Marketing Management 3Rd Edition - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Marketing Management, 3e (Marshall) Chapter 5 CRM, Big Data, and Marketing Analytics 1) Positioning customer relationship management (CRM) as a comprehensive business model provides the impetus for top management to …
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Marketing Management 3Rd Edition – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Marketing Management, 3e (Marshall)
Chapter 5 CRM, Big Data, and Marketing Analytics
1) Positioning customer relationship management (CRM) as a comprehensive business model provides the impetus for top management to properly support it over the long run.
Answer: TRUE
Explanation: Positioning CRM as a comprehensive business model provides the impetus for top management to properly support it over the long run and for various internal stakeholder groups to have the opportunity to both use it and impact how it is used.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) It is possible today to calculate the total financial returns for each customer.
Answer: TRUE
Explanation: It is possible to actually calculate an estimate of the projected financial returns from a customer, or return on customer investment (ROCI), over the long run.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Customer satisfaction and customer loyalty, two metrics used by brand managers, are metrics used in customer relationship management.
Answer: TRUE
Explanation: Customer satisfaction and loyalty are two extremely popular metrics used by marketing managers to gauge the health of their business and brands.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) One major objective of CRM is customer replacement.
Answer: FALSE
Explanation: The three major objectives of CRM are customer acquisition, customer retention, and customer profitability.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Marketing planning is the first phase of the customer relationship management (CRM) process cycle.
Answer: FALSE
Explanation: Knowledge discovery is the first phase of the customer relationship management (CRM) process cycle.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Data mining helps in segmenting customers in order to target key markets.
Answer: TRUE
Explanation: Data mining is a sophisticated analytical approach to using the massive amounts of data accumulated through the CRM system to develop segments and micro-segments of customers for purposes of either market research or development of market segmentation and target marketing strategies.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) When a salesperson calls on a prospect and meets face to face, it is an example of an interactive touchpoint.
Answer: TRUE
Explanation: Some touchpoints are interactive and allow for such two-way information exchange. That is, they involve direct interface between a customer and a firm’s customer contact person in the form of a salesperson, telemarketer, customer service representative, interactive website, and so on.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) When a customer willingly gives a company sensitive information, such as a social security number, the company is not responsible for the security of this information.
Answer: FALSE
Explanation: In many industries, firms having access to sensitive customer information, such as social security numbers, necessitates more heavy regulation of information usage (financial services is a good example). In such cases, firms may be required to communicate the different ways that customers’ personal information may be used and which of those potential uses a customer can opt out of. In addition, marketing managers must consider regulatory requirements, which may impose constraints such as what information can be conveyed to the firm within a given marketing campaign or at any touchpoint. For any firm that collects large amounts of data through CRM, customers’ perceptions of the organization’s ability to securely handle and protect information can substantially influence trust.
Difficulty: 2 Medium
Topic: The Marketing Dashboard
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Increasing formalization of customer analysis processes is a component of a customer-centric culture.
Answer: TRUE
Explanation: The effort a firm makes toward cultivating a customer-centric culture requires a high degree of formalization within the firm
Difficulty: 2 Medium
Topic: The Marketing Dashboard
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) The four Vs of Big Data are volume, velocity, variety, and visibility.
Answer: FALSE
Explanation: Four characteristics generally characterize Big Data; taken together, these characteristics are commonly referred to as the four Vs of Big Data: volume, velocity, variety, and veracity.
Difficulty: 1 Easy
Topic: The Marketing Dashboard
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Data in a spreadsheet is considered unstructured data.
Answer: FALSE
Explanation: Structured data is typically either numeric or text that is substantially limited to a certain set of input values. This is the type of data that is generally found in relational databases or spreadsheets such as Microsoft Excel or Google Sheets; it is generally organized into tables with columns that make it clear what types of information will be included in each of the entries within a given column.
Difficulty: 2 Medium
Topic: The Marketing Dashboard
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) A POS system is in use when you go to a grocery store and your transaction is collected at the cash register so companies can analyze your purchase behavior.
Answer: TRUE
Explanation: The collection of transaction data from customers through point-of-sales (POS) systems in retail locations, as well as online transaction processing systems, can be tied to other rich information about a customer and used to determine that customer’s relative value.
Difficulty: 2 Medium
Topic: The Marketing Dashboard
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Cross-promotional opportunities are a benefit of collecting data from mobile apps.
