Principles of Marketing 9th Canadian Edition By Kotler - Test Bank

Principles of Marketing 9th Canadian Edition By Kotler – Test Bank

Instant Download – Complete Test Bank With Answers

Sample Questions Are Posted Below

Chapter 05: Managing Marketing Information to Gain Customer Insights

1.0 – Part I True/False Questions

1.0.1.

Although customer and market insights are important for building customer value and relationships, these insights can be very difficult to obtain.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-01
	Page-Reference:	144
	Skill:	Recall

Answer: b. False

1.0.2.

Most marketers today believe they still lack a sufficient quantity of research data to make high-quality decisions.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-02
	Page-Reference:	145
	Skill:	Recall

Answer: b. False

1.0.3.

The real value of marketing research and information lies not in quantity but in the customer insights provided.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-03
	Page-Reference:	145
	Skill:	Recall

Answer: a. True

1.0.4.

An effective MIS assesses information needs, develops needed information, and helps decision makers use the information to generate and validate actionable customer and market insights.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-04
	Page-Reference:	145
	Skill:	Recall

Answer: a. True

1.0.5.

Today, marketing managers view marketing information not only as an input for making internal decisions but also as an input for external partners.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-05
	Page-Reference:	145
	Skill:	Recall

Answer: a. True

1.0.6.

Too much marketing information can be as harmful as too little.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-06
	Page-Reference:	146
	Skill:	Recall

Answer: a. True

1.0.7.

The company must decide whether the value of market insights gained from additional information is worth the costs of providing it.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-07
	Page-Reference:	146
	Skill:	Recall

Answer: a. True

1.0.8.

Internal databases usually can be accessed more quickly and cheaply than other information sources.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-08
	Page-Reference:	147
	Skill:	Recall

Answer: a. True

1.0.9.

When you glean information from your company’s accounting and sales records, stored in the company’s computer system, you are developing an internal database.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-09
	Page-Reference:	147
	Skill:	Applied

Answer: a. True

1.0.10.

You have just extracted sales and cost data used by the accounting department for preparing financial statements. Most likely, this information is complete and in usable form to build an internal marketing database.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-10
	Page-Reference:	148
	Skill:	Applied

Answer: b. False

1.0.11.

It is important to note that data becomes outdated quickly so keeping the database current requires a major effort.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-11
	Page-Reference:	148
	Skill:	Recall

Answer: a. True

1.0.12.

Companies do not need to actively monitor competitors’ activities.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-12
	Page-Reference:	149
	Skill:	Recall

Answer: b. False

1.0.13.

Good sources of marketing intelligence information include competitors’ annual reports, business publications, trade show exhibits, press releases, advertisements, and webpages.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-13
	Page-Reference:	149
	Skill:	Recall

Answer: a. True

1.0.14.

With all of the legitimate intelligence sources now available, a company does not need to break the law or accepted codes of ethics to get good intelligence.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-14
	Page-Reference:	149
	Skill:	Recall

Answer: a. True

1.0.15.

Your manager asked you to go through three of your competitors’ garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-15
	Page-Reference:	149
	Skill:	Applied

Answer: b. False

1.0.16.

Once the problems and research objectives have been defined, researchers must determine the exact information needed and present it to management.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-16
	Page-Reference:	150
	Skill:	Recall

Answer: b. False

1.0.17.

The exploratory research is to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-17
	Page-Reference:	150
	Skill:	Recall

Answer: b. False

1.0.18.

The descriptive research is to gather preliminary information that will help divine problems and suggest hypotheses.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-18
	Page-Reference:	150
	Skill:	Recall

Answer: b. False

1.0.19.

The causal research is to test hypotheses about cause-and-effect relationships.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-19
	Page-Reference:	151
	Skill:	Recall

Answer: a. True

1.0.20.

Primary data consist of information that already exists somewhere, having been collected for another purpose.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-20
	Page-Reference:	152
	Skill:	Conceptual

Answer: b. False

1.0.21.

SEDAR, an external information source, provides detailed analysis of consumer patterns in 400 product categories in selected markets.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-21
	Page-Reference:	153
	Skill:	Recall

Answer: b. False

1.0.22.

Marketing researchers can conduct their own searches of secondary data sources today by using commercial online databases.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-22
	Page-Reference:	152
	Skill:	Recall

Answer: a. True

1.0.23.

Because secondary data provide good starting points and often help to define problems and research objectives, most companies do not also need to collect primary data.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-23
	Page-Reference:	152
	Skill:	Recall

Answer: b. False

1.0.24.

Secondary data provide a good starting point for research and often help to define research problems and objectives.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-24
	Page-Reference:	152
	Skill:	Recall

Answer: a. True

1.0.25.

Just about anything can be observed, especially feelings, attitudes and motives, or private behaviour.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-25
	Page-Reference:	154
	Skill:	Recall

Answer: b. False

1.0.26.

Ethnographic research is a form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments.”

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-26
	Page-Reference:	156
	Skill:	Conceptual

Answer: a. True

1.0.27.

In group interviewing, participants normally are paid a small sum for attending.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-27
	Page-Reference:	158
	Skill:	Recall

Answer: a. True

1.0.28.

Online marketing research is collecting secondary data online through Internet surveys, online focus group, and so on.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-28
	Page-Reference:	159
	Skill:	Conceptual

Answer: b. False

1.0.29.

As response rates for traditional survey approaches decline and costs increase, the Web is quickly replacing mail and the telephone as the dominant data collection methodology.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-29
	Page-Reference:	160
	Skill:	Recall

Answer: a. True

1.0.30.

According to the text, online research now accounts for about 50 percent of all survey research done in the United States.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-30
	Page-Reference:	160
	Skill:	Recall

Answer: a. True

1.0.31.

The most important issue facing online researchers is the lack of a broad cross section of consumers who have access to the Internet.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-31
	Page-Reference:	161
	Skill:	Recall

Answer: b. False

1.0.32.

Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviours of the larger population.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-32
	Page-Reference:	162
	Skill:	Recall

Answer: a. True

1.0.33.

A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples.

a	True
b	False

	Difficulty:	3
	QuestionID:	05-1-33
	Page-Reference:	162-163
	Skill:	Recall

Answer: b. False

1.0.34.

The questionnaire is by far the most common research instrument.

a	True
b	False

	QuestionID:	05-1-34
	Page-Reference:	165
	Skill:	Recall

Answer: a. True

1.0.35.

Open-ended survey questions are particularly useful in exploratory research.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-35
	Page-Reference:	165
	Skill:	Recall

Answer: a. True

1.0.36.

Interpretation of market research data should be the responsibility of the researchers, not the marketing managers.

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-36
	Page-Reference:	167
	Skill:	Recall

Answer: b. False

1.0.37.

You have just identified the “touch points” of the 400 best customers in your database. At this point, you want to manage detailed information about each of them to maximize customer loyalty. You should use customer relationship management (CRM).

a	True
b	False

	Difficulty:	2
	QuestionID:	05-1-37
	Page-Reference:	169
	Skill:	Applied

Answer: a. True

1.0.38.

International research has different steps than domestic research.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-38
	Page-Reference:	171
	Skill:	Recall

Answer: b. False

1.0.39.

Cultural differences from country to country cause additional problems for international researchers.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-39
	Page-Reference:	172
	Skill:	Recall

Answer: a. True

1.0.40.

Big companies have now appointed chief privacy officers (CPOs) whose jobs are to safeguard the privacy of the companies.

a	True
b	False

	Difficulty:	1
	QuestionID:	05-1-40
	Page-Reference:	174
	Skill:	Recall

Answer: b. False

2.0 – Part II Multiple Choice Questions

2.0.1.

Despite the data glut that marketing managers receive, they frequently complain that they lack ________.

	enough information of the right kind
	timely information
	accurate information
	reliable information
	valid information

	Difficulty:	2
	QuestionID:	05-2-01
	Page-Reference:	145
	Skill:	Recall

Answer: enough information of the right kind

2.0.2.

Fresh understandings of customers and the marketplace are derived from that become(s) the basis for creating customer value and relationships.

	business decisions
	marketing strategies
	marketing information
	government policies
	market demand

	Difficulty:	3
	QuestionID:	05-2-02
	Page-Reference:	145
	Skill:	Conceptual

Answer: marketing information

2.0.3.

A marketing information system (MIS) consists of people and procedures to assess information needs, develop the needed information, and_______________________.

	experiment to develop information
	test-market the information
	help decision makers analyze and use the information
	critique the needed information
	question the needed information

	Difficulty:	1
	QuestionID:	05-2-03
	Page-Reference:	145
	Skill:	Conceptual

Answer: help decision makers analyze and use the information

2.0.4.

A good MIS balances the information users’ ______ against ______ and finally what is ______.

	needs; their likes; feasible
	likes; what they can afford; needed
	needs; what they can afford; useful
	desire; their actual needs; feasible to offer
	use; what they have to use; available

	Difficulty:	3
	QuestionID:	05-2-04
	Page-Reference:	146
	Skill:	Recall

Answer: desire; their actual needs; feasible to offer

2.0.5.

Marketers must weigh carefully the _____ of additional information against the benefits resulting from it.

	organization
	ethical issues
	creativity
	costs
	validity

	Difficulty:	1
	QuestionID:	05-2-05
	Page-Reference:	146
	Skill:	Recall

Answer: costs

2.0.6.

Four common sources of internal data include the __________, operations, the sales force, and the marketing department.

	owners
	stockholders
	accounting department
	competition
	Web

	Difficulty:	2
	QuestionID:	05-2-06
	Page-Reference:	147
	Skill:	Recall

Answer: accounting department

2.0.7.

A(n) ________database can usually provide marketing information more quickly and cheaply than other information sources.

	external
	LexisNexis
	intermediate
	internal
	Hoover’s

	Difficulty:	1
	QuestionID:	05-2-07
	Page-Reference:	147
	Skill:	Recall

Answer: internal

2.0.8.

Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases.

	online
	internal
	external
	public
	search service

	Difficulty:	1
	QuestionID:	05-2-08
	Page-Reference:	147
	Skill:	Applied

Answer: internal

2.0.9.

Your marketing department is attempting to improve strategic decision making, track competitors’ actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use?

	Internal databases
	External databases only
	Company reports only
	Marketing intelligence
	The Internet

	Difficulty:	2
	QuestionID:	05-2-09
	Page-Reference:	148
	Skill:	Applied

Answer: Marketing intelligence

2.0.10.

The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment is known as _______________.

	marketing data
	competitive intelligence
	sales management
	customer intelligence
	competitive marketing intelligence

	Difficulty:	1
	QuestionID:	05-2-10
	Page-Reference:	148
	Skill:	Conceptual

Answer: competitive marketing intelligence

2.0.11.

Which of the following statements regarding marketing intelligence is true?

	The advantage of using competitive intelligence is negligible.
	All marketing intelligence is available for free.
	Marketing intelligence relies upon privately held information.
	Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors’ activities.
	Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands.

	Difficulty:	3
	QuestionID:	05-2-11
	Page-Reference:	148
	Skill:	Recall

Answer: Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands.

2.0.12.

Through which of these sources of information is a competitor most likely to reveal intelligence information?

	Annual reports
	Ad hoc exhibits
	URLs
	Product releases
	Internal marketing conferences

	Difficulty:	1
	QuestionID:	05-2-12
	Page-Reference:	149
	Skill:	Recall

Answer: Annual reports

2.0.13.

Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?

	LexisNexis
	ProQuest
	Dialog
	System for Electronic Document Analysis and Retrieval (SEDAR)
	Hoover’s

	Difficulty:	2
	QuestionID:	05-2-13
	Page-Reference:	149
	Skill:	Recall

Answer: System for Electronic Document Analysis and Retrieval (SEDAR)

2.0.14.

