Chapter 9—Decision Support Systems and Marketing Research
TRUE/FALSE
1. A marketing decision support system (DSS) is an interactive, flexible computerized information
system that bypasses information-processing specialists and gives managers access to useful
information from their own desks.
2. A true marketing decision support system is interactive, flexible, discovery-oriented, and accessible.
3. The three roles of marketing research are persuasive, reminder, and informative.
4. Marketing research has one use for management: It improves the quality of decision making.
5. Historically, marketing research has been practiced since the late 1800s.
6. The first step in the marketing research process is to identify and formulate the problem/opportunity.
7. To save money on marketing research, a marketing manager suggests the company use the results of a
survey conducted last year because similar questions were asked then. The manager is suggesting use
of primary data.
8. The last step in the marketing research process is to prepare and present the report.
9. The quality of secondary data should never be questioned.
10. Stuart Marketing Research is gathering information on the way people wrap gifts specifically for a
large manufacturer of gift wrap paper that is considering introducing reusable wrapping paper with
Velcro fasteners. The information gathered would be an example of primary data.
11. The most popular technique for gathering primary data is by observation.
12. Compared to the personal interview, the telephone interview costs less, but cost is rapidly increasing
due to respondent refusals to participate.
13. Fisher-Price employees were engaged in experimental research when they observed, from behind a
mirror, children playing with soap bubbles and decided to build a toy lawn mower that spewed soap
bubbles.
14. A marketing research company has hired Anu to evaluate the quality of service in a chain of local
restaurants. Anu enters the restaurant posing as a customer. She pretends she has an allergy to gluten, a
common component of baked goods. She asks if the menu can accommodate this special need and
reports back to the research company about the level of service she received. Anu is working as a
mystery shopper.
15. Ethnographic research is a form of experimental research because it is conducted without any
preconceptions.
16. The best experiments are those in which one factor is held constant and the other factors of interest are
deliberately manipulated.
17. In a probability sample, every element in the population has a known statistical likelihood of being
selected.
18. Martina was interested in how students perceive the health service provided by her university. To
collect data on this issue, she interviewed the students in her evening class. Martina has used a random
sampling procedure.
19. Measurement error occurs when a sample somehow does not represent the target population.
20. Once adequate amounts of data have been collected, the researcher should present the report.
21. One advantage of Internet surveys is dramatically reduced costs.
22. Because online surveys are still in their infancy, there are limited methods of conducting online
surveys.
23. The difference between a traditional focus group and an online focus group is that there is no
moderator in the online group like there is in a traditional group.
24. Channel M2 provides market researchers with user-friendly virtual interview rooms, recruiting, and
technical support for conducing virtual qualitative research.
25. An online message board consists of a selected group of consumers who agree to participate in an
ongoing dialogue with a particular corporation.
26. Blogs are a source of consumer-generated media.
27. Scanner-based research is a system of gathering information from a group of respondents by
continuously monitoring the promotions panel members are exposed to and their subsequent purchase
behavior.
28. Los Hermanos Cafe has successfully operated seven restaurants in the same community for 20 years.
Management plans to introduce an egg and cheese breakfast burrito to three restaurants after having
success with this product in its other four diners. Since management knows this market so well, Los
Hermanos Cafe doesn’t need to conduct research before introducing the new product in its remaining
restaurants.
29. Competitive intelligence allows managers to predict changes in business relationships, identify
marketplace opportunities, and discover new or potential competitors.
30. Conferences and professional courses led by rival executives are great places to gather competitive
intelligence.
MULTIPLE CHOICE
1. Everyday information about developments in the marketing environment that managers use to prepare
and adjust marketing plans is referred to as:
a.
competitive intelligence
b.
marketing information
c.
decision support information
d.
marketing research
e.
observation
2. A(n) _____ is an interactive, flexible computerized information system that enables managers to
obtain and manipulate information as they are making decisions.
a.
expert system
b.
marketing information system
c.
artificial intelligence system
d.
marketing decision support system
e.
database marketing system
3. According to the text, a true marketing decision support system should be flexible, which means:
a.
managers can probe for trends, isolate problems, and ask “what if” questions
b.
managers that aren’t skilled with computers can easily learn to use the system
c.
managers are able to sort, regroup, total, average, and manipulate data in various ways
d.
managers can give simple instructions and see immediate results
e.
managers can find optimum solutions to marketing problems
4. A true marketing decision support systems (DSS) possesses all of the following characteristics
EXCEPT:
a.
flexible
b.
discovery-oriented
c.
interactive
d.
accessible
e.
synergistic
5. _____ is the creation of a large computerized file of customers’ and potential customers’ names,
profiles, and purchase patterns.
a.
Electronic targeting
b.
Sampling procedure specification
c.
Database marketing
d.
Competitive data mining
e.
Consumer behavior marketing
6. _____ is the process of planning, collecting, and analyzing data relevant to marketing decision making.
The results of this analysis are then communicated to management.
a.
Data collection
b.
Artificial intelligence
c.
Decision support
d.
Marketing research
e.
Single-source research
7. The owner of a small chain of local coffeehouses could use _____ to determine why customers do not
seem to like her coffeehouse’s new location.
a.
transactional marketing
b.
public relations
c.
an EDI system
d.
market synergy
e.
marketing research
8. Soon after the Chenault Military Museum expanded its hours and began charging a small fee to pay for
the extra help needed to keep it open longer, attendance decreased. To determine why this decrease in
attendance occurred, the museum staff could rely on:
a.
a production audit
b.
database marketing
c.
marketing research
d.
an internal marketing audit
e.
secondary data
9. The publisher of a Canadian business magazine wanted to make several major changes in the
magazine’s content and format. To determine what changes would be supported by its subscribers and
what changes would not be welcomed, the publisher should engage in:
a.
advertising
b.
database marketing
c.
marketing research
d.
a data retrieval system
e.
secondary data
10. Marketing research has three functional roles. These roles are:
a.
normative, descriptive, and explanatory
b.
predictive, normative, and persuasive
c.
descriptive, diagnostic, and predictive
d.
flexible, interactive, and discovery-oriented
e.
descriptive, explanatory, and predictive
11. Volkswagen developed an 18-month-long project to gain a better understanding of the American
culture so it could develop cars more appealing to this market. The research project was called
Moonraker. Moonraker was intended to play a(n) _____ role in Volkswagen’s marketing research.
a.
diagnostic
b.
descriptive
c.
predictive
d.
heuristical
e.
demonstrative
12. The Johnsonville Sausage Company wants to know which areas of the country consume the most
sausage. The company is not especially interested in an explanation for the popularity of sausage in
different regions; it simply wants factual information about it. Johnsonville is interested in using
marketing research in its _____ role.
a.
historical
b.
descriptive
c.
predictive
d.
normative
e.
objective
13. Phillip Morris USA, the manufacturer of Marlboro Ultra Smooth cigarettes targeted to people who
want to smoke a potentially safer cigarette, has asked for marketing research to explain the reasons for
the recent failure of the new cigarette. This type of research is described as:
a.
descriptive
b.
predictive
c.
diagnostic
d.
normative
e.
historical
14. Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market
and is not attracting younger concertgoers. It next conducted marketing research to determine if an
integrated advertising campaign targeted to the younger market would be successful. In its second use
of research, BSO employed _____ marketing research.
a.
historical
b.
descriptive
c.
predictive
d.
normative
e.
objective
15. After listening to a group of middle-aged women discuss their biggest concerns about the jeans they
wore, a company designed a new line of comfortable women’s jeans and touted them as “not your
daughter’s jeans.” This is an example of research conducted to:
a.
improve the quality of their decision making
b.
find out why a marketing plan failed
c.
learn how to more efficiently retain customers
d.
understand the ever-changing marketplace
e.
do all of these
16. Soon after Keebler introduced its Sweet Spots cookie, the company increased the box size and the
price of the product. Demand fell. Keebler conducted marketing research to determine what happened.
This is an example of research conducted to:
a.
improve the quality of their decision making
b.
find out why a marketing plan failed
c.
learn how to more efficiently retain customers
d.
understand the ever-changing marketplace
e.
do all of these
17. When gas prices approached $4.00 per gallon, auto manufacturers began thinking about the hybrid car
market. Before committing to it, though, they asked consumers whether they would even consider a
hybrid version of their new vehicle had it been available and, if so, what type of alternative fuel they
found most appealing. In this case, marketing research was being conducted to:
a.
improve the quality of their decision making
b.
find out why a marketing plan failed
c.
learn how to more efficiently retain customers
d.
understand the ever-changing marketplace
e.
do all of these
18. The first step in the marketing research process is to:
a.
specify the sampling plan
b.
collect the data
c.
analyze the marketplace
d.
plan the research design
e.
identify and formulate the problem/opportunity to be studied
19. When Eurasia restaurant, serving Eurasian cuisine, first opened along Chicago’s Michigan Avenue, its
novelty brought many diners. However, it turned off the important business lunch crowd, and sales
went into decline. Before conducting any marketing research to explain the declining sales
management needs to:
a.
determine who will be most likely to respond to a survey
b.
select a market sample from everyone in the population
c.
define the problem to be researched
d.
develop a survey to find out exactly what’s wrong
e.
enumerate the decision factors
20. A small brewery has noticed a 20 percent decrease in the sale of its dark beer over the last three years.
The company’s owner wants to determine why the decline has occurred and how to reverse the trend.
Once the owner has identified the problem as a consumer perception that dark beer is bitter and
calorie-laden, its next step in the marketing research process should be to:
a.
collect the data
b.
recognize the marketing problem
c.
analyze the marketplace
d.
plan the research design
e.
specify the sampling plan
21. The marketing research problem:
a.
is information oriented
b.
involves determining what resources will be used in research efforts
c.
is action driven
d.
does not rely on managerial experience
e.
is accurately described by none of these choices
22. In contrast to marketing research problems, management decision problems are:
a.
action oriented
b.
pervasive
c.
narrower in scope
d.
synergistic
e.
information oriented
23. Managers must combine specific pieces of information needed to identify the marketing research
problem. Their _____ is to provide insightful decision-making information.
a.
company-correlated goal
b.
autonomous task
c.
dichotomous goal
d.
marketing research objective
e.
field service objective
24. Data previously collected for purposes other than the one at hand are an important source of
information as the researcher defines the problem. These data are called _____ data.
a.
single-source
b.
secondary
c.
primary
d.
consensual
e.
convenience
25. Post Properties is a company that manages apartments in various communities. It is concerned with a
glut of apartments in Atlanta, Orlando, and Dallas Its market researcher begins by examining the rental
markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and
ownership—all information that was on hand and did not require any new research to locate. The
market researcher looked at:
a.
a closed study
b.
secondary data
c.
primary data
d.
a statistical analysis
e.
priority databases
26. Trade groups, commercial publications, and government departments can be used as sources of:
a.
secondary data
b.
consensual information
c.
primary data
d.
artificial intelligence
e.
marketing audits
27. While many economic indicators have been negative during the first half of 2009, the Wall Street
Journal recently reported that U.S. retail sales were actually up in April. In fact, the performance of 61
percent of the retailers in the study topped analysts’ expectations. If Costco used this report as factor in
their expansion plans they would be using _____ data.
a.
secondary
b.
primary
c.
dichotomous
d.
convenience
e.
observation
28. All of the following are examples of secondary data EXCEPT:
a.
a physical count of the number of cars passing through an intersection to determine the
need for a traffic signal
b.
a census report on the number of people who are native to a community
c.
the creation of a customer database
d.
a collection of trade journal articles about the future of a particular industry
e.
a newspaper story describing the lifestyle of the average Internet user
29. When assessing the quality of secondary data, it is:
a.
not necessary to know why the data were collected in the first place
b.
important to be able to have easy access to the data
c.
important to know the purpose for which the data were originally collected
d.
not important to know when the data were collected
e.
imperative to use the same methods and procedures when primary data are collected
30. Radio One is the largest U. S. radio broadcasting company targeting Black Americans today. Radio
One staffers are constantly reviewing secondary information looking for any emerging trends in their
target market. Potential disadvantages of this research approach include:
a.
the questionable quality of the data
b.
the high cost of collecting secondary data
c.
he length of time it takes to collect secondary data
d.
interviewer bias during the collection process
e.
the potential for sampling error
31. A _____ is a company that acquires, catalogs, reformats, segments, and resells reports already
published by marketing research firms.
a.
syndicated vendor
b.
research directory
c.
marketing research aggregator
d.
secondary data provider
e.
marketing research compiler
32. Which of the following is a major marketing research aggregator?
a.
the U.S. government
b.
Mindbranch.com
c.
Nielsen
d.
American Marketing Association
e.
All of the above.
33. _____ specifies the research questions to be answered, how and when the data will be gathered, and
how the data will be analyzed.
a.
A secondary data use plan
b.
The research collaborative plan
c.
An autonomous director
d.
The research design
e.
The sampling plan
34. The research design specifies:
a.
follow-up procedures for the research
b.
the information that will be found
c.
how the final report will be written
d.
how the information gathered will be used to predict external environmental changes
e.
the research questions to be answered
35. Information collected for the first time for the purpose of solving a particular problem under
investigation is called _____ data.
a.
primary
b.
secondary
c.
dichotomous
d.
observation
e.
convenience
36. When a university began thinking about offering more online degrees it used primary data to get
potential students’ attitudes and intentions. What is the most likely reason for using primary data?
a.
this information was already freely available to all interested parties
b.
the value of the research is unrelated to sample size
c.
the information can be collected quickly and at low cost
d.
the information will fit the university’s needs exactly since it will be collected specifically
for this study
e.
it will benchmark consumers’ interest in grading equipment
37. Community Trust Bank management decided to design a new product and promotion to appeal to
small to medium-sized businesses. A researcher conducted a series of focus groups with business
owners to find out more about what they wanted in bank services. With the focus groups Community
Trust was collecting _____ data.
a.
primary
b.
ethnographic
c.
consensual
d.
secondary
e.
collaborative
38. Levi Strauss recently introduced its new Totally Slimming jeans. The idea for the jeans came from a
group session conducted last August in which a group of moms made it clear they were tired of
low-rise styles. Instead they wanted jeans that were comfortable while covering-up problem areas, and
showing off their figures. Levi’s used this _____ data as the basis for designing this new line of jeans.
a.
primary
b.
secondary
c.
dichotomous
d.
convenience
e.
ethnographic
39. When Wilson, a manufacturer of tennis racquets, sent a team of researchers, designers, and tennis pros
out to visit with 40 women tennis players of various abilities in locations from California to Florida to
find out what women players want in a racquet, what kind of research were they conducting?
a.
Heuristic
b.
Primary
c.
Cohesive
d.
Random
e.
Secondary
40. What is the chief advantage of primary data?
a.
Low cost compared to secondary data
b.
Answers specific research questions that secondary data cannot answer
c.
Availability to any interested party for use
d.
Accessibility through computerized databases
e.
Avoiding interviewer biases
41. Gathering data on two different projects using one questionnaire is called:
a.
leap-frogging
b.
dovetailing
c.
double-dipping
d.
phishing
e.
piggybacking
42. Your supervisor has instructed you to conduct a marketing research effort that will determine how
your company’s business customer demographics have changed. You have also been instructed to use
primary data. You will:
a.
gather data from Standard & Poor’s General Information File
b.
develop a mail survey to study your primary market
c.
employ studies done by the Federal Trade Commission
d.
make sure you locate Internet information by using a search engine
e.
ask the National Industrial Conference Board for its latest study
43. Research done by ShopLocal.com found that Americans today are concerned enough about sustaining
the environment that they are willing to spend more. Suppose that to cut the cost of the research,
ShopLocal.com included a second study asking consumers about their preferences in the upcoming
presidential elections. This research would be an example of:
a.
a dual-purpose analysis
b.
a piggyback study
c.
a Siamese twin project
d.
a two-for-one integrative study
e.
dual experimentation
44. The most popular method for gathering primary data is _____, in which a researcher interacts with
people to obtain facts, opinions, and attitudes.
a.
heuristic oriented
b.
survey research
c.
experiments
d.
observation research
e.
single-source research
45. In-home personal interviews:
a.
offer high-quality data at high cost
b.
offer the ability to obtain high-quality data at low cost
c.
are becoming increasingly more popular
d.
are less expensive than mall intercepts
e.
offer information of moderate quality, but at a low cost
46. Which of the following forms of survey research costs the LEAST?
a.
mall intercept interviews
b.
focus groups
c.
in-home personal interviews
d.
mail panel surveys
e.
executive interviews
47. A _____ is a specially designed phone room used to conduct telephone interviewing.
a.
controlled-feedback facility (CFF)
b.
collaboratively located communications (CLC) center
c.
multi-interviewer location site
d.
central-location telephone (CLT) facility
e.
telephone outsourcing center
48. Which type of survey research method involves interviewing people in the common areas of shopping
malls?
a.
telephone interviews
b.
panel surveys
c.
mall intercept
d.
centralized interviews
e.
interactive research
49. A major limitation of the mall intercept interview is:
a.
the difficulty of measuring attitudes and opinions
b.
the need to interview people standing up
c.
its high cost relative to in-home interviews
d.
the difficulty of demonstrating new products
e.
the difficulty of obtaining a representative sample of the population of interest
50. A furniture manufacturer wants to test how consumers will respond to furniture upholstered in fabric
made from recycled plastic by having consumers feel and respond to the fabric. Which form of survey
would allow it to do this?
a.
Telephone interview
b.
Mail questionnaire
c.
Mall intercept
d.
Observation study
e.
Laboratory test
51. Computer-assisted personal interviewing and computer-assisted self-interviewing are computerized
techniques for conducting:
a.
CLT interviews
b.
mall intercept interviews
c.
e-mail interviews
d.
in-home interviews
e.
focus groups
52. Which of the following is an interviewing method in which the interviewer reads the questions from a
computer screen and enters the respondent’s data directly into the computer?
a.
Central-location interviewing facility
b.
Computer-assisted personal interviewing
c.
Computer-assisted self-interviewing
d.
Direct-entry interviewing
e.
Computer-mediated interviewing
53. Which of the following is an interviewing method in which a mall interviewer intercepts and directs
willing respondents to nearby computers where the respondent reads questions off a computer screen
and directly keys his or her answers into a computer?
a.
Central-location interviewing
b.
Computer-assisted personal interviewing
c.
Computer-assisted self-interviewing
d.
Primary interviewing
e.
Secondary interviewing
54. Telephone interviews offer:
a.
speed in gathering data
b.
a potential for reaching all households
c.
few nonresponses
d.
the ability to collect large amounts of complex data
e.
the lowest-cost method for obtaining data
55. The office of lieutenant governor was vacated, and a special election was called to fill the office. When
the head of the state’s Department of Education decided she might run for the office, she was unsure
how running for this office could affect her long-term plans for running for the office of U.S. senator.
She has hired a research company to obtain survey data from voters in the state. Given that she must
make a decision in less than three weeks, the research company should use:
a.
a telephone survey
b.
focus group interviews
c.
personal interview surveys
d.
a mail survey
e.
a passive people meter
56. Low response rate is a problem commonly associated with: