Test Bank for Marketing Research 10
Edition by Burns, Veeck
ISBN: 9780135364840
Marketing Research, 10e (Burns)
Chapter 1 Introduction to Marketing Research
1) ________ is a short definition of marketing.
A) Meeting needs profitably
B) Meeting wants profitably
C) Meeting consumer demands profitably
D) Meeting business-to-business wants profitably
Answer: A
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
2) Which of the following statements best illustrates the view of marketing as service-centered?
A) The service-centered view identifies companies' core competencies.
B) The service-centered view means that marketers must know how to precisely measure service satisfaction.
C) The service-centered view sees internal service levels as more important than external service levels.
D) The service-centered view stresses that service delivery and product quality are now two different concepts.
Answer: A
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
3) Modern marketing thought holds that firms should ________.
A) separate product-orientation from service-orientation
B) focus on service-orientation at the expense of product-orientation
C) collaborate with and learn from customers
D) collaborate with and learn from competitors
Answer: C
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
4) Social media and other advances in technology enable companies to ________.
A) develop better customer relationship management tools
B) motivate employees to reduce high product and service failure rates
C) focus on defining the best set of product dimensions to match core competencies
D) determine how to create, communicate, and deliver value by "hearing the voice" of the consumer
Answer: D
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
5) Why is the marketing concept an important philosophy for marketers?
A) It sets the sales and revenue projects.
B) It dictates the market share a firm will earn and who to target.
C) It determines how marketers view their company's role in terms of what it provides for the market.
D) It determines marketing objectives and ROI.
Answer: C
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
6) Adopting the marketing concept means that ________.
A) we have adopted the "right strategy"
B) our focus should be on the "right price" at the "right place"
C) marketers cannot use just any strategy, but must develop the "right" strategy
D) we need to develop "right pricing," "right promotion," and "right distribution"
Answer: C
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
7) When firms make the right decisions, products and services are produced that its target markets perceive as having value. That value translates into ________.
A) sales, profits, and a positive ROI
B) product success and profits
C) a profitable bottom-line
D) global as well as domestic market success
Answer: A
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
8) Which of the following should be revised on an ongoing basis to produce the right strategy as environments change?
A) Market plan decisions
B) Product development decisions
C) Business decisions
D) Financial decisions
Answer: C
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
9) Marketing research provides managers with new information to help them make decisions. Answer: TRUE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
10) Because of new technologies, the competitive landscape changes with less frequency than before.
Answer: FALSE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
11) The American Marketing Association defines advertising and sales promotion as the activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Answer: FALSE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
12) Because of new methods of market research, modern marketing thought holds that firms should not collaborate and learn from consumers.
Answer: FALSE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
13) Crowdsourcing is the practice of obtaining services or ideas by asking for assistance from large groups of people, generally online communities.
Answer: TRUE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
14) In many examples of failed products and services, managers could have avoided the associated losses if they had conducted proper marketing research.
Answer: TRUE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
15) The marketing mix is a business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.
Answer: FALSE
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
16) To fully appreciate the role of marketing research, it is helpful to understand its role in and relationship to marketing. Discuss the role of marketing research and its role in and relationship to marketing.
Answer: Answers should mention either the short definition of marketing ("meeting needs profitably") or the lengthier version by the American Marketing Association. Discussion should focus on the relationship of the objectives of marketing and the role of marketing research in helping marketers make crucial decisions. To practice marketing well in today's environment requires access to more and better information. Answers should note that not only is marketing research part of marketing, but also provides information to decision makers.
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
17) Advances in technology have increased the opportunities for marketers to "listen" to their consumers. Discuss these advances and the impact on the ability of companies to "hear" the voices of their customers.
Answer: Answers should note that social media provides an important means for marketers to "hear the voice of the consumer" to determine how to create, communicate, and deliver value that will result in long-lasting relationships with customers. The response should discuss how digital media has created a culture that encourages consumer collaboration. The discussion should note that an important collaboration method is crowdsourcing. Crowdsourcing is the practice of obtaining services or ideas by asking for assistance from a large group of people, generally online communities. Crowdsourcing via digital media is just one of many new tools for marketing research.
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
18) The marketing concept is a much more effective philosophy than either the sales or product orientation philosophies. Define the marketing concept and discuss its relationship to marketing research. Why is the marketing concept considered more effective?
Answer: Answers will vary, but students should define the marketing concept like the following: The marketing concept is a business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets. Discussion should note that focusing on either sales or products can drive a company out of business because there is little or no recognition of market factors or customers. Comments may include that for many years, business leaders have recognized that the marketing concept is the "right" philosophy. Although the term marketing concept is often used interchangeably with other terms, such as "customer orientation" or "market-driven," the key point is that this philosophy puts the consumer first. The discussion should point out, however, that the marketing concept is just the first step in being successful firms must put together the right strategies. Answers will point out that marketing research helps put the right strategies in place.
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
19) Explain market strategy and why marketing research is important to strategy makers. Do strategies exist in functional areas other than marketing? What is the impact of the marketing concept on marketing strategy?
Answer: Comments should include a statement to the effect that strategy is another name for planning. Answers should include discussion that states firms have strategies in many areas other than marketing. Financial strategy, production strategy, and technology strategy, for example, may be key components of a firm's overall strategic plan. Marketing strategy should be defined like the following: A marketing strategy consists of selecting a segment of the market as the company's target market and designing the proper "mix" of product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market. Advanced answers should note that because marketers have adopted the marketing concept, they could not come up with just any strategy. Marketers must develop the "right" strategy the strategy that allows the firm to truly meet the wants and needs of the consumers within the chosen market segment.
LO: 1.1: Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Reflective thinking
20) ________ is a process used to define the size, location, and/or makeup of the market for a product or service.
A) Differentiation
B) Market research
C) Target marketing
D) Geocentric research
Answer: B
LO: 1.2: Define marketing research in several ways
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
21) According to the American Marketing Association (AMA), what is the function of marketing research?
A) To link the consumer to marketers with information used in marketing decisions
B) To link the marketer to global and domestic markets through information
C) To link consumers and customers through targeted information
D) To link consumers, customers, and markets through specific information channels
Answer: A
LO: 1.2: Define marketing research in several ways
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
22) Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
Answer: TRUE
LO: 1.2: Define marketing research in several ways
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
23) The American Marketing Association's definition of marketing research outlines a twelvestep approach to marketing research.
Answer: FALSE
LO: 1.2: Define marketing research in several ways
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
24) Market research is not considered a subset of marketing research, but rather a separate type of marketing discipline.
Answer: FALSE
LO: 1.2: Define marketing research in several ways
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
25) Consumers now have more power to speak to others in the marketplace because of globalization, online shopping, and social media.
Answer: TRUE
LO: 1.2: Define marketing research in several ways
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
26) Consumers wanted increasingly larger TV screens to hang on their walls, so Samsung developed an ultra-thin, LED, large-screen TV. This is an example of what use of marketing research?
A) Generating potential marketing actions
B) Identifying potential marketing segments
C) Identifying marketing opportunities and problems
D) Identifying market problems and marketing actions
Answer: C
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
27) In 2014, General Mills acquired Annie's Homegrown and used marketing research to identify ways to grow the brand, promote it, and to evaluate plans to market it. This is an example of what use of marketing research?
A) Generating and identifying potential marketing actions
B) Generating, refining, and evaluating potential marketing actions
C) Identifying marketing opportunities and problems
D) Identifying market problems and generating marketing actions
Answer: B
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
28) Which of the following correctly describes the difference between basic research and applied research?
A) Applied research helps marketers understand the basic desires and motives of consumers.
B) Applied research expands our knowledge to solve a specific problem.
C) Applied research expands our knowledge, rather than solves a specific problem.
D) Applied research determines the most basic desired features in new products.
Answer: B
LO: 1.3: Identify three uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
29) There are distinct differences between basic research and applied research. ________ would be an example of basic research.
