Essentials of Marketing Reaserch

ESSENTIALS OF MARKETING REASERCH

2nd Edition

AUTHORS:

Kumar

Aaker

Day

Practice Questions

Chapter 1

True or False:

1. Studying demographic shifts is a part of the strategy development phase of the marketing planning process
2. Focus group discussions provide many ideas for new marketing programs
3. Marketing research helps decide the marketing program that would result in the greatest response
4. A researcher should alter the research findings to match a manager’s prior notions
5. Marketing research cannot be used to find why results of marketing programs are below or above expectations

Multiple Choice:

1. Marketing research is a waste of money if
2. It costs more than $1000
3. It costs more than $ 10,000
4. If the information required already exists within the organization in the form of a study
5. If the information required already exists within the organization in the form of managerial experience
6. Both c and d
7. A balanced opinion of marketing research is that it is

1. A guarantee for success
2. An important information input to decisions
3. A tool to evaluate decisions that have been made
4. All of the above

1. Marketing program development is a stage in the marketing planning process that could involve

1. Assessing the environment
2. Performance monitoring
3. Setting performance objectives
4. Pricing decisions
5. All the above

1. Strategy development is a stage in the marketing planning process that involves

1. Defining the scope of the business
2. Identifying how to compete
3. Setting business objectives
4. All the above
5. None of the above

1. Identify which one is not a business objective

1. Revenue growth
2. Customer satisfaction
3. Market share
4. Profitability
5. Demographic trend

Chapter 2

True or False:

1. It is always better for a firm to have an in-house marketing research department
2. The accounting department has no role to play in marketing research activities
3. Databases store data whereas decision support systems transform data into usable information
4. The Nielsen TV index which provides useful information to advertisers is an example of a customized research service
5. A research report is incomplete if it does not contain recommendations for managers

Multiple Choice:

1. The primary role of Market Intelligence is

1. Identifying the various sources of information
2. Gathering information from various sources
3. Gleaning the right information from a vast array of reports, fact sheets and analyses
4. To deploy spies who infiltrate competitive firms
5. To hire intelligent sales people

1. Research conducted to ascertain the standing of a brand vis-a-vis its competitors would be categorized as

1. Selective research
2. Random research
3. Programmatic research
4. Evaluative research
5. Test marketing

1. A Marketing Decision Support System (MDSS) is useful because

1. Marketing data from different sources can be combined
2. Managers can interact with the system to quickly identify problems
3. Standard periodic reports are generated automatically
4. Answers to analytical questions can be obtained
5. All the above

1. Strategy development is a stage in the marketing planning process that involves

1. Defining the scope of the business
2. Identifying how to compete
3. Setting business objectives
4. All the above
5. None of the above

1. Marketing Models are used

1. To replicate retail stores in smaller sizes
2. To study the effect of changes in the marketing mix elements on sales, shares and profits
3. As spokespersons for the brand in advertisements
4. To specify the code of conduct to be adopted by sales persons

Chapter 3

True or False:

1. The research purpose and research objective are one and the same
2. The marketing research exercise has no value if there are no decision alternatives to choose from
3. All research requires the formulation of hypotheses
4. Marketing research is unlikely to provide us perfect information
5. Prior experience cannot help quantify the probability of success or failure of a new product

Multiple Choice:

1. Which of the following constitute a marketing research problem
2. Identifying the reasons for the failure of a new product
3. Identifying the sales areas that are showing weak performance
4. Evaluating the effects of a sales contest
5. Evaluating the effectiveness of a distributor-relations programs
6. All the above
7. A research question
8. Is better in guiding research design when it is stated in general terms
9. Is useful when it is stated in specific terms
10. Is made precise by identifying the research hypothesis and research boundaries
11. Both b and c
12. If a product has a 0.7 chance of success and will make $3 million when it succeeds and lose $1 million when it fails, what is the expected value of introducing the product in dollars?
13. 1.8 million
14. 2.1 million
15. 0.3 million
16. – 0.3 million
17. 2.4 million
18. In the above problem, how much should be set as the upper limit for the marketing research budget in dollars (Assume that the marketing research exercise is always able to predict the success or failure of a product accurately)?
19. 1.8 million
20. 0.3 million
21. 2.4 million
22. 2.1 million
23. 3 million
24. In problem 3, if the marketing research exercise cannot provide us with perfect information, the upper limit for the marketing research budget should be
25. > 1.8 million
26. < 0.3 million
27. < 2.4 million
28. > 0.5 million
29. > 3 million

