area as well as some of the industry associations’ individual standards of conduct.
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
100) Define the Professional Researcher Certification. Discuss what it is intended to do and the impact on the marketing research industry.
Answer: Discussion will mention that certification programs assure that certified individuals have passed some standard(s) of performance. Answers may compare certification in marketing research to certification programs in accounting (CPA) and finance (CFA) and other professional areas in business that have been in place for many years and give clients confidence in the credibility of those certified professionals. Answers may also differentiate between the U.S. and Canadian certification programs. In the United States, professionals may earn the Professional Researcher Certification (PRC). In Canada, the designation of Certified Marketing Research Professional (CMRP) is granted through the Marketing Research and Intelligence Association (MRIA.)
LO: 2:5: The areas of ethical sensitivity in the marketing research process and industry initiatives for self-improvement
Diff: Easy
Classification: Application
AACSB: Application of knowledge
Chapter 4 Research Design
1) Research design should be:
- A) Selected after thoroughly considering the problem and research objectives.
- B) Formulated after data analysis.
- C) The first consideration in a research project.
- D) Selected during the initial meeting with a client.
Answer: A
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
2) The research design is a ________ that specifies the methods that will be used to collect and analyze the information needed for a research project.
- A) methodology
- B) master plan
- C) generalized roadmap
- D) proposed guide
Answer: B
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
3) Knowledge of research design is important in:
- A) Selecting the appropriate data analytic visualization software.
- B) Developing an appropriate sales and marketing plan.
- C) Developing the research for the corporate strategic plan.
Answer: C
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
4) Once the researcher knows the basic research design, ________ may be made to form a framework for the development of the research project.
- A) the survey instrument
- B) the research budget
- C) staffing allocations
- D) a series of advance decisions
Answer: D
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
5) The reason to justify the significance placed on research design includes:
- A) Research designs may be “matched” to different kinds of problems, the research design may serve as a blueprint for the researcher.
- B) Research designs are like blueprints, they are most helpful during data analysis.
- C) Research designs are used after studies are completed and are used to make improvements in future research studies.
- D) Research designs are important because clients often decide to fund research if they find the design is pleasing to the eye.
Answer: D
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
6) Research design types include:
- A) Exploratory, descriptive, and causal.
- B) Exploratory, exploitive, and casual.
- C) Deductive, descriptive, and causal.
- D) Exploratory, causal, and prescriptive.
Answer: A
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
7) The choice of the type of research design depends largely on:
- A) Budget restrictions.
- B) Objectives of the research.
- C) Whether the research is domestic or international.
- D) Type of analytics required.
Answer: B
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
8) The less we know about a market or subject, the more likely it is that a researcher should use:
- A) Causal research.
- B) Descriptive research.
- C) Exploratory research.
- D) Formal research.
Answer: C
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
9) ________ should only be used when the researcher knows a fair amount about the problem.
- A) Exploratory research
- B) Descriptive research
- C) Formal research
- D) Causal research
Answer: D
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
10) Exploratory research is unstructured research, which means it does not have a:
- A) Predetermined set of procedures.
- B) Predetermined timetable for completion.
- C) Predetermined management approval.
- D) Predetermined budget.
Answer: A
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
11) ________ designs are used to test hypotheses or measure the reaction of one variable to a change in another variable.
- A) More informal
- B) More formal
- C) More expensive
- D) Less expensive
Answer: B
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
12) A small family-owned jeweler experiences more than a 20 percent decline in sales. The owners do not know what the problem is. The research design they should use is:
- A) Causal.
- B) Explanatory.
- C) Exploratory.
- D) Descriptive.
Answer: C
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
13) ________ is flexible in that it allows the researcher to investigate whatever sources he or she identifies and to the extent he or she feels is necessary to gain an understanding of the problem at hand.
- A) Causal
- B) Explanatory
- C) Descriptive
- D) Exploratory
Answer: D
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
14) Which of the following is NOT a use for exploratory research?
- A) To confirm hypotheses
- B) To gain background information
- C) To define terms, to clarify problems, and hypotheses
- D) To establish research priorities
Answer: A
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
15) ________ is the process of searching for and interpreting existing information relevant to the research topic.
