BUS 346 Final Chapter 10 – Flashcards
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Marketing research includes all of the following EXCEPT
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Creating data. (Marketing research involves the collection, recording, analysis, and interpretation of data.)
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Political consultants have been using market research for decades to help their candidates understand
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Who makes up the voting public and how to reach them. (Political consultants frequently survey likely voters to find out their current attitudes and to gain insight into how to reach those who may be persuaded to vote for the candidate.)
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Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of market research primarily to
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Monitor his competitors. (Since Paul's service is informing him of quotes from managers of others in his industry, he is monitoring his competition.)
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Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to
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Help her to understand the needs of her customers. (Dr. Combahee is asking specifically about comments and concerns of her customers; thus, she is primarily seeking to better understand their needs.)
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Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in
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Data mining. (Data mining consists of using statistical techniques to discover patterns and relationships in company data. In this case, the connection between peanut butter and banana purchases was discovered.)
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Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed using data mining techniques to uncover
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Patterns of consumers' purchasing behavior. (Walmart is analyzing customers' purchasing data.)
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If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to
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Build separate marketing programs for different demographic segments. (In this case, data mining could be used to identify common purchasing patterns within demographic segments and then design marketing programs according to these patterns and what they reveal about customer needs.)
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From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about
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Preserving their right to privacy. (Consumers are becoming increasingly concerned about privacy.)
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When conducting a survey about choosing vacation destinations, Hillary will need to __________ to get reluctant respondents to provide honest information.
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Assure consumers that their individual responses will be kept confidential. (Unless respondents are promised that their information will be kept confidential, they will often either refuse to participate or give less than candid answers.)
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The marketing research process follows five steps, and researchers
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May not always go through them in the exact sequence if the situation changes or new information is discovered. (In some cases, marketing researchers may move back and forth between the steps of the process, perhaps designing follow-up studies based on earlier data collection.)
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The first question a marketing researcher should ask when considering a research study is
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Will the research be useful? (If research will not guide or influence decision making, there is little point in conducting the research.)
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Assuming that a market research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is:
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Is top management committed to the study? (In addition to ensuring that the research will guide or influence decision making, it is also important to ensure that top management will accept the results of the research. Otherwise, the research is likely to be a waste of time.)
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Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if
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The results will be used in making management decisions. (Market research creates value if it can assist in management decision making.)
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Benefit-cost analysis in market research weighs
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The benefits of answering questions against the cost of the research. (Every research project must be evaluated to ensure that the benefits of obtaining answers exceed the cost of getting those answers.)
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Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to
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Begin to collect data. (After defining the research objectives and designing the research, the next step is to collect data.)
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Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Business people tend to be more cautious before embarking on a marketing research study, recognizing that research is often
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Expensive and time consuming. (Research can be expensive and time consuming, and for that reason businesses should embark on research only if the benefits of obtaining the answers exceed the costs of doing the research.)
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Market research begins with
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Defining objectives and research needs. (The first step of the marketing research process is to define the objectives and needs for the research to ensure that the right questions will be answered.)
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The manager of a company selling baby products asks you to conduct research into the question, "Is life expectancy getting longer in Kuwait?" The problem with this research objective is that
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It is irrelevant to the baby products company. (The sale of baby products would not seem to be related to the life expectancy in Kuwait. If the company wanted to sell baby products in Kuwait, the birth rate in Kuwait would be a potentially relevant piece of information.)
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The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, "What percentage of people in Kansas live in communities of fewer than 10,000 people?" The problem with this research objective is that
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It is already known and available from the U.S. Bureau of the Census. (The U.S. Bureau of the Census can provide a great deal of demographic information, including the answer to this question. Since secondary data are available, there is no need to conduct research to get the answer.)
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After defining objectives and research needs, the next step in the marketing research process involves
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Research design. (The second step in the research process, after defining objectives, is to design the research.)
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During the research design step of the marketing research process, researchers identify the type of data needed and
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The type of research necessary to collect the data. (Once the objectives of a research project have been defined, the research can be designed, identifying the type of data needed and the type of research needed to collect the data.)
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Victor's custom auctioneering service provides online auction selling assistance. Victor plans to conduct marketing research to determine which auction site is best for his customers. His next step is to
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Identify the type of data he needs to have. (Once Victor has defined his research objectives—to determine which auction site is best—he will move on to design the research, identifying the type of data he needs and the research method he should use.)
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Company sales invoices, census data, and trade association statistics are examples of
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Secondary data. (These are all examples of secondary data—data that were collected for another purpose but that can be helpful in answering questions.)
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Commercial research firms like ACNielsen and SymphonyIRI Group are sources of
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Syndicated data. (These are sources of syndicated data—secondary data that can be purchased from firms that collect it.)
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Jalel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends, including sales by different musical styles, online downloads, and concert attendance. Jalel will most likely use __________ to gather this type of data.
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Syndicated data. (Of the options listed, syndicated data are the best choice. Jalel can look for a data provider who can supply industry sales information. Focus groups and observation are research methods that would not offer comprehensive sales data. Sales invoices could summarize results for Jalel's band but not for the industry, and census data do not provide the needed information.)
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Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct
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Quantitative research. (Qualitative research is often done in part to obtain preliminary insights. Once this is complete and the researcher understands the research topic, the project can proceed to conduct quantitative research, attempting to obtain definitive answers to the research questions.)
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A marketing research project often begins with a review of the relevant __________ data.
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Secondary. (Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost.)
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Joe is reviewing secondary data his company collected about seasonal variation in consumer spending because he is thinking about developing a new product line. The advantages of using these data are that
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They can be quickly accessed at a relatively low cost. (Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost. This data was not collected for the purpose Joe is using it for.)
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Omar is responsible for marketing and marketing research for a mid-sized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind?
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"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk." (Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost; however, secondary data are not tailored to a specific research need and may not provide the answers sought.)
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Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to
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How the secondary data were collected. (To use secondary data appropriately, it is important to understand how and when they were collected.)
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After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Marvin will need __________ data to address the questions in his market research study.
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Primary. (Because existing secondary data do not answer his questions, Marvin may need to collect primary data.)
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A major advantage of primary data collection is that
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It can be tailored to meet the specific research needs. (Primary data collection, though it can be expensive and time-consuming, can also be tailored to the precise needs of the research.)
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A major disadvantage of primary data collection is
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It takes more time to collect than secondary data and is more costly. (Primary data collection can be expensive and time-consuming, but it can also be tailored to the precise needs of the research.)
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Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be
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U.S. census data. (She could purchase syndicated data, but census data should address Caroline's need for income and age distribution information.)
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Data collection begins
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Only after completing the research design process. (It is important to design the research before data collection begins to ensure that the correct data are collected using appropriate methods.)
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When the market research problem is not clearly defined, a researcher will likely engage in __________ research.
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Qualitative. (Qualitative research can be conducted to investigate the research problem to gain preliminary insights)
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Recently, the number of students enrolled in the marketing program dropped while enrollment in the psychology program increased. The chair of the marketing department will probably use __________ as a first step to gain a better understanding of why enrollments are changing.
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Qualitative research. (Qualitative research can be conducted to investigate the research problem to gain preliminary insights and more clearly formulate the research objectives.)
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Quantitative research offers a means to confirm ideas through
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Surveys or experiments. (Quantitative research produces data that can be used to confirm ideas through statistical testing.)
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Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her customers visit when they come to her store. To collect information for this objective, Bianca will most likely use
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Observation. (Bianca can hire someone to observe foot traffic to the stores in the strip mall to see which customers visit her store as well as others. Sales invoices and census data would not reveal the answers, and door-to-door surveys and focus groups would have a problem in that you would be able to approach only a small percentage of shoppers.)
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Which of the following is true about quantitative research?
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It confirms insights and provides a basis for taking a course of action. (The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.)
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__________ confirms insights and provides a basis for taking a course of action.
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Quantitative research. (The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.)
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When consumers are __________, observation becomes particularly useful in understanding consumers' preferences.
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Unable to articulate their experience. (Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.)
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When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences.
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Observation. (Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.)
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Using __________, researchers ask questions, listen to and record responses, and ask additional questions based on initial responses.
