Chapter 8: Analyzing People and Markets
TRUE/FALSE
1. The single most important cause for failure in the international marketplace is the inability to
communicate in the host country language.
2. The American Marketing Association (AMA) defines marketing research as the function that links the
consumer, customer, and public to the marketer through information.
3. The research done for international marketing activities is most often more rigorous, formal, and
quantitative than for domestic marketing activities.
4. A marketing plan is usually developed prior to doing any international research.
5. The value of the international marketing decision with the benefit of research should be greater than
the value of the decision without research.
6. Clustering countries into similar groups for screening and evaluation is the first step of foreign-market
opportunity analysis.
7. When importing, firms shift their major focus from supplying to sourcing.
8. Firms appear to be less open about their international marketing activities than about their domestic
ones.
9. It is not necessary to consider the compatibility and comparability of the data while using secondary
data.
10. The researcher should use creative inferences to arrive at knowledge useful to the firm.
11. The EU law permits companies to collect personal data only if the individuals consent to the
collection, know how the data will be used, and have access to databases to correct or erase their
information.
12. The two major approaches to international research organization are the top-down approach and the
bottom-up approach.
13. The less the corporation’s research needs overlap with an agency’s past research accomplishment, the
more likely it is that the research task will be carried out satisfactorily.
14. Centralizing all research activities with one service provider is more efficient than having experts
working on a problem.
15. Standardized research techniques are more useful in the collection of subjective data than of objective
data.
16. Focus groups can be most useful when specific answers are sought to very narrow questions.
17. When qualitative data are desired, surveys are appropriate research instruments.
18. Unstructured questions increase the potential for interviewer bias.
19. Delphi studies are one means of obtaining factual data through quantitative methods.
20. Scenario analysis is used to look at different configurations of key variables in the international
market.
MULTIPLE CHOICE
1. What are the two basic forms of research gathering methods?
a.
Generic and specific
b.
Presentation and demonstration
c.
Primary and secondary
d.
Limited and scope-oriented
2. Which of the following is true of marketing research?
a.
Marketing research can take place in a void.
b.
Marketing research is the link between marketer and market without which marketing
cannot function.
c.
Marketing research highlights the roles of bias, emotions, and subjective judgment.
d.
Marketing research can take place even without a business purpose.
3. A major reason that firms are reluctant to engage in international marketing activities is the:
a.
lack of investors in international markets.
b.
lack of sensitivity to differences in consumer tastes and preferences.
c.
absence of profitable opportunities.
d.
lack of distributors in international markets.
4. The value of research in making a particular decision can be determined by applying the following
equation: V(dr) – V(d) > C(r). In this equation, V(dr) represents the:
a.
cost of research.
b.
value of the decision with the benefit of research.
c.
value of the decision without the benefit of research.
d.
difference between the cost of research and the benefit of research.
5. Which of the following is the aim of foreign-market opportunity analysis?
a.
To utilize a broad-brush approach which is accomplished quickly at low cost
b.
To conduct a detailed analysis of the world on a market-by-market basis
c.
To obtain consistency in the firm’s marketing efforts
d.
To evaluate the natural resources present in the different markets
6. Which of the following is the first step in foreign-market opportunity analysis?
a.
Identifying the potential demand for a specific product
b.
Indexing and ranking countries by their market appeal
c.
Clustering countries into similar groups for screening and evaluation
d.
Developing and planning of strategies of the country chosen
7. Macro level secondary data usually involves:
a.
data on local laws and regulations.
b.
tariff and nontariff information.
c.
information about individual companies.
d.
data on local distribution systems and competitive activities.
8. Collecting secondary data at the micro level involves gathering:
a.
tariff and nontariff information.
b.
government trade policy information.
c.
information obtained from the WTO.
d.
data on local laws, regulations, standards, and specifications.
9. _____ information includes population trends, general trade flows between countries, and world
agricultural production.
a.
Behavioral
b.
Macro
c.
Systemic
d.
Structural
10. Which of the following entities has the greatest variety of secondary data?
a.
International organizations
b.
Governments
c.
Trade associations
d.
Service organizations
11. Which of the following is true about trade associations?
a.
Trade associations provide valuable information about local markets.
b.
The information provided by trade associations is often quite specific in nature.
c.
Trade associations do not maintain files on international trade issues and trends affecting
international marketers.
d.
Trade associations provide general background information such as the name of the chief
executive officer, the address and telephone number, and some information about a firm’s
products.
12. Why is information provided by trade associations often quite general in nature?
a.
Because the frequency of updates is very low
b.
Because the basic intent of such information is to serve as an “appetizer”
c.
Because summary information is what most international organizations look out for
d.
Because of the wide variety of clients served
13. Which of the following is a drawback associated with electronic information services?
a.
The information provided is not cost-effective.
b.
They are heavily biased toward the English language.
c.
They do not provide information on technical standards and trade regulations on specific
products.
d.
The information provided is often quite general in nature.
14. The level of computerization of a society can estimate the future need for software. In this statement,
the level of computerization of a society is a:
a.
random variable.
b.
proxy variable.
c.
constant.
d.
qualitative variable.
15. Which of the following is true about primary research?
a.
It is always conducted by the firm with a specific need.
b.
It is very limited in scope as it typically does not go beyond the activities of secondary
data collection.
c.
It is conducted to fill specific information needs.
d.
It is easier to conduct internationally.
16. Firms are increasingly recognizing that ____ variables, such as lifestyles, attitudes, or personality, can
play a major role in identifying similar consumer groups in different countries.
a.
discrete
b.
segmentation
c.
purchase-related
d.
economic
17. Which of the following questions will require the use of primary research?
a.
What are the latest accords and negotiations in the WTO?
b.
What is the ratio of Columbia’s debt to gross domestic product?
c.
What is the market potential for furniture in Indonesia?
d.
What percentage of global steel production is accounted by the Chinese steel industry?
18. Which of the following approaches uses an intermediary such as an outside research agency to bring
headquarters and country operations together?
a.
Coordinated research approach
b.
Top-down approach
c.
Decentralized approach
d.
Centralized approach
19. In the _____ approach, the headquarters establishes the broad thrust of research activities and
delegates further design and implementation to the specific countries. The research is then carried out
locally, and only a final report is provided to headquarters.
a.
top-down
b.
decentralized
c.
coordinated
d.
centralized
20. Outside research is appropriate:
a.
for small-scale international marketing research.
b.
for small-scale domestic marketing research.
c.
when generalized research skills are required.
d.
when specialized research skills are required.
21. _____ can be helpful in providing information about perceptions, emotions, and other nonovert
factors.
a.
Focus groups
b.
Scanner data
c.
Structured questionnaires
d.
Surveys
22. Which of the following research techniques is most valuable for the researcher who is totally
unfamiliar with a market or market situation, and can be quickly achieved through participation in a
trade mission?
a.
Surveys
b.
Interviews
c.
Focus groups
d.
Observation
23. Which of the following research instruments is used for gathering qualitative data in marketing
research?
a.
Data mining
b.
Survey
c.
Scanner data
d.
Interviews
24. The intent of gathering qualitative data is to:
a.
amass data.
b.
search for statistical significance.
c.
generalize.
d.
obtain a better understanding of given situations and behavioral patterns.
25. When quantitative data are desired, _____ are appropriate research instruments.
a.
interviews
b.
focus groups
c.
surveys
d.
observations
26. Surveys are usually conducted _____.
a.
via questionnaires
b.
through observations
c.
via experiments
d.
through focus groups
27. Which of the following is true about structured questions?
a.
Structured questions increase the potential for interviewer bias.
b.
Structured questions typically permit the capture of more in-depth information than
unstructured questions.
c.
Structured questions are quite useful in cross-cultural surveys because they make
allowance for the frame of reference of the respondents.
d.
Structured questions typically allow the respondents only limited choice options.
28. Which of the following is true about unstructured questions?
a.
Unstructured questions typically allow the respondents only limited choice options.
b.
Unstructured questions decrease the potential for interviewer bias.
c.
Unstructured questions permit the capture of in-depth information.
d.
Unstructured questions prevent the respondents from setting their own frame of reference.
29. In some cultures, certain questions are asked directly to respondents while in others, the same
questions are thought to be rude and insulting. This is because of:
a.
data equivalence.
b.
social desirability.
c.
interviewer bias.
d.
sampling error.
30. In a developed country, a white-collar worker may be part of the middle class, whereas in a
less-developed country, the same person would be part of the upper class. This example underscores
the importance of _____ while deciding on survey question formats.
a.
data equivalence
b.
social desirability
c.
question validity
d.
overt questioning
31. _____ requires categories used in questionnaires to be comparatively structured.
a.
Translation-retranslation approach
b.
Social desirability
c.
Data equivalence
d.
Content analysis
32. In the _____, a researcher formulates the questions, has them translated into the language of the
country under investigation, and subsequently has a second translator return the foreign text to the
researcher’s native language.
a.
transliteration methodology
b.
translation–retranslation approach
c.
multilingual evaluation
d.
reverse translation methodology
33. Translation-retranslation approach is _____.
a.
designed to reduce interviewer bias.
b.
employed to ensure that categories used in questionnaires are comparatively structured.
c.
necessary to ensure the capture of more in-depth information.
d.
used to reduce problems in question wording.
34. To enrich information obtained from factual data, corporations resort to the use of creative and highly
qualitative data-gathering methods. Which of the following methods would allow this?
a.
Surveys
b.
Questionnaires
c.
Scanner data
d.
Delphi studies
35. Delphi studies:
a.
seek to obtain the responses of many people with only specific and limited knowledge.
b.
aim at qualitative rather than quantitative measures by aggregating the information of a
group of experts.
c.
encourage interaction among the participants.
d.
require only two steps for completion and hence information is obtained very quickly.
ESSAY
1. Why are firms reluctant to engage in international marketing activities?
2. What are the sources of secondary data in international marketing?
3. Write a note on analyzing and interpreting primary data.
