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Nelson Education > Higher Education > Marketing, Second Edition > Test Yourself > 

CHAPTER 7 Decision Support Systems and Marketing Research

TRUE/FALSE QUESTIONS
Answer whether the following statements are true or false

1 Explain the concept and purpose of a marketing decision support system

1. Marketing intelligence is a measure of the skills and education levels of employees in a marketing department.
true
false

2 Define marketing research and explain its importance to marketing decision making

2. Marketing research is but one component in a decision support system (DSS).
true
false


3 Describe the steps involved in conducting a marketing research project

3. Cosmic Bowling has experienced a decline in sales over the past five years. Management at the bowling alley has defined the problem and would like to get started with some marketing research. The next step in the research process is to determine which methodology to use to gather information.
true
false

4. Jim and Kim operate a day-care centre for children. They want to learn more about the parents of the children but don't have money available to conduct research. To save money, Jim suggests they use the results of a survey they conducted last year because they were asking some similar questions then. Jim is suggesting they use primary research data.
true
false

5. John is gathering information in the form of primary data on the drinking habits of underage, undergraduate students who are business majors and live in apartments without roommates. The major advantage of using primary data is that this is probably the only way he could get questions about such a specific topic answered.
true
false

6. The Internet can be used for both primary and secondary research.
true
false

7. Rebecca needs twenty people to fill out a survey for her marketing class project. She stands outside the library and hands the survey to the first twenty people who come out. Rebecca is using a random sample.
true
false

5 Explain when marketing research should and should not be conducted

8. Gregg's Frozen Custard has operated in the same county for the last ten years, has developed a loyal customer base, and is pleased with its marketing research to date. Management plans to introduce hot soups to three of its stores, with the knowledge that this addition has been successful in the other four outlets. Gregg's probably does not need to conduct more marketing research before introducing the soups to the remaining stores.
true
false

MULTIPLE-CHOICE QUESTIONS
Select the response that best answers the question, and write the corresponding letter in the space provided.

1 Explain the concept and purpose of a marketing decision support system

9. Decision support systems have all the following characteristics EXCEPT:
a. flexibility
b. accessibility
c. interactive features
d. difficult to learn
e. discovery orientation

10. Which of the following is the best example of the interactivity of a decision support system?
a. Managers who are not skilled with computers can use the system.
b. Managers give simple instructions to the system and see immediate results.
c. Managers can create "what if" scenarios.
d. The system can manipulate data in various ways.
e. The system is not costly.

11. Marketing decision support systems have all the following characteristics EXCEPT:
a. flexibility
b. discovery-oriented
c. interactive
d. accessibility
e. difficult to learn

2 Define marketing research and explain its importance to marketing decision making

12. The manager for Slurp Soda has requested marketing research to find out why a recent rebate offer failed to generate much response or any increase in sales. This type of research is:
a. descriptive
b. predictive
c. historical
d. normative
e. diagnostic

13. An advertising agency is researching consumer attitudes toward a TV commercial that promotes a cellular phone service. This type of research is:
a. descriptive
b. predictive
c. historical
d. normative
e. diagnostic

14. Which of the following best illustrates the predictive role of marketing research?
a. Exit poll research has found that 60 percent of voters voted for the incumbent senator.
b. A survey concludes that nine out of ten dentists recommend Brite toothpaste.
c. Consumers in a focus group explain why they like the new product.
d. Research has found that consumers do not like the new product improvement.
e. Research has found that increasing a product's price 20 percent will result in a sales decrease of 35 percent.


3 Describe the steps involved in conducting a marketing research project

15. The manager of a video rental store is worried about his store's performance. Sales have declined steadily over the past two years, and she cannot explain why. She would like to do some research. What should her first step in the market research process be?
a. collect the data
b. plan the research design
c. analyze the marketplace
d. recognize the marketing problem
e. specify the sampling plan

16. The President of Clone Clothing stores has seen her chain of stores experience a decline in sales. She disliked the recent advertising campaign and feels the campaign caused the sales decline. She conducted research showing potential customers were not enthusiastic toward the ads for Clone Clothing. Which of the following actions should be taken?
a. conduct an experiment to show which of several alternative advertising campaigns are most appealing to potential Clone customers
b. perform a survey to see how knowledgeable potential customers are with Clone Clothing
c. investigate to reveal the exact problem with the advertising and why it caused sales to decline
d. do a survey first to see if an experiment would be cost effective
e. find out what exactly caused the sales decline

17. Which of the following is the best example of a marketing research objective?
a. To determine why sales have decreased over the past three years.
b. To create a print advertisement emphasizing customer service.
c. To determine what role children have in influencing family decisions about vacation destinations.
d. To increase sales by 10 percent.
e. To develop a method to track consumer attitudes.

