Principles of Marketing Chapter 7 & 8 Exam – Flashcards

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research objectives
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are specific, measurable goals the decision maker.
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marketers collect primary data using a which two of the following methods?
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1. Asking people questions 2. Observing people
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the second step in the marketing research project involves developing the research plan. This includes specifying the ____ for the research activity, and identification of the _____ needed for marketing decisions.
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constraints; data
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Which of the following are characteristics of an experiment in research?
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-they are considered casual research -they require tightly controlled conditions -they involve manipulating variables to see the effect on another variable
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5th step in marketing research approach in order from first to last:
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-Make action recommendations -Implement action recommendations -Evaluate the results
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Because the costs are relatively minimal and the turnaround time from data collection to report presentation is much quicker than other methods, many researchers choose to collect survey data
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online
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Which of the following are the two key elements of defining the problem in the marketing research approach?
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(1) setting the research objectives (2) identifying possible marketing actions
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Personal interview
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high costs per respondent
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online survey
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many surveys not delivered to recipients due to "spam blockers"
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fax survey
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perceived to utilize outdated technology
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mall intercept interview
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respondents may not be representative of targeted group
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When a researcher needs information that is very specific to the problem being studied, she will probably resort to using ____ data, despite its cost and time-consuming nature
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primary
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Marketing research is typically conducted for which two of the following related reasons?
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(1) to improve marketing decisions (2) to reduce risk
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Marketers that are interested in identifying the characteristics and trends among ultimate consumers such as age or ethnic background are likely to start with which source of data?
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U.S. Census Bureau reports
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Sampling and statistical inference are special _____ vital to marketing research.
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methods
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Which two of the following are included in developing findings as part of the marketing research approach
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(1) presenting findings (2) analyzing data
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When firms collect customer information and sales history, they sore it in a data ____ where it can be accessed later with queries.
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warehouse
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marketing _____ has little value until it is analyzed carefully and translated into logical findings.
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data
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which two of the following are the main reasons that marketers prefer to obtain secondary data first?
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(1) time saving (2) low cost
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Which two of the following are characteristics of a dichotomous question on a questionnaire?
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(1) A "Yes" or "No" question is an example (2) This is a type of closed-end of fixed alternative question
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Analyzing data and presenting the findings are two parts of which step in the marketing research approach?
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Develop findings
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Which two of the following are examples of personal methods for collecting observational data?
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(1) Mystery shoppers who check a company's customer service (2) Ethnographic studies of consumers in their natural environments
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A linear trend extrapolation is what type of sales forecasting technique?
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Statistical methods
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For Fisher-Price's research on a toy telephone, the _____ was the time children spent playing with alternate designs.
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measure of success
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Which of the following is a mechanical method for collecting observational data?
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Nielson's "people meter" attached to televisions to measure TV ratings
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GE Appliances has determined that it costs $150vper interview to conduct in-depth interviews, while a survey will cost $2 per questionnaire. It is most important for the company to choose the appropriate method based on
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research objectives
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which two of the following are among the biggest challenges in conducting good marketing research?
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(1) Consumers' stated intentions may not match their actual purchase behavior (2) consumers may not be willing to reveal personal information
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Which of the following are research methods used to generate new ideas?
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(1) focus groups (2) depth interviews (3) trend hunting
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A disadvantage of secondary data is that
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it may not be specific enough.
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An informal session of 6 to 10 customers in which a moderator asks their opinions about a firm's and its competitors' products, how they use these products, and special needs these products don't address is known as a
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focus group
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Which two of the following should be systematically analyzed when you evaluate the results of research-driven marketing actions?
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(1) evaluate the decision (2) evaluate the decision process
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Which of the following are essential in the design of all research using questionnaires?
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(1) questions that get clear. unambiguous answers (2) precise, efficient questions
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Organizations may use _____ such as its own detailed sales breakdowns by product line as the stating point for a research project because the potential huge savings in time and cost savings.
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internal secondary data
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Starting with the last known value of the item being forecast, listing the factors that could affect the forecast, and assessing whether they have a positive or negative impact are steps in which type of forecasting?
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Lost-horse
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Which of the following are characteristics of open-ended questions?
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(1)Captures the "voice" of the respondent (2)good for idea generation about products benefits and advertising
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Marketing researchers spend a great deal of time defining a marketing problem precisely. Which two of the following are problems that should be avoided at this stage in the process to increase the probability of a successful marketing research effort?
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(1) objectives that are too narrow (2) objectives that are too broad
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Which of the following are examples of using secondary data?
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(1) a hotel chain purchasing syndicated panel data to identify demographic trends (2) a software company using U.S. census data to create customer profiles (3) a travel company using the last five years of its sales invoices to determine package deals
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Researchers _____ collect personal information on questionnaires meant for marketing purposes because _____.
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should; it is useful for segmentation and targeting purposes/
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Query one's database with "what if" questions to determine how a hypothetical change might affect sales is called a
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sensitivity analysis
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different observers reporting different conclusions when watching the same event may indicate unreliability in what type of data collection?
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Personal observation
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A focus group is a _____ method of inquiry, which makes it more effective in uncovering ideas that are difficult to obtain with individual interviews.
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informal
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A meter installed on a computer that records internet user behavior by tracking actual mouse clicks is what type of method for collecting observational data?
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Mechanical
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When a consultant prepared marketing dashboards showing sales data for different household types over a four-year period for Tony's pizza, this was which step of the marketing research approach?
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Develop finding
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Which of the following is a benefit of using the individual interview to collect data?
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the ability to probe with additional questions
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Marketers can purchase set of ____ data on a regular basis from providers like Nielsen Media Research or J.D. power.
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syndicated
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Using brain scanning to analyze the buying processes f consumers and thereby improve Campbell soup labels is known as
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neuromarketing
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In many cases, the information researchers need is available only through _____ data, since data collected for another purpose may be outdated, incorrectly categorized, or not specific enough.
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primary
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Which of the following characteristics is most important in identifying which data to collect for marketing research?
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Data that is relevant to decisions for marketing actions
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Among research methods vital to marketing are _____, a technique used to select a group of customers, distributors, or the like, and _______, a subsequent generalization of the results from this group to a larger population.
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Sampling; statistical inference
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If all of the research outcomes lead to the same marketing action,
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the marketing research is useless and a waste of resources.
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Some consumer packaged goods firms that sell to wholesalers may not have the means to gather pertinent data directly from consumers that buy its products, especially over time. A good source of this information is
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syndicated data
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The two main data collection ______ are observing people and asking them questions.
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methods
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Creation of an advertising campaign for Tony's Pizza that will appeal to 6 to 12 year olds is best described as what part of the final step in the marketing research approach, to take marketing actions?
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Implementing the action recommendations
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When the marketing manager at Tony's Pizza decided to target households with children ages 6 to 12 to reverse the sales trend in this segment, she was converting information into a
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action recommendation
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In marketing research, the research objectives are the __________ goals of the decision maker.
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specific and measurable
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In a marketing decision, __________ are likely to be restrictions on the time and money available to solve the problem.
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constraints
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Two special methods vital to marketing researchers are __________ and __________.
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sampling; statistical inference
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A company is interested in producing self-stick decorative posters. It selects a representative sample of middle school students who currently have one or more standard posters on their walls. After interviewing them and collecting other relevant data, the firm then makes generalizations about what all middle school students want in their posters. The method used is
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statistical inference
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When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using
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internal secondary data
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A restaurant is collecting comment cards from customers in order to develop ideas about how to improve their business. The restaurant is
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collecting primary data
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Representatives from Kraft spent several months with consumers in their kitchens, attempting to understand what they wanted in ready-to-serve meals prior to the launch of Kraft Deli Creations. The observational approach Kraft used is called __________ research.
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ethnographic
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In eight small group sessions with customers, 3M heard them complain that standard steel wool pads scratched their expensive cookware. The findings from this research lead to the development of 3M's internationally successful Scotch-Brite Never Scratch soap pads. The research method 3M used was
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focus groups
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If you were asked in a telephone interview if you planned to vote in the fall elections, and were asked to answer either yes or no, this question would be considered
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dichotomous
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A question about an instructor's comportment in the classroom, with a five-point scale ranging from "enthusiastic" on one end to "unengaging" on the other end would be what type of marketing research question?
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semantic differential scale
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An advantage of using a panel for marketing research is
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researchers can take successive measurements of consumers to determine if they change their purchasing behaviors over time.
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All of the following are independent variables a market researcher may use in a marketing experiment EXCEPT:
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unit sales
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Through the use of __________, a catalog retailer might determine from its database that customers who purchased silver frames would also have a high probability of buying vintage hatpins. As a result, its sales representatives were instructed to offer a special price on hatpins when a customer places an order for a silver frame.
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data mining
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In 2015, a marketing manager for New Balance's Minimus shoe needs to forecast sales through 2017. She begins with the known totals for 2014 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like the slow economy and predicted moves by the competition. This type of forecast is referred to as
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lost-horse forecasting.
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__________ assumes that the underlying relationships in the past will continue into the future; the method is simple but not always correct.
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Trend extrapolation
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marketing research
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is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
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decisions
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is a conscious choice from among 2 or more alternatives
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decision making
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the act of consciously choosing from among alternatives
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Five Step Marketing Research Approach
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1: Define the problem 2: Develop the research plan 3: collect relevant information 4: develop findings 5: take marketing actions
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measures of success
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criteria or standards used in evaluating proposed solutions to a problem.
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constraints
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restrictions placed on potential solutions to a problem.
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Two key elements in collecting the data
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(1) concepts (2) methods
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concepts
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are ideas about products / services
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new-product concept
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is a picture of verbal description of a product or service the firm might offer for sale.
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methods
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are the approaches that can be used to collect data to solve all or part of a problem.
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special methods vital to marketing:
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sampling & statistical inference
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sampling
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selecting a group...
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statistical inference
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generalize the results...
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data
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the facts and figures related to a project
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secondary data
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facts and figures that have already been recorded prior to the project at hand
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primary data
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facts and figures that are newly collected for a project
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internal sources
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marketing inputs and outputs
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marketing inputs
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relates to the effort expended to making sales
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marketing outputs
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related to the results of the marketing efforts
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2 important advantages of secondary actions
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(1) the tremendous time savings (2) the low cost
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observational data
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facts and figures obtained by watching, either mechanically or in person, how people behave.
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Questionnaire data
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facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
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personal interview surveys
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flexibly but costly
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mail surveys
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biased
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telephone interviews
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flexibility, unhappy respondents
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open-ended question
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#1 question allows respondents to express
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closed-end / fixed alternative questions
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require respondents to select one or more response options.
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dichotomous question
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#2 question yes or no
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semantic differential scale
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#5 question 5-point scale in which the opposite ends have one / two word adj. that have opposite meanings.
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mall intercept interviews
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personal interviews of consumers visiting shopping centers.
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2 special ways that observations and questionnaires are sometimes used are:
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panels and experiments
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panel
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is a sample of consumers / stores from which researchers take a series of measurements.
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experiment
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involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect.
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drivers
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independent variables of interest
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test marketers
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offer products for sale in a small geographic area to help evaluate potential marketing actions
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Information technology
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involves operating computer networks that can store and process data
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data warehouse
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databases internal and external
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data mining
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the extraction of hidden predictive info from large databases to find statistical links between consumer purchasing patterns and marketing actions.
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sales forecast
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the total sales of a product that a firm expects to sell during a specified time period under specified conditions and its own marketing efforts.
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trend extrapolation
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which involves extending a pattern observed I past data into the future.
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linear trend extrapolation
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pattern is straight-line
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survey of buyers' intentions forecast
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involves asking prospective customers if they are likely to buy the product during some future time period.
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salesforce survey forecast
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involves asking the firm's sales people to estimate sales during a forethcoming period.
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Market segmentation links market needs to an organization's marketing program - its specific marketing mix actions designed to satisfy those needs.
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Identify market needs -> Link needs to actions -> Execute marketing program actions
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mass customization
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tailoring products or services to the tastes of individual customers on a high-volume scale
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build-to-order (BTO)
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manufacturing a product only when there is an order from a customer.
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organizational synergy
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the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.
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cannibalization
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when the increased customer value involves adding new products or new chain of stores, the product differentiation-market segmentation trade-off raises a critical issue.
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identify market needs
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-> link needs to actions (The 5 Steps) -> Execute marketing program actions
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frequency marketing
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focuses on usage rate.
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80/20 Rule (Usage Rate)
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80/20 rule; a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers.
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market synergies
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running horizontally across the grid.
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product synergies
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running vertically down the grid.
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head-to-head positioning
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involves competing directly with competitors on similar product attributes in the same target market.
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differentiation positioning
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involves seeking a less-competitive, smaller market niche in which to locate a brand.
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market segmentation
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aggregates prospective buyers into groups that have common needs and will respond similarly to a marketing action.
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product differentiation
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the strategy of using different marketing mix actions to help consumers perceive a product as being different and better than competing products.
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market-product grid
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a framework relating the segments of a market to products or marketing actions of the firm.
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5 steps in segmenting and targeting markets
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Step 1: Group Potential Buyers into Segments Step 2: Group Products to Be Sold into Categories Step 3: Develop a Market-Product Grid and Estimate the Sixe of Markets Step 4: Select Target Markets Step 5: Take Marketing Actions to Reach Target Markets.
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Criteria to Use in Forming Segments:
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-Simplicity and cost-effectiveness of assigning potential buyers to segments. -Potential for increased profit. -Similarity of needs of potential buyers within a segment. -Difference of needs of buyers among segments. -Potential of a marketing action to reach a segment.
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Ways to Segment Consumer Markets:
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-geographic segmentation: Region -demographic segmentation: Household Size -psychographic segmentation: Lifestyle -behavioral segmentation: Product features -behavioral segmentation: Usage rate
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Ways to Segment Organizational (Business) Markets
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-geographic segmentation: statistical area -demographic segmentation: NAICS code -demographic segmentation: Number of employees -behavioral segmentation: Usage rate
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Criteria to Use in Selecting the Target Segments
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-market size -expected growth -competitive position -cost of reaching the segment -compatibility with the organization's objectives and resources
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product positioning
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the place a product occupies in customers' minds based on important attributes relative to competitive products.
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product repositioning
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changing the place a product occupies in consumer's minds relative to competitive products.
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perceptual map
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a means of displaying the location of products or brands in consumers' minds.
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lifestyle
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is the component of psychographic segmentation related to the aspirations of prospective customers.
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demographic segmentation
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groups consumers according to some objective physical, measurable, or other classification attribute of prospective customers.
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What are two approaches to positioning?
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head-to-head and differentiation
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Both of these types of synergies are available in business, but focusing on one may come at the expense of the other.
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product and marketing
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Three Specific Segmentation Strategies
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(1) one product and multiple market segments (2) multiple products and multiple market segments (3) segments of one, or mass customization
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The market-product grid can be used to identify both product and market ______ that may be available.
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synergies
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The purpose of developing a market-product grid is to trigger ______ to increase sales and profits.
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marketing actions
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Which of the following is the fundamental reason a business firm would segment its markets?
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to increase its sales and profits
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Apple's 1997 product matrix for its computer products provides a segmentation strategy based on which two of the following.
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-Desktop and portable computers -Consumer and professional sectors
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In most segmentation situations, as is the case for Apple's computer products,
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product lines and market segments overlap.
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When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur?
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-Establishing a new channel of distribution -Creating a separate promotional campaign
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Before the segmenting and targeting process begins, the marketer should
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identify market needs
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When expenses are greater than the potentially increased sales from segmentation, a firm should
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not attempt to segment its market
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When an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which costs?
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Developing and producing several versions of the product
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Which two of the following result from effective market segmentation?
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-Development of specific marketing mix actions -Formation of meaningful groupings
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Which of the following are examples of different consumer segments in the fast food industry?
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-Families with young children -Value seekers
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To create a perpetual map, evaluations of important attributes of the relevant products are collected from whom?
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Target customers
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The segmentation and targeting process should result in
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an action plan in the form of a marketing program.
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A business firm uses market segmentation to respond more effectively to the wants of groups of potential buyers in order to
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increase sales and profits
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Which of the following is an example of a single product with multiple market segments?
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Residence Inn only offers suites that are larger than traditional hotel rooms, appealing to both business travelers and families with children.
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Walmart is opening 12 stores to test the concept of Walmart Express, stores that are one-tenth the size of its supercenters and sell groceries. One risk to this effort is __________.
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cannibalization
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Potential buyers within a market segment should be
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similar in terms of the advertising media used.
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Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses
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product grouping
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An important part of creating a market-product grid is to
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estimate the size of the markets.
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Which of the following is a criterion used to select a target market segment?
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potential of a marketing action to reach a segment
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Running horizontally across a market-product grid, each row represents an opportunity for efficiency in terms of
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marketing segment
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Positioning a product or brand effectively involves taking four steps, one of which includes
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discovering where the company's product or brand is on the relevant attributes in the minds of potential customers.
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When McDonald's introduced its low-fat McLean Deluxe hamburger, it used __________ to avoid direct competition with Wendy's and Burger King.
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differentiation positioning
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