Retail Management
Midterm Exam
Course Introduction
Retail Management explores the principles, strategies, and operations crucial to the success of modern retail businesses. This course examines topics such as retail formats, store layout and design, merchandise planning, supply chain management, pricing strategies, customer relationship management, and the impact of digital technology on retailing. Students will analyze consumer behavior, learn techniques for effective sales management, and address challenges faced by retailers in a dynamic market environment. Emphasis is placed on both traditional and online retail channels, preparing students for the evolving demands of the retail industry.
Recommended Textbook
Marketing Research Essentials 9th Edition by Carl McDaniel
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Page 2
Chapter 1: The Role of Marketing Research in Management
Decision Making
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Sample Questions
Q1) An important link exists between customer satisfaction and customer loyalty to a brand.
A)True
B)False
Answer: True
Q2) All of the following are components of the marketing mix EXCEPT:
A)distribution.
B)product.
C)promotion.
D)price.
E)profit.
Answer: E
Q3) The planning,collection,analysis of data,and the communication of the results of this analysis to management is called the process of:
A)marketing research.
B)benchmarking.
C)diagnosis.
D)prediction.
E)marketing mix.
Answer: A
Page 3
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Chapter 1: A: The Role of Marketing Research in Management Decision Making
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Sample Questions
Q1) Recently,an article about changing consumer predispositions toward low involvement purchases appeared in the Journal of Marketing.Chances are this article would be classified as applied research.
A)True
B)False
Answer: False
Q2) Which of the following is true regarding using the Internet for marketing research versus more traditional techniques such as telephone?
A)the Internet tends to produce dramatically different results
B)most clients prefer traditional techniques
C)the Internet tends to yield similar research findings compared to traditional techniques
D)research on the Internet tends to be less valid
E)it is more difficult to obtain a large sample in an Internet study
Answer: C
Q3) Customer satisfaction is an important element of the marketing concept.
A)True
B)False
Answer: True
Page 4
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Chapter 2: The Marketing Research Industry and Research
Ethics
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Q1) A typical field service firm collects survey data,designs research projects,and performs data analysis procedures.
A)True
B)False
Answer: False
Q2) A group of consumers who agree to participate in future research studies in return for prizes or cash is called a(n):
A)target market.
B)research panel.
C)field service.
D)focus group.
E)strategic partner.
Answer: B
Q3) The refusal rate for a typical telephone survey in the U.S.averages about 30 percent.
A)True
B)False
Answer: False
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Page 5
Chapter 2: A: The Marketing Research Industry and Research Ethics
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Q1) Subjectivity should be discouraged in marketing research.
A)True
B)False
Q2) A company that provides statistical analysis to the marketing research industry is an example of what type of firm?
A)syndicated service firm
B)custom research firm
C)field service firm
D)specialized service firm
Q3) In survey research,it is especially important to protect respondents'_______.
A)responses
B)integrity
C)professionalism
D)anonymity
E)none of the above
Q4) Reaching a representative sample of respondents is not seen as particularly important by marketing research executives.
A)True
B)False
Page 6
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Chapter 3: Problem Definition,exploratory Research,and the Research Process
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Q1) When a marketing researcher designs a test market study in two cities in which the price of one of its products in increased by five percent in one of these cities but is not increased in the other city to determine the impact of this price change on the product's profits,price is:
A)the dependent variable.
B)the moderator variable.
C)the independent variable.
D)the spurious variable.
E)the outlier variable.
Q2) All of the following are examples of exploratory research EXCEPT:
A)focus groups.
B)pilot studies.
C)experience surveys.
D)experiments.
E)secondary data analysis.
Q3) Marketing researchers need to distinguish between symptoms and problems.
A)True
B)False
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Chapter 3: A: Problem Definition and the Research Process
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Q1) The first step in the problem-definition process is:
A)stating research objectives.
B)recognizing that there is a problem or opportunity.
C)determining if the needed information is already available.
D)determining why the information is being sought.
E)none of the above
Q2) Suppose you are wanting to contract with a marketing research firm for a specific project.What criteria would you use in your selection process?
Q3) Once the research project is completed,it is critical to determine if the ___________have been met.
A)situation analyses
B)pilot studies
C)experience surveys
D)research objectives
E)all of the above
Q4) What is the "Research Request?" Why is it so important? What should you include in the research request?
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8
Chapter 4: Secondary Data and Databases
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Q1) The issue of consumer privacy is an important aspect of behavioral targeting methods.
A)True
B)False
Q2) When a computer file of a company's customers and their buying patterns is used to create a marketing mix aimed at specific customers,this is an example of:
A)an experiment.
B)a focus group.
C)database marketing.
D)exploratory research.
E)a marketing research aggregator.
Q3) When a salesperson's "call reports" are used to track the sales behavior of a company's customers,this is an example of a(n):
A)internal database.
B)data mining situation.
C)DSS.
D)external database.
E)GIS.
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9
Chapter 4: A: Secondary Data and Databases
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Q1) The U.S.Census is an example of a marketing research aggregator.
A)True
B)False
Q2) Mike's Seafood is a very successful Cajun restaurant chain in south Louisiana.How can a geographic information system (GIS)help the restaurant chain target its best customers?
A)GIS can pinpoint exactly where the restaurant's customer base is located,even down to the specific neighborhood,which would greatly assist a direct marketing effort.
B)The map technology creates a visual translation of DSS.
C)The map technology creates a visual translation of the URL.
D)It can pinpoint the target marketing without the need for primary data,which makes it more cost effective.
E)all of the above
Q3) Data mining facilitates customer acquisition by discovering purchasing patterns such that customized offerings can be made to prospects.
A)True
B)False
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10
Chapter 5: Qualitative Research
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Q1) When a researcher says to a respondent: "I want you to imagine that a neighbor of yours who lives down the street from you just purchased a new Lexus automobile.How would you describe that neighbor?",what type of projective technique is being used?
A)Sentence completion test
B)Cartoon test
C)Third-person technique
D)Word association test
E)Analogies
Q2) The written outline of topics that need to be discussed in a focus group session is called a(n):
A)moderator guide.
B)depth interview guide.
C)survey guide.
D)personal interview guide.
E)discussion guide.
Q3) The use of focus group discussions is decreasing noticeably in marketing research studies.
A)True
B)False
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Page 11
Chapter 5: A: Qualitative Research
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Q1) Which of the following are not disadvantages of online focus groups?
A)lessened group dynamics
B)lack of nonverbal inputs
C)less interviewer bias
D)exposure to external stimuli is less efficient
E)All are disadvantages of online focus groups.
Q2) A group of citizens thinks Drysville,Arkansas,is achieving its potential as a city,because it is "dry." Drysville is a very religious and conservative community that has experienced some growth as a "bedroom" community to Sin City.Hence,the population has grown to the extent that the group favoring a "wet" city thinks it may now have the votes.However,before embarking on an expensive petition-signing campaign,the group favoring "wet" wants a market researcher to give them more insights via a qualitative research effort.The issue is very sensitive,and the "wet" group thinks that many of its supporters may not come forward due to possible peer pressure.What method or methods of qualitative research would you recommend?
Q3) You have just conducted a set of focus groups for a client,and the results are positive about launching a new product.What words of caution would you give the client before they make this multi-million dollar decision?
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Chapter 6: Traditional Survey Research
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Q1) Part of the U.S.Census for 2010 was done by door-to-door interviews.
A)True
B)False
Q2) When people who were selected to participate in a survey do not complete the survey,and these people differ in important ways from people who did fill out the survey,we say that the results of the survey have:
A)nonresponse bias.
B)nonsystematic error.
C)interviewer error.
D)random sampling error.
E)interviewer bias.
Q3) When a client wants to obtain survey results quickly,which survey method is the best choice?
A)Mail
B)Phone
C)Mall intercept
D)The Internet
E)FedEx
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Chapter 6: A: Traditional Survey Research
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Q1) Most marketing research is completely error free.
A)True
B)False
Q2) Surveys have a low rate of usage in marketing research compared to other means of data collection.
A)True
B)False
Q3) Which of the following is an example of a self-administered questionnaire?
A)telephone survey
B)door-to-door survey
C)mail survey
D)mall intercept
E)none of the above
Q4) All of the following are factors that determine the selection of a particular survey method except:
A)Sampling precision
B)Specific,chosen respondents
C)Budget
D)Incidence rate
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Chapter 7: Online Marketing Research
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Q1) When a research participant is given a private blog where he can answer a series of questions at his convenience by creating an immediate perfect transcription of his comments,this is called:
A)online individual depth interviewing.
B)an online focus group.
C)a web community.
D)a panel group.
E)sugging.
Q2) A key factor in the increase of online panel research is the declining response rates of telephone interviews.
A)True
B)False
Q3) Online survey research is the most popular mode of data collection in marketing research in the U.S.
A)True
B)False
Q4) Focus groups are the primary form of online qualitative research in the U.S.
A)True
B)False
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Chapter 7: A: Online Marketing Research
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Q1) Which of the following is not characteristic of Internet email surveys?
A)online self-administered interview
B)significant interviewer bias
C)medium to high risk concerning representativeness
D)bulk email contact
E)purchased list of non-profiled respondents
Q2) Which of the following is the biggest complaint about using online surveys?
A)slow deployment
B)lower response rates
C)lack of representative sample
D)lack of callback procedures
E)all of the above
Q3) What is the first step in finding a particular newsgroup?
A)Select the newsgroup of interest
B)Begin scanning messages
C)Open your newsreader program
D)Connect to the Internet in your usual way.
Q4) Why might a consultant considering the use of a focus group prefer an online focus over a traditional focus group?
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Chapter 8: Primary Data Collection: Observation
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Q1) When United Airlines asks one of its employees to fly from New York to Los Angeles and to pretend that he ordered a vegetarian meal (when he did not to this)in order to see the reaction of the flight attendant when he complains that he ordered this meal and was unhappy that it was not available,this is an example of:
A)a natural situation.
B)exploratory research.
C)descriptive research.
D)an experiment.
E)a mystery shopper.
Q2) When a researcher looks at past recordings of behavior (e.g.library book checkout data)to record behavior of people,this is a type of observation research.
A)True
B)False
Q3) In observation research,it is ethically permissible to record both the private and public behavior of people.
A)True
B)False
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Chapter 8: A: Primary Data Collection: Observation
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Q1) Observational research is most effective if the observed behavior occurs _______.
A)intermittently
B)infrequently
C)rationally
D)frequently
E)none of the above
Q2) A contrived observational environment would not:
A)allow the researcher to collect data faster.
B)allow for more control over things that might distort the behavior being studied.
C)result in lower project costs.
D)provide a more realistic environment in which to observe the behavior in question.
E)none of the above
Q3) Ethnography research can be conducted online.
A)True
B)False
Q4) Describe the mystery shopper and how they are used by marketing researchers.
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Chapter 9: Primary Data Collection: Experimentation and Test Markets
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Q1) If real estate agents in St.Louis are offered the chance to attend a voluntary training session on Missouri State Law,the fact that agents who are having difficulty making enough sales to have sufficient income means that they are more likely to attend these training sessions is an example of which type of extraneous variable?
A)Maturation
B)Testing effects
C)Selection bias
D)History
E)Regression to the Mean
Q2) The extent to which the findings of a test market study can be "generalized" to predict sales in the U.S.market is the basic concept underlying the concept of:
A)external validity.
B)internal validity.
C)the time-series effect.
D)the history effect.
E)the maturation effect.
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Chapter 9: A: Primary Data Collection: Experimentation and Test Markets
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Q1) A _____________ is a by-product of the research process itself.
A)Testing Effect
B)Research Effect
C)Result
D)Decision
Q2) Experiments are especially effective in showing causality because they are able to do what?
A)show correlation
B)demonstrate concomitant variation
C)demonstrate an appropriate time order of occurrence
D)eliminate other possible causal factors
E)none of the above
Q3) Your client is interested in determining which of two Internet banner ads is more effective.Design a field experiment.Be sure to identify the independent and dependent variables.
Q4) The costs of producing a product for a test market are comparable to the cost associated with a national launch of the new product.
A)True
B)False
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Chapter 10: The Concept of Measurement
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Q1) When adult men in Chicago are given a list of five banks in Chicago that they are asked to place in a sequence with "1" used to identify the bank that they believe is most customer-friendly and "5" is used to identify the bank that is the least customer-friendly,what type of measurement scale is being used?
A)Ratio
B)Ordinal
C)Interval
D)Nominal
E)Integral
Q2) When a marketing researcher is asked to determine the relationship between the "number of yards gained" and the "number of games won" for professional football teams,this is a type of:
A)face validity.
B)test-retest validity.
C)content validity.
D)discriminant validity.
E)criterion-related validity.
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21
Chapter 10: A: The Concept of Measurement
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Q1) A constitutive definition is similar to a dictionary definition.
A)True
B)False
Q2) When a researcher describes how a construct will be measured,this is referred to as what type of definition?
A)constitutive
B)theoretical
C)conceptual
D)operational
Q3) A construct should be measured before it is defined.
A)True
B)False
Q4) Before a measurement scale can be shown to be valid,it must be _______.
A)stable
B)reliable
C)consistent
D)convergent
Q5) Define Validity.Then provide an example of Face Validity and an example of a question that has a Face Validity problem.Then illustrate a portion of a questionnaire with a Content Validity problem.
22
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Chapter 11: Using Measurement Scales to Build Marketing
Effectiveness
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Sample Questions
Q1) What type of scale is the following in a telephone survey?
How would you rate the prices at Macy's department store in St.Louis?
A)Likert scale
B)Forced choice scale
C)Stapel scale
D)Unbalanced scale
E)Semantic differential scale
Q2) In scaling,numbers are assigned as indicants of the properties of people,objects,or events.
A)True
B)False
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Chapter 11: A: Using Measurement Scales to Build Marketing
Effectiveness
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Q1) In an itemized rating scale,respondents select from a limited number of ordered categories.
A)True
B)False
Q2) A(n)_________ scale may be used if previous research has shown that attitudes toward a particular brand are generally positive.
A)unbalanced
B)balanced
C)purchase intent
D)semantic differential
E)none of the above
Q3) When is it preferable to use direct questioning and when is it preferable to use indirect questioning?
Q4) A semantic differential allows the researcher to measure several dimensions of a construct in a single questionnaire.
A)True
B)False
Q5) List and briefly describe considerations in selecting a scale.
Page 24
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Chapter 12: Questionnaire Design
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Q1) A survey question to which the respondent replies using her own words is what type of question?
A)Probe
B)Dichotomous
C)Closed-ended
D)Open-ended
E)Multiple-choice
Q2) Suppose that a personal interviewer asks a respondent during a taste test of a new cake product: "How did you like the taste and smoothness of the cake?" What is the flaw in this question?
A)This is a leading question.
B)This is a loaded question.
C)This is a double-barreled question.
D)This is an unfair question.
E)This is a biased question.
Q3) In survey research,the basic determinants of the estimated cost of the project are the questionnaire and the incidence rate.
A)True
B)False
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Chapter 12: A: Questionnaire Design
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Q1) "In the space below,please write down your three favorite flavors of ice cream" is an example of what type of question?
A)scaled response
B)dichotomous
C)open ended
D)closed ended
E)none of the above
Q2) It is important for surveys to include supervisor's instructions in order to assist the
A)client
B)field services firm
C)respondent
D)none of the above
Q3) In the questionnaire design process,what is the first step?
A)Determine the data-collection method
B)Determine the question response format
C)Decide on question wording
D)Determine the survey objectives,resources,and constraints
Q4) Why do open-ended questions require more time (and money)to evaluate than closed-ended questions?
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Chapter 13: Basic Sampling Issues
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Q1) Which of the following is the most popular type of cluster sample in marketing research?
A)Convenience sample
B)Simple random sample
C)Multi-stage area sample
D)Systematic sample
E)Area sample
Q2) Which of the following sampling methods is the best known and most widely used
Probability sampling method in marketing research?
A)Systematic sampling
B)Simple random sampling
C)Area sampling
D)Convenience sampling
E)Multi-stage area sampling
Q3) The first step in developing a sampling plan is to:
A)identify a sampling frame.
B)determine the sample size.
C)define the population of interest.
D)choose a data-collection method.
E)decide on an operational procedure for selecting the sample.
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Chapter 13: A: Basic Sampling Issues
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Q1) A shortcoming of Internet surveys relative to other modes of data collection is the need to input the data into a database after it has been collected.
A)True
B)False
Q2) The _____________ is a list of the members or elements from which units to be sampled are selected.
A)population
B)sample frame
C)sample source
D)universe
E)none of the above
Q3) Marketing researchers might view a respondent whose family works in marketing as a security threat.
A)True
B)False
Q4) Characterize the ideal sampling frame.How often is an "ideal" sampling frame available? If an "ideal" sampling frame isn't available,what kind of sample frame is needed?
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Chapter 14: Sample Size Determination
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Q1) The formula for a z-score equals the score ______ the ________ ,and then ________ the Standard deviation of the variable. A)plus;mean;divided by B)minus;mean;divided by C)minus;square root of the mean;times D)minus;mean;times E)plus;mean;times
Q2) If z = 1.96,the standard deviation is 4.5,and the error is plus or minus $1.75,what is the Approximate sample size needed for this study?
A)11
B)45
C)14
D)4
E)26
Q3) In probability samples,the cost of increasing sample size rises on a linear basis. A)True
B)False
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Chapter 14: A: Sample Size Determination
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Q1) A continuous distribution,which is bell-shaped and symmetric about the mean,is known as:
A)the normal distribution.
B)the chi-square distribution.
C)the F-distribution.
D)the mean distribution.
E)the binomial distribution.
Q2) Which of the following is not a method for estimating the population standard deviation?
A)prior study results
B)conduct a pilot study
C)use secondary data
D)using population size
Q3) About 68% of the area under a standard normal curve covers one _________.
A)mean
B)sample
C)variance
D)standard deviation
E)none of the above
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Chapter 15: Data Processing and Fundamental Data Analysis
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Q1) Which of the following would be the best way to summarize the "average income" in Webster Groves,Missouri?
A)Mean
B)Standard deviation
C)Median
D)Standard error of the mean
E)Mode
Q2) When information is checked for violation of skip patterns during data entry,this process
Is called:
A)intelligent data entry.
B)coding.
C)validation.
D)scanning.
E)editing.
Q3) For each cell in a cross-tabulation,there are three percentage figures that can be recorded.
A)True
B)False
Page 31
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Chapter 15: A: Data Processing and Fundamental Data Analysis
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Q1) Which of the following is not part of the coding process regarding open-ended questions?
A)list responses
B)consolidate responses
C)set codes
D)enter codes
E)All are part of the coding process.
Q2) Pie charts are useful for depicting changes over time.
A)True
B)False
Q3) Means are not included in a cross tabulation.
A)True
B)False
Q4) The mode of a distribution of responses is the middle response in the distribution,meaning half of the responses are larger and half of the responses are smaller than the mode.
A)True
B)False
Page 32
Q5) Illustrate a condition in which a "SKIP PATTERN" is needed.
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Chapter 16: Statistical Testing of Differences and Relationships
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Q1) The null hypothesis is assumed to be true until there is sufficient evidence that it is likely to be false.
A)True
B)False
Q2) A statistical difference is important from a manager's viewpoint only if the difference is "sufficiently different."
A)True
B)False
Q3) Another term for the ANOVA test is the:
A)One-group t-test.
B)F-test.
C)Multiple Regression test.
D)Two-group t-test.
E)Chi-square test.
Q4) In statistical testing,Type I errors and Type II errors are complementary. A)True
B)False
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Chapter 16: A: Statistical Testing of Differences and Relationships
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Q1) The smaller the p value,the smaller is the probability that the observed result occurred by chance.
A)True
B)False
Q2) What kind of error is being made if the researcher fails to reject the null hypothesis when it is,in fact,false?
A)chi-square
B)type I
C)type II
D)type III
E)none of the above
Q3) In related samples,the measurement of the variable of interest has no influence on the measurement of the variable in another sample.
A)True
B)False
Q4) Illustrate a situation when is it more appropriate to use an Anova test rather than a crosstabulation with the chi-square test.
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Chapter 17: Bivariate Correlation and Regression
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Q1) In regression,R squared is known as the:
A)coefficient of determination.
B)the correlation coefficient.
C)slope of the line.
D)the value for Z.
E)y-intercept.
Q2) When the degree of association between two variables is studied,the dependent Variable is called the:
A)concomitant variable.
B)predictor variable.
C)x-axis variable.
D)multi-dimensional variable.
E)criterion variable.
Q3) If the relationship between a predictor variable and a criterion variable is strong,the predictor variable can be used to estimate the criterion variable using regression analysis.
A)True
B)False
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Chapter 17: A: Bivariate Correlation and Regression
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Q1) When the value of one variable increases at exactly the same rate as another variable decreases,this is said to be a ___________________relationship.
A)strong positive linear
B)positive linear
C)perfect negative linear
D)parabolic
E)none of the above
Q2) Which of the relationships in the matrix is the strongest?
Q3) The R<sup>2 </sup>statistic ranges from -1 to 1.
A)True
B)False
Q4) What are the possible values in correlation analysis?
A)0 to 1
B)-1 to +1
C)-1 to 0
D)-.99 to + .99
E)none of the above
Q5) Dependent variables are also known as predictor variables.
A)True
B)False
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Chapter 18: Multivariate Data Analysis
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Q1) The goal of discriminant analysis is to predict a categorical variable.
A)True
B)False
Q2) What type of analysis fits a plane to observations in a multidimensional space?
A)Simple linear regression
B)Multiple regression analysis
C)Multiple discriminant analysis
D)Dummy variable analysis
E)Collinearity analysis
Q3) Multivariate statistical analysis procedures are a logical extension of both univariate and bivariate statistical procedures.
A)True
B)False
Q4) In factor analysis,there is no dependent variable.
A)True
B)False
Q5) Regression analysis can be used to prove causation between variables.
A)True
B)False
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Chapter 18: A: Multivariate Data Analysis
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Q1) Multiple regression analysis can group respondents into subgroups when there are at least 4 classification variables.
A)True
B)False
Q2) The goal of factor analysis is to identify as many factors as possible.
A)True
B)False
Q3) This procedure is useful for analyzing the relationship among two or more predictor/independent variables and one criterion/dependent variable.
A)multiple discriminant analysis
B)multiple regression analysis
C)conjoint analysis
D)cluster analysis
Q4) Perceptual mapping enables a company to see how its brand compares with others in the minds of consumers.
A)True
B)False
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Chapter 19: Communicating the Research Results
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Q1) In a research report,the generalizations that answer the questions raised by the research
Objectives are called the ________________ .
A)preface.
B)appendix.
C)conclusions.
D)background.
E)findings.
Q2) Which of the following dominates the market in terms of creating the format and Preparation of marketing research reports?
A)SPSS
B)Microsoft's Word
C)SAS
D)Microsoft's Excel
E)Microsoft's PowerPoint
Q3) In a research report,the recommendations are derived by the process of induction.
A)True
B)False
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Chapter 19: A: Communicating the Research Results
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Q1) Important information in a report should be highlighted in bright colors.
A)True
B)False
Q2) Persuasion does not imply stretching or bending the truth,but rather using research findings to reinforce conclusions and recommendations.
A)True
B)False
Q3) Conclusions in a report are derived from the process of ___________.
A)deduction
B)reduction
C)induction
D)none of the above
Q4) List and briefly describe the six major parts of the marketing research report.
Q5) How would you respond to the following statement: "The Executive Summary might be the most important part of the research report."
Q6) Writing the report always comes after the data has been cross tabulated and statistical testing has been performed.
A)True
B)False
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Chapter 20: Managing Marketing Research
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Q1) Captive outsourcing is:
A)when a research firm outsources to a firm in a small,developing country.
B)when a research firm creates a wholly-owned foreign facility for outsourcing.
C)outsourcing to prisoners held against their will.
D)outsourcing to a third-party provider.
E)the most cost efficient way to hire a market researcher staff.
Q2) Incidence rate problems increase the amount of time required to complete the sample of a project,but can also lower the cost of data-collection.
A)True
B)False
Q3) By reducing the organizational distance between the client and staff members,it is easier for them to appreciate the client's situation and focus on serving his or her needs.
A)True
B)False
Q4) Asking a client for their budget on a project helps the research firm to learn what the client has in mind.
A)True
B)False
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Chapter 20: A: Managing Marketing Research
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Sample Questions
Q1) The successful implementation of creative ideas within a company is known as: A)insight.
B)research management.
C)innovation.
D)outsourcing.
E)creativity.
Q2) A key argument against the traditional accounting way of determining return on Investment is that it:
A)adds profit return to expenditure instead of multiplying it.
B)ROI focuses on short-term instead of long-term marketing development.
C)divides profit return by expenditure instead of adding it.
D)multiplies profit return by expenditure instead of adding it.
E)subtracts profit return by expenditure instead of multiplying it.
Q3) The key to good supplier-client relationships is good two-way communication.
A)True
B)False
Q4) The people who work at a research company are that company's most important asset.
A)True
B)False
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