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34) According to the text, marketing research has become ________.

A) global
B) real time
C) more integrative with marketing and product development
D) all of the above
Answer: D

35) Marketing Research, as defined by the author, is everything except ________.


A) systematic
B) politically biased
C) objective
D) useful for the purpose of improving decision-making
Answer: B

36) The procedures followed at each stage of marketing research are methodologically sound,
well documented, and, as much as possible, planned in advance. The previous statement defines
the ________ aspect of the definition of marketing research.
A) systematic
B) accuracy
C) identification of information
D) collection of information
Answer: A

37) Each phase of the marketing research process is important. If in the first phase of the process
the problem is identified, what is done after that but before data is collected?
A) Determine the solution to the problem, identify relevant information sources and evaluate
data collection methods
B) Determine what information is needed, identify relevant information sources, and evaluate
data collection methods
C) Determine the solution to the problem, determine what information is needed, and identify
relevant information sources.
D) Determine what information is needed, evaluate data collection methods, and analyze the data
Answer: B

38) ________ 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.
A) Problem identification research
B) Segmentation research
C) Problem solving research
D) Marketing information systems
Answer: A

39) ________ is a type of problem identification research.


A) Distribution research
B) Pricing research
C) Market characteristics research
D) Promotion research
Answer: C
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40) Which of the issues listed below would be addressed using problem-solving research?
A) the need to understand market potential
B) the need to understand current cultural trends
C) the need to understand changes in consumer behavior
D) the need to determine where to locate retail outlets
Answer: D

41) In the Kellogg's example given in your text, Kellogg's performed several tasks to identify
their problem. Which of the tasks below was not used by Kellogg's to identify their problem?
A) They spoke to decision makers within the company.
B) They developed and tested several new flavors of cereal using mall intercept interviews with
adult customers
C) They interviewed industry experts.
D) They surveyed customers about their perceptions and preferences for cereals.
Answer: B

42) ________ is conceptualized as consisting of six steps which include problem definition,
developing an approach to the problem, research design formulation, field work, data preparation
and analysis, and report generation and presentation.
A) The marketing research process
B) Marketing information systems
C) Marketing research problem
D) A decision support system
Answer: A

43) Which of the tasks below might be conducted by the researcher during the "problem
definition" and the "development of an approach to the problem" steps of the marketing research
process?
A) analysis of secondary data
B) interviews with industry experts
C) qualitative research
D) all of the above
Answer: D

44) Which of the tasks below might be conducted by the researcher during the "problem
definition," the "development of an approach to the problem," or the "research design
formulation" steps of the marketing research process?
A) analysis of secondary data
B) interviews with industry experts
C) qualitative research
D) all of the above
Answer: D

45) The emphasis in marketing is on the identification and satisfaction of ________.


A) business needs
B) marketing goals
C) market needs
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D) customer needs
Answer: D

46) In order to determine customer needs and to implement marketing strategies and programs
aimed at satisfying those needs, marketing managers need information about ________.
A) customers
B) competitors
C) other forces in the marketplace
D) all of the above
Answer: D

47) Marketing managers need the information provided by marketing research for many reasons.
Which of the following is not a reason to need information provided by marketing research?
A) Firms have become national and international in scope.
B) Consumers have become more affluent and sophisticated.
C) Competition has become more intense.
D) All of the above are reasons to need information provided by marketing research.
Answer: D

48) Marketing research helps the marketing manager link the ________ with the ________ and
the customer groups.
A) marketing variables; environment
B) marketing variables; marketing information system
C) marketing information system; environment
D) none of the above
Answer: A

49) ________ may be defined as the process of enhancing marketplace competitiveness through
a greater understanding of a firm's competitors and the competitive environment.
A) Market intelligence
B) Competitive intelligence
C) A marketing information system
D) A decision support system
Answer: B

50) Competitive intelligence ________.


A) enables senior managers in companies to make informed decisions about everything
B) consists of integrated systems of hardware, communications networks, and software
C) is a continuous process involving the legal and ethical collection of information
D) A and C are both correct
Answer: D

51) Which of the following is not a consideration when making the decision to conduct
marketing research?
A) the consumer's attitude toward research
B) the costs versus the benefits of research
C) the resources available to conduct the research
D) the resources available to implement the research findings
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Answer: A

52) Which of the following statements is (are) true concerning big firms?
A) Many firms maintain in-house marketing research departments.
B) The marketing research department's place in the organizational structure may vary
considerably.
C) Firms with in-house research departments never use external research suppliers.
D) Both A and B are correct.
Answer: D

53) External research suppliers can be classified as ________ and ________.


A) limited-service; partial-service
B) full-service; partial-service
C) full-service; limited-service
D) none of the above
Answer: C

54) Which of the following is not an example of a full-service supplier (Figure 1.4 in the text)?
A) syndicated services
B) customized services
C) Internet services
D) analytical services
Answer: D

55) The Nielsen Television Index is a set of information of known commercial value that is
provided to multiple clients on a subscription basis. The Nielsen Index is an example of
________.
A) syndicated services
B) customized services
C) standardized services
D) analytical services
Answer: A

56) Syndicated services ________.


A) specialize in one or a few phases of the marketing research project
B) are research studies conducted for different client firms but in a different way
C) are companies that collect and sell common pools of data designed to serve information needs
shared by a number of clients
D) offer a wide variety of marketing research services customized to suit a client's specific needs
Answer: C

57) Customized services ________.


A) specialize in one or a few phases of the marketing research project
B) are research studies conducted for different client firms but in a different way
C) collect and sell common pools of data designed to serve information needs shared by a
number of clients
D) offer a wide variety of marketing research services tailored to suit a client's specific needs
Answer: D
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58) Limited-service suppliers ________.
A) specialize in one or a few phases of the marketing research project
B) are research studies conducted for different client firms but in a different way
C) collect and sell common pools of data designed to serve information needs shared by a
number of clients.
D) offer a wide variety of marketing research services tailored to suit a client's specific needs
Answer: A

59) Synovate (www.synovate.com) offers several products under the TeleNation® family. One of
their products, TeleNation®, is a twice-a-week multi-client telephone study among households
selected at random from the U.S. population. Clients are charged based on the number of
questions they ask. TeleNation® is a ________.
A) field service
B) branded market research product
C) data analysis service
D) analytical service
Answer: B

60) When a firm cannot conduct an entire marketing research project in house, it must select an
external supplier for one or more phases of the project. One of the things that the firm does not
need to consider or do when selecting an external research supplier is ________.
A) compile a list of prospective suppliers
B) realize that the cheapest bid is not always the best bid
C) develop criteria for selecting an outside supplier
D) All of the above must be considered or done.
Answer: D

61) There are many entry level marketing research positions available for persons with BBAs or
MBAs. Which one of the following is not an entry-level position?
A) operational supervisor
B) senior analyst
C) junior research analyst
D) research analyst
Answer: B

62) A ________ is a formalized set of procedures for generating, analyzing, storing, and
distributing pertinent information to marketing decision makers on an ongoing basis.
A) marketing information system
B) management information system
C) decision support system
D) none of the above
Answer: A

63) The definition of a(n) ________ is similar to marketing research, except that a(n) ________
provides information continuously rather than on the basis of ad hoc research studies.
A) marketing information system (MIS); MIS
B) management information system (MIS); MIS
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C) decision support system (DSS); DSS
D) none of the above
Answer: A

64) ________ are integrated systems including hardware, communications network, data base,
model base, software base, and the ________ user (decision maker) that collect and interpret
information for decision making.
A) Marketing information systems (MIS); MIS
B) Management information systems (MIS); MIS
C) Decision support systems (DSS); DSS
D) none of the above
Answer: C

65) Which of the following is not a characteristic of a decision support system?


A) rigidly structured problems
B) "what-if" analysis available
C) easy-to-use interactive mode
D) all of the above
Answer: A

66) Which of the following is true about a decision support system?


A) DSS can enhance decision-making effectiveness by using "what if" analysis.
B) DSS have been further developed to expert systems that utilize artificial intelligence
procedures to incorporate expert judgment.
C) The information provided by a DSS is rigidly structured and cannot be easily manipulated.
D) Both A and B are correct.
Answer: D

67) According to the author of the text, international research refers to which of the following
types of research?
A) foreign research
B) multinational research
C) cross-cultural research
D) all of the above
Answer: D

68) Marketing research has often been described as having four stakeholders. These
stakeholders have certain responsibilities to each other and to the research project. Which of the
following is not one of the stakeholders?
A) the marketing researcher
B) the respondent
C) the public
D) the environment
Answer: D

69) ________ features statistical programs such a Missing Values, SamplePower, Decision Time
and Data Entry.
A) SAS
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B) MINITAB
C) SPSS
D) EXCEL
Answer: C

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25) Hypotheses go beyond research questions because they are statements of relationships or
propositions rather than merely questions to which answers are sought.
Answer: TRUE

26) Being too familiar with the environmental factors of the country where the research is being
conducted can greatly increase the difficulty of understanding the problem's environmental
context and uncovering its causes.
Answer: FALSE

27) SPSS can be used to perform forecasts and "what-if" analyses to help the researcher in
isolating the underlying causes, identifying the relevant variables that should be investigated, and
formulating appropriate research questions and hypotheses.
Answer: TRUE

28) In the example given in your text, the Harley Davidson management decision problem and
the marketing research problem were defined with the help of all of the following except
________.
A) discussions with industry experts
B) discussions with a committee of top management
C) secondary data on motorcycle owners
D) focus groups with motorcycle owners
Answer: B

29) According to the Chain Restaurant Study in your text, the researcher had collected data but
did not know ________.
A) the marketing research problem
B) the management decision problem
C) the data collection process
D) the approach to the problem
Answer: A

30) The ________ is a broad statement of the general problem and identification of the specific
components of the marketing research problem.
A) problem audit
B) management problem
C) problem definition
D) none of the above
Answer: C

31) According to the problem definition and approach development process as shown in Figure
2.1 in the text, the tasks involved in problem definition consist of all of the following except
________.
A) discussions with the decision makers
B) interviews with industry experts
C) analysis of project costs
D) analysis of secondary data
Answer: C

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32) According to Figure 2.1 in the text, the components of the ________ consist of:
objective/theoretical foundations, analytical models, research questions, hypotheses, and
specification of the information needed.
A) approach to the problem
B) management decision problem
C) marketing research problem
D) environmental context of the problem
Answer: A

33) The need for the researcher to understand the nature of what decision managers face and
what they hope to learn from research is one of the reasons to conduct ________.
A) discussions with decision makers
B) interview with experts
C) secondary data analysis
D) qualitative research
Answer: A

34) To identify the management problem, the researcher must possess considerable skill in
interacting with the DM. Which of the following is a factor that might complicate this
interaction?
A) Access to the DM may be difficult and some organizations have complicated protocols for
access to top executives.
B) The organizational status of the researcher or the research department may make it difficult to
reach the key DM in the early stages of the project.
C) There may be more than one key DM and meeting with them collectively or individually may
be difficult.
D) All of the above are correct.
Answer: D

35) The ________ provides a useful framework for interacting with the DM and identifying the
underlying causes of the problem.
A) problem audit
B) management problem
C) problem definition
D) none of the above
Answer: A

36) The ________ is a comprehensive examination of a marketing problem with the purpose of
understanding its origin and nature.
A) problem audit
B) management problem
C) problem definition
D) none of the above
Answer: A

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37) It is important to perform a problem audit because ________.
A) the DM knows the cause of the problem
B) DMs tend to focus on symptoms rather than on causes
C) the DM, in most cases, has only a vague idea of what the problem is
D) both B and C are correct
Answer: D

38) The interaction between the DM and the researcher should be characterized by the seven Cs.
Which of the following is not one of the seven Cs?
A) continuity
B) communication
C) causality
D) candor
Answer: C

39) As one of the seven Cs that characterize the interaction between the DM and the researcher,
confidence is best defined as: ________.
A) there should not be any hidden agendas, and an attitude of openness should prevail
B) the interaction between the DM and the researcher should be guided by mutual trust
C) marketing research is a team project in which both parties (DM and researcher) must
cooperate
D) the interaction between the DM and the researcher should be creative rather than formulaic
Answer: B

40) Interviews with industry expertsindividuals knowledgeable about the firm and the
industrymay help formulate the marketing research problem. Which of the following
statements is true about interviews with industry experts?
A) These experts may be found both inside and outside the firm.
B) Typically, expert information is obtained by unstructured personal interviews without
administering a formal questionnaire.
C) It is helpful to prepare a list of topics to be covered during the interview.
D) All of the above are true.
Answer: D

41) Because of potential difficulties when seeking advice from experts, it is best to use
interviews with experts when conducting marketing research ________.
A) for industrial firms
B) for products of a technical nature
C) in situations where little information is available from other sources
D) all of the above
Answer: D

42) Which of the following statements about secondary data is true?


A) Secondary data are originated by the researcher for the specific purpose of addressing the
research problem at hand.
B) Secondary data are an economical and quick source of background information.
C) Primary data should not be collected until the available secondary data have been fully
analyzed.
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D) Both B and C are true.
Answer: D

43) ________ is an unstructured, exploratory research methodology based on small samples


intended to provide insight and understanding of the problem setting.
A) Primary research
B) Qualitative research
C) Secondary research
D) Quantitative research
Answer: B

44) ________ is not a qualitative research technique.


A) Depth interview
B) Word association
C) Focus group
D) Conclusive research
Answer: D

45) ________ consists of the factors that have an impact on the definition of the marketing
research problem, including past information and forecasts, resources and constraints of the firm,
objectives of the decision maker, buyer behavior, legal environment, economic environment, and
marketing and technological skills of the firm.
A) The approach to the problem
B) Research design
C) The environmental context of the problem
D) Problem definition
Answer: C

46) Many factors have an impact on the definition of the marketing research problem. These
factors encompass the environmental context of the problem. Which of the following is not one
of the factors?
A) marketing and technological skills of the firm
B) objectives
C) past information and forecasts pertaining to the industry and the firm
D) political environment
Answer: D

47) To formulate a marketing research problem of appropriate scope, it is necessary to take into
account both the resources available, such as money and research skills, and the constraints on
the organization, such as cost and time. These considerations refer to which of the factors related
to the environmental context of the problem?
A) resources and constraints
B) buyer behavior
C) legal environment
D) economic environment
Answer: A
48) Media consumption behavior and response to promotions, price sensitivity, and retail outlets
patronized are factors that should be considered in the ________ component of the
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environmental context of the problem.
A) objectives
B) legal environment
C) economic environment
D) buyer behavior
Answer: D

49) The "Got Milk?" campaign sponsored by the California Milk Processor Board and
mentioned in your text, used an understanding of ________ to identify the real causes that led to
the decline in milk consumption.
A) objectives
B) the legal environment
C) the economic environment
D) buyer behavior
Answer: D

50) Regulatory policies and norms within which organizations must operate, refer to the
________ factor of the environmental context of the problem.
A) legal environment
B) economic environment
C) objectives
D) buyer behavior
Answer: A

51) ________ is the problem confronting the decision maker. It asks what the decision maker
needs to do.
A) The environmental context of the problem
B) The management decision problem
C) The marketing research problem
D) Problem definition
Answer: B

52) ________ is a problem that entails determining what information is needed and how it can be
obtained in the most feasible way.
A) The environmental context of the problem
B) The management decision problem
C) The marketing research problem
D) Problem definition
Answer: C

53) The management decision problem focuses on ________, while the marketing research
problem focuses on ________.
A) symptoms; solutions
B) symptoms; underlying causes
C) solutions; underlying causes
D) none of the above
Answer: B

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54) Based on Table 2.1 in the text, which statement is true about the management decision
problem?
A) It asks what information is needed and how it should be obtained.
B) It is information oriented.
C) It asks what the decision maker needs to do.
D) It focuses on the underlying causes.
Answer: C

55) Based on Table 2.1 in the text, which statement is true about the marketing research
problem?
A) It focuses on underlying causes.
B) It focuses on symptoms.
C) It is information oriented.
D) Both A and C are correct.
Answer: D

56) If the management decision problem is: "Should a new product be introduced?" what is the
most appropriate marketing research problem?
A) determining the price elasticity of demand and the impact on sales and profits of various
levels of price changes
B) determining consumer preferences and purchase intentions for the proposed new product
C) determining the effectiveness of the current advertising campaign
D) determining the impact of new distribution outlets
Answer: B

57) Which statement is true concerning defining the marketing research problem?
A) The definition should allow the researcher to obtain all the information needed to address the
management decision problem.
B) The definition should guide the researcher in proceeding with the project.
C) The marketing research problem should be stated in broad, general terms with specific
components identified.
D) All of the above are correct.
Answer: D

58) The outputs of the approach development process should include all of the following
components except ________.
A) objective/theoretical framework
B) analytical models
C) hypotheses
D) all of the above
Answer: D

59) A conceptual scheme based on foundational statements called axioms, which are assumed to
be true, is ________.
A) objective evidence
B) a theory
C) an analytical model
D) none of the above
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Answer: B

60) Unbiased evidence that is supported by empirical findings is ________.


A) objective evidence
B) a theory
C) an analytical model
D) none of the above
Answer: A

61) In the process of developing an approach, research should be based on objective evidence
and supported by theory. A theory ________.
A) serves as a foundation on which the researcher can organize and interpret the findings
B) also plays a vital role in influencing the research procedures adopted in basic research
C) is incomplete
D) all of the above
Answer: D

62) The researcher should rely on ________ to determine which variables should be investigated.
A) objective evidence
B) theory
C) an analytical model
D) all of the above
Answer: D

63) A(n) ________ is a set of variables and their interrelationships designed to represent, in
whole or in part, some real system or process.
A) mathematical model
B) graphical model
C) verbal model
D) all of the above
Answer: D

64) ________ are refined statements of the specific components of the problem.
A) Hypotheses
B) Research questions
C) Marketing research problems
D) Analytical models
Answer: B

65) Which statement about hypotheses is not true?


