Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 4 Managing Marketing Information to Gain Customer Insights
1) With the recent explosion of information technologies, ________.
A) most marketing managers are overloaded with data and often overwhelmed by it
B) most marketing managers are concerned solely about the duplication of content
C) companies have ceased to feel the need for marketing information systems
D) companies have ceased to maintain internal databases
E) it has become more difficult and expensive to obtain primary data
2) Brad works with a reputed retailer and leads a team that collects market information from a
wide variety of sources ranging from marketing research studies to monitoring online
conversations where consumers discuss Brad’s firm or its products. Brad’s team uses this
information to arrive at a better understanding of consumer behavior and their buying motives.
This, in turn, allows Brad’s firm to successfully generate more value for consumers. Brad leads
the ________ team.
A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights
3) A(n) ________ consists of people and procedures dedicated to assessing information needs,
developing the needed information, and helping decision makers use the information to generate
and validate actionable customer and market insights.
A) enterprise planning system (EPS)
B) enterprise information system (EIS)
C) marketing information system (MIS)
D) corporate performance management (CPM)
E) geographic information system (GIS)
4) An MIS is used to ________.
A) generate product interest
B) develop marketing plans
C) identify demographic trends
D) assess information needs
E) test hypotheses about cause-and-effect relationships
5) An MIS user should most likely be able to ________.
A) implement new technology
B) increase order requests
C) develop customer insights
D) analyze employee turnover
E) establish short-term objectives
6) The market researchers at HoneyCamp Foods gather daily sales data and sort it by product
line and region. With the help of sophisticated tools and techniques, they develop the data
needed by marketing managers to evaluate the market share of the company’s different products
and also to gain valuable market insights. This mix of people and procedures at HoneyCamp
Foods that generate actionable marketing insights represents a(n) ________.
A) enterprise planning system
B) product mix
C) underground economy
D) marketing information system
E) niche market
7) Diana, a senior marketing manager of a pizzeria in North Florida, is currently researching
electronic collections of consumer information within the company network to arrive at crucial
marketing decisions. In this instance, Diana is using ________.
A) ethnographic research
B) internal databases
C) netnographic research
D) data warehouses
E) spatial databases
8) Information in a company’s database can come from many sources. An advantage of
harnessing such information is to ________.
A) eliminate employee turnover
B) achieve a high degree of employee empowerment
C) gain competitive advantage
D) gain access to mass markets
E) eliminate resource dependency
9) Which of the following is an advantage of using an internal database?
A) Data always remains current in internal databases.
B) Highly sophisticated equipment and techniques are not required for maintaining internal
databases.
C) Internal databases can be accessed more quickly and cheaply than other information sources.
D) Internal databases require less maintenance efforts.
E) Information obtained from internal databases is almost always sufficient for making
marketing decisions.
10) Which of the following is a disadvantage of using information from internal databases?
A) Obtaining information from internal databases is both time consuming as well as expensive.
B) It is impossible to verify information obtained from internal databases.
C) Using information from internal databases leads to biased research findings.
D) Internal information may be incomplete or in the wrong form for making marketing
decisions.
E) Internal databases do not support highly sophisticated technologies which makes it difficult to
store large volumes of data.
11) ________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment.
A) Data warehousing
B) Competitive marketing intelligence
C) SWOT analysis
D) Ethnographic research
E) Customer relationship management
12) The marketing department of a reputed firm wants to improve strategic decision making,
track the actions of other players in the market, and provide early warning of opportunities and
threats. Which of the following would help the firm achieve its objectives?
A) ethnographic research
B) blindspots analysis
C) data warehousing
D) competitive marketing intelligence
E) customer relationship management
13) Which of the following statements is true regarding competitive marketing intelligence?
A) The advantage of using competitive marketing intelligence is negligible.
B) The goal of competitive marketing intelligence is to improve recruiting efforts.
C) Competitive marketing intelligence relies upon costly internal databases.
D) Competitive marketing intelligence relies upon publicly available information.
E) Companies using competitive marketing intelligence routinely ignore consumers’ online
chatter.
14) Which of the following refers to a marketing intelligence technique?
A) interviewing customers randomly
B) increasing the annual budget for R&D
C) investing heavily on primary research
D) implementing product diversification
E) benchmarking competitors’ products
15) Which of the following most likely refers to a person who is charged with sifting through
online customer conversations and passing along key insights to marketing decision makers?
A) chief creative officer
B) chief communications officer
C) brand manager
D) chief listening officer
E) programmer analyst
16) Firms use competitive marketing intelligence to ________.
A) create and sustain market monopolies
B) counter the adverse effects of organizational anarchy
C) perpetuate organizational learning
D) gain early warnings of competitor moves and strategies
E) strengthen weak ties with industry competitors
17) ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) Niche marketing
B) Total quality management
C) Marketing research
D) Breakeven analysis
E) Causal research
18) Which of the following is true with regard to marketing research?
A) The marketing research process depends primarily on sophisticated internal databases.
B) The marketing research process requires assessing macroeconomic forces.
C) Marketing research gives marketers insights into customer motivations.
D) Marketing research eliminates the need for a SWOT analysis.
E) Marketing research is a simple two-step process.
19) Which of the following is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and objectives of the study
C) developing the research plan
D) implementing the research plan
E) interpreting and reporting the findings
20) Which of the following is the final step of the marketing research process?
A) developing the research plan
B) implementing the research plan
C) interpreting and reporting the findings
D) selecting a research agency
E) defining the research objectives
21) Which of the following is the objective of causal research?
A) to test hypotheses about cause-and-effect relationships
B) to gather preliminary information that will help suggest hypotheses
C) to describe things, such as the market potential for a product
D) to assign a cause to a seemingly random event
E) to predict the effect of a random event on unrelated entities
22) In ________ research, the objective is to gather preliminary information that will help define
the problem and suggest hypotheses.
A) exploratory
B) statistical
C) causal
D) analytic
E) descriptive
23) The research plan ________.
A) provides comprehensive marketing intelligence about competitors
B) outlines sources of existing data and spells out the specific research approaches
C) does not include sampling plans
D) does not include contact methods
E) precedes the definition of research objectives
24) Ramona Adams, a marketing manager working in an American firm, is about to test the
hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in
the selling price of the product. Ramona is involved in ________ research.
A) exploratory
B) descriptive
C) causal
D) constructive
E) ethnographic
25) Which of the following types of research would be best suited for understanding the attitudes
of consumers who buy a particular brand of soft drink?
A) internal research
B) descriptive research
C) causal research
D) exploratory research
E) demographic research
26) Secondary data consist of ________.
A) information collected for the specific purpose at hand
B) data that does not age
C) information that already exists somewhere, having been collected for another purpose
D) information collected from conducting personal, in-depth interviews
E) data that is unreliable and unsuitable for the purpose of making marketing decisions
27) Primary data consist of ________.
A) data that does not age
B) data obtained from the public domain
C) information collected for the specific purpose at hand
D) information that already exists somewhere, having been collected for another purpose
E) information that is the least expensive and the easiest to obtain
28) Information collected from Internet search engines is an example of ________.
A) primary data
B) secondary data
C) binary data
D) low-level data
E) disposable data
29) Commercial online databases are rich sources for obtaining ________.
A) primary data
B) secondary data
C) customer insights
D) low-level data
E) binary data
30) Which of the following is true about secondary data?
A) It is always current and, unlike primary data, it does not have to be updated.
B) Unlike primary data, it can be obtained by using direct surveys and questionnaires by the
company.
C) It cannot provide extra information a company is looking for.
D) It can be obtained more quickly and at a lower cost than primary data.
E) It requires more effort compared to gathering primary data.
31) Which of the following is a disadvantage of using secondary data?
A) Secondary data is generally not appropriate for consumer products.
B) Collecting secondary data is time consuming.
C) Few sources exist for secondary data.
D) Gathering secondary data is costly.
E) Relevant secondary data can be difficult to locate.
32) Beth Williams works for a marketing research company in Chicago. Her current research
involves finding the market potential for a client’s new line of sports apparel. Given her
objective, which of the following types of research is the most suitable for Beth?
A) causal research
B) constructive research
C) statistical research
D) descriptive research
E) exploratory research
33) A company sent a trained observer to watch and interact with consumers in their natural
environments in order to gain deeper insights on consumer needs. This is an example of
________.
A) viral marketing
B) survey research
C) ethnographic research
D) experimental research
E) niche marketing
34) Which of the following is a valid source of secondary data?
A) personal letters and correspondence
B) Internet search engines
C) ethnographic research
D) direct surveys
E) interviews
35) Which of the following is true with regard to gathering secondary data?
A) Gathering secondary data involves costly fees to government agencies.
B) Commercial online databases contain primary rather than secondary data.
C) Internet search engines can be useful sources of relevant secondary data.
D) It is illegal for firms to purchase secondary data from outside suppliers.
E) Secondary data eliminates the need for primary data in most cases.
36) ________ involves gathering primary data by closely examining relevant people, actions,
and situations.
A) Observational research
B) Survey research
C) Telephone interviewing
D) Causal research
E) Group interviewing
37) ________, a form of observational research, involves sending observers to watch and interact
with consumers in their natural environments.
A) Group interviewing
B) Ethnographic research
C) Survey research
D) Experimental research
E) Causal research
38) Which of the following is true of ethnographic research?
A) It is a type of experimental research which involves evaluating group responses.
B) It involves sending observers to watch and interact with consumers in their natural
environments.
C) It is a traditional quantitative research approach.
D) Information used in this mode of research is mainly derived from secondary data sources.
E) It is a form of survey research.
39) ________ research involves observing customers in a natural context on the Internet.
A) Causal
B) Netnography
C) Survey
D) Ethnographic
E) Geomarketing
40) Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and
Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers
into two groups and asked the members of one group to have Kinglo cereal and the members of
the other group to have Loopy cereal for breakfast. She decided to compare the responses of the
volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is
using ________.
A) niche marketing
B) experimental research
C) product differentiation
D) ethnographic research
E) viral marketing
41) ________ involves gathering primary data by asking people questions about their
knowledge, attitudes, preferences, or buying behavior. It is the most widely used method for
primary data collection.
A) Experimental research
B) Causal research
C) Ethnographic research
D) Survey research
E) Exploratory research
42) Which of the following is most likely an advantage of survey research?
A) The flexibility of survey research is high; it can be used to obtain many different kinds of
information in many different situations.
B) Survey research allows researchers to observe respondents closely in their natural
environments.
C) The chances of getting dishonest feedback are almost negligible with survey research.
D) The attitudes and motives of the customers can be easily determined through survey research.
E) The data gathered in survey research is impartial and free from bias as the surveys are done
in-person to evaluate consumer behavior.
43) Which of the following is true about survey research?
A) It involves sending observers to watch and interact with consumers in their natural
environments.
B) It is best suited for gathering causal information.
C) It involves selecting matched groups of subjects, giving them different treatments, controlling
related factors, and checking for differences in group responses.
D) The level of flexibility in survey research is lower than most other research methodologies.
E) Survey research is the most widely used method for primary data collection.
44) While looking for ideas on how to craft a user-friendly dishwasher, the designers of a
dishwasher-manufacturing company spent 10 days observing people use their dishwashers in
their homes. In this instance, the designers were conducting a(n) ________.
A) survey research
B) experimental research
C) quantitative marketing research
D) ethnographic research
E) causal research
45) ________ refers to gathering primary data by selecting matched groups of subjects, giving
them different treatments, controlling related factors, and checking for differences in group
responses.
A) Experimental research
B) Constructive research
C) Observational research
D) Survey research
E) Descriptive research
46) Experimental research is best suited for gathering ________ information.
A) exploratory
B) causal
C) random
D) unstructured
E) descriptive
47) Observation is best suited for ________.
A) exploratory research
B) constructive research
C) experimental research
D) descriptive research
E) survey research
48) Kinger Burgers came out with a new hamburger and, before including it into its main menu,
released it in two different cities with two different prices. The marketers at Kinger Burgers then
analyzed the different levels of purchase made at these two different places, planning to using the
information to help them set a nationwide price for the new offering. This is an example of
________.
A) ethnographic research
B) descriptive research
C) DIY research
D) experimental research
E) survey research
49) Which of the following is true with regard to mail questionnaires?
A) The response rate of mail questionnaires is often very low.
B) Mail questionnaires are highly flexible.
C) The researcher has maximum control over the mail questionnaire sample.
D) Mail questionnaires are unsuitable for collecting large amounts of information about
respondents.
E) Respondents always provide honest answers to personal questions on mail questionnaires.
50) Wilma Roberts is conducting research to determine consumers’ personal grooming habits.
Because of the personal nature of the survey questions involved, Wilma wants to select the
contact method that is most likely to encourage respondents to answer honestly and that will
allow her to easily collect large amounts of data. Which of the following is best suited to meet
Wilma’s requirements?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) immersion group discussions
51) Which of the following contact methods is the most cost-effective?
A) telephone interviews
B) individual interviews
C) in-depth interviews
D) online surveys
E) group interviews
52) Loft Industries sells roof trusses to contractors and builders and is currently looking for
honest feedback on its services. However, in the past, most of its efforts to procure feedback
from customers did not yield any meaningful data. According to the marketing managers of Loft
Industries, feedback was more polite than honest. Which of the following contact methods
should Loft Industries most likely use to maximize its chances of receiving honest and
impersonal feedback?
A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews
53) Ursula Williams owns a small publishing company in Utah and has a very restrictive budget
for the market research she currently needs to conduct. She requires a large sample size for her
research in order to arrive at insightful conclusions. Additionally, she wants to have excellent
control over her sample. Keeping in mind her restrictive budget and other specifications, which
of the following methods of contact would you advise Ursula to use?
A) telephone interviews
B) individual interviews
C) online surveys
D) mail questionnaires
E) focus group interviews
54) Which of the following is an advantage of telephone interviews?
A) They are more cost-effective than mail questionnaires.
B) Interviewer bias is absent.
C) The quantity of data collected is greater compared to personal interviewing.
D) The speed with which data is collected is high.
E) Response rates tend to be higher than those of mail questionnaires.
55) For her current research project, Margaret Rogers wants to select a sample in which every
member has a known and equal chance of selection. In other words, Margaret is looking for a
________.
A) simple random sample
B) convenience sample
C) stratified random sample
D) judgment sample
E) quota sample
56) Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing
company based in Alabama. To improve future sales of the company’s products, she has decided
to collect customer opinions and feedback on the current products offered by her company. For
this purpose, Melissa is looking for a highly flexible contact method which can be used to gather
large amounts of data within the least possible time. In this instance, which of the following
contact methods is most likely to hold the highest appeal for Melissa?
A) online surveys
B) in-depth interviews
C) telephone interviews
D) individual interviews
E) mail questionnaires
57) Which form of marketing research involves talking with people in their homes or offices, on
the street, or in shopping malls?
A) individual interviewing
B) focus-group interviewing
C) telephone interviewing
D) mail questionnaires
E) observational research
58) ________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a
product, service, or organization.
A) Telephone interviewing
B) Individual interviewing
C) A mail questionnaire
D) An online survey
E) Focus group interviewing
59) Jake Adams works for a marketing research firm and is currently conducting research for a
company that wants to investigate multiple international markets for the possibility of expansion.
Internet-based survey research would be the most attractive research option for Jake if his client
________.
A) places a high emphasis on speed
B) requires a small sample size
C) places a high emphasis on following intrusive research methods
D) wants to exercise full control over the online sample
E) places a high emphasis on ethnographic research
60) Happy Pets, a company manufacturing pet foods and accessories, created a membership club
for its regular customers called “I Love My Pet.” This group consists of animal lovers selected
by the company to complete product-related polls, chat with product developers, and provide
feedback about specific products. Which of the following best describes “I Love My Pet”?
A) primary group
B) immersion group
C) mob
D) dyad
E) triad