A) A winery needing to solve a specific pricing issue relative to its competitors
B) A winery needing to respond to issues related to its distribution network
C) A winery needing to understand more about exporting wine
D) A winery needing to solve a problem it is having exporting wine
Answer: C
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
30) If research shows that a significant segment of the market has identifiable needs, then that segment is said to be ________.
A) unattractive
B) stable
C) shrinking
D) growing
Answer: D
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
31) Maritz Research's New Vehicle Customer Study includes data collected over several years, and in recent years it has studied hybrids. Its market analysts know why drivers purchase hybrids, what makes them satisfied, what their expectations are for gas mileage, and preferences for alternative fuels. In which functional area would this type of research be useful?
A) Product research
B) Pricing research
C) Promotion research
D) Distribution research
Answer: A
LO: 1.3: Identify three uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
32) Chobani launched a campaign, called "The Break You Make," in 2015 to increase awareness of the Chobani Flip, an afternoon snack yogurt. Research determined that the campaign was very successful, with sales of Chobani Flip up 300% over the previous year. The main use of this type of research would be related to ________.
A) product research
B) pricing research
C) promotion research
D) distribution research
Answer: C
LO: 1.3: Identify three uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
33) What type of research would a winery use that wants to know more about sales channels, product outlets, and even whether these channels are motivated?
A) Product research
B) Pricing research
C) Promotion research
D) Distribution research
Answer: D
LO: 1.3: Identify three uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
34) General Motors did research on what became the minivan a small van suitable for families. The research did not convince them to produce it. Later, Chrysler introduced the Dodge Caravan and Plymouth Voyager minivans, which turned out to be among the most successful models in automotive history. This example most closely demonstrates that ________.
A) marketing research does not always provide management with the right answer
B) marketing research does not provide correct answers most of the time
C) management should question the methods used to conduct product market research
D) marketing research is not as reliable as management's intuition
Answer: A
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
35) Research is collected on groups or topics such as product research, pricing research, promotion research, and distribution research.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
36) Marketing research studies cannot be designed to find out what consumers' problems are and to assess the suitability of different proposed methods of resolving those problems.
Answer: FALSE
LO: 1.3: Identify three uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
37) Marketing research can be used to generate, refine, and evaluate a potential marketing action. Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
38) Marketing strategies involve selecting a target market and designing a marketing mix to satisfy the wants and needs of that target market.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
39) Market research is conducted to determine market opportunities as well as to determine the size of various market segments.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
40) Product testing usually begins with concept tests, which then leads to idea generation.
Answer: FALSE
LO: 1.3: Identify three uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
41) When a revolutionary new product is created, marketers use pricing research to determine the "value" consumers perceive in the new product.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
42) Marketers who want to know how effective expenditures are for advertising, sales force, publicity/PR, and promotional offers use product research.
Answer: FALSE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
43) Distribution research would be used by companies who want to know the best channels to get their product to consumers, the location of the best dealers for their product, or how to evaluate the service the dealer provides.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
44) Marketing professors at colleges and universities and other not-for-profit organizations, such as the Marketing Science Institute, often conduct basic research and publish their results in journals such as the Journal of Marketing Research or the Journal of Marketing.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
45) For the most part, marketing research firms are conducting basic research to solve a specific problem facing a company.
Answer: FALSE
LO: 1.3: Identify three uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
46) Some product failures are a result of being brought to market without any research, which increases the probability of failure.
Answer: TRUE
LO: 1.3: Identify three uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
CHAPTER 1
INTRODUCTION TO MARKETING RESEARCH
LEARNING OBJECTIVES
1.1 Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy
1.2 Define marketing research in several ways
1.3 Identify three uses of marketing research
1.4 Compare different types of marketing research companies
1.5 Explain the industry structure of marketing research
1.6 Outline new challenges to the marketing research industry
1.7 Identify industry initiatives for self-improvement
1.8 Assess areas of ethical sensitivity in the marketing research process
1.9 Investigate careers in the marketing research industry
CHAPTER OUTLINE
Introduction to Marketing Research
Marketing Research Is Part of Marketing
The Philosophy of The Marketing Concept Guides Managers’ Decisions
Creating The “Right” Marketing Strategy
What Is Marketing Research?