A) A hypothesis is an unproven statement or proposition about a factor or phenomenon that is of
interest to the researcher.
B) Hypotheses are declarative and can be tested empirically.
C) It is possible to formulate hypotheses in all situations.
D) An important role of a hypothesis is to suggest variables to be included in the research design.
Answer: C

66) Before defining the problem, the researcher must isolate and examine the impact of the self-
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reference criterion (SRC), or the unconscious reference to one's own cultural values. Which of
the following steps does not help researchers account for environmental and cultural differences
when defining the problem in an international marketing context?
A) Define the marketing research problem in terms of domestic environmental and cultural
factors. This involves an identification of relevant American (domestic country) traits,
economics, values, needs, or habits.
B) Define the marketing research problem in terms of foreign environmental and cultural factors.
Make no judgments. This involves an identification of the related traits, economics, values,
needs, or habits in the proposed market culture. This task requires input from researchers familiar
with the foreign environment.
C) Isolate the self-reference criterion (SRC) influence on the problem and examine it carefully to
see how it complicates the problem.
D) All of the above are correct.
Answer: D

67) Ethical issues arise if the process of defining the problem and developing an approach is
compromised by the personal agendas of the client (DM) or the researcher. Which of these
statements concerning ethics in marketing research is not true?
A) The DM has the obligation to be candid and disclose to the researcher all the relevant
information that will enable a proper definition of the marketing research problem.
B) The researcher is ethically bound to offer the most expensive set of services to each client.
C) The problem definition process is adversely affected when the DM has hidden objectives such
as gaining a promotion.
D) The researcher is ethically bound to define the problem so as to further the best interest of the
client, rather than the interest of the research firm.
Answer: B

68) Which of the following ethical issues is/are pertinent in developing an approach?
A) When a client solicits proposals, not with the intent of subcontracting the research, but with
the intent of gaining the expertise of research firms without pay, an ethical breach has occurred.
B) The research firm has the ethical obligation to develop an appropriate approach.
C) Proprietary models and approaches developed by a research firm are the property of that firm
and should not be reused by the client in subsequent studies without the permission of the
research firm.
D) All of the issues are pertinent.
Answer: D

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36) The client should not take undue advantage of the research firm to solicit unfair concessions
for the current project by making false promises of future research contracts.
Answer: TRUE

37) Which statement is not true about research design?


A) Research design is a framework for conducting the marketing research project.
B) Research design specifies the measurement and scaling procedures.
C) Research design is undertaken before developing the approach to the problem.
D) Research design is undertaken after the marketing research problem is defined.
Answer: C

38) ________ is a framework or blueprint for conducting the marketing research project. It
specifies the details of the procedures necessary for obtaining the information needed to structure
and/or solve marketing research problems.
A) Research classification
B) Research design
C) Design formulation
D) None of the above
Answer: B

39) Typically, a ________ involves the tasks of designing the information needed, specifying the
measurement and scaling procedures, and developing a plan of data analysis.
A) research classification
B) research design
C) design formulation
D) none of the above
Answer: B

40) Which of the following tasks is not a component of research design?


A) Design the exploratory, descriptive, and/or causal phases of the research.
B) Construct and pretest a questionnaire (interviewing form) or an appropriate form for data
collection.
C) Specify the sampling process and sample size.
D) Develop hypotheses.
Answer: D

41) Research designs may be broadly classified as ________ or ________ (Figure 3.1 in the
text).
A) exploratory; causal
B) conclusive; causal
C) exploratory; conclusive
D) conclusive; descriptive
Answer: C

42) Exploratory research is used in all of the following cases except ________.
A) selecting the course of action to take in a given situation
B) when you must define the problem more precisely
C) when you must identify relevant courses of action
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D) when you must gain additional insights before an approach can be developed
Answer: A

43) The primary objective of ________ is to provide insights into, and an understanding of, the
problem confronting the researcher.
A) exploratory research
B) conclusive research
C) causal research
D) descriptive research
Answer: A

44) ________ is research designed to assist the decision maker in determining, evaluating, and
selecting the best course of action to take in a given situation.
A) Exploratory research
B) Conclusive research
C) Complex research
D) Problem-identification research
Answer: B

45) Cross-sectional and longitudinal designs are types of ________ (Figure 3.1 in the text).
A) causal research
B) exploratory research
C) descriptive research
D) none of the above
Answer: C

46) Joan needs to determine which variables and relationships she should examine further as part
of the research she is conducting for the Flager Truck Company. Joan is about to embark on
what type of research?
A) simple research
B) exploratory research
C) descriptive research
D) causal research
Answer: B

47) Which of the objectives below would best represent exploratory research?
A) Describe market characteristics or functions.
B) Determine cause and effect relationships.
C) Provide insights and understanding.
D) Test specific hypotheses and examine relationships.
Answer: C

48) Which of the objectives below would best represent conclusive research?
A) Describe market characteristics or functions.
B) Determine cause and effect relationships.
C) Provide insights and understanding.
D) A and B are correct.
Answer: D
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49) If there were a need to isolate key variables and relationships for further examination, it
would be best to perform ________.
A) descriptive research
B) causal research
C) exploratory research
D) conclusive research
Answer: C

50) Which of the following statements is not true about exploratory research?
A) It is flexible.
B) It is a pre-planned and structured design.
C) It is versatile.
D) It is often the front end of total research design.
Answer: B

51) Which data collection method is used in causal research?


A) experiments
B) surveys
C) expert surveys
D) panels
Answer: A

52) Jerry and the team working on the Roger Tire Company marketing research project are
developing ways to test their hypothesis that drivers of larger trucks prefer dual belted radial
tires. What type of research are they conducting?
A) simple research
B) exploratory research
C) descriptive research
D) causal research
Answer: C

53) You work for Innovative Focus, an internationally recognized consulting firm. You are
working on the Waterpik account to help them with finding their next successful product. You
are meeting with the Waterpik marketing professionals tomorrow to conduct a trends meeting to
list and prioritize key consumer wants and needs. You have also scheduled a meeting with the
Waterpik engineers to uncover applicable technologies and the company's internal competencies.
What type of research are you conducting in your meetings with Waterpik?
A) simple research
B) exploratory research
C) descriptive research
D) causal research
Answer: B

54) ________ is a type of conclusive research that has as its major objective the description of
somethingusually market characteristics or functions.
A) Exploratory research
B) Conclusive research
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C) Causal research
D) Descriptive research
Answer: D

55) Descriptive research is conducted for all of the following reasons except ________.
A) to describe the characteristics of relevant groups, such as consumers, salespeople,
organizations, or market areas
B) to determine the degree to which marketing variables are associated
C) to understand which variables are the cause and which variables are the effect of a
phenomenon
D) to determine the perceptions of product characteristics
Answer: C

56) A formal research design specifies the methods for selecting the sources of information and
for collecting data from those sources. A ________ design requires a clear specification of the
who, what, when, where, why, and way (the six Ws) of the research.
A) descriptive
B) causal
C) exploratory
D) none of the above
Answer: A

57) Descriptive research, in contrast to exploratory research, is marked by all of the following
except ________.
A) a clear statement of the problem
B) specific hypotheses
C) detailed information needs
D) flexibility
Answer: D

58) ________ designs involve the collection of information from any given sample of population
elements only once.
A) Exploratory
B) Causal
C) Cross-sectional
D) None of the above
Answer: C

59) ________ is a cross-sectional design in which one sample of respondents is drawn from the
target population and information is obtained from this sample once.
A) Multiple cross-sectional design
B) Single cross-sectional design
C) Cohort analysis
D) None of the above
Answer: B

60) ________ is the most used descriptive design in marketing research.


A) Longitudinal design
27
B) Exploratory design
C) Cross-sectional design
D) None of the above
Answer: C

61) Single cross-sectional designs are also called ________.


A) experiment designs
B) sample survey research designs
C) qualitative research designs
D) none of the above
Answer: B

62) ________ is a cross-sectional design in which there are two or more samples of respondents
and information is obtained from each sample only once.
A) Multiple cross-sectional design
B) Single cross-sectional design
C) Cohort analysis
D) None of the above
Answer: A

63) ________ is a multiple cross-sectional design consisting of a series of surveys conducted at


appropriate time intervals, where the cohort serves as the basic unit of analysis.
A) Multiple cross-sectional design
B) Single cross-sectional design
C) Cohort analysis
D) None of the above
Answer: C

64) Which of the following statements is true about cohort analysis?


A) A cohort is a group of respondents who experience the same event within the same time
interval.
B) It is unlikely that any of the individuals studied at time one will also be in the sample at time
two.
C) The term cohort analysis refers to any study in which there are measures of some
characteristics of one or more cohorts at two or more points in time.
D) All are correct.
Answer: D

65) ________ is a type of research design involving a fixed sample of population elements that is
measured repeatedly. The sample remains the same over time thus providing a series of pictures
which, when viewed together, portray a vivid illustration of the situation and the changes that are
taking place over time.
A) Exploratory research design
B) Causal research design
C) Cross-sectional research design
D) Longitudinal research design
Answer: D

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66) The question, "How did the American people rate the performance of George W. Bush
immediately after the war in Afghanistan?" would be addressed using a ________. However, a
________ would be used to address the question, "How did the American people change their
view of Bush's performance during the war in Afghanistan?"
A) longitudinal design; multiple cross-sectional
B) cross-sectional design; longitudinal design
C) longitudinal; cross-sectional design
D) none of the above
Answer: B

67) Sometimes the term ________ is used interchangeably with the term longitudinal design.
A) experiment
B) panel
C) survey
D) none of the above
Answer: B

68) ________ refers to a sample of respondents who have agreed to provide information at
specified intervals over an extended period.
A) Experiment
B) Survey
C) Panel
D) None of the above
Answer: C

69) A major advantage of ________ over the cross-sectional design is the ability to detect
change as a result of repeated measurement of the same variables on the same sample.
A) longitudinal design
B) descriptive research design
C) causal research design
D) conclusive research design
Answer: A

70) All of the following are advantages of longitudinal designs over cross-sectional designs
(Table 3.4 in the text) except ________.
A) detecting change
B) accuracy
C) large amount of data collection
D) representative sampling
Answer: D

71) Which of these statements is true about panels?


A) Relatively large amounts of data can be collected.
B) Panel data can be more accurate than cross-sectional data.
C) Panels may not be representative.
D) All of the above statements are correct.
Answer: D

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72) According to your text, non-representativeness in panels may arise because of all of the
following except ________.
A) respondent intelligence
B) mortality
C) refusal to cooperate
D) payment
Answer: A

73) When trying to determine which research design is best to choose, it is best to begin with
exploratory research if the objective of the research is to ________.
A) test hypotheses
B) conduct an annual customer satisfaction survey
C) define the problem more precisely
D) quantify the relative salience of social causes that businesses should be concerned about
Answer: C

74) ________ is the variation between the true mean value in the population of the variable of
interest and the observed mean value obtained in the marketing research project.
A) Measurement error
B) Recording error
C) Total error
D) Cheating error
Answer: C

75) ________ is the error due to the particular sample selected being an imperfect representation
of the population of interest. It may be defined as the variation between the true mean value for
the sample and the true mean value of the population.
A) Random sampling error
B) Non-response error
C) Non-sampling error
D) Response error
Answer: A

76) ________ are errors that can be attributed to sources other than sampling, and they can be
random or nonrandom.
A) Random sampling error
B) Non-response error
C) Non-sampling error
D) Response error
Answer: C

77) ________ is a type of non-sampling error arising from respondents who do respond but give
inaccurate answers, or their answers are mis-recorded or mis-analyzed. It may be defined as the
variation between the true mean value of the variable in the net sample and the observed mean
value obtained in the marketing research project.
A) Random sampling error
B) Non-response error
C) Non-sampling error
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D) Response error
Answer: D

78) ________ is a type of non-sampling error that occurs when some of the respondents included
in the sample do not respond. This error may be defined as the variation between the true mean
value of the variable in the original sample and the true mean value in the net sample.
A) Random sampling error
B) Non-response error
C) Non-sampling error
D) Response error
Answer: B

79) The variation between the population defined by the researcher and the population as implied
by the sampling frame (list) used is ________.
A) questioning error
B) unwillingness error
C) sampling frame error
D) recording error
Answer: C

80) The error that arises from the respondent's unwillingness to provide accurate information is
________. Respondents may intentionally misreport their answers because of a desire to provide
socially acceptable answers, avoid embarrassment, or please the interviewer.
A) questioning error
B) unwillingness error
C) sampling frame error
D) recording error
Answer: B

81) In a recent study, the population of the affluent households was defined in four different
ways: (1) households with income of $50,000 or more; (2) the top 20 percent of households, as
measured by income; (3) households with net worth over $250,000; and (4) households with
spendable discretionary income 30 percent higher than that of comparable households. The
number and characteristics of the affluent households varied depending upon the definition,
underscoring the need to avoid ________.
A) sampling frame error
B) respondent selection error
C) measurement error
D) population definition error
Answer: D

82) Which of the following is not a budgeting and scheduling approach for managing a project?
A) program evaluation and review technique (PERT)
B) critical evaluation and review technique (CERT)
C) critical path method (CPM)
D) graphical evaluation and review technique (GERT)
Answer: B

31
83) ________ is defined as the official layout of the planned marketing research activity for
management. It describes the research problem, the approach, the research design, data
collection methods, data analysis methods, and reporting methods.
A) Research design
B) The critical path method
C) The marketing research proposal
D) The marketing research problem
Answer: C

84) The marketing research proposal consists of many sections. The ________ section is
normally a statement of the problem, including the specific components.
A) problem definition/objectives of the research
B) approach to the problem
C) executive summary
D) research design
Answer: A

85) The ________ section of the marketing research proposal should discuss how the data will
be collected and who will collect it. The ________ section of the proposal discusses the kind of
data analysis that will be conducted and how the results will be interpreted.
A) appendices; data analysis
B) fieldwork/data collection; reporting
C) research design; data analysis
D) fieldwork/data collection; data analysis
Answer: D

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C) in a short time
D) all of the above
Answer: D

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

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

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

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

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
Answer: C

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.
36
A) nature
B) objective
C) error/accuracy
D) currency
Answer: C

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

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

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

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?
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

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
37
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

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

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

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

53) ________ are an excellent source of standard or recurring information.


A) Directories
B) Indexes
C) Guides
D) Statistical published data
Answer: C

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
38
C) general business; federal
D) public business; federal
Answer: B

55) ________ are helpful for identifying individuals or organizations that collect specific data.
A) Directories
B) Indexes
C) Guides
D) Statistical published data
Answer: A

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

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

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

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

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
39
B) internet database
C) offline database
D) customer database
Answer: C

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

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

63) ________ databases provide information on individuals, organizations and services.


A) Special purpose
B) Bibliographic
C) Directory
D) Numeric
Answer: C

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

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

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
40
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
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

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

69) Gallup and Robinson Magazine Impact Research Service (MIRS) test ads using an at-home
in-magazine 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

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

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
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72) Scanner data where panel members are identified by an ID card allowing each panel
member's purchases to be stored with respect to the individual shopper are referred to as
________.
A) scanner panels with cable TV
B) volume tracking data
C) scanner panels
D) none of the above
Answer: C

73) The different types of scanner data are useful for a variety of purposes. Which of the
following purposes applies to scanner data?
A) data used for consumer beliefs
B) data used for establishing consumer attitudes
C) data used to determine customer motives
D) making advertising decisions, including budget, copy and media, pricing
Answer: D

74) The uses of retail and wholesale audit data include all of the following except ________.
A) identifying shelf space allocation and inventory problems
B) establishing profiles of specific user groups
C) developing sales potentials and forecasts
D) analyzing distribution problems
Answer: B

75) Information provided by industry services is useful for which of the following?
A) sales management decisions such as defining territories and setting quotas
B) advertising decisions such as allocating advertising budgets
C) segmenting the market and designing custom products and services for important segments
D) all of the above
Answer: D

76) ________ combines geography with demographic information and a company's sales data or
other proprietary information to develop thematic maps.
A) Single-source data
B) Demographic mapping
C) Computer mapping
D) Thematic mapping
Answer: C

77) Sales & Marketing Management's annual Survey of Buying Power provides data to help you
analyze each of your U.S. markets, whether they are cities, counties, metro areas, or states. What
of the following information is also true of the Survey of Buying Power?
A) It features statistics, rankings, and projections for every county and media market in the
United States with demographic broken out by age, race, city, county, and state.
B) It features information on retail spending; and projections for future growth in these areas.
C) It features a unique measure of spending power that takes population, EBI, and retail sales
into account to determine a market's ability to buy.
42
D) All of the above are true.
Answer: B

78) Which of the following concerns are important when evaluating secondary data for
international projects?
A) Measurement units may not be equivalent across countries.
B) The accuracy of secondary data may vary from country to country.
C) Both A and B are correct.
D) None of the above are correct.
Answer: C

79) Which of the following practices might be unethical?


A) the use of secondary data alone when the research requires primary data collection
B) the client is billed a fixed fee for the project
C) the unnecessary collection of expensive primary data when the research problem can be
addressed based on secondary sources alone
D) Both A and C are correct.
Answer: D

43
38) Focus groups, depth interviews, and projective techniques can be implemented over the
Internet.
Answer: TRUE

39) Baby boomers are a large consumer target for many products and "show and tell" focus
groups are being used by consumer researchers. Which of the following statements is not true
about "show and tell" focus groups?
A) Respondents' attitudes are uncovered by analyzing their responses to scenarios that are
deliberately unstructured, vague, and ambiguous.
B) They provide the needed insight into the core values boomers hold close to their hearts.
C) Participants bring in three or four items that represent their ideal environment.
D) Group discussion is centered on the items brought in for "show and tell."
Answer: A

40) Whenever a new marketing research problem is being addressed, ________ research must be
preceded by appropriate ________ research.
A) qualitative; quantitative
B) observational; experimental
C) quantitative; qualitative
D) experimental; observational
Answer: C

41) According to Table 5.1 in the text, which of the following does not apply to qualitative
research?
A) a small number of nonrepresentative cases
B) non-statistical data analysis
C) unstructured form of data collection
D) outcome is used to recommend a final course of action
Answer: D

42) There are several reasons to use qualitative research. Which of the following is not a reason
to use qualitative research?
A) It is not always possible, or desirable, to use fully structured or formal methods to obtain
information from respondents.
B) People may be unwilling or unable to answer certain questions.
C) People are unwilling to give truthful answers to questions that invade their privacy, embarrass
them, or have a negative impact on their ego or status.
D) none of the above
Answer: D

43) The ________ is one type of qualitative research in which the purposes of the project are
disclosed to the respondent or are obvious, given the nature of the interview.
A) indirect approach
B) direct approach
C) focus group approach
D) descriptive approach
Answer: B
47
44) An interview conducted by a trained moderator among a small group of respondents in an
unstructured and natural manner is a(n) ________.
A) depth interview
B) projective technique
C) association technique
D) focus group
Answer: D

45) Focus groups are a(n) ________ research procedure and projective techniques are a(n)
________ research procedure.
A) experimental; direct
B) indirect; direct
C) direct; experimental
D) direct; indirect
Answer: D

46) ________ are the most important qualitative research procedure.


A) Focus groups
B) Depth interviews
C) Projective techniques
D) Association techniques
Answer: A

47) Which of the following is not one of the key qualifications of focus group moderators?
A) joviality
B) kindness with firmness
C) flexibility
D) sensitivity
Answer: A

48) The procedure for planning and conducting focus groups is described in Figure 5.3 in the
text. Planning begins with ________.
A) specifying the objectives of qualitative research
B) writing a screening questionnaire
C) developing a moderator's guide
D) determining objectives of the marketing research project and defining the problem
Answer: D

49) Constructing a detailed moderator's outline for use during the focus group interviews
involves extensive discussions among the ________, ________, and ________.
A) researcher; moderator; and respondents.
B) researcher; client; moderator.
C) researcher; client; respondent.
D) client; respondent; moderator.
Answer: B

50) The Real Research Mall of Atlanta focus group example in the text used focus groups to
48
uncover ________.
A) information on the mall visit experience
B) information on mall brand identity versus other malls
C) information on the brand value of the mall
D) all of the above
Answer: D

51) It is recommended that at least ________ focus groups be conducted.