Chapter 4

True or False:

1. Research questions can be prioritized by conducting exploratory research
2. To determine if the size of the logo on the pack face increases brand name recall, one would use exploratory research tools
3. The similarity between an iPod owner and an MTV viewer can be established through descriptive research
4. Conducting a survey is a good way of obtaining secondary information
5. Results of one data collection method cannot be used as inputs for another data collection method

Multiple Choice:

1. Total error is zero when
2. Sampling error is zero
3. Non sampling error is zero
4. When sampling error and non sampling error are both zero
5. When sampling error and non sampling error are equal in magnitude, but opposite in sign
6. Either c or d are true
7. Which of the following requires the use of causal research?
8. Determining the demographic characteristics of the WalMart shopper
9. Understanding the impact of advertising on brand recall
10. Examining attitudes of people towards hybrid cars
11. Obtaining reactions to a new product concept
12. Determining the average frequent flyer miles that customers of Continental airlines accumulate in one month
13. Scheduling the marketing research project involves
14. Assigning responsibility to persons working on the project
15. Specifying the time frame in each person should accomplish the assigned task
16. Breaking down the project into several activities
17. Both a and b
18. a, b and c
19. Primary data can be collected from the following sources
20. Data banks of other companies
21. Sales records
22. Qualitative studies
23. Experiments
24. c and d
25. The hypothesis ‘Increasing price results in a drop in sales’ can be evaluated by
26. Conducting exploratory research
27. Stopping all further research
28. Descriptive research
29. Causal research
30. Either c or d

Chapter 5

True or False:

1. Secondary data helps in benchmarking the performance of new products
2. If secondary data is available, there is no need to collect primary data
3. PRIZM system is used to monitor the environment
4. The AC Nielsen retail store audit is a census study that covers all retail outlets
5. A consumer panel cannot indicate brand switching behavior

Multiple Choice:

1. The results from consumer panels are affected by
2. Bias due to high rates of refusal to participate
3. Dropouts
4. Initial novelty of participation
5. All the above
6. None of the above
7. When the cost of airing a commercial on a prime time program is $50,000 and the number of target audience delivered is 2,500,000, the cost efficiency of the television program expressed as CPM is
8. 50
9. 20
10. 10
11. 500
12. 2
13. The increase in coupons, samples, displays and features in retail outlets in the past decade is attributable to
14. The ease of observing the effect of promotions using scanner data
15. Increase in ethnic diversity in the population
16. Increase in TV viewing habits
17. Increase in time spent at stores by shoppers
18. If the sales from a retail store, during the month of January, were 20 units, and the store obtained a delivery of 25 units in January such that the ending inventory was 20 units, what was the beginning inventory?
19. 15
20. 25
21. 20
22. 35
23. 5
24. Standardized data is normally gathered when
25. Several information users have common needs
26. Information needs are not recurrent
27. Information needs are recurrent
28. a and c
29. a and b

Chapter 6

True or False:

1. The profile of online shoppers is likely to be different from traditional retail shoppers
2. Because the internet does not recognize geographic boundaries, segmenting customers becomes a challenging task for marketers
3. Click through rate is a more accurate measure of advertising effectiveness than eyeballs
4. On line focus groups are appropriate when respondents from different geographic regions have to be brought together
5. Intelligent agents allow consumers to compare prices across different vendors of a product by accessing a single website

Multiple Choice:

1. The Internet helps target customers more effectively because

1. A database of customer behavior can be maintained
2. Geographic limitations do not constrain a firm from reaching the right customers
3. Only the profitable customers visit websites
4. a and c
5. a and b

