Marketing – CH5

Marketing research is best defined as
the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.
Marketing research is a process designed to gather information
not currently available to decision makers
The use of marketing research is
widespread throughout business and nonprofit organizations.
The real value of marketing research to the organization can best be measured by
improvements in the ability to make decisions.
Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows the best way to approach this problem and obtain accurate information is to use
the marketing research process.
All of the following are steps in the marketing research process except
understanding your customer.
The first step in the marketing research process is
defining the problem or research issue.
Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem
is typically a departure from some normal function, such as a failure to attain objectives.
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied?
Locating and defining problems
Decreasing sales, increasing expenses, or decreasing profits
are examples of symptoms that point to larger problems.
An overall plan for obtaining the information needed to address a research problem or issue
is called the
research design.
Jack Bateson knows his business has a problem because of an increasing number of
consumer complaints received recently. He has decided how to make this problem a precise,
researchable statement and should next move on to
designing the research project
An informed guess or assumption about a certain problem or set of circumstances is known as
a hypothesis.
Research design means developing a plan for obtaining the necessary market information.
When a researcher forms an informed guess or assumption about a certain problem, he or
she is
forming a hypothesis.
If Staples believes that most of its sales are to businesses rather than consumers and that
women are more likely to be making purchasing decisions, this would be a(n) ______ that
Staples could test through marketing research.
hypothesis
_____ that are either accepted or rejected become the primary conclusions of a marketing
research study.
hypothesis
When more information is needed about a problem and a tentative hypothesis needs to be
made more specific, marketers usually conduct _________ research.
exploratory
Avon believes that sales of one of its lipstick lines have fallen due to the introduction of a new lipstick line, but it wants to make this tentative hypothesis more specific before proceeding. Avon should conduct
exploratory research.
Research designed to verify insights through an objective procedure to help marketers to
choose between several alternatives is called
conclusive
Research that is conducted to clarify the characteristics of certain phenomena to solve a
particular problem is called ______ research.
descriptive
The Gap wants to target an older crowd in order to increase its market share so it surveys
men and women from ages 40 to 60 about how often and for what type of activities they wear
casual clothing. This is an example of
descriptive research
Research that allows marketers to make causal inferences about relationships is called
experimental research
Suppose that marketers at Lever Bros. are trying to determine whether the use of free
samples of Snuggle fabric softener was the reason for a sales increase in a particular store.
The type of research conducted to answer this question is
experimental
If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales,
it needs to conduct
experimental research
When marketing researchers try to manipulate an independent variable and measure the
resulting changes in a dependent variable, they are engaging in
experimentation
Designing research procedures that produce reliable marketing data means that
others using the same procedure will get almost identical data.
Marketing researchers at Essex Co. repeated a particular experiment several times and
discovered that the results produced each time were nearly identical. This phenomenon
would indicate that the results were
reliable
A valid study
measures what it is supposed to
A firm has conducted market research and found that customer satisfaction with its product is
quite high. Nonetheless, repurchase behavior is very low. The research design evidently has
a problem with
validity
A study that is valid and reliable
measures what it is supposed to measure and produces almost identical results every time.
Palmetto Regional Hospital has designed an upcoming research project for determining the
best methods for improving patient care. The next step the organization must take in the
marketing research process is
collecting data
Primary data are best described as the
data that are observed, recorded, or collected directly from subjects.
Data that are observed or collected directly from respondents are called
primary data
If Bloomingdale’s wants to learn about consumers’ attitudes toward on-line purchases and
conducts a study to acquire this information, this study would collect ____________ data.
primary
Marketers often begin the data collection phase of a research project by gathering secondary
data. This type of information may come from both ___________ and ___________ sources.
internal;external
Secondary data cannot be obtained from
surveys
One overlooked internal source of secondary marketing information discussed in the text is
accounting recrods
AOL Time Warner uses its sales reports broken down by geographic regions as part of its
marketing research to determine which markets are most rapidly adopting high-speed
Internet connections. In this example, AOL Time Warner is using
internal secondary data
If Georgia-Pacific seeks information about trends in housing starts around the country and
uses U.S. Department of Commerce reports to get this information, it is using ___________
data.
secondary
When working as a summer intern for a local retail store, Jan Halverson was sent to the
library to look up data on population forecasts for the city of San Antonio. The population
information she found would be considered
secondary data
Information from the U.S. Census Bureau is commonly used as ____ by a variety of
agencies and organizations.
external secondary data
Subscription services from firms such as ACNielsen provide marketing researchers with a
good source of ___________ data.
external secondary
