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Chapter 7: Obtaining Data for Marketing Decisions



True/False
Indicate whether the statement is true or false.
 

 1. 

Marketing management involves the systematic gathering, recording, and analyzing of data about problems related to the marketing of goods and services.
 

 2. 

Marketers will often contract their marketing research to specialists when (a) the problems they are facing are well-defined and can be broken down into specific, easy-to-delegate, projects, (b) there is a need for specialized market research know-how or equipment, and (c) intellectual detachment is needed to get  objective, nonbiased information.
 

 3. 

A clearly defined problem is essential to gathering information that can help marketing managers make decisions that will solve their problems.
 

 4. 

Exploratory research to find the cause of a problem can involve discussing the problem with informed sources from inside and outside the firm, and also examining secondary sources of information from inside and outside the firm.
 

 5. 

The owner of Werlein's Music Store hypothesized that, due to changing music trends, electronic acoustic guitars would no longer be a best-selling item.  A hypothesis like this must be developed before exploratory research is conducted in order to provide a focus for gathering information.
 

 6. 

A hypothesis is a tentative explanation about the relationship among variables that carries clear implications for testing the relationship.  It sets the stage for developing the research design.
 

 7. 

Canadian Facts Inc. has been contracted to conducted research on a new product concept for Lever Brothers.  Canadian Facts is currently determining what types of questions need to be answered and what type of study or studies should be employed to fully capture consumer reaction to a prototype of the proposed new product.  Canadian Facts is at the second step, research design, of the marketing research process.
 

 8. 

The Canadian Government is a weak source of information for marketers since it only collects census information every 10 years.
 

 9. 

Trade associations represent an excellent source of private data on the activities in particular industries.
 

 10. 

There are two major problems with using secondary data: (1) the information may be out-of-date, and (2) it may not have been collected in a way that makes it usable for solving the problem at hand.
 

 11. 

Even if the secondary data collected for the study cannot fully address the problem at hand, it may narrow the scope of the primary data that will have to be collected.
 

 12. 

There are three methods for collecting primary data: observation, survey, and controlled experiment.  Observation is applicable to a wider variety of research projects and problems than the other two methods.
 

 13. 

Researchers generally use surveys to obtain information on consumer attitudes, motives, and opinions.
 

 14. 

Self-completed surveys are often distributed by mail.  The percentage returned by the people who have been mailed these surveys depends upon factors like the length of the questionnaire and respondent interest.  A 20 percent return rate is common.
 

 15. 

The most common form of controlled experiment is the test market conducted in a laboratory setting.
 

 16. 

In the future, controlled experiments will become more common because  sophisticated simulation techniques are being developed that will allow researchers to better control all of the variables in a given situation.
 

 17. 

The development of a questionnaire for a particular research study is quite easy once the problem has been defined, the research design has been developed, and the data collection method(s) have been determined.
 

 18. 

Questionnaires must be pre-tested in order to plan and set up the computer coding needed for data entry following data collection.
 

 19. 

The most basic type of probability sample is the simple random sample, in which every item in the relevant universe (for example, every name on a list) has an equal opportunity of being selected.
 

 20. 

Data refers to statistics, opinions, facts, or predictions categorized on some basis for storage and retrieval. Information is data that is relevant to the marketing manager in making decisions.  A marketing information system (MIS) systematically gathers internal and external information, and should not include irrelevant data.
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 21. 

Marketers conduct market research so that they can do a better job of
a.
creating new marketing documents.
b.
finding reasons why new products fail.
c.
understanding the technology used in their industry.
d.
making decisions about which marketing strategies will be effective.
 

 22. 

Mediamark Research Inc. periodically conducts personal interviews with adults about their exposure to advertising media and sells its findings to an array of regular clients.  It is a(n)
a.
full service research supplier.
b.
limited-service research supplier.
c.
syndicated service.
d.
interview consultation service.
 

 23. 

Marketing research is actually conducted by
a.
following a five-step marketing research process.
b.
marketing managers.
c.
maximizing the use of computers to minimize data collection and interpretation errors.
d.
all of the above.
 

 24. 

One thing that researchers must carefully avoid doing is
a.
purchasing secondary data that is too expensive.
b.
confusing symptoms of a problem with the problem itself.
c.
using random processes to pick a group of people to interview.
d.
using statistical tools that are too sophisticated for the analytical task at hand.
 

