Chapter 9—Decision Support Systems and Marketing Research
1.Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans is referred to as:
a. / competitive intelligenceb. / marketing information
c. / decision support information
d. / marketing research
e. / observation
ANS:B
This describes marketing information, and accurate and timely information is the lifeblood of marketing decision making.
PTS:1REF:139OBJ:09-1TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Knowledge
2.A(n) _____ is an interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions.
a. / expert systemb. / marketing information system
c. / artificial intelligence system
d. / marketing decision support system
e. / database marketing system
ANS:D
This is the definition of a marketing decision support system.
PTS:1REF:139OBJ:09-1TOP:AACSB Technology
KEY:CB&E Model StrategyMSC:BLOOMS Knowledge
4.A true marketing decision support system possesses all of the following characteristics EXCEPT:
a. / flexibleb. / discovery oriented
c. / interactive
d. / accessible
e. / synergistic
ANS:E
A true marketing decision support system is interactive, flexible, discovery oriented, and accessible.
5._____ is the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
a. / Electronic targetingb. / Sampling procedure specification
c. / Database marketing
d. / Competitive data mining
e. / Consumer behavior marketing
ANS:C
This is the definition of database marketing.
6._____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The results of this analysis are then communicated to management.
a. / Data collectionb. / Artificial intelligence
c. / Decision support
d. / Marketing research
e. / Single-source research
ANS:D
This is the definition of marketing research.
PTS:1REF:140OBJ:09-2TOP:AACSB Reflective Thinking
KEY:CB&E Model ResearchMSC:BLOOMS Knowledge
10.Marketing research has three functional roles. These roles are:
a. / normative, descriptive, and explanatoryb. / predictive, normative, and persuasive
c. / descriptive, diagnostic, and predictive
d. / flexible, interactive, and discovery-oriented
e. / descriptive, explanatory, and predictive
ANS:C
The three roles are descriptive, diagnostic, and predictive.
PTS:1REF:140OBJ:09-2TOP:AACSB Reflective Thinking
KEY:CB&E Model ResearchMSC:BLOOMS Knowledge
21.In contrast to marketing research problems, management decision problems are:
a. / action orientedb. / pervasive
c. / narrower in scope
d. / synergistic
e. / information oriented
ANS:A
The marketing research problem is information oriented, but the management decision problem is action oriented.
PTS:1REF:141OBJ:09-3TOP:AACSB Reflective Thinking
KEY:CB&E Model ResearchMSC:BLOOMS Comprehension
23.Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data.
a. / single-sourceb. / secondary
c. / primary
d. / consensual
e. / convenience
ANS:B
This is the definition of secondary data.
25.Trade groups, commercial publications, and government departments can be used as sources of:
a. / secondary datab. / consensual information
c. / primary data
d. / artificial intelligence
e. / marketing audits
ANS:A
Innumerable outside sources of secondary information exist, such as trade and industry associations, business periodicals, and government departments and agencies.
33.The research design specifies:
a. / follow-up procedures for the researchb. / the information that will be found
c. / how the final report will be written
d. / how the information gathered will be used to predict external environmental changes
e. / the research questions to be answered
ANS:E
The research design specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.
34.Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data.
a. / primaryb. / secondary
c. / dichotomous
d. / observation
e. / convenience
ANS:A
This is the definition of primary data.
PTS:1REF:142OBJ:09-3TOP:AACSB Reflective Thinking
KEY:CB&E Model ResearchMSC:BLOOMS Knowledge
37.What is the chief advantage of primary data?
a. / Low cost compared to secondary datab. / Relevance to the problem at hand
c. / Availability to any interested party for use
d. / Accessibility through computerized databases
e. / Avoiding interviewer biases
ANS:B
Primary data are information collected for the first time for the purpose of solving a particular problem under investigation.
41.The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
a. / heuristic orientedb. / survey research
c. / experiments
d. / observation research
e. / single-source research
ANS:B
Survey research takes several forms and is the most popular method for gathering primary data.
42.In-home personal interviews:
a. / offer high-quality data at a high costb. / offer the ability to obtain high-quality data at a low cost
c. / are becoming increasingly more popular
d. / are less expensive than mall intercepts
e. / offer information of moderate quality but at a low cost
ANS:A
The cost of interviewer time and mileage is high, but these interviews yield high-quality information.
43.Which type of survey research method involves interviewing people in the common areas of shopping malls?
a. / Telephone interviewsb. / Panel surveys
c. / Mall intercept interview
d. / Centralized interviews
e. / Interactive research
ANS:C
This is the definition of a mall intercept interview.
50.Telephone interviews offer:
a. / speed in gathering datab. / a potential for reaching all households
c. / few nonresponses
d. / the ability to collect large amounts of complex data
e. / the lowest-cost method for obtaining data
ANS:A
Telephone interviews are one of the fastest means for collecting data. See Exhibit 9.2.
