Kotler_Chapter4
Chapter 4 Managing Marketing Information to Gain Customer Insights 1) Despite the data glut that marketing managers receive, they frequently complain that they lack ________.
A) enough information of the right kind
B) timely information
C) accurate information
D) reliable information
E) valid information
Answer: A
Diff: 2 Page Ref: 100
AACSB: Communication
Skill: Concept
Objective: 4-1
2) A marketing information system (MIS) consists of people and procedures to assess information needs, ________, and help decision makers analyze and use the information.
A) experiment to develop information
B) test market the information
C) develop the needed information
D) critique the needed information
E) question the needed information
Answer: C
Diff: 1 Page Ref: 101
AACSB: Communication
Skill: Concept
Objective: 4-1
3) A good MIS balances the information users would ________ against what they really ________ and what is ________.
A) need; like; feasible
B) like; can afford; needed
C) like to have; need; feasible to offer
D) need; can afford; useful
E) use; have to use; available
Answer: C
Diff: 3 Page Ref: 102
Skill: Concept
Objective: 4-2
4) Marketers must weigh carefully the costs of additional information against the ________ resulting from it.
A) organization
B) benefits
C) creativity
D) ethical issues
E) cost
Answer: B
Diff: 1 Page Ref: 102
Skill: Concept
Objective: 4-2
5) Four common sources of internal data include the accounting department, operations, the sales force, and the ________.
A) owners
B) stockholders
C) marketing department
D) competition
E) Web
Answer: C
Diff: 2 Page Ref: 103
AACSB: Communication
Skill: Concept
Objective: 4-2
6) ________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
A) Marketing data
B) Marketing intelligence
C) Sales management
D) Customer intelligence
E) Competitive intelligence
Answer: B
Diff: 1 Page Ref: 103
Skill: Concept
Objective: 4-2
7) Which of the following is NOT considered a source of marketing intelligence?
A) suppliers
B) resellers
C) key customers
D) causal research
E) activities of competitors
Answer: D
Diff: 2 Page Ref: 104
Skill: Concept
Objective: 4-2
8) Which of the following is NOT a potential source for marketing intelligence?
A) looking through competitors' garbage
B) purchasing competitors' products
C) monitoring competitors' sales
D) collecting primary data
E) talking with purchasing agents
Answer: D
Diff: 2 Page Ref: 104
Skill: Concept
Objective: 4-2
9) What is the first step in the marketing research process?
A) developing a marketing information system
B) defining the problem and research objectives
C) developing the research plan for collecting information
D) implementing the research plan
E) hiring an outside research specialist
Answer: B
Diff: 2 Page Ref: 105
Skill: Concept
Objective: 4-3
10) Which step in the four-step marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings?
A) developing the research budget
B) choosing the research agency
C) choosing the research method
D) developing the research plan
E) comparing and contrasting primary and secondary data
Answer: D
Diff: 2 Page Ref: 105
Skill: Concept
Objective: 4-3
11) Managers often start with ________ research and later follow with
________ research.
A) exploratory; causal
B) descriptive; causal
C) descriptive; exploratory
D) causal; descriptive
E) causal; exploratory
Answer: A
Diff: 3 Page Ref: 106
Skill: Concept
Objective: 4-3
12) Your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. He seems to be having problems with ________, which is often the hardest step to take.
A) developing the research plan
B) determining a research approach
C) defining the problem and research objectives
D) selecting a research agency
E) C and D
Answer: C
Diff: 2 Page Ref: 106
Skill: Concept
Objective: 4-3
13) Secondary data consists of information ________.
A) that already exists somewhere but is outdated
B) that does not currently exist in an organized form
C) that already exists but was collected for a different purpose
D) used by competitors
E) that researchers can only obtain through surveys and observation Answer: C
Diff: 1 Page Ref: 107
Skill: Concept
Objective: 4-3
14) Information collected from online databases is an example of ________ data.
A) primary
B) secondary
C) observational
D) experimental
E) ethnographic
Answer: B
Diff: 2 Page Ref: 107
AACSB: Use of IT
Skill: Concept
Objective: 4-3
15) Which form of data below can usually be obtained more quickly and at a lower cost than the others?
A) primary
B) survey research
C) experimental research
D) secondary
E) observational research
Answer: D
Diff: 2 Page Ref: 108
Skill: Concept
Objective: 4-3
16) Secondary data are ________.
A) collected mostly via surveys
B) expensive to obtain
C) never purchased from outside suppliers
D) always necessary to support primary data
E) not always very usable
Answer: E
Diff: 2 Page Ref: 109
Skill: Concept
Objective: 4-3
17) For primary data to be useful to marketers, it must be relevant, current, unbiased, and ________.
A) complete
B) accurate
C) inexpensive
D) collected before secondary data
E) experimental
Answer: B
Diff: 2 Page Ref: 109
Skill: Concept
Objective: 4-3
18) Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be difficult to ________.
A) find enough secondary data to support the findings
B) orchestrate cooperation among participants
C) encourage honest responses to questions
D) generalize from the results
E) find a representative sample
Answer: D
Diff: 2 Page Ref: 112
Skill: Concept
Objective: 4-3
19) Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.
A) group
B) target group
C) population
D) sample
E) audience
Answer: D
Diff: 1 Page Ref: 115
Skill: Concept
Objective: 4-3
20) The most common research instrument used is the ________.
A) mechanical device
B) live interviewer
C) questionnaire
D) focus group
E) people meter
Answer: C
Diff: 2 Page Ref: 118
Skill: Concept
Objective: 4-3
21) In marketing research, the ________ phase is generally the most expensive and most subject to error.
A) exploratory research
B) planning
C) interpreting the findings
D) reporting the findings
E) data collection
Answer: E
Diff: 2 Page Ref: 119
Skill: Concept
Objective: 4-3
22) AMF Research Group must guard against problems during the implementation phase of marketing research for its clients. Which of the following is NOT a problem that should be anticipated during this phase?
A) contacting respondents
B) respondents who give biased answers
C) interviewers who take shortcuts
D) interpreting and reporting the findings
E) interviewers who make mistakes
Answer: D
Diff: 2 Page Ref: 119
Skill: Concept
Objective: 4-3
23) Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try?
A) customer satisfaction management
B) more sophisticated hardware
C) customer relationship management
D) decreased marketing intelligence
E) a marketing information system
Answer: C
Diff: 1 Page Ref: 120
Skill: Concept
Objective: 4-4
24) Which of the following is true about customer relationship management (CRM)?
A) It relies on information produced through primary research.
B) Its aim is to maximize profit margins.
C) Its aim is to increase the efficiency of each customer touchpoint.
D) Its aim is to maximize customer loyalty.
E) Most companies who first implemented CRM have greatly benefited from the results.
Answer: D
Diff: 2 Page Ref: 120
AACSB: Communication
Skill: Concept
Objective: 4-4
25) What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more?
A) an intranet
B) an extranet
C) the Internet
D) marketing research
E) marketing intelligence
Answer: A
Diff: 2 Page Ref: 122
AACSB: Use of IT
Skill: Concept
Objective: 4-3
26) Marketing information is only valuable when it is used to ________.
A) simplify management's job
B) identify a target market
C) please shareholders
D) increase efficiencies in the supply chain
E) make better marketing decisions
Answer: E
Diff: 2 Page Ref: 122
Skill: Concept
Objective: 4-4
27) Small organizations can obtain, with minimal effort, most of which type of data available to large businesses?
A) observational
B) experimental
C) touch point
D) primary
E) secondary
Answer: E
Diff: 2 Page Ref: 123
Skill: Concept
Objective: 4-5
28) The availability of which of the following is most problematic in international marketing research?
A) primary data
B) research specialists
C) secondary data
D) intelligence limitations
E) consumers willing to answer survey questions
Answer: C
Diff: 2 Page Ref: 124
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 4-5
29) An effective MIS assesses information needs, develops needed information, and helps decision makers use the information.
Answer: TRUE
Diff: 1 Page Ref: 101
AACSB: Communication
Skill: Concept
Objective: 4-1
30) Too much marketing information can be as harmful as too little. Answer: TRUE
Diff: 2 Page Ref: 102
Skill: Concept
Objective: 4-2
31) Your manager asked you to go through three of your competitors' garbage bins to gather marketing intelligence from their discarded paperwork. One of them caught you in the act and has summoned you to court. The judge will most likely rule this to be an illegal activity and fine you and your company. Answer: FALSE
Diff: 3 Page Ref: 104
AACSB: Ethical Reasoning
Skill: Application
Objective: 4-2
32) Because secondary data provide good starting points and often help to define problems and research objectives, most companies do not also need to collect primary data.
Answer: FALSE
Diff: 2 Page Ref: 109
Skill: Concept
Objective: 4-3
33) Ideally, a sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population. Answer: TRUE
Diff: 1 Page Ref: 116
Skill: Concept
Objective: 4-3
34) A researcher who wants to calculate confidence limits for sampling error would use nonprobability samples.
Answer: FALSE
Diff: 3 Page Ref: 116
Skill: Concept
Objective: 4-3
35) Open-ended survey questions are particularly useful in exploratory research.
Answer: TRUE
Diff: 2 Page Ref: 118
AACSB: Communication
Skill: Concept
Objective: 4-3
36) Interpretation of market research data should be the responsibility of the researchers, not the marketing managers.
Answer: FALSE
Diff: 2 Page Ref: 120
Skill: Concept
Objective: 4-3
37) Discuss the makeup and functions of a marketing information system (MIS).
Answer: A typical MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. First, it interacts with information users to assess information needs. Next, it develops needed information from internal company databases, marketing intelligence activities, and marketing research. Finally, it helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships.
Diff: 2 Page Ref: 101-102
AACSB: Communication
Skill: Application
Objective: 4-1