A) two
B) three
C) four
D) five
Answer: A

52) A focus group interview conducted by two moderators where one moderator is responsible
for the smooth flow of the session, and the other ensures that specific issues are discussed is
called a ________.
A) two-way focus group
B) dueling-moderator group
C) dual-moderator group
D) respondent-moderator group
Answer: C

53) Focus groups can use several variations of the standard procedure. Which of the following is
not one of the variations mentioned in your text?
A) respondent-moderator group
B) client-participant group
C) tag-team moderator group
D) mini-group
Answer: C

54) A focus group interview conducted by two moderators where the moderators deliberately
take opposite positions on the issues to be discussed is called a ________.
A) dueling-moderator group
B) two-way focus group
C) dual-moderator group
D) respondent-moderator group
Answer: A

55) One of the findings of the Mall of Atlanta focus group research mentioned in the text was
that respondents who go to the mall for entertainment try to hold costs to under $30, except for
special occasions. The client reviewed this information and decided to design a mall experience
package that would cost $29.95 The client has fallen victim to which disadvantage of focus
groups?
A) misuse
B) misrepresentation
C) messy
D) Both A and B are correct.
49
Answer: D

56) Which of the following is a methodological application of focus groups?


A) obtaining impressions of new product concepts
B) generating alternative courses of action
C) Both B and D are correct.
D) generating hypotheses that can be tested quantitatively
Answer: C

57) Focus groups can be used to address substantive issues such as ________.
A) defining a problem more precisely
B) generating new ideas about older products
C) developing an approach to a problem
D) interpreting previously obtained quantitative results
Answer: B

58) Which statement is not true about online focus groups?


A) The group interaction lasts for about an hour.
B) The general practice is for moderators to pose their questions in all capital letters and the
respondents to respond using upper and lower case.
C) The whole process is much faster than the traditional method.
D) To enter the online focus group, participants must supply the room name, user name, and
password to the moderator via email.
Answer: D

59) Which of the following statements is not an advantage of online focus groups?
A) The researcher can reach segments that are usually hard to survey.
B) Researchers can re-contact group participants at a later date.
C) The cost of the online focus group is much less.
D) Only people that have and know how to use a computer can participate.
Answer: D

60) Which of the following statements is not a disadvantage of online focus groups?
A) Moderators may also be able to carry on side conversations with individual respondents,
probing deeper into interesting areas.
B) It can be difficult to verify that a respondent is a member of a target group.
C) Only audio and visual stimuli can be tested.
D) Only people that have and know how to use a computer can participate.
Answer: A

61) Which of the situations mentioned below is not suitable for online focus groups?
A) highly emotional issues
B) companies that use the Internet to sell products or services and want to either gain market
share or gather intelligence
C) corporations that want to gather feedback on workplace issues like downsizing, job changes,
and diversity
D) none of the above
Answer: A
50
62) A ________ is an unstructured, direct, personal interview in which a single respondent is
probed by a highly skilled interviewer to uncover underlying motivations, beliefs, attitudes, and
feelings on a topic.
A) focus group
B) qualitative interview
C) projective interview
D) depth interview
Answer: D

63) Depth interviews are like focus group in all of the following ways except________.
A) both are unstructured interviews
B) both are direct ways of obtaining information
C) both are qualitative research methods
D) both are one-on-one interviews
Answer: D

64) "Why do you say that?", "That's interesting, can you tell me more?" or, "Would you like to
add anything else?" are examples of ________.
A) focusing
B) projecting
C) probing
D) none of the above
Answer: C

65) ________ is a technique for conducting depth interviews in which a line of questioning
proceeds from product characteristics to user characteristics.
A) Hidden issue questioning
B) Symbolic analysis
C) Laddering
D) None of the above
Answer: C

66) In a study the researcher was investigating attitudes toward airlines among male middle
managers. Each airline attribute, such as wide-body aircrafts, was probed (why do you like to
travel in wide-body aircrafts?) to determine why it was important (I can get more work done) and
then that reason was probed (I accomplish more), and so on (I feel good about myself). The
depth interview techniques used in the study is called ________.
A) hidden issue questioning
B) symbolic analysis
C) laddering
D) none of the above
Answer: C

67) In a study the researcher was investigating attitudes toward airlines among male middle
managers. Questions asked included, "What would it be like if you could no longer use
airplanes?" Responses like, "Without planes, I would have to rely on e-mail, letters, and
telephone calls" were received. This suggests that what airlines sell to the managers is face-to-
51
face communication. The depth interview techniques used in the study is called ________.
A) hidden issue questioning
B) symbolic analysis
C) laddering
D) none of the above
Answer: B

68) ________ is a type of depth interview that attempts to locate personal sore spots related to
deeply felt personal concerns.
A) Hidden issue questioning
B) Symbolic analysis
C) Laddering
D) None of the above
Answer: A

69) ________ is a technique for conducting depth interviews in which the symbolic meaning of
objects is analyzed by comparing them with their opposites.
A) Hidden issue questioning
B) Symbolic analysis
C) Laddering
D) None of the above
Answer: B

70) In a depth interview, the interviewer should ________.


A) avoid appearing superior and put the respondent at ease
B) be detached and objective, yet personable
C) probe the respondent
D) all of the above
Answer: D

71) In a depth interview, the interviewer should ________.


A) not accept brief "yes" or "no" answers
B) not probe the respondent
C) ask questions in an informative manner
D) A and C are both correct
Answer: D

72) Depth interviews suffer from many of the disadvantages of focus groups and often to a
greater extent. Which of the following disadvantages is not shared with focus groups?
A) Skilled interviewers capable of conducting depth interviews are expensive and difficult to
find.
B) The lack of structure makes the results susceptible to the interviewer's influence.
C) The data obtained are difficult to analyze and interpret.
D) All of the above are shared with focus groups.
Answer: D

73) A(n) ________ is an unstructured, indirect form of questioning that encourages respondents
to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of
52
concern.
A) projective technique
B) focus group
C) association technique
D) depth interview
Answer: A

74) In ________, an individual is presented with a stimulus and asked to respond with the first
thing that comes to mind.
A) completion techniques
B) focus groups
C) association techniques
D) depth interviews
Answer: C

75) Word association is the best known of the ________ techniques.


A) expressive
B) association
C) completion
D) construction
Answer: B

76) With ________ respondents are presented with a list of words, one at a time. After each
word, they are asked to give the first word that comes to mind.
A) word association
B) sentence completion
C) story completion
D) none of the above
Answer: A

77) In word association, responses are analyzed by calculating ________.


A) the frequency with which any word is given as a response
B) the amount of time that elapses before a response is given
C) the number of respondents who do not respond at all to a test word within a reasonable period
of time
D) all of the above
Answer: D

78) ________ is a projective technique that requires the respondent to complete an incomplete
stimulus situation.
A) Association technique
B) Expressive technique
C) Construction technique
D) Completion technique
Answer: D

79) ________ is a projective technique in which respondents are presented with a number of
incomplete sentences and asked to complete them.
53
A) Word association
B) Sentence completion
C) Story completion
D) Expression completion
Answer: B

80) ________ is a projective technique in which the respondents are provided with part of a story
and required to give the conclusion in their own words.
A) Word association
B) Sentence completion
C) Story completion
D) Expression completion
Answer: C

81) ________ require the respondent to construct a response in the form of a story, dialogue, or
description.
A) Association techniques
B) Expressive techniques
C) Construction techniques
D) Impression techniques
Answer: C

82) In ________, cartoon characters are shown in a specific situation related to the problem. The
respondents are asked to indicate what one cartoon character might say in response to the
comments of another character.
A) picture response techniques
B) cartoon tests
C) third-person techniques
D) role playing
Answer: B

83) The two main expressive techniques are ________ and ________.
A) role playing; word association
B) role playing; third-person technique
C) word association; sentence completion
D) third-person technique; word association
Answer: B
84) ________ is a projective technique in which the respondent is presented with a verbal or
visual situation and asked to relate the beliefs and attitudes of a third person to the situation.
A) Role playing
B) Sentence completion
C) Cartoon test
D) Third-person technique
Answer: D

85) In ________, respondents are asked to play the role or assume the behavior of someone else.
A) role playing
B) sentence completion
54
C) cartoon test
D) third-party technique
Answer: A

86) Projective techniques are used less frequently than unstructured direct methods (focus groups
and depth interviews). A possible exception may be ________, which is used commonly to test
brand names and occasionally to measure attitudes about particular products, brands, packages,
or advertisements.
A) story completion
B) word association
C) sentence completion
D) cartoon tests
Answer: B

87) Which of the following guidelines does not enhance the usefulness of projective techniques?
A) Projective techniques should be used because the required information cannot be accurately
obtained by direct methods.
B) Projective techniques should be used for exploratory research to gain initial insights and
understanding.
C) Given their complexity, projective techniques should not be used naively.
D) none of the above
Answer: D

88) ________ is one of the three general steps that should be followed when analyzing
qualitative data. In this step, the researcher chooses which aspects of the data are emphasized,
minimized, or set aside for the project at hand.
A) Data display
B) Data reduction
C) Data determination
D) Conclusion drawing and verification
Answer: B

89) ________ is one of the three general steps that should be followed when analyzing
qualitative data. In this step, the researcher develops a visual interpretation of the data with the
use of such tools as a diagram, chart or matrix.
A) Data display
B) Data reduction
C) Data determination
D) Conclusion drawing and verification
Answer: A

90) ________ is one of the three general steps that should be followed when analyzing
qualitative data. In this step, the researcher considers the meaning of analyzed data and assesses
its implications for the research question at hand.
A) Data display
B) Data reduction
C) Data determination
D) Conclusion drawing and verification
55
Answer: D

91) When conducting international marketing research, focus group moderators should not only
be trained in focus group methodology but should also be familiar with the ________ of the
country.
A) language
B) culture
C) patterns of social interaction
D) all of the above
Answer: D

92) Which of the following is not an ethical issue of concern to the researcher?
A) disguising the purpose of the research and the use of deceptive procedures
B) videotaping and recording the proceedings
C) comfort level of the respondents
D) none of the above
Answer: D

93) The 2000, 2004 and 2008 presidential elections were cited in your text for negative attacks
by both the Republican and Democratic parties. The negative attacks were based on qualitative
marketing research used to help design the messages. Which ethical concern is this use of
marketing research related to?
A) disguising the purpose of the research and the use of deceptive procedures
B) using qualitative research for questionable purposes
C) comfort level of the respondents
D) none of the above
Answer: B

56
27) A primary method of observation using the Internet is to count the number of times a Web
page is visited.
Answer: TRUE

28) Voice pitch analysis measures emotional reactions through changes in the respondent's voice
and is a type of mechanical observation.
Answer: TRUE

29) Response latency is used as a measure of the relative preference for various alternatives.
Answer: TRUE

30) Generally, the pantry audit is conducted in conjunction with one of the survey methods.
Answer: TRUE

31) The pantry audit is a type of audit where the researcher inventories the brands, quantities,
and package sizes of products in a consumer's home.
Answer: TRUE

32) Content analysis could be profitably employed in the analysis of structured questions.
Answer: FALSE

33) It is best to view observation as a complement to survey methods, rather than as being in
competition with them.
Answer: TRUE

34) Questions that require respondents to choose from a set of predetermined answers are
________ questions.
A) dual response
B) fixed alternative
C) open-ended
D) none of the above
Answer: B

35) Which of the following is a disadvantage of the survey method of data collection?
A) The questionnaire is simple to administer.
B) The data obtained are reliable because the responses are limited to the alternatives stated.
C) Wording questions properly is not easy.
D) Coding, analysis, and interpretation of data are relatively simple.
Answer: C

36) Telephone interviews may be further classified as traditional telephone interviews or


________ (Figure 6.1 in the text).
A) in-home
B) computer-assisted telephone interviews (CATI)
C) both A and B are correct
D) none of the above
Answer: B
59
37) Which telephone interview method involves phoning a sample of respondents and asking
them a series of questions with the interviewer using a paper questionnaire to record the
responses with a pencil?
A) traditional telephone
B) in-home
C) computer-assisted telephone interviewing (CATI)
D) Internet
Answer: A

38) ________ interviewing uses a computerized questionnaire administered to respondents over


the telephone.
A) Traditional telephone
B) In-home
C) Computer-assisted telephone interviews (CATI)
D) Internet
Answer: C

39) Which of the following statements is not correct about computer-assisted telephone
interviewing (CATI)?
A) The computer checks the responses for appropriateness and consistency.
B) Interviewing time is reduced, data quality is enhanced, and the laborious steps in the data-
collection process, coding questionnaires and entering the data into the computer, are eliminated.
C) Multiple questions appear on the screen at one time.
D) Interim and update reports on data collection or results can be provided almost
instantaneously.
Answer: C

40) Which of the following is not a personal interview method?


A) in-home
B) mall intercept
C) computer-assisted personal interview (CAPI)
D) e-mail
Answer: D

41) Which personal interviewing method utilizes help screens and courteous error messages?
A) in-home
B) mall intercept
C) computer-assisted personal interview (CAPI)
D) e-mail
Answer: C

42) Decisions related to the ________ portion of the mail interview package involve
sponsorship, personalization, and type of appeal (Table 6.1 in the text).
A) outgoing envelope
B) cover letter
C) questionnaire
D) incentive
60
Answer: B

43) Decisions related to "monetary versus non-monetary" and "prepaid versus promised amount"
relate to which portion of the mail interview package?
A) outgoing envelope
B) cover letter
C) questionnaire
D) incentive
Answer: D

44) Limitations of e-mail surveys include all of the following except ________.
A) Questionnaires cannot utilize programmed skip patterns, logic checks, or randomization
B) Skipping instructions (e.g., "If the answer to question 5 is yes, go to question 9") must appear
explicitly, just as on paper
C) There is inherent self-selection bias
D) Some e-mail software products limit the length of the body of an e-mail message
Answer: C

45) Advantages of Web surveys over e-mail surveys include which of the following?
A) Graphs, images, animations, and links to other Web pages may be integrated into or around
the survey.
B) It is possible to validate responses as they are entered.
C) Skip patterns can be programmed and performed automatically.
D) All of the above are correct.
Answer: D

46) The extent to which the respondent can interact with the interviewer and survey
questionnaire refers to the ________.
A) flexibility of data collection
B) sample control
C) response rate
D) control of data collection environment
Answer: A

47) The degree of interaction the respondent has with the interviewer and the questionnaire, as
well as the ability to actually see the questions, refers to the ________.
A) respondent control
B) sample control
C) diversity of questions that can be asked in a survey
D) control of data collection environment
Answer: C

48) Table 6.2 in the text provides a comparative evaluation of survey methods. Which two
methods were shown as high on the flexibility of data collection criteria?
A) in-home interviews; computer assisted telephone interviews (CATI)
B) in-home interviews; mall intercept interviews
C) Internet; mall intercept interviews
D) computer assisted telephone interviews (CATI); mall intercept interviews
61
Answer: B

49) Table 6.2 in the text provides a comparative evaluation of survey methods. Mall intercept
surveys allow for diversity of questions. Which two additional methods are also shown as high
on the diversity of question criteria?
A) in-home interviews; computer assisted personal interviews (CAPI)
B) in-home interviews; computer assisted telephone interviews (CATI)
C) Internet; computer assisted telephone interviews (CATI)
D) computer assisted telephone interviews (CATI); mall-intercept interviews
Answer: A

50) The use of physical stimuli is not limited in ________.


A) traditional telephone interviews
B) CATI
C) e-mail surveys
D) mall-intercept interviews
Answer: D

51) The ability of the survey mode to reach the units specified in the sample effectively and
efficiently refers to the ________.
A) flexibility of data collection
B) sample control
C) diversity of questions that can be asked in a survey
D) control of data collection environment
Answer: B

52) Which of the following statements about sample control is true?


A) Mailing lists for mail surveys are sometimes unavailable, outdated, or incomplete.
B) It is possible to identify specific user groups within a mail panel and to direct the survey to
households with specific characteristics.
C) It can be difficult to prevent respondents from completing an Internet survey multiple times.
D) All of the above statements are true.
Answer: D

53) According to Table 6.2 in the text, the comparative evaluation of survey methods,
interviewers and supervisors involved in data collection refers to the ________ criteria.
A) response rate
B) control of field force
C) social desirability/sensitive information
D) perceived anonymity
Answer: B

54) Table 6.2 in the text provides a comparative evaluation of survey methods. Which two
methods are shown as low on the quantity of data criteria?
A) traditional telephone interviews; computer assisted telephone interviews (CATI)
B) in-home interviews; mall intercept interviews
C) Internet; mall intercept interviews
D) computer assisted telephone interviews (CATI); mall intercept interviews
62
Answer: A

55) According to Table 6.2 in the text, the comparative evaluation of survey methods, the
percentage of the total attempted interviews that are completed refers to the ________ criteria.
A) response rate
B) control of field force
C) social desirability/sensitive information
D) perceived anonymity
Answer: A

56) According to Table 6.2 in the text, the comparative evaluation of survey methods, the
tendency of the respondents to give answers that are socially acceptable whether or not they are
true refers to the ________ criteria.
A) response rate
B) control of field force
C) social desirability/sensitive information
D) perceived anonymity
Answer: C

57) The Internet is the fastest method of obtaining data from a large number of respondents.
There are many reasons for this speed. Which of the following is not one of those reasons?
A) the speed with which the questionnaire can be created
B) the speed with which the incentive is sent
C) the speed with which the questionnaire is distributed to respondents
D) the speed with which the data are returned
Answer: B

58) Observational methods may be ________ or ________.


A) structured; unstructured
B) direct; indirect
C) conducted in a natural environment; conducted in a contrived environment
D) all of the above
Answer: D

59) ________ involves observation techniques where the researcher clearly defines the behaviors
to be observed and the methods by which they will be measured.
A) Natural observation
B) Contrived observation
C) Structured observation
D) Unstructured observation
Answer: C
60) ________ is observation that involves a researcher monitoring all relevant phenomenon,
without specifying the details in advance.
A) Natural observation
B) Contrived observation
C) Structured observation
D) Unstructured observation
Answer: D
63
61) When Canon Cameras was losing market share in the United States to Minolta, Canon
decided that its distributor, Bell & Howell, was not giving adequate support. Canon sent
Tatehiro Tsuruta to the United States to look into the problem. On entering a camera store, he
would act just like a customer. He would note how the cameras were displayed and how the
clerks served customers. Canon utilized ________, ________ observation in a ________ setting.
A) unstructured; disguised; contrived
B) unstructured; disguised; natural
C) structured; undisguised; natural
D) structured; undisguised; contrived
Answer: B

62) Which statement is not true about natural observation?


A) The observed phenomenon will more accurately reflect the true phenomenon.
B) A disadvantage of natural observation is the cost of waiting for the phenomenon to occur.
C) A test kitchen set up in a shopping mall would be used in a natural observation.
D) A disadvantage is the difficulty of measuring the phenomenon in a natural setting.
Answer: C

63) In the department store project, license plate observations could be used to establish the
primary trading area of a shopping mall. Observers record the license plate numbers of the
automobiles in a parking lot. This is an example of ________.
A) mechanical observation
B) personal observation
C) content analysis
D) trace analysis
Answer: B

64) Nielsen uses audimeters attached to television sets to continually record what channel the set
is tuned to. This is an example of ________.
A) mechanical observation
B) personal observation
C) content analysis
D) trace analysis
Answer: A

65) ________ includes observation as well as analysis.


A) Trace analysis
B) Mechanical observation
C) Personal observation
D) Content analysis
Answer: D

66) In the department store patronage project, ________ may be used to analyze magazine
advertisements of the sponsoring and competing stores to compare their projected images.
A) mechanical observation
B) personal observation
C) content analysis
64
D) trace analysis
Answer: C

67) ________ is an approach in which data collection is based on physical traces, or evidence, of
past behavior.
A) Mechanical observation
B) Personal observation
C) Content analysis
D) Trace analysis
Answer: D

68) In the context of the department store patronage project, analyzing store charge card slips to
examine customer store credit usage behaviors is an example of ________.
A) mechanical observation
B) personal observation
C) content analysis
D) trace analysis
Answer: D

69) Which of the following marketing applications is not an example of trace analysis?
A) A sample of 100 magazines were examined to determine how the portrayal of women in U.S.
magazine advertisements has changed over the past 10 years.
B) The selective erosion of tiles in a museum indexed by the replacement rate was used to
determine the relative popularity of exhibits.
C) The age and condition of cars in a parking lot were used to assess the affluence of customers.
D) The magazines people donated to charity were used to determine people's favorite magazines.
Answer: A

70) Which statement is false concerning the different observation methods?


A) Mechanical observation can vary widely from low to high structure depending upon on the
methods used.
B) The degree of disguise is low in the case of audits, as it is difficult to conceal the identity of
auditors.
C) Observation bias is high in the case of mechanical observation because a human observer is
involved.
D) The ability to observe in a natural setting is low in trace analysis because the observation
takes place after the behavior has occurred.
Answer: C

71) Which of the following advantages is not a reason why data analysis bias is low for audits
and content analysis?
A) because the variables are precisely defined
B) because the phenomenon to be observed can be recorded continuously
C) because the data are quantitative
D) because statistical analysis is conducted
Answer: B

72) ________ is a method of last resort.


65
A) The mail interview
B) Content analysis
C) Trace analysis
D) The mall intercept interview
Answer: C

73) Which of the following advantages is the greatest advantage of observation methods?
A) If the observed phenomenon occurs frequently or is of short duration, observational methods
may be cheaper and faster than survey methods.
B) The data obtained are reliable because the responses are limited to the alternatives stated.
C) Observational methods permit measurement of actual behavior rather than reports of intended
or preferred behavior.
D) Coding, analysis, and interpretation of data are relatively simple.
Answer: C

74) The most serious disadvantage of observation is ________.


A) if the observed phenomenon occurs frequently or is of short duration, observational methods
may be cheaper and faster than survey methods.
B) the reasons for the observed behavior may not be determined because little is known about the
underlying motives, beliefs, attitudes, and preferences.
C) observational methods permit measurement of actual behavior rather than reports of intended
or preferred behavior.
D) observational data is often time consuming and expensive and it is difficult to observe certain
forms of behavior, such as personal activities.
Answer: B

75) Which of the following statements is true about ethnographic research?


A) It is the study of human behavior in its natural context and involves observation of behavior
and setting along with depth interviews.
B) Sometimes audio and visual recordings are obtained.
C) Both A and B are correct.
D) None are correct.
Answer: C

76) ________ involves trained observers posing as consumers and shopping at company  or
competitor-owned stores to collect data about customer-employee interaction and other
marketing variables. (Choose the best answer.)
A) Personal observation
B) Structured observation
C) Mystery shopping
D) Contrived observation
Answer: C

66
43) In many countries, the marketing, economic, structural, information, and technological
environments are not developed to the extent that they are in the United States.
Answer: TRUE
Diff: 2 Page Ref: 240
AACSB: Multicultural and Diversity
LO : 7

44) The internal and external validity of field experiments conducted overseas is generally lower
than in the United States.
Answer: TRUE
Diff: 1 Page Ref: 240
AACSB: Multicultural and Diversity
LO : 7

45) Debriefing occurs after the experiment and entails informing test subjects what the
experiment was about and how the experimental manipulations were performed
Answer: TRUE
Diff: 1 Page Ref: 240-241
AACSB: Ethical Reasoning
LO : 8

46) The scientific concept of causality is complex. "Causality" means something very different to
the average person on the street than to a scientist. If the ordinary meaning of a statement is "X
is the only cause of Y," its related scientific meaning is: ________.
A) the occurrence of X makes the occurrence of Y
B) we can never prove that X is a cause of Y. At best, we can infer that X is a cause of Y
C) X is only one of a number of possible causes of Y
D) None of the above is correct.
Answer: C
Diff: 3 Page Ref: 218
AACSB: Reflective Thinking
LO : 1

47) The conditions that must be satisfied before making causal inferences include all of the
following except ________.
A) time order of occurrence of variables
B) role of evidence
C) concomitant variation
D) elimination of other possible factors
Answer: B
Diff: 2 Page Ref: 218
AACSB: Reflective Thinking
LO : 1

7
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
48) ________ is the extent to which a cause, X, and an effect, Y, occur together or vary together
in the way predicted by the hypothesis under consideration.
A) The time order of occurrence of variables
B) The role of evidence
C) Concomitant variation
D) The elimination of other possible factors
Answer: C
Diff: 2 Page Ref: 219-220
AACSB: Reflective Thinking
LO : 1

49) The statement 'An effect cannot be produced by an event that occurs after the effect has
taken place,' refers to ________.
A) the time order of occurrence of variables
B) the role of evidence
C) concomitant variation
D) the elimination of other possible factors
Answer: A
Diff: 2 Page Ref: 219-220
AACSB: Reflective Thinking
LO : 1

50) Which of the following statements is not true concerning the time order of occurrence of
variables?
A) In an after-the-fact examination of the situation, we can never confidently rule out all other
causal factors.
B) The causing event must occur either before or simultaneously with the effect; it cannot occur
afterwards.
C) An effect cannot be produced by an event that occurs after the effect has taken place.
D) It is possible for each event in a relationship to be both a cause and an effect of the other
event.
Answer: A
Diff: 2 Page Ref: 219-220
AACSB: Reflective Thinking
LO : 1

51) ________ means that the factor or variable being investigated should be the only possible
causal explanation.
A) The time order of occurrence of variables
B) The role of evidence
C) Concomitant variation
D) The absence of other possible causal factors
Answer: D
Diff: 2 Page Ref: 219-220
AACSB: Reflective Thinking
LO : 1

8
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
52) When considering ________, accumulated evidence from several investigations increases
our confidence that a causal relationship exists.
A) the time order of occurrence of variables
B) the role of evidence
C) concomitant variation
D) the elimination of other possible factors
Answer: B
Diff: 2 Page Ref: 219-220
AACSB: Reflective Thinking
LO : 1

53) Experimental design is the set of experimental procedures specifying the test units and
sampling procedures and all of the following except ________.
A) specifying the independent variables
B) specifying the dependent variables
C) specifying the plan for data analysis
D) specifying how to control the extraneous variables
Answer: C
Diff: 3 Page Ref: 221
LO : 1

54) In the New York coupon experiment mentioned in your text, the experiment was conducted
to test the effects of the face value of coupons on the likelihood of coupon redemption. Subjects
were randomly assigned to 2 treatment groups. One group was offered 15-cent coupons and the
other 50-cent coupons for four products. During the interviews, the respondents answered
questions about which brands they used and how likely they were to cash coupons of the given
face value the next time they shopped. In the preceding experiment, the dependent variable that
was ________.
A) brand usage
B) the value of the coupon (15-cent versus 50-cent coupon)
C) the likelihood of cashing the coupon
D) individual shoppers
Answer: C
Diff: 2 Page Ref: 221-222
AACSB: Analytic Skills
LO : 1

9
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
55) In the New York coupon experiment mentioned in your text, the experiment was conducted
to test the effects of the face value of coupons on the likelihood of coupon redemption. Subjects
were randomly assigned to 2 treatment groups. One group was offered 15-cent coupons and the
other 50-cent coupons for four products. During the interviews, the respondents answered
questions about which brands they used and how likely they were to cash coupons of the given
face value the next time they shopped. In the preceding experiment, the independent variable
that was manipulated was ________.
A) brand usage
B) the value of the coupon (15-cent versus 50-cent coupon)
C) the likelihood of cashing the coupon
D) individual shoppers
Answer: B
Diff: 2 Page Ref: 221-222
AACSB: Analytic Skills
LO : 1

56) In the New York coupon experiment mentioned in your text, the experiment was conducted
to test the effects of the face value of coupons on the likelihood of coupon redemption. Subjects
were randomly assigned to 2 treatment groups. One group was offered 15-cent coupons and the
other 50-cent coupons for four products. During the interviews, the respondents answered
questions about which brands they used and how likely they were to cash coupons of the given
face value the next time they shopped. In the preceding experiment, the test units were
________.
A) brand usage
B) the value of the coupon (15-cent versus 50-cent coupon)
C) the likelihood of cashing the coupon
D) individual shoppers
Answer: D
Diff: 2 Page Ref: 221-222
AACSB: Analytic Skills
LO : 1

57) Using the set of symbols commonly used in marketing research to denote experimental
designs, which symbol below represents the exposure of a group to an independent variable,
treatment, or event the effects of which are to be determined?
A) T
B) O
C) R
D) X
Answer: D
Diff: 2 Page Ref: 222
LO : 1

10
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
58) Using the set of symbols commonly used in marketing research to denote experimental
designs, which symbol below represents the random assignment of test units or groups to
separate treatments?
A) T
B) O
C) R
D) X
Answer: C
Diff: 2 Page Ref: 222
LO : 1

59) Using the set of symbols commonly used in marketing research to denote experimental
designs, which symbol below represents the process of observation or measurement of the
dependent variable on the test units or group of units?
A) T
B) O
C) R
D) X
Answer: B
Diff: 2 Page Ref: 222
LO : 1

60) Which experimental design means that two groups of test units were randomly assigned to
two different treatment groups at the same time, and the dependent variable was measured in the
two groups simultaneously?
A) R X1 O 1
R X2 O2
B) R X1 O 1
O2 X2 O2
C) X O1 O 2
X O1 O2
D) R X1 O 1
R X1 O1
Answer: A
Diff: 3 Page Ref: 222
LO : 1

11
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
61) ________ is a measure of accuracy of an experiment. It measures whether the manipulation
of the independent variables, or treatments, actually caused the effects on the dependent
variable(s).
A) External validity
B) Extraneous validity
C) Internal validity
D) None of the above
Answer: C
Diff: 2 Page Ref: 222-223
LO : 2

62) All of the following statements are true about external validity except ________.
A) threats to external validity arise when the specific experimental conditions do not realistically
take into account the interactions of other relevant variables in the real world.
B) external validity is the basic minimum that must be present in an experiment before any
conclusion about treatment effects can be made
C) factors that threaten internal validity may also threaten external validity, the most serious of
these being extraneous variables.
D) A and C are true
Answer: D
Diff: 3 Page Ref: 222-223
AACSB: Reflective Thinking
LO : 2

63) ________ is a determination of whether the cause-and-effect relationships found in the


experiment can be generalized. Can the results be generalized beyond the experimental situation
and if so, to what populations, settings, times, independent variables and dependent variables can
the results be projected?
A) External validity
B) Extraneous validity
C) Internal validity
D) None of the above
Answer: A
Diff: 2 Page Ref: 222-223
AACSB: Reflective Thinking
LO : 2

64) ________ refers to an extraneous variable attributable to changes in the test units themselves
that occur with the passage of time.
A) Mortality
B) Interactive testing effect
C) Maturation
D) Main testing effect
Answer: C
Diff: 2 Page Ref: 223-224
LO : 3

12
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
65) ________ refers to an effect of testing occurring when a prior observation affects a latter
observation.
A) Mortality
B) Interactive testing effect
C) Maturation
D) Main testing effect
Answer: D
Diff: 3 Page Ref: 224
LO : 3

66) ________ refers to an effect in which a prior measurement affects the test unit's response to
the independent variable.
A) Mortality
B) Interactive testing effect
C) Maturation
D) Main testing effect
Answer: B
Diff: 3 Page Ref: 224
LO : 3

67) ________ refers to an extraneous variable involving changes in the measuring instrument or
in the observers or scores themselves.
A) Instrumentation
B) Statistical regression
C) Selection bias
D) None of the above
Answer: A
Diff: 1 Page Ref: 224
LO : 3

68) ________ refers to an extraneous variable that occurs when test units with extreme scores
move closer to the average score during the course of the experiment.
A) Instrumentation
B) Statistical regression
C) Selection bias
D) None of the above
Answer: B
Diff: 3 Page Ref: 224
LO : 3

13
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
69) ________ refers to an extraneous variable attributable to the improper assignment of test
units to treatment conditions.
A) Instrumentation
B) Statistical regression
C) Selection bias
D) None of the above
Answer: C
Diff: 2 Page Ref: 224-225
LO : 3

70) ________ refers to an extraneous variable attributable to the loss of test units while the
experiment is in progress.
A) Mortality
B) Interactive testing effect
C) Maturation
D) Main testing effect
Answer: A
Diff: 3 Page Ref: 225
LO : 3

71) If the experimental design called for the respondents to be randomly assigned to one of three
experimental groups and for one of three versions of a test commercial to be randomly
administered to each group, this design would be using ________.
A) design control
B) statistical control
C) randomization
D) matching
Answer: C
Diff: 1 Page Ref: 225
AACSB: Analytic Skills
LO : 3

72) ________ involves measuring the extraneous variables and adjusting for their effects through
statistical analysis.
A) Design control
B) Statistical control
C) Randomization
D) Matching
Answer: B
Diff: 1 Page Ref: 225-226
LO : 3

14
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73) If in test marketing a new product, the researcher ensures that the product is positioned in the
correct aisle in each store and obtains the right level of store acceptance and all commodity
volume distribution, more than likely, the researcher used ________ to help control for
extraneous variables.
A) design control
B) statistical control
C) randomization
D) matching
Answer: A
Diff: 3 Page Ref: 226
LO : 3

74) The one-group pretest-posttest is a type of ________. These designs do not control for
extraneous factors by randomization.
A) quasi-experimental design
B) true experimental design
C) statistical design
D) preexperimental design
Answer: D
Diff: 2 Page Ref: 227
AACSB: Analytic Skills
LO : 4

75) Pretest-posttest control group and Solomon four-group designs are ________ distinguished
by the fact that the researcher can randomly assign test units to experimental groups and also
randomly assign treatments to experimental groups.
A) quasi-experimental designs
B) true experimental designs
C) statistical designs
D) preexperimental designs
Answer: B
Diff: 2 Page Ref: 228
AACSB: Analytic Skills
LO : 4

76) ________ result when the researcher is unable to achieve full manipulation of scheduling or
allocation of treatments to test units but can still apply part of the apparatus of true
experimentation.
A) Quasi-experimental designs
B) True experimental designs
C) Statistical designs
D) Preexperimental designs
Answer: A
Diff: 2 Page Ref: 230
AACSB: Analytic Skills
LO : 4

15
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
77) ________ allow for the statistical control and analysis of external variables.
A) Quasi-experimental designs
B) True experimental designs
C) Statistical designs
D) Preexperimental designs
Answer: C
Diff: 2 Page Ref: 231-232
LO : 4

78) Which of the following is true of the one-shot case study preexperimental design (X O1)?
A) It does not provide a basis of comparing the level of O1 to what would happen when X was
absent.
B) There is no random assignment of test units.
C) Both A and B are correct.
D) In this design, a group of test units is measured twice.
Answer: C
Diff: 3 Page Ref: 227
AACSB: Analytic Skills
LO : 4

79) The one-group pretest-posttest design may be symbolized as O1 X2 O2. In this


design, a group of test units is measured ________.
A) once
B) twice
C) not at all
D) none of the above
Answer: B
Diff: 2 Page Ref: 227
AACSB: Analytic Skills
LO : 4

80) A ________ design to measure the effectiveness of a test commercial for Sears would be
implemented as follows. Respondents are recruited to central theater locations in different test
cities. At the central location, respondents are first administered a personal interview to
measure, among other things, attitudes toward the store (O1). Then they watch a TV program,
the respondents are again administered a personal interview to measure attitudes towards the
store (O2). The effectiveness of the test commercial is measured as O2 - O1.
A) one-shot case study
B) pretest-posttest control group
C) static group
D) one-group pretest-posttest
Answer: D
Diff: 3 Page Ref: 227
AACSB: Analytic Skills
LO : 4

16
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
81) A ________ design to measure the effectiveness of a test commercial for Sears would be
implemented as follows. Two groups of respondents would be recruited on the basis of
convenience. Only the experimental group would be exposed to the TV program containing the
test (Sears) commercial. Then attitudes toward the department store of both the experimental
and control group respondents would be measured. The effectiveness of the test commercial is
measured as O1 - O2.
A) one-shot case study
B) pretest-posttest control group
C) static group
D) one-group pretest-posttest
Answer: C
Diff: 3 Page Ref: 228
AACSB: Analytic Skills
LO : 4

82) The static group is a two-group experimental design. One group, called the ________, is
exposed to the treatment, and the other, called the ________, is not. Measurements on both
groups are made only after the treatment, and test units are not assigned at random.
A) experimental group (EG); control group (CG)
B) experimental group (EG); random group (RG)
C) pretest group (PG); control group (CG)
D) control group (CG); experimental group (EG)
Answer: A
Diff: 2 Page Ref: 228
AACSB: Analytic Skills
LO : 4

83)

In the pretest-posttest control group design shown above, selection bias is eliminated by
________.
A) design control
B) randomization
C) matching
D) statistical control
Answer: B
Diff: 3 Page Ref: 228-229
AACSB: Analytic Skills
LO : 4

17
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
84)

The true experimental design shown above is a ________ design.


A) pretest-posttest control group
B) one-shot case study
C) post-test-only control group
D) one-group pretest-posttest
Answer: C
Diff: 3 Page Ref: 229
LO : 4

85) In the posttest-only control group design, the treatment effect (TE) is obtained by ________.
A) TE= O1 - O2
B) TE= (O1 - O2) - (O3 - O4)
C) TE= (O2 - O1) - (O4 - O3)
D) TE= O1
Answer: A
Diff: 3 Page Ref: 229
AACSB: Analytic Skills
LO : 4

86) Which of the following statements is true about the Solomon four-group design?
A) The Solomon four-group design should be used to examine the changes in the attitudes of
individual respondents.
B) The Solomon four-group design explicitly controls for interactive testing effect.
C) The Solomon four-group design is expensive and time consuming to implement.
D) All of the above statements are true.
Answer: D
Diff: 3 Page Ref: 230
AACSB: Analytic Skills
LO : 4

87) O1 O2 O 3 O4 O5 X O 6 O7 O8 O9 O10
The above design is an example of a ________.
A) one group pretest-posttest design
B) multiple time series design
C) pretest-posttest control group design
D) time series design
Answer: D
Diff: 3 Page Ref: 230
LO : 4

18
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88) The major weakness of the time series design is the failure to control ________.
A) mortality
B) history
C) selection bias
D) instrumentation
Answer: B
Diff: 3 Page Ref: 230
LO : 4

89) The effectiveness of a test commercial (X) may be examined by broadcasting the commercial
a predetermined number of times and examining the data from a preexisting test panel. Although
the marketer can control the scheduling of the test commercial, it is uncertain when or whether
the panel members are exposed to it. The panel members' purchases before, during, and after the
campaign are examined to determine whether the test commercial has a short-term effect, a long-
term effect, or no effect. A ________ design was used in this research project.
A) pretest-posttest control group
B) time series
C) one-group pretest-posttest design
D) multiple time series design
Answer: B
Diff: 3 Page Ref: 230-231
AACSB: Analytic Skills
LO : 4

90) Which of the following statements is an advantage of statistical designs?


A) The effects of more than one independent variable can be measured.
B) Specific extraneous variables can be statistically controlled.
C) Economical designs can be formulated when each test unit is measured more than once.
D) All of the statements are advantages.
Answer: D
Diff: 3 Page Ref: 232
AACSB: Reflective Thinking
LO : 4

91) ________ is a statistical design in which the test units are blocked on the basis of an external
variable to ensure that the various experimental and control groups are matched closely on that
variable.
A) Randomized block design
B) Latin square design
C) Factorial design
D) Solomon four-group design
Answer: A
Diff: 2 Page Ref: 233
LO : 4

19
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
92) What is the main limitation of randomized block designs?
A) They require an equal number of rows, columns, and treatment levels, which is sometimes
problematic.
B) They do not allow the researcher to examine interactions of the external variables with each
other or with the independent variable.
C) The researcher can control for only one external variable.
D) The number of treatment combinations increases multiplicatively with an increase in the
number of variables or levels.
Answer: C
Diff: 3 Page Ref: 233
AACSB: Reflective Thinking
LO : 4

93) ________ is a statistical design that allows for the statistical control of two non-interacting
external variables in addition to the manipulation of the independent variable.
A) Randomized block design
B) Latin square design
C) Factorial design
D) Solomon four-group design
Answer: B
Diff: 2 Page Ref: 233
LO : 4

94) Which of the following statements is a limitation of Latin square designs?


A) They require an equal number of rows, columns, and treatment levels, which is sometimes
problematic.
B) They do not allow the researcher to examine interactions of the external variables with each
other or with the independent variable.
C) The researcher can control for only one external variable.
D) Both A and B are correct.
Answer: D
Diff: 3 Page Ref: 233-234
LO : 4

95) ________ is a statistical experimental design that is used to measure the effects of two or
more independent variables at various levels and to allow for interactions between variables.
A) Randomized block design
B) Latin square design
C) Factorial design
D) Solomon four-group design
Answer: C
Diff: 2 Page Ref: 234-235
LO : 4

20
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96) What is the main disadvantage of factorial designs?
A) They require an equal number of rows, columns, and treatment levels, which is sometimes
problematic.
B) They do not allow the researcher to examine interactions of the external variables with each
other or with the independent variable.
C) The researcher can control for only one external variable.
D) The number of treatment combinations increases multiplicatively with an increase in the
number of variables or levels.
Answer: D
Diff: 2 Page Ref: 234-235
AACSB: Reflective Thinking
LO : 4

97) Which statement is not true about laboratory experiments?


A) The laboratory environment offers a high degree of control because it isolates the experiment
in a carefully monitored environment.
B) The artificiality of the environment may cause reactive error, in that the respondents react to
the situation itself, rather than to the independent variable.
C) Laboratory experiments are likely to have higher external validity than field experiments.
D) Laboratory experiments allow for more complex designs than field experiments.
Answer: C
Diff: 3 Page Ref: 235-236
AACSB: Reflective Thinking
LO : 5

98) Which of the following statements is true when considering experimental versus non-
experimental designs?
A) It is difficult in descriptive studies to establish the prior equivalence of the respondent groups
with respect to both the independent and dependent variables. However, experiments can
establish this equivalence.
B) Descriptive research offers little control over other possible causal factors.
C) In descriptive research, it is also difficult to establish time order of occurrence of variables.
However, in an experiment, the researcher controls the timing of the measurements and the
introduction of the treatment.
D) All of the above statements are correct.
Answer: D
Diff: 2 Page Ref: 236
AACSB: Reflective Thinking
LO : 5

99) Which of the following is a reason why experiments may be hard to administer?
A) It may be impossible to control for the effects of the extraneous variables.
B) Competitors may deliberately contaminate the results of a field experiment.
C) Both A and B are reasons why experiments may be hard to administer.
D) Neither A nor B is a reason why experiments may be hard to administer.
Answer: D
Diff: 1 Page Ref: 237
LO : 5
21
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100) A ________ is a test market in which the product is sold through regular distribution
channels.
A) Simulated test market
B) Partial test market
C) Controlled test market
D) Standard test market
Answer: D
Diff: 1 Page Ref: 237-239
LO : 6

101) Which statement is not true concerning a standard test market?


A) It is a one-shot case study.
B) Test markets are selected and the product is sold through regular distribution channels.
C) Where external validity is important, at least four test markets should be used.
D) All statements are correct.
Answer: D
Diff: 2 Page Ref: 237-239
LO : 6

102) Which statement is not true concerning a standard test market?


A) One or more combinations of marketing mix variables (product, price, distribution, and
promotional levels) are employed.
B) While a firm's test marketing is in progress, competitors have an opportunity to beat it to the
national market.
C) Competitors often take actions such as increasing their promotional efforts to contaminate the
test marketing program.
D) All statements are correct.
Answer: D
Diff: 2 Page Ref: 237-239
LO : 6

103) Which statement is not true about simulated test markets?


A) While a firm's test marketing is in progress, competitors have an opportunity to beat it to the
national market.
B) Competitors often take actions such as increasing their promotional efforts to contaminate the
test marketing program.
C) Both A and B are not true about simulated test markets.
D) They yield mathematical estimates of market share based on initial reaction of consumers to a
new product.
Answer: C
Diff: 3 Page Ref: 237-239
LO : 6

22
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
104) A ________ is a test marketing program conducted by an outside research company in field
experimentation. The research company guarantees distribution of the product in retail outlets
that represent a pre-determined percentage of the market.
A) Simulated test market
B) Partial test market
C) Controlled test market
D) Standard test market
Answer: C
Diff: 2 Page Ref: 237-239
LO : 6

105) A ________ is a quasi-test market in which respondents are pre-selected, then interviewed
and observed on their purchases and attitudes toward the product.
A) Simulated test market
B) Partial test market
C) Controlled test market
D) Standard test market
Answer: A
Diff: 2 Page Ref: 237-239
LO : 6

106) Which statement is not true about why it is difficult to conduct field experiments in the
international arena?
A) In many countries, the TV stations are owned and operated by the government with severe
restrictions on television advertising. This makes field experiments manipulating advertising
levels extremely difficult.
B) The lack of major supermarkets in the Baltic states makes it difficult to conduct field
experiments to determine the effect of in-store promotions on the sales of products.
C) Even when basic infrastructures such as roads, transportation, and warehouse facilities are
adequate, they do not help in achieving desired levels of distribution.
D) Even when experiments are designed, it is difficult to control for the time order of occurrence
of variables and the absence of other possible causal factors, two of the necessary conditions for
causality.
Answer: C
Diff: 3 Page Ref: 240
AACSB: Multicultural and Diversity
LO : 7

23
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
107) Which of the following is an ethical concern associated with doing experiments?
A) how to disguise the purpose of the research in a manner that does not violate the rights of the
respondents
B) how to find respondents for the experiment
C) ensuring that the appropriate experimental design for the problem was used
D) Both A and C are correct.
Answer: D
Diff: 2 Page Ref: 241-242
AACSB: Ethical Reasoning
LO : 8

108) Which of the following is not true about the debriefing procedure?
A) After the data have been collected, the true purpose of the study and the nature of the disguise
should be fully explained to the respondents and they should be given an opportunity to
withdraw their information.
B) Debriefing can alleviate stress and make the experiment a learning experience for the
respondents.
C) Inform the respondents at the beginning that the experiment has been disguised.
D) Both A and C are not true.
Answer: C
Diff: 2 Page Ref: 241-242
AACSB: Ethical Reasoning
LO : 8

Marketing Research: An Applied Orientation, 6e (Malhotra)


Chapter 8 Measurement and Scaling: Fundamentals and Comparative Scaling

1) When we measure the perceptions, attitudes, and preferences of consumers, we are not
measuring the object but some characteristic of it.
Answer: TRUE
Diff: 3 Page Ref: 250
LO : 1

2) In measurement, when assigning numbers to the characteristics there must be a one-to-one


correspondence between the numbers and the characteristics being measured.
Answer: TRUE
Diff: 2 Page Ref: 250
LO : 1

3) Measurement involves creating a continuum upon which measured objects are located.
Answer: FALSE
Diff: 2 Page Ref: 250
LO : 1

4) The four basic scale characteristics are nominal, order, distance and origin.
Answer: FALSE
Diff: 2 Page Ref: 251
LO : 2
24
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
33) From the viewpoint of the respondents, ratio scales are the simplest to use, whereas the
nominal scales are the most complex.
Answer: FALSE
Diff: 1 Page Ref: 262
LO : 3

34) In the four primary scales, the level of measurement increases from ordinal to nominal to
ratio to interval scale. This increase in measurement level is obtained at the cost of complexity.
Answer: FALSE
Diff: 2 Page Ref: 262
LO : 3

35) It is the obligation of the researcher to obtain data that are most appropriate, given the
research questions to be answered.
Answer: TRUE
Diff: 1 Page Ref: 263
LO : 6

36) When ordinal scaled data are collected, statistical procedures developed for use with interval
or ratio data should be used.
Answer: FALSE
Diff: 1 Page Ref: 263
LO : 6

37) ________ is the assignment of numbers or other symbols to characteristics of objects


according to certain pre-specified rules.
A) Ranking
B) Measurement
C) Scaling
D) Rating
Answer: B
Diff: 2 Page Ref: 250
LO : 1

38) ________ is the generation of a continuum upon which measured objects are located.
A) Ranking
B) Measurement
C) Scaling
D) Rating
Answer: C
Diff: 2 Page Ref: 250
LO : 1

29
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
39) Which statement is not correct about measurement?
A) The assignment of numbers to characteristics must be isomorphic.
B) The rules for assigning numbers should be standardized and applied uniformly.
C) The placement of individual companies on the annual revenue continuum represents
measurement.
D) All of the above statements are not true.
Answer: C
Diff: 2 Page Ref: 250
LO : 1

40) Consider a scale from 1 to 100 for locating consumers according to the characteristic
"attitude toward department stores." Each respondent is assigned a number from 1 to 100
indicating the degree of (un)favorableness, with 1 = extremely unfavorable, and 100 = extremely
favorable. ________ is the actual assignment of a number from 1 to 100 to each respondent.
________ is the process of placing the respondents on a continuum with respect to their attitude
toward department stores.
A) Measurement; Scaling
B) Scaling; Ranking
C) Scaling; Measurement
D) Ranking; Measurement
Answer: A
Diff: 2 Page Ref: 250
LO : 1

41) A(n) ________ is a scale whose numbers serve only as labels or tags for identifying and
classifying objects with a strict one-to-one correspondence between the numbers and the objects.
A) ordinal scale
B) interval scale
C) ratio scale
D) nominal scale
Answer: D
Diff: 2 Page Ref: 252
LO : 3

42) When a ________ scale is used for the purpose of identification, there is a strict one-to-one
correspondence between the numbers and the objects.
A) nominal
B) ordinal
C) interval
D) ratio
Answer: A
Diff: 2 Page Ref: 252
LO : 3

30
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
43) When used for classification purposes, the ________ scaled numbers serve as labels for
classes or categories.
A) ordinally
B) intervally
C) nominally
D) ratio scale
Answer: C
Diff: 2 Page Ref: 252
LO : 3

44) Which of the following statistics is not permissible with nominally scaled data (Table 8.1 in
the text)?
A) chi-square
B) median
C) range
D) Both B and C are not permissible.
Answer: D
Diff: 2 Page Ref: 253
LO : 3

45) Which of the following statistics is not permissible with ordinally scaled data (Table 8.1 in
the text)?
A) range
B) mode
C) rank order correlation
D) all of the above
Answer: A
Diff: 3 Page Ref: 253
LO : 3

46) Which of the following statistics is not permissible for interval data (Table 8.1 in the text)?
A) factor analysis
B) harmonic mean
C) binomial test
D) t-tests
Answer: B
Diff: 3 Page Ref: 253
LO : 3

31
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
47) In the department store project, numbers 1 through 10 were assigned to the 10 stores
considered in the study (Table 8.2 in the text). Thus, store number 9 referred to Sears and store
number 6 referred to Neiman Marcus. Using this information, which of the following statements
is true?
A) Sears is in some way superior or inferior to Neiman Marcus.
B) It is meaningful to state that the number of the average store is 5.5.
C) Both A and B are true.
D) None of the above statements are true.
Answer: D
Diff: 2 Page Ref: 253
LO : 3

48) ________ is a ranking scale in which numbers are assigned to objects to indicate the relative
extent to which some characteristic is possessed. Thus it is possible to determine whether an
object has more or less of a characteristic than some other object.
A) Ordinal scale
B) Interval scale
C) Ratio scale
D) Nominal scale
Answer: A
Diff: 2 Page Ref: 254
LO : 3

49) The rankings of teams in a tournament constitute a ________ scale.


A) nominal
B) ordinal
C) interval
D) ratio
Answer: B
Diff: 1 Page Ref: 254
LO : 3

50) In marketing research, ________ scales are used to measure relative attitudes, opinions,
perceptions, and preferences. In the opening example for Chapter 8, this was shown by the rank
order of the most admired companies.
A) nominal
B) ordinal
C) interval
D) ratio
Answer: B
Diff: 2 Page Ref: 254
LO : 3

32
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
51) ________ is a scale in which the numbers are used to rate objects such that numerically
equal distances on the scale represent equal distances in the characteristic being measured.
A) Ordinal scale
B) Interval scale
C) Ratio scale
D) Nominal scale
Answer: B
Diff: 2 Page Ref: 254-255
LO : 3

52) In marketing research, attitudinal data obtained from rating scales are often treated as
________ data.
A) nominal
B) ordinal
C) interval
D) ratio
Answer: C
Diff: 3 Page Ref: 255
LO : 3

53) Which statement is not true about the interval scale?


A) Numerically equal distances on the scale represent equal values in the characteristics being
measured.
B) Both the zero point and the units of measurement are arbitrary.
C) Only proportionate transformations of the form y = bx, where b is a positive constant are
allowed.
D) All of the above are correct.
Answer: C
Diff: 3 Page Ref: 255
LO : 3

54) The ________ is the highest scale. It allows the researcher to identify or classify objects,
rank order the objects, and compare intervals or differences. It is also meaningful to compute
ratios of scale values.
A) ordinal scale
B) interval scale
C) ratio scale
D) nominal scale
Answer: C
Diff: 1 Page Ref: 256
LO : 3

33
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
55) In marketing, sales, cost, market share, and number of customers are variables measured on a
________ scale.
A) nominal
B) ordinal
C) interval
D) ratio
Answer: D
Diff: 1 Page Ref: 256
LO : 3

56) ________ are one of two types of scaling techniques in which there is direct comparison of
stimulus objects with one another.
A) Preference scales
B) Comparative scales
C) Non-comparative scales
D) None of the above
Answer: B
Diff: 2 Page Ref: 257
LO : 4

57) Which of the following statements is not true about the comparative scales technique?
A) An example of using comparative scales is asking respondents to evaluate Coke on a 1 to 6
preference scale.
B) Comparative scale data must be interpreted in relative terms and have only ordinal or rank
order properties.
C) Comparative scaling is also referred to as non-metric scaling.
D) Comparative scales include paired comparisons, rank order, and constant sum scales.
Answer: A
Diff: 2 Page Ref: 257
LO : 4

58) The benefits of comparative scaling includes all of the following except ________.
A) comparative scales involve fewer theoretical assumptions
B) comparative scales are easily understood and can be applied easily
C) comparative scales tend to reduce halo or carryover effects from one judgment to another
D) small differences between stimulus objects can be detected
Answer: C
Diff: 2 Page Ref: 257
LO : 4

59) The disadvantages of comparative scaling includes all of the following except ________.
A) the resulting data are generally assumed to be interval or ratio scaled
B) the inability to generalize beyond the stimulus objects scaled
C) the ordinal nature of the data
D) None of the above are disadvantages.
Answer: A
Diff: 2 Page Ref: 257
LO : 4
34
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
60) Which of the following scales is not a type of comparative scale (Figure 8.2 in the text)?
A) semantic differential
B) constant sum
C) Likert
D) both A and C
Answer: D
Diff: 3 Page Ref: 257
LO : 4

61) ________ are one of two types of scaling techniques in which each stimulus object is scaled
independently of the other objects in the stimulus set.
A) Preference scales
B) Comparative scales
C) Non-comparative scales
D) None of the above
Answer: C
Diff: 2 Page Ref: 257
LO : 4

62) Which of the following is not a type of non-comparative scale?


A) semantic differential
B) constant sum
C) Likert
D) both A and C
Answer: B
Diff: 3 Page Ref: 257
LO : 4

63) Which of the following is a type of comparative scale?


A) continuous rating
B) constant sum
C) itemized rating
D) both A and C
Answer: B
Diff: 3 Page Ref: 257
LO : 4

64) ________ is a comparative scaling technique in which a respondent is presented with two
objects at a time and asked to select one object in the pair according to some criterion. The data
obtained is ordinal in nature.
A) Constant sum
B) Q-sort
C) Paired comparison
D) Rank order
Answer: C
Diff: 1 Page Ref: 257
LO : 4
35
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
65) Paired comparison data can be analyzed in several ways. One way is for the researcher to
calculate the percentage of respondents who prefer one stimulus to another. The researcher can
also perform all of the following analyses on paired comparison data except
A) simultaneous evaluation of all the stimulus objects
B) convert paired comparison data to a rank order
C) derive an interval scale from paired comparison data
D) order a set of objects into an internally consistent, uni-dimensional scale
Answer: D
Diff: 3 Page Ref: 258
LO : 4

66) Which of the following is not one of the suggested modifications of the paired comparison
technique?
A) inclusion of a neutral/no difference opinion response
B) graded paired comparisons
C) obtaining similarity judgments in multidimensional scaling
D) ranked paired comparisons
Answer: D
Diff: 3 Page Ref: 258
LO : 4

67) The most common method of taste testing is paired comparison. A minimum of ________
responses is considered an adequate sample.
A) 500
B) 1000
C) 2000
D) 4000
Answer: B
Diff: 3 Page Ref: 259
LO : 4

68) ________ is a comparative scaling technique in which respondents are presented with
several objects simultaneously and asked to order or rank them according to some criterion.
A) Constant sum
B) Q-sort
C) Paired comparison
D) Rank order
Answer: D
Diff: 1 Page Ref: 259
LO : 4

36
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
69) After paired comparisons, the most popular comparative rating scale is ________.
A) constant sum
B) q-sort
C) metric
D) rank order
Answer: D
Diff: 2 Page Ref: 259
LO : 4

70) ________ scaling and ________ scaling both are comparative in nature. Both result in
ordinal data and might result in the respondent disliking the brand ranked 1 in an absolute sense.
A) Paired comparison; constant sum
B) Rank order; paired comparison
C) Rank order; constant sum
D) Q-sort; constant sum
Answer: B
Diff: 1 Page Ref: 259
LO : 4

71) ________ is a comparative scaling technique in which respondents are required to allocate a
constant sum of units such as point, dollars, chits, stickers, or chips among a set of stimulus
objects with respect to some criterion.
A) Constant sum
B) Q-sort
C) Paired comparison
D) Rank order
Answer: A
Diff: 1 Page Ref: 260
LO : 4

72) If respondents are asked to allocate 100 points to attributes of a toilet soap in a way that
reflects the importance they attach to each attribute, ________ scaling is being used.
A) constant sum
B) q-sort
C) paired comparison
D) rank order
Answer: A
Diff: 1 Page Ref: 260
LO : 4

73) Which statement is true concerning constant sum scaling?


A) It does not have an absolute zero.
B) It allows for fine discrimination among stimulus objects without requiring much time.
C) Respondents may allocate more or fewer units than those specified.
D) Both B and C are correct.
Answer: D
Diff: 2 Page Ref: 261
LO : 4
37
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
74) ________ scaling is a comparative scaling technique that uses a rank order procedure to sort
objects based on similarity with respect to some criterion.
A) Constant sum
B) Q-sort
C) Paired comparison
D) Rank order
Answer: B
Diff: 1 Page Ref: 262
LO : 4

75) ________ is being used if respondents are given 100 attitude statements on individual cards
and asked to place them into 11 piles, ranging from "most highly agreed with" to "least highly
agreed with."
A) Constant sum
B) Q-sort
C) Paired comparison
D) Rank order
Answer: B
Diff: 2 Page Ref: 262
LO : 4

76) When using Q-sort scaling ________ to ________ objects is a reasonable range.
A) 60; 90
B) 90; 140
C) 60; 140
D) 40; 60
Answer: A
Diff: 3 Page Ref: 262
LO : 4

77) ________ is a comparative scaling technique where numbers are assigned to objects such
that ratios between the assigned numbers reflect ratios on the specified criterion.
A) Q-sort scaling
B) Magnitude estimation
C) Guttman scaling
D) Constant sum scaling
Answer: B
Diff: 3 Page Ref: 262
LO : 4

38
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
78) ________ is a procedure for determining whether a set of objects can be ordered into an
internally consistent, uni-dimensional scale.
A) Magnitude estimation
B) Q-sort scaling
C) Guttman scaling
D) None of the above
Answer: C
Diff: 3 Page Ref: 262
LO : 4

79) Which statement is not correct concerning international marketing and the use of
comparative scaling techniques?
A) Opinion formation may not be well crystallized.
B) In some developing countries, preferences can be best measured by using ordinal scales.
C) Respondents in many developed countries, due to higher education and consumer
sophistication levels, are quite used to providing responses on interval and ratio scales.
D) None of the above statements are incorrect.
Answer: D
Diff: 2 Page Ref: 262
LO : 5

80) The Wall Street Journal wanted information on the personality profiles of its readers and
nonreaders? Which of the steps below does not belong in the process used by the Wall Street
Journal to obtain the needed information?
A) Each respondent was given a several cards, each listing one personality characteristic.
B) Respondents are asked to sort cards and to rank order the personality characteristics.
C) Use interval scale data to examine differences in the personality characteristics of readers and
nonreaders and relate them to marketing strategy variables.
D) All of the above statements belong in the process.
Answer: C
Diff: 3 Page Ref: 263
LO : 6

Marketing Research: An Applied Orientation, 6e (Malhotra)


Chapter 9 Measurement and Scaling: Noncomparative Scaling Techniques

1) A noncomparative scale is one of two scaling techniques in which each stimulus object is
scaled independent of the other objects in the stimulus set.
Answer: TRUE
Diff: 2 Page Ref: 273
LO : 1

2) Noncomparative scaling techniques are comprised of continuous and itemized rating scales.
Answer: TRUE
Diff: 2 Page Ref: 273
LO : 1

39
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
46) In a ________, respondents rate the objects by placing a mark at the appropriate position on
a line that runs from one extreme of the criterion variable to the other.
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: C
Diff: 1 Page Ref: 274
LO : 1

47) How would you rate Sears as a department store?

Version 1
Probably the worst - - - - - - I - - - - - - - - - - - - - - - - - - - Probably the best

Version 2
Probably the worst - - - - - - I - - - - - - - - - - - - - - - - - - - Probably the best
0 10 20 30 40 50 60 70 80 90 100

The above scales are all examples of a ________.


A) continuous rating scale
B) Stapel scale
C) Semantic differential scale
D) Likert scale
Answer: A
Diff: 2 Page Ref: 274-275
LO : 1

48) Scores assigned to continuous rating scales by the researcher are typically treated as
________ data.
A) nominal
B) ordinal
C) ratio
D) interval
Answer: D
Diff: 2 Page Ref: 274-275
LO : 1

49) Which non-comparative scale has the advantage of being easy to construct and the
disadvantage of cumbersome scoring unless the scoring is computerized (Table 9.1 in the text)?
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: C
Diff: 3 Page Ref: 274
LO : 1

46
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
50) Which scale is not an itemized rating scale (Table 9.1 in the text)?
A) Stapel scale
B) semantic differential scale
C) Likert scale
D) continuous rating scale
Answer: D
Diff: 1 Page Ref: 274
AACSB: Reflective Thinking
LO : 1

51) Which of the following statements does not pertain to non-comparative scales?
A) Noncomparative scales are often referred to as monadic scales.
B) Respondents using a non-comparative scale employ whatever rating standard seems
appropriate.
C) Data must be interpreted in relative terms and have only ordinal or rank order properties.
D) Non-comparative techniques consist of continuous and itemized rating scales.
Answer: C
Diff: 2 Page Ref: 273-275
AACSB: Reflective Thinking
LO : 1

52) A ________ is a measurement scale with five response categories ranging from "strongly
disagree" to "strongly agree," which requires the respondents to indicate a degree of agreement
or disagreement with each of a series of statements related to the stimulus objects.
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: B
Diff: 1 Page Ref: 276-277
LO : 1

53) The author of your text and his colleagues have developed a scale for measuring Internet
users' information privacy concerns. The Awareness (of Privacy Practices) scale uses seven-
point scales anchored with "strongly disagree" and "strongly agree." This is an example of a
________.
A) continuous rating scale
B) Stapel scale
C) semantic differential scale
D) Likert scale
Answer: D
Diff: 2 Page Ref: 276-277
LO : 1

47
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
54) Neither
agree
Strongly nor Strongly
disagree Disagree disagree Agree agree
1. Sears has poor in-store service 1 2X 3 4 5
2. I like to shop at Sears. 1 2X 3 4 5

The above scale is an example of a ________.


A) continuous rating scale
B) Stapel scale
C) semantic differential scale
D) Likert scale
Answer: D
Diff: 2 Page Ref: 276-277
LO : 1

55) Which non-comparative scale is analyzed using profile analysis?


A) Likert scale
B) semantic differential scale
C) Stapel scale
D) all of the above
Answer: D
Diff: 3 Page Ref: 277-279
AACSB: Analytic Skills
LO : 1

56) Which itemized rating scale takes longer to complete than other itemized rating scales
because respondents have to read each statement?
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: B
Diff: 3 Page Ref: 277
AACSB: Reflective Thinking
LO : 1

57) The Likert scale has several advantages. Which of the following is not an advantage?
A) It does not require a pretest of the adjectives or phrases to ensure bipolarity.
B) Respondents readily understand how to use the scale.
C) It is suitable for mail, telephone, or personal interviews.
D) It is easy to construct and administer.
Answer: A
Diff: 3 Page Ref: 275
AACSB: Reflective Thinking
LO : 1

48
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
58) A ________ is a seven point rating scale with endpoints associated with bi-polar labels that
have semantic meaning.
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: A
Diff: 1 Page Ref: 278-279
LO : 1

59) Sears is:


Powerful -:-:-:-:-X-:-:-: Weak
Unreliable -:-:-:-:-:-X-:-: Reliable

The above scale is an example of a ________ scale.


A) continuous rating
B) Stapel
C) semantic differential
D) Likert
Answer: C
Diff: 1 Page Ref: 278-279
LO : 1

60) The ________ is known for its versatility and is very popular with marketing researchers.
A) continuous rating scale
B) Stapel scale
C) semantic differential scale
D) Likert scale
Answer: C
Diff: 3 Page Ref: 278-279
LO : 1

61) A ________ is a scale for measuring attitudes that consists of a single adjective in the middle
of an even-numbered range of values, from -5 to +5, without a neutral point (zero).
A) semantic differential scale
B) Likert scale
C) continuous rating scale
D) Stapel scale
Answer: D
Diff: 2 Page Ref: 279
LO : 1

49
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
62) Which scale asks the respondent to indicate how accurately or inaccurately each term
describes the object by selecting an appropriate numerical response category?
A) continuous rating scale
B) Stapel scale
C) semantic differential scale
D) Likert scale
Answer: B
Diff: 3 Page Ref: 279
LO : 1

63) The data obtained by using a Stapel scale can be analyzed in the same way as a ________.
A) continuous rating scale
B) Constant sum scale
C) semantic differential scale
D) Ranking scale
Answer: C
Diff: 3 Page Ref: 279
AACSB: Analytic Skills
LO : 1

64) The ________ is confusing and difficult to apply. It is the least used of the itemized scales.
A) continuous rating scale
B) Stapel scale
C) semantic differential scale
D) Likert scale
Answer: B
Diff: 3 Page Ref: 279
LO : 1

65) Which of the following statements is not a consideration when making non-comparative
itemized rating scale decisions?
A) the number of scale categories to use
B) forced versus non-forced choice
C) the order of the scale questions
D) balanced versus unbalanced scales
Answer: C
Diff: 2 Page Ref: 280
AACSB: Reflective Thinking
LO : 2

50
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
66) Which statement is not true if deciding on the number of scale categories to use in a non-
comparative itemized rating scale?
A) Traditional guidelines suggest that the appropriate number of categories should be seven plus
or minus two: between five and nine.
B) The smaller the number of scale categories, the finer the discrimination among stimulus
objects that is possible.
C) If the respondents are not very knowledgeable or not involved with the task, fewer categories
should be used.
D) How the data are to be analyzed and used should also influence the number of categories.
Answer: B
Diff: 3 Page Ref: 280
AACSB: Reflective Thinking
LO : 2

67) Which statement is true if deciding on the number of scale categories to use in a non-
comparative itemized rating scale?
A) If the respondents are interested in the scaling task and are knowledgeable about the objects, a
larger number of categories may be employed.
B) Space limitations may restrict the number of categories in mail questionnaires.
C) If telephone interviews are involved, many categories may confuse the respondents.
D) All of the statement above are true.
Answer: D
Diff: 2 Page Ref: 280
AACSB: Reflective Thinking
LO : 2

68) Which statement is not true when deciding on whether to use balanced or unbalanced scales
when developing a non-comparative itemized rating scale?
A) The scale should be balanced to obtain objective data.
B) In a balanced scale, the number of favorable and unfavorable categories are equal.
C) If the distribution of responses is likely to be skewed, either positively or negatively, a
balanced scale with more categories in the direction of skewness may be appropriate.
D) If an unbalanced scale is used, the nature and degree of unbalance in the scale should be taken
into account in data analysis.
Answer: C
Diff: 3 Page Ref: 280
AACSB: Reflective Thinking
LO : 2

51
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
69) Which statement is not true when deciding on whether to use an odd or even number of
categories when developing a non-comparative itemized rating scale?
A) With an odd number of categories, the middle scale position is generally designated neutral or
impartial.
B) The decision to use an odd or even number of categories depends on whether some of the
respondents may be neutral on the response being measured.
C) A rating scale with an even number of categories should be used if the researcher wants to
force a response.
D) All of the above statements are true.
Answer: D
Diff: 1 Page Ref: 281
AACSB: Reflective Thinking
LO : 2

70) Deciding whether to present scales as vertical or horizontal is related to which of the non-
comparative itemized rating scale decisions?
A) number of scale categories
B) physical form or configuration
C) odd or even number of categories
D) nature and degree of verbal description
Answer: B
Diff: 1 Page Ref: 281
LO : 2

71) The scale descriptors "very bad," "bad," "neither bad nor good," "good," and "very good" are
commonly used when studying the ________ construct (Table 9.3 in the text).
A) attitude
B) satisfaction
C) purchase frequency
D) purchase intent
Answer: A
Diff: 2 Page Ref: 283
LO : 2

72) The scale descriptors "never," "rarely," "sometimes," "often," and "very often" are
commonly used when studying the ________ construct (Table 9.3 in the text).
A) attitude
B) satisfaction
C) purchase frequency
D) purchase intent
Answer: C
Diff: 2 Page Ref: 283
LO : 2

52
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
73) ________ is the first step in developing a multi-item scale. ________ is the last step.
A) Generate an initial pool of items; Prepare the final scale
B) Develop a theory; Prepare a final scale
C) Develop a theory; Develop a purified scale
D) Generate an initial pool of items; Develop a purified scale
Answer: B
Diff: 2 Page Ref: 284
LO : 2

74) A multi-item scale should be evaluated for accuracy and applicability. This involves an
assessment of all of the following except ________.
A) reliability
B) generalizability
C) stability
D) validity
Answer: C
Diff: 2 Page Ref: 284
LO : 2

75) Validity can be assessed by examining all of the following except ________.
A) item validity
B) content validity
C) criterion validity
D) construct validity
Answer: A
Diff: 2 Page Ref: 285
LO : 3

76) ________ is the variation in the information sought by the researcher and the information
generated by the measurement process employed.
A) Systematic error
B) Measurement error
C) Random error
D) Variable error
Answer: B
Diff: 3 Page Ref: 286
LO : 3

53
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
77) Which of the following is not an approach to assess multi-item scale reliability?
A) test-retest reliability
B) construct reliability
C) alternative forms reliability
D) internal consistency reliability
Answer: B
Diff: 2 Page Ref: 286
LO : 3

78) XO = XT + XS + XR
In the true score model shown above, XT represents ________.
A) random error
B) the observed score or measurement
C) the true score of the characteristic
D) systematic error
Answer: C
Diff: 2 Page Ref: 286
AACSB: Analytic Skills
LO : 3

79) Situational factors, such as the lack of clarity of the scale, including the instructions or the
items themselves, and analysis factors, such as differences in scoring and statistical analysis are
both ________ in measurement.
A) random error
B) potential sources of reliability
C) potential sources of error
D) systematic error
Answer: C
Diff: 3 Page Ref: 286
LO : 3

80) ________ represents stable factors that affect the observed score in the same way each time
the measurement is made, such as mechanical factors (see Fig. 9.6 in the text).
A) Systematic error
B) Measurement error
C) Random error
D) Variable error
Answer: A
Diff: 2 Page Ref: 286
LO : 3

54
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
81) ________ is not constant. It represents transient factors that affect the observed score in
different ways each time the measurement is made, such as transient personal or situational
factors.
A) Systematic error
B) Measurement error
C) Random error
D) Variable error
Answer: C
Diff: 2 Page Ref: 286
LO : 3

82) ________ is the extent to which a scale produces consistent results if repeated measurements
are made on the characteristic.
A) Validity
B) Generalizability
C) Reliability
D) None of the above
Answer: C
Diff: 3 Page Ref: 286
LO : 3

83) A measure is perfectly reliable if ________.


A) XO = 0
B) XT = 0
C) XS = 0
D) XR = 0
Answer: D
Diff: 2 Page Ref: 286
AACSB: Analytic Skills
LO : 3

84) ________ is an approach for assessing reliability in which respondents are administered
identical sets of scale items at two different times under as nearly equivalent conditions as
possible.
A) Internal consistency reliability
B) Split-half reliability
C) Test-retest reliability
D) Alternative-forms reliability
Answer: C
Diff: 2 Page Ref: 286-287
LO : 3

55
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
85) In ________ the degree of similarity between two measurements is determined by computing
a correlation coefficient. The higher the correlation coefficient, the greater the reliability.
A) test-retest reliability
B) internal consistency reliability
C) coefficient alpha
D) coefficient beta
Answer: A
Diff: 3 Page Ref: 286-287
AACSB: Analytic Skills
LO : 3

86) There are several problems associated with the test-retest approach to determining reliability.
If measuring respondents' attitude toward low-fat milk may cause them to become more health
conscious and develop a more positive attitude toward low-fat milk, then there is a problem with
________.
A) the time interval between testing
B) the initial measurement altering the characteristic being measured
C) it being impossible to make repeated measurements
D) the first measurement having a carryover effect to the second or subsequent measurements
Answer: B
Diff: 3 Page Ref: 286-287
AACSB: Analytic Skills
LO : 3

87) Which of the following is not a problem with alternative-forms reliability?


A) The results will depend on how the scale items are split.
B) It is time consuming and expensive to construct an equivalent form of the scale.
C) It is difficult to construct two equivalent forms of a scale.
D) Both B and C are correct.
Answer: A
Diff: 3 Page Ref: 287
AACSB: Analytic Skills
LO : 3

88) ________ is an approach for assessing the internal consistency of the set of items when
several items are summated in order to form a total score for the scale.
A) Internal consistency reliability
B) Split-half reliability
C) Test-retest reliability
D) Alternative-forms reliability
Answer: A
Diff: 1 Page Ref: 287
LO : 3

56
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
89) ________ is a form of internal consistency reliability in which the items constituting the
scale are divided into two halves and the resulting half scores are correlated.
A) Internal consistency reliability
B) Split-half reliability
C) Test-retest reliability
D) Alternative-forms reliability
Answer: B
Diff: 1 Page Ref: 287
LO : 3

90) ________ is a measure of internal consistency reliability that is the average of all possible
split-half coefficients resulting from different splittings of the scale items.
A) Coefficient delta
B) Coefficient alpha
C) Coefficient beta
D) Coefficient eta
Answer: B
Diff: 2 Page Ref: 287
LO : 3

91) ________ is the extent to which differences in observed scale scores reflect true differences
among objects on the characteristics being measured, rather than systematic or random errors.
A) Validity
B) Generalizability
C) Reliability
D) None of the above
Answer: A
Diff: 3 Page Ref: 288
LO : 3

92) ________ is a type of validity, sometimes called face validity, that consists of a subjective
but systematic evaluation of the representativeness of the content of a scale for the measuring
task at hand.
A) Construct validity
B) Content validity
C) Criterion validity
D) Internal consistency validity
Answer: B
Diff: 3 Page Ref: 288
LO : 3

57
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
93) A scale designed to measure store image would be considered inadequate if it omitted any of
the major dimensions (quality, variety, assortment of merchandise, etc.). This inadequacy would
be reflected in the ________ of the scale.
A) construct validity
B) content validity
C) criterion validity
D) internal consistency validity
Answer: B
Diff: 3 Page Ref: 288
AACSB: Analytic Skills
LO : 3

94) ________ is a type of validity that examines whether the measurement scale performs as
expected in relation to other variables selected as meaningful criteria.
A) Construct validity
B) Content validity
C) Criterion validity
D) Internal consistency validity
Answer: C
Diff: 3 Page Ref: 288
LO : 3

95) ________ is assessed when the data on the scale being evaluated on the criterion variables
are collected at the same time.
A) Convergent validity
B) Predictive validity
C) Concurrent validity
D) Discriminant validity
Answer: C
Diff: 2 Page Ref: 288
LO : 3

96) To assess ________, a type of criterion validity, the researcher collects data on the scale at
one point in time and data on the criterion variables at a future time.
A) convergent validity
B) predictive validity
C) concurrent validity
D) discriminant validity
Answer: B
Diff: 2 Page Ref: 288
LO : 3

58
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
97) ________ is a type of validity that addresses the question of what construct or characteristic
the scale is measuring. An attempt is made to answer theoretical questions of why a scale works
and what deductions can be made concerning the theory underlying the scale.
A) Construct validity
B) Content validity
C) Criterion validity
D) Internal consistency validity
Answer: A
Diff: 1 Page Ref: 288
LO : 3

98) ________ is a measure of construct validity that measures the extent to which the scale
correlates positively with other measures of the same construct.
A) Convergent validity
B) Discriminant validity
C) Nomological validity
D) Concurrent validity
Answer: A
Diff: 3 Page Ref: 289
LO : 3

99) ________ is a type of construct validity that assesses the extent to which a measure does not
correlate with other constructs from which it is supposed to differ.
A) Convergent validity
B) Discriminant validity
C) Nomological validity
D) Concurrent validity
Answer: B
Diff: 3 Page Ref: 289
LO : 3

100) ________ is the a type of validity that assesses the relationship between theoretical
constructs. It seeks to confirm significant correlations between the constructs as predicted by
theory.
A) Convergent validity
B) Discriminant validity
C) Nomological validity
D) Concurrent validity
Answer: C
Diff: 3 Page Ref: 289
LO : 3

59
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
101) Which statement is not true regarding the relationship between reliability and validity?
A) If a measure is perfectly valid, it is also perfectly reliable.
B) Unreliability implies invalidity.
C) If a measure is perfectly reliable, it is perfectly valid.
D) Reliability is a necessary, but not sufficient, condition for validity.
Answer: C
Diff: 2 Page Ref: 289
AACSB: Reflective Thinking
LO : 3

102) ________ is the degree to which a study based on a sample applies to a universe of
generalizations.
A) Validity
B) Generalizability
C) Reliability
D) None of the above
Answer: B
Diff: 1 Page Ref: 289-290
LO : 3

103) Which statement about generalizability is not true?


A) The set of all conditions of measurement over which the investigator wishes to generalize is
the universe of generalizations.
B) In generalizability studies, measurement procedures are designed to investigate the universes
of interest by sampling conditions of measurement from each of them.
C) To generalize to other universes, facet theory procedures must be employed.
D) Traditional reliability methods can be viewed as single-facet generalizability studies.
Answer: C
Diff: 3 Page Ref: 289-290
AACSB: Reflective Thinking
LO : 3

104) When choosing a scaling technique, which of the following factors should be considered?
A) the capabilities of the respondents
B) the levels of information needed (nominal, ordinal, interval, or ratio)
C) the method of administration
D) all of the above
Answer: D
Diff: 1 Page Ref: 290
AACSB: Reflective Thinking
LO : 3

60
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
105) When developing scales for international research, the researcher must pay special attention
to details that can make the measurement instrument specific to the country in which the
instrument will be used. Which of the following should be of concern to the marketing
researcher when developing scales for international research?
A) Special attention should be devoted to determining equivalent verbal descriptors in different
languages and cultures.
B) Scale endpoints and the verbal descriptors should be employed in a manner that is consistent
with the culture.
C) It is critical to establish the equivalence of scales and measures used to obtain data from
different countries.
D) All of the above are correct.
Answer: D
Diff: 2 Page Ref: 290-291
AACSB: Multicultural and Diversity
LO : 4

106) A researcher developed scales using a 7-point scale with anchor descriptors of "horrible"
and "good." This researcher has created an ethical violation in the area of ________.
A) generalizability
B) bias
C) validity
D) none of the above
Answer: C
Diff: 2 Page Ref: 291
AACSB: Ethical Reasoning
LO : 5

Marketing Research: An Applied Orientation, 6e (Malhotra)


Chapter 10 Questionnaire and Form Design

1) A standardized questionnaire or form will ensure comparability of the data, increase speed and
accuracy of recording, and facilitate data processing.
Answer: TRUE
Diff: 1 Page Ref: 303
LO : 1

2) Another name for questionnaire is schedule instrument.


Answer: FALSE
Diff: 2 Page Ref: 303
LO : 1

3) A questionnaire is an informal set of questions for obtaining information from respondents.


Answer: FALSE
Diff: 1 Page Ref: 303
LO : 1

4) Two apparently similar ways of posing a question always yields the same information.

61
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
54) According to your test, SurveySite recruited 87 American and Canadian Web sites to
participate in a study to determine what design features and experiences make visitors return to a
site. The results of the survey found that ________ was the most important factor in determining
whether or not a site would receive repeat visit visitors.
A) whether or not the respondent found the site visit enjoyable
B) content
C) quality of the organization of the site and its degree of uniqueness
D) frivolous content
Answer: B
Diff: 2 Page Ref: 302
AACSB: Use of IT
LO : 6

55) Typically, a questionnaire is only one element of a data-collection package that might also
include all of the following except ________.
A) some reward
B) communication aids
C) a data code book
D) fieldwork procedures
Answer: C
Diff: 3 Page Ref: 303
AACSB: Reflective Thinking
LO : 1

56) Which of the following is not an objective of a questionnaire?


A) A questionnaire must translate the information needed into a set of specific questions that the
respondents can and will answer.
B) A questionnaire must be easy to use.
C) A questionnaire must uplift, motivate, and encourage the respondent to become involved in
the interview, to cooperate, and to complete the interview.
D) A questionnaire should minimize response error.
Answer: B
Diff: 2 Page Ref: 303
LO : 1

57) Which of the following is not a part of the questionnaire design process?
A) Specify the type of interviewing method.
B) Arrange questions in proper order.
C) Reproduce the questionnaire.
D) Develop sampling plan.
Answer: D
Diff: 1 Page Ref: 303
LO : 2

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58) The great weakness of questionnaire design is lack of ________.
A) precision
B) accuracy
C) theory
D) consensus
Answer: C
Diff: 2 Page Ref: 303
LO : 2

59) The first step in the questionnaire design process is ________.


A) specify the type of interview method
B) identify the form and layout
C) specify the information needed
D) determine the content of individual questions
Answer: C
Diff: 2 Page Ref: 303
LO : 2

60) When developing a questionnaire, to ensure that the information obtained fully addresses all
components of the problem, the researcher should ________.
A) review components of the problem and the approach
B) prepare a set of dummy tables
C) have a clear idea of the target population
D) all of the above
Answer: D
Diff: 2 Page Ref: 304
LO : 2

61) A ________ describes how the analysis will be structured once the data have been collected.
A) dummy table
B) analysis table
C) dummy plan
D) none of the above
Answer: A
Diff: 2 Page Ref: 304
LO : 2

62) The type of method influences questionnaire design. Considering how the questionnaire is
administered under each method, which method is most appropriate if lengthy, complex, and
varied questions need to be asked?
A) mail questionnaire
B) telephone interview
C) personal interview
D) Internet questionnaire
Answer: C
Diff: 2 Page Ref: 305-306
AACSB: Reflective Thinking
LO : 2
70
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63) If you are deciding between personal interviews or computer-assisted interviewing, you are
at which step of the questionnaire design process?
A) Specify the type of interviewing method.
B) Determine the content of individual questions.
C) Arrange the questions in proper order.
D) Eliminate bugs by pretesting.
Answer: A
Diff: 1 Page Ref: 305-306
LO : 2

64) Deciding if a question is necessary or if several questions are needed rather than one are
decisions involved with ________.
A) determining the order of scales
B) choosing question wording
C) choosing question structure
D) individual question content
Answer: D
Diff: 2 Page Ref: 306-307
LO : 2

65) "Do you think Coca-Cola is a tasty and refreshing soft drink?" is an example of a ________.
A) structured question
B) dichotomous question
C) double-barreled question
D) branching question
Answer: C
Diff: 2 Page Ref: 307
LO : 2

66) A ________ is a single question that attempts to cover two issues.


A) structured question
B) dichotomous question
C) double-barreled question
D) branching question
Answer: C
Diff: 1 Page Ref: 307
LO : 2

71
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67) When determining if a question is necessary, in some situations it may be necessary to ask
questions that are not directly related to the information that is needed. Which of the reasons
stated below were given in your text as reasons why questions not related to the information
needed might be included in the questionnaire?
A) to establish involvement and rapport
B) to disguise the purpose or sponsorship of the project
C) to generate client support for the project
D) all of the above
Answer: D
Diff: 3 Page Ref: 306-307
AACSB: Reflective Thinking
LO : 2

68) Most "why" questions about the use of a product or choice alternative involve two aspects:
________ and ________.
A) attributes of the product; influences leading to knowledge of the product
B) attributes of the product; how the product is used
C) how the product is used; influences leading to knowledge of the product
D) none of the above
Answer: A
Diff: 3 Page Ref: 307
AACSB: Reflective Thinking
LO : 2

69) ________ that measure familiarity, product use, and past experience should be asked before
questions about the topics themselves.
A) Branching questions
B) Filler questions
C) Dichotomous questions
D) Filter questions
Answer: D
Diff: 2 Page Ref: 308
LO : 2

70) "Is the respondent informed?", "Can the respondent remember?", and "Can the respondent
articulate?", are all questions asked in the ________ stage of the questionnaire design process.
A) overcoming unwillingness to answer
B) specify the type of interviewing method
C) overcoming inability to answer
D) choosing question wording
Answer: C
Diff: 2 Page Ref: 308
LO : 2

72
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71) Respondents' inability to remember leads to three types of error. Which of the errors listed
below is not mentioned in the text as one of the types of errors created by respondents?
A) telescoping
B) creation error
C) recall error
D) omission error
Answer: C
Diff: 3 Page Ref: 308-309
AACSB: Reflective Thinking
LO : 2

72) The respondents' ability to remember an event is influenced by all of the following
except________.
A) the event itself
B) the time elapsed since the event
C) the presence or absence of events that would aid memory
D) where you were when the event occurred
Answer: D
Diff: 2 Page Ref: 308-309
AACSB: Reflective Thinking
LO : 2

73) Which of the following is not a reason why a respondent might be unwilling to answer a
particular question?
A) The respondent may not be informed.
B) Too much effort is required.
C) The situation or context may not seem appropriate for disclosure.
D) No legitimate purpose or need for the information requested is apparent.
Answer: A
Diff: 2 Page Ref: 309-311
AACSB: Reflective Thinking
LO : 2

74) When trying to overcome respondents' unwillingness to answer, the researcher might list the
possible responses a respondent might make. More specifically, the list is an effort by the
researcher to ________.
A) increasing the unwillingness of respondents
B) obtain sensitive information
C) put the information request in context
D) reduce the effort required of the respondents
Answer: D
Diff: 2 Page Ref: 309-311
LO : 2

73
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75) Sally was reluctant to answer questions about her personal hygiene until she saw that the
survey was sponsored by the American Medical Association. Sally's understanding of who
sponsored the survey helped with which aspect of "overcoming the respondent's unwillingness to
answer"?
A) legitimate purpose
B) context
C) sensitive information
D) increasing the willingness of the respondent
Answer: A
Diff: 2 Page Ref: 309-311
AACSB: Analytic Skills
LO : 2

76) All of the statements below are ways in which the researcher can encourage respondents to
provide information they are unwilling to give except ________.
A) preface the question with a statement that the behavior of interest is common
B) provide response categories rather than asking for specific figures
C) use randomized techniques
D) all of the above
Answer: D
Diff: 3 Page Ref: 309-311
AACSB: Reflective Thinking
LO : 2

77) ________ refer to open-ended questions that respondents answer in their own words.
A) Dichotomous questions
B) Structured questions
C) Unstructured questions
D) Branching questions
Answer: C
Diff: 1 Page Ref: 311
LO : 2

78) "Describe your college experience" and "What is your occupation?" are ________ questions.
A) dichotomous
B) filter
C) structured
D) unstructured
Answer: D
Diff: 2 Page Ref: 311
LO : 2

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79) Which of the following statements is not an advantage of unstructured questions?
A) Unstructured questions are good as first questions on a topic.
B) Implicitly, unstructured questions give extra weight to respondents who are more articulate.
C) Unstructured questions have a much less biasing influence on response than structured
questions.
D) Unstructured questions are useful in exploratory research.
Answer: B
Diff: 3 Page Ref: 311
AACSB: Reflective Thinking
LO : 2

80) Which of the following statements is not a disadvantage of unstructured questions?


A) Unstructured questions are not suitable for self-administered questionnaires.
B) Coding of responses is costly and time consuming.
C) Unstructured questions have a much less biasing influence on response than structured
questions.
D) Implicitly, unstructured questions give extra weight to respondents who are more articulate.
Answer: C
Diff: 1 Page Ref: 311
AACSB: Reflective Thinking
LO : 2

81) Which of the following statements is not true about unstructured questions?
A) Open-ended questions are useful in exploratory research.
B) Precoding can overcome some of the disadvantages of unstructured questions.
C) Open-ended questions are useful as opening questions.
D) Unstructured questions can suffer from order or position bias.
Answer: D
Diff: 2 Page Ref: 311-312
AACSB: Reflective Thinking
LO : 2

82) ________ specify the set of response alternatives and the response format.
A) Filter questions
B) Structured questions
C) Unstructured questions
D) Branching questions
Answer: B
Diff: 1 Page Ref: 312
LO : 2

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83) Which of the following is not a type of structured question?
A) multiple choice
B) dichotomous
C) scale
D) none of the above
Answer: D
Diff: 1 Page Ref: 312
LO : 2

84) When developing questionnaire questions, if you are considering order position bias and the
set of all possible response alternatives, you are developing ________ questions.
A) multiple choice
B) dichotomous
C) scale
D) branching
Answer: A
Diff: 2 Page Ref: 312
LO : 2

85) Which of the following statements is not a disadvantage of structured questions?


A) Coding and processing of data are much less costly and time consuming.
B) Considerable effort is required to design effective multiple choice questions.
C) Showing respondents the list of possible answers produces biased responses.
D) It is difficult to obtain information on alternatives not listed.
Answer: A
Diff: 1 Page Ref: 312-313
AACSB: Reflective Thinking
LO : 2

86) What is the one acute problem of dichotomous questions?


A) There is potential for position bias.
B) It is difficult to obtain information on alternatives not listed.
C) The response can be influenced by the wording of the question.
D) none of the above
Answer: C
Diff: 2 Page Ref: 312-313
LO : 2

87) ________ is the translation of the desired question content and structure into words that
respondents can clearly and easily understand.
A) The questionnaire design process
B) Question wording
C) Overcoming inability to answer
D) Determining the content of individual questions
Answer: B
Diff: 2 Page Ref: 314
LO : 2

76
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88) When developing a questionnaire, the following guidelines: (1) use positive and negative
statements, (2) avoid implicit alternatives, and (3) avoid leading questions, are used when
________.
A) arranging questions in proper order
B) choosing question wording
C) designing questions to overcome the respondent's inability to answer
D) determining the content of individual questions
Answer: B
Diff: 2 Page Ref: 314
LO : 2

89) When developing a questionnaire, the six Ws (who, what, when, where, why, and way) are
used when ________.
A) defining the issue
B) choosing question wording
C) avoiding generalizations and estimates
D) determining the content of individual questions
Answer: A
Diff: 2 Page Ref: 314
LO : 2

90) Choosing between the questions "Do you think the distribution of soft drinks is adequate?"
(Incorrect) and "Do you think soft drinks are readily available when you want to buy them?"
(Correct) are examples of situations that pertain to ________.
A) avoiding leading questions
B) avoiding ambiguous words
C) using positive and negative statements
D) using ordinary words
Answer: D
Diff: 2 Page Ref: 315
AACSB: Analytic Skills
LO : 2

91) Which of the words below is an ambiguous word?


A) once
B) never
C) often
D) none of the above
Answer: C
Diff: 1 Page Ref: 315
LO : 2

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92) When developing a questionnaire, if the researcher is asking him/herself if the word means
what he/she intended; if it has any other meanings; if the word has more than one pronunciation;
or if a simpler phrase is suggested, then he/she is probably concerned with ________.
A) avoiding leading questions
B) avoiding ambiguous words
C) using defining the issue
D) using ordinary words
Answer: B
Diff: 3 Page Ref: 315
LO : 2

93) A ________ is a question that gives the respondent a clue as to what answer is desired or
leads the respondent to answer in a certain way.
A) leading question
B) implicit alternative
C) filter question
D) structured question
Answer: A
Diff: 3 Page Ref: 316
LO : 2

94) Which of the following statements is correct about implicit alternatives?


A) Making an implied alternative explicit may increase the percentage of people selecting that
alternative.
B) When alternatives are close in preference or large in number, the alternatives at the end of the
list have a greater chance of being selected.
C) The split ballot technique should be used to rotate the order in which a list of alternatives
appear.
D) All of the above are correct.
Answer: D
Diff: 3 Page Ref: 316
AACSB: Analytic Skills
LO : 2

95) "Do you like to fly when traveling short distances?" is an example of a(n) ________.
A) implicit assumption
B) implicit alternative
C) generalization
D) All of the above are correct.
Answer: B
Diff: 3 Page Ref: 316
LO : 2

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96) "Are you in favor of a balanced budget?" is an example of a(n) ________.
A) implicit assumption
B) implicit alternative
C) generalization
D) All of the above are correct.
Answer: A
Diff: 3 Page Ref: 316
LO : 2

97) The statement "Questions should be specific, not general." pertains to the ________ aspect of
questionnaire development.
A) avoid implicit assumptions
B) avoid implicit alternatives
C) avoid generalizations and estimates
D) use unambiguous words
Answer: C
Diff: 2 Page Ref: 317
LO : 2

98) The information that is of the most importance to the research project and should be obtained
first is ________.
A) qualifying information
B) identification information
C) basic information
D) classification information
Answer: C
Diff: 3 Page Ref: 317-319
LO : 2

99) ________ is information that relates directly to the research problem.


A) Qualifying information
B) Identification information
C) Basic information
D) Classification information
Answer: C
Diff: 2 Page Ref: 317-319
LO : 2

100) ________ is socioeconomic and demographic characteristics used to classify respondents.


A) Qualifying information
B) Identification information
C) Basic information
D) Classification information
Answer: D
Diff: 3 Page Ref: 317-319
LO : 2

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101) ________ is a type of information obtained in a questionnaire that includes name, address,
and phone number.
A) Qualifying information
B) Identification information
C) Basic information
D) Classification information
Answer: B
Diff: 3 Page Ref: 317-319
LO : 2

102) Which of the following statements is true about difficult questions?


A) Difficult questions should be placed at the end of the section on basic information.
B) Difficult questions should be placed at the end of the identification section.
C) Difficult questions should be placed at the end of the classification section.
D) All of the statements are correct.
Answer: D
Diff: 2 Page Ref: 317-319
AACSB: Reflective Thinking
LO : 2

103) Which statement is correct concerning the effect on subsequent questions?


A) As a rule of thumb, general questions should precede specific questions to prevent specific
questions from biasing responses to general questions.
B) The inverted funnel approach is useful when respondents have no strong feelings or have not
formulated a point of view.
C) The inverted funnel approach is particularly useful when information has to be obtained about
respondents' general choice behavior and their evaluations of specific products.
D) All are correct.
Answer: D
Diff: 2 Page Ref: 317-319
AACSB: Analytic Skills
LO : 2

104) ________ are questions used to guide an interviewer through a survey by directing the
interviewer to different spots on the questionnaire depending on the answers given.
A) Leading questions
B) Branching questions
C) Opening questions
D) Multiple choice questions
Answer: B
Diff: 2 Page Ref: 319
LO : 2

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105) Experiments on mail questionnaires for census of population revealed what about
questionnaire form and layout?
A) Questions at the top of the page received more attention than those placed at the bottom.
B) Sensitive information placed at the end of the questionnaire was answered more frequently
than sensitive information placed elsewhere.
C) Instructions printed in red made little difference except that they made the questionnaire
appear more complicated to the respondents.
D) Both A and C are correct.
Answer: D
Diff: 2 Page Ref: 320
LO : 2

106) Which of the following practices should be avoided when reproducing the questionnaire?
A) If the printed questionnaire runs to several pages, it should take the form of a booklet.
B) Sideways formatting and splitting should be done to conserve space.
C) Directions or instructions should be placed as close to the questions as possible.
D) Surveys directed at different respondent groups can be reproduced on different colored paper.
Answer: B
Diff: 2 Page Ref: 321
AACSB: Reflective Thinking
LO : 2

107) ________ is the testing of the questionnaire on a small sample of respondents for the
purpose of improving the questionnaire by identifying and eliminating potential problems.
A) Funneling
B) Telescoping
C) Posttesting
D) Pretesting
Answer: D
Diff: 2 Page Ref: 322
LO : 2

108) Which statement is not true about pretests?


A) To the extent possible, a pretest should involve administering the questionnaire in an
environment and context similar to that of the actual survey.
B) A variety of interviewers should be used for pretests.
C) The project director, the researcher who developed the questionnaire, and other key members
of the research team should conduct some pretest interviews.
D) It is a good practice to employ only experienced interviewers to conduct pretests.
Answer: D
Diff: 3 Page Ref: 322
AACSB: Reflective Thinking
LO : 2

81
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109) Observational forms should specify the who, what, and when of the behavior to be
observed. The forms should also specify all of the items below except
A) where
B) whether
C) why
D) way
Answer: B
Diff: 2 Page Ref: 326
LO : 3

110) Which of the following statements are true concerning questionnaire design for
international marketing research?
A) The questionnaire may have to be suitable for administration by more than one method.
B) It is desirable to have two or more simple questions rather than a single complex question.
C) Unstructured or open-ended questions should be used with caution in countries with high
illiteracy rates.
D) All of the above statements are true.
Answer: D
Diff: 2 Page Ref: 326-327
AACSB: Multicultural and Diversity
LO : 4

111) According to the guidelines of the Professional Marketing Research Society of Canada,
with the exception of ________, questionnaires that take more than ________ minutes to
complete are generally considered "overly" long.
A) in-home personal interviews; 60
B) computer-assisted personal interviews; 60
C) in-home personal interviews; 30
D) computer-assisted personal interviews; 30
Answer: C
Diff: 3 Page Ref: 327-328
AACSB: Ethical Reasoning
LO : 5

Marketing Research: An Applied Orientation, 6e (Malhotra)


Chapter 11 Sampling: Design and Procedures

1) The inferences that link sample characteristics and population parameters are estimation
procedures and tests of hypotheses.
Answer: TRUE
Diff: 3 Page Ref: 339
LO : 1

2) A census can greatly decrease nonsampling error.


Answer: FALSE
Diff: 2 Page Ref: 339
LO : 1

82
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36) The researcher has the ethical obligation to protect the identities of the respondents, even if it
means limiting the level of sampling detail that is reported to the client and other parties.
Answer: TRUE
Diff: 2 Page Ref: 362-363
AACSB: Ethical Reasoning
LO : 8

37) There are several basic questions involved in sampling design. "Should a sample be taken?
If so, what process should be followed?" are two such questions. Which of the following
questions is also involved in sampling design?
A) What kind of sample should be taken?
B) How large should the sample be?
C) What can be done to control and adjust for nonresponse errors?
D) All of the above are correct.
Answer: D
Diff: 3 Page Ref: 317
AACSB: Reflective Thinking
LO : 2

38) The aggregate of all the elements, sharing some common set of characteristics, that
comprises the universe for the purpose of the marketing problem is the ________.
A) population
B) sampling frame
C) element
D) census
Answer: A
Diff: 2 Page Ref: 318
LO : 2

39) A complete enumeration of the elements of a population or study objects is a ________.


A) population
B) target population
C) element
D) census
Answer: D
Diff: 1 Page Ref: 319
LO : 2

40) A subgroup of the elements of the population selected for participation in the study is a
________.
A) judgmental sample
B) sample
C) sampling unit
D) sampling frame
Answer: B
Diff: 2 Page Ref: 319
LO : 2

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41) Which of the following conditions does not favor the use of a census (Table 11.1 in the
text)?
A) There is high variance in the characteristic to be measured.
B) The cost of nonsampling errors is low.
C) The population is large.
D) The cost of sampling errors is high.
Answer: C
Diff: 3 Page Ref: 319
AACSB: Reflective Thinking
LO : 2

42) Which of the following conditions does not favor the use of a sample (Table 11.1 in the
text)?
A) There are budget and time limit constraints.
B) The population is large.
C) The cost of nonsampling errors is high.
D) The cost of sampling errors is high.
Answer: D
Diff: 3 Page Ref: 319
AACSB: Reflective Thinking
LO : 2

43) The collection of elements or objects that possess the information sought by the researcher
and about which inferences are to be made is a ________.
A) population
B) target population
C) element
D) census
Answer: B
Diff: 2 Page Ref: 340
LO : 2

44) The object that possesses the information sought by the researcher and about which
inferences are to be made is a ________.
A) population
B) target population
C) element
D) census
Answer: C
Diff: 3 Page Ref: 340
LO : 2

89
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45) The basic unit containing the elements of the population to be sampled is the ________.
A) judgmental sample
B) sample
C) sampling unit
D) sampling frame
Answer: C
Diff: 2 Page Ref: 340
LO : 2

46) Which statement is correct about defining the target population?


A) Imprecise definition of the target population will result in research that is ineffective at best
and misleading at worst.
B) Defining the target population involves translating the problem definition into a precise
statement of who should and should not be included in the sample.
C) The target population should be defined in terms of elements, sampling units, extent, and
time.
D) All of the above statements are true.
Answer: D
Diff: 2 Page Ref: 340
AACSB: Reflective Thinking
LO : 2

47) The target population should be defined in terms of all of the following except ________.
A) sampling units
B) extent
C) time
D) size
Answer: D
Diff: 3 Page Ref: 340
AACSB: Reflective Thinking
LO : 2

48) The target population for the department store project was defined as "male or female head
of household responsible for most of the shopping at department stores in metro Atlanta in
2009." "Metro Atlanta" is what part of the target population definition?
A) elements
B) sampling unit
C) extent
D) time
Answer: C
Diff: 2 Page Ref: 340
AACSB: Reflective Thinking
LO : 2

90
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49) The target population for the department store project was defined as "male or female head
of household responsible for most of the shopping at department stores in metro Atlanta in
2009." "Male or female head of household responsible for most of the shopping at department
stores" is what part of the target population definition?
A) elements
B) sampling unit
C) extent
D) time
Answer: A
Diff: 2 Page Ref: 340
AACSB: Reflective Thinking
LO : 2

50) A representation of the elements of the target population consisting of a list or set of
directions for identifying the target population is a ________.
A) judgmental sample
B) sample
C) sampling unit
D) sampling frame
Answer: D
Diff: 2 Page Ref: 340
LO : 2

51) Decisions concerning whether to use a Bayesian or traditional sampling approach, to sample
with or without replacement, and to use nonprobability or probability sampling pertain to which
step in the sampling design process (Figure 11.1 in the text)?
A) Determine the sampling frame.
B) Select a sampling technique(s).
C) Determine the sample size.
D) Execute the sampling process.
Answer: B
Diff: 3 Page Ref: 341
AACSB: Analytic Skills
LO : 2

52) ________ is a selection method where the elements are selected sequentially. It explicitly
incorporates prior information about population parameters as well as the costs and probabilities
associated with making wrong decisions.
A) Bayesian approach
B) Sampling with replacement
C) Sampling without replacement
D) Simple random sampling
Answer: A
Diff: 2 Page Ref: 341
AACSB: Analytic Skills
LO : 2

91
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53) ________ is a sampling technique in which an element cannot be included in the sample
more than once.
A) Bayesian approach
B) Sampling with replacement
C) Sampling without replacement
D) Simple random sampling
Answer: C
Diff: 1 Page Ref: 342
LO : 2

54) If the researcher is concerned about the number of variables, the nature of the analysis, and
completion rates, then, he/she is at which stage of the sampling design process (Figure 11.1 in
the text)?
A) Determine the sampling frame.
B) Select a sampling technique(s).
C) Determine the sample size.
D) Execute the sampling process.
Answer: C
Diff: 3 Page Ref: 342
AACSB: Analytic Skills
LO : 2

55) The sample size decision should be guided by certain qualitative considerations. Which of
the following is not one of those considerations?
A) the resource constraints
B) the average size of samples in similar studies
C) the sampling technique to be used
D) the nature of the results
Answer: D
Diff: 3 Page Ref: 342
AACSB: Reflective Thinking
LO : 2

56) ________ requires a detailed specification of how the sampling design decisions with respect
to the population, sampling frame, sampling unit, sampling techniques, and sample size are to be
implemented.
A) Determination of the sampling frame
B) Selection of a sampling technique(s)
C) Determination of the sample size
D) Execution of the sampling process
Answer: D
Diff: 3 Page Ref: 343
LO : 2

92
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57) ________ is a sampling procedure in which each element of the population has a fixed
probabilistic chance of being selected for the sample.
A) Nonprobability sampling
B) Probability sampling
C) Convenience sampling
D) Judgmental sampling
Answer: B
Diff: 2 Page Ref: 344-345
LO : 3

58) ________ attempts to obtain a sample of convenient elements. The selection of sampling
units is left primarily to the interviewer.
A) Nonprobability sampling
B) Probability sampling
C) Convenience sampling
D) Judgmental sampling
Answer: C
Diff: 1 Page Ref: 345
LO : 4

59) ________ is a form of convenience sampling in which the population elements are selected
based on the judgment of the researcher.
A) Nonprobability sampling
B) Probability sampling
C) Convenience sampling
D) Judgmental sampling
Answer: D
Diff: 1 Page Ref: 347
LO : 4

60) ________ does not allow direct generalizations to a specific population, usually because the
population is not defined explicitly.
A) Snowball sampling
B) Judgmental sampling
C) Convenience sampling
D) Simple random sampling
Answer: B
Diff: 3 Page Ref: 347
LO : 4

93
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61) Which statement is not true about judgmental sampling?
A) It does not allow direct generalizations to a specific population.
B) It may be useful if broad population inferences are not required.
C) Each population element has a known and equal probability of selection.
D) An extension of the technique involves the use of quotas.
Answer: C
Diff: 3 Page Ref: 347
AACSB: Analytic Skills
LO : 4

62) Which of the following statements is not true about quota sampling?
A) There is no assurance that the sample is representative.
B) Many sources of selection bias are potentially present.
C) Under certain conditions, quota sampling obtains results close to those for conventional
probability sampling.
D) An important decision involves the use of proportionate or disproportionate sampling.
Answer: D
Diff: 3 Page Ref: 347
AACSB: Analytic Skills
LO : 4

63) Which of the following statements is true about snowball sampling?


A) In snowball sampling a decision rule is used to indicate whether sampling should be
continued or whether enough information has been obtained.
B) Snowball sampling is used in industrial buyer-seller research to identify buyer-seller pairs.
C) In snowball sampling an initial group of respondents is selected, usually at random.
D) Both B and C are true.
Answer: D
Diff: 3 Page Ref: 349
AACSB: Analytic Skills
LO : 4

64) All of the following statements are true about snowball sampling except ________.
A) snowball sampling can result in samples that are very large or spread over large geographic
areas, thus increasing the time and cost of data collection
B) a major objective of snowball sampling is to estimate characteristics that are rare in the
population
C) the major advantage of snowball sampling is that it substantially increases the likelihood of
locating the desired characteristics in the population
D) snowball sampling results in relatively low sampling variance and costs
Answer: A
Diff: 3 Page Ref: 349
AACSB: Analytic Skills
LO : 4

94
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65) The major advantage of ________ is that it substantially increases the likelihood of locating
the desired characteristic in the population.
A) snowball sampling
B) quota sampling
C) judgmental sampling
D) convenience sampling
Answer: A
Diff: 3 Page Ref: 349
LO : 4

66) The efficiency of a probability sampling technique may be assessed by comparing it to that
of ________.
A) nonprobability sampling
B) systematic sampling
C) simple random sampling
D) stratified sampling
Answer: C
Diff: 3 Page Ref: 350
LO : 5

67) ________ is a probability sampling technique in which each element in the population has a
known and equal probability of selection. Every element is selected independently of every
other element and the sample is drawn by a random procedure from a sampling frame.
A) Stratified sampling
B) Simple random sampling
C) Systematic sampling
D) Cluster sampling
Answer: B
Diff: 2 Page Ref: 350-351
AACSB: Analytic Skills
LO : 5

68) The ________ method is equivalent to a lottery system in which names are placed in a
container, the container is shaken, and the names of the winners are then drawn out in an
unbiased manner.
A) nonprobability sampling
B) systematic sampling
C) simple random sampling
D) stratified sampling
Answer: C
Diff: 2 Page Ref: 350-351
AACSB: Analytic Skills
LO : 5

95
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69) All of the following statements are limitations of simple random sampling except ________.
A) it is often difficult to construct a sampling frame that will permit a simple random sample to
be drawn
B) simple random sampling often results in lower precision with larger standard errors than other
probability sampling techniques
C) simple random sampling may or may not result in a representative sample
D) the sample results may be projected to the target population
Answer: D
Diff: 2 Page Ref: 350-351
AACSB: Analytic Skills
LO : 5

70) ________ is a probability sampling technique in which the sample is chosen by selecting a
random starting point and then picking every ith element in succession from the sampling frame.
A) Stratified sampling
B) Simple random sampling
C) Systematic sampling
D) Cluster sampling
Answer: C
Diff: 2 Page Ref: 351-352
AACSB: Analytic Skills
LO : 5

71) Systematic sampling is similar to simple random sampling. Which of the statements below
about systematic sampling does not relate to the systematic sampling and simple random
sampling similarity?
A) Each population element has a known and equal probability of selection.
B) If the population elements are arranged in a manner unrelated to the characteristic to interest,
systematic sampling will yield results quite similar to simple random sampling.
C) The random numbers do not have to be matched with individual elements.
D) Systematic sampling is a type of probability sampling.
Answer: C
Diff: 3 Page Ref: 351-352
AACSB: Analytic Skills
LO : 5

72) ________ is a probability sampling technique that uses a two-step process to partition the
population into subpopulations, or strata. Elements are selected from each stratum by a random
procedure.
A) Stratified sampling
B) Simple random sampling
C) Systematic sampling
D) Cluster sampling
Answer: A
Diff: 1 Page Ref: 352-353
LO : 5

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73) A major objective of ________ is to increase precision without increasing cost.
A) quota sampling
B) cluster sampling
C) sequential sampling
D) stratified sampling
Answer: D
Diff: 2 Page Ref: 352-353
LO : 5

74) The criteria for the selection of stratification variables consist of all of the following except
________.
A) homogeneity
B) relatedness
C) cost
D) order
Answer: D
Diff: 3 Page Ref: 352-353
AACSB: Analytic Skills
LO : 5

75) Which of the statements below is not true about stratified sampling?
A) Stratified sampling can ensure that all the important subpopