Chapter 07 Marketing Research

Accessibility: Keyboard NavigationBlooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary

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Chapter 07 Marketing Research

Multiple Choice Questions

1 The term "marketing research" refers to:

D a set of techniques for systematically collecting, recording, analyzing, and interpreting

useful data

Marketing research is a key prerequisite to successful decision making; it consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas

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Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Easy

Learning Objective: 07-01 Identify the five steps in the marketing research process.

Topic: 07-01 The Marketing Research Process

2 Political consultants have been using market research for decades to help their candidates understand:

A who makes up the voting public and how to reach them.

Political parties have been slicing and dicing the voting public for decades to determine relevant messages for different demographics Politicians desperately want to understand who makes up the voting public to determine how to reach them

Blooms: Remember

Difficulty: Easy

3 Which of the following is NOT a step in the marketing research process?

B Define mission statement and objective

Define mission statement is not a step in marketing research process

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Blooms: Understand

Difficulty: Moderate

4 Which of the following is the first factor that managers consider before embarking on a marketing research project?

B The usefulness of the project to a firm

Managers consider several factors before embarking on a marketing research project First, will the research be useful? Marketing research can be very expensive, and if the results won't

be useful or management does not abide by the findings, it represents a waste of money

Blooms: Remember

Difficulty: Easy

5 Assuming that a particular market research study will reduce uncertainty associated with the proposed project, which of the following is the second question that needs to be addressed before starting the study?

C Is top management committed to the study?

Managers consider several factors before embarking on a marketing research project First, will the research be useful? Will it provide insights beyond what the managers already know and reduce uncertainty associated with the project? Second, is top management committed to the project and willing to abide by the results of the research?

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Difficulty: Easy

6 Which of the following statements best describes the market research process?

E It usually ends with presenting an action plan.

In the final phase of the marketing research process, an analyst prepares the results and presents them to decision makers, who undertake appropriate marketing actions and

strategies

7 The first step in a market research project is to:

C define objectives and research needs.

Because research is both expensive and time consuming, it is important to establish in advance exactly what problem needs to be solved Correctly defining the problem is one of the most important elements of the marketing research process

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Blooms: Remember

Difficulty: Easy

8 APR Consulting is an integrated marketing solutions company When approached by clientswho want to market a new product, APR Consulting will ideally start the market research process by:

C defining the research problem and objectives.

APR Consulting will ideally start the market research process by defining the research

problem and objectives Because research is both expensive and time consuming, it is

important to establish in advance exactly what problem needs to be solved Correctly definingthe problem is one of the most important elements of the marketing research process

Topic: 07-02 Step 1: Define the Research Problem and Objectives

9 As a marketing researcher, one should differentiate between a real problem and a symptom

of the real problem Which one of the following is likely to be a symptom of the problem?

D Market share decline

Market share decline is a symptom of a real problem A company may lose market due to bad pricing, promotion, or product offering The researcher job is to make sure to define the real problem

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Blooms: Apply

Difficulty: Difficult

Topic: 07-02 Step 1: Define the Research Problem and Objectives

10 The term "secondary data" refers to the data that has been collected:

C prior to the start of the focal project.

Secondary data are pieces of information that have been collected prior to the start of the focalresearch project Secondary data include both external and internal data sources

Blooms: Remember

Topic: 07-03 Step 2: Design the Research Plan

11 Raw numbers or other factual information that, on their own, have limited value to

marketers can be termed as:

To generate meaningful information, researchers analyze and make use of the collected data

In this context, data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers

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Blooms: Remember

Difficulty: Easy

Topic: 07-04 Step 3: Collect Data

12 Data that has been organized, analyzed, interpreted, and converted into a useful form for decision makers is called:

Blooms: Remember

Difficulty: Easy

Topic: 07-04 Step 3: Collect Data

13 Which of the following is a source of secondary data?

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Learning Objective: 07-02 Describe the various secondary data sources.

Topic: 07-05 Step 4: Analyze Data and Develop Insights

14 Which of the following is an internal source of secondary data?

15 Commercial research firms such as Nielsen, Leger Marketing, and National Purchase Diary Panel are sources of:

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16 Caroline needs to research information about income and age distribution in Fort

McMurray, an urban service area in Alberta Which of the following would be the most usefulsource of data for Caroline in terms of being easily accessible at a low cost?

Blooms: Apply

Topic: 07-07 Secondary Data

17 If Bell Canada obtains purchase history of its current customers to send them promotions for a new product, what data source Bell Canada uses?

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Blooms: Apply

18 The type of quantitative research that uses data obtained from readings of UPC codes at checkout counters is called:

19 The data obtained from which of the following research techniques is likely to be acquired

by leading marketing research firms to help other firms assess the market activity?

Scanner data are obtained from scanner readings of UPC codes at checkout counters and used

in quantitative research Whenever you go into your local grocery store, your purchases are rung up by using scanner systems This information helps leading consumer packaged goods firms assess what is happening in the marketplace

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20 Which of the following types of quantitative research involves collecting information from a group of consumers over time?

Difficulty: Easy

21 Which of the following is an advantage of secondary data?

C It saves time in data collection.

One of the advantages of secondary data is that it saves time in data collection because the data is readily available It also reduces data collection costs

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Blooms: Remember

Difficulty: Easy

Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data.

22 A new startup was able to find answers to its marketing research questions from Statista website This is an example of _

C External secondary data

23 Netflix is able to analyze data from its millions of users and customize its

recommendations to them This is an example of _

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Blooms: Apply

Topic: 07-08 Primary Data Collection Techniques

24 The data collected from which of the following sources can be considered as primary data?

B Focus groups

In many cases, the information researchers need is available only through primary data, or data collected to address the specific research needs/questions currently under investigation Marketers collect primary data by using a variety of means, such as observing consumer behaviour, conducting focus groups, or surveying customers by using the mail, telephone, in-person interviews, or the Internet

Difficulty: Easy

25 The field of marketing research has seen enormous changes in the last few years because

of all the following EXCEPT:

insight

manufacturers have access

E Customers' willingness to participate in companies' surveys.

One of the challenges companies are facing is response rate Most customers are not willing

to participate in surveys

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26 Which of the following is a major advantage of primary research?

D It usually can be tailored to fit research questions.

Primary data collection can help eliminate some of the problems inherent to secondary data Amajor advantage of primary research is that it can be tailored to fit the research questions

27 Which of the following best describes primary research?

C It offers behavioural insights and answers specific questions.

information needs

One of the advantages of primary research is that it offers behavioural insights generally not available from secondary research Primary research can be designed to answer very specific questions, but it also tends to be more expensive and time consuming

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28 Which of the following could be seriously reduced due to an improper execution of the important aspects of primary data collection?

D Reliability and validity

Improper execution of any important aspects of primary data collection, such as types of sampling plan, types of research instruments to use, best way to contact potential respondents etc., could seriously reduce the reliability and validity of the research study

Blooms: Remember

Difficulty: Easy

29 The extent to which the same result is achieved when a study is repeated under identical situations is called:

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Blooms: Remember

Difficulty: Easy

30 The marketing team of a renowned car company wanted to gain information from its customers regarding the performance of its new car For this, the team designed a

questionnaire with questions relating to the car's performance and distributed it among the company's customers The data analysis of the survey showed that the customers were happy with the mileage of the car The team obtained the same results when they conducted the samesurvey at all the company's outlets This shows that the company's research study is:

31 The extent to which a study actually measures what it is supposed to measure is called:

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Blooms: Remember

Difficulty: Easy

32 Briggs, a fast-food chain, conducted a survey at one of its outlets regarding the taste, price, and quality of its products Briggs found that its customers were pleased with the taste and quality but felt that prices were a little high When the same survey was conducted across its other outlets, it received different responses from customers This shows that the survey conducted by Briggs may lack:

33 A segment or subset of the population that adequately represents the entire population of interest is known as a(n):

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Blooms: Remember

Difficulty: Easy

34 A popular shoe brand for boys that targets the age group of 12 to 15 years wanted to conduct a survey regarding the comfort of its recently launched shoes For the survey, it selected a group of 250 boys from various schools in San Francisco This selected group of boys is called a(n):

of interest

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Difficulty: Easy

35 Kids ‘N' Toys, a popular toy company, is conducting marketing research to gauge the response to its new doll before introducing it to the market on a large scale The target market for this doll consists of girls between the ages of four and eight To conduct the study, Kids

‘N' Toys randomly selected 100 girls in this age group from various schools in the country and studied their response The process of selecting the group of girls from various schools forthe study is known as:

Blooms: Apply

36 A local coffee shop spend $1,000 in advertising on Facebook with no success Alex, the marketing manager, believes the company send a wrong message to the audience He believesthe message should have focused on quality of coffee rather than price Alex statements are examples of:

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Blooms: Apply

37 Which of the following involves gathering qualitative data about initial reactions to a new

or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli?

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Difficulty: Easy

Topic: 07-09 Qualitative Research Methods

38 Natalie is the marketing director of One Dollar stores, a retail chain in Canada From the recent sales reports, Natalie notices that sales had increased in some stores and decreased in others She is unable to predict the reason for this variation in sales The method of research that Natalie is likely to employ to gain a better understanding of the variation and to clearly define its cause will be:

39 Which one of the following is NOT a pros of using Social Media in Research?

B A statistically representative sample

One of the cons of using social media is marketing research is "not a statistically

representative sample"

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40 If marketing researchers are ready to move beyond preliminary insights, they are ready to engage in:

A quantitative research.

If a firm is ready to move beyond preliminary insights gained from qualitative research, it is likely ready to engage in quantitative research, which provides the information needed to confirm those insights and that managers can use to pursue appropriate courses of action

Blooms: Remember

Difficulty: Easy

Topic: 07-10 Quantitative Research Methods

41 A statement or proposition predicting a particular relationship among multiple variables is called the:

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Blooms: Remember

Difficulty: Easy

42 A type of qualitative research method that entails examining purchase and consumption behaviours through personal or video camera scrutiny is:

Blooms: Remember

Difficulty: Easy

43 Which of the following qualitative research methods is particularly useful when customersare unable to articulate their experiences?

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44 A company that manufactures bicycles for kids wants to monitor the reactions of kids when they are taken to the bicycle store This is done through a closed-circuit camera installed

in the bicycle store Which of the following research methods is being employed by the company?

In this case, the observation research method is being employed by the company The

observation research method entails examining purchase and consumption behaviours throughpersonal means or the use of technology, such as video camera or other tracking devices When consumers are unable to articulate their experiences, observation research becomes particularly useful

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Blooms: Apply

45 A store manager at George, a retail chain, wants to monitor the response of customers to new products launched in George's recently renovated retail store on Yonge Street He

appoints a few staff members to monitor the customers while they are in the store The

research method being used by the manager is:

consumers are unable to articulate their experiences, observation research becomes

46 An observational method that studies people in their daily lives and activities in their homes, work, and communities is called:

Ethnography is an observational method that studies people in their daily lives and activities

in their homes, work, and communities It is often used to determine how consumers might use a product

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Blooms: Remember

Difficulty: Easy

47 A research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue is called a(n):

48 Which of the following is a benefit of using in-depth interviews as a research method?

B They can provide an historical context for the phenomenon of interest.

In-depth interviews have quite a few benefits They can provide an historical context for the phenomenon of interest, particularly when they include industry experts or experienced consumers

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49 Which of the following research techniques is the most helpful in providing insights abouthow people feel about a product or service at an individual level?

50 Randall wants to do an online survey of factors that influence the textbook selection process of college professors Since Randall is unsure of how to go about this, which of the following could he use that would help him most in conducting the survey?

A In-depth interviews

In this case, in-depth interviews would be most useful to Randall in conducting the survey In

an in-depth interview, trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue

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51 The focus group is an exploratory research technique in which:

answers, is provided for respondents to evaluate

variable(s) have a causal effect on another variable

communities

D a small group comes together for an in-depth discussion about a particular topic, with the

conversation guided by a trained moderator

accomplish the researchers' objectives

In focus groups, a small group of persons (usually 8 to 12) comes together for an in-depth discussion about a particular topic Using an unstructured method of inquiry, a trained

moderator guides the conversation on the basis of a predetermined general outline of the topics of interest

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Blooms: Remember

Difficulty: Easy

52 Michelle has hired a market research company to gather a small group of soft-drink consumers and obtain feedback on three new advertising slogans her firm is thinking of using.Which of the following will the market research firm create in order to provide the

information requested by Michelle?

The market research firm will most likely deploy a focus group to cater to the request made

by Michelle In particular, focus groups gather qualitative data about initial reactions to a new

or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli, like a new ad campaign or point-of-purchase display materials

Blooms: Apply

53 A research technique in which a small group of persons comes together for an in-depth discussion about a particular topic, with the conversation guided by a trained moderator using

an unstructured method of inquiry, is known as:

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Blooms: Remember

Difficulty: Easy

54 Harold was developing a questionnaire to conduct an online survey regarding the factors that influence textbook selection by professors for a particular course Since he was unsure of the possible responses for each question, he decided to confer with some professors at a local university to decide on the responses that he could include in the questionnaire Identify the method of qualitative research that Harold used to decide on the responses

Blooms: Apply

55 Zan hires a trained researcher to ask customers questions, listen to and record their

answers, and then pose additional questions and clarify or expand on a particular issue that Zan is dealing with Identify the research method used by Zan

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Blooms: Apply

56 Alex, the marketing manager of a soft-drink company, creates three advertising slogans for a newly developed drink and wants to pick one of the slogans He brings together a small group of consumers, explains to them the idea behind the slogans, and asks for their feedback.Identify the method of research employed by Alex

Researchers usually record the interactions on videotape or audiotape so they can carefully comb through the interviews later to catch any patterns of verbal or nonverbal responses

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Blooms: Apply

57 A marketing firm is trying to develop an ad for one of its clients It selects a group of people, shows them an unbranded visual that is under consideration for the ad, and asks them

to create a story around it A moderator or interviewer encourages participants to go beyond the literal and release some of the more elusive feelings and associations that the visual stirs

up in their imagination In this scenario, which of the following is being used by the

The research method used is similar to that of a projective technique A projective technique is

a type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it

Blooms: Apply

58 Which of the following data collection methods helps firms to gather the most up-to-date news about itself, its products and services, and its competitors?

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Blooms: Remember

Difficulty: Easy

59 Darren wants to know the customers' opinion on the existing products of his company He collects this information by bringing together a few of his important customers and having a detailed discussion with them Identify the method of research used by Darren

on the basis of a predetermined general outline of the topics of interest Researchers usually record the interactions on videotape or audiotape so they can carefully comb through the interviews later to catch any patterns of verbal or nonverbal responses

Blooms: Apply

60 Which of the following primary qualitative data collection techniques is most frequently used?

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61 What type of research methods are observation, in-depth interviews, and focus groups?

Qualitative research is more informal than quantitative research methods and includes

observation, following social media sites, in-depth interviews, focus groups, and projective techniques

Blooms: Remember

Difficulty: Easy

62 Which of the following research methods is the most popular type of quantitative researchmethod that uses a questionnaire to study consumers' attitudes, preferences, behaviours, and knowledge about products and brands?

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Difficulty: Easy

63 Which of the following research methods is more cost effective when compared to other research methods for reaching a large sample of consumers?

C Survey research

Arguably a survey is the most popular type of quantitative, primary data collection method used in marketing research It is widely used to study consumers' attitudes, preferences, behaviours, and knowledge about products and brands

Difficulty: Easy

64 A systematic means of collecting information from people that generally uses a

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