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Marketing Chapter 4
Test banks and vocab for chapter 4
171
Marketing
02/19/2011

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Term
Customer Insights
Definition
Fresh understandings of customers and the marketplace derived from marketing information that become the basis for crating customer value and relationships.
Term
Marketing Information Systems (MIS)
Definition
People and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
Term
Internal databases
Definition
Electronic collections of consumer and market information obtained from data sources within the company network.
Term
Marketing intelligence-
Definition
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Term
Marketing Research-
Definition
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Term
Exploratory Research
Definition
Market research to gather preliminary information that will hep define problems and suggest hypotheses.
Term
Descriptive Research-
Definition
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.
Term
Causal Research-
Definition
Marketing research to test hypotheses about cause-and-effect relationships.
Term
Secondary Data-
Definition
Information that already exists somewhere, having been collected for another purpose.
Term
Primary Data-
Definition
Information collected for the specific purpose at hand.
Term
Commercial Online Databases-
Definition
Computerized collections of information available from online commercial sources or via the Internet.
Term
Observational Research
Definition
Gathering primary data by observing relevant people, actions, and situations.
Term
Ethnograph Research
Definition
A form of observational research that involves sending trained observers to watch and interact with consumers in their natural habitat.
Term
Survey Research
Definition
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
Term
Experimental Research-
Definition
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Term
Focus Group Interviewing-
Definition
Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.
Term
Online Marketing Research-
Definition
Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers' online behavior.
Term
Online Focus Groups
Definition
Gathering a small group of people online with a trained moderator the chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior.
Term
Sample
Definition
A segment of the population selected for marketing research to represent the population as a whole.
Term
Customer relationship management (CRM)
Definition
Managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty.
Term
Despite the data glut that marketing managers receive, they frequently complain that they lack ________.
Definition
enough information of the right kind
Term
Which of the following statements is NOT true regarding information collected for marketers?
Definition
Managers have enough of the right information.
Term
A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information.
Definition
develop the needed information
Term
A good MIS balances the information users would ________ against what they really ________ and what is ________.
Definition
like to have; need; feasible to offer
Term
Marketers must weigh carefully the costs of additional information against the ________ resulting from it.
Definition
benefits
Term
Four common sources of internal data include the accounting department, operations, the sales force, and the ________.
Definition
marketing department
Term
Marketing information from which type of database usually can be accessed more quickly and cheaply than other information sources?
Definition
internal
Term
) ________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Definition
Marketing intelligence
Term
Which of the following statements regarding marketing intelligence is true?
Definition
) Marketing intelligence relies upon publicly available information.
Term
Which of the following is NOT considered a source of marketing intelligence?
Definition
causal research
Term
Which of the following is NOT a potential source for marketing intelligence?
Definition
collecting primary data
Term
Through which of these sources of information is a competitor LEAST likely to reveal intelligence information?
Definition
internal marketing conferences
Term
To combat marketing intelligence efforts by competitors, Unilever Corporation is now providing ________ to employees.
Definition
competitive intelligence training
Term
Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence?
Definition
the U.S. Security and Exchange Commission's database
Term
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Definition
Marketing research
Term
What is the first step in the marketing research process?
Definition
) defining the problem and research objectives
Term
Which step in the four-step marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings?
Definition
developing the research plan
Term
Causal research is used to ________.
Definition
test hypotheses about cause-and-effect relationships
Term
Managers often start with ________ research and later follow with ________ research.
Definition
exploratory; causal
Term
Your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take.
Definition
defining the problem and research objectives
Term
The objective of ________ research is to gather preliminary information that will help define the problem and suggest hypotheses.
Definition
exploratory
Term
In the second step of the marketing research process, research objectives should be translated into specific ________.
Definition
information needs
Term
Secondary data consists of information ________.
Definition
that already exists but was collected for a different purpose
Term
Information collected from online databases is an example of ________ data.
Definition
secondary
Term
Which form of data below can usually be obtained more quickly and at a lower cost than the others?
Definition
secondary
Term
Secondary data are ________.
Definition
not always very usable
Term
Your assistant wants to use secondary data exclusively for the current research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them?
Definition
It is generally more expensive to obtain than primary data.
Term
For primary data to be useful to marketers, it must be relevant, current, unbiased, and ________.
Definition
accurate
Term
Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide?
Definition
observational
Term
Ethnographic research ________.
Definition
) is gathered where people live and work
Term
Survey research, though used to obtain many kinds of information in a variety of situations, is best suited for gathering ________ information.
Definition
descriptive
Term
Fredia Pellerano has just discovered the major advantage of survey research. She reports to her supervisor that the major advantage is its ________.
Definition
flexibility
Term
Survey research is least likely to be conducted through which of the following?
Definition
observation
Term
Experimental research is best suited for gathering ________ information.
Definition
causal
Term
Observational research is best suited for gathering ________ information.
Definition
exploratory
Term
Which of the following is true of ethnographic research?
Definition
It provides greater insight into customer behavior than interviews do.
Term
ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has all the following advantages EXCEPT which one?
Definition
has an average response rate
Term
Which of the following contact methods has the poorest response rate?
Definition
mail
Term
Which of the following has the highest rating for speed of data collection and compilation?
Definition
Internet surveys
Term
Which of the following is NOT a disadvantage of telephone interviews?
Definition
Interviewers can explain some questions and probe more deeply on others.
Term
Which of the following contact methods is generally the LEAST flexible?
Definition
mail
Term
Which form of marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements?
Definition
individual interviewing
Term
A consumer is most likely to be paid a small fee for participating in which of the following?
Definition
a focus group interview
Term
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 ________.
Definition
generalize from the results
Term
Which of the following is a disadvantage of online focus groups?
Definition
The Internet format can restrict respondents' expressiveness.
Term
Which of the following is NOT an advantage of Web-based research?
Definition
control over who respondents are
Term
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.
Definition
online social network
Term
Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.
Definition
sample
Term
You generally need to ask three questions when developing a sampling plan. Which of the questions below is one of these three?
Definition
How should participants be chosen (sampling procedure)?
Term
What is a major drawback of probability sampling?
Definition
It can be time consuming.
Term
What are the two main types of research instruments used to collect primary data?
Definition
questionnaires and mechanical devices
Term
The most common research instrument used is the ________.
Definition
questionnaire
Term
) In marketing research, the ________ phase is generally the most expensive and most subject to error.
Definition
data collection
Term
AMF Research Group must guard against problems during the implementation phase of marketing research for its clients. Which of the following is NOT a problem that should be anticipated during this phase?
Definition
interpreting and reporting the findings
Term
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?
Definition
customer relationship management
Term
Which of the following is true about customer relationship management (CRM)?
Definition
) Its aim is to maximize customer loyalty.
Term
What is the purpose of a data warehouse?
Definition
to gather and integrate information a company already has
Term
In CRM, findings about customers discovered through ________ techniques often lead to marketing opportunities.
Definition
data mining
Term
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?
Definition
an intranet
Term
Marketing information is only valuable when it is used to ________.
Definition
) make better marketing decisions
Term
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 ________.
Definition
informal surveys
Term
Small organizations can obtain, with minimal effort, most of which type of data available to large businesses?
Definition
secondary
Term
You have been asked to locate secondary data for your small organization's research needs. Which of the following is NOT a common source for this type of research?
Definition
online surveys
Term
The availability of which of the following is most problematic in international marketing research?
Definition
secondary data
Term
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 ________.
Definition
samples
Term
What do many researchers encounter when conducting market research in foreign countries?
Definition
Some countries have few telephones, limiting access to respondents.
Some countries have poor mail services.
Some countries have poor roads that limit personal contacts.
Some cultures do not value marketing research.
Term
Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________.
Definition
risk of error
Term
Anna Gregory just read a marketing research report about the top 25 countries that purchase American products. What would the report most likely say about international research involving these countries?
Definition
Despite the costs of international research, the costs of not doing it are higher.
Term
Choose the statement that is NOT a typical consumer concern about intrusion on consumer privacy.
Definition
Marketers make too many products and services available, creating unnecessary consumer wants.
Term
Behavioral targeting, the practice of ________, is being used by more and more companies.
Definition
tracking consumers' online movements and using this information to target ads to them
Term
Consumers will be most likely to gladly provide research information when researchers provide ________.
Definition
value for the exchange
Term
The best approach for researchers to take to guard consumer privacy includes all of the following EXCEPT which one?
Definition
Sell the information only when it is financially worthwhile.
Term
Many major companies have created the position of ________ to address concerns about the privacy of customers.
Definition
chief privacy officer
Term
Google and Yahoo! routinely post ads related to a user's keyword searches alongside the searches. This practice is called ________.
Definition
contextual targeting
Term
To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________.
Definition
codes of research ethics
Term
Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases.
Definition
internal
Term
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?
Definition
marketing intelligence
Term
Patti Lovelace is making a presentation to the owners of her company. She is trying to convince them to conduct some current marketing research. Which of the following would she be LEAST likely to emphasize as a benefit or selling point of marketing research?
Definition
measuring the effectiveness of pricing and accounting
Term
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.
Definition
exploratory
Term
You are about to test hypotheses about decreasing sales in certain markets and their causes. You are involved in what type of research?
Definition
causal
Term
Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference?
Definition
descriptive
Term
Wal-Mart sends a trained observer to watch and interact with customers as they shop in a Wal-Mart store. This is an example of ________.
Definition
ethnographic research
Term
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.
Definition
ethnographic
Term
Carls Jr. came out with a new hamburger and released it in two different cities with two different price points. Marketers at Carls Jr. then analyzed the different levels of purchase made at the two different price points, planning on using the information to help them set a nationwide price for the new offering. This is an example of ________.
Definition
experimental research
Term
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.
Definition
experiments
Term
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?
Definition
mail questionnaires
Term
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?
Definition
Internet surveys
Term
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.
Definition
stratified random sample
Term
You have decided to use only open-end questions on your survey. Which of the following questions would NOT be found on your survey?
Definition
) How many cars does your family own?
Term
Which of the following is good advice about creating research questionnaires for Mark Hammel, research specialist at New Wave Data, to follow?
Definition
Use care in the wording and ordering of questions.
Term
You have decided to use only closed-end questions on your survey. Which of the following questions would NOT be found on your survey?
Definition
What do you like about your teacher?
Term
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?
Definition
questionnaires
Term
Tommy Baker is in charge of CRM for American Pie Nostalgia. As a result of his successful efforts in this area, his firm will likely enjoy all of the following EXCEPT ________.
Definition
understanding the competition better
Term
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?
Definition
reward customer loyalty with an upgrade or discount
Term
Marialba Hooper is conducting marketing research for a company that is investigating the possibility of entering multiple international markets. As Marialba plans her research in 30 different countries, upon which of the following is she LEAST likely to rely?
Definition
free secondary data
Term
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?
Definition
have the questionnaire translated back into English to check for accuracy
Term
Refer to the scenario below to answer the following questions.

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 has seen a decline in demand for office cleaning. Surprisingly, the competitive environment appears 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 Web sites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.
Definition
Term
In this scenario, which of the following is an example of primary data?
Definition
responses to the 75 surveys
Term
Jason wanted to better understand how his customers assess service quality. This is an example of a ________.
Definition
research objective
Term
In this scenario, which of the following are examples of marketing intelligence?
Definition
competitors' pamphlets
phone calls made to competitors to learn about their offerings
Term
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 ________.
Definition
stratified random sample
Term
Most marketers today believe they still lack a sufficient quantity of research data to make high-quality decisions.
t/f
Definition
false
Term
The real value of marketing research and information lies not in quantity but in the customer insights provided.
t/f
Definition
true
Term
An effective MIS assesses information needs, develops needed information, and helps decision makers use the information.
t/f
Definition
true
Term
Today, marketing managers view marketing information not only as an input for making internal decisions but also as an input for external partners.
t/f
Definition
true
Term
Too much marketing information can be as harmful as too little.
t/f
Definition
true
Term
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.
t/f
Definition
true
Term
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 useable form to build an internal marketing database.
t/f
Definition
false
Term
It is important to note that data age quickly, so keeping the database current requires a major effort.
t/f
Definition
true
Term
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.
t/f
Definition
false
Term
Good sources of marketing intelligence information include competitors' annual reports, business publications, trade show exhibits, press releases, advertisements, and Web pages.
t/f
Definition
true
Term
After conducting formal marketing research for your department, you make an oral presentation with notes to management. You are following the normal order of marketing research steps.
t/f
Definition
false
Term
Once the research problems and objectives have been defined, researchers must determine the exact information needed and present it to management.
t/f
Definition
false
Term
Marketing researchers can conduct their own searches of secondary data sources today by using commercial online databases.
t/f
Definition
true
Term
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.
Definition
false
Term
The most important issue facing online researchers is the lack of a broad cross section of consumers who have access to the Internet.
t/f
Definition
false
Term
Focus groups use no interviewer to bias the answers, may produce more honest answers, and can be used to collect large amounts of data at a low cost per respondent.
t/f
Definition
false
Term
ABC Interior Designs wants to collect research data through mechanical observation. The three typical methods are video cameras, checkout scanners, and Internet surveys.
t/f
Definition
false
Term
Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population.
t/f
Definition
true
Term
A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples.
t/f
Definition
false
Term
Online social networks such as the "I Love My Dog" community organized by Del Monte offer marketers much broader and deeper information than can be obtained from traditional focus groups.
t/f
Definition
true
Term
Samples of less than one percent of a population cannot provide good reliability.
t/f
Definition
false
Term
Open-ended survey questions are particularly useful in exploratory research.
t/f
Definition
true
Term
Interpretation of market research data should be the responsibility of the researchers, not the marketing managers.
t/f
Definition
false
Term
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).
t/f
Definition
true
Term
The ability to reach respondents is a major concern in international marketing research.
t/f
Definition
true
Term
Discuss the makeup and functions of a marketing information system (MIS).
Definition
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.
Term
Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Explain some common sources for each of these.
Definition
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 provide data on resellers, competitors, buyer behavior, and the industry; and marketing provides information on customer transactions, demographics, and buying behavior. 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.
Term
Describe the basic marketing research process.
Definition
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.
Term
Briefly compare the three different types of research approaches for gathering primary data.
Definition
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.
Term
Provide the advantages/benefits of each of the contact methods.
Definition
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 behaviors 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.
Term
Describe the three decisions a researcher must make when designing a sample.
Definition
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.
Term
Compare and contrast closed-end questions and open-end questions for gathering data.
Definition
Closed-end 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-end 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.
Term
How can a company overcome the problem of gathering internal data for research purposes when the data is usually scattered widely across the organization?
Definition
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.
Term
Discuss several ways in which smaller organizations can use marketing research techniques at little or no expense.
Definition
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.
Term
Explain the common problems that international marketing researchers encounter.
Definition
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.
Term
Briefly explain the following statement: "Too much information can be as harmful as too little."
Definition
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.
Term
You have decided to run for a local political office. You want to hand-deliver campaign materials in person to the homes of voters. Explain how marketing intelligence plays a role in this scenario.
Definition
You must have a system for knowing where the voters live; merely knocking on every door would be inefficient. You need a list of registered voters and their addresses from which you can plan your visits.
Term
When do marketers need marketing research?
Definition
Marketing research becomes important when marketing intelligence cannot provide the detailed information needed for a specific situation.
Term
Explain why exploratory research, descriptive research, or causal research would be the best method for determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than shoppers on the East Coast are.
Definition
Causal research would be most important because it investigates cause-and-effect relationships; causal research would allow the researcher to test a hypothesis about price sensitivity and compare the differences in the two geographic regions.
Term
Why is it important for the statement of the problem and the research objectives to guide the entire research process?
Definition
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.
Term
You want to determine whether no-smoking policies have impacted employee morale in the United States in the past two decades. Are any secondary data likely available? Why?
Definition
Yes, there are likely to be several studies conducted from which the researcher could extract information because many companies have implemented no-smoking policies in the past twenty years.
Term
You want to determine whether no-smoking policies have impacted employee morale in the United States among workers in companies that employ fewer than 50 workers in Fort Wayne, Indiana. Are any secondary data likely available? Why?
Definition
Because the data sought are so specific, there will likely not be much, if any, data that specifically answer the question.
Term
Give two ways that a researcher should evaluate information in on online databases.
Definition
The researcher should evaluate whether the data are relevant, current, unbiased, and accurately presented.
Term
You are trying to determine whether retired people drink more coffee at McDonald's during lunch than they do during dinner. Why is observation research NOT effective in this scenario?
Definition
: It is difficult to determine, just by looking, whether people are retired.
Term
Why would survey research be a better approach than observation research when attempting to assess customer satisfaction?
Definition
Survey research is more effective than observation in measuring customer satisfaction because observations of smiling customers or armloads of merchandise, for example, do not necessarily indicate customer satisfaction.
Term
A marketer of frozen dinners has decided to collect consumer feedback via a focus group interview. How might the marketer use the focus group interview to determine whether peas or green beans should be included with the turkey entrée?
Definition
The group might be given a prepared meal with both vegetable options. Afterward, the marketer can obtain fresh feedback from the respondents or through observation. The marketer could assess respondents' reactions and facial expressions while they eat provided meals.
Term
A researcher is collecting data from travelers in an airport. Why might a sample be most appropriate?
Definition
People in an airport are often in a hurry; not everyone will want to participate in providing data. Therefore, the researcher may be satisfied with collecting data from whoever is willing to provide it.
Term
Explain why it's important for both the researcher and the marketing manager to interpret the findings of market research.
Definition
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.
Term
Why is it difficult to obtain relevant and reliable secondary data when conducting international marketing research?
Definition
Unlike 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.
Term
Why has consumer resentment toward marketing research been growing?
Definition
More individuals are wary of invasion of privacy and want to protect personal information; many also simply resent the intrusion of marketing research and dislike surveys that are too long or too personal.