75._____ research depends on watching what people do.
a. / Anonymous viewershipb. / Observation
c. / Interactive
d. / Personal scanner
e. / Survey
ANS:B
Observation research is a method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity.
89.A(n) _____ sample is characterized by every element in the population having a known statistical likelihood of being selected.
a. / irregularb. / probability
c. / nonprobability
d. / convenience
e. / piggyback
ANS:B
This is the definition of a probability sample.
93.A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of the population.
a. / frameb. / random
c. / probability
d. / nonprobability
e. / representational
ANS:D
This is the definition of a nonprobability sample.
94.Nonprobability samples:
a. / require more expensive marketing research than probability samplingb. / include any sample in which little is done to obtain a representative cross section of the population
c. / by definition must be representative of the population
d. / often start out with random numbers to ensure selection of subjects is truly random
e. / offer an easy method for determining sampling error
ANS:B
A nonprobability sample is any sample in which there is little or no attempt to obtain a representative cross section of the population.
103.Which of the following is a type of probability sample?
a. / Judgment sampleb. / Convenience sample
c. / Random sample
d. / Quota sample
e. / Snowball sample
ANS:C
A random sample is a type of probability sample in which every member of the population has a known and equal chance of selection. The other types of samples are nonprobability samples. See Exhibit 9.4.
116.All of the following are advantages associated with the use of Internet surveys EXCEPT:
a. / decreased costsb. / ability to contact hard-to-reach respondents
c. / reduced measurement error
d. / ability to get survey results much more rapidly
e. / ability to personalize the survey
ANS:C
Measurement error is not an advantage associated with the use of Internet surveys.
118.All of the following are advantages associated with online focus groups EXCEPT:
a. / good participation ratesb. / cost-effectiveness
c. / narrow geographic scope
d. / accessibility
e. / honesty of respondents
ANS:C
Online focus groups offer a broad geographic scope.
123.Marketing research should not be undertaken when:
a. / the perceived costs are greater than the projected benefitsb. / there are no secondary data in existence to guide the project definition
c. / it will take a long time to complete
d. / the actual costs are less than the forecasted benefits
e. / the perceived costs are the same as the forecasted benefits
ANS:A
Research should be undertaken only when the expected value of the information is greater than the cost of obtaining it.
PTS:1REF:154-155OBJ:09-6TOP:AACSB Reflective Thinking
KEY:CB&E Model ResearchMSC:BLOOMS Analysis
124.An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:
a. / competitive researchb. / competitive intelligence
c. / industrial espionage
d. / an audit
e. / differential competitive advantage
ANS:B
This is the definition of competitive intelligence.
MSC:BLOOMS Synthesis
Chapter 11—Developing and Managing Products
2.New-to-the-world products, where the product category itself is new, are also called:
a. / discontinuous innovationsb. / moderate innovations
c. / slow-diffusing products
d. / venture products
e. / creative offerings
ANS:A
These products create an entirely new market.
13._____ occurs when an existing product is targeted toward new market segments. It is another type of new-product development because the product is new to that segment.
a. / Brainstormingb. / Diffusing
c. / Repositioning
d. / Screening
e. / Reciprocity
ANS:C
Repositioned products are existing products targeted at new markets or market segments, or ones repositioned to change the current market’s perception of the product.
14.Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:
a. / establish an environment conducive to achieving new-product objectivesb. / make the long-term commitment needed to support innovation and new-product development
c. / capitalize on experience to achieve and maintain competitive advantage
d. / use a company-specific approach, driven by corporate objectives and strategies, with a well-defined new-product strategy at its core
e. / introduce ten new products every year
ANS:E
Introducing a specific number of new products each year is not one of the factors identified for success.
16.The first stage of the new-product development process is:
a. / screening and concept testingb. / establishing the new-product strategy
c. / exploring opportunities
d. / developing a business analysis
e. / the building of a prototype
ANS:B
See Exhibit 11.1. New-product strategy is the first subset of the organization’s new-product development plan. It specifies what roles new products play in the organization’s overall plan and describes goals.
18. Which of the following is the LEAST likely source for new-product ideas?
a. / A company’s distributorsb. / Its customers
c. / Its employees
d. / Its financial lenders
e. / Its competitors
ANS:D
Customers, employees, distributors, and competitors are interacting with the marketplace and may have ideas for goods to serve customer needs. The bank from which the company gets its debt financing is the least likely alternative here.
20.The process of converting applications for new technologies into marketable products is called:
a. / basic researchb. / product modification
c. / marketing development
d. / product development
e. / correlation analysis
ANS:D
Product development is a marketing strategy that entails the creation of marketable new products.
21._____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.
a. / New-product brain dumpingb. / Screening
c. / A focus group interview
d. / Brainstorming
e. / Diffusion
ANS:D
The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem, no matter how ridiculous it may seem.
24.Which of the following stages of the new-product development process is the first filter, which serves to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason?
a. / Applied diffusionb. / Introductory diffusion
c. / Business analysis
d. / Test marketing
e. / Idea screening
ANS:E
Most new-product ideas are rejected at this stage, called the idea screening stage.
25.At what stage of the new-product development process are most new-product ideas rejected?
a. / Test marketingb. / Diffusion
c. / Business analysis
d. / Idea screening
e. / Idea generation
ANS:D
Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.
30._____ evaluate new-product ideas usually before any prototype has been created.
a. / Concept testsb. / Simulated market tests
c. / Market tests
d. / User tests
e. / Venture analyses
ANS:A
Concepts test are often used at the screening stage to rate concept (or product) alternatives.
PTS:1REF:175OBJ:11-2TOP:AACSB Reflective Thinking
KEY:CB&E Model ProductMSC:BLOOMS Knowledge
34.In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced.
a. / screeningb. / development
c. / market testing
d. / concept testing
e. / business analysis
ANS:B
During the development stage, the technical feasibility of manufacturing the product at a reasonable cost is thoroughly examined. This stage can be long and expensive and can involve a great deal of testing. Products are often modified after the testing.
35.A team-oriented approach to new-product development is referred to as:
a. / simultaneous product developmentb. / synergistic product development
c. / commercialized product development
d. / synchronized product development
e. / parallel product development
ANS:A
The development process works best when all the involved areas (research and development, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process call simultaneous product development.
37._____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
a. / Use testingb. / Test marketing
c. / Concept testing
d. / Laboratory testing
e. / Discontinuous innovation
ANS:B
After products and marketing programs have been developed, they are usually tested in the marketplace using test marketing, which is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
39.A(n) _____ typically entails showing members of the product’s target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store, where their purchases are recorded.
a. / adoption-rate testb. / real test market
c. / concept test
d. / simulated (laboratory) market test
e. / consumer juried test
ANS:D
This is a description of a simulated (laboratory) market test.
PTS:1REF:177-178OBJ:11-2TOP:AACSB Reflective Thinking
KEY:CB&E Model Product | CB&E Model ResearchMSC:BLOOMS Knowledge
40.The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then “shop” in a mock store filled with real products, including the new product. This is an example of a(n):
a. / adoption-rate testb. / simulated (laboratory) market test
c. / concept test
d. / use test
e. / juried consumer test
ANS:B
Simulated (laboratory) market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store.
PTS:1REF:177-178OBJ:11-2TOP:AACSB Reflective Thinking
KEY:CB&E Model ProductMSC:BLOOMS Application
41.Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?
a. / Product samplingb. / Simulated product adoption
c. / Online test marketing
d. / Simulated diffusion
e. / Market concentration
ANS:C
The text describes Proctor & Gamble’s online test marketing.
42.The final stage in the new-product development process is:
a. / product testingb. / market testing
c. / commercialization
d. / product prototyping
e. / simulated marketing
ANS:C
Commercialization is the decision to market a product.
43.During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.
a. / commercializationb. / product testing
c. / market analysis
d. / product prototyping
e. / simulated marketing
ANS:A
The commercialization stage is the decision to market a product and sets several task in motion.
46.A product that is perceived as new by a potential adopter, whether the product is “new to the world” or simply new to the individual, is called a(n):
a. / innovationb. / diffusion
c. / discontinuous product
d. / laggard
e. / simulated new product
ANS:A
An innovation is a product perceived as new by a potential adopter.
48.The process by which the adoption of an innovation spreads is referred to as:
a. / diffusionb. / circulation
c. / transmission
d. / dissemination
e. / dispersion
ANS:A
This is the definition of diffusion.
50._____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters.
a. / Early adoptersb. / Innovators
c. / Early majority
d. / Late majority
e. / Laggards
ANS:B
These are characteristics of innovators, who are almost obsessed with trying new ideas and products.
55.All of the following are categories of adopters in the diffusion process of innovations EXCEPT:
a. / laggardsb. / innovators
c. / early majority
d. / early adopters
e. / doubters
ANS:E
The five categories of adopters are innovators, early adopters, early majority, late majority, and laggards.
58.The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms.
a. / laggardsb. / early adopters
c. / early majority
d. / innovators
e. / late majority
ANS:EPTS:1REF:180OBJ:11-4
TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model Strategy
MSC:BLOOMS Knowledge
63.Which is the last adopter category to adopt an innovation?
a. / Late majorityb. / Laggards
c. / Late diffusers
d. / Reluctant adopters
e. / Traditionalists
ANS:B
Laggards represent the final 16 percent to adopt an innovation. By the time they adopt an innovation, it has probably become outmoded and replaced by something else.
64.All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. / complexityb. / compatibility
c. / relative advantage
d. / observability
e. / distribution
ANS:E
While it is a marketing factor that may influence the rate of adoption of a new product, distribution is not a product factor influencing the rate of adoption.
65.Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?