Chapter 2—Information Systems and Knowledge Management
TRUE/FALSE
1. Data, information, and intelligence all have the potential to create value to a firm through better
decision making.
2. Relevant data are facts about things that cannot be changed.
3. Timeliness means that the data are not more than a few years old.
4. Big data is large quantities of data taken from a single source.
5. One way to describe marketing research is to categorize it based on the four possible functions that it
serves in business: foundational, testing, issues, and validation.
6. The purpose of a decision support system is to store data and transform data into information that is
easily accessible to marketing managers.
7. The goal of a CRM system is to describe customer relationships so that managers can access
information themselves.
8. A decision support system requires databases but not software.
9. A data warehouse is the multitiered computer storehouse of current and historical data.
10. Input data can come from internal sources of the organization, but not from external sources.
11. An organization’s salesforce frequently provides important marketing intelligence information.
12. Modern technology provides new ways of tracking human behavior.
13. Global information systems allow management to track the whereabouts of delivery personnel.
14. Scanner data refers to the accumulated records resulting from point of sale data recordings.
15. Web tracking is illegal.
16. Electronic data interchange (EDI) refers to linking computerized data sources to statistical tools that
can search for predictive relationships and trends, allowing for more accurate predictions of
consumers’ opinions and actions.
17. A party that maintains Web sites on the World Wide Web is called a content provider.
18. Google is a popular search engine.
19. Environmental scanning entails all information gathering designed to detect changes in the external
operating environment of the firm.
20. Data and information can be delivered to consumers or other end users via either primary technology
or secondary technology.
21. Market dynamism represents the rate of change in environmental and competitive factors.
22. Data files in cloud storage can only be accessed through a company’s Intranet.
23. Proprietary marketing research refers to research projects conducted to study specific company
problems.
24. UPC refers to bar-coded information containing product information that can be read by optical
scanners.
25. A search-engine optimizer mines data from in-store point-of-sale data recordings.
MULTIPLE CHOICE
1. Facts or recorded measures of certain phenomena (things or events) are known as ____.
a.
data
b.
information
c.
market intelligence
d.
knowledge
2. Which term describes a subset of data and information that actually has some explanatory power to
enable effective decisions to be made?
a.
knowledge
b.
intellectual capital
c.
market intelligence
d.
decision support system
3. Which characteristic is LEAST important in evaluating the value of information?
a.
timeliness
b.
relevance
c.
completeness
d.
consistency
4. The data characteristic that refers to the degree to which data represent the true situation is known as
____.
a.
timeliness
b.
completeness
c.
quality
d.
relevance
5. Structured data openly shared between companies is called ____.
a.
big data
b.
open source information
c.
universal product codes
d.
scanner data
6. Which term refers to an organized collection of computer hardware, software, data, and personnel
designed to capture, store, update, manipulate, analyze, and immediately display information about
worldwide business activities?
a.
Internet
b.
Intranet
c.
global information system
d.
global positioning satellite system
7. Harold is conducting marketing research to determine what consumer segment his company should
serve with its services. Which function is this marketing research serving?
a.
testing
b.
issues
c.
foundational
d.
performance
8. Who provides data access directly to the end consumer for a fee?
a.
content providers
b.
data wholesalers
c.
search engine sites
d.
data retailers
9. Which part of the decision support system addresses exchanges between the firm and its customers?
a.
customer relationship management (CRM) system
b.
data warehouse
c.
global information system (GIS)
d.
intellectual capital system
10. An organization’s mailing list of current customers is an example of a ____.
a.
cookie
b.
script
c.
database
d.
hyperlink
11. The process that allows important day-to-day operational data to be stored and organized for
simplified access is called ____.
a.
global information tracking
b.
data warehousing
c.
proprietary marketing
d.
keyword searching
12. An organization’s inventory figures are a good example of ____.
a.
cookies
b.
internal records
c.
external records
d.
CRM
13. Which source of input data is represented when a company conducts marketing research to identify the
characteristics of its customers?
a.
internal records
b.
proprietary marketing research
c.
salesperson input
d.
behavioral tracking
14. An example of behavioral tracking is ____.
a.
product sales histories
b.
test market results
c.
supermarket scanner data
d.
survey findings
15. A small microchip used to communicate with data systems is called a(n) ____.
a.
RFID
b.
URL
c.
NFC
d.
HIPAA
16. Procter & Gamble regularly monitors trends and information posted about their products and brands
by consumers on several Web sites. Which source of data input does this represent?
a.
scanner data
b.
Internet records
c.
behavioral tracking
d.
Web tracking
17. LexisNexis is a company that puts together consortia of data sources into packages that are offered to
municipal, corporate, and university libraries for a fee. LexisNexis is an example of a data ____.
a.
compiler
b.
wholesaler
c.
warehouse
d.
miner
18. CompuStat, which publishes financial data, such as income statements and balance sheets, is an
example of which type of database?
a.
statistical database
b.
financial database
c.
video database
d.
electronic interchange database
19. Wal–Mart transmits information electronically each day to Wrangler jeans about unit sales of this
product in its retail outlets so that Wrangler can replenish Wal-Mart’s inventory on an as-needed basis.
What term describes this function?
a.
cookies
b.
EDI
c.
pull technology
d.
data transference
20. Laurie finds the perfect sweater on Talbot’s Web site during its season’s clearance sale, but is unable
to purchase it in her size. The following year, Talbot’s sends Laurie an email notifying her of a similar
sweater in the same style and color. Talbot’s has linked computerized data sources to statistical tools to
search for relationships that will produce more effective marketing communications, which is an
example of ____.
a.
electronic data interchange
b.
Web tracking
c.
pull technology
d.
predictive analytics
21. Parties that furnish information on the World Wide Web are called ____.
a.
browsers
b.
content providers
c.
search engines
d.
Intranets
22. Data collected in an open data partnership is ____.
a.
available only to the researchers gathering the information
b.
available to the consumers from whom researchers gather the information
c.
made publicly available on the Internet
d.
sold to the consumers from whom researchers gather the information
23. A Web site address that Web browsers recognize is called a(n) ____.
a.
URL
b.
EDI
c.
DSS
d.
UPC
24. Yahoo! and Google are examples of ____.
a.
home pages
b.
search engines
c.
ISPs
d.
CRMs
25. Melanie is using the Internet to gather information designed to detect changes in her company’s
external operating environment. What is Melanie performing?
a.
environmental scanning
b.
behavioral tracking
c.
search engine marketing
d.
electronic data interchange
26. Amazon.com recommends books for purchase when a customer who has ordered books from Amazon
previously returns to the site. This is an example of ____.
a.
push technology
b.
electronic data interchange
c.
pull technology
d.
a URL
27. An Internet user sets up his computer so that it will send him regular news about his favorite
professional football team. What application is in use?
a.
push technology
b.
pull technology
c.
smart agent software
d.
RFID
28. When you visit Web sites, most likely, a small computer file that records your Web usage history is
created. This small computer file is called a(n) ____.
a.
electronic data exchange
b.
cookie
c.
URL
d.
intranet
29. Most companies use a private data network that uses Internet standards and technology, but only
allows those individuals whom the organization deems as appropriate participants to access data. This
is an example of a(n) ____.
a.
Intranet
b.
smart network
c.
internal source
d.
content provider
30. Which technique covertly discovers and records the websites that consumers visit?
a.
cloud storage
b.
history sniffing
c.
RFID rags
d.
Boolean operators
COMPLETION
1. In information technology, ____________________ is data formatted (structured) to support decision-
making or define the relationship between two facts.
2. Information that is accurate, valid, and reliable is said to be of high ____________________.
3. Information that is provided when a marketing manager needs it to make an important decision is said
to be ____________________.
4. When a marketing manager has sufficient information to make a good decision, the information is said
to be ____________________.
5. A computer-based system that helps marketing managers to solve problems through interaction with
databases is known as a(n) ____________________.
6. A decision support system that gathers information about customers such as sales history and customer
preferences is known as a(n) ____________________ system.
7. Numerical, text, voice, and image data that enter a decision support system are known as
____________________.
8. ____________________ data refers to the accumulated records resulting from point of sale data
recordings.
9. A(n) ____________________ occurs when one company’s computer system is integrated with another
company’s computer system.
EDI
10. ____________________ refers to linking computerized data sources to statistical tools that can search
for predictive relationships and trends, allowing for more accurate prediction of consumers’ opinions
and actions.
11. Parties that furnish information on the World Wide Web are called ____________________.
12. A Web site address that Web browsers recognize is called a(n) ____________________.
13. A computerized directory that allows users to search the World Wide Web for information based on a
keyword search is called a(n) ____________________.
14. ____________________ technology refers to users requesting information from a Web page and the
browser, and then determining a response.
15. A company’s private computer network that uses Internet standards, but which is accessible only by its
own employees, is known as a(n) ____________________.
ESSAY
1. Explain how data, information, and intelligence represent value to a firm.
2. Name and describe the four characteristics that help determine how valuable data may be to marketing
researchers and managers.
3. Explain what a decision support system (DSS) is and how it helps marketing managers.
4. Define predictive analytics and discuss a marketing researcher’s job in predictive analytics.
5. Compare and contrast pull technology and push technology.