Answer: TRUE
Explanation: Data generated from a customer’s use of different mobile applications (apps) can provide insight into cross-promotional opportunities, in addition to other benefits.
Difficulty: 1 Easy
Topic: The Marketing Dashboard
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) Marketing analytics is a new concept brought about by the increased use of mobile phones.
Answer: FALSE
Explanation: Marketing analytics is not technically a new concept, but with the explosion of data available to marketing managers, organizations have become increasingly interested in finding new ways to extract maximum value from the data that they continue to accumulate.
Difficulty: 1 Easy
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) When the online shore store Zappos collects information on the average dollar amount a customer spends in a single transaction, it is using descriptive analytics.
Answer: TRUE
Explanation: An approach using descriptive analytics utilizes data to provide summary insights. Customers who are members of a company’s loyalty program, such as that of the online shoe and clothing shop Zappos, constitute a rich data source for use in descriptive analytics.
Difficulty: 2 Medium
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Of the four marketing analytics approaches, diagnostic analytics is the most complex.
Answer: FALSE
Explanation: Prescriptive analytics is the most complex, followed by predictive analytics, diagnostic analytics, and descriptive analytics.
Difficulty: 1 Easy
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) Jeremiah wants to find out if the new advertising campaign is positively impacting sales. He is likely to use diagnostic analytics.
Answer: TRUE
Explanation: Diagnostic analytics provide insights into the relationships of different factors with the implication being that an understanding of their relationships can have value for future marketing decisions. In this case, Jeremiah want to find out the relationship between advertising and sales.
Difficulty: 2 Medium
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
18) Big Data can be leveraged to optimize the marketing mix.
Answer: TRUE
Explanation: Optimizing the marketing mix is largely dependent on the ability to understand the different effects that the mix elements have on different marketing outcomes. Big Data has enhanced this capability by providing customer-level data in quantities that were not available in the past from sources that provide insights into specific aspects of a customer’s experience with a product or service that heretofore were not easily measured.
Difficulty: 1 Easy
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) It has been demonstrated for some products that exposure to television advertisements influences the number of brand-specific keyword searches conducted online by customers. In this instance, the conclusion drawn is based on attribution.
Answer: TRUE
Explanation: Attribution is determining how to give appropriate credit to different elements of the marketing mix through the measurement of their effects. As long as the organization has access to the required data on marketing mix elements, marketing analytics should be able to help disentangle the various effects that both individual elements of the marketing mix and specific combinations of those elements have on marketing outcomes.
Difficulty: 2 Medium
Topic: Database Marketing
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) About the only thing you know for certain about your first version of a marketing dashboard is that it will likely look the same in a year or two.
Answer: FALSE
Explanation: About the only thing you know for certain about your first version of a marketing dashboard is that it will likely look very different in a year or two.
Difficulty: 1 Easy
Topic: The Marketing Dashboard
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) One potential pitfall of using a dashboard approach to marketing metrics is not insuring that senior management believe in and understand the dashboard.
Answer: TRUE
Explanation: You want the percentage of senior executives who both believe in and understand what the dashboard is presenting to be very high.
Difficulty: 1 Easy
Topic: The Marketing Dashboard
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) Return on marketing investment (ROMI) looks at marketing as an investment, not an expense.
Answer: FALSE
Explanation: ROMI looks at marketing as an expense tied to a percentage of historical or forecasted sales.
Difficulty: 1 Easy
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) The expectation is that ROMI and other metrics of marketing performance will begin to decrease in use, as firms attempt to better quantify marketing’s contribution to various dimensions of organizational success.
Answer: FALSE
Explanation: In spite of its potential problems, the expectation is that ROMI and other metrics of marketing performance will continue to proliferate, as firms home in on attempting to better quantify marketing’s contribution to various dimensions of organizational success.
Difficulty: 2 Medium
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
24) Customer relationship management (CRM) is considered critical largely because of ________.
Answer: C
Explanation: Customer relationship management (CRM) is considered mission-critical largely because of competitive pressures in the marketplace; nobody can afford to be the lone wolf that does not have a handle on the customer side of an enterprise in a competitive space.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) What is one of the three major objectives of customer relationship management?