If Carrie wants to do some market research about the footwear industry that her company is
a part of, but she has limited money and time, she would most likely collect
secondary data
All the elements, individuals, or units of interest to researchers for a specific study are called
the
population
If the University Bookstore wanted to understand the textbook and school supplies needs on
the campus of the University of Michigan, the population of study would be
all students, faculty, supporters, and staff of the University of Michigan.
Patricia Robertson is running for Congress from the Sixth District in her state. She is
interested in knowing the intended choices of the voters. All the registered voters in her
district would constitute the study’s
population
If you were to choose a sample with which to study the market for preschool toys in Illinois,
the population would logically be defined as all
families in Illinois that have or are expecting preschool children.
In marketing research, a sample is best described as
a limited number of units chosen to represent the characteristics of a total population.
When marketing researchers consider sampling techniques, they are preparing to collect
___________ data.
primary
The objective of sampling in marketing research is to
select representative units from a total population
The two basic types of sampling that marketing researchers use are
probability and nonprobability.
In what type of sampling does every element have a known chance of being selected for
study?
probability
Which sampling design gives every member of the population an equal chance of appearing
in the sample?
radnom
In which of the following sampling designs do all members of a population have an equal
chance of being selected?
random
Marriott wants to collect data about employee satisfaction within its organization. It decides to
survey a sample of 50 employees by having a computer program automatically pick which
employees will be in the sample. If every employee has an equal chance of being selected,
Marriott is using
random sampling
When a population is divided into distinct groups based on some particular characteristic and a probability sample is taken from each group, this exemplifies _________ sampling.
stratified
Assume that Verizon Wireless is interested in studying the pricing expectations of its
customers. If the study calls for selecting at random 100 people from each of three age
groupings, ___________ sampling is being used.
stratified
Baskin Robbins is conducting research on possible new ice cream flavors and products. It is
selecting at random 100 males and 100 females in order to collect data. This is an example
of ______ sampling.
stratified
If Weight Watchers is interested in collecting information about Americans’ perceptions of
dieting programs, and the company believes that significant regional differences may exist,
the best type of sampling would be
stratified.
In ___________ sampling, there is no way to calculate the likelihood that a specific element
of the population being studied will be chosen.
nonprobability
In which type of sampling design is the final choice of respondents left up to the interviewer?
Quota
When researchers divide the population of interest in a study into groups and then arbitrarily
choose participants from each group, they are using
quota sampling
Quota sampling is most commonly used in
exploratory studies
Nelson Marketing Research is concerned about using surveys to conduct a marketing
research project because
response rates are declining
What is the primary factor contributing to the increasing difficulty associated with gathering
primary data through surveys?
Fewer people are willing to participate in surveys.
Which of the following is the least flexible survey method?
mail surveys
Peter Demos, director of marketing at Holcomb, Inc., calls in Andrea Carter, the firm’s
marketing research director. Peter wants a study done to assess the company’s image
relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little
money to devote to the research, and feels that a relatively low response rate will not be a
major problem. Andrea will probably recommend using a ___________ survey.
mail
Maggie has limited funds for collecting data about a new pricing strategy, but she needs data
from a wide geographic area. Under these circumstances, Maggie should use
mail surveys
The major disadvantage of a mail survey versus a telephone or personal survey is
the failure of respondents to return the questionnaire
An offshoot of mail surveys, ______ have shortcomings because the people who participate
in them generally have higher incomes and education levels than the general population.
purchase diaries
Compared to a mail survey, telephone surveys have
higher response rates
The manager of MegaMarket is interested in asking consumers what they think about the
store’s new layout and expanded produce selection. If the manager would like to obtain a
high response rate and have the study conducted as quickly as possible, which data
collection method would you recommend?
telephone surveys
Although telephone surveys can be conducted very quickly, a major limitation is
that only a small portion of the population likes to participate in telephone surveys.
The National Do-Not-Call list affects the ability of marketing researchers to use
telephone surveys
Which of the following survey methods has the potential to offer quick response at a lower
cost than traditional mail and telephone surveys?
online surveys
Which of the following basic survey methods is the least expensive method if there is an
adequate response rate?
online surveys
Spam and privacy are both issues of concern related to
e-mail surveys
Marketing researchers typically favor ___________ because they are extremely flexible.
personal interviews
Participants in _______ frequently get to see pictures, products, advertising samples, and
diagrams.
personal interviews surveys
If a marketing researcher is interested in observing group interaction during an informal,
unstructured, and open-ended data collection process, he or she should use
a focus-group interviews
A research method in which a number of people are exposed to an idea or concept and the
interaction of the people is observed is called a(n)
focus-group interview
Emily Dawson and seven other people were paid to get together and discuss a new product
idea proposed by Johnson & Johnson. Researchers observed the interaction of the group.
This method is called a
focus-group interview
Kelsey thinks she will be able to get the highest quality of responses concerning the product
features most sought by consumers through personal interviews. She decides to conduct her
interviews at _____ because this is the most common location for personal interviews.
a shopping mall
A survey question that requires a yes or no answer is called a
dichotomous question.
An item on the University Book Store’s survey asks respondents to tell the store, in their own
words, what they like least about textbook shopping. This item would be an example of a(n)
___________ question
open-ended
When Pepsi Max implemented a telephone survey to determine the effectiveness of a recent
advertising campaign. One of the questions the interviewer asked was, “Have you ever heard
of a cola with twice the caffeine of regular colas?” This is an example of which of the
following kinds of questions?
Dichotomous
An online survey conducted before students could register for their fall semester classes
asked, “Do you think online professor evaluation forms would be better than paper and pencil
forms administered during class?” This is an example of a(n) ______ question.
dichotomous
For demographic purposes, a mail survey sent out by the American Cancer Society asks
each respondent to identify their race by choosing among a list of possibilities. This common
type of question is called a(n) _____ question.
multiple-choice
When a market researcher is using ethnographic techniques, he or she is engaging in
observation
Cameras, counting machines, and scanners are used most often in
observation
Having recording biases and collecting only descriptive information are two of the primary drawbacks to
observation
If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage
of customers examine product labels before making a product selection in the grocery store,
it can best gain this information through
observation
Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use
observation methods to gather information about shopping behavior. Which of the following
should Nathan know about observation methods of data collection?
Observation can tell Nirendra what is being done, but not why
Which step in the marketing research process follows collecting data?
Interpreting research findings
Carlos was given the task of conducting a research project for his firm and proceeds with the
following steps: he asks questions to determine the research topic, conducts a telephone
survey, writes a report describing the survey results, and gives that report to his boss. Which
step of the marketing research process has Carlos omitted?
Interpreting research
In the process of conducting marketing research, marketers should allow for
continual evaluation of the data during the entire collection period.
Which step in the marketing research process involves the use of data analysis and
statistical techniques to help draw conclusions?
Interpreting research findings
According to the text, ___________ interpretation focuses on what is typical or what deviates
from the average.
statistical
Darren uses Microsoft Excel to determine how much the responses to his survey about
household decision making for toilet paper vary. Darren is in the ______ step of the
marketing research process.
interpreting research findings
Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent
of the customers believe store personnel are “courteous.” Which benchmark or comparison
would be most useful for interpreting this result?
How the 50 percent figure compares with that for competitors
The final step in the marketing research process is
reporting the research findings
Corporate executives often prefer marketing research findings to be put into a report
that is clear, short, and simply expressed.
In reporting marketing research findings, the researcher should
provide explanations in language that those who use the report to make decisions can understand.
There is some concern that marketing research has been used incorrectly by some firms.
The major problem comes from ___________ because the researcher wants to obtain
favorable results
bias and distortion
A framework for gathering and managing information from sources both inside and outside
an organization is referred to as
a marketing information system
Which one of the following best characterizes a marketing information system (MIS)?
An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses.
The main focus of a marketing information system is on
data storage and retrieval.
American Flooring sells all types of floor coverings to contractors and other businesses. It
keeps a collection of information about all of its clients that can be easily accessed on the
company’s computer system. This collection of information is called a
database
Bart’s Appliance Center owner Ron Bart feels that his organization has access to a great
deal of information generated both inside and outside the firm, but much of this information is
presently going to waste. Apparently, Bart needs to develop a
marketing information system
A(n) ___________ is a collection of information arranged for easy access and retrieval.
database
Information provided by a single firm on household demographics, consumer purchases,
television viewing behavior, and responses to promotions is called ___________ data.
single-source
Behavior Scan, a research company, provides information on household demographics,
television viewing habits, and purchases tracked with Hotline cards. This is
single-source data
Computer software that aids marketing managers in decision making by helping them
anticipate the effect of certain decisions is known as a
marketing decision support system
Marketing information systems and marketing research have changed rapidly because
customers and companies around the world have been linked by
the internet
The following are all guidelines for questionnaire construction that support ethical marketing
research except to
keep the name of the research company confidential.
Which of the following statements about conducting marketing research internationally is
false?
Specific differences among countries have no affect on data gathering or the marketing research process.
Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion’s success and offered the commercials nationwide.

Kashi’s testing of the Crunchy Wheat promotion is an example of

a descriptive study.
Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion’s success and offered the commercials nationwide.

Suppose that when selecting the 5,000 homes to participate in scanner studies in one city,
the research firm first divided the city’s population into upper-, middle-, and lower-class
families, then took a probability sample within each group. This would be a(n) _________
sample.

stratified
Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion’s success and offered the commercials nationwide.

The 5,000 households that allowed their group purchases to be scanned are a

sample
Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion’s success and offered the commercials nationwide.

When the researchers compared the average sales of Crunchy Wheat for the group that saw
the promotion with the average sales for the group that did not see the promotion, in which
stage of the marketing research process were they?

Interpreting research findings
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business: even though it seemed to be ideally located, sales were extremely disappointing.

Colin decided to apply some of the things he had learned in his MBA marketing research
class to his business. The first thing he did was to

define the problem to be researched.
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business: even though it seemed to be ideally located, sales were extremely disappointing.

Colin developed a research design to aid his investigation. This design included a questionnaire that attempted to measure “outdoor activity preferences”; however, Colin’s
MBA professor said that the questionnaire measured not “outdoor activity preferences” but
something else. The professor was questioning the research design’s

validity.
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business: even though it seemed to be ideally located, sales were extremely disappointing.

Colin went to the university library and collected everything he could find on the kayaking and
canoeing sports industries. The type of data he collected are known as ___________ data.

secondary
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business: even though it seemed to be ideally located, sales were extremely disappointing.

Besides administering the questionnaire, Colin observed people who went kayaking and
canoeing on the Chatsworth River, making notes about their appearance and behavior. The
type of data he collected are ___________ data.

primary
Colin Jackson recently purchased Blue Waters Adventures, a kayak and canoeing rental business near the Chatsworth River in Arizona. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business: even though it seemed to be ideally located, sales were extremely disappointing.

Before administering the questionnaire, Colin discovered through talking to other sports
rental businesses that, although retired males made up a small percentage of the area’s population, they often rented kayaks and canoes. In light of this, Colin decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ___________ sampling.

quota