- A) Primary data analysis
- B) Secondary data analysis
- C) Interpretative data analysis
- D) Analytical data analysis
Answer: B
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
16) The core of exploratory research is often an analysis of:
- A) Quantitative data.
- B) Primary data.
- C) Secondary data.
- D) Qualitative data.
Answer: C
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
17) Executives often use trade journals and industry publications as sources of information for innovation, trends, and news about customers, potential customers, competitors, and more. This is form of:
- A) Primary data analysis.
- B) Quantitative data analysis.
- C) Qualitative data analysis.
- D) Secondary data analysis qualitative data analysis.
Answer: C
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
18) A medical device company developing a cardiac device surveys well-known cardiac surgeons with subject matter knowledge about the problem the device company is trying to solve. This is an example of:
- A) Exploratory research.
- B) Descriptive research.
- C) Causal research.
- D) Experience research.
Answer: D
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
19) Experience surveys differ from surveys conducted as part of ________ in that there is usually no formal attempt to ensure that the survey results are representative of any defined group of subjects.
- A) descriptive research
- B) causal research
- C) exploratory research
- D) prescriptive research
Answer: A
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
20) Since research situations typically have at least some similarities to a past situation, executives may use ________ to review available information about one or more former situations to gain understanding of a current research problem with similar characteristics.
- A) exploratory analysis
- B) case analysis
- C) experience research
- D) descriptive research
Answer: B
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
21) By providing access to the unfettered opinions of consumers, ________ offer an instant way to gain background information for a problem, to define terms, to clarify problems and hypotheses, and to establish research priorities.
- A) focus groups
- B) online panels
- C) social media platforms
- D) executive interviews
Answer: C
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
22) Social media websites are a powerful source for what types of data?
- A) Primary research data
- B) Descriptive research
- C) Situational research data
- D) Exploratory research data
Answer: D
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
23) An incident of adulterated milk in China in 2008 that led to the death of six infants and the illness of hundreds of thousands of other babies has been studied to prevent other disasters from occurring through supply chain management. What type of research technique does this describe?
- A) Exploratory analysis
- B) Case analysis
- C) Experience research
- D) Descriptive research
Answer: B
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
24) Focus groups are one of the most widely used ________ methods to gain greater understanding of a current problem or to develop preliminary knowledge to guide in the design of descriptive or causal research.
- A) exploratory research
- B) case study analysis research
- C) experience research
- D) descriptive research
Answer: A
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
25) A marketing researcher would use what type of research to find out how many customers there are, what brands they buy and in what quantities, which advertisements they recall, what are their attitudes toward the company, and who is the competition?
- A) Descriptive research
- B) Exploratory research
- C) Causal research
- D) Case study analysis
Answer: A
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
26) What types of studies do descriptive research studies include?
- A) Studies that specify the causality in the problem
- B) Studies that need answers to who, what, when, where, and how questions
- C) Studies that describe previous findings in similar problems
- D) Studies that answer who, what, when, where, how, and why questions
Answer: B
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
27) The two basic types of studies categorized as descriptive research include:
- A) Case analysis and experiments.
- B) Longitudinal studies and case analysis.
- C) Longitudinal studies and cross-sectional studies.
- D) Focus groups and case analysis.
Answer: C
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
28) The types of descriptive research study that measure a population at only one point in time is:
- A) Point-in-time studies.
- B) Longitudinal studies.
- C) Cross-point studies.
- D) Cross-sectional studies.
Answer: D
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
29) Which type of panel asks panel members the same questions on each panel measurement?
- A) Continuous panels
- B) Variable panels
- C) Multivariate panels
- D) Discontinuous panels
Answer: A
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
30) Which type of panel varies questions from one panel measurement to the next?
- A) Continuous panels
- B) Repetitive panels
- C) Multivariate panels
- D) Discontinuous panels
Answer: D
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
31) Brand-switching studies can be invaluable to brand managers because ________ that show changes in market shares between several brands can be misleading.
- A) longitudinal studies
- B) cross-sectional studies
- C) directional studies
- D) discontinuous studies
Answer: B
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
32) Tracking studies are studies that involve the monitoring of the same variables of interest, such as market share or unit sales, over time. These types of studies are an example of:
- A) Cross-sectional studies.
- B) Multi-directional studies.
- C) Longitudinal studies.
- D) Discontinuous studies.
Answer: C
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
33) When conducting ________, “if-then” statements become a researcher’s way of manipulating variables of interest.
- A) causal research
- B) focus group research
- C) exploratory research
- D) descriptive research
Answer: A
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
34) What is the type of study in which one or more independent variables are manipulated to see how one or more dependent variables are affected, while also controlling the effects of additional extraneous variables?
- A) Hypothetical research study
- B) Experimental research study
- C) A procedural study
- D) An observational study
Answer: B
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
35) Level of advertising expenditure, type of advertising appeal (humor, prestige), display location, placement of website ads, method of compensating salespersons, price, and type of product are examples of:
- A) Dependent variables.
- B) Independent variables.
- C) Co-dependent variables.
- D) Non-dependent variables.
Answer: B
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
36) Sales, market share, customer satisfaction, sales force turnover, time spent on site, and unique net profits are examples of:
- A) Dependent variables.
- B) Independent variables.
- C) Co-dependent variables.
- D) Non-dependent variables.
Answer: A
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
37) A variable that exerts influence on the dependent variable but is not an independent variable is a(n):
- A) Extraneous variable.
- B) Non-extraneous variable.
- C) Complex variable.
- D) Co-dependent variable.
Answer: A
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
38) A procedure for ensuring that ________ is experimental design.
- A) any and all effects on all experimental values are measured
- B) the change in the dependent variable may be solely attributed to the change in the extraneous variable
- C) the change in the independent variable may be solely attributed to the change in the complex variable
- D) the change in the dependent variable may be solely attributed to the change in the independent variable
Answer: D
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
39) Which of the following concerns internal validity?
- A) The extent to which the change in the dependent variable was actually due to the independent variable
- B) The measurement of extraneous variables that is internal to the experimental setting itself
- C) The extent that the observed relationship between the independent variable and the dependent variable is generalizable to the real world
- D) The representativeness of the sample test units
Answer: A
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
40) A firm wants to test the marketing mix or product variables through the company’s normal distribution channels. What type of test marketing should be used?
- A) Standard test markets
- B) Simulated test markets
- C) Electronic test markets
- D) Controlled test markets
Answer: A
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
41) Which of the following does NOT represent criteria useful for selecting test-market cities?
- A) Representativeness
- B) Degree of isolation
- C) Ability to control distribution and promotion
- D) Major U.S. market
Answer: D
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Concept
AACSB: Application of knowledge
42) Because one of the major reasons for conducting a test market is to achieve ________, the test-market city should be representative of the marketing territory in which the product will ultimately be distributed.
- A) internal validity
- B) external validity
- C) internal variability
- D) external variability
Answer: B
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Concept
AACSB: Application of knowledge
43) An outside research firm guarantees distribution of a product that pre-specified types and numbers of distributors. This is an example of what type of test market?
- A) Electronic test markets
- B) Controlled test markets
- C) Simulated test markets
- D) Standard test markets
Answer: B
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
44) Several firms flood a test market with sales promotions when they know a competitor is test-marketing a product. This is an example of:
- A) Test market sale promotion support.
- B) Parallel product test marketing.
- C) Test market sabotage.
- D) Test market diversity.
Answer: C
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
45) Which of the following does NOT represent an advantage of test marketing?
- A) Test product acceptability
- B) Test marketing mix variable in a field setting
- C) Assists with sales forecasting
- D) Competition can run a simultaneous field test
Answer: D
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
46) Which of the following statements reflect a potential disadvantage of using a simulated test market?
- A) A simulated test market is not as accurate as full-scale test marketing.
- B) A simulated test market lacks confidentiality.
- C) Simulated test marketing is often too expensive.
- D) Simulated test marketing lacks confidentiality.
Answer: A
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
47) After submitting a winning proposal and becoming familiar with the client, researchers select a research design, which is a master plan that specifies the methods that will be used to collect and analyze the information needed for a research project.
Answer: FALSE
LO: 4:1: What research design is and why it is important
Diff: Easy
Classification: Application
AACSB: Application of knowledge
48) Knowledge of research design is important in developing an appropriate study to approach a problem or opportunity.
Answer: TRUE
LO: 4:1: What research design is and why it is important
Diff: Easy
Classification: Application
AACSB: Application of knowledge
49) Every problem and research objective may not be unique. There are not usually enough similarities among problems and objectives to allow researchers to make some decisions in advance about the best research design to use to resolve the problem.