Marketing research is the systematic design, collection, analysis, and reporting of ______________ relevant to a specific marketing situation facing an organization.

	marketing information systems
	intelligence
	data
	competitive intelligence
	causality research

	Difficulty:	1
	QuestionID:	05-2-14
	Page-Reference:	150
	Skill:	Conceptual

Answer: data

2.0.15.

Defining the problem and research objectives is the _______ step in the marketing research process.

	third
	first
	second
	fourth
	last

	Difficulty:	2
	QuestionID:	05-2-15
	Page-Reference:	150-151
	Skill:	Recall

Answer: first

2.0.16.

The four-step marketing research process includes defining the problems and research objectives; ________________; implementing the research plan; and interpreting and reporting the findings.

	developing the research budget
	choosing the research agency
	choosing the research method
	developing the research plan
	comparing and contrasting primary and secondary data

	Difficulty:	2
	QuestionID:	05-2-16
	Page-Reference:	150-151
	Skill:	Recall

Answer: developing the research plan

2.0.17.

Causal research is used by many companies to better understand customers by __________.

	describing marketing problems or situations
	gathering preliminary information that will help define problems
	uncovering information at the outset in an unstructured way
	testing hypotheses about cause-and-effect relationships
	quantifying observations that produce insights unobtainable through other forms of research

	Difficulty:	1
	QuestionID:	05-2-17
	Page-Reference:	151
	Skill:	Conceptual

Answer: testing hypotheses about cause-and-effect relationships

2.0.18.

Companies will often ask their managers to start with ________ research.

	exploratory
	descriptive
	cursory
	precursory
	causal

	Difficulty:	3
	QuestionID:	05-2-18
	Page-Reference:	151
	Skill:	Recall

Answer: exploratory

2.0.19.

Often, the hardest step to take when using the marketing research process is _________________.

	developing the research plan
	determining a research approach
	selecting a research agency
	defining the problem and research objectives
	obtaining marketing intelligence

	Difficulty:	2
	QuestionID:	05-2-19
	Page-Reference:	150
	Skill:	Applied

Answer: defining the problem and research objectives

2.0.20.

To help define the problem and suggest hypotheses, researchers will often use ________ research to gather preliminary information.

	secondary
	descriptive
	causal
	primary
	exploratory

	Difficulty:	1
	QuestionID:	05-2-20
	Page-Reference:	150
	Skill:	Recall

Answer: exploratory

2.0.21.

Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference?

	Exploratory
	Descriptive
	Causal
	Experimental
	Secondary

	Difficulty:	2
	QuestionID:	05-2-21
	Page-Reference:	150
	Skill:	Applied

Answer: Descriptive

2.0.22.

You are about to test hypotheses about decreasing sales in certain markets and their causes. You are involved in what type of research?

	Exploratory
	Descriptive
	Causal
	Focus group
	Ethnographic

	Difficulty:	1
	QuestionID:	05-2-22
	Page-Reference:	151
	Skill:	Applied

Answer: Causal

2.0.23.

You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research.

	causal
	experimental
	secondary
	survey
	exploratory

	Difficulty:	1
	QuestionID:	05-2-23
	Page-Reference:	150
	Skill:	Applied

Answer: exploratory

2.0.24.

Information that already exists but was collected for a different purpose is called ________.

	primary
	tertiary
	secondary
	redundant
	old

	Difficulty:	1
	QuestionID:	05-2-24
	Page-Reference:	152
	Skill:	Conceptual

Answer: secondary

2.0.25.

In the second step of the marketing research process, research objectives should be translated into specific ________.

	marketing goals
	information needs
	dollar amounts
	research methods
	information sources

	Difficulty:	1
	QuestionID:	05-2-25
	Page-Reference:	151
	Skill:	Recall

Answer: information needs

2.0.26.

For secondary data to be useful to marketers, it must be relevant, current, impartial, and ________.

	complete
	accurate
	inexpensive
	collected before secondary data
	experimental

	Difficulty:	2
	QuestionID:	05-2-26
	Page-Reference:	152
	Skill:	Recall

Answer: accurate

2.0.27.

Information collected from online databases is an example of ________ data.

	primary
	secondary
	observational
	experimental
	ethnographic

	Difficulty:	2
	QuestionID:	05-2-27
	Page-Reference:	152
	Skill:	Recall

Answer: secondary

2.0.28.

Which form of data below can usually be obtained more quickly and at a lower cost than the others?

	Primary
	Survey research
	Experimental research
	Secondary
	Observational research

	Difficulty:	2
	QuestionID:	05-2-28
	Page-Reference:	152
	Skill:	Recall

Answer: Secondary

2.0.29.

Secondary data are ________.

	collected mostly via surveys
	expensive to obtain
	never purchased from outside suppliers
	always necessary to support primary data
	not always very usable

	Difficulty:	2
	QuestionID:	05-2-29
	Page-Reference:	152
	Skill:	Recall

Answer: not always very usable

2.0.30.

Ethnographic research can be very helpful because it _____________________.

	is conducted within traditional focus groups.
	is a research option when observation is not possible.
	provides researchers with secondary data.
	is most popular in the service sector.
	provides greater insight into customer behaviour than interviews do.

	Difficulty:	3
	QuestionID:	05-2-30
	Page-Reference:	156
	Skill:	Recall

Answer: is a research option when observation is not possible.

2.0.31.

Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide?

	Observational
	Survey
	Questionnaire
	Focus groups
	Personal interviews

	Difficulty:	2
	QuestionID:	05-2-31
	Page-Reference:	154
	Skill:	Recall

Answer: Observational

2.0.32.

Ethnographic research ________.

	comes from traditional focus groups
	is gathered where people live and work
	provides secondary data
	is most popular in the service sector
	provides data to marketers when observation is impossible

	Difficulty:	2
	QuestionID:	05-2-32
	Page-Reference:	156
	Skill:	Recall

Answer: is gathered where people live and work

2.0.33.

Walmart sends a trained observer to watch and interact with customers as they shop in a Walmart store. This is an example of ________.

	secondary research
	survey research
	ethnographic research
	experimental research
	descriptive research

	Difficulty:	2
	QuestionID:	05-2-33
	Page-Reference:	156
	Skill:	Applied

Answer: ethnographic research

2.0.34.

When ZIBA designers, looking for ideas on how to craft a shower-cleaning tool, spent 10 days in people’s homes, watching consumers wash shower stalls, they were conducting ________ research.

	survey
	experimental
	secondary
	ethnographic
	personal

	Difficulty:	2
	QuestionID:	05-2-34
	Page-Reference:	156
	Skill:	Applied

Answer: ethnographic

2.0.35.

Maryann Rose is conducting research to determine consumers’ personal grooming habits. Because of the personal nature of the survey questions about this topic, Maryann wants to select the contact method that is most likely to encourage respondents to answer honestly. Which contact method should Maryann select?

	Mail questionnaires
	Telephone interviews
	Individual interviews
	Focus group interviews
	Online panels

	Difficulty:	3
	QuestionID:	05-2-35
	Page-Reference:	158
	Skill:	Applied

Answer: Mail questionnaires

2.0.36.

Harvey’s came out with a new hamburger and released it in two different cities with two different price points. Marketers at Harvey’s then analyzed the sales results at the two different price points. This information was used to help them set a nationwide price for the new offering. This is an example of ________.

	observational research
	behavioural research
	qualitative research
	experimental research
	survey research

	Difficulty:	2
	QuestionID:	05-2-36
	Page-Reference:	157
	Skill:	Applied

Answer: experimental research

2.0.37.

Survey research, though used to obtain many kinds of information in a variety of situations, is best suited for gathering ________ information.

	interpersonal
	causal
	exploratory
	descriptive
	creative

	Difficulty:	2
	QuestionID:	05-2-37
	Page-Reference:	157
	Skill:	Recall

Answer: descriptive

2.0.38.

According to the textbook, the major advantage of survey research is its ________.

	flexibility
	interactive design
	ease and speed to complete
	duplicability
	simplicity

	Difficulty:	2
	QuestionID:	05-2-38
	Page-Reference:	157
	Skill:	Recall

Answer: flexibility

2.0.39.

Experimental research is best suited for gathering ________ information.

	exploratory
	causal
	interactive
	preferential
	descriptive

	Difficulty:	2
	QuestionID:	05-2-39
	Page-Reference:	157
	Skill:	Recall

Answer: causal

2.0.40.

ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has a disadvantage of .

	low cost per respondent.
	encouraging more honest answers.
	having an average response rate
	no interviewer to bias respondents’ answers
	collecting large amounts of information

	Difficulty:	3
	QuestionID:	05-2-40
	Page-Reference:	158
	Skill:	Recall

Answer: having an average response rate

2.0.41.

Which of the following contact methods has the poorest response rate?

	Mail
	Telephone
	Personal
	Online
	Individual

	Difficulty:	2
	QuestionID:	05-2-41
	Page-Reference:	158
	Skill:	Recall

Answer: Mail

2.0.42.

Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she utilizes low-cost or no-cost methods to gather research data. One method that works very well for her is to change the themes in her local newspaper and radio advertising and watch the result. Juanita is using ________ to gather data for marketing decisions.

	informal surveys
	experiments
	guess work
	logic-directed research
	secondary sources

	Difficulty:	2
	QuestionID:	05-2-42
	Page-Reference:	157
	Skill:	Applied

Answer: experiments

2.0.43.

Which of the following has the highest rating for speed of data collection and compilation?

	Open-ended questionnaires
	Personal interviews
	Mail surveys
	Internet surveys
	Ethnographic research

	Difficulty:	3
	QuestionID:	05-2-43
	Page-Reference:	158
	Skill:	Recall

Answer: Internet surveys

2.0.44.

Which of the following is an advantage of telephone interviews?

	They are more expensive to conduct than mail questionnaires.
	Interviewer bias is introduced.
	Under time pressures, some interviewers might cheat.
	Interviewers can explain some questions and probe more deeply on others.
	Potential respondents may refuse to participate.

	Difficulty:	3
	QuestionID:	05-2-44
	Page-Reference:	160
	Skill:	Recall

Answer: Interviewers can explain some questions and probe more deeply on others.

2.0.45.

Which of the following contact methods is generally the most flexible?

	Mail
	Telephone
	Internet surveys
	Online panels
	Personal

	Difficulty:	3
	QuestionID:	05-2-45
	Page-Reference:	158
	Skill:	Recall

Answer: Personal

2.0.46.

Which form of marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements?

	Individual interviewing
	Internet surveys
	Telephone surveys
	Ethnographic research
	Observational research

	Difficulty:	2
	QuestionID:	05-2-46
	Page-Reference:	158
	Skill:	Recall

Answer: Individual interviewing

2.0.47.

Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be difficult to ________.

	find enough secondary data to support the findings
	orchestrate co-operation among participants
	encourage honest responses to questions
	generalize from the results
	find a representative sample

	Difficulty:	2
	QuestionID:	05-2-47
	Page-Reference:	159
	Skill:	Recall

Answer: generalize from the results

2.0.48.

Beyond their advantage, web-based surveys also tend to be more interactive and engaging, easier to complete, and less intrusive than traditional phone or mail surveys.

	speed
	cost
	speed and cost
	control over respondents
	instantaneous results

	Difficulty:	2
	QuestionID:	05-2-48
	Page-Reference:	160
	Skill:	Recall

Answer: speed and cost

2.0.49.

Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct; however, the sample size for her research is quite large. Which of the following methods of contact would provide Tasoula with the most cost-effective way to reach a large sample of potential customers?

	Telephone surveys
	Personal interviews
	Internet surveys
	Mail surveys
	Focus group interviews

	Difficulty:	2
	QuestionID:	05-2-49
	Page-Reference:	160
	Skill:	Applied

Answer: Internet surveys

2.0.50.

Which of the following is a disadvantage of web-based research?

	Speed
	Low costs
	Almost instantaneous results
	Control over who respondents are
	Ease of administration

	Difficulty:	2
	QuestionID:	05-2-50
	Page-Reference:	161
	Skill:	Recall

Answer: Control over who respondents are

2.0.51.

Which of the following is a disadvantage of online focus groups?

	Participants must be in a central location.
	Online focus groups can lack the real-world dynamics of more personal approaches.
	Results take longer to tabulate and analyze.
	The cost of online focus groups is greater than that of most other qualitative research methods.
	The format of focus groups can be varied.

	Difficulty:	2
	QuestionID:	05-2-51
	Page-Reference:	161
	Skill:	Recall

Answer: Online focus groups can lack the real-world dynamics of more personal approaches.

2.0.52.

Del Monte has created an ________ called “I Love My Dog”; this online community allows company-selected dog enthusiasts to complete product-related polls, chat with product developers, and provide feedback about specific products.

	online experiment
	online social network
	Internet survey
	immersion group
	expert panel

	Difficulty:	2
	QuestionID:	05-2-52
	Page-Reference:	161
	Skill:	Applied

Answer: online social network

2.0.53.

Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.

	group
	target group
	population
	sample
	audience

	Difficulty:	1
	QuestionID:	05-2-53
	Page-Reference:	162
	Skill:	Recall

Answer: sample

2.0.54.

You generally need to ask three questions when developing a sampling plan. Which of the following questions is part of that process?

	Who should be left out of the sample (sampling exclusion)?
	How should we contact the sample (sampling approach)?
	Why should respondents be selected (sampling justification)?
	How should participants be chosen (sampling procedure)?
	How much should we pay the participants (sampling costing)?

	Difficulty:	3
	QuestionID:	05-2-54
	Page-Reference:	162-164
	Skill:	Recall

Answer: How should participants be chosen (sampling procedure)?

2.0.55.

Behavioural targeting, the practice of ________, is being used by more and more companies.

	tracking customers’ activities and rewarding customer loyalty
	managing customer relationships
	mining and analyzing data from data warehouses
	tracking consumers’ online movements and using this information to target ads to them
	observing and interacting with consumers in their natural environments

	Difficulty:	3
	QuestionID:	05-2-55
	Page-Reference:	163
	Skill:	Recall

Answer: tracking consumers’ online movements and using this information to target ads to them

2.0.56.

What is a major drawback of probability sampling?

	It can be money and time consuming.
	The sampling error cannot be measured.
	The most difficult population from which to obtain information is chosen.
	Everyone has an equal chance of selection.
	Marketers must rely on the judgment of the researcher in respondent selection.

	Difficulty:	3
	QuestionID:	05-2-56
	Page-Reference:	164
	Skill:	Recall

Answer: It can be money and time consuming.

2.0.57.

What are the two main types of research instruments used to collect primary data?

	Surveys and samples
	Questionnaires and mechanical devices
	Focus groups and online databases
	Online panels and experiments
	Personal interviews and online marketing research

	Difficulty:	1
	QuestionID:	05-2-57
	Page-Reference:	164-165
	Skill:	Recall

Answer: Questionnaires and mechanical devices

2.0.58.

The most common research instrument used is the ________.

	mechanical device
	live interviewer
	questionnaire
	focus group
	people meter

	Difficulty:	2
	QuestionID:	05-2-58
	Page-Reference:	165
	Skill:	Recall

Answer: questionnaire

2.0.59.

You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data.

	simple random sample
	mechanical device
	stratified random sample
	cluster sample
	convenience sample

	Difficulty:	3
	QuestionID:	05-2-59
	Page-Reference:	162
	Skill:	Applied

Answer: stratified random sample

2.0.60.

Loft Industries sells roof trusses to contractors and builders and would like to conduct research to determine how customers assess customer service. Which of the following research instruments would be best for this firm?

	People meters
	Checkout scanners
	Questionnaires
	Eye cameras
	BlueEyes technology

	Difficulty:	2
	QuestionID:	05-2-60
	Page-Reference:	165
	Skill:	Applied

Answer: Questionnaires

2.0.61.

Which of the following is good advice about creating research questionnaires for Mark Hammel, research specialist at New Wave Data, to follow?

	Use care in the wording and ordering of questions.
	Questions do not have to be arranged in any given order.
	Ask difficult questions in the beginning to “weed out” uninterested respondents.
	Ask personal questions in the middle of the instrument.
	Use impressive vocabulary to convey the importance of the questionnaire.

	Difficulty:	3
	QuestionID:	05-2-61
	Page-Reference:	165
	Skill:	Applied

Answer: Use care in the wording and ordering of questions.

2.0.62.

Marketing information is only valuable when it is used to ________.

	simplify management’s job
	identify a target market
	please shareholders
	increase efficiencies in the supply chain
	make better marketing decisions

	Difficulty:	2
	QuestionID:	05-2-62
	Page-Reference:	169
	Skill:	Recall

Answer: make better marketing decisions

2.0.63.

Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try?

	Customer satisfaction management
	More sophisticated hardware
	Customer relationship management
	Decreased marketing intelligence
	A marketing information system

	Difficulty:	1
	QuestionID:	05-2-63
	Page-Reference:	167
	Skill:	Recall

Answer: Customer relationship management

2.0.64.

Which of the following is true about customer relationship management (CRM)?

	It relies on information produced through primary research.
	Its aim is to maximize profit margins.
	Its aim is to increase the efficiency of each customer touch point.
	Its aim is to maximize customer loyalty.
	Most companies who first implemented CRM have greatly benefited from the results.

	Difficulty:	2
	QuestionID:	05-2-64
	Page-Reference:	167
	Skill:	Recall

Answer: Its aim is to maximize customer loyalty.

2.0.65.

What is the purpose of a data warehouse?

	To organize internal and external data by relevance
	To gather and integrate information a company already has
	To interpret data
	To analyze data
	To identify and discard outdated data

	Difficulty:	2
	QuestionID:	05-2-65
	Page-Reference:	167-168
	Skill:	Recall

Answer: To gather and integrate information a company already has

2.0.66.

In customer relationship management (CRM), findings about customers discovered through ________ techniques often lead to marketing opportunities.

	data warehousing
	data mining
	customer strategy
	customer loyalty management
	value network

	Difficulty:	2
	QuestionID:	05-2-66
	Page-Reference:	167-168
	Skill:	Recall

Answer: data mining

2.0.67.

What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more?

	An intranet
	An extranet
	The Internet
	Marketing research
	Marketing intelligence

	Difficulty:	2
	QuestionID:	05-2-67
	Page-Reference:	169
	Skill:	Recall

Answer: An intranet

2.0.68.

Michael Quinones is a customer service agent for a national car rental business. He has access to the company’s intranet, which provides performance reports, shared work documents, contact information, and detailed information about customers. Which of the following is this access most likely to enable Michael to do during interactions with customers?

	Analyze primary data
	Use data mining techniques
	Share information with value-network partners
	Reward customer loyalty with an upgrade or discount
	Evaluate marketing intelligence

	Difficulty:	2
	QuestionID:	05-2-68
	Page-Reference:	169-170
	Skill:	Applied

Answer: Reward customer loyalty with an upgrade or discount

2.0.69.

When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using ________.

	experiments
	informal surveys
	observation
	marketing intelligence
	direct marketing

	Difficulty:	2
	QuestionID:	05-2-69
	Page-Reference:	171
	Skill:	Applied

Answer: informal surveys

2.0.70.

The availability of which of the following is most problematic in international marketing research?

	Primary data
	Research specialists
	Secondary data
	Intelligence limitations
	Consumers willing to answer survey questions

	Difficulty:	2
	QuestionID:	05-2-70
	Page-Reference:	171
	Skill:	Recall

Answer: Secondary data

2.0.71.

Because of the scarcity of good secondary data, international researchers often must collect their own primary data. An initial problem with this collection is developing good ________.

	samples
	research firms
	customer relationships with nationals
	relations with channel members
	analytical models

	Difficulty:	2
	QuestionID:	05-2-71
	Page-Reference:	172
	Skill:	Recall

Answer: samples

2.0.72.

Most data collection in Mexico is done _______.

	by telephone
	via mail
	online
	through focus groups
	door-to-door

	Difficulty:	2
	QuestionID:	05-2-72
	Page-Reference:	172
	Skill:	Recall

Answer: door-to-door

2.0.73.

Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________.

	risk of error
	foreign trade
	response rate
	likelihood of using a smaller sample
	reliance on primary data

	Difficulty:	2
	QuestionID:	05-2-73
	Page-Reference:	172
	Skill:	Recall

Answer: risk of error

2.0.74.

Which of the following is most true about conducting international marketing research?

	It is on the decrease due to high costs.
	Cultural differences are not great enough to skew results.
	There is a lack of qualified research personnel.
	Despite the costs of international research, the costs of not doing it are higher.
	Interpretations of quality are consistent among different countries.

	Difficulty:	3
	QuestionID:	05-2-74
	Page-Reference:	173
	Skill:	Recall

Answer: Despite the costs of international research, the costs of not doing it are higher.

2.0.75.

Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents. Which of the following should Malaya do before administering this questionnaire to a sample of the market?

	Make sure that the survey includes both open-ended and closed-ended questions
	Decide whether to focus on primary or secondary data
	Determine which type of research instrument to use
	Have the questionnaire translated back into English to check for accuracy
	Determine whether to focus on descriptive or causal objectives

	Difficulty:	2
	QuestionID:	05-2-75
	Page-Reference:	172
	Skill:	Applied

Answer: Have the questionnaire translated back into English to check for accuracy

2.0.76.

Consumers are most likely to provide research information when researchers provide ________.

	coupons
	value for the exchange
	prizes
	rebates
	social network membership

	Difficulty:	2
	QuestionID:	05-2-76
	Page-Reference:	174
	Skill:	Recall

Answer: value for the exchange

2.0.77.

Many major companies have created the position of ________ to address concerns about the privacy of customers.

	chief customer loyalty manager
	chief behavioural analyst
	chief privacy officer
	ethics manager
	data warehouse manager

	Difficulty:	2
	QuestionID:	05-2-77
	Page-Reference:	174
	Skill:	Recall

Answer: chief privacy officer

2.0.78.

To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________.

	customer relationship management guidelines
	behavioural targeting “Do Not Track” lists
	chief privacy officer job descriptions
	codes of research ethics
	bans against using “cookies”

	Difficulty:	2
	QuestionID:	05-2-78
	Page-Reference:	175
	Skill:	Recall

Answer: codes of research ethics

2.0.79.

Refer to the scenario below to answer the following question.

Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.

In this scenario, which of the following are examples of marketing intelligence?

	Responses to the surveys Jason sent
	Competitors’ pamphlets
	Data mining
	Focus group conclusions
	Online social network comments

	Difficulty:	3
	QuestionID:	05-2-79
	Page-Reference:	148
	Skill:	Applied

Answer: Competitors’ pamphlets

2.0.80.

Jason wanted to better understand how his customers assess service quality. This is an example of a ________.

	marketing research problem
	research objective
	research method
	research plan
	research approach

	Difficulty:	2
	QuestionID:	05-2-80
	Page-Reference:	150
	Skill:	Applied

Answer: research objective

2.0.81.

In this scenario, which of the following is an example of primary data?

	The list of local corporations from the Chamber of Commerce
	Competitor information gleaned from pamphlets
	Responses to the 75 surveys
	The names of the 75 companies that received surveys
	Competitors’ websites

	Difficulty:	1
	QuestionID:	05-2-81
	Page-Reference:	154
	Skill:	Applied

Answer: Responses to the 75 surveys

2.0.82.

Jason may be able to learn more about why A-1 Cleaning has seen a decline in demand for office cleaning by sending trained observers to watch and interact with his potential customers in their “natural habitat.” This type of research is called ____________.

	secondary
	focus group
	ethnographic
	mechanical
	experimental

	Difficulty:	3
	QuestionID:	05-2-82
	Page-Reference:	156
	Skill:	Applied

Answer: ethnographic

2.0.83.

A-1 Cleaning could use the Web as a survey medium by including a questionnaire on its website and offering incentives for completing it. This is ________ research.

	online
	secondary
	ethnographic
	experimental
	observational

	Difficulty:	3
	QuestionID:	05-2-83
	Page-Reference:	159-160
	Skill:	Applied

Answer: online

2.0.84.

Of the 141 companies on the list, Jason chose to survey only 75 of them. Jason sent surveys to small companies and large companies. If Jason selected survey recipients randomly from the groups of small companies and large companies, he was using a ________.

	simple random sample
	judgment sample
	convenience sample
	stratified random sample
	quota sample

	Difficulty:	3
	QuestionID:	05-2-84
	Page-Reference:	162
	Skill:	Applied

Answer: stratified random sample

2.0.85.

Jason had to consider the many contact methods available with which to administer his survey. Which contact method would offer the best control over interviewer effects?

	Mail
	Phone
	Online
	In person
	Focus group

	Difficulty:	3
	QuestionID:	05-2-85
	Page-Reference:	158
	Skill:	Applied

Answer: Mail

2.0.86.

If Jason wants to be sure that respondents can answer questions in their own words, his questionnaire should feature which type of questions?

	Open-ended
	Personal
	Factual
	Quantitative
	Closed-ended

	Difficulty:	3
	QuestionID:	05-2-86
	Page-Reference:	165
	Skill:	Applied

Answer: Open-ended

2.0.87.

Jason could capture information at every possible customer touchpoint. What strategy could Jason use to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?

	Mechanical research
	Online databases
	Ethnographics
	Customer relationship management
	Marketing intelligence networks

	Difficulty:	3
	QuestionID:	05-2-87
	Page-Reference:	167
	Skill:	Applied

Answer: Customer relationship management

3.0 – Part III Short Answer Questions

	3.0.1.		Discuss the makeup and functions of a marketing information system (MIS).

	Difficulty:	2
	QuestionID:	05-3-01
	Page-Reference:	145
	Skill:	Applied

Answer: A typical MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. First, it interacts with information users to assess information needs. Next, it develops needed information from internal company databases, marketing intelligence activities, and marketing research. Finally, it helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships.

	3.0.2.		Briefly explain the following statement: “Too much information can be as harmful as too little.”

	Difficulty:	3
	QuestionID:	05-3-02
	Page-Reference:	146
	Skill:	Applied

Answer: Too much information may prohibit marketers from clearly applying the data/information to their objectives; excess information may also lead marketers to lose sight of their objectives.

	3.0.3.		Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Explain some common sources for each of these.

	Difficulty:	3
	QuestionID:	05-3-03
	Page-Reference:	147-167
	Skill:	Applied

Answer: Internal databases are built upon records of consumer and market information data sources within the company network. For example, the accounting department provides records of sales, costs, and cash flows; operations reports on production-related issues; sales and marketing provides data on resellers, competitors, buyer behaviour, and the industry; and marketing provides information on customer transactions, demographics, and buying behaviour. Internal data are cheaper sources that are easy to access. Marketing intelligence is a collection and analysis of publicly available data about consumers, competitors, and developments in the industry. It can come from quizzing employees, studying competitors’ ads and annual reports, analyzing competitors’ products, monitoring Internet buzz, and researching the Internet. In addition to internal data and marketing intelligence, marketers often need formal studies of specific situations. To address this need, they conduct marketing research to collect, analyze, and report secondary and primary data to better form decisions.

	3.0.4.		What are some ways that companies can collect competitive intelligence?

	Difficulty:	3
	QuestionID:	05-3-04
	Page-Reference:	148-149
	Skill:	Recall

Answer: Much competitor intelligence can be collected from people inside the company—executives, engineers and scientists, purchasing agents, and the sales force. The company can also obtain important intelligence information from suppliers, resellers, and key customers. Or it can get good information by observing competitors and monitoring their published information. It can buy and analyze competitors’ products, monitor their sales, check for new patents, and examine various types of physical evidence.

	3.0.5.		Describe the basic marketing research process.

	Difficulty:	2
	QuestionID:	05-3-05
	Page-Reference:	150-151
	Skill:	Applied

Answer: The marketing research process involves four steps: defining the problem and research objectives, developing the plan, implementing the plan, and interpreting and reporting the findings. Managers must know what is wrong in defining the problem. Research objectives may be reached through exploratory, descriptive, or causal research. Next, the information needed and a plan for gathering and presenting is made. Then, secondary and primary data must be collected to compile and analyze. Finally, the important information must be presented to management for decision making.

	3.0.6.		Why is it important for the statement of the problem and the research objectives to guide the entire research process?

	Difficulty:	2
	QuestionID:	05-3-06
	Page-Reference:	150-151
	Skill:	Applied

Answer: The specific nature of the problem and the research objectives determine which type of research, contact methods, sampling plans, and instruments should be used; without a focus of a specific problem and objectives, the marketing research process would not result in relevant data.

	3.0.7.		The research plan should be presented in a written proposal. What should that proposal contain?

	Difficulty:	3
	QuestionID:	05-3-07
	Page-Reference:	151-152
	Skill:	Recall

Answer: The proposal should cover the management problems addressed and the research objectives, the information to be obtained, and the way the results will help management decision making. The proposal should also include research costs.

	3.0.8.		Briefly compare the three different types of research approaches for gathering primary data.

	Difficulty:	2
	QuestionID:	05-3-08
	Page-Reference:	154-157
	Skill:	Applied

Answer: The three research approaches for gathering primary data are observations, surveys, and experiments. Observational research involves watching relevant people, actions, and situations, usually to glean customer insights that can’t be obtained through direct questions and answers. Observations can reveal information that people are unwilling or unable to provide in surveys or experiments. Survey research is very flexible, as it can be used to obtain many different kinds of information in many different situations. Mail, telephone, and online surveys have relatively low costs in comparison to observational research. Surveys are also better suited than observations for gathering descriptive information. Experimental research is best suited for gathering causal information.

	3.0.9.		Provide the advantages/benefits of each of the contact methods.

	Difficulty:	3
	QuestionID:	05-3-09
	Page-Reference:	158
	Skill:	Applied

Answer: Mail questionnaires can be used to collect large amounts of information at a low cost per respondent. Respondents may give more honest answers to more questions by mail than to an unknown interviewer in person or on the phone. Also, no interviewer is involved to bias the answers. Telephone interviewing is one of the best methods for gathering information quickly, and it provides great flexibility. Interviewers can explain difficult questions, skip questions, or probe on other questions. Rates of response tend to be higher than through the mail. Personal and group interviews are flexible and allow interviewers to guide respondents and explore issues as they evolve. Visual aids can be used, products can be demonstrated, and reactions and behaviours can be observed. Online methods allow the interviewee to be more honest, the costs are greatly reduced, the response rate is higher, and reports come back faster.

	3.0.10.		Why is the Internet especially well suited to quantitative research—conducting marketing surveys and collecting data?

	Difficulty:	1
	QuestionID:	05-3-10
	Page-Reference:	160
	Skill:	Recall

Answer: Eighty-five percent of Canadians now have access to the Web, making it a fertile channel for reaching a broad cross-section of consumers. As response rates for traditional survey approaches decline and costs increase, the Web is quickly replacing mail and the telephone as the dominant data collection methodology.

	3.0.11.		Describe the three decisions a researcher must make when designing a sample.

	Difficulty:	1
	QuestionID:	05-3-11
	Page-Reference:	162
	Skill:	Applied

Answer: First, the researcher must determine who is to be surveyed. Next, a researcher must determine the sample size by deciding how many people need to be surveyed. Third, the sampling procedure should be chosen to know how the respondents should be chosen.

	3.0.12.		Compare and contrast closed-ended questions and open-ended questions for gathering data.

	Difficulty:	1
	QuestionID:	05-3-12
	Page-Reference:	165
	Skill:	Applied

Answer: Closed-ended questions, which include all possible answers, make it easier for respondents to choose among relevant answers. Examples include multiple-choice questions and scale questions. These types of questions are easier for the researcher to interpret and tabulate. Open-ended questions allow respondents to answer in their own words and as such do not limit their choices. Open-ended questions are more difficult to interpret and tabulate, but they are particularly useful in exploratory research.

	3.0.13.		Air Canada must design a questionnaire for an exploratory research study. What guidelines for drafting a questionnaire should it consider?

	Difficulty:	2
	QuestionID:	05-3-13
	Page-Reference:	165
	Skill:	Applied

Answer: Open-ended questions are especially useful in exploratory research, when the researcher is trying to find out what people think but not measuring how many people think in a certain way. Air Canada’s researchers should also use care in the wording and ordering of questions. They should use simple, direct, unbiased wording. Questions should be arranged in a logical order. The first question should create interest if possible, and difficult or personal questions should be asked last so that respondents do not become defensive.

	3.0.14.		Explain why it’s important for both the researcher and the marketing manager to interpret the findings of market research.

	Difficulty:	2
	QuestionID:	05-3-14
	Page-Reference:	166-167
	Skill:	Applied

Answer: Both a marketing manager and a researcher bring important points of view to the task: a marketing manager is an expert in the problem and the decisions that must be made, but also may be biased about the results; a researcher is an expert in statistics. Because findings can be interpreted in many ways, discussions between a researcher and marketing manager will lead to the most appropriate interpretation for the given situation.

	3.0.15.		How can a company overcome the problem of gathering internal data for research purposes when the data is usually scattered widely across the organization?

	Difficulty:	3
	QuestionID:	05-3-15
	Page-Reference:	167-168
	Skill:	Applied

Answer: Many companies are using customer relationship management (CRM). CRM offers the benefits of managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty. By using sophisticated software and analytical tools, information about customers can be integrated from all sources and analyzed in depth, and the results can be applied to build stronger customer relationships. CRM integrates everything that a company’s sales, service, and marketing teams know about individual customers to provide a 360-degree view of the customer relationship. CRM involves creating a data warehouse that can be mined for useful insights about customers.

	3.0.16.		Discuss several ways in which smaller organizations can use marketing research techniques at little or no expense.

	Difficulty:	2
	QuestionID:	05-3-16
	Page-Reference:	170-171
	Skill:	Applied

Answer: Small organizations can use the same marketing research process as larger firms, as well as many of the same methods, such as secondary data collection, observation, surveys, and experiments. There are many sources of free secondary data on the Web, and small firms also have access to special help collecting data from chambers of commerce, government agencies, and other organizations. Managers of small organizations can use observation and conversations with their customers to collect data. Informal surveys with small convenience samples are another tool that smaller organizations can use. As with larger firms, smaller organizations must conduct research systematically for the results to be valid and useful.

	3.0.17.		Explain the common problems that international marketing researchers encounter.

	Difficulty:	3
	QuestionID:	05-3-17
	Page-Reference:	171-172
	Skill:	Applied

Answer: International researchers deal with less homogeneous markets in and among countries. The markets often vary greatly in their levels of economic development, cultures and customers, and buying patterns. Good secondary data are difficult to find in many foreign markets. More time and expense is involved in gathering primary data. In addition, choosing representative samples and finding methods of contacting participants can be a formidable task. Cultural and language differences can present obstacles in interpreting the data and drawing realistic conclusions. Consumers’ attitudes in other countries may hinder the process of collection.

	3.0.18.		Why is it difficult to obtain relevant and reliable secondary data when conducting international marketing research?

	Difficulty:	2
	QuestionID:	05-3-18
	Page-Reference:	171-172
	Skill:	Applied

Answer: Unlike Canada and the United States, many countries have no or almost no research services; in addition, most international research services operate in only a handful of countries. Thus, even when secondary information is available, it usually must be obtained from many different sources on a country-by-country basis, making the information difficult to combine or compare.

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