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In-depth interviews. (In-depth interviews allow participants to give detailed responses and allow researchers to ask follow-up questions based on initial responses to planned questions.)
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Social media monitoring, in-depth interviews, and focus groups are all __________ research methods.
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Qualitative. (Qualitative research methods include observation, in-depth interviewing, focus groups, and social media monitoring.)
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Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the __________ research method.
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In-depth interviews. (In-depth interviews are a good way to collect detailed opinions from a small number of individuals.)
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Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level?
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In-depth interviews. (In-depth interviews are a good way to collect detailed opinions from a small number of individuals.)
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When the detailed opinions of a few industry experts or experienced consumers are needed, __________ are often the best qualitative research method.
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In-depth interviews. (In-depth interviews are a good way to collect detailed opinions from a small number of individuals.)
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Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randall could use __________ to help him develop his survey.
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In-depth interviews. (In-depth interviews are a good way to collect detailed opinions from a small number of individuals.)
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Frederica manages an upscale women's clothing store. She wants more information about her customers' general feelings about upcoming fall fashions. Frederica will most likely use __________ to gather this type of data.
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Focus group interviews. (Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.)
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A(n) __________ is a small group of people brought together for an intensive discussion of a topic.
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Focus group. (A focus group is a small group that participates in an intensive discussion of a topic, sharing their views with the moderator and with each other.)
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In a focus group, researchers usually videotape the session to
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Assess both verbal and nonverbal responses. (Videotaping allows the researcher to record verbal responses as well as body language.)
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Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings.
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Focus groups. (Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.)
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Martin has hired a market research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans his firm is considering. The market research firm might conduct a(n) __________ to provide the information Martin has requested.
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Focus groups. (Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.)
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In the infamous Coke-New Coke taste test, 54 percent of consumers, using a blind taste test, preferred the New Coke formula to the existing formulation. This is an example of a(n) __________ market research method.
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Quantitative. (Quantitative research is numeric/statistical in nature, as in this case where the precise percentage of consumers preferring one option to the other was measured.)
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Malcolm is the campaign manager for a congressional candidate. He wants to know how voters across his district feel about recent sexual harassment scandals involving politicians. Malcolm will most likely use __________ to gather this type of data.
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Surveys. (A survey would be an efficient way to determine voters' feelings in this case.)
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When conducting a research study attempting to understand what features were most important to automobile consumers, Gary's Research Company used a questionnaire containing __________ questions, with a predetermined set of response options.
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Structured. (A structured questionnaire consists of closed-ended questions and predetermined response alternatives.)
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Quincy had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use __________ to allow respondents to answer in their own words.
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A survey with open ended questions. (A survey with open-ended questions allows people to answer in their own words.)
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The owner of A. C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure that most customers had one of three reasons—service, reputation, or location—but wanted to know which was revealed as the most frequent reason for purchasing. A. C. Flora will probably use a survey with __________ questions to address his research problem.
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Closed-ended. (A structured questionnaire consists of closed-ended questions and predetermined response alternatives. In this case, A C. Flora simply wants to compare among three possible reasons for choosing a company, so closed-ended questions are an appropriate format.)
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Which of the following is NOT one of the guidelines for developing a market research questionnaire?
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Sensitive questions should be asked first. (Sensitive questions should be avoided altogether unless they are absolutely necessary.)
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In questionnaire design, a question such as, "When was the first time you went to a dentist?" suffers from the problem of a question that
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Respondents cannot easily or accurately answer. (It may be difficult for a respondent to remember his or her first dentist office visit, which means that responses to the question will probably not be reliable.)
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In questionnaire design, a question such as, "Marketing is the best part of the business program, isn't it?" suffers from the problem of a question
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That leads respondents to a particular response. (This question suggests the answer "Yes" by its wording.)
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In questionnaire design, a question such as, "Do you like Wendy's hamburgers and fries?" suffers from the problem of a question
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That asks two questions at once. (This should be split into two questions—one about Wendy's hamburgers and one about the fries.)
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In questionnaire design, a question such as, "Do anti-lock braking systems reduce car accidents?" suffers from the problem of a question
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That respondents cannot easily or accurately answer. (Respondents are unlikely to have sufficient information to answer the question.)
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Charles wants to survey recent customers about the quality of service they received at his small auto service dealership. He has customers' mailing and e-mail addresses. Charles will likely use an online survey primarily because it offers
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Fast responses at a lower cost. (Online surveys typically have higher, not lower, response rates. Although online surveys do allow the sharing of video and other methods, it does not sound like Charles needs to do that to get his questions answered. He also does not seem to need to ask sensitive questions, nor to talk to potential customers (since he wants opinions of current customers). He may, though, want faster responses at a lower cost, especially since his company is a small one, probably with a limited research budget.)
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__________ research is a type of quantitative research that manipulates variables to help determine cause and effect.
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Experimental. (Experimental research manipulates a variable to determine cause and effect. The challenge is in controlling other variables to make sure that the cause-and-effect relationship is not affected by other changes.)
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Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine all of the following EXCEPT
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Other stores where you buy similar products. (The use of the grocery loyalty or bonus card allows the grocer to save a list of everything you bought on a given occasion and to compare your behavior on different occasions. The impact of price changes and promotions can be studied, as can trends across many customers.)
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Supermarkets collect information about individual customers through their use of loyalty cards and then analyze the data to look for patterns in purchases. This is an example of
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Data mining. (Data mining uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables.)
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When a research team has gathered data for specific research needs, this is known as
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Primary data. (Primary data are those data collected to address specific research needs. Secondary data are data that were originally obtained for another purpose but that may assist in answering the research question.)
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Which of the following statements best describes secondary data?
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Secondary data are pieces of information that have been collected prior to the start of the focal research project. (Secondary data can be quick to access and relatively low cost. The secondary research may not be the most current information available, since the data are not intended for the researchers' specific needs.)
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Which of the following types of research would be considered quantitative research?
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Experimental research. (Experimental research manipulates a variable to establish cause-and-effect relationships. As a form of quantitative research, it is typically numeric/statistical in nature and can be used to confirm insights.)
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Which of the following is a systematic means of collecting information from people by using a questionnaire?
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Survey. (A survey is a systematic means of collecting information from people by using a questionnaire.)
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If a marketing researcher has to collect data under severe time constraints, which of the following types of data sources would probably be available soonest?
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Syndicated data. (Syndicated data can be purchased and are readily available for a fee.)
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Which of the following statements is NOT one of the guidelines provided by the American Marketing Association for conducting marketing research?
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Personal information about research participants should not be shared, EXCEPT with a designated member of senior management. (Sharing of personal information without a participant's explicit permission is unethical and should not take place under any circumstances. The other four provisions are included in the AMA's guidelines.)
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The number of customers who discontinue their use of a service divided by the average number of total participants is called
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Churn. (Churn is the number of participants who discontinue their use of a service divided by the average number of total participants. It is a measure of how much turnover a company experiences in its customer base.)
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Which of the following data sources would NOT be considered external secondary data?
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A survey. (Secondary data might come from free or very inexpensive external resources such as census data or newspaper articles, or it can be purchased for a fee (for example, syndicated data). A survey is primary data.)
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Which of the following types of data would be the best choice for Wendy's fast food restaurants if the headquarters office wants to know how many hamburgers versus chicken sandwiches it has sold in past years?
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Internal secondary data. (Internal secondary data are based on a company's day-to-day operations.)
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A restaurant chain is working to improve the quality of its food and service. It recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years, to track its progress. What kind of data is the restaurant chain collecting?
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Panel data. (This is an example of using a panel—a group of consumers who provide information over a period of time. These are primary, not secondary, data because the data are being collected specifically to measure progress in improving satisfaction.)
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Which of the following is an unstructured question?
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"What are the most important characteristics for choosing a brand of shampoo?" (Unstructured questions are open-ended and allow respondents to answer in their own words.)
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Which of the following provides the information needed to confirm insights and help managers to pursue appropriate courses of action?
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Quantitative research. (Quantitative research aims to confirm insights and offer decision-making guidance to managers.)
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If a fast food restaurant collected photographs of its regular customers so that it could use facial detection software to identify visitors captured by security cameras, this would be an example of using
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Biometric data. (Biometric data include one or more physical traits such as facial characteristics, iris scans, or fingerprints.)
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What is neuromarketing?
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The use of EEG scanners to measure consumers' brain waves. (Neuromarketing uses EEG scanners to study the brain when various marketing stimuli are applied. The practice has ethical implications.)
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McDonald's recently introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether consumer perceptions are improving. This would be an example of
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Sentiment mining. (Sentiment mining is the collection and analysis of social media posts to gain insights into consumer thoughts and opinions.)
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How might a book publisher use blogs in its marketing research efforts?
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As a source of reviews of its latest releases. (Bloggers often review products. These reviews can provide insights, especially if the blogger is unaffiliated with the products being reviewed.)
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What is a disadvantage of online focus groups, compared to offline focus groups?
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They usually do not permit insights based on body language. (Because most online focus groups do not currently include video feeds, insights from body language are often not available.)
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In what country have regulators demanded that Facebook stop collecting biometric data on its users?
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Germany. (Regulators in Germany have demanded that Facebook stop collecting biometric data.)
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Digital billboards embedded with ________ software can identify passersby and then display ads targeted to them, based on their age, gender, and attention level.
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Facial recognition. (Consumers have little control over facial recognition software that allows companies to detect demographic information based on their appearances.)
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Mary's Bakery is trying to determine what price to charge for her cookies, so Mary places a low price on them and raises it each week, keeping track of how many she sells. Then she determines what her cost was for the cookies and determines which price was the most profitable. What form of research was Mary conducting?
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An experiment. (Experimental research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.)
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Qualtrics, Surveymonkey, and Zoomerang are examples of
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Online survey software. (Diverse online survey software, such as Qualtrics, Surveymonkey, and Zoomerang, makes it very easy to draft an online survey, using questions from existing survey libraries.)
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Which of the following is an example of an unstructured question?
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Why did you buy this product? (Unstructured questions are open-ended and allow respondents to answer in their own words. Structured questions are closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate.)
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A typical focus group has ________ members.
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8-12. (In focus group interviews, a small group of persons (usually 8 to 12) come together for an intensive discussion about a particular topic.)
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Nadia stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she asked them what they bought and how they came to the decision to buy that item. What form of research was Nadia most likely conducting?
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In-depth interviews. (In an in-depth interview, trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue.)
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In addition to using sentiment mining to determine customer attitudes about products, some companies also participate in ________ by joining in online conversations with customers.
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Social engagement. (Some companies take sentiment mining a step further by joining the online conversation with customers, a process called social engagement.)
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Blogs represent valuable sources of marketing research insights, but they are also a challenge for firms because
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They include both positive and negative commentary. (Because bloggers are generally independent, they have no loyalty to a company. Reviews can be positive or negative.)
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Mattel wanted to determine whether a new toy would appeal to preschoolers, so it put six 4-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this?
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Observation. (Mattel observed the children and drew conclusions based on their preferences, which is indicative of observation.)
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If a cable television company had 100 million subscribers at the end of the year, and 2 million of its subscribers left its service, it would have a churn rate of
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2%. (Churn is the number of participants who discontinue use of a service, divided by the average number of total participants. Therefore, 2 million/100 million = 2%.)
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Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that was available?
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Data mining. (Jeffrey's used data mining to analyze customer buying patterns by analyzing the data that was captured from loyalty cards.)
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SymphonyIRI Group, the National Purchase Diary Panel, and ACNielsen are examples of companies that provide
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Syndicated data. (These are all commercial research companies that sell external secondary data for a fee, or syndicated data.)
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Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is
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Secondary data. (In political settings, such secondary data can be critical for candidates running for office.)
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________ can be defined as raw numbers or other factual information that, on its own, has limited value.
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Data. (This describes data. When the data are interpreted, they become information, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.)
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One of the disadvantages of secondary research is ______, whereas one of the disadvantages of primary research is often ________.
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Potential bias; cost. (Both primary data and secondary data have certain inherent and distinct advantages and disadvantages.)