18. The Play-It-Again used sporting equipment outlet cannot afford to collect primary data and has decided to use secondary data to answer some research questions. Play-It-Again should realize the potential disadvantages of secondary data, which include:
a. the difficulty of holding certain variables constant while varying one factor of interest
b. the high cost of collecting secondary data
c. the information may not fit the needs of the research problem
d. the measurement error that can occur during the collection process
e. the length of time it takes to collect secondary data

19. When assessing the quality of secondary data, it is:
a. not necessary to know why the data were collected in the first place
b. important to be able to have easy access to the data
c. not important to know when the data were collected
d. important to know the purpose for which the data were originally collected
e. imperative to use the same methods and procedures when primary data are collected

20. You would like to find some annual sales figures of a major competitor as part of your secondary data research. You have decided to use the World Wide Web as your source. Which of the following is the most direct way of finding out this information?
a. Type the words "sales" and the competitor's name in a search engine.
b. Type the URL (Uniform Reference Locator) of the competitor and search through annual reports.
c. Type the competitor's name in a search engine and scan for sales information.
d. Type the URL (Uniform Reference Locator) of a trade association to which you both belong.
e. Type the word "sales" in a search engine and scan for the competitor's name.

21. Which of the following World Wide Web domain name extensions would be used by a for-profit company?
a. .org
b. .net
c. .gov
d. .com
e. .pro

22. Which of the following is NOT a search engine on the World Wide Web?
a. Infoscan
b. Alta Vista
c. Yahoo
d. Excite
e. Infoseek

23. The Porter Finance Company has decided to collect primary data but knows that this has the disadvantage of:
a. high cost compared to secondary data
b. accessibility only through complex computerized data bases
c. being nonsecure data because of its availability to any interested party for use
d. potential irrelevance to the problem at hand
e. not providing a realistic picture of the marketplace

24. The Acme Marketing Department is collecting data on consumers' spending habits and their attitudes toward environmental legislation, using one questionnaire. This is an example of a(n):
a. piggyback study
b. single-source study
c. dual-probe survey
d. dichotomous question
e. experiment

25. The Robo-Vac company wants to get consumer feedback about the style, features, and a demonstration of the operation of its prototype automatic mini-vacuum cleaner. What form of survey would allow them to do this?
a. mall intercept
b. mail questionnaire
c. telephone interview
d. observation study
e. laboratory experiment

26. A local political party has decided to use telephone interviews to help predict the next election because this technique offers:
a. speed in gathering data
b. few nonresponses
c. a potential for census rather than sample data
d. the ability to collect complex and large amounts of data
e. the least amount of sampling error

27. The biggest disadvantage of Internet surveys is that:
a. the cost is prohibitive.
b. it has a lower response rate than mail or telephone surveys.
c. the respondents are not representative of the population as a whole.
d. research firms can only communicate with respondents during business hours.
e. the respondents may not provide accurate answers to questions.

28. Behaviour Research Company is calling several people to determine who would be appropriate respondents to a long Internet survey it would like to administer. The people who agree to take the survey are then directed to a Website that contains a link to the survey. The respondents taking the Internet survey are an example of:
a. a recruited Internet sample.
b. a screened Internet sample.
c. an Internet focus group.
d. an unrestricted Internet sample.
e. a mass market sample.

29. You have been hired to view store customers through a video camera and record the number of times a shopper pauses beside the special display case. You are engaging in:
a. survey sampling research
b. experimental research
c. observation research
d. focus group research
e. panel research

30. Cox's Department Stores wanted to learn more about its customers and their shopping habits in Cox's stores. After considering several different methods, Cox's decided on observation research because:
a. biases from the interviewing process are eliminated
b. it relies on the respondent's willingness to provide the desired data
c. it has a relatively high response rate
d. attitudes and motivations are clearly demonstrated in observation research
e. it is actually an experiment using natural environments

31. A research manager decides to have his telephone interviewers dial every tenth number in the telephone directory. This is a:
a. convenience sample
b. probability sample
c. stratified sample
d. quota sample
e. nonprobability sample

32. Caryn will be sending a survey to 25 percent of her carpet-cleaning service customers. She used a random number table to select customers from her master customer list. This is an example of:
a. field service sample
b. random sample
c. nonprobability sample
d. regular sample
e. convenience sample

33. Marty has decided that it is not absolutely necessary to have a sample representative of the population. However, a problem associated with nonprobability samples is:
a. setting up the method
b. that they create measurement errors
c. that there is no way of knowing how much sample error has accumulated
d. finding respondents
e. that so few researchers understand them

34. Jerome has to interview eighty people for his marketing research class project and decides to use his fellow dorm residents. This is a:
a. convenience sample
b. probability sample
c. simple random sample
d. field service sample
e. multirespondent sample

35. After Yellow-Belly Jelly Beans, Inc., received the results of a survey that measured parents' intentions to buy jelly bean packages for Easter, the firm worried that many parents overstated their intentions and would not actually buy. This is what kind of sampling error?
a. nonsampling
b. frame
c. random
d. measurement
e. nonresponse

4 Discuss the growing importance of scanner-based research

36. Pietro's Pasta Products gathers weekly information from the same consumers. Pietro's continuously monitors the advertising the consumers are exposed to and records their purchases. Pietro's uses cable TV to send different commercials to different areas, and the consumers keep a record of all grocery purchases in return for a fee. This is a:
a. television meter investigation
b. single-source research system
c. CLT interview
d. laser scanner study
e. one-way TV observation

5 Explain when marketing research should and should not be conducted

37. Marketing research should not be undertaken when:
a. the perceived costs are greater than the projected benefits
b. it will take a long time to complete
c. there is no secondary data in existence to guide the project definition
d. the actual costs are less than the forecasted benefits
e. the perceived costs are the same as the forecasted benefits



 

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Test Yourself

Interactive Exercises

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Ch. 19 - Internet Marketing
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