Chapter 20: Managing Marketing Research
Multiple Choice
1. Which of the following is not a key factor in the effective use of marketing
research information?
a. perceived credibility of the report by users
b. perceived usefulness of the report by users
c. degree of client/researcher interaction
d. perceived credibility of the user of the report
e. All of the above are key factors in the effective use of marketing research
information.
2. Which of the following is a reason marketing research information may not be
used effectively?
a. Managers in the same business for a long time think they know customers’
markets in depth.
b. Some managers are skeptical of new information and see it as a threat to
their authority.
c. Some managers have a pro-innovation bias and are likely to try anything
new.
d. all of the above
e. none of the above
3. Which of the following was perceived as the most important interpersonal factor
between marketing research suppliers and users?
a. perceived integrity of the researcher
b. perceived ability of the researcher
c. amount of client interaction
d. ability of the researcher to interpret the data in a user-friendly manner
e. All of the above are equally important.
4. Research management involves overseeing the development of:
a. communication systems.
b. schedules
c. client profitability
d. all of the above
e. none of the above
5. Which of the following is not a suggestion given for staff development in a
research firm?
a. Foster recognition and accountability.
b. Connect rewards to a business result.
c. Create an environment that encourages perfection.
d. Attract and support people with entrepreneurial attitudes.
e. Provide job autonomy within a certain structure.
6. Captive outsourcing is:
a. when a research firm outsources to a firm in a small, developing country.
b. when a research firm creates a wholly-owned foreign facility for
outsourcing.
c. outsourcing to prisoners held against their will.
d. outsourcing to a third-party provider.
e. the most cost efficient way to hire a market researcher staff.
7. Cost-plus projects are typically found in situations where:
a. the researchers are required to travel.
b. a research firm is recognized as providing high-quality output.
c. a client requires frequent progress reports.
d. a research department of a large corporation conducts a project for another
department.
e. a research firm’s fees fall within the 90th percentile.
8. What is the general rule for selecting a marketing research supplier?
a. Choose the least expensive supplier and, if the project’s needs exceed their
abilities, move to the next supplier.
b. Choose the smallest firm consistent with the scope of the project, as long
as the project is not more than 30% of the supplier’s annual revenues.
c. Choose the vendor that has the best reputation.
d. Choose the smallest firm consistent with the scope of the project, as long
as the project is not more than 15% of the supplier’s annual revenues.
e. There is no general rule.
9. Which of the following is NOT one of the goals of research management?
a. stay on schedule
b. manage client profitability
c. develop staff
d. meet potential new clients
e. build an effective organization
10. The key to good supplier-client relations is ____________.
a. hard work
b. communication
c. a fair price
d. positive results
e. keeping the project on schedule
11. Good procedures for cost control include all of the following except:
a. Systems that accurately capture data collection and other costs associated
with the project on a daily basis.
b. Policies and practices that quickly identify overbudget situations and then
find causes and seek solutions.
c. Daily reporting of costs to the communication liaison.
d. Policies and practices that find and account for underbudget situations.
e. Policies and practices in the research organization that require the liaison
to communicate the budget picture to clients and to senior managers at the
research company.
12. To increase a client’s ROI, a marketing research firm can:
a. invest more in research
b. invest less in research
c. reduce the anticipated dollar value of the decision based on the research
d. invest more in advertising
e. enter a riskier new market
13. Ways of retaining skills staff include:
a. conducting regular performance reviews
b. giving pay raises in spite of below average performance
c. giving staff a variety of work tasks
d. A and B only
e. A and C only
14. The key to staying on the acceptable vendor lists is in the contribution a supplier
makes to the company. This means understanding _______________.
a. The client’s industry
b. The tracking of industry trends
c. Customization of offerings to meet client’s unique needs
d. All of the above
15. The best project manager does all of the following except:
a. Lets the client define all the research objectives and design on his/her own
b. Executes the project flawlessly
c. Monitors the project closely
d. Delivers beyond expectations
e. Provides insights about the findings
16. ___________ is newer knowledge that has the potential to create significant
marketing impact.
a. Innovation
b. Insight
c. A & B
d. Neither A nor B
17. Which of the following are benefits of quantifying the economic value of
research?
a. Increased credibility with senior management and other functional areas
b. Increase focus on the factors in the processes that drive the most economic
value
c. More ammunition in defending the research budget
d. Better prioritization and allocation of research resources
e. All of the above
True/False
18. A major problem with the effective use of marketing research information is that
different marketing managers use and value research information differently.
19. Low involvement by a client with a marketing research supplier may result in the
results of a marketing report not being used.
20. Top management’s support and approval of marketing research has little to do
with how effectively the results of the report are utilized by middle marketing
managers.
21. Outsourcing is becoming a popular way for research firms to cut costs.
22. Employee liability is an important issue when a research supplier outsources to
third-party providers.
23. A 66 percent majority of adults believe, wrongly, that the phrase “margin of
error” includes calculation of errors caused by how the questions are worded.
24. Incidence rate problems increase the amount of time required to complete the
sample of a project, but can also lower the cost of data-collection.
25. Asking a vendor for the academic background and experience of the persons
slated to work on the project is considered unprofessional.
26. Encouraging risk taking among marketing research staff can pay off if the risks
are measured, but employees should also be strongly cautioned.
27. The two most important things a client wants in a vendor are confidentiality and
honesty.
28 Providing the firm’s full financial information to even senior level employees is
rarely, if ever, advisable.
29. Asking a client for their budget on a project helps the research firm to learn what
the client has in mind.
30. To get the attention of senior management, researchers must move beyond
crunching numbers to analyzing the information and providing results.
31. If a marketing research firm plans to subcontract any part of a project, it’s better
not to give this information to the client.
32. By reducing the organizational distance between the client and staff members, it
is easier for them to appreciate the client’s situation and focus on serving his or
her needs.
33. The least important objective of research management is to ensure the quality or
integrity of the data produced by the research process.
34. Time management is important in marketing research because clients often have a
specified time schedule that they must meet.
Essay Questions
35. Describe CRI’s Client Profitability Analysis and how it is used in their business.
36. Imagine you are responsible for your research department budget. What steps
would you take to make sure the funds are allocated wisely?
37. The text lists 10 things that clients want from the marketing research supplier.
However, the discussion is expanded to include “Making Difficult Clients
Happy.” Summarize what it takes to “Make Difficult Clients Happy.”
38. What is a recent trend with regard to outsourcing versus insourcing marketing
research services?
39. In the context of moving marketing research more into a decision making role,
rather than purely a staff/support function, define the following 3 terms:
a) Insight
b) Innovation
c) Creativity