Answer: FALSE
LO: 4:1: What research design is and why it is important
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
50) Once a researcher knows the basic research design, a series of advance decisions may or may not be made to form a framework for the development of the research project.
Answer: FALSE
LO: 4:1: What research design is and why it is important
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
51) Knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning.
Answer: TRUE
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
52) Research designs are classified into three traditional categories: exploratory, descriptive, and causal.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
53) The choice of the most appropriate design depends largely on the objectives, the budget, and client preferences associated with the research.
Answer: FALSE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
54) There are common categories of objectives. One of these includes gaining background information and developing hypotheses.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
55) One common category of objective is to measure the state of a variable of interest for sale, purchase, or investment (for example, level of brand loyalty).
Answer: FALSE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
56) There are common categories of objectives. One of these includes testing hypotheses that specify the relationships between two or more variables (for example, level of advertising and brand loyalty).
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
57) In the marketing research industry, ethical issues may arise in the potential for researchers to take advantage of clients in the research design process including recommending a costlier design than needed.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
58) A researcher has no legal or ethical issues or obligation to notify a client when designing a study in which data are collected for multiple clients.
Answer: FALSE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Ethical understanding and reasoning
59) Wrongfully gaining respondent cooperation to reduce costs; misrepresenting sampling methods; using information obtained for a client in another research project; and over- or underestimating data collection costs would be questionable ethical practices.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Difficult
Classification: Application
AACSB: Ethical understanding and reasoning
60) The choice of research design may depend on how much is already known about the problem and research objective.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
61) When not much is known about the problem or the research objective, it is best to use descriptive research design.
Answer: FALSE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
62) Causal research should only be used when a fair amount is known about the problem and when looking for causal relationships among variables associated with the problem or research objectives.
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
63) Unstructured, informal research that is undertaken to gain background information about the general nature of the research problem is called causal research.
Answer: FALSE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
64) Exploratory research does not have a predetermined set of procedures.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
65) Ray Kroc, the milkshake machine salesman who created McDonald’s, observed that restaurants in San Bernardino, California, run by the McDonald brothers were so busy they burned up more milkshake machines than any of his other customers. Kroc took that observation and turned it into the world-famous fast-food chain. This is an example of exploratory research.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
66) Exploratory research does not allow the researcher to investigate whatever sources he or she identifies to gain an understanding of the problem at hand.
Answer: FALSE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
67) Exploratory research can offer breakthrough ideas and fresh insights that lead to strategic knowledge.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
68) One of the shortcomings of exploratory research is that it cannot help to define terms and concepts.
Answer: FALSE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
69) Descriptive research allows the researcher to define the problem more precisely and to generate hypotheses for the upcoming study.
Answer: FALSE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
70) Secondary information is widespread and readily available; analyzing secondary data is almost always an important part of a marketing research project.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
71) Identification of the most useful data sources is another important step to social media data analysis.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
72) The most important user-generated data from social media is in the form of text.
Answer: FALSE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
73) Organization of the data from social media should be flexible and allow for diverse forms of media.
Answer: TRUE
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Easy
Classification: Application
AACSB: Application of knowledge
74) Data collection costs are strongly influenced by the incidence rate (the percentage of the population possessing the characteristics required to participate in a study).
Answer: TRUE
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
75) Descriptive research is desirable when we wish to project a study’s findings to a larger population.
Answer: TRUE
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
76) Prior to important elections, many sample surveys ask likely voters: “If the election were held today, which candidate would you vote for?” This type of sample survey represents a cross-sectional study.
Answer: TRUE
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
77) Because longitudinal studies involve multiple measurements, they can be described as “movies” of the population, and are used by almost all small businesses that use marketing research.
Answer: FALSE
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
78) The alternative term for continuous panels is omnibus panels.
Answer: TRUE
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Easy
Classification: Application
AACSB: Application of knowledge
79) Firms are interested in using data from discontinuous panels because they can gain insight into changes in consumers’ attitudes and behaviors.
Answer: FALSE
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
80) When the ratio of negative to positive comments on social media about the new Diet Pepsi was worse than is usually found with new products, PepsiCo conducted causal research to understand their consumers’ behavior.
Answer: TRUE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
81) If you want to change your GPA (independent variable), you must change certain dependent variables such as amount of time devoted to study, class attendance, reading your text, and listening while in class.
Answer: FALSE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
82) A field experiment involves manipulating the independent variable and measuring the dependent variable in a natural setting.
Answer: TRUE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Easy
Classification: Application
AACSB: Application of knowledge
83) An extraneous experiment involves manipulating the independent variable and measuring the dependent variable in an artificial setting contrived to control extraneous variables.
Answer: FALSE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
84) Laboratory experiments are desirable when the intent of the experiment is to achieve high levels of internal validity.
Answer: TRUE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Easy
Classification: Application
AACSB: Application of knowledge
85) Laboratory experiments allow the researcher to control the effects of extraneous variables, which is the primary advantage of laboratory experiments.
Answer: TRUE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Easy
Classification: Application
AACSB: Application of knowledge
86) The process that provides procedures for devising an experimental setting-such that a change in a dependent variable may be attributed solely to the change in the independent variable-is called experimental design.
Answer: TRUE
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
87) The phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting is test marketing.
Answer: TRUE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
88) The disadvantages of test marketing are infallibility, cost, exposure of the product or service to competition, and ethical issues.
Answer: FALSE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
89) Determining the sales potential for a new product or service is the only use of test markets.
Answer: TRUE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
90) Test marketing allows for the most accurate method of forecasting future sales, and it allows firms the opportunity to pretest marketing-mix variables.
Answer: TRUE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
91) One of the major advantages to test marketing is the relative inexpensiveness since cost is usually spread over several cities.
Answer: TRUE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
92) Competitors get the opportunity to examine product prototypes and to see the planned marketing strategy for the new product via the test market.
Answer: TRUE
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
93) Discuss research design as a master plan and also why knowledge of research design is important.
Answer: Answers should state that research design refers to a master plan that specifies the methods that will be used to collect and analyze the information needed for a research project. Comments should include that the knowledge of research design is important in developing an appropriate study to approach a problem or opportunity. Researchers need to understand that even though every problem and research objective may seem unique, there are usually enough similarities among problems and objectives to allow him or her to make some decisions in advance about the best research design to use to resolve the problem. This means researchers can group or classify seemingly diverse types of research projects well enough to predetermine the most appropriate research design. Discussion might include a statement to the effect that knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning.
LO: 4:1: What research design is and why it is important
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
94) Research designs are classified into three traditional categories: exploratory, descriptive, and causal. Explain each type of these traditional research designs and list one example of each.
Answer: Answers should demonstrate a clear understanding of the difference among exploratory, descriptive, and causal research categories. In addition, each category should be defined and clearly explained. Students might define exploratory research unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. Descriptive research might be defined as research used to gain background information, to define terms, to clarify problems and hypotheses, and to establish research priorities. Students may explain causal research as that which is used to measure causality in relationships, such as “if x, then y.” Examples may be those mentioned in the text or those that the student draws from personal experience.
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Easy
Classification: Application
AACSB: Application of knowledge
95) Discuss at least three of the six primary areas of potential ethical issues that may arise in the potential for researchers to take advantage of clients in the research design process.
Answer: Discussion should state that in most cases, professionals know more about their field than the clients who hire them. However, that imbalance of knowledge can cause serious ethical issues. Answers will vary but should mention at least three of the six primary areas of potential ethical concern 1. Recommending a costlier design than needed; 2. Designing a study in which data are collected for multiple clients; 3. Using information obtained for another client in another research project; 4. Over or underestimating data collection costs; 5. Wrongfully gaining respondent cooperation to reduce costs; 6. Misrepresenting sampling methods.
LO: 4:2: The three major types of research design: exploratory, descriptive, and causal
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
96) Discuss under which circumstances and conditions a researcher would choose exploratory research versus using descriptive research.
Answer: Answers should include a statement to the effect that selecting the appropriate research design depends, to a large extent, on the research objectives and existing information about the problem. Comments may state that exploratory research is used in a number of situations: to gain background information, to define terms, to clarify problems and hypotheses, and to establish research priorities. Answers may explain that exploratory research, particularly secondary data analysis, can be conducted efficiently through online and library resources. Answers may add that compared to collecting primary data (through descriptive research), exploratory research is inexpensive. Finally, exploratory research can often provide information that meets the research objectives or can assist in gathering current information necessary to conduct either a descriptive or causal design. Few researchers embark on a research project without first beginning with exploratory research.
