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Chapter 3 Collecting and Analyzing Marketing Information
MULTIPLE CHOICE
1. With respect to conducting a situation analysis, which of the following IS NOT one of the four
important issues to keep in mind?
a.
Analysis alone is not a solution.
b.
Data are not the same as information.
c.
All bits of data are relevant no matter how minor they may seem.
d.
The benefits of analysis must outweigh the costs.
e.
Conducting a situation analysis is a challenging exercise.
2. When a firm analyzes its objectives and performance, availability of resources, structural
characteristics, and organizational culture, the firm is most likely examining its:
a.
internal environment.
d.
competitive strategy.
b.
external environment.
e.
strategic environment.
c.
mission statement.
3. Issues such as marketing’s position and authority in a firm’s hierarchy, the overall market orientation
of the firm, and the emphasis on short- or long-term planning are examples of which component of the
internal environment?
a.
resource availability
d.
marketing infrastructure
b.
organizational structure
e.
marketing strategy
c.
marketing objectives
4. In the 5W model of customer analysis, what is the primary emphasis of the “What” question?
a.
Assessing how customers consume and dispose of products.
b.
Determining the relevant characteristics that define markets.
c.
Assessing how purchases vary across different distribution outlets.
d.
Identifying the basic need-satisfying benefits provided by the firm’s products.
e.
Identifying the situational influences that affect the customer buying process.
5. In the 5W model of customer analysis, what is the primary emphasis of the “Why” question?
a.
Identifying the situational influences that affect the customer buying process.
b.
Assessing how purchases vary across different distribution outlets.
c.
Determining how the purchase and consumption of one product is related to other
products.
d.
Identifying the basic need-satisfying benefits provided by the firm’s products.
e.
Assessing how customers consume and dispose of products.
6. In many buying situations, customers will buy one product because it complements another product. In
these cases of __________ demand, the demand of one product depends on the demand of another
product.
a.
linked
d.
conjoined
b.
dependent
e.
derived
c.
quasi-
7. Which of the following statements does not describe a reason why noncustomers do not purchase a
firm’s products?
a.
Noncustomers have low switching costs.
b.
Noncustomers perceive that they have lower-priced alternatives.
c.
Poor distribution makes the firm’s product difficult to find.
d.
Noncustomers do not know that the firm’s product exists.
e.
Noncustomers have a basic need that the firm’s product does not fulfill.
8. In the competitive sports drink market, Gatorade pays very close attention to the activities of
Powerade, a major __________ competitor that markets drinks that are similar in features and benefits.
a.
generic
d.
product
b.
direct
e.
total budget
c.
brand
9. As a form of __________ competition, bicycles can solve the same basic need as automobiles, albeit
with a very different product.
a.
regular
d.
total budget
b.
generic
e.
product
c.
brand
10. What is perhaps the most important economic reality in the United States over the last 50 years?
a.
Real GDP has declined dramatically since the end of World War II.
b.
The middle class has been shrinking.
c.
Virtually all U.S. citizens have become wealthier.
d.
Our economy has shifted to become dominated by intangibles such as services and
information.
e.
Our economy is still suffering from the very high inflation rates of the 1970s.
11. What is the main purpose of the Sarbanes-Oxley Act of 2002?
a.
To increase the accuracy and reliability of corporate disclosures of financial information.
b.
To ensure that CEOs are adequately compensated for the risks they face in terms of
corporate governance.
c.
To amend NAFTA to be more favorable to U.S. interests.
d.
To limit the ability of drug companies to engage in direct-to-consumer advertising.
e.
To limit the ability of the media to obtain confidential corporate information.
12. Which of the following examples best describes an advance in backstage technology?
a.
technology that allows consumers to carry portable music players in their pockets
b.
advances in electronics that allow manufacturers to offer 3D television
c.
the invention of satellite radio
d.
the use of radio frequency identification (RFID) to control inventory and logistics
e.
All of the above are examples of advances in backstage technology.
13. Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S.
population.
a.
increasing birth rates
d.
declining death rates
b.
immigration from Canada
e.
minority population growth
c.
increasing life spans
14. The collection of strategic activities aimed at marketing an organization, its issues, and its ideals to
potential stakeholders is referred to as __________. It typically involves marketing activities that are
not directed to the end users of a firm’s products.
a.
external affairs
d.
stakeholder management
b.
corporate affairs
e.
societal relations
c.
public relations
15. Which of the following cultural values is not typically associated with American consumers?
a.
low tolerance for waiting
d.
concern for the natural environment
b.
growing disconnect with government
e.
less tolerance of smoking in public
c.
greater focus on long-term goals
16. Although internal data sources have a number of advantages, one of their biggest problems is:
a.
there are rarely enough internal data.
b.
internal data are often not relevant to the marketing issue at hand.
c.
internal data are expensive to collect.
d.
internal data are often in a form that is not readily accessible.
e.
internal data are typically biased.
17. The sheer volume of available information on the economy, population, and business activities is the
major strength of most __________ data sources.
a.
book and periodical
d.
internal
b.
primary
e.
government
c.
commercial
18. Microsoft is interested in customers’ perceptions of Windows 8, its new PC operating system. Since
the research goal is rather specific, Microsoft should conduct its own __________ research by asking
customers to complete an online questionnaire.
a.
secondary
d.
observation
b.
primary
e.
experimental
c.
qualitative
19. Compared to primary data, secondary data have the main advantage of:
a.
being up-to-date.
b.
having greater relevance to a specific issue.
c.
being both internally and externally focused.
d.
being dramatically lower in cost.
e.
being readily accessible in electronic format.
20. The growth of the Internet has changed the way that situation analysis is conducted in today’s business
environment. In terms on situation analysis, which of the following is the most drastic change caused
by the Internet?
a.
Specific data and information take longer to find.
b.
The analyst is more likely to suffer from severe information overload.
c.
Data and information are now more relevant to the question at hand.
d.
All competitors now have access to the same data and information.
e.
There is now no such thing as secrecy in strategic planning.
ESSAY
1. “Analysis alone is not a solution” is an important piece of advice to keep in mind during a situation
analysis. What does this phrase mean? If analysis alone is not a solution, what other considerations are
relevant during a situation analysis?
ANS:
2. Identify and explain each element of the 5W model for customer analysis. What role does this analysis
play in an overall situation analysis?
ANS:
3. Identify and discuss at least five reasons why potential customers do not purchase a firm’s goods or
services. For each reason, discuss ways that the firm can overcome the resistance of noncustomers.
ANS:
4. Discuss the role of corporate affairs in the analysis of the external environment. What types of
activities are conducted by corporate affairs specialists?
5. Identify and discuss the challenges involved in collecting environmental data and information. How
can a marketing manager or analyst overcome these problems?
