Mkg Research Ch 4 - marketing PDF

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Marketing Research: An Applied Orientation, 6e (Malhotra) Chapter 4 Exploratory Research Design: Secondary Data 1) Secondary data are originated by a researcher for the specific purpose of addressing the problem at hand. Answer: FALSE Diff: 1 Page Ref: 100 2) Primary data are data that have already been collected for purposes other than the problem at hand. Answer: FALSE Diff: 1 Page Ref: 100 AACSB: Analytic Skills LO : 1 3) As compared to primary data, secondary data are collected rapidly and easily, at a relatively low cost, and in a short time. Answer: TRUE Diff: 1 Page Ref: 100 AACSB: Reflective Thinking LO : 1 4) Examination of available primary data is a prerequisite to the collection of secondary data. Answer: FALSE Diff: 2 Page Ref: 101 LO : 1 5) Secondary data can help you develop an approach to the problem, answer certain research questions and test some hypotheses, and interpret primary data more insightfully. Answer: TRUE Diff: 2 Page Ref: 101 LO : 2 6) It is easy to evaluate the accuracy of secondary data because the researcher did participate in the research. Answer: FALSE Diff: 1 Page Ref: 101-104 LO : 3 7) One of the problems when evaluating secondary data is that the data may be updated too frequently for the purpose of the problem at hand. Answer: FALSE Diff: 1 Page Ref: 101-104 LO : 3

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8) Data collected with a specific objective in mind is always appropriate in another situation. Answer: FALSE Diff: 2 Page Ref: 101-104 AACSB: Analytic Skills LO : 3 9) Secondary data may be measured in units that may not be appropriate for the current problem. Answer: TRUE Diff: 2 Page Ref: 101-104 AACSB: Analytic Skills LO : 3 10) It is not possible to reconfigure the available data, for example, convert the units of measurements, so that the resulting data are more useful to the problem at hand. Answer: FALSE Diff: 3 Page Ref: 101-104 AACSB: Analytic Skills LO : 3 11) Data published anonymously or in a form that attempts to hide the details of the data collection methodology and process should be viewed with suspicion. Answer: TRUE Diff: 2 Page Ref: 101-104 AACSB: Analytic Skills LO : 3 12) Secondary data may be classified as either internal or extant. Answer: FALSE Diff: 1 Page Ref: 105 LO : 4 13) Primary data should be the starting point in the search for external data. Answer: FALSE Diff: 1 Page Ref: 105 AACSB: Reflective Thinking LO : 4 14) External data are those generated within the organization for which the research is being conducted. Answer: FALSE Diff: 1 Page Ref: 105 LO : 4 15) Before collecting external secondary data, it is useful to analyze internal secondary data. Answer: TRUE Diff: 1 Page Ref: 105 AACSB: Reflective Thinking LO : 4 16) Chrysler's Personal Information Centers collect data from car owners on all aspects of buying a car. These PICs give the company the ability to engage in customized marketing. Chrysler is using internal secondary data in its database marketing efforts. Answer: TRUE 2 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Diff: 2 Page Ref: 107 AACSB: Reflective Thinking LO : 4 17) Secondary internal data have two significant advantages. They are easily available and inexpensive. Answer: TRUE Diff: 1 Page Ref: 106 AACSB: Reflective Thinking LO : 4 18) Secondary internal sources of data are often not fully exploited by organizations. Answer: TRUE Diff: 2 Page Ref: 106 LO : 4 19) Private sources update census data at a detailed geographic level for between-census years. Answer: TRUE Diff: 2 Page Ref: 110 LO : 4 20) Directory databases provide information on individuals, organizations, and services. Answer: TRUE Diff: 2 Page Ref: 109 LO : 4 21) Syndicated sources, also referred to as syndicated services, are companies that collect and sell common pools of data of known commercial value, designed to serve information needs shared by a number of clients. Answer: TRUE Diff: 2 Page Ref: 113 LO : 5 22) Syndicated sources collect data for marketing research problems specific to individual clients. Answer: FALSE Diff: 3 Page Ref: 113 LO : 5

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23) Syndicated services data are not collected for the purpose of marketing research problems specific to individual clients. Answer: TRUE Diff: 3 Page Ref: 113 LO : 5 24) Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions). Answer: TRUE Diff: 2 Page Ref: 113 LO : 5 25) When institutions are the unit of measurement, the data may be obtained from retailers, wholesalers, or households. Answer: FALSE Diff: 3 Page Ref: 113 LO : 5 26) A lifestyle may be defined as a distinctive pattern of living that is described by the activities people engage in, the interests they have, and the opinions they hold of themselves and the world around them (AIOs). Answer: TRUE Diff: 2 Page Ref: 114 LO : 5 27) Surveys are the primary means of obtaining information about consumers' motives, attitudes, and preferences. Answer: TRUE Diff: 2 Page Ref: 115 LO : 5 28) The distinguishing feature of purchase and media panels is that the respondents record specific behaviors as they occur. Answer: TRUE Diff: 2 Page Ref: 115 AACSB: Reflective Thinking LO : 5 29) Scanner data is obtained by passing merchandise over a laser scanner that reads the UPC code from the packages. Answer: TRUE Diff: 1 Page Ref: 115 AACSB: Use of IT LO : 5

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30) Scanner data have an obvious disadvantage over surveys and purchase panels, because they reflect purchasing behavior that is not subject to interviewing, recording, memory, or expert biases. Answer: FALSE Diff: 2 Page Ref: 115 AACSB: Use of IT LO : 5 31) An advantage of scanner data is that in-store variables like pricing, promotions, and displays are part of the data set. Answer: TRUE Diff: 2 Page Ref: 115 AACSB: Use of IT LO : 5 32) Audits can help consumer product firms determine the size of the total market and distribution of sales by type of outlet and by different regions. Answer: TRUE Diff: 2 Page Ref: 115 AACSB: Reflective Thinking LO : 5 33) Financial, operating, and employment data are also collected by industry services' syndicated research firms for one in 10 North American Industry Classification System (NAICS) industrial categories. Answer: FALSE Diff: 3 Page Ref: 124 AACSB: Reflective Thinking LO : 5 34) The range and sources of syndicated data available for industrial goods firms are more limited than those available to consumer goods firms. Answer: TRUE Diff: 2 Page Ref: 124 AACSB: Reflective Thinking LO : 5 35) Maps that solve marketing problems are called thematic maps. Answer: TRUE Diff: 3 Page Ref: 125-126 LO : 7 36) Ethical issues also arise if the users of secondary data are unduly critical of the data that do not support their interests and viewpoints. Answer: TRUE Diff: 2 Page Ref: 128 AACSB: Ethical Reasoning LO : 9 37) As compared to primary data, secondary data are collected ________. A) rapidly and easily B) at a relatively low cost C) in a short time D) all of the above 5 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Answer: D Diff: 2 LO : 1

Page Ref: 100

38) The ________ for primary data is very involved and the ________ is high. A) collection purpose; collection time B) collection process; collection cost C) collection process; collection purpose D) collection cost; collection time Answer: B Diff: 2 Page Ref: 100 LO : 1 39) Which of the following is not a disadvantage of secondary data? A) The objectives, nature, and methods used to collect the secondary data may not be appropriate to the present situation. B) Secondary data may be lacking in accuracy. C) Secondary data may be expensive and time consuming. D) Secondary data may not be completely current or dependable. Answer: C Diff: 2 Page Ref: 101 AACSB: Reflective Thinking LO : 2 40) Which of the following statements refer to the currency criteria when evaluating secondary data? A) Data should be reliable and generalizable to the problem at hand. B) Syndicated firms periodically update census data. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible. D) Assess accuracy by comparing data from different sources. Answer: B Diff: 2 Page Ref: 102 AACSB: Analytic Skills LO : 3 41) Which of the following statements refer to the objective criteria when evaluating secondary data? A) Data should be reliable and generalizable to the problem at hand. B) Syndicated firms periodically update census data. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible. D) Assess accuracy by comparing data from different sources. Answer: C Diff: 1 Page Ref: 102 AACSB: Analytic Skills LO : 3 42) Based on the criteria for evaluating secondary data shown in Table 4.2 in the text, the data collected by Nielsen Media Research may be suspect because of all of the following criteria except ________. A) specification/methodology B) error/accuracy C) objective D) dependability 6 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Answer: C Diff: 2 Page Ref: 102 AACSB: Analytic Skills LO : 3 43) Errors in the approach, research design, sampling, data collection, analysis, and reporting stages of the project refer to the ________ criteria for evaluating secondary data. A) nature B) objective C) error/accuracy D) currency Answer: C Diff: 1 Page Ref: 102 AACSB: Analytic Skills LO : 3 44) Which of the following statements is not true about the currency of secondary data? A) The time lag between data collection and publication may be long. B) The value of secondary data is diminished as it becomes dated. C) The data may not be updated frequently enough for the problem at hand. D) All of the above are correct. Answer: D Diff: 1 Page Ref: 103 AACSB: Analytic Skills LO : 3 45) When evaluating secondary data, the ________ criteria asks the question of "why the data were collected in the first place." A) nature B) objective C) error/accuracy D) currency Answer: B Diff: 2 Page Ref: 103 AACSB: Analytic Skills LO : 3 46) If the key variables have not been defined or are defined in a manner inconsistent with the researcher's definition, then the usefulness of the data is limited. This statement refers to the ________ criteria for evaluating secondary data. A) nature B) objective C) error/accuracy D) currency Answer: A Diff: 2 Page Ref: 104 AACSB: Analytic Skills LO : 3 47) You are reviewing secondary data to help with a project concerning consumer preferences for television programs based on viewer income. Which of the following statements would not be of concern when considering the nature criteria for evaluating secondary data? 7 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

A) The relationships examined should be taken into account. B) Secondary data may be measured in units that may not be appropriate for the current problem. C) The researcher must determine if the data are accurate enough for the purpose of the present study. D) It is possible to reconfigure the available data so that the resulting data are more useful to the problem at hand. Answer: C Diff: 3 Page Ref: 102 AACSB: Analytic Skills LO : 3 48) An overall indication of the dependability of data may be obtained by examining the ________, credibility, reputation, and ________ of the source. A) accuracy; trustworthiness B) trustworthiness; expertise C) expertise; accuracy D) None of the above is correct. Answer: B Diff: 3 Page Ref: 104 AACSB: Analytic Skills LO : 3 49) Which of the following classifications of secondary data is not a classification for external secondary data (Figure 4.1 in the text)? A) published materials B) computerized databases C) ready-to-use D) syndicated services Answer: C Diff: 2 Page Ref: 105 LO : 4 50) Creating a marketing database involves all of the following steps except ________. A) transferring raw sales information to a microcomputer B) enhancing consumer purchase information by overlaying it with demographic and psychographic information C) analyzing information in terms of a customer's activity over the life of the business relationship D) none of the above Answer: D Diff: 3 Page Ref: 106-107 AACSB: Reflective Thinking LO : 4 51) The CRM system used by Chrysler is an example of ________. A) directory databases B) database marketing C) audits D) none of the above Answer: B Diff: 2 Page Ref: 107 AACSB: Reflective Thinking LO : 4 8 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

52) Caterpillar needed to know what truck fleets should test their two new engines; how they could get a marketing strategy that could be measured; and how to adjust for the coming downturn in sales. To answer these questions, they gave their salesforce laptops and paid them to enter customer information related to each sale they made. Caterpillar analyzed the newly acquired customer data and developed strategies to address their marketing questions. Caterpillar utilized ________. A) secondary marketing B) external marketing C) database marketing D) internal marketing Answer: C Diff: 2 Page Ref: 107-108 AACSB: Reflective Thinking LO : 4 53) ________ are an excellent source of standard or recurring information. A) Directories B) Indexes C) Guides D) Statistical published data Answer: C Diff: 2 Page Ref: 109 LO : 4 54) Published external secondary data sources may be broadly classified as ________ or ________ sources (Figure 4.2 in the text). A) public business; government B) general business; government C) general business; federal D) public business; federal Answer: B Diff: 2 Page Ref: 108 LO : 4 55) ________ are helpful for identifying individuals or organizations that collect specific data. A) Directories B) Indexes C) Guides D) Statistical published data Answer: A Diff: 2 Page Ref: 109 LO : 4 56) It is possible to locate information on a particular topic in several different publications by using ________. A) directories B) indexes C) guides D) statistical published data Answer: B Diff: 2 Page Ref: 109 LO : 4 9 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

57) Examples of other government publications published by the federal government include all of the following except ________. A) Periodical Abstract B) Business Conditions Digest C) Statistical Abstract of the United States D) Survey of Current Business Answer: A Diff: 3 Page Ref: 110 LO : 4 58) ________ are databases stored in computers that require a telecommunications network to access. A) Offline databases B) Bibliographic databases C) Online databases D) Special purpose databases Answer: C Diff: 2 Page Ref: 111 LO : 4 59) You are researching secondary data on the shopping habits of households for your project. A marketing research firm that had done research in the area has agreed to allow you to dial into their mainframe computer to access the data. You will be accessing a(n) ________. A) online database B) special purpose database C) offline database D) customer database Answer: A Diff: 3 Page Ref: 111 AACSB: Reflective Thinking LO : 4 60) You are researching secondary data on the shopping habits of households for your project. You found a data source available via CD-ROM at the library. You are about to check out a(n) ________. A) online database B) internet database C) offline database D) customer database Answer: C Diff: 2 Page Ref: 111 AACSB: Reflective Thinking LO : 4 61) ________ are databases composed of citations to articles in journals, magazines, newspapers, marketing research studies, technical reports, government documents, and the like. A) Offline databases B) Bibliographic databases C) Online databases D) Internet databases Answer: B Diff: 2 Page Ref: 112 LO : 4 10 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

62) InfoUSA (www.infousa.com) is a leading provider of sales and marketing support data. InfoUSA provides data via a ________. A) offline database B) bibliographic database C) online database D) internet database Answer: D Diff: 2 Page Ref: 112 LO : 4 63) ________ databases provide information on individuals, organizations and services. A) Special purpose B) Bibliographic C) Directory D) Numeric Answer: C Diff: 2 Page Ref: 112 LO : 4 64) Which of the following is a disadvantage of audit services (Table 4.3 in the text)? A) interviewer errors; respondent errors B) data is lacking in terms of content, quantity, and quality C) data may not be representative; quality of data limited D) coverage may be incomplete; matching of data on the competitive activity may be difficult Answer: D Diff: 3 Page Ref: 115 AACSB: Reflective Thinking LO : 5 65) Which of the following is a disadvantage of surveys (Table 4.3 in the text)? A) interviewer errors; respondent errors B) data is lacking in terms of content, quantity, and quality C) data may not be representative; quality of data limited D) coverage may be incomplete; matching of data on the competitive activity may be difficult Answer: A Diff: 3 Page Ref: 115 AACSB: Reflective Thinking LO : 5 66) Which of the following is a characteristic of purchase panels (Table 4.3 in the text)? A) household purchases recorded through electronic scanners in supermarkets B) households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur C) verification of product movement by examining physical records or performing inventory analysis D) data banks on industrial establishment created through direct inquiries of companies, clipping services, and corporate reports Answer: B 67) Which of the following is a characteristic of audit services (Table 4.3 in the text)? A) household purchases recorded through electronic scanners in supermarkets B) households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur 11 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

C) verification of product movement by examining physical records or performing inventory analysis D) data banks on industrial establishment created through direct inquiries of companies, clipping services, and corporate reports Answer: C Diff: 2 Page Ref: 115 LO : 5 68) Surveys can be used for which of the following purposes? A) to evaluate advertising B) to examine purchase and consumption behavior C) for market segmentation D) all of the above Answer: D Diff: 1 Page Ref: 117 LO : 5 69) Gallup and Robinson Magazine Impact Research Service (MIRS) test ads using an at-home inmagazine context among widely dispersed samples. Test ads may naturally appear in the magazine or are inserted as tip-ins. It provides strong, validated measures of recall, persuasion, and ad reaction with responsive scheduling. The MIRS is an example of surveys being used ________. A) to evaluate advertising B) to examine purchase and consumption behavior C) for market segmentation D) all of the above Answer: A Diff: 1 Page Ref: 116 AACSB: Reflective Thinking LO : 5 70) A data gathering technique that is comprised of samples of respondents whose television viewing behavior is automatically recorded by electronic devices, supplementing the purchase information recorded online or in a diary is referred to as ________. A) scanner diary panels/cable TV B) scanner panels C) purchase panels D) media panels Answer: D Diff: 2 Page Ref: 118 LO : 5 71) According to your text, volume tracking data and scanner panels with cable TV are sources of scanner data. Which of the following is also a type of scanner data? A) grocery panels B) scanner panels C) Both A and B are correct. D) none of the above Answer: B Diff: 3 Page Ref: 121 AACSB: Use of IT LO : 5 72) Scanner data where panel members are identified by an ID card allowing each panel member's 12 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

purchases to be stored with respect to the individual shopper are referred to as ________. A) scanner panels with cable TV B) volume tr...