LO: 4:3: How exploratory research design helps the researcher gain understanding of a problem
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
97) Descriptive research is undertaken to collect data to examine the characteristics of consumers and/or markets. Discuss the fundamental types of questions addressed by descriptive research and the different types of descriptive research.
Answer: Descriptive research is undertaken to describe answers to questions of who, what, where, when, and how: when we wish to know who our customers are, what brands they buy and in what quantities, where they buy the brands, when they shop, and how they found out about our products. Two basic descriptive research studies are available to the marketing researcher: cross-sectional and longitudinal. Cross-sectional studies measure units from a sample of the population at only one point in time. Longitudinal studies repeatedly measure the same sample units of a population over a period of time.
LO: 4:4: The fundamental questions addressed by descriptive research and the different types of descriptive research
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
98) Discuss causal research and why studies of the “if-then” variety are considered to be causal studies.
Answer: Comments might include a statement that understanding what causes consumers to behave as they do is extremely difficult. Nevertheless, there is a high payoff in the marketplace for even partially understanding causal relationships. Answers could state that: Causal research is used to measure causality in relationships, such as “if x, then y.” Causality is a condition in which one or more variables affect one or more other variables. When conducting causal research, “if-then” statements become our way of manipulating variables of interest. Comments may observe that marketing managers are always trying to determine what will cause a change in consumer satisfaction, a gain in market share, an increase in website visits, or an increase in sales. Advanced answers will add that causal relationships are examined through the use of experiments, which are special types of studies.
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Moderate
Classification: Application
AACSB: Application of knowledge
99) Define and discuss experimental design as well as the two types of experiments. Discuss the advantages and disadvantages of both types.
Answer: Students should be able to define clearly experimental design as a procedure for devising an experimental setting so that a change in a dependent variable may be attributed solely to the change in an independent variable. Students should be able to state that there are two basic types of experiments: laboratory and field. Comments should explain laboratory experiments as those in which one or more independent variables are manipulated, and measures of the dependent variable are taken in an artificial setting for the purpose of controlling all extraneous variables that may affect the dependent variable. Answers will note that there are advantages to laboratory experiments. First, they allow the researcher to control for the effects of extraneous variables. Second, compared to field experiments, lab experiments may be conducted quickly and with less expense. The disadvantage of laboratory experiments is the lack of a natural setting and, therefore, the concern that the findings do not generalize to the real world.
Students should discuss field experiments like those in which the independent variables are manipulated, and the measurements of the dependent variable are taken in their natural setting. Additional discussion may add that the primary advantage of the field experiment is that of conducting the study in a naturalistic setting, thus increasing the likelihood that the study’s findings will also hold true in the real world. Comments will note that field experiments, however, are expensive and time-consuming. Also, the experimenter must always be alert to the impact of extraneous variables, which are difficult to control in the natural settings of field experimentation.
LO: 4:5: What is meant by causal research and to describe types of experimental research designs
Diff: Difficult
Classification: Application
AACSB: Application of knowledge
100) Test markets can be classified into four types: standard, controlled, electronic, and simulated. Define test marketing and discuss all four types and give an example of how each type would be used.
Answer: Answers should include some variation of a general discussion of test marketing as follows: Test marketing is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting. Companies may use one or several test-market cities, which are selected geographical areas in which to conduct the test. Answers will note two broad classes of uses of test markets: (1) to test the sales potential for a new product or service, and (2) to test variations in the marketing mix for a product or service. Students should clearly identify and differentiate between the four types of test markets. A standard test market will be defined as one in which the firm tests the product or marketing-mix variables through the company’s normal distribution channels. A controlled test market is one that is conducted by outside research firms that guarantee distribution of the product through pre-specified types and numbers of distributors. Answers should note that an electronic test market is one in which a panel of consumers has agreed to carry identification cards that each consumer presents when buying goods and services. Finally, a simulated test market (STM) is one in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume. Students may use examples from their personal experience or those mentioned in the text.
LO: 4:6: The different types of test marketing and how to select test-market cities
Diff: Easy
Classification: Application
AACSB: Application of knowledge
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