Answer: E
Explanation: Customer relationship management has three major objectives: customer acquisition, customer retention, and customer profitability.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) Customer loyalty is defined as ________.
Answer: B
Explanation: Customer loyalty means the degree to which an individual will resist switching, or defecting, from one offering to another.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
27) Customer satisfaction is defined as ________.
Answer: B
Explanation: Customer satisfaction means the level of liking an individual has for an offering—that is, to what level is the offering meeting or exceeding the customer’s expectations?
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?
Answer: D
Explanation: Customer profitability relates to increased individual customer margins, while offering the right products at the right time.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-01 Define CRM and articulate its objectives and capabilities.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) What is one of the four elements of the process cycle for customer relationship management?
Answer: A
Explanation: The process cycle for CRM may be divided into the following four elements: (1) knowledge discovery, (2) marketing planning, (3) customer interaction, and (4) analysis and refinement.
Difficulty: 1 Easy
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) Customer touch points and data mining are related to which element of the process cycle for customer relationship management?
Answer: D
Explanation: Customer touch points and data mining are related to the element of knowledge discovery.
Difficulty: 1 Easy
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.
Answer: E
Explanation: Knowledge discovery is the process of analyzing the customer information acquired through various customer touch points.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?
Answer: C
Explanation: The customer interaction phase represents the actual implementation of the customer strategies and programs. This includes the personal selling effort, as well as all other customer-directed interactions.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer: A
Explanation: The analysis and refinement phase of the CRM process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) The Juice and Java company uses information from customers who write on its Twitter feed about its products. This is an example of a(n) ________ touchpoint.
Answer: C
Explanation: Noninteractive touchpoints are those in which the customer may simply provide information on a static website’s data entry form or by mail, without the capability of simultaneous direct interface with a company representative.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
35) To maximize the use of touchpoints, a firm needs to do all of the following EXCEPT________.
Answer: B
Explanation: To maximize a firm’s ability to successfully use touchpoints, an ongoing concerted effort must be undertaken to (1) identify all potential touchpoints, (2) develop specific objectives for what kind of information can be collected at each touchpoint, (3) determine how that information will be collected and ultimately integrated into the firm’s overall customer database, and (4) develop policies on how the information will be accessed and used.
Difficulty: 1 Easy
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) Ichiro is a marketing manager at a consumer products company. Ichiro’s company has started selling consumer information to other sources without informing its customers that it is doing so. This is referred to as the ________ of CRM.
Answer: B
Explanation: Customers must be absolutely certain that the information a firm collects and stores about them will not be used for unintended purposes. Often referred to as the “dark side of CRM,” this issue has become so prominent in some industries that firms are beginning to publicly promote guarantees of nonabuse of stored customer information as a means of attracting customers.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) When Target had a data breach that resulted in the loss of the personal information of 40 million customers, it ________.
Answer: A
Explanation: Target’s marketing managers had to determine how best to rebuild trust after a massive data breach that resulted in the loss of the personal information of about 40 million customers. This also meant quickly altering already planned marketing communication, including postponing a major campaign focused on Target’s corporate citizenship.
Difficulty: 1 Easy
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.
Answer: E
Explanation: At the strategic marketing level, a customer-centric culture includes redefining the selling role within the firm to focus on customer business consultation and solutions.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) ________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.
Answer: B
Explanation: Formalization means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture. With these elements in place, strategies and programs can be successfully developed and executed toward the goals related to customers, accompanied by a high degree of confidence they will yield the desired results.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
40) When Lucifer joined his company as CEO, he instituted an organization-wide focus on understanding the requirements of customers, making sure that everyone in the organization understood the customer marketplace. Lucifer was practicing ________.
Answer: A
Explanation: Organizations practicing a customer orientation place the customer at the core of all aspects of the enterprise and: (1) Instill an organization-wide focus on understanding the requirements of customers. (2) Generate an understanding of the customer marketplace and disseminate that knowledge to everyone in the firm. (3) Align system capabilities internally so that the organization responds effectively to customers with innovative, competitively differentiated, satisfaction-generating products and services.
Difficulty: 2 Medium
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
41) A(n) ________ is a person’s belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.
Answer: E
Explanation: A customer mind-set, which is a person’s belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.
Difficulty: 1 Easy
Topic: Consumer Touchpoints in CRM
Learning Objective: 05-03 Understand the concept of customer touchpoints and why touchpoints are critical in CRM.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) ________ refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources.
Answer: C
Explanation: Big Data refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) ________ relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored.
Answer: A
Explanation: Volume relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) ________ relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.
Answer: B
Explanation: Velocity relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) ________ relates to the different types of data, including text, video, images, and audio, to name a few types.
Answer: C
Explanation: Variety relates to the different types of data, including text, video, images, and audio, to name a few types.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) ________ relates to the reliability and validity of the data.
Answer: D
Explanation: Veracity relates to the reliability and validity of the data.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) When Keung received the report from the interns who conducted surveys in the mall, he was concerned that they were not properly trained because the data did not match any of his other research. Keung was primarily concerned with the ________ of the data.
Answer: D
Explanation: Veracity relates to the reliability and validity of the data.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
48) Bjorn felt that the focus groups did not give him enough quantitative information to make a decision, so he directed his managers to conduct surveys online and look for secondary research. Which characteristic of Big Data is Bjorn trying to achieve?
Answer: C
Explanation: Variety relates to the different types of data, including text, video, images, and audio, to name a few types.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) Mr. Evans is a fan of using Big Data because of its ability to generate a large amount of data that can be organized and quantified. Mr. Evans likes the ________ characteristic of Big Data.
Answer: A
Explanation: Volume relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
50) Fred has a sales meeting coming up and he needs to know sales figures by product and by region as quickly as possible so he can direct his managers on their presentations. Fred needs the ________ characteristic of Big Data.
Answer: B
Explanation: Velocity relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
51) The CFO of BakersMark wasn’t sure about using Big Data, and he couldn’t justify the expense for collecting and storing it. In this case, he was concerned about the ________ of Big Data.
Answer: E
Explanation: Without a clear idea of the value that can be obtained from Big Data, there is a limited justification for the expense of its collection and storage.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
52) ________ data refers to data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation.
Answer: C
Explanation: Structured data is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) When you complete a form online with your name, address, and credit card information in order to make a purchase, you are giving the company ________ data that can populate a relational database or spreadsheet.
Answer: C
Explanation: Structured data is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation. Because of the method by which this data is collected—separate boxes in a webform—it qualifies as structured data that can populate a relational database or spreadsheet.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) After staying in a boutique hotel in Chicago, Marissa posted a picture on her Facebook feed and described how fabulous it was. This kind of information is considered ________ data.
Answer: D
Explanation: Unstructured data may not be immediately actionable in the way that structured data is, but it has become the most common form of data available to organizations, and is a potentially rich source of deep insights on customer behavior and customer/provider relationships. Unstructured data can include posts that people make on social media.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
55) Tamra was so upset about how she was treated when she went on the Eiffel Tower tour that she recorded a video rant and posted it on YouTube. This is an example of ________ data.
Answer: D
Explanation: Unstructured data may not be immediately actionable in the way that structured data is, but it has become the most common form of data available to organizations, and is a potentially rich source of deep insights on customer behavior and customer/provider relationships. Unstructured data may include videos that people make discussing their experiences with products.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
56) ________ data contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make them readily analyzable by automated means for knowledge creation.
Answer: B
Explanation: Semi-structured data fits between structured and unstructured data in the sense that it contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make them readily analyzable by automated means for knowledge creation.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) ________ is a major source of data generation that will continue to grow in importance as more people rely on the Internet.
Answer: D
Explanation: Web-related activity is a major source of data generation that will continue to grow in importance as more people rely on the Internet and various technologies that enable Internet access to search for information, communicate with others, and transact business.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
58) The use of ________ at an early stage in a customer’s exploration of an e-commerce website can provide insight into the state of his or her intentions.
Answer: E
Explanation: The use of clickstream data at an early stage in a customer’s exploration of an e-commerce website can provide insight into the state of his or her intentions (which may in fact change during a single browsing session on the site).
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
59) Which of the six key sources of Big Data is being used when a company collects Big Data on customers in order to sell it to other organizations?
Answer: D
Explanation: Several organizations (commercial entities) collect Big Data on customers in order to sell it to other organizations as their primary business model. Some organizations, such as retailers and credit card processors, engage in this practice to generate additional revenue.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
60) Big Data from ________, such as Cartwheel from Target, can be used to assist customers in finding in-store deals and provides opportunities for retailers to maximize the value of in-store shopping experiences.
Answer: C
Explanation: Mobile apps used to assist customers in finding in-store deals, such as Cartwheel from Target, provide opportunities for retailers to maximize the value of in-store shopping experiences; understand a customer’s response to different price levels for different products, categories, and brands; and gain better insights on how shopping behavior that blends online and offline experiences might differ from traditional offline shopping behavior.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
61) ________ include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.
Answer: E
Explanation: Marketing analytics include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
62) Kalea works for a large global corporation. Her job is to conduct market analyses and manage the computational costs associated with them. Kalea is MOST likely a(n) ________.
Answer: C
Explanation: A marketing analyst is an individual who is familiar with different forms of market and customer data and who is trained to conduct different market analyses, as well as the computational costs associated with those analyses.
Difficulty: 3 Hard
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
63) Into the Abyss is an outdoor clothing company that is just starting to conduct analyses on new data. Which approach would be the appropriate first step before employing more complex analyses?
Answer: A
Explanation: The use of descriptive analytics is generally an appropriate first step to consider before employing more complex (and costly) analyses. The resulting information can provide some initial evidence that an event has occurred that has implications for marketing management decision making.
Difficulty: 3 Hard
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
64) An approach using ________ analytics utilizes data to make predictions about future marketing outcomes of interest.
Answer: B
Explanation: Predictive analytics can be divided into those that use historical measurements of the outcome of interest to determine a pattern that can be extrapolated in the future, and those that make predictions based on the examination of relationships between a set of factors and an outcome of interest that the factors are believed to influence.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
65) An approach using ________ analytics involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.
Answer: C
Explanation: An approach using prescriptive analytics involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
66) What type of marketing analytics is being used when data is used from likes for posts on Facebook?
Answer: B
Explanation: Social media analytics includes likes for posts or shares of posts.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
67) ________ is an analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.
Answer: D
Explanation: Content filtering is an analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
68) ________ is an analytic method that predicts a customer’s preferences for products or services based on the observed preferences of customers who are perceived to be similar.
Answer: A
Explanation: Collaborative filtering predicts a customer’s preferences for products or services based on the observed preferences of customers who are perceived to be similar.
Difficulty: 2 Medium
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
69) Personalization can be achieved at three possible levels of granularity: individual, segment, and ________.
Answer: B
Explanation: The three levels of personalization are mass personalization, where everyone receives the same offering; segment-level personalization, in which groups of customers with similar preferences are identified and an offering is developed for each segment; and individual-level personalization, in which each customer receives an offering customized to his or her specific tastes.
Difficulty: 1 Easy
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
70) The marketing ________ is a comprehensive system providing managers with up-to-the-minute information, including data such as actual sales versus forecast and progress on marketing plan objectives.
Answer: C
Explanation: The marketing dashboard is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation including data on actual sales versus forecast, progress on marketing plan objectives, distribution channel effectiveness, sales force productivity, brand equity evolution, and whatever metrics and information are uniquely relevant to the role of the marketing manager in a particular organization.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
71) What is NOT an element of a great marketing dashboard?
Answer: A
Explanation: An earnings report is not one of the elements of a great marketing dashboard.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) Taking a dashboard approach to marketing metrics goes a long way toward enabling successful marketing planning. However, several potential pitfalls exist in its execution, such as ________.
Answer: C
Explanation: The pitfalls of using the dashboard approach include:
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
73) To compete in today’s market, how often should firms focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips?
Answer: D
Explanation: To successfully compete in today’s market, firms must focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips at all times. This is what a dashboard approach delivers.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) Two primary goals of any dashboard are diagnostic insight and ________.
Answer: C
Explanation: Two primary goals of any dashboard are diagnostic insight and predictive foresight—with a special emphasis on the latter. Some dashboard metrics are diagnostic, looking at what has happened and trying to discern why. Probably the most important metrics you’ll come to rely on, however, are predictive, using the diagnostic experience to better forecast results under various assumptions of circumstances and resource allocations.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
75) One of the benefits of a marketing dashboard is that it fosters a(n) ________ organization that values fact-based, logical decision making.
Answer: B
Explanation: A marketing dashboard fosters a learning organization that values fact-based, logical decision making about allocation of marketing resources to achieve desired organizational results.
Difficulty: 2 Medium
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) A dashboard creates transparency in marketing’s goals, operations, and performance. This in turn ________.
Answer: C
Explanation: A dashboard creates transparency in marketing’s goals, operations, and performance, creating stronger alliances between marketing and the rest of the firm. This elevates marketing’s perceived accountability, earning greater trust and confidence from leadership and other key decision makers and influencers.
Difficulty: 2 Medium
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
77) A marketing dashboard uses graphical representations of crucial metrics in ways that begin to show, often for the first time, the direct, understandable links between marketing initiatives and ________.
Answer: D
Explanation: A dashboard uses graphical representations of crucial metrics in ways that begin to show, often for the first time, the relationships between marketing initiatives and financial results.
Difficulty: 2 Medium
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) In some cases, a marketing dashboard can overly rely on ________, putting the focus on what you already know.
Answer: A
Explanation: A marketing dashboard may lead to over reliance on “inside-out” measurement. Having too many internal measures puts the focus on what you already know instead of on the unpredictably dynamic external marketplace. A focus on monitoring external factors likely to cause significant changes to the marketing plan is what makes a dashboard especially valuable.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) A potential pitfall in marketing dashboards is that a company becomes too focused on tactical measures that may overshadow measures of ________.
Answer: D
Explanation: The use of dashboards may lead to too many tactical metrics; not enough strategic insight. Because of the focus over the past decade on holding marketing accountable for financial results, tactical, or “intermediary,” metrics have proliferated.
Difficulty: 2 Medium
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
80) There are times when marketers forget that marketing is not just a department, and they fail to market the dashboard to ________.
Answer: C
Explanation: Marketing is not just a department, but rather a part of the strategic and cultural fabric of the enterprise. As such, it is important to market the dashboard internally to key stakeholders, not just to marketers.
Difficulty: 1 Easy
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
81) Investment decisions in marketing must consider the following elements EXCEPT ________.
Answer: D
Explanation: Similar to other investment decisions, investment decisions in marketing must consider four basic elements: level of investment, returns, risks, and hurdle rates.
Difficulty: 1 Easy
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
82) ROBI stands for return on ________ investment.
Answer: A
Explanation: Several offshoots of ROMI have been developed that apply the same principles to customers (ROCI), brands (ROBI), and promotion (ROPI).
Difficulty: 1 Easy
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
83) If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.
Answer: A
Explanation: If the company has a marketing budget of $5 million and needs to generate $20 million in revenue, then the ROMI hurdle rate for any low-risk marketing program is 4.0. This means that any marketing program must generate at a minimum $4.00 in revenue for every $1.00 in marketing expenditure.
Difficulty: 2 Medium
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
84) When your boss, Fernando, says that you need a ROMI of 5.0, he is describing the ________ for the marketing investment.
Answer: D
Explanation: The ROMI hurdle rate is defined as the minimum acceptable, expected return on a program at a given level of risk. If a company has a marketing budget of $5 million and needs to generate $20 million in revenue, then the ROMI hurdle rate for any low-risk marketing program is 4.0.
Difficulty: 2 Medium
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
85) Which of the following is one of the basic elements that should be considered in making investment decisions in marketing?
Answer: C
Explanation: Similar to other investment decisions, investment decisions in marketing must consider four basic elements: level of investment, returns, risks, and hurdle rates.
Difficulty: 1 Easy
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
86) One of the problems with ROMI is that it often focuses on ________ rather than looking at the effects or changes in brand equity.
Answer: B
Explanation: ROMI by nature ignores the effect of the marketing assets of the firm (for example, its brands) and tends to lead managers toward a more short-term decision perspective. That is, it typically considers only short-term incremental profits and expenditures without looking at longer-term effects or any change in brand equity.
Difficulty: 1 Easy
Topic: Marketing Return on Investment
Learning Objective: 05-07 Explain return on marketing investment (ROMI), including cautions about its use.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
87) Describe the four elements of the CRM process cycle.
Answer: The process cycle for CRM may be divided into the following four elements: (1) knowledge discovery, (2) marketing planning, (3) customer interaction, and (4) analysis and refinement.
Knowledge discovery is the process of analyzing the customer information acquired through various customer touchpoints.
The next phase in the CRM process cycle is marketing planning, which represents a key use of the output from the knowledge discovery phase.
The customer interaction phase represents the actual implementation of the customer strategies and programs.
Finally, the analysis and refinement phase of the CRM process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Difficulty: 2 Medium
Topic: The CRM Process Cycle
Learning Objective: 05-02 Describe the CRM process cycle.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
88) What is Big Data? How is it relevant to marketing? Describe the four Vs of Big Data.
Answer: Big Data refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources. Four characteristics generally characterize Big Data; taken together, these characteristics are commonly referred to as the four “Vs” of Big Data: volume, velocity, variety, and veracity. Volume relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored. Velocity relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used. Variety relates to the different types of data, including text, video, images, and audio, to name a few types. And veracity relates to the reliability and validity of the data.
For marketing managers, the rise of Big Data has provided significant opportunities to better understand several important elements of customer behavior. These include the varying experiences that make up the process through which customers choose to purchase a product or service, the different touchpoints that customers have with an organization through their use of a product or service, and the ways in which customers interact with and experience different products and services. In fact, some managers often include a fifth “V” when considering the different characteristics of the Big Data their firms possess—value. Without a clear idea of the value that can be obtained from Big Data, there is a limited justification for the expense of its collection and storage.
Difficulty: 3 Hard
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
89) There are six key sources of Big Data that capture data on both potential and current customers to yield actionable insights. Name three of them and give an example of each.
Answer: Six key sources that serve this purpose are business systems, social media platforms, Internet-connected devices, mobile apps, commercial entities, and government entities. Examples will vary.
Difficulty: 3 Hard
Topic: Current Technologies Used in Market Research
Learning Objective: 05-04 Identify and appreciate the types of data used in marketing management decision making.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
90) Compare and contrast the four key types of marketing analytics: descriptive, diagnostic, predictive, and prescriptive.
Answer: An approach using descriptive analytics utilizes data to provide summary insights. Data in raw form is transformed into measures that provide insight into the past and hopefully a basis for further explorations of the data.
An approach using diagnostic analytics utilizes data to explore the relationships between different marketing-relevant factors that influence the organization’s performance either directly or indirectly. There is significant value in understanding how marketing-relevant factors (for example, advertising frequency, advertisement placement, or product pricing) that can be influenced or controlled by the marketing managers can influence important firm outcomes such as product sales or customer satisfaction scores. Diagnostic analytics provide insights into the relationships of different factors with the implication being that an understanding of their relationships can have value for future marketing decisions.
An approach using predictive analytics utilizes data to make predictions about future marketing outcomes of interest. Predictive analytics can be divided into those that use historical measurements of the outcome of interest to determine a pattern that can be extrapolated in the future, and those that make predictions based on the examination of relationships between a set of factors and an outcome of interest that the factors are believed to influence. The value of predictive analytics stems from its ability to help provide greater clarity into the impact that changes that are expected to occur in different marketing-relevant factors may have on related marketing outcomes.
An approach using prescriptive analytics involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.
Difficulty: 3 Hard
Topic: Current Technologies Used in Market Research
Learning Objective: 05-05 Recognize key approaches to marketing analytics.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
91) Describe the two goals of a marketing dashboard, and at least five of the elements that comprise it.
Answer: Two primary goals of any dashboard are diagnostic insight and predictive foresight—with a special emphasis on the latter. Some dashboard metrics are diagnostic, looking at what has happened and trying to discern why. Probably the most important metrics you’ll come to rely on, however, are predictive, using the diagnostic experience to better forecast results under various assumptions about circumstances and resource allocations.
A great marketing dashboard is comprised of the following key elements:
Company goals translated into a set of marketing objectives.
Measurement of financial impact of marketing programs.
Tracking of how marketing assets such as the brand and customer relationships are progressing.
Execution of skills and competencies of the marketing team.
Execution of other business processes necessary to deliver customer value.
Continuous refinement of tools to increase access to and usability of customer insights.
Insight on not only what is happening in the market but also why it is happening.
A diagnostic for prediction, forecasting, and of course remediation.
Ultimately, enhanced return on marketing investment (ROMI).
Difficulty: 3 Hard
Topic: Marketing Dashboards
Learning Objective: 05-06 Understand the concept of a marketing dashboard and how it improves marketing planning for a firm.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