 25. 

A small, private college facing declining enrollments hired a consultant to conduct marketing research.  The consultant said, "First, we must formulate the problem."  Based on this information, which of the following is true?
a.
The college should fire the consultant because the first step in the marketing research process is "formulate a hypothesis."
b.
The problem in this case is a decrease in enrollment.
c.
Declining enrollment is a symptom of the underlying problem.
d.
The college should fire the consultant because the first step in the marketing research process is "conduct an exploratory investigation."
 

 26. 

Research design involves decisions made _____________ conducting the research; these decisions allow the researcher to ________________________.
a.
before; control each step of the research process
b.
before; formulate the problem
c.
after; determine key research findings
d.
after; whether the right questions were asked
 

 27. 

Secondary data, such as internal company records, are part of the ______________ phase of the marketing research process.
a.
problem definition.
b.
research design.
c.
hypothesis formulation.
d.
data collection.
 

 28. 

Primary data
a.
requires a considerable amount of technical expertise to collect.
b.
can usually be collected very quickly.
c.
is conducted before secondary data has been collected.
d.
none of the above.
 

 29. 

An example of the observation method to collect market research information is
a.
using touch-screen computers so shoppers can answer short questionnaires at supermarkets.
b.
checking licence plates at a shopping centre to find out where customers come from.
c.
asking customers which one caught their eye first as they observe a table of new products.
d.
handing visitors a short mail-back questionnaire as they are leaving a store after observing new displays.
 

 30. 

A telephone interview is a good method to use when
a.
only limited amounts of information are required from each participant.
b.
the marketer has a limited research budget.
c.
the study must be completed quickly.
d.
all of the above.
 

 31. 

The ________________ technique is usually considered to be the best means of obtaining detailed consumer information.
a.
personal interview
b.
focus group
c.
observation
d.
Internet survey
 

 32. 

A focus group interview can be used for which of the following purposes?
a.
gathering preliminary research information.
b.
revealing how consumers view a problem.
c.
observing how consumers interact with each other.
d.
all of the above.
 

 33. 

A manufacturer of pet products is conducting ______________ when it introduces a new dog food in Calgary, Alberta in order to assess consumer reactions before introducing the product nationwide.
a.
a jury of executive opinion.
b.
personal interviews.
c.
a survey of buyer intentions.
d.
a test market.
 

 34. 

A representative group of people chosen from a defined population is called a
a.
quota.
b.
cluster.
c.
sample.
d.
selection.
 

 35. 

A Westinghouse Electric Company engineer who identifies various warehouses that stock light bulbs and then randomly selects cartons of light bulbs from those on hand in the warehouses is using the probability sampling method known as
a.
random sampling.
b.
quota sampling.
c.
stratified sampling.
d.
cluster sampling.
 

 36. 

Which of the following statements regarding nonprobability samples is true?
a.
Most standard statistical tests cannot be applied to the collected data.
b.
Every member of the population has a known chance of being selected.
c.
The market researcher cannot arbitrarily determine which elements are to be included in the sample.
d.
Every item in the population has an equal chance of being included in the sample.
 

 37. 

A marketing professor wished to test her idea that the proneness of humans to certain decision biases is a function of a personality trait called "need for cognition." She designed a questionnaire that measured need for cognition and posed a hypothetical decision task.  The professor then administered the questionnaire to 50 marketing students at her business school.  This is an example of the sampling technique known as a
a.
simple random sample.
b.
cluster sample.
c.
stratified sample.
d.
convenience sample.
 

 38. 

The final step of the marketing research process involves interpreting and presenting the information.  This consists of
a.
using computer software which is specially designed to draw conclusions from the data collected and to prepare a standard format report for presentation to the marketing team.
b.
compiling, organizing, and interpreting the data collected, then preparing a report for presentation to the marketing team.
c.
conducting a series of statistical analyses on the data collected, then submitting the tales in a report format to the marketing team.
d.
none of the above.
 

 39. 

The primary purpose of a marketing information system (MIS) is to
a.
eliminate the need for routine managerial decisions.
b.
provide information to managers that will enable them to make better marketing decisions.
c.
reduce manufacturing costs.
d.
control inventory costs.
 

 40. 

An MIS gathers information from
a.
only sources from within the company's industry.
b.
only inside the organization.
c.
inside and outside the organization.
d.
non-financial sources only.
 



 
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