IsitMarketing Researchor Market Research?
TheFunctionofMarketingResearch
What Are the Uses of Marketing Research?
Identifying Market Opportunities and Problems
Generating, Refining, and Evaluating Potential Marketing Actions
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o Selecting Target Markets
o Product Research
o Pricing Research
o Promotion Research
o Distribution Research
Monitoring Marketing Performance
Improving Marketing as a Process
Who Conducts Marketing Research?
Client-SideMarketingResearch
Supply-SideMarketingResearch
The Industry Structure
TypesofFirmsandTheirSpecialties
IndustryPerformance
Challenges of the Marketing Research Industry
TheNeedtoIncorporateInnovativeandEvolvingSourcesofDataandTechnology
TheNeedtoEffectivelyCommunicateInsights
TheNeedtoHireTalentedandSkilledEmployees
Industry Initiatives
BestPractices
MaintainingPublicCredibilityofResearch
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MonitoringIndustryTrends
ImprovingEthicalConduct
Industry Standards and Ethics
A Career in Marketing Research
WhereYou’veBeenandWhereYou’reHeaded!
Job Skills
KEY TERMS
Agency Applied research
Basic research
Crowdsourcing
Frugging
Function of marketing research
Market research
Marketing concept
Marketing strategy
Sugging
Supply-side research
TEACHING SUGGESTIONS
Client-side research
Do-it-yourself (DIY) research
Full-service supplier firms
Limited-service supplier firms
Marketing
Marketing research
National Do Not Call Registry
Supplier
Transparency initiative
1. The purpose of the first section in the chapter is to review marketing, the marketing concept, marketing strategy, and the environments that affect marketing activities. A way to test students is to have them role-play as marketing managers for a new brand, or different
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version of a particular product. In the following examples, what would be the target market, salient marketing activities, positioning strategy, and environmental factors?
Launching a new brand of sparkling water fruit drink
Marketing an online apartment finder that assists college students in finding an apartment. The finder would search for apartments based on criteria, check on vacancies, and let the user place a refundable deposit to hold the apartment for 24 hours while he/she checked it out.
Being the new vice president of the ABC Interactive Television Programs Division
Positioning the iPhone against other similar products
2. The AMA definition makes clear that marketing research exists to create information to be used in marketing decisions. Product failures are good examples of how marketing information should have been used to design products, packaging, or services. Students can often recall products or services that were disappointing or otherwise failures in their eyes. Class discussion can be stimulated with the question, “What product or service can you think of or have encountered that would have benefited from good marketing research?” On the flip side, students may relate products that they believe are especially successful, such as Amazon. This is a company most students can relate to. Although many stores now deliver directly to the home, Amazon has created Amazon lockers and other safeguards for the home delivery business. Does this influence a student’s purchase decision? Do students buy from Amazon instead of a local retailer because of these safeguards? The objective with successful product/service examples is the same.
3. The website for Emergent Design Labs is www.emergntdesignlabs.com As an exercise, tell students to visit the website to see what it is all about. Class discussion can focus on the marketing research aspects of the new product development process outlined and described there and in the services this company provides
4. To drive home the importance of marketing research information in marketing decisions, ask students what type of restaurant they would build and operate right off campus. They will opt for one that is appropriate for college students maybe a late night hangout or a takeout service. Then ask what type they would build if the location were beside a university in a distant state. They will most likely give the same answer. Now, move the location to a foreign university (say mainland China where all college students live in dorms, eat in dining halls, have free tuition, don’t drive cars, etc.). If possible, use a country that you are familiar with and that is quite different from your students’ situations. They will come to realize that they need information in order to make reasonable decisions about the restaurant.
5. Hold a class brainstorming session on marketing opportunities. Select one of the examples below or use your own to generate several different directions in which these companies could go. Ask the class what marketing research information would be useful to evaluate the success potential of each opportunity.
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What marketing opportunities are there for:
A zoo?
A family restaurant?
A pet food company?
A new phone app?
The first Active Learning exercises featured Google. What are the marketing opportunities for Google?
6. Perhaps using one of your own applied research experiences, such as a consultation, to illustrate the various characteristics of marketing research (applied rather than basic, sometimes inaccurate, and shaped by budget and time constraints). Note: If you use class projects where surveys are done for sponsors, you can bring one of these into the class and describe how it illustrates the characteristics. You may want to bring a recent copy of an academic marketing journal to class to provide some examples of basic research.
You may want to reinforce the idea that marketing research projects, unlike the other components of MIS, are not continuous they have a beginning and an end. This is why marketing research studies are often referred to as “projects.” Marketing research projects are launched only when there is a justifiable need for information that is not available from internal reports, intelligence, or the DSS.
7. Have the students spend some time focusing on the current business environment. What are some of the challenges that marketing research firms might face? Do they differ from those of a few years ago? Why or why not?
8. Discuss some of the ethical issues in marketing created by the emergence of Generative AI. How can marketing researchers ensure the integrity of their product when they use GenAI? Identify some best practices for using AI.
ACTIVE LEARNING EXERCISES
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Lego is known worldwide for the passion it inspires in consumers of all ages for its sets of building blocks. The company does not have official statistics on the demographics of its users, but it estimates that up to half of its store revenue may come from adult users, or AFoLs (Adult Fans of Lego). To capitalize on the enthusiasm of its fans, Lego has created a web platform called “Lego Ideas” where consumers can post ideas for new concepts (see https://ideas.lego.com/).
Go to the platform and look at the “In the Shop” section to see which ideas made the cut.
This can be a fun exercise for students to experience market research in a personal way. While the results will vary depending on when the website is accessed, a discussion about the products and crowdsourcing can be meaningful.
Look at some of the challenges Lego has generated for consumers. Can you tell which demographic group each challenge is targeting?
Responses will vary by student and challenge. When developing this marketing tool, it is important to look at a variety of issues that can be tracked with data, and often the less obvious issues can generate more valuable insight. Discuss how Lego might have generated a specific challenge.
Do you have the chops to become a Lego creator? If you have a great idea submit it and see what happens.
Students could submit ideas in class and then debate and vote on which ideas are the best prior to submitting. Have the students justify their ideas and explain why the idea should be successful. This exercise will give the class an example of small-scale marketing research.
Use Google Alerts to Create Your Own Intelligence System
Thanks to the information age, Google Alert represents an efficient way for even small firms to maintain their own intelligence system.
The free trial recommended for students is an example of how a constant monitor will alert them to some news or “happening” on their topic. It works like a marketing intelligence system that watches everything on the Internet news, blogs, videos, etc. that pertains to the key work search topics.
ANSWERS TO END-OF-CHAPTER QUESTIONS
1-1. What is marketing? What is the relationship of marketing research to marketing?
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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
The main role of marketing research is to provide the necessary information that enables managers to market ideas, goods, and services properly.
1-2. Why is it important for decision makers to have philosophies? What is the marketing concept and what is its relationship to marketing research?
A philosophy may be thought of as a system of values, or principles, by which you live. There are many different philosophies that managers may use to guide them in their daily decision making.
The marketing concept is a business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.
1-3. Define marketing research. What is the difference between marketing research and market research?
The textbook definition: Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
The AMA definition: Marketing research is the function that links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.
Market research refers to applying marketing research to a specific market area. One definition of market research is: The systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area.
1-4. Find two outside examples of how companies created new product lines as a result of identifying market opportunities or problems.
Responses will vary by students. Some examples might include “to-go” breakfast foods, drink varieties at coffee shops, or wearable technology such as Fitbit, etc.
1-5. Name four major uses of marketing research and provide one example of each.
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The chapter describes four uses:
Identify and define marking opportunities and problems how does the price of gasoline affect the sales of electric vehicles?
Generate, refine, and evaluate marketing actions are consumers willing to pay more for organic food?
Monitor marketing performance tracking how many units of a product are sold, and what type of distributor is selling the most product.
Improve understanding of marketing as a process research conducted for an industry instead of a company or product, such as the cellular phone service industry.
1-6. You are responsible for the launch of a new product by your electronics firm. Describe questions that you will want answered through each of the following types of marketing research: (a) product research, (b) pricing research, (c) promotion research, and (d) distribution research.
Students can provide examples from the text or come up with their own examples.
1-7 List three product failures and explain the most important reason that they failed. Could these failures have been avoided with better research information?
Responses will vary by student, but may include Life-Savers sodas, Colgate food entrees, and Frito-Lay lemonade, as indicated in the text. The marketing concept states that the key to business success lies in being more effective than competitors in creating, delivering, and communicating value to the chosen target market. Companies who focus on products and selling efforts tend to be less successful. New products require a plan to provide value based on consumer wants and needs.
1-8. What example can you give of a company that is using crowdsourcing to create a product? To develop advertising?
Crowdsourcing is the practice of obtaining services or ideas by asking for assistance from large groups of people, generally inline communities. The firm Cell Zones wanted to create soundproof booths for private cell phone use to create privacy in libraries, restaurants, and so on. Research would have shown that people use smartphones to text, not talk; therefore the need for privacy was less important for the consumer.
Chobani launched an advertising campaign that focused on online advertising instead of traditional media such as TV. Based on the success of the online advertising, Chobani extended and expanded the campaign. Lego is also a great example of a firm that used crowdsourcing for product development.
1-9. Find three examples of articles that describe companies using marketing research in business publications, such as the Wall Street Journal, Advertising Age, Business Week, Fortune, and Forbes. Your local public library should be a good source of business periodicals.
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Application question. This question requires students to find marketing research examples.
This is an exercise for students to use library or online resources to find marketing research examples. There is no “right” answer here.
1-10. Describe the difference between client-side and supply-side research. What other terms are used to refer to companies that are involved in client-side research?
Research that is conducted within an organization is called client-side research. Clientside research is also called end-client research or in-house research. Supply-side research refers to research that is conducted by an outside firm to fulfill a company’s marketing research needs.
1-11. What are some advantages and disadvantages of DIY research?
Do-it-yourself research, (DIY), is considered one of the most important emerging trends for client-side marketing research departments. DIY research can provide the information needed to solve the user’s problem in a cost-effective way. An increasing number of tools powered by AI are being developed for organizations to conduct their own marketing research. However, while DIY has its place, business owners and managers often do not have the time or expertise to feel confident about using DIY for important issues and will hire marketing research professionals to assist them with their information needs.
1-12. What are full-service supplier firms? What types of services do they provide?
Full-service supplier firms can conduct the entire marketing research project for buyer firms. Full-service firms offer clients a broad range of services; they often define the problem, specify the research design, collect and analyze the data, and prepare the final written report. Typically, these are larger firms with the expertise and necessary facilities to conduct a wide variety of research that may range from qualitative studies to large international surveys to modeling the effects of a proposed marketing mix
1-13. List and describe two different types of marketing research services. What firms offer those services?
There are several different types of services offered by full-service supplier firms including:
Syndicated data services Analyze the trends and consumer behavior within an industry and sell to many companies.
Digital data analytics Provide client services associated with measuring online consumer behavior and measurement or online data collection.
Customized services Provide services customized or tailored to individual clients’ needs.
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Industry or market segment specialists Specialize in a particular industry or market segment.
Self-serve research platforms Provide software platforms or tools for DIY research.
1-14. What are three challenges facing the marketing research industry? Why?
The three primary challenges facing the marketing research industry include the need to incorporate new and evolving sources of data and methodologies, to improve the communication of results, and to hire talented and skilled employees. These are all driven by the rapid pace of technological change in the industry.
1-15. What is the National Do Not Call Registry? What type of communication is exempt from it?
The National Do Not Call Registry was established in 2002. It allows U.S. residents to register their telephone numbers to be protected from receiving unsolicited telemarketing calls. Note, however, that unsolicited phone calls to conduct surveys are exempt from the restrictions imposed by the Do Not Call Registry. In other words, researchers conducting surveys can still legally call U.S. residents.
1-16. Define sugging and frugging. Give an example of each.
Sugging is the practice of “selling under the guise of research” illegal. Telemarketers used sugging for years to entice the public into taking what they thought was an opinion survey but actually was a lead-in for a sales pitch. The industry also discourages the use of enticing unknowing consumers into taking a survey when the real intent is to raise funds. This practice is known as frugging, for “fundraising under the guise of research.” Political parties have used this technique for years.
1-17. Is it ethical for the Republican and Democratic parties to engage in frugging (see MRI 1.3)? Explain.
Frugging has been practiced by both the U.S. Democratic and Republican parties for many years. The marketing research industry condemns frugging. As the American Association of Public Opinion Research states, “The practice undercuts the legitimacy of our profession, no matter who employs it.” Furthermore, it can undermine Americans’ trust in political parties to respect their opinions.
1-18. List three important marketing research codes and provide a brief explanation of what purpose they are intended to serve.
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There are several groups and associations that identify appropriate standards of ethical conduct including:
AAPOR (www.aapor.org): Go to Standards & Ethics.
Insights Association (www.insightsassociation.org): Go to Code of Standards.
ESOMAR (www.esomar.org): Go to ICC/ESOMAR International Code.
MRS (www.mrs.org.uk): Go to Standards.
All of them are designed to ensure that marketing researchers behave in an ethical manner in all marketing research activities and business dealings.
CASE SOLUTIONS
Case 1.1 Oatly and Plant-Based Milk Sales
Case Objective
This case illustrates how marketers need to understand the difference between products, specifically cow milk and plant-based milk, and their value in the minds of consumers. There is a great deal that is unknown about the audience’s preference for cow milk and plant-based milk. Consequently, marketing research can assist by providing information.
Answers to Case Questions
1. Based on the definition of marketing research, do you think that marketing research can help Oatly increase its sales of oat milk? Explain.
Because the purpose of marketing research is to “…link the consumer to the marketer by providing information that can be used in marketing decisions,” this situation calls for marketing research information. One use of marketing research is to identify marketing opportunities.
2. Which of the three uses for marketing research identified in the AMA definition might help Oatly improve oat milk sales? Why?
The role of market research as a process is used to define the size, location, and/or makeup of the market for a product or service. Oatly would benefit from researching the makeup of the market for plant-based milk and determine the size of that market. This would allow Oatly to better forecast the demand for plant-based milk.
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3. Marketing research is used in all areas of the marketing mix, including determining target markets and conducting research of products, pricing, promotion, and distribution. Which of these areas do you think would be most useful for Oatly to use to increase plant-based milk sales. Explain.
Oatly might find it useful to consider the pricing and promotion aspects of marketing. If consumers typically value plant-based milk less than dairy products, the pricing structure needs to reflect that view, at least initially in order to stimulate demand. Additionally, Oatly can use a promotional strategy to help educate consumers in the value of plant-based milk, allowing for a more competitive pricing strategy. Health conscious consumers might be particularly interested in the low calorie products if Oatly creates awareness of this benefit.
Case 1.2 Pinnacle Research
Case Objective
This case describes how marketing research firm Pinnacle Research approached the task of determining whether Delish Donuts should expand to a nearby city. Delish Donuts wants to know more about the competition and whether its products would be successful in the city. Tracy and Josh have been assigned the task of answering these questions for Delish Donuts
Answers to Case Questions
1. Do you think Josh’s actions are ethical? Explain. No,Josh’sactionsareunethical.Hepromisedtoentertherespondentsinadrawingto giveawayaniPadandthendidnotfollowthroughwithhispromise.Thispracticeis unethicalwhethertheparticipantsknewofhisactions.Inaddition,hecollectedcontact informationwithoutinformingtherespondentsthathewoulddistributethis information.
2. Consult the Insights Association’s Code of Standards and Ethics for Marketing Research and Analytics. Are these standards in line with your judgment of the morality of Tracy and Josh’s actions? Explain. TracyandJoshhaveviolatedthestandardon“HonestyandTransparency”whichstates“