Chapter 2—Data Mining Procedures and Knowledge Systems
TRUE/FALSE
1. When the price of an airline ticket increases as more seats are sold, this is an example of dynamic
pricing.
2. Data, information, and intelligence all have the potential to create value to the firm through better
decision making.
3. Sensing systems can be used to monitor traffic flow through a mall parking lot.
4. Data are a subset of market intelligence.
5. Timely data are the most current data.
6. One way to describe marketing research is to categorize it based on the four possible functions it
serves in business: foundational, testing, issues, and validation.
7. The purpose of a decision support system is to store data and transform data into information that is
easily accessible to marketing managers.
8. The goal of a CRM system is to describe customer relationships so that managers can access
information themselves.
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. Proprietary marketing research is available to anyone via the Internet.
12. An organization’s salesforce frequently provides important marketing intelligence information.
13. Global information systems allow management to track the whereabouts of delivery personnel.
14. Scanner data is collected when consumers check out at stores.
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 which allow more accurate predictions of consumers’
opinions and actions.
17. Foxnews.com is an example of a content provider on the World Wide Web.
18. Data and information can be delivered to consumers or other end users via either primary technology
or secondary technology.
19. Researchers use tracking analytics by taking information from consumers’ actual archived behavior
along with preference data to model sales levels that can be achieved.
20. Types of databases include statistical databases, financial databases, and video databases.
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 of the following is a subset of data and information that actually has some explanatory power
enabling effective decisions to be made?
a.
knowledge
b.
intellectual capital
c.
market intelligence
d.
decision support system
3. Which of the following is a characteristic of valuable information?
a.
global
b.
completeness
c.
objective
d.
all of these choices
4. The characteristic of data reflecting how pertinent these particular facts are to the situation at hand is
called ____.
a.
relevance
b.
timeliness
c.
completeness
d.
significance
5. A researcher has assessed the reliability and validity of his data and is comfortable in thinking the data
accurately matches reality. Which characteristic of valuable information does this best describe?
a.
relevance
b.
completeness
c.
quality
d.
timeliness
6. Some experts claim that the life cycle of technology products is approximately 18 months, meaning
the industry changes that rapidly. This rate of change in environmental and competitive factors is an
example of _____.
a.
entropy
b.
history snuffing
c.
timeliness
d.
market dynamism
7. Merck, a pharmaceutical company, places a tiny chip on drug packaging to track its product from the
manufacturing plant to the consumer to ensure the product flows through the proper distribution
channel and safety for consumers. The tiny chip is an application of which technology?
a.
RFID
b.
smart technology
c.
market dynamism
d.
GPS
8. Which technology works like a WiFi system communicating with specific devices within a defined
space like inside of a retail unit?
a.
RFID
b.
NFC
c.
DDS
d.
DIOD
9. All of the following are functions supported by marketing research EXCEPT _____.
a.
testing
b.
foundational
c.
compliance
d.
performance
10. 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
11. A computer-based system that helps decision makers confront problems through direct interaction with
databases and systems is known as a(n) _____.
a.
Internet
b.
Intranet
c.
decision support system (DSS)
d.
global positioning satellite system
12. 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
13. An organization’s mailing list of current customers is an example of _____.
a.
a cookie
b.
software
c.
a database
d.
a hyperlink
14. Which of the following is a process that allows important day-to-day operational data to be stored and
organized for simplified access?
a.
global information system
b.
data warehousing
c.
proprietary marketing research
d.
keyword search
15. An organization’s inventory figures are a good example of:
a.
cookies
b.
internal records
c.
external records
d.
CRM
16. Who can provide data to a decision support system?
a.
production managers
b.
marketing researchers
c.
accountants
d.
all of these choices
17. 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
18. Accumulated records resulting form point-of-sale data recordings are known as _____.
a.
scanner data
b.
multiple-source data
c.
cookies
d.
environmental scanning data
19. Which of the following is an example of behavioral tracking?
a.
product sales histories
b.
test market results
c.
supermarket scanner data
d.
survey findings
20. _____ is the bar-coded information that contains product information that can be read by optical
scanners.
a.
RFID
b.
NFC
c.
CRM
d.
UPC
21. 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
22. LEXIS-NEXIS is a company that puts together consortia of data sources into packages that are offered
to municipal, corporate, and university libraries for a fee. LEXIS-NEXIS is an example of a:
a.
data compiler
b.
data wholesaler
c.
data warehouse
d.
data miner
23. 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
24. The type of exchange that occurs when one company’s computer system is integrated with another
companys’ system is called _____.
a.
electronic data interchange (EDI)
b.
radio frequency exchanged (RFE)
c.
electronic synergy
d.
realtime communication
25. When 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, this is an example of _____.
a.
cookies
b.
EDI
c.
the Internet
d.
data transference
26. Parties that furnish information on the World Wide Web are called _____.
a.
browsers
b.
content providers
c.
search engines
d.
Intranets
27. A Web site address that Web browsers recognize is called a(n) _____.
a.
URL
b.
EDI
c.
DSS
d.
UPC
28. Yahoo! and Google are examples of _____.
a.
home pages
b.
search engines
c.
ISPs
d.
CRMs
29. A(n) _____ searches through the Internet almost instantly looking for content containing specific
words.
a.
environmental scan
b.
history sniff
c.
web crawl
d.
keyword search
30. Karl is searching “digital cameras” in Google to learn more about the brands available and prices for
each. Karl is performing a(n) _____.
a.
predictive analysis
b.
keyword search
c.
environmental scan
d.
history sniff
31. 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
32. In which type of technology does the consumer request information from a Web page and the browser
then determines a response?
a.
Intranet
b.
push technology
c.
pull technology
d.
interactive technology
33. When 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
34. When an Internet user sets up his computer so that it will send him regular news about his favorite
professional football team, this is an example of the application of _____.
a.
predictive analysis
b.
pull technology
c.
smart agent software
d.
open data partnership
35. 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
36. 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
37. Talbot’s, a women’s clothing retailer, sent Laurie an email notifying her of one the sweaters they are
offering this year in a style and color she had searched for on its Web site during last season’s
clearance sale but was unable to purchase in her size. Talbot’s was linking computerized data sources
to statistical tools to search for predictive relationships to enable more effective marketing
communications, which is an example of:
a.
electronic data interchange
b.
Web tracking
c.
pull technology
d.
predictive analytics
38. Amie has an app on her iPhone that allows her to check in with her friends when she goes out. Her
friends see this information on her Facebook page and on their phones. This type of technology is
a(n) _____.
a.
interpersonal technology
b.
RFID
c.
near field communication (NFC) technology
d.
geolocation technology
39. The Federal Trade Commission is concerned over consumers’ privacy after learning that behavioral
tracking companies can covertly discover and record the websites that consumers visit. This activity
is called _____.
a.
history sniffing
b.
scraping
c.
phishing
d.
predictive analytics
40. One way to address ethical issues related to data technology is by using a(n) _____, which gives
consumers access to the information collected from their Web behavior and even provides them an
opportunity to edit the information.
a.
electronic data interchange
b.
predictive analytic
c.
pull technology
d.
open data partnership
COMPLETION
1. In information technology, _____ is data formatted (structured) to support decision-making or define
the relationship between two facts.
2. When a marketing manager has sufficient information to make a good decision, the information is said
to be ______.
3. A computer-based system that helps marketing managers to solve problems through interaction with
databases is known as a ______.
4. A decision support system that gathers information about customers such as sales history and customer
preferences is known as a(n) _____ system.
5. Numerical, text, voice, and image data that enter a decision support system are known as ______.
6. _____ data refers to the accumulated records resulting from point of sale data recordings.
7. A(n) _____ occurs when one company’s computer system is integrated with another company’s
computer system.
8. _____ information is a term that captures structured data openly shared between companies.
9. Parties that furnish information on the World Wide Web are called _____.
10. A Web site address that Web browsers recognize is called a(n) _____.
11. ______ software is capable of learning an Internet user’s preferences and automatically searching out
information and distributing the information to a user’s computer.
12. A company’s private computer network that uses Internet standard but which is accessible only by its
own employees is known as a(n) ______.
13. _____ refers to linking computerized data sources to statistical tools that can search for predictive
relationships and trends which allow more accurate prediction of consumers’ opinions and actions.
14. Foursquare allows users to check into bars, restaurants, or theaters through their mobile phones so that
others can know where the user is. This is an example of _____ technologies.
15. ____ is a term for activities that covertly discover and record the websites that a consumer visits.
ESSAY
1. Going from data to information to intelligence is like a funnel. Explain what that means.
2. A manager is considering purchasing data from an outside vendor to get a better understanding of the
target market for his firm’s services. What factors should the manager consider when evaluating the
data’s usefulness for his needs?
3. Explain what a decision support system (DSS) is and how it helps marketing managers.
ANS:
4. Compare and contrast pull technology and push technology and describe and example of each.
5. Define predictive analytics and discuss a marketing researcher’s job in predictive analytics.
6. List the four factors to consider regarding the ethics of data gathered through technological means.