1. The Internet can be used as a primary information source

1. By posting online surveys
2. By searching company websites
3. By monitoring web traffic
4. a and b
5. a and c

1. Shopping bots like BizRate.com use______to offer a convenient shopping experience

1. Intranets
2. Intelligent agents
3. Firewalls
4. Extranets
5. Email

1. The Internet can be used for researching secondary information

1. By collecting information through interactive online forms
2. By sending out email surveys
3. By searching company and brand websites
4. a and b
5. a and c

1. Direct response advertising

1. Is not possible over the internet
2. Includes a call for action from the customer
3. Is well suited for the internet
4. a and b
5. b and c

Chapter 7

True or False:

1. Focus group discussions provoke less spontaneity and candor than can be expected in a personal interview
2. An observation study can never be a quantitative study
3. Content analysis is used to determine the range of products stocked by a retailer
4. Observation methods are not affected by observer subjectivity
5. Computers cannot be used to analyze information from qualitative research

Multiple Choice:

1. The advantage(s) of an online focus group over traditional focus groups is(are)

1. Real-time results
2. Lower costs
3. Not limited by geographical boundaries
4. All of the above

1. Observational methods can record

1. Attitudes
2. Motives
3. Reaction to pack graphics
4. a and b
5. a, b, and c

1. Counting the number of people who cross the road against the light after a road safety campaign has been aired is an example of

1. Exploratory research
2. Observational study
3. Humanistic enquiry
4. Content analysis
5. Physical trace measure

1. Observational method may be the only research alternative when

1. Measuring sales of a product
2. Measuring the impact of advertising
3. Understanding preferences of young children who cannot articulate their thoughts
4. Exploring underlying beliefs
5. Statistical testing has to be carried out

1. Laddering is a techniques used in individual in-depth interviews where

1. Questions progress from user characteristics to product characteristics
2. The dialogue can move from a tangible aspect of a product to the product’s contribution to a person’s self esteem
3. a and b are both applicable
4. a and b are both inapplicable

Chapter 8

True or False:

1. Surveys cannot be used to determine causality
2. Survey errors are caused when respondents are unavailable to answer the survey questions
3. In an omnibus survey the costs of the research are shared by multiple clients
4. SRDD is not a random sampling method
5. In a random sampling exercise, if a respondent is unavailable, no efforts should be made to contact that respondent subsequently

Multiple Choice:

1. In SRDD, if the researcher is interested in surveying people belonging to the exchange codes (860)-450-_ _ _ _ and (860)-451-_ _ _ _, the total number of telephone numbers to choose from is

1. 19998
2. 20000
3. 9999
4. 10000
5. Not determinable

1. Online surveys score over traditional personal interviews because,

1. There is virtually no non-response bias
2. There is no scope for respondent fraud
3. There is no interviewer bias
4. It offers lower costs
5. c and d

1. The major advantage of a purchase intercept technique is that

1. It costs less than a mall intercept approach
2. It samples only purchasers
3. It captures information from the respondent when the purchase is still salient
4. It eliminates interviewer bias
5. It can be used for virtually any product category

1. Mail surveys are preferred when

1. Anonymity is desired by respondents
2. Costs have to be kept low
3. Multiple states spanning a large geographical area need to be covered
4. Sensitive or embarrassing topics are being researched
5. All the above

1. Telephone interviews are losing popularity in the US mainly because

1. Not everyone owns a telephone
2. The do-not-call list does not allow the sample to remain random
3. Cost per call is increasing
4. The respondents prefer to be interviewed in a language other than English
5. None of the above

Chapter 9

True or False:

1. In an interval scale the ratios of the differences in scale values cannot be meaningfully interpreted
2. In Q-sort scaling the number of groups should be less than ten
3. A balanced scale should always have an odd number of categories
4. Multiple item scales are better than one overall question when it measuring attitudes
5. Predictive validity can be established by measuring two variables at the same time

Multiple Choice:

1. When there are ten objects to be ranked
2. There is usually no problem with the ranking of the first and the last objects
3. The objects in the middle may not be accurately ranked
4. Respondents end up making 45 paired comparisons
5. All the above
6. a and b only
7. The following is not true of ‘reliability’
8. It is a necessary but not a sufficient condition for validity
9. It tells us if the measure is stable over time or not
10. It is measured by computing the coefficient alpha
11. It increases if the number of scale categories is increased
12. It will be upwardly biased if the period between test and retest is too short
13. Advertising recall is expected to be dependent on past exposure to ads. However, advertising recall may also depend on a person’s interest in the product category. This is a situation where the advertising recall measure reflects two different concepts. This is an example of
14. Lack of convergent validity
15. Lack of discriminant validity
16. A multiple item scale
17. Sampling error
18. Non-response bias
19. A good brand rating scale should
20. Have a uniform distribution of responses across all its categories
21. Be able to discriminate between brands
22. Correspond to actual brand usage
23. b and c
24. a, b, and c
25. Market share can be measured along
26. A nominal scale
27. An ordinal scale
28. An interval scale
29. A ratio scale
30. a, b, c, and d

Chapter 10

True or False:

1. ‘Do you own a TIVO?’ is an example of an open ended question
2. Open response questions can be used in conjunction with closed response questions
3. Scale items showing greater variation are useful in detecting subgroups of people
4. Order bias occurs when a previous question has an obvious implication for the answer to the current question
5. When a clear actionable decision is required, it is best to include a neutral category in the question

Multiple Choice:

1. ‘On a five point agree-disagree scale, do you consider the food at McDonald’s unhealthy and inexpensive?’ is an example of
2. A biased interviewer
3. A double barreled question
4. A dichotomous question
5. A probe
6. None of the above
7. ‘Do you clean your garage often?’
8. Is a question that does not provide an adequate frame of reference in time
9. Is a leading question
10. Is a double barreled question
11. Is not a personal question
12. Pretesting should be used to
13. Ensure that the questionnaire is not too long
14. To present an early summary of findings
15. To get a preliminary idea of what issues need to be probed
16. To please the client
17. ‘Wouldn’t you say that most car salespeople are insincere?’ is
18. A double barreled question
19. A leading question
20. A multiple item question
21. A question inappropriate for quantitative research
22. A question inappropriate for qualitative research
23. ‘How many ounces of dishwashing liquid did you use last year?’ is
24. A meaningful question
25. A clear question
26. A difficult question to answer
27. a and b
28. a, b, and c

Chapter 11

True or False:

1. It is always appropriate to carry out a census rather than sampling
2. Non sampling error decreases as sample size increases
3. Accuracy of stratified sampling decreases if there are dissimilarities between the groups and similarities within the groups
4. Systematic sampling is recommended when sampling time periods
5. If the sum of the squared deviations obtained from a sample of 10 objects is 160, then the sample standard deviation is exactly 4

Multiple Choice:

1. If out of 800 drinkers in the population, 200 are heavy drinkers and 600 are light drinkers, and a sample of 80 is chosen consisting of 40 heavy drinkers and 40 light drinkers, the sampling procedure followed would have been

1. Non-probability sampling
2. Inversely proportional sampling
3. Dichotomous sampling
4. Disproportional stratified sampling
5. Strategic sampling

1. If we are satisfied with a 95% confidence level, and are able to pick a sample of 36 from a population whose variance is 4, the sampling error will not exceed

1. 0.67
2. 0.55
3. 0.33
4. 0.4
5. 0.2

1. When the size of the population is large, for an allowed sampling error the required sample size

1. Varies according to the size of the population
2. Varies according to the confidence level required
3. Varies according to the variance in the population
4. a and b
5. b and c

1. If it is known that 95 % of the people in a city have a monthly income between $5000 and $25000, a good estimate of the population standard deviation is

1. 4000
2. 5000
3. 2000
4. 20000
5. 30000

1. If we pick a sample of 25 from the city referred to in the previous question, and record the income levels, the standard error of the estimate for the mean income is

1. 800
2. 4000
3. 400
4. 1000
5. 20000

Chapter 12

True or False:

1. Standardization allows a market researcher to compare the variances of two variables like price (in dollars) and sales (in units)
2. The jersey numbers that represent the basketball players in a college team are an example of a categorical variable
3. A frequency distribution can be used to indicate if the data follow a normal distribution
4. Non-metric data are measured on an interval scale
5. The x-axis of a histogram is intervally scaled

Multiple Choice: