Chapter 1

Introduction to Marketing Research
True/False Questions
1. Marketing research is classified into two areas—problem identification and problem
solving research.
(True, easy, page 3)
2. Procter and Gamble used their Toejam Web site to assist with marketing research
efforts and with the marketing of products to baby boomers.
(False, moderate, page 6)
3. Once a problem or opportunity has been identified, market potential research is
undertaken to arrive at a solution.
(False, moderate, page 8)
4. Problem identification research provides information about the marketing
environment and helps diagnose a problem.
(True, moderate, page 8)
5. The findings of problem solving research are used in making decisions that will solve
specific marketing problems.
(True, moderate, page 8)
6. The task of marketing research is to assess the information needs and provide
management with relevant, accurate, reliable, cheap, and current information.
(False, easy, page 11)
7. In the early 1980s Chrysler stunned the competition with an innovative new product
that eventually was dubbed an automotive “home run” for the company. Marketing
research gave the company the confidence to enter the SUV market, a market that
GM and Ford considered too risky.
(True, easy, page 13)
8. An internal supplier is a marketing research supplier hired by a firm.
(False, easy, page 14)
9. Marketing research suppliers can be classified as internal or external.
(True, easy, page 14)
10. Many internet services companies, such as the Greenline Research Center, Inc., offer
qualitative and quantitative online marketing research for consumer, business-tobusiness, and professional markets.
(True, easy, page 17)


easy. . or international markets that are being researched.11. When conducting international research. moderate. To prepare for a career as a statistician. page 23) 20. International marketing research is much simpler to conduct than domestic research. easy. page 23) 19. easy. page 20) 15. Coding and data entry services are full service companies whose primary service offering is their expertise in converting completed surveys or interviews into a usable database for conducting statistical analysis. The marketing research director for BPAmoco searches for new hires who realize they must adjust their communication to the various departments within the company. . ” (False. . (True. moderate. (True. instead of specialized skills in data analysis. page 23) 2 . easy. They must realize that when the client is the director of sales. you would need a set of general skills. the environment prevailing in the countries. page 21) 18. Field services companies are limited service suppliers that specialize in interviewing or specialize in collecting data through the mail or though personal or telephone interviewing. pages 20-21) 16. easy. (False. (False. moderate. they have to be able to speak “marketingese. moderate. (False.” (True. pages 19-20) 14. Companies that base their business on the Web do not have international marketing problems. page 18) 13. More information can be obtained from MIS than from ad hoc marketing research projects. (False. . page 17) 12. easy. (True. influences the way the six steps of the marketing research process should be performed. DSS differs from MIS in that the DSS is more rigidly structured than the MIS. The sophisticated MIS used by FedEx has enabled FedEx to become the first company to go from “. cultural units. but MIS is limited in the amount and nature of information it provides and the way this information can be used by the decision maker. and to dominate the fast-growing overnight-cargo field. (False. zero to 1 billion in sales in 10 years without the aid of mergers or acquisitions. page 21) 17.

moderate. IBM utilized the RONIN Corporation to conduct a tracking study of its S/390 customers. and low customer satisfaction. The Internet can be used to help find a job in marketing research. page 24) 23. easy. (True. easy. problem identification research d. (True. pages 3-4) 3 . (True. Respondents indicated they had no plans for future equipment acquisitions from IBM. page 26) Multiple Choice Questions 26. page 24) 24. moderate. moderate. problem solving research b. a. page 24) 22. When IBM utilized the RONIN Corporation for its tracking study. Ethical issues arise when the interests of the stakeholders are in conflict and when one or more of the stakeholders are lacking in their responsibilities. a. easy. page 25) 25. Therefore. distribution research c. International marketing research is expected to grow at a faster rate than domestic research. The higher service standards were the result of _____. they found they had low ratings on maintenance service. page 3) 27. moderate. These findings were the result of _____. marketing information systems (a. distribution research c. The Internet is another source of information that feeds into the firm’s marketing information system.21. IBM raised its service standards. (True. problems with maintenance. marketing information systems (c. Further investigation revealed that customer expectations had increased. Most marketing research is conducted for clients representing commercial firms. problem identification research d. (True. problem solving research b.

recording them on videos. These include problem definition. difficult. Marketing information systems (a. used to assist management in decision making (b. Ricipio easily converts hard-copy survey results to on-line data for quick client review. objective d. data preparation and analysis. Which of the following statements is not true about Ricipio. page 7) 31. as defined by the author. page 4) 29. systematic b. b. PortiCo specializes in observing individuals. The marketing research process b. Ricipio hosts live chat sessions for users of certain products. research design formulation. PortiCo tapes the subjects on shopping trips to make sure they buy the products. c. the application service provider NBC used to obtain feedback from its viewers? a. a. and selling the tapes to major clients. a. page 5) 30. Marketing research d. politically biased c. page 9) 4 . Segmentation research c. (c. field work. PortiCo totally immerses itself in the lives of consumers in an effort to document how they make purchase decisions. Which of the following statements is not true about PortiCo Research. a. Marketing Research. b. Ricipio gives the client the ability to view customer feedback the second it is entered on their Web sites. PortiCo utilizes research teams comprised of anthropologists. page 8) 32. difficult. d. moderate. and report generation and presentation. is everything except_____. social psychologists. A decision support system (a. c. Marketing information systems c. Problem solving research d. _____ is undertaken to help identify problems that are perhaps not apparent on the surface and yet exist or are likely to arise in the future.28. developing an approach to the problem. and ethnographers. _____ is defined as a set of six steps that defines the tasks to be accomplished in conducting a marketing research study. the firm used by Lipton to determine people’s attitudes about tea? a. moderate. moderate. d. (d. Problem identification research b. Ricipio aims to capture the true words and emotions of consumers.

difficult. marketing research c. pages 12-13) 5 . c. Consumers have become more affluent and sophisticated. Which of the following is not a reason to need information provided by marketing research? a. marketing variables. easy. The emphasis in marketing is on the identification and satisfaction of _____. All of the above. pages 11-12) 37. a. environment b. d. competitors c. market needs d. marketing variables. a. none of the above (a. easy. all of the above (d. easy. b. Sound management decisions are based on _____. pure judgment (b. page 11) 36. marketing managers need information about _____. customer needs (d. business needs b. marketing information system c.33. environment d. page 11) 35. a. intuition d. Firms have become national and international in scope. marketing information system. Competition has become more intense. page 11) 34. (d. a. other forces in the marketplace d. Marketing managers need the information provided by marketing research for many reasons. marketing goals c. In order to determine customer needs and to implement marketing strategies and programs aimed at satisfying those needs. customers b. easy. gut feeling b. Marketing research helps the marketing manager link the _____with the _____and the customer groups.

The Nielson Index is an example of _____. internet services d. full service. External research suppliers can be classified as _____ and _____. easy. moderate. companies that collect and sell common pools of data designed to serve information needs shared by a number of clients d. b. limited service. The marketing research department’s place in the organizational structure may vary considerably. a. (d. partial service b. a. d. Which of the following statements is(are) true concerning large firms? a. limited service d. page 15) 6 . full service. none of the above (c. internal service suppliers (b. limited service suppliers b. easy. Which of the following is not an example of a full service supplier? a. page 14) 39. analytical services (d. companies that tailor the research procedures to best meet the needs of each client (c. The Nielsen Television Index is a set of information of known commercial value that is provided to multiple clients on a subscription basis. syndicated services b. Firms with in-house research departments never use external research suppliers. syndicated services b. a. difficult. page 15) 42. c. full service suppliers c. moderate. Companies that offer the full range of marketing research activities are _____. customized services c. Many firms maintain in-house marketing research departments. page 14) 41. companies that use standardized procedures to provide marketing research to various clients c. analytical services (a. Both a and c are correct. partial service c. difficult. standardized services d. page 15) 43. companies that specialize in one or a few phases of the marketing research project b. page 14) 40. Syndicated services are _____. a. partial service suppliers d.38. customized services c. offers several branded products under the TeleNation® family. a. page 15) 45. a. companies that tailor the research procedures to best meet the needs of each client (d. Clients are charged based on the number of questions they ask. companies that use standardized procedures to provide marketing research to various clients c. easy. companies that use standardized procedures to provide marketing research to various clients c. Limited service suppliers are _____. easy. TeleNation® is a _____.marketfacts.S. a. easy. TeleNation. One of their products. companies that collect and sell common pools of data designed to serve information needs shared by a number of clients d. companies that collect and sell common pools of data designed to serve information needs shared by a number of clients d. field service b. companies that collect and sell common pools of data designed to serve information needs shared by a number of clients. analytical service (b. companies that specialize in one or a few phases of the marketing research project b. companies that tailor the research procedures to best meet the needs of each client (a. page 17) 47. Market Facts (www. companies that tailor the research procedures to best meet the needs of each client (b. Customized services are _____. is a three-times-a-week multiclient telephone study among households selected at random from the U. population. companies that use standardized procedures to provide marketing research to various clients c.44. page 18) 7 . companies that specialize in one or a few phases of the marketing research project b. a. branded market research product c. Standardized services are _____. easy. data analysis service d. page 17) 46. companies that specialize in one or a few phases of the marketing research project b.

develop criteria for selecting an outside supplier d. MIS c. decision support system d. A _____ is an information system that enables decision makers to interact directly with both databases and analysis models. MIS c. MIS b. all of the above must be considered (d. management information system (MIS). none of the above (a. marketing information system (MIS). decision support system. none of the above (c. MIS. A _____ is a formalized set of procedures for generating. compile a list of prospective suppliers b. a. a. When a firm cannot conduct an entire marketing research project in house. moderate.48. a. The definition of a _____ is similar to marketing research. MIS. easy. a. moderate. marketing information system (MIS). and the _____ user (decision maker). page 20) 51. data base. marketing information system b. management information system c. junior research analyst d. DSS d. page 18) 49. it must select an external supplier for one or more phases of the project. management information system (MIS). moderate. software base. none of the above (a. research analyst (b. The important components of a _____ include hardware and a communication network. realize that the cheapest bid is not always the best bid c. MIS b. page 20) 52. moderate. One of the things that the firm does not need to consider or do when selecting an external research supplier is _____. and distributing pertinent information to marketing decision makers on an ongoing basis. decision support system. page 19) 50. Which one of the following is not an entry-level position? a. DSS d. except that a _____ provides information continuously rather than on the basis of ad hoc research studies. analyzing. There are many entry level marketing research positions available for persons with BBAs or MBAs. operational supervisor b. senior analyst c. DSS. page 21) 8 . storing. model base.

page 21) 54. moderate.53. Which of the following is true about a decision support system? a. d. use of reports c. foreign research b. These stakeholders have certain responsibilities to each other and to the research project. page 23) 56. a source of secondary data c. all of the above (d. The Internet can be useful to marketing researchers. c. moderate. DSS have been further developed to expert systems that utilize artificial intelligence procedures to incorporate expert judgment. multinational research c. DSS can enhance decision-making effectiveness by using “what if” analysis. a and c are correct (d. b. page 24) 57. all of the above (d. cross-cultural research d. easy. a source for data gathering d. International research refers to which of the following types of research? a. Which of the following represents a way in which the Internet is useful to marketing researchers? a. Which of the following is not one of the stakeholders? a. the public d. The information provided by a DSS is rigidly structured and cannot be easily manipulated. page 25) 9 . rigid structure d. Marketing research has often been described as having four stakeholders. all of the above (d. Which of the following is not a characteristic of a decision support system? a. the respondent c. a source of marketing research providers b. structured problems b. the environment (d. moderate. the marketing researcher b. moderate. page 21) 55. According to the author of the text.

com d. page 25) 60. none of the above (c. synthesis c. understanding b. used for communication by researchers and clients easy. used for coordinating and managing the six steps of the marketing research process c. Problem solving research is undertaken to help solve specific marketing problems. and _____ of information related to marketing research. a. page 8) 10 . used to disseminate marketing research results and reports (c. Define and discuss problem identification and problem solving research. and a given marketing research project may combine both types of research. ( www. Subsequent research led to the introduction of two new Linux-driven servers and a Linux-only mainframe computer (problem solving). The tracking study identified potential demand for Linux-driven mainframes (problem identification). Search engines are used to determine what information is available on the Internet. The Internet is very useful in project management. used to code data d. Develop an example showing the relationship between these two types of research. moderate. Problem identification research and problem solving research go hand in hand. moderate. dissemination d. www.58. This was illustrated in the opening IBM example. (b. Which of the items listed below is not a way in which the Internet is used in project management? a. The student should supply his/her own similar b. page 26) Essay Questions 61. Discuss how the two types of research are related. Answer Problem identification research is undertaken to help identify problems that are perhaps not apparent on the surface and yet exist or are likely to exist in the future. The Internet is quickly becoming a useful tool in the identification. page 25) 59. www. collection. www. Choose the item below that would be the least helpful in determining what information is available on the Internet.

the relevant background information. transcription. Step 3: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. and its purpose is to design a study that will test the hypotheses of interest. such as focus groups. Proper selection. supervision. through mail (traditional mail and mail panel surveys with prerecruited households). and evaluation of the field force helps minimize data-collection errors. Conducting exploratory research. This process is guided by discussions with management and industry experts. and verification of data. training. perhaps. Each questionnaire or observation form is inspected or edited and. The data are analyzed to derive information related to the components of the marketing research problem and. provide input to the management decision problem. Step 5: Data Preparation and Analysis Data preparation includes the editing. Problem definition involves discussion with the decision makers. or input directly into the computer. by conducting a survey or an experiment) must be addressed. The issue of how the data should be obtained from the respondents (for example. Number or letter codes are assigned to represent each response to each question in the questionnaire. coding. The data from the questionnaires are transcribed or keypunched onto magnetic tape or disks. or electronically (e-mail or Internet). the researcher should take into account the purpose of the study. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework. and. analysis of secondary data.62. mall intercept. and how it will be used in decision making. analysis of secondary data. or computer-assisted personal interviewing). as in the case of personal interviewing (in-home. 11 . and provide the information needed for decision making. interviews with industry experts. the information needed. corrected. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. and designing appropriate scales to measure them are also a part of the research design. precisely defining the variables. if necessary. It details the procedures necessary for obtaining the required information. some qualitative research. research questions. Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field. Briefly define and discuss the six steps of the marketing research process. and pragmatic considerations. thus. analytical models. from an office by telephone (telephone or computer-assisted telephone interviewing). determine possible answers to the research questions. qualitative research. Answer Step 1: Problem Definition In defining the problem. and hypotheses and identifying the information needed.

This trend can be attributed to better training marketing managers. (difficult. (difficult. Answer  Acquire Internet and computer skills. whereas marketing managers are becoming more involved with research. and graphs to enhance clarity and impact. Answer These roles are changing and marketing researchers are becoming more involved in decision making. pages 10-11. data collection.Step 6: Report Preparation and Presentation The entire project should be documented in a written report that addresses the specific research questions identified. figures. Knowledge of programming languages is an added asset. an oral presentation should be made to management using tables.) 63. Write a short essay detailing what a person or student should do to prepare for a career in marketing research. Creativity and common sense command a premium in marketing research. page 13) 64. and data analysis procedures adopted. Discuss why the roles of marketing managers and marketing researchers are changing.  Think creatively.  Acquire effective written and verbal communication skills.  Take courses in psychology and consumer behavior.  Marketing researchers should be liberally educated so that they can understand the problems confronting managers and address them from a broad perspective. In addition. the research design. The findings should be presented in a comprehensible format so that management can readily use them in the decision-making process. marketing researchers were responsible for assessing information needs and providing the relevant information. (difficult. whereas marketing decisions were made by the managers. describes the approach. Traditionally. and presents the results and the major findings. page 20) 12 . the Internet and other advances in technology. and a shift in the marketing research paradigm where more and more marketing research is being undertaken on an ongoing basis rather than in response to specific marketing problems or opportunities.

5 Marketing Information System  Structured Problems  Use of Reports  Rigid Structure  Information Displaying Restricted  Can Improve Decision Making by Clarifying Raw Data Decision Support Systems  Unstructured Problems  Use of Models  User-Friendly Interaction  Adaptability  Can Improve Decision Making by Using “What If” Analysis (difficult. Write a short essay explaining the differences between a marketing information system and a decision support system. decision support systems (DSS) enable decision makers to interact directly with databases and analysis models.65. The table below gives the comparison information shown in Figure 1. page 21) 13 . Answer Developed to overcome the limitations of MIS.