Marketing Research, 9e (Burns/Veeck)
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: 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
3) What does the phrase "service-centered view of marketing" imply?
A) Firms must be more than customer oriented (making and selling what firms think customers want and need).
B) The advantage in the marketplace will default to third world countries specializing in services.
C) To quickly increase profitability, more companies should try to create short-term customer relationships.
D) That because of social media, less collaboration with customers is required for decisionmaking.
Answer: A
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
4) 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 consumers
D) collaborate with and learn from competitors
Answer: C
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
5) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
6) 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 they will target.
C) It determines how marketers view their company's role in terms of what it provides to the market.
D) It determines marketing objectives and ROI.
Answer: C
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
7) 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 have to develop the "right" strategy
D) we need to develop "right pricing," "right promotion," and "right distribution"
Answer: C
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
8) Creating the proper mix of product/service, price, promotion, and distribution for a market begins with ________.
A) selecting the global market strategies and targets
B) selecting the segment of the market as a company's target
C) creating promotion for the target market
D) incentives to allow a large percentage of the target market to purchase goods and services from the company
Answer: B
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
9) What do marketers need in order to create the right strategies for decision-making?
A) Reports about the competition's products
B) Reports about customers' wants and needs
C) Evidence of the number and sizes of market segments
D) Objective, accurate, and timely information
Answer: D
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
10) When firms make the right decisions, they produce products and services that their 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
11) A ________ 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.
A) market strategy
B) strategic plan
C) differentiation strategy
D) positioning strategy
Answer: A
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
12) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
13) Which of the following correctly defines marketing research?
A) The process of analyzing secondary information and providing executives with timely reports to solve a marketing problem
B) The process of designing experiments that provide decision makers with causal information
C) The process of analyzing existing information so decision makers can make better decisions
D) The process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem
Answer: D
LO: 1:2: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
14) ________ 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: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
15) According to the American Marketing Association (AMA), what is the function of marketing research?
A) To link the consumer to marketer 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: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
16) Which of the following most accurately describes the process of marketing research?
A) It is the process of identifying and defining marketing opportunities and problems.
B) It is used to solve general, not specific, marketing problems.
C) It is used to generate and refine social media actions and performance.
D) It is primarily used to monitor marketing performance.
Answer: A
LO: 1:2: How to define marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
17) When we think about marketing research as a way to generate, refine, and evaluate a potential marketing action, we are describing actions such as ________.
A) social media analytics, campaigns, programs, or tactics
B) controls, campaigns, programs, or tactics
C) market analytics, controls, tactics, or advertising
D) strategies, campaigns, programs, or tactics
Answer: D
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
18) Of the following, which is NOT one of the uses of marketing research?
A) To provide consumers with information they need to evaluate products and services at a profit
B) To identify market opportunities and problems
C) To generate, refine, and evaluate potential market actions
D) To monitor marketing performance
Answer: A
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
19) Tracking variables on how well products are performing in the marketplace is an example of what use of marketing research?
A) Market monitoring
B) Marketing metrics
C) Marketing analytics
D) Marketing performance
Answer: A
LO: 1:3: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
20) Why would a marketing manager use marketing research for problem identification?
A) To discover the symptoms of problems
B) To discover ways to solve a sales promotion problem
C) To hypothesize, refine, and evaluate a potential marketing action
D) To generate, refine, and execute a potential marketing action
Answer: A
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
21) 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
22) In 2014, General Mills acquired Annie's Homegrown and used marketing research to identify ways to grow the brand, promote it, and evaluated 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
23) Actions can be thought of as strategies. What actions are required to satisfy the wants and needs of a market?
A) Selecting a target market and designing a marketing mix
B) Selecting a target market and designing a promotion mix
C) Selecting global and domestic markets and distribution strategies
D) Selecting global markets and designing promotional strategies
Answer: A
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
24) When marketers and researchers want to improve our understanding of the ________ they conduct research to expand our knowledge of marketing.
A) marketing concept
B) marketing planning process
C) market mix process
D) marketing process
Answer: D
LO: 1:3: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
25) 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: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
26) 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) Awinery 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
27) A great deal of marketing research is conducted to determine the size of various market segments. Marketing managers are interested in the size of various markets, but they are also interested ________.
A) to know if a segment is shrinking and why competitors are fulfilling the wants and needs of that segment
B) to understand if a segment is growing and how well competitors are fulfilling the needs of that segment
C) in researching segment growth and how well competitors are fulfilling the wants and needs of that segment
D) in knowing if a segment is growing or shrinking and how well competitors are fulfilling the wants and needs of that segment
Answer: D
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
28) 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: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
29) In which of the following functional areas would research be used when marketers want to determine the "value" consumers perceive in a revolutionary new product?
A) Product research
B) Pricing research
C) Promotion research
D) Distribution research
Answer: B
LO: 1:3: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
30) 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: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
31) 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: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
32) 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
33) Which of the following accurately describes a structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers?
A) A customer relationship management system
B) A sales information management system
C) A marketing relationship management system
D) A marketing information system
Answer: D
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
34) Which of the following is NOT a component of the marketing information system?
A) A consumer information support system
B) A marketing intelligence system
C) A marketing decision support system
D) An internal reports system
Answer: A
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
35) The ________ gathers data generated from information such as orders, billing, receivables, and inventory levels, etc.
A) consumer information support system
B) internal reports system
C) marketing research system
D) decision support system
Answer: B
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
36) Decision makers need information in a form and at a time when they can use it for decisionmaking. What is the role of the MIS in that process?
A) To determine decision makers' information needs and distribute that information
B) To determine decision makers' information needs, analyze the information, and distribute that information
C) To determine decision makers' information needs, acquire the needed information, and distribute that information
D) To analyze decision makers' information needs, distribute the needed information, and provide guidance on that information
Answer: C
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
37) Which of the following is defined as a set of procedures and sources used by managers to obtain everyday information about pertinent developments in the environment?
A) External environment reporting system
B) Internal reports system
C) Consumer information support system
D) Marketing intelligence system
Answer: D
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
38) Which of the MIS systems uses both informal and formal information-gathering procedures?
A) Marketing intelligence system
B) External environment reports system
C) Internal reports system
D) Consumer information support system
Answer: A
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
39) Which of the following is the marketing information system component that provides studies conducted for specific situations facing the company?
A) Marketing research system
B) Marketing intelligence system
C) Consumer information support system
D) Decision support system
Answer: A
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
40) A _____is collected data that may be accessed and analyzed using tools and techniques that assist managers in decision-making.
A) marketing research system
B) decision support system
C) marketing intelligence system
D) consumer information support system
Answer: B
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
41) Which of the following goes on continuously and searches a broad range of information sources to bring pertinent information to decision makers?
A) Consumer information support system
B) Marketing research system
C) Marketing intelligence system
D) Decision support system
Answer: C
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
42) ________ is a component of the MIS containing information that is generally insufficient for many marketing decisions, but a source of extreme detail on both revenues and costs that can be invaluable in making decisions.
A) An internal reports system
B) A marketing research system
C) A marketing intelligence system
D) A decision support system
Answer: A
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
43) ________ is an MIS component using tools such as break-even analysis, regression models, and linear programming.
A) An internal reporting system
B) A marketing research system
C) A marketing intelligence system
D) A decision support system
Answer: D
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
44) A(n) ________ is NOT a subsystem of a marketing information system.
A) manufacturing information system
B) accounting information system
C) financial information system
D) marketing information system
Answer: A
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
45) The role of ________ is to determine decision makers' information needs, acquire the needed information, and distribute that information.
A) internal reporting systems
B) marketing information systems
C) market research systems
D) market intelligence systems
Answer: B
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
46) Which is the best system that can tell a manager a great deal of information about what has happened in the past?
A) Marketing research system
B) Marketing intelligence system
C) Internal reporting system
D) Decision support system
Answer: C
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
47) Marketing research provides managers with new information to help them make decisions. Answer: TRUE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
48) Because of new technologies, the competitive landscape changes with less frequency than before.
Answer: FALSE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
49) Managers normally cannot determine what products to make or what services to offer, which methods of advertising are most effective, which prices will help their firm realize its target return on investment (ROI), and which distribution system will add the greatest value to the supply chain.
Answer: FALSE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
50) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
51) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
52) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
53) A short definition of marketing is "meeting needs profitably."
Answer: TRUE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
54) According to the American Marketing Association, marketing research is a separate discipline and not part of marketing.
Answer: FALSE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
55) When firms make the right decisions, they produce products and services that their target markets perceive as having value. That value translates into sales, profits, and a positive ROI.
Answer: TRUE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
56) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
57) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
58) An advertising 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.
Answer: FALSE
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
59) 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: How to define marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
60) The American Marketing Association's definition of marketing research outlines a twelvestep approach to marketing research.
Answer: FALSE
LO: 1:2: How to define marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
61) Market research is not considered a subset of marketing research, but rather a separate type of marketing discipline.
Answer: FALSE
LO: 1:2: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
62) Marketing research is defined as a process that reports information that can be used to solve a corporate performance issue, such as determining price or identifying the most effective advertising media.
Answer: FALSE
LO: 1:2: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
63) Linking the consumer to the marketers by providing information that can be used in making financial decisions is the purpose of marketing research.
Answer: FALSE
LO: 1:2: How to define marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
64) Research is collected on groups or topics such as product research, pricing research, promotion research, and distribution research.
Answer: TRUE
LO: 1:2: How to define marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
65) 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: How to define marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
66) The three uses of marketing research are (1) identifying market opportunities and problems, (2) generating, refining, and evaluating potential market actions, and (3) monitoring marketing performance.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
67) 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 using market research to identify market opportunities and problems.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
68) 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: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
69) Marketing research can also be used to generate, refine, and evaluate a potential marketing action.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
70) 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: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
71) Market research is conducted to determine market opportunities as well as to determine the size of various market segments.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
72) Product testing may begin with idea generation and continues with concept tests that allow firms to quickly and inexpensively get consumers' reactions to the concept of a proposed new product.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
73) When a revolutionary new product is created, marketers use innovation research to determine the "value" consumers perceive in the new product.
Answer: FALSE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
74) Marketers who want to know how effective expenditures are for advertising, sales force, publicity/PR, and promotional offers use promotion research.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
75) 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
76) The nationwide study conducted by MSR Group allows banks to identify factors that determine advocates and loyal, at-risk, and critical customer relationships. This is an example of evaluating potential market actions.
Answer: FALSE
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
77) 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: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
78) For the most part, marketing research firms are conducting applied research to solve a specific problem facing a company.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
79) Some product failures are a result of being brought to market without any research, which increased the probability of failure.
Answer: TRUE
LO: 1:3: The function and uses of marketing research
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
80) Management information systems typically have subsystems to provide the information necessary for a functional area within an organization. Such subsystems are the accounting information system, financial information system, production information system, human resources information system, and marketing information system.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
81) A structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers is a marketing intelligence system.
Answer: FALSE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
82) Internal information from orders, billing, receivables, inventory levels, stockouts, and so on may be gathered by using an internal reports system.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
83) Information is gathered and analyzed by the four systems of the MIS: internal reporting system, marketing intelligence, marketing decision support, and marketing research system.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
84) When an item is purchased at a grocery store, a record is generated of the SKUs purchased, payment method, coupons or special promotions used, store location, and day of week and time of day. The reports generated from these activities are an example of an external reports system.
Answer: FALSE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
85) The marketing intelligence system gathers atypical and unusual information about pertinent developments in the environment.
Answer: FALSE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
86) The use of Lexis-Nexis, an online research system, focuses on bringing in information generated outside the firm. This information would rest in the marketing intelligence system.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
87) A marketing decision support system is defined as collected data that may be accessed and analyzed using tools and techniques that assist managers in decision-making.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
88) Marketing research studies are conducted for all specific situations facing the company, which are not collected by other components of the MIS subsystems.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
89) When Walmart Grocery was developing its online pick-up and delivery service, management had several service options available to offer customers and needed to know more about today's shopper. This is an example of using the market research system to design a marketing research study to address a non-specific situation facing the company.
Answer: FALSE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Difficult
Classification: Application
AACSB: Application of knowledge
90) Decision support systems eliminate the need for marketing research.
Answer: FALSE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Easy
Classification: Application
AACSB: Application of knowledge
91) Collected data that may be accessed and analyzed using tools and techniques that assist managers in decision making is representative of a decision support system.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
92) Marketing research projects, unlike the other components of the MIS, are not continuousthey have a beginning and an end.
Answer: TRUE
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
93) 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
94) 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" in order 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
95) 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 similar to 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: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
96) Explain market strategy and why marketing research is important to strategy makers. Do strategies exist in other 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 similar to 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 have to develop the "right" strategy–the strategy that allows our firm to truly meet the wants and needs of the consumers within the chosen market segment.
LO: 1:1: The relationship of marketing research to marketing, the marketing concept, and marketing strategy
Difficulty: Moderate
Classification: Application
AACSB: Reflective thinking
97) Distinguish between the use of marketing research as applied research and basic research. Give one example of both applied research and basic research.
Answer: Students should be able to clearly and concisely differentiate between basic research and applied research. Answers regarding basic research should be similar to: Basic research is research that is conducted to expand knowledge rather than to solve a specific problem. Answers regarding applied research should be similar to: Research conducted to solve specific problems is called applied research, which represents the vast majority of marketing research studies. Answers should note that, for the most part, marketing research firms are conducting research to solve a specific problem facing a company. Examples of basic and applied research will vary but answers should furnish at least one example of basic and applied research. Advanced answers may furnish more than one example each and be more complex in nature.
LO: 1:3: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
98) Marketing research is conducted in a variety of areas, including determining target markets and conducting product research, pricing research, promotion research, and distribution research. Give your own example to illustrate a marketing research study that may be used in each of the following: A. product research, B. pricing research, C. promotion research, and D. distribution research.
Answer: Examples will vary but should clearly demonstrate knowledge regarding each type of research as outlined in the chapter. Specific and clear examples should be given for each type of research. Advanced answers may give more than one example and be more complex in nature.
LO: 1:3: The function and uses of marketing research
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge
99) Despite companies' best efforts, there are many product failures in the marketplace. How can marketing research mitigate the risk to avoid product failures? Discuss how "making the right" decisions translates into value and fewer product failures.
Answer: The discussion should note that when firms make the right decisions, they produce products and services that their target markets perceive as having value. That value translates into sales, profits, and a positive ROI. It is important that students note that some of these failures are brought to market without any research, which increases their probability of failure. Comments should include a recognition that even when products are brought to market with the benefit of marketing research, the predictions are not always accurate, but this does not mean that marketing research is not useful. Advanced answers should mention that most marketing research studies are trying to understand and predict consumer behavior, which is a difficult task. The fact that the marketing research industry has been around for many years, and is growing, means that it has passed the toughest of all tests to prove its worth–the test of the marketplace. Advanced answers may give examples of product failures. Students should note how these product failures might have been avoided.
LO: 1:3: The function and uses of marketing research
Difficulty: Difficult
Classification: Application
AACSB: Reflective thinking
100) Define and distinguish among the subsystems of an MIS including internal reports, marketing intelligence, marketing decision support, and marketing research. Answer: Students should be able to define a marketing research support system as a structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. Answers should define the internal reports system, marketing intelligence system, and a marketing decision support system. The internal report may be defined and identified as that gathers information generated within a firm, including orders, billing, receivables, inventory levels, stockouts, and so on. The marketing intelligence system may be defined as a set of procedures and sources used by managers to obtain everyday information about pertinent developments in the environment. Finally, a marketing decision support system (DSS) is defined as collected data that may be accessed and analyzed using tools and techniques that assist managers in decision-making. Advanced answers may elaborate on each of the components through the use of appropriate examples.
LO: 1:4: How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS
Difficulty: Moderate
Classification: Application
AACSB: Application of knowledge