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Chapter 1

INTRODUCTION TO MARKETING RESEARCH

GENERAL CONCEPT MULTIPLE CHOICE QUESTIONS

1. The marketing research industry launched the first ever certification program for marketing researchers and this certification program is sponsored by:a. American Marketing Associationb. Research Certification Boardc. Marketing Research Corporationd. Marketing Research Association (MRA)e. The Council for the Association for Survey Research Organizations (CASRO)

Answer: (d) Difficulty: (Easy) Page: 3

2. Which of the following is the best definition for marketing?a. Marketing is an organizational function and a set of business activities designed to make

profits. b. Marketing is an organizational function and a set of processes for creating, communicating,

and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

c. Marketing is a business function and a process for determining the value customers desire in order to gain profit for business organizations and to seek societal benefits through nonprofit marketing.

d. Marketing is finding a hole and filling it while earning profitable dollars.e. Marketing is the result of the equilibrium of supply, demand, marginal cost, and marginal

revenue.

Answer: (b) Difficulty: (Easy) Page: 4

3. Which of the following is most accurate?a. Marketing is an attempt to create an exchange. b. Marketing is an attempt to create long-term customer relationships.c. Marketing is an attempt to create long-term customer relationships which will then likely

satisfy the organization's objectives.d. Marketing is an attempt to earn profitable dollars.e. Marketing is an attempt to gain customers from competitors while at least breaking even

profitwise.

Answer: (c) Difficulty: (Easy) Page: 4

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Chapter 1: Introduction to Marketing Research

4. The marketing concept is important for marketing managers because it dictates:a. the amount of quarterly profits firms will earnb. the amount of return on investment the firm will earn in a yearc. the market share a firm will earnd. day-to-day decisions that managers will makee. whether or not the firm will reach its sales quota

Answer: (d) Difficulty: (Moderate) Page: 6

5. The key reason that the marketing concept has been recognized as the "right philosophy" is that it:a. is well established in the marketing literatureb. has been recommended by successful marketing executivesc. always puts the customer firstd. does not rely on high-pressure sellinge. stresses understanding the competition

Answer: (c) Difficulty: (Moderate) Page: 7

6. A marketing strategy consists of selecting a segment of the market as the company's target market and designing the proper:a. products for that target marketb. "mix" of product/service, price, promotion, and distribution for that marketc. promotion for that target marketd. mix of product, distribution, and warranty service for that target markete. incentives to allow a large percentage of the target market to purchase goods and services from

the company


7. In order to develop the "right strategy" to succeed in business, managers must make the right decisions; and in order to make the right decisions, they must have objective, accurate, and timely: a. reports about the competitionb. reports about customers wants and needsc. information about market trends and changesd. the number and sizes of market segmentse. information


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8. Which of the following is the best definition of marketing research? Marketing research is:a. the activity of analyzing secondary information and providing executives with timely

reportsb. the process of designing experiments that provide decision makers with causal informationc. the linking of consumers with information managersd. the process of designing, gathering, analyzing, and reporting information that may be

used to solve a specific marketing probleme. the process of designing, gathering, analyzing, and reporting information that may be

used to solve general marketing problems


9. The AMA has defined marketing research. Which of the following is NOT one of the uses of marketing research?a. to identify and define marketing opportunities and problemsb. to solve general, not specific, marketing problems c. to generate, refine, and evaluate marketing actionsd. to monitor marketing performancee. to improve the understanding of marketing as a process

Answer: (b) Difficulty: (Difficult) Page: 8

10. Which of the following refers to applying marketing research to a specific geographical marketing area?a. marketing researchb. area marketing researchc. market researchd. geographical researche. local marketing research


11. Which of the following is the best statement reflecting the purpose of marketing research?a. to provide information that improves profitabilityb. to link the environments to the firmc. to link the consumer to the marketer by providing information that can be used in

making marketing decisionsd. to link target markets to specific decision makers at all levels within firmse. to be perceived as providing value to higher level executives within the firm


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12. To practice marketing correctly, managers must have information, and this is the:a. "responsibility of sales managers"b. "purpose of marketing research"c. "obligation to shareholders" d. "responsibility of the corporate information managers"e. "characteristic that separates good marketing research firms from poor marketing research

firms"

Answer: (b) Difficulty: (Easy) Page: 8

13. In their book, Counterintuitive Marketing, Clancy and Kreig, argue that many failures may be attributed to managers making:a. good decisions but without enough informationb. bad decisions but with good informationc. intuitive decision without the use of research to make better decisionsd. decisions based only on competitive informatione. good decisions but making them too late to be competitive

Answer: (c) Difficulty: (Difficult) Page: 8

14. Marketing research conducted on the popular TV program, Seinfeld, starring Jerry Seinfeld, was used to illustrate: a. how marketing research always correctly identifies a product or service that will be

popular in the marketplaceb. when marketing research should not be usedc. when marketing research predicts a failure yet there is successd. when marketing research predicts a failure and there is a failuree. why marketing research may not be applied to all fields, such as entertainment

Answer: (c) Difficulty: (Difficult) Pages: 9–10

15. Which of the following best illustrates one of the uses of marketing research, monitoring marketing performance?a. marketing research managers closely overseeing the work of subordinates in the marketing

research industryb. tracking research that monitors how well products are performing in the marketplacec. describing the return on investment of firms using/not using marketing researchd. providing closed circuit TV to monitor the actions of marketing researchers practicing in the

fielde. identifying opportunities and problems in the marketplace

Answer: (b) Difficulty: (Difficult) Pages: 11–12

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16. The difference between basic research and applied research is that basic research is conducted to: a. determine the most effective advertising copyb. determine the most appropriate price for new productsc. determine the most efficient distribution channels for productsd. to expand our knowledge rather than solve a specific probleme. to determine the most desired features in new products


17. Which of the following is NOT one of the subsystems of the marketing information system?a. internal reportsb. marketing intelligencec. marketing decision supportd. marketing researche. consumer information support system

Answer: (e) Difficulty: (Difficult) Page: 12

18. The information system that gathers information generated by internal reports such as orders, billing, receivables, inventory levels, and so on is called the:a. consumer information support systemb. internal reports systemc. marketing research systemd. decision support systeme. marketing intelligence system

Answer: (b) Difficulty: (Moderate) Page: 14

19. Which of the following marketing information subsystems gathers information about events and happenings "outside" the firm?a. marketing researchb. marketing intelligencec. internal reports systemd. consumer information support systeme. external environment reporting system

Answer: (b) Difficulty: (Moderate) Page: 14

20. Which of the following marketing information subsystems provides studies conducted for specific situations facing the company?a. marketing intelligence systemb. consumer information support systemc. internal reports systemd. decision support systeme. marketing research system

Answer: (e) Difficulty: (Difficult) Pages: 14–15

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21. Which of the following marketing information subsystems is NOT continuous?a. consumer information support systemb. marketing research systemc. internal report systemd. decision support systeme. marketing intelligence system


22. Which of the following refers to the use of computer networks, including the Internet, to assist in any phase of the marketing research process?a. online survey researchb. neural computer networkingc. online researchd. e-researche. cyber research


23. Growing consumer/respondent resentment to invasions of privacy was identified in your textbook as a "hot topic." One way marketing researchers are seeking to battle rising nonresponse rates is by:a. conducting more computer simulations based on past consumer informationb. investing in panels of consumers who are recruited to be available for several research requestsc. investing in research to determine methods of increasing consumer response ratesd. surveying larger numbers of consumers by using SPAM surveyse. providing consumers with false incentives to entice them to participate in marketing research

surveys


24. Which of the following is the best explanation for marketing research firms globalizing?a. ACNielsen moved to Holland.b. Potential respondents in other countries were more willing to cooperate in research studies.c. Telemarketing is not as prevalent in other countries as it is in the United States.d. Research companies in global markets were earning higher returns on investment.e. Marketing research firms followed their clients to distant markets as client firms spread

globally during the 1990s.

Answer: (e) Difficulty: (Difficult) Page: 17

TRUE/FALSE QUESTIONS

25. For the first time marketing researchers may be certified. By fulfilling certain requirements they may earn their Professional Researchers Certification (PRC).

Answer: (True) Difficulty: (Moderate) Page: 4

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26. Marketing research is a part of marketing.

Answer: (True) Difficulty: (Easy) Page: 4

27. A marketing strategy consists of : a planned design to reach the largest portion of the market by leveraging the benefits of both low marketing costs and promotion using the mass media to reach the largest audience.

Answer: (False) Difficulty: (Moderate) Page: 7

28. In order to implement the "right" strategy, managers must make many decisions, and they must have objective, accurate, and timely information in order to make these decisions correctly.

Answer:(True) Difficulty: (Moderate) Page: 7

29. Once objective, accurate, and timely information is provided to managers to allow them to implement the correct strategy there is no future need for information.

Answer: (False) Difficulty: (Easy) Page: 7

30. Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.


31. The American Marketing Association's definition of marketing stresses that the function of marketing should be to create a sale that generates high profits for the firm.


32. The definition of marketing research provided by the American Marketing Association stresses the 11-step process of marketing research.

Answer: (False) Difficulty: (Difficult) Page: 8

33. Marketing research is synonymous with market research.


34. The purpose of marketing research is to link the consumer to the marketers by providing information that can be used in making marketing decisions.


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35. Marketing research provides information collected only on consumers. Information collected on other entities such as employees, members of distribution channels, or competitors would not be considered marketing research.


36. One of the uses of marketing research is to identify market opportunities; however, the identification of problems is not a use of marketing research, but rather a use of the firm's internal auditing system.


37. When Wrangler® evaluated several different magazine ads to determine the best advertising copy, they were using marketing research to generate, refine, and evaluate a potential marketing action.

Answer: (True) Difficulty: (Difficult) Page: 10

38. Another use of marketing research is to monitor marketing performance, which takes place prior to implementing marketing strategies.


39. Hershey's can monitor the sales of their candy bars as well as the sales of their competitors' brands through the use of tracking studies.


40. One use of marketing research is to improve marketing as a process and such research information is often published in journals such as The Journal of Marketing Research and Marketing Research.


41. Applied research addresses specific problems, and this type of research represents the vast majority of marketing research studies.


42. A marketing information system is a structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.


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43. The marketing intelligence system gathers information generated by internal reports, which includes order billing, receivables, inventory levels, stockouts, and so on.


44. Everyday information about pertinent developments in the environment to an organization is gathered through the internal report system.

Answer: (False) Difficulty: (Moderate) page: 14

45. A marketing decision support system is defined as collected data that may be accessed and analyzed using tools and techniques that assist managers in decision making.


46. The marketing research system gathers information for a specific situation facing the company, and it is unlikely that the other components of an MIS have the information needed for the specific situation.


47. Marketing research projects, like the other MIS components, are continuous, running 24/7.


48. Online research, that is using computer networks to assist in any phase of the marketing research process, was identified as a "hot topic" in marketing research.


49. Web-based research is synonymous with online research.

Answer: (False) Difficulty: (Difficult) Pages: 15–16

50. Online survey research refers to the collection of data using computer networks and is a part of online research.


51. Although consumers have grown wary of invasions of their privacy, this has not affected the marketing research industry.


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52. The Federal Trade Commission's "do not call" registry effectively stopped all marketing researchers from calling consumers to gather information for marketing research projects.


53. The Council for Marketing and Opinion Research (CMOR) tracks refusal rates for research studies by consumers, and these refusal rates have been steadily increasing year after year.


54. Although many firms have spread globally, the marketing research industry predominately remains a U.S.-based industry with very little global outreach.


APPLICATION QUESTIONS

55. Because marketing has been defined as a function instead of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders, marketing managers must have information in order to determine values desired by customers and how to build customer relationships. This is an explanation that would explain:

a. why marketing research is a part of marketing; that is, marketing research provides information to allow marketing managers to understand values desired by customers

b. why marketing is a part of marketing research; that is, marketing processes are used to generate marketing research information that is needed to determine customers' desired values

c. why marketing research is a function and not a processd. why the uses of marketing research do not include creating, communicating, and delivering

value but include identifying opportunities and problemse. why marketing and marketing research are not interrelated

Answer: (a) Difficulty: (Difficult) Page: 4

56. Tim, a marketing manager disagreed with other company managers. Tim believed that the company should not just try to make a better product or try to sell more of the product. Tim believed that the company should try to identify and satisfy consumer wants and needs. Tim's philosophy may best be described as:

a. the production-oriented philosophyb. the return-on-investment-oriented philosophyc. the selling philosophyd. the marketing concept philosophye. the management philosophy

Answer: (d) Difficulty: (Difficult) Page: 6

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57. Allison is the CEO of a large consumer products company. She asks the marketing research department to gather information to help her determine target markets having the most potential from among several market segments. She also asks the research department to give her an assessment as to the best product, price, distribution, and promotion to appeal to the various market segments. Allison is collecting information to help her implement a:

a. marketing mixb. marketing auditc. marketing conceptd. marketing strategye. marketing research project


58. Rachel would like to create a new department within her firm. She wishes that her firm could provide information that will help link consumers outside the firm to individuals in the firm making decisions that can be used to identify marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and perhaps improve the understanding of marketing as a process. Rachel should name this department:

a. the department of consumer public informationb. the marketing research department c. the marketing performance and evaluation departmentd. the marketing opportunities departmente. the marketing actions department


59. Abe would like to locate a new unit of his franchised fast-food restaurant chain. He orders an evaluation of several city blocks from a marketing research firm. The research firm will determine the population, population growth, income, and other important demographic information for the defined geographical area. The research company will be performing:

a. a marketing research studyb. marketing researchc. market researchd. a restaurant location studye. basic research


60. Marketing research studies predicted that hair styling mousse, answering machines, the Jerry Seinfeld TV program, Seinfeld, and other products and services would fail. Yet, these products and services were all successful. This illustrates that marketing research:

a. does not always make accurate predictionsb. always makes accurate predictionsc. seldom makes accurate predictionsd. should not be used for consumer products or servicese. should only be conducted on improving existing products

Answer: (a) Difficulty: (Difficult) Pages: 8–10

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61. Wrangler® developed several different proposed advertisements. They then used marketing research to test consumers' preferences for the different promotional messages expressed in the various ads. This is an example of which use of marketing research?

a. identify market opportunities and problemsb. generate, define, and evaluate potential marketing actions c. monitor marketing performanced. improve marketing as a processe. communications research


62. Professors at Texas A&M University conducted research to determine the best way to measure customer satisfaction with services. Their method was published in the Journal of Marketing and may be used by any firm wishing to measure their own customer's satisfaction. This would be an example of:

a. basic researchb. customer services research c. published researchd. research applied to a specific problemse. research aimed at identifying market opportunities


63. Bob is a salesperson with the Acme Corporation. Bob has just made a large sale, and he accesses Acme's marketing information system in order to determine if the company has enough existing inventory to fill the large order. Bob is accessing which component of Acme's MIS?

a. internal reportsb. marketing intelligence c. marketing decision support systemd. marketing researche. consumer information support system


64. Andrea Livingston arrives at her desk at Western Utility Corporation, a provider of electrical power. She accesses her Lexis-Nexis computer program, which provides her with articles containing information related to the utilities industry. She discovers that a new breakthrough has occurred in solar panel technology, and this report was published during the evening in a newspaper in Europe. She immediately takes this information to her research and development department. Andrea is accessing which component of the MIS of Western Utility Corporation?



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65. Doss is vice president of marketing research for General Mills. The chefs at General Mills bring three new cookie recipes to Doss. Doss wants to know which of these three cookie recipes would be most preferred by consumers. Which component of General Mills' MIS would Doss use in order to provide him with this information?



66. Jane is the marketing research director at ABC Research. Jane issues an RFP over the Internet in order to solicit research proposals from research companies for a project that she needs to conduct. This would be an example of using:

a. Web-based researchb. online survey research c. tracking studiesd. online researche. marketing information systems


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