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Marketing Research An Applied Orientation 6th Edition by Naresh K Malhotraw folder – Test Bank

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Marketing Research An Applied Orientation 6th Edition by Naresh K Malhotraw folder – Test Bank

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Marketing Research: An Applied Orientation, 6e (Malhotra)

Chapter 2   Defining the Marketing Research Problem and Developing an Approach

 

1) Problem definition is the most important step in the marketing research project.

Answer:  TRUE

Diff: 1             Page Ref: 36

LO :  1

 

2) Better communication and more involvement in problem definition are the most frequently mentioned ways of improving the usefulness of research.

Answer:  TRUE

Diff: 2             Page Ref: 37

LO :  2

 

3) The organizational status of the researcher or the research department may make it easy to reach the key DM in the early stages of the project.

Answer:  FALSE

Diff: 3             Page Ref: 37-39

AACSB:  Communication

LO :  2

 

4) The problem audit provides a useful framework for interacting with the researcher and identifying the underlying causes of the problem.

Answer:  FALSE

Diff: 2             Page Ref: 38-39

AACSB:  Communication

LO :  2

 

5) DMs tend to focus on symptoms rather than causes.

Answer:  TRUE

Diff: 1             Page Ref: 39

AACSB:  Communication

LO :  2

 

6) “The DM and the researcher must interact continually rather than sporadically” is an explanation of one of the 7 Cs known as continuity.

Answer:  TRUE

Diff: 1             Page Ref: 40

AACSB:  Communication

LO :  2

 

7) The purpose of interviewing experts is to help define the marketing research problem rather than to develop a conclusive solution.

Answer:  TRUE

Diff: 2             Page Ref: 40

AACSB:  Communication

LO :  2

 

8) Analysis of available secondary data is a non-essential step in the problem definition process.

Answer:  FALSE

Diff: 2             Page Ref: 41

LO :  2

9) Information obtained from the DM, industry experts, and secondary data may not be sufficient to define the research problem.

Answer:  TRUE

Diff: 1             Page Ref: 41

LO :  2

 

10) To understand the background of a marketing research problem, the researcher must understand the client’s firm and industry.

Answer:  TRUE

Diff: 1             Page Ref: 43

LO :  3

 

11) Past information and forecasts of trends with respect to sales, market share, profitability, technology, population, demographics, and lifestyle can help the researcher understand the underlying marketing research problem.

Answer:  TRUE

Diff: 2             Page Ref: 43

LO :  3

 

12) Where appropriate, analysis of past information and forecasts of trends should be carried out at the firm’s department level.

Answer:  FALSE

Diff: 2             Page Ref: 43

LO :  3

 

13) In instances where the resources are too limited to allow a high-quality project, the firm should be advised not to undertake formal marketing research.

Answer:  TRUE

Diff: 2             Page Ref: 44

LO :  3

 

14) “The number and geographical location of the buyers and non-buyers” is a factor that should be considered in the “objectives” component of the environmental context of the problem.

Answer:  FALSE

Diff: 3             Page Ref: 45

LO :  3

 

15) The economic environment includes public policies, laws, government agencies, and pressure groups that influence and regulate various organizations and individuals in society.

Answer:  FALSE

Diff: 3             Page Ref: 46

LO :  3

 

16) The economic environment component of the environmental context is comprised of purchasing power, gross income, disposable income, discretionary income, prices, savings, credit availability, and general economic conditions.

Answer:  TRUE

Diff: 2             Page Ref: 46

LO :  3

17) The marketing research problem asks what the DM needs to do, whereas the management decision problem asks what information is needed and how it can best be obtained (Table 2.1 in the text).

Answer:  FALSE

Diff: 2             Page Ref: 47

AACSB:  Reflective Thinking

LO :  4

 

18) The management decision problem is action oriented.

Answer:  TRUE

Diff: 1             Page Ref: 48

LO :  4

 

19) The marketing research problem is information oriented.

Answer:  TRUE

Diff: 1             Page Ref: 48

LO :  4

 

20) To properly identify the marketing research problem, it is best to state the problem in narrow, specific terms and identify its broad concepts.

Answer:  FALSE

Diff: 2             Page Ref: 49

AACSB:  Reflective Thinking

LO :  5

 

21) The second part of the marketing research problem definition is specific components. The specific components focus on the key aspects of the problem and provide clear guidelines on how to proceed further.

Answer:  TRUE

Diff: 2             Page Ref: 49

AACSB:  Reflective Thinking

LO :  5

 

22) Verbal, graphical, and mathematical models depict the same phenomenon or theoretical framework in different ways.

Answer:  TRUE

Diff: 2             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

23) Graphical models are analytical models that provide a visual picture of the relationships between variables.

Answer:  TRUE

Diff: 2             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

24) Research questions ask what general information is required with respect to the problem components.

Answer:  FALSE

Diff: 3             Page Ref: 52-53

AACSB:  Analytic Skills

LO :  6

25) Hypotheses go beyond research questions because they are statements of relationships or propositions rather than merely questions to which answers are sought.

Answer:  TRUE

Diff: 2             Page Ref: 53

AACSB:  Analytic Skills

LO :  6

 

26) Being too familiar with the environmental factors of the country where the research is being conducted can greatly increase the difficulty of understanding the problem’s environmental context and uncovering its causes.

Answer:  FALSE

Diff: 2             Page Ref: 56

AACSB:  Multicultural and Diversity

LO :  7

 

27) SPSS can be used to perform forecasts and “what-if” analyses to help the researcher in isolating the underlying causes, identifying the relevant variables that should be investigated, and formulating appropriate research questions and hypotheses.

Answer:  TRUE

Diff: 2             Page Ref: 59

AACSB:  Use of IT

LO :  1

 

28) In the example given in your text, the Harley Davidson management decision problem and the marketing research problem were defined with the help of all of the following except ________.

  1. A) discussions with industry experts
  2. B) discussions with a committee of top management
  3. C) secondary data on motorcycle owners
  4. D) focus groups with motorcycle owners

Answer:  B

Diff: 3             Page Ref: 35-36

AACSB:  Reflective Thinking

LO :  2

 

29) According to the Chain Restaurant Study in your text, the researcher had collected data but did not know ________.

  1. A) the marketing research problem
  2. B) the management decision problem
  3. C) the data collection process
  4. D) the approach to the problem

Answer:  A

Diff: 2             Page Ref: 37

LO :  1

30) The ________ is a broad statement of the general problem and identification of the specific components of the marketing research problem.

  1. A) problem audit
  2. B) management problem
  3. C) problem definition
  4. D) none of the above

Answer:  C

Diff: 2             Page Ref: 37

LO :  1

 

31) According to the problem definition and approach development process as shown in Figure 2.1 in the text, the tasks involved in problem definition consist of all of the following except ________.

  1. A) discussions with the decision makers
  2. B) interviews with industry experts
  3. C) analysis of project costs
  4. D) analysis of secondary data

Answer:  C

Diff: 3             Page Ref: 38

LO :  1

 

32) According to Figure 2.1 in the text, the components of the ________ consist of: objective/theoretical foundations, analytical models, research questions, hypotheses, and specification of the information needed.

  1. A) approach to the problem
  2. B) management decision problem
  3. C) marketing research problem
  4. D) environmental context of the problem

Answer:  A

Diff: 3             Page Ref: 38

LO :  1

 

 

33) The need for the researcher to understand the nature of what decision managers face and what they hope to learn from research is one of the reasons to conduct ________.

  1. A) discussions with decision makers
  2. B) interview with experts
  3. C) secondary data analysis
  4. D) qualitative research

Answer:  A

Diff: 3             Page Ref: 38

AACSB:  Communication

LO :  2

34) To identify the management problem, the researcher must possess considerable skill in interacting with the DM.  Which of the following is a factor that might complicate this interaction?

  1. A) Access to the DM may be difficult and some organizations have complicated protocols for access to top executives.
  2. B) The organizational status of the researcher or the research department may make it difficult to reach the key DM in the early stages of the project.
  3. C) There may be more than one key DM and meeting with them collectively or individually may be difficult.
  4. D) All of the above are correct.

Answer:  D

Diff: 3             Page Ref: 38-39

AACSB:  Communication

LO :  2

 

35) The ________ provides a useful framework for interacting with the DM and identifying the underlying causes of the problem.

  1. A) problem audit
  2. B) management problem
  3. C) problem definition
  4. D) none of the above

Answer:  A

Diff: 2             Page Ref: 38

LO :  2

 

36) The ________ is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature.

  1. A) problem audit
  2. B) management problem
  3. C) problem definition
  4. D) none of the above

Answer:  A

Diff: 2             Page Ref: 38

LO :  2

 

 

37) It is important to perform a problem audit because ________.

  1. A) the DM knows the cause of the problem
  2. B) DMs tend to focus on symptoms rather than on causes
  3. C) the DM, in most cases, has only a vague idea of what the problem is
  4. D) both B and C are correct

Answer:  D

Diff: 2             Page Ref: 39

LO :  2

38) The interaction between the DM and the researcher should be characterized by the seven Cs.  Which of the following is not one of the seven Cs?

  1. A) continuity
  2. B) communication
  3. C) causality
  4. D) candor

Answer:  C

Diff: 2             Page Ref: 40

AACSB:  Communication

LO :  2

 

39) As one of the seven Cs that characterize the interaction between the DM and the researcher, confidence is best defined as: ________.

  1. A) there should not be any hidden agendas, and an attitude of openness should prevail
  2. B) the interaction between the DM and the researcher should be guided by mutual trust
  3. C) marketing research is a team project in which both parties (DM and researcher) must cooperate
  4. D) the interaction between the DM and the researcher should be creative rather than formulaic

Answer:  B

Diff: 2             Page Ref: 40

AACSB:  Communication

LO :  2

 

40) Interviews with industry expertsindividuals knowledgeable about the firm and the industrymay help formulate the marketing research problem.  Which of the following statements is true about interviews with industry experts?

  1. A) These experts may be found both inside and outside the firm.
  2. B) Typically, expert information is obtained by unstructured personal interviews without administering a formal questionnaire.
  3. C) It is helpful to prepare a list of topics to be covered during the interview.
  4. D) All of the above are true.

Answer:  D

Diff: 2             Page Ref: 40-41

AACSB:  Communication

LO :  2

 

 

41) Because of potential difficulties when seeking advice from experts, it is best to use interviews with experts when conducting marketing research ________.

  1. A) for industrial firms
  2. B) for products of a technical nature
  3. C) in situations where little information is available from other sources
  4. D) all of the above

Answer:  D

Diff: 3             Page Ref: 40

AACSB:  Communication

LO :  2

42) Which of the following statements about secondary data is true?

  1. A) Secondary data are originated by the researcher for the specific purpose of addressing the research problem at hand.
  2. B) Secondary data are an economical and quick source of background information.
  3. C) Primary data should not be collected until the available secondary data have been fully analyzed.
  4. D) Both B and C are true.

Answer:  D

Diff: 1             Page Ref: 41

LO :  2

 

43) ________ is an unstructured, exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting.

  1. A) Primary research
  2. B) Qualitative research
  3. C) Secondary research
  4. D) Quantitative research

Answer:  B

Diff: 2             Page Ref: 41-42

LO :  2

 

44) ________ is not a qualitative research technique.

  1. A) Depth interview
  2. B) Word association
  3. C) Focus group
  4. D) Conclusive research

Answer:  D

Diff: 2             Page Ref: 41-42

LO :  2

 

 

45) ________ consists of the factors that have an impact on the definition of the marketing research problem, including past information and forecasts, resources and constraints of the firm, objectives of the decision maker, buyer behavior, legal environment, economic environment, and marketing and technological skills of the firm.

  1. A) The approach to the problem
  2. B) Research design
  3. C) The environmental context of the problem
  4. D) Problem definition

Answer:  C

Diff: 2             Page Ref: 43

LO :  3

 

46) Many factors have an impact on the definition of the marketing research problem.  These factors encompass the environmental context of the problem.  Which of the following is not one of the factors?

  1. A) marketing and technological skills of the firm
  2. B) objectives
  3. C) past information and forecasts pertaining to the industry and the firm
  4. D) political environment

Answer:  D

Diff: 2             Page Ref: 43

LO :  3

47) To formulate a marketing research problem of appropriate scope, it is necessary to take into account both the resources available, such as money and research skills, and the constraints on the organization, such as cost and time.  These considerations refer to which of the factors related to the environmental context of the problem?

  1. A) resources and constraints
  2. B) buyer behavior
  3. C) legal environment
  4. D) economic environment

Answer:  A

Diff: 1             Page Ref: 44

LO :  3

 

48) Media consumption behavior and response to promotions, price sensitivity, and retail outlets patronized are factors that should be considered in the ________ component of the environmental context of the problem.

  1. A) objectives
  2. B) legal environment
  3. C) economic environment
  4. D) buyer behavior

Answer:  D

Diff: 2             Page Ref: 45

LO :  3

 

 

49) The “Got Milk?” campaign sponsored by the California Milk Processor Board and mentioned in your text, used an understanding of ________ to identify the real causes that led to the decline in milk consumption.

  1. A) objectives
  2. B) the legal environment
  3. C) the economic environment
  4. D) buyer behavior

Answer:  D

Diff: 3             Page Ref: 46

LO :  3

 

50) Regulatory policies and norms within which organizations must operate, refer to the ________ factor of the environmental context of the problem.

  1. A) legal environment
  2. B) economic environment
  3. C) objectives
  4. D) buyer behavior

Answer:  A

Diff: 2             Page Ref: 46

LO :  3

51) ________ is the problem confronting the decision maker.  It asks what the decision maker needs to do.

  1. A) The environmental context of the problem
  2. B) The management decision problem
  3. C) The marketing research problem
  4. D) Problem definition

Answer:  B

Diff: 1             Page Ref: 47

AACSB:  Reflective Thinking

LO :  4

 

52) ________ is a problem that entails determining what information is needed and how it can be obtained in the most feasible way.

  1. A) The environmental context of the problem
  2. B) The management decision problem
  3. C) The marketing research problem
  4. D) Problem definition

Answer:  C

Diff: 2             Page Ref: 47

AACSB:  Reflective Thinking

LO :  4

 

 

53) The management decision problem focuses on ________, while the marketing research problem focuses on ________.

  1. A) symptoms; solutions
  2. B) symptoms; underlying causes
  3. C) solutions; underlying causes
  4. D) none of the above

Answer:  B

Diff: 3             Page Ref: 48

AACSB:  Reflective Thinking

LO :  4

 

54) Based on Table 2.1 in the text, which statement is true about the management decision problem?

  1. A) It asks what information is needed and how it should be obtained.
  2. B) It is information oriented.
  3. C) It asks what the decision maker needs to do.
  4. D) It focuses on the underlying causes.

Answer:  C

Diff: 1             Page Ref: 48

AACSB:  Reflective Thinking

LO :  4

 

55) Based on Table 2.1 in the text, which statement is true about the marketing research problem?

  1. A) It focuses on underlying causes.
  2. B) It focuses on symptoms.
  3. C) It is information oriented.
  4. D) Both A and C are correct.

Answer:  D

Diff: 2             Page Ref: 48

AACSB:  Reflective Thinking

LO :  4

56) If the management decision problem is: “Should a new product be introduced?” what is the most appropriate marketing research problem?

  1. A) determining the price elasticity of demand and the impact on sales and profits of various levels of price changes
  2. B) determining consumer preferences and purchase intentions for the proposed new product
  3. C) determining the effectiveness of the current advertising campaign
  4. D) determining the impact of new distribution outlets

Answer:  B

Diff: 2             Page Ref: 48

AACSB:  Reflective Thinking

LO :  4

 

 

57) Which statement is true concerning defining the marketing research problem?

  1. A) The definition should allow the researcher to obtain all the information needed to address the management decision problem.
  2. B) The definition should guide the researcher in proceeding with the project.
  3. C) The marketing research problem should be stated in broad, general terms with specific components identified.
  4. D) All of the above are correct.

Answer:  D

Diff: 2             Page Ref: 49

AACSB:  Reflective Thinking

LO :  5

 

58) The outputs of the approach development process should include all of the following components except ________.

  1. A) objective/theoretical framework
  2. B) analytical models
  3. C) hypotheses
  4. D) all of the above

Answer:  D

Diff: 3             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

59) A conceptual scheme based on foundational statements called axioms, which are assumed to be true, is ________.

  1. A) objective evidence
  2. B) a theory
  3. C) an analytical model
  4. D) none of the above

Answer:  B

Diff: 3             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

60) Unbiased evidence that is supported by empirical findings is ________.

  1. A) objective evidence
  2. B) a theory
  3. C) an analytical model
  4. D) none of the above

Answer:  A

Diff: 2             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

 

61) In the process of developing an approach, research should be based on objective evidence and supported by theory.  A theory ________.

  1. A) serves as a foundation on which the researcher can organize and interpret the findings
  2. B) also plays a vital role in influencing the research procedures adopted in basic research
  3. C) is incomplete
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

62) The researcher should rely on ________ to determine which variables should be investigated.

  1. A) objective evidence
  2. B) theory
  3. C) an analytical model
  4. D) all of the above

Answer:  D

Diff: 3             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

63) A(n) ________ is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process.

  1. A) mathematical model
  2. B) graphical model
  3. C) verbal model
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 51

AACSB:  Analytic Skills

LO :  6

 

64) ________ are refined statements of the specific components of the problem.

  1. A) Hypotheses
  2. B) Research questions
  3. C) Marketing research problems
  4. D) Analytical models

Answer:  B

Diff: 3             Page Ref: 52

AACSB:  Analytic Skills

LO :  6

 

65) Which statement about hypotheses is not true?

  1. A) A hypothesis is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher.
  2. B) Hypotheses are declarative and can be tested empirically.
  3. C) It is possible to formulate hypotheses in all situations.
  4. D) An important role of a hypothesis is to suggest variables to be included in the research design.

Answer:  C

Diff: 3             Page Ref: 53-54

AACSB:  Analytic Skills

LO :  6

 

66) Before defining the problem, the researcher must isolate and examine the impact of the self-reference criterion (SRC), or the unconscious reference to one’s own cultural values. Which of the following steps does not help researchers account for environmental and cultural differences when defining the problem in an international marketing context?

  1. A) Define the marketing research problem in terms of domestic environmental and cultural factors. This involves an identification of relevant American (domestic country) traits, economics, values, needs, or habits.
  2. B) Define the marketing research problem in terms of foreign environmental and cultural factors. Make no judgments. This involves an identification of the related traits, economics, values, needs, or habits in the proposed market culture. This task requires input from researchers familiar with the foreign environment.
  3. C) Isolate the self-reference criterion (SRC) influence on the problem and examine it carefully to see how it complicates the problem.
  4. D) All of the above are correct.

Answer:  D

Diff: 3             Page Ref: 56

AACSB:  Multicultural and Diversity

LO :  7

 

67) Ethical issues arise if the process of defining the problem and developing an approach is compromised by the personal agendas of the client (DM) or the researcher.  Which of these statements concerning ethics in marketing research is not true?

  1. A) The DM has the obligation to be candid and disclose to the researcher all the relevant information that will enable a proper definition of the marketing research problem.
  2. B) The researcher is ethically bound to offer the most expensive set of services to each client.
  3. C) The problem definition process is adversely affected when the DM has hidden objectives such as gaining a promotion.
  4. D) The researcher is ethically bound to define the problem so as to further the best interest of the client, rather than the interest of the research firm.

Answer:  B

Diff: 2             Page Ref: 57-58

AACSB:  Ethical Reasoning

LO :  8

 

68) Which of the following ethical issues is/are pertinent in developing an approach?

  1. A) When a client solicits proposals, not with the intent of subcontracting the research, but with the intent of gaining the expertise of research firms without pay, an ethical breach has occurred.
  2. B) The research firm has the ethical obligation to develop an appropriate approach.
  3. C) Proprietary models and approaches developed by a research firm are the property of that firm and should not be reused by the client in subsequent studies without the permission of the research firm.
  4. D) All of the issues are pertinent.

Answer:  D

Diff: 2             Page Ref: 57-58

AACSB:  Ethical Reasoning

LO :  8

 

69) Briefly discuss problem definition and why it is the most important task in the marketing research project.

Answer:  Problem definition involves stating the general problem and identifying the specific components of the marketing research problem. Only when the marketing research problem has been clearly defined can research be designed and conducted properly. Of all the tasks in a marketing research project, none is more vital to the ultimate fulfillment of a client’s needs than a proper definition of the research problem. All the effort, time, and money spent from this point on will be wasted if the problem is misunderstood or ill defined.

Diff: 2             Page Ref: 37

AACSB:  Reflective Thinking

LO :  1

 

70) The problem audit involves discussions with the DM on numerous issues.  List and elaborate on these issues.

Answer:

  1. The events that led to the decision that action is needed, or the history of the problem
  2. The alternative courses of action available to the DM, the set of alternatives may be incomplete at this stage, and qualitative research may be needed to identify the more innovative courses of action
  3. The criteria that will be used to evaluate the alternative courses of action; for example, new product offerings might be evaluated on the basis of sales, market share, profitability, return on investment, and so forth
  4. The potential actions that are likely to be suggested based on the research findings
  5. The information that is needed to answer the DM’s questions
  6. The manner in which the DM will use each item of information in making the decision
  7. The corporate culture as it relates to decision making; in some firms, the decision making process is dominant; in others, the personality of the DM is more important. Awareness of corporate culture may be one of the most important factors that distinguishes researchers who affect strategic marketing decisions from those who do not.

Diff: 3             Page Ref: 38-39

AACSB:  Reflective Thinking

LO :  2

 

71) A problem audit, which involves extensive interaction between the DM and the researcher, can greatly facilitate problem definition by determining the underlying causes. The interaction between the researcher and the DM is facilitated when one or more people in the client organization serve as a liaison and form a team with the marketing researcher. In order to be fruitful, the interaction between the DM and the researcher should be characterized by the seven Cs.  List and describe the seven Cs.

Answer:

  1. Communication. Free exchange of ideas between the DM and researcher is essential.
  2. Cooperation. Marketing research is a team project in which both parties (DM and researcher) must cooperate.
  3. Confidence. The interaction between the DM and the researcher should be guided by mutual trust.
  4. Candor. There should not be any hidden agendas, and an attitude of openness should prevail.
  5. Closeness. Feelings of warmth and closeness should characterize the relationship between the DM and the researcher.
  6. Continuity. The DM and the researcher must interact continually rather than sporadically.
  7. Creativity. The interaction between the DM and the researcher should be creative rather than formulaic.

Diff: 3             Page Ref: 40

AACSB:  Communication

LO :  2

 

72) Discuss the two potential difficulties that may arise when seeking advice from experts.

Answer:  1.      Some individuals who claim to be knowledgeable and are eager to participate may not really possess expertise.

  1. It may be difficult to locate and obtain the help from experts who are outside the client organization.

 

For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.

Diff: 2             Page Ref: 40

AACSB:  Communication

LO :  2

 

73) Explain the structure of a well-defined marketing research problem, including the broad statement and the specific components.

Answer:  The general rule to be followed in defining the marketing research problem is that the definition should (1) allow the researcher to obtain all the information needed to address the management decision problem, and (2) guide the researcher in proceeding with the project. Researchers make two common errors in problem definition. The first arises when the research problem is defined too broadly. A broad definition does not provide clear guidelines for the subsequent steps involved in the project. Some examples of overly broad marketing research problem definitions are: (1) developing a marketing strategy for the brand, (2) improving the competitive position of the firm, or (3) improving the company’s image. These are not specific enough to suggest an approach to the problem or a research design.

 

The second type of error is just the opposite: the marketing research problem is defined too narrowly. A narrow focus may preclude consideration of some courses of action, particularly those that are innovative and may not be obvious. It may also prevent the researcher from addressing important components of the management decision problem.

 

The likelihood of committing either type of error in problem definition can be reduced by stating the marketing research problem in broad, general terms and identifying its specific components (see Figure 2.3 in the text). The broad statement provides perspective on the problem and acts as a safeguard against committing the second type of error. The specific components focus on the key aspects of the problem and provide clear guidelines on how to proceed further, thereby reducing the likelihood of the first type of error.

Diff: 3             Page Ref: 49

AACSB:  Reflective Thinking

LO :  5

 

74) Explain the concept of an analytical model and discuss the different forms of analytical models.  Using the marketing scenario of your choice, provide an example of each model.  Each model should depict the same scenario.

Answer:  An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process.  Models can have many different forms.  The most common are verbal, graphical, and mathematical structures.  In verbal models, the variables and their relationships are stated in prose form.  Such models may be mere restatements of the main tenets of a theory.  Graphical models are visual.  They are used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results.  Mathematical models explicitly specify the relationships among variables, usually in equation form.  These models can be used as guides for formulating the research design and have the advantage of being amenable to manipulation.

 

The student should provide their own examples of each model.  An example of using the three types of models in the context of the department store project is shown in Chapter 2 of the text.

Diff: 3             Page Ref: 51-52

AACSB:  Analytic Skills

LO :  6

 

Chapter 4   Exploratory Research Design: Secondary Data

 

1) Secondary data are originated by a researcher for the specific purpose of addressing the problem at hand.

Answer:  FALSE

Diff: 1             Page Ref: 100

LO :  1

 

2) Primary data are data that have already been collected for purposes other than the problem at hand.

Answer:  FALSE

Diff: 1             Page Ref: 100

AACSB:  Analytic Skills

LO :  1

 

3) As compared to primary data, secondary data are collected rapidly and easily, at a relatively low cost, and in a short time.

Answer:  TRUE

Diff: 1             Page Ref: 100

AACSB:  Reflective Thinking

LO :  1

 

4) Examination of available primary data is a prerequisite to the collection of secondary data.

Answer:  FALSE

Diff: 2             Page Ref: 101

LO :  1

 

5) Secondary data can help you develop an approach to the problem, answer certain research questions and test some hypotheses, and interpret primary data more insightfully.

Answer:  TRUE

Diff: 2             Page Ref: 101

LO :  2

 

6) It is easy to evaluate the accuracy of secondary data because the researcher did participate in the research.

Answer:  FALSE

Diff: 1             Page Ref: 101-104

LO :  3

 

7) One of the problems when evaluating secondary data is that the data may be updated too frequently for the purpose of the problem at hand.

Answer:  FALSE

Diff: 1             Page Ref: 101-104

LO :  3

 

 

8) Data collected with a specific objective in mind is always appropriate in another situation.

Answer:  FALSE

Diff: 2             Page Ref: 101-104

AACSB:  Analytic Skills

LO :  3

9) Secondary data may be measured in units that may not be appropriate for the current problem.

Answer:  TRUE

Diff: 2             Page Ref: 101-104

AACSB:  Analytic Skills

LO :  3

 

10) It is not possible to reconfigure the available data, for example, convert the units of measurements, so that the resulting data are more useful to the problem at hand.

Answer:  FALSE

Diff: 3             Page Ref: 101-104

AACSB:  Analytic Skills

LO :  3

 

11) Data published anonymously or in a form that attempts to hide the details of the data collection methodology and process should be viewed with suspicion.

Answer:  TRUE

Diff: 2             Page Ref: 101-104

AACSB:  Analytic Skills

LO :  3

 

12) Secondary data may be classified as either internal or extant.

Answer:  FALSE

Diff: 1             Page Ref: 105

LO :  4

 

13) Primary data should be the starting point in the search for external data.

Answer:  FALSE

Diff: 1             Page Ref: 105

AACSB:  Reflective Thinking

LO :  4

 

14) External data are those generated within the organization for which the research is being conducted.

Answer:  FALSE

Diff: 1             Page Ref: 105

LO :  4

 

15) Before collecting external secondary data, it is useful to analyze internal secondary data.

Answer:  TRUE

Diff: 1             Page Ref: 105

AACSB:  Reflective Thinking

LO :  4

 

16) Chrysler’s Personal Information Centers collect data from car owners on all aspects of buying a car.  These PICs give the company the ability to engage in customized marketing.  Chrysler is using internal secondary data in its database marketing efforts.

Answer:  TRUE

Diff: 2             Page Ref: 107

AACSB:  Reflective Thinking

LO :  4

17) Secondary internal data have two significant advantages.  They are easily available and inexpensive.

Answer:  TRUE

Diff: 1             Page Ref: 106

AACSB:  Reflective Thinking

LO :  4

 

18) Secondary internal sources of data are often not fully exploited by organizations.

Answer:  TRUE

Diff: 2             Page Ref: 106

LO :  4

 

19) Private sources update census data at a detailed geographic level for between-census years.

Answer:  TRUE

Diff: 2             Page Ref: 110

LO :  4

 

20) Directory databases provide information on individuals, organizations, and services.

Answer:  TRUE

Diff: 2             Page Ref: 109

LO :  4

 

21) Syndicated sources, also referred to as syndicated services, are companies that collect and sell common pools of data of known commercial value, designed to serve information needs shared by a number of clients.

Answer:  TRUE

Diff: 2             Page Ref: 113

LO :  5

 

22) Syndicated sources collect data for marketing research problems specific to individual clients.

Answer:  FALSE

Diff: 3             Page Ref: 113

LO :  5

 

 

23) Syndicated services data are not collected for the purpose of marketing research problems specific to individual clients.

Answer:  TRUE

Diff: 3             Page Ref: 113

LO :  5

 

24) Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions).

Answer:  TRUE

Diff: 2             Page Ref: 113

LO :  5

 

25) When institutions are the unit of measurement, the data may be obtained from retailers, wholesalers, or households.

Answer:  FALSE

Diff: 3             Page Ref: 113

LO :  5

26) A lifestyle may be defined as a distinctive pattern of living that is described by the activities people engage in, the interests they have, and the opinions they hold of themselves and the world around them (AIOs).

Answer:  TRUE

Diff: 2             Page Ref: 114

LO :  5

 

27) Surveys are the primary means of obtaining information about consumers’ motives, attitudes, and preferences.

Answer:  TRUE

Diff: 2             Page Ref: 115

LO :  5

 

28) The distinguishing feature of purchase and media panels is that the respondents record specific behaviors as they occur.

Answer:  TRUE

Diff: 2             Page Ref: 115

AACSB:  Reflective Thinking

LO :  5

 

29) Scanner data is obtained by passing merchandise over a laser scanner that reads the UPC code from the packages.

Answer:  TRUE

Diff: 1             Page Ref: 115

AACSB:  Use of IT

LO :  5

 

 

30) Scanner data have an obvious disadvantage over surveys and purchase panels, because they reflect purchasing behavior that is not subject to interviewing, recording, memory, or expert biases.

Answer:  FALSE

Diff: 2             Page Ref: 115

AACSB:  Use of IT

LO :  5

 

31) An advantage of scanner data is that in-store variables like pricing, promotions, and displays are part of the data set.

Answer:  TRUE

Diff: 2             Page Ref: 115

AACSB:  Use of IT

LO :  5

 

32) Audits can help consumer product firms determine the size of the total market and distribution of sales by type of outlet and by different regions.

Answer:  TRUE

Diff: 2             Page Ref: 115

AACSB:  Reflective Thinking

LO :  5

33) Financial, operating, and employment data are also collected by industry services’ syndicated research firms for one in 10 North American Industry Classification System (NAICS) industrial categories.

Answer:  FALSE

Diff: 3             Page Ref: 124

AACSB:  Reflective Thinking

LO :  5

 

34) The range and sources of syndicated data available for industrial goods firms are more limited than those available to consumer goods firms.

Answer:  TRUE

Diff: 2             Page Ref: 124

AACSB:  Reflective Thinking

LO :  5

 

35) Maps that solve marketing problems are called thematic maps.

Answer:  TRUE

Diff: 3             Page Ref: 125-126

LO :  7

 

36) Ethical issues also arise if the users of secondary data are unduly critical of the data that do not support their interests and viewpoints.

Answer:  TRUE

Diff: 2             Page Ref: 128

AACSB:  Ethical Reasoning

LO :  9

 

37) As compared to primary data, secondary data are collected ________.

  1. A) rapidly and easily
  2. B) at a relatively low cost
  3. C) in a short time
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 100

LO :  1

 

38) The ________ for primary data is very involved and the ________ is high.

  1. A) collection purpose; collection time
  2. B) collection process; collection cost
  3. C) collection process; collection purpose
  4. D) collection cost; collection time

Answer:  B

Diff: 2             Page Ref: 100

LO :  1

39) Which of the following is not a disadvantage of secondary data?

  1. A) The objectives, nature, and methods used to collect the secondary data may not be appropriate to the present situation.
  2. B) Secondary data may be lacking in accuracy.
  3. C) Secondary data may be expensive and time consuming.
  4. D) Secondary data may not be completely current or dependable.

Answer:  C

Diff: 2             Page Ref: 101

AACSB:  Reflective Thinking

LO :  2

 

40) Which of the following statements refer to the currency criteria when evaluating secondary data?

  1. A) Data should be reliable and generalizable to the problem at hand.
  2. B) Syndicated firms periodically update census data.
  3. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible.
  4. D) Assess accuracy by comparing data from different sources.

Answer:  B

Diff: 2             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

 

41) Which of the following statements refer to the objective criteria when evaluating secondary data?

  1. A) Data should be reliable and generalizable to the problem at hand.
  2. B) Syndicated firms periodically update census data.
  3. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible.
  4. D) Assess accuracy by comparing data from different sources.

Answer:  C

Diff: 1             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

42) Based on the criteria for evaluating secondary data shown in Table 4.2 in the text, the data collected by Nielsen Media Research may be suspect because of all of the following criteria except ________.

  1. A) specification/methodology
  2. B) error/accuracy
  3. C) objective
  4. D) dependability

Answer:  C

Diff: 2             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

43) Errors in the approach, research design, sampling, data collection, analysis, and reporting stages of the project refer to the ________ criteria for evaluating secondary data.

  1. A) nature
  2. B) objective
  3. C) error/accuracy
  4. D) currency

Answer:  C

Diff: 1             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

44) Which of the following statements is not true about the currency of secondary data?

  1. A) The time lag between data collection and publication may be long.
  2. B) The value of secondary data is diminished as it becomes dated.
  3. C) The data may not be updated frequently enough for the problem at hand.
  4. D) All of the above are correct.

Answer:  D

Diff: 1             Page Ref: 103

AACSB:  Analytic Skills

LO :  3

 

 

45) When evaluating secondary data, the ________ criteria asks the question of “why the data were collected in the first place.”

  1. A) nature
  2. B) objective
  3. C) error/accuracy
  4. D) currency

Answer:  B

Diff: 2             Page Ref: 103

AACSB:  Analytic Skills

LO :  3

 

46) If the key variables have not been defined or are defined in a manner inconsistent with the researcher’s definition, then the usefulness of the data is limited.  This statement refers to the ________ criteria for evaluating secondary data.

  1. A) nature
  2. B) objective
  3. C) error/accuracy
  4. D) currency

Answer:  A

Diff: 2             Page Ref: 104

AACSB:  Analytic Skills

LO :  3

47) You are reviewing secondary data to help with a project concerning consumer preferences for television programs based on viewer income. Which of the following statements would not be of concern when considering the nature criteria for evaluating secondary data?

  1. A) The relationships examined should be taken into account.
  2. B) Secondary data may be measured in units that may not be appropriate for the current problem.
  3. C) The researcher must determine if the data are accurate enough for the purpose of the present study.
  4. D) It is possible to reconfigure the available data so that the resulting data are more useful to the problem at hand.

Answer:  C

Diff: 3             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

48) An overall indication of the dependability of data may be obtained by examining the ________, credibility, reputation, and ________ of the source.

  1. A) accuracy; trustworthiness
  2. B) trustworthiness; expertise
  3. C) expertise; accuracy
  4. D) None of the above is correct.

Answer:  B

Diff: 3             Page Ref: 104

AACSB:  Analytic Skills

LO :  3

 

49) Which of the following classifications of secondary data is not a classification for external secondary data (Figure 4.1 in the text)?

  1. A) published materials
  2. B) computerized databases
  3. C) ready-to-use
  4. D) syndicated services

Answer:  C

Diff: 2             Page Ref: 105

LO :  4

 

50) Creating a marketing database involves all of the following steps except ________.

  1. A) transferring raw sales information to a microcomputer
  2. B) enhancing consumer purchase information by overlaying it with demographic and psychographic information
  3. C) analyzing information in terms of a customer’s activity over the life of the business relationship
  4. D) none of the above

Answer:  D

Diff: 3             Page Ref: 106-107

AACSB:  Reflective Thinking

LO :  4

51) The CRM system used by Chrysler is an example of ________.

  1. A) directory databases
  2. B) database marketing
  3. C) audits
  4. D) none of the above

Answer:  B

Diff: 2             Page Ref: 107

AACSB:  Reflective Thinking

LO :  4

 

52) Caterpillar needed to know what truck fleets should test their two new engines; how they could get a marketing strategy that could be measured; and how to adjust for the coming downturn in sales.  To answer these questions, they gave their salesforce laptops and paid them to enter customer information related to each sale they made.  Caterpillar analyzed the newly acquired customer data and developed strategies to address their marketing questions.  Caterpillar utilized ________.

  1. A) secondary marketing
  2. B) external marketing
  3. C) database marketing
  4. D) internal marketing

Answer:  C

Diff: 2             Page Ref: 107-108

AACSB:  Reflective Thinking

LO :  4

 

 

53) ________ are an excellent source of standard or recurring information.

  1. A) Directories
  2. B) Indexes
  3. C) Guides
  4. D) Statistical published data

Answer:  C

Diff: 2             Page Ref: 109

LO :  4

 

54) Published external secondary data sources may be broadly classified as ________ or ________ sources (Figure 4.2 in the text).

  1. A) public business; government
  2. B) general business; government
  3. C) general business; federal
  4. D) public business; federal

Answer:  B

Diff: 2             Page Ref: 108

LO :  4

 

55) ________ are helpful for identifying individuals or organizations that collect specific data.

  1. A) Directories
  2. B) Indexes
  3. C) Guides
  4. D) Statistical published data

Answer:  A

Diff: 2             Page Ref: 109

LO :  4

56) It is possible to locate information on a particular topic in several different publications by using ________.

  1. A) directories
  2. B) indexes
  3. C) guides
  4. D) statistical published data

Answer:  B

Diff: 2             Page Ref: 109

LO :  4

 

57) Examples of other government publications published by the federal government include all of the following except ________.

  1. A) Periodical Abstract
  2. B) Business Conditions Digest
  3. C) Statistical Abstract of the United States
  4. D) Survey of Current Business

Answer:  A

Diff: 3             Page Ref: 110

LO :  4

 

58) ________ are databases stored in computers that require a telecommunications network to access.

  1. A) Offline databases
  2. B) Bibliographic databases
  3. C) Online databases
  4. D) Special purpose databases

Answer:  C

Diff: 2             Page Ref: 111

LO :  4

 

59) You are researching secondary data on the shopping habits of households for your project.  A marketing research firm that had done research in the area has agreed to allow you to dial into their mainframe computer to access the data.  You will be accessing a(n) ________.

  1. A) online database
  2. B) special purpose database
  3. C) offline database
  4. D) customer database

Answer:  A

Diff: 3             Page Ref: 111

AACSB:  Reflective Thinking

LO :  4

60) You are researching secondary data on the shopping habits of households for your project.  You found a data source available via CD-ROM at the library.  You are about to check out a(n) ________.

  1. A) online database
  2. B) internet database
  3. C) offline database
  4. D) customer database

Answer:  C

Diff: 2             Page Ref: 111

AACSB:  Reflective Thinking

LO :  4

 

61) ________ are databases composed of citations to articles in journals, magazines, newspapers, marketing research studies, technical reports, government documents, and the like.

  1. A) Offline databases
  2. B) Bibliographic databases
  3. C) Online databases
  4. D) Internet databases

Answer:  B

Diff: 2             Page Ref: 112

LO :  4

 

 

62) InfoUSA (www.infousa.com) is a leading provider of sales and marketing support data.  InfoUSA provides data via a ________.

  1. A) offline database
  2. B) bibliographic database
  3. C) online database
  4. D) internet database

Answer:  D

Diff: 2             Page Ref: 112

LO :  4

 

63) ________ databases provide information on individuals, organizations and services.

  1. A) Special purpose
  2. B) Bibliographic
  3. C) Directory
  4. D) Numeric

Answer:  C

Diff: 2             Page Ref: 112

LO :  4

 

64) Which of the following is a disadvantage of audit services (Table 4.3 in the text)?

  1. A) interviewer errors; respondent errors
  2. B) data is lacking in terms of content, quantity, and quality
  3. C) data may not be representative; quality of data limited
  4. D) coverage may be incomplete; matching of data on the competitive activity may be difficult

Answer:  D

Diff: 3             Page Ref: 115

AACSB:  Reflective Thinking

LO :  5

65) Which of the following is a disadvantage of surveys (Table 4.3 in the text)?

  1. A) interviewer errors; respondent errors
  2. B) data is lacking in terms of content, quantity, and quality
  3. C) data may not be representative; quality of data limited
  4. D) coverage may be incomplete; matching of data on the competitive activity may be difficult

Answer:  A

Diff: 3             Page Ref: 115

AACSB:  Reflective Thinking

LO :  5

 

 

66) Which of the following is a characteristic of purchase panels (Table 4.3 in the text)?

  1. A) household purchases recorded through electronic scanners in supermarkets
  2. B) households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur
  3. C) verification of product movement by examining physical records or performing inventory analysis
  4. D) data banks on industrial establishment created through direct inquiries of companies, clipping services, and corporate reports

Answer:  B

Diff: 2             Page Ref: 115

AACSB:  Reflective Thinking

LO :  5

 

67) Which of the following is a characteristic of audit services (Table 4.3 in the text)?

  1. A) household purchases recorded through electronic scanners in supermarkets
  2. B) households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur
  3. C) verification of product movement by examining physical records or performing inventory analysis
  4. D) data banks on industrial establishment created through direct inquiries of companies, clipping services, and corporate reports

Answer:  C

Diff: 2             Page Ref: 115

LO :  5

 

68) Surveys can be used for which of the following purposes?

  1. A) to evaluate advertising
  2. B) to examine purchase and consumption behavior
  3. C) for market segmentation
  4. D) all of the above

Answer:  D

Diff: 1             Page Ref: 117

LO :  5

69) Gallup and Robinson Magazine Impact Research Service (MIRS) test ads using an at-home in-magazine context among widely dispersed samples.  Test ads may naturally appear in the magazine or are inserted as tip-ins.  It provides strong, validated measures of recall, persuasion, and ad reaction with responsive scheduling.  The MIRS is an example of surveys being used ________.

  1. A) to evaluate advertising
  2. B) to examine purchase and consumption behavior
  3. C) for market segmentation
  4. D) all of the above

Answer:  A

Diff: 1             Page Ref: 116

AACSB:  Reflective Thinking

LO :  5

 

70) A data gathering technique that is comprised of samples of respondents whose television viewing behavior is automatically recorded by electronic devices, supplementing the purchase information recorded online or in a diary is referred to as ________.

  1. A) scanner diary panels/cable TV
  2. B) scanner panels
  3. C) purchase panels
  4. D) media panels

Answer:  D

Diff: 2             Page Ref: 118

LO :  5

 

71) According to your text, volume tracking data and scanner panels with cable TV are sources of scanner data.  Which of the following is also a type of scanner data?

  1. A) grocery panels
  2. B) scanner panels
  3. C) Both A and B are correct.
  4. D) none of the above

Answer:  B

Diff: 3             Page Ref: 121

AACSB:  Use of IT

LO :  5

 

72) Scanner data where panel members are identified by an ID card allowing each panel member’s purchases to be stored with respect to the individual shopper are referred to as ________.

  1. A) scanner panels with cable TV
  2. B) volume tracking data
  3. C) scanner panels
  4. D) none of the above

Answer:  C

Diff: 2             Page Ref: 121

AACSB:  Use of IT

LO :  5

73) The different types of scanner data are useful for a variety of purposes.  Which of the following purposes applies to scanner data?

  1. A) data used for consumer beliefs
  2. B) data used for establishing consumer attitudes
  3. C) data used to determine customer motives
  4. D) making advertising decisions, including budget, copy and media, pricing

Answer:  D

Diff: 3             Page Ref: 122

AACSB:  Use of IT

LO :  5

 

 

74) The uses of retail and wholesale audit data include all of the following except ________.

  1. A) identifying shelf space allocation and inventory problems
  2. B) establishing profiles of specific user groups
  3. C) developing sales potentials and forecasts
  4. D) analyzing distribution problems

Answer:  B

Diff: 2             Page Ref: 123

LO :  5

 

75) Information provided by industry services is useful for which of the following?

  1. A) sales management decisions such as defining territories and setting quotas
  2. B) advertising decisions such as allocating advertising budgets
  3. C) segmenting the market and designing custom products and services for important segments
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 124

AACSB:  Reflective Thinking

LO :  5

 

76) ________ combines geography with demographic information and a company’s sales data or other proprietary information to develop thematic maps.

  1. A) Single-source data
  2. B) Demographic mapping
  3. C) Computer mapping
  4. D) Thematic mapping

Answer:  C

Diff: 2             Page Ref: 125

LO :  7

77) Sales & Marketing Management’s annual Survey of Buying Power provides data to help you analyze each of your U.S. markets, whether they are cities, counties, metro areas, or states. What of the following information is also true of the Survey of Buying Power?

  1. A) It features statistics, rankings, and projections for every county and media market in the United States with demographic broken out by age, race, city, county, and state.
  2. B) It features information on retail spending; and projections for future growth in these areas.
  3. C) It features a unique measure of spending power that takes population, EBI, and retail sales into account to determine a market’s ability to buy.
  4. D) All of the above are true.

Answer:  B

Diff: 3             Page Ref: 126

AACSB:  Analytic Skills

LO :  6

 

 

78) Which of the following concerns are important when evaluating secondary data for international projects?

  1. A) Measurement units may not be equivalent across countries.
  2. B) The accuracy of secondary data may vary from country to country.
  3. C) Both A and B are correct.
  4. D) None of the above are correct.

Answer:  C

Diff: 2             Page Ref: 127

AACSB:  Multicultural and Diversity

LO :  8

 

79) Which of the following practices might be unethical?

  1. A) the use of secondary data alone when the research requires primary data collection
  2. B) the client is billed a fixed fee for the project
  3. C) the unnecessary collection of expensive primary data when the research problem can be addressed based on secondary sources alone
  4. D) Both A and C are correct.

Answer:  D

Diff: 1             Page Ref: 128-129

AACSB:  Ethical Reasoning

LO :  9

 

80) Discuss the advantages and uses of secondary data.

Answer:  Secondary data are easily accessible, relatively inexpensive, and quickly obtained.  Secondary data can help you:

∙     Identify the problem

∙     Better define the problem

∙     Develop an approach to the problem

∙     Formulate an appropriate research design (for example, by identifying the key variables)

∙     Answer certain research questions and test some hypotheses

∙     Interpret primary data more insightfully

Diff: 2             Page Ref: 101

AACSB:  Reflective Thinking

LO :  2

 

81) List the issues to be considered when evaluating secondary data using the specification/methodology criteria (Table 4.2 in the text).

Answer:

∙     Data collection

∙     Response rate

∙     Quality of data

∙     Sampling technique

∙     Sample size

∙     Questionnaire design

∙     Fieldwork

∙     Data analysis

Diff: 3             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

82) List the criteria for evaluating secondary data (Table 4.2 in the text).

Answer:  Secondary data should be evaluated on the following criteria which are fully described in Table 4.2 in the text.

∙     Specification/methodology

∙     Error/Accuracy

∙     Currency

∙     Objective

∙     Nature

∙     Dependability

Diff: 3             Page Ref: 102

AACSB:  Analytic Skills

LO :  3

 

83) What are the major advantages of secondary internal data?

Answer:  Secondary internal data have two significant advantages.  They are easily available and inexpensive.  In fact, secondary sources are generally the least costly of any source of marketing research information; yet these data often are not fully exploited.

Diff: 1             Page Ref: 106

AACSB:  Reflective Thinking

LO :  4

 

84) What are purchase panels and media panels?  Develop examples of marketing situations where you would use each.  Be sure to explain the type of information you would collect and the makeup of the panel respondents.

Answer:  In purchase panels respondents record their purchases online or in a diary.  Media panels comprise samples of respondents whose television viewing behavior is automatically recorded by electronic devices supplementing the purchase information recorded online or in a diary.

 

Students should give their own examples.  Completer information on the NPD Group and Nielsen Media Research examples given here are in the text.

 

NPD uses purchase panels to gather information on consumer behaviors on a wide range of product categories including food, fashion, fun, house and home, tech, and auto.  Detailed information is gathered on the brand, amount purchased, price paid, intended use, and more.  The composition of the panel is representative of the U.S. population as a whole.  A 2005 study identified the top 5 women’s accessory purchases.

 

Nielsen Media Research uses People Meters to measure audiences for local television 4 times a year in the 210 TV markets in the country.  Viewers write in diaries who watched, what channel they watched, and what program they watched.  Five thousand households are randomly selected by Nielsen so as to be representative of the U.S. population.  Using these data, Nielsen estimates the number and percentage of all TV household viewing a given show.  The information is disaggregated by 10 demographic and socioeconomic characteristics.  The Nielsen Index is useful to firms in selecting specific TV programs on which to air their commercials.

Diff: 3             Page Ref: 118-120

AACSB:  Reflective Thinking

LO :  5

 

85) Discuss the disadvantages of different types of scanner data.

Answer:  A major weakness of scanner data is lack of representativeness. National volume tracking data may not be projectable onto the total population, because only large supermarkets have scanners. Also, certain types of outlets, such as food warehouses and mass merchandisers, are excluded. Likewise, scanners have limited geographical dispersion and coverage.

 

The quality of scanner data may be limited by several factors. All products may not be scanned. For example, a clerk may use the register to ring up a heavy item to avoid lifting it. If an item does not scan on the first try, the clerk may key in the price and ignore the bar code. Sometimes a consumer purchases many flavors of the same item, but the clerk scans only one package and then rings in the number of purchases. Thus, the transaction is inaccurately recorded. With respect to scanner panels, the system provides information on TV sets in use rather than actual viewing behavior. Although scanner data provide behavioral and sales information, they do not provide information on underlying attitudes, preferences, and reasons for specific choices.

Diff: 3             Page Ref: 122

AACSB:  Use of IT

LO :  5

 

86) Discuss single-source data.  What is it and how is it related to computer mapping?

Answer:  It is desirable to combine secondary information obtained from different sources.  One outcome of the effort to combine data from different sources is single-source data.  Combining data allows the researcher to compensate for the weakness of one method with the strengths of another. Single-source research follows a person’s TV, reading, and shopping habits. After recruiting a test panel of households, the research firm meters each home’s TV sets and surveys family members periodically on what they read. Their grocery purchases are tracked by UPC scanners. For background, most systems also track retail data, such as sales, advertising, and promotion. Thus, single-source data provide integrated information on household variables, including media consumption and purchases, and marketing variables such as product sales, price, advertising, promotion, and in-store marketing effort.

 

Computer mapping is related to single-source data because they both combine secondary data from different sources.  Computer mapping combines geography with demographic information and a company’s sales data or other proprietary information to develop thematic maps.  Marketers now routinely make decisions based on these color-coded maps.

Diff: 3             Page Ref: 124-125

AACSB:  Analytic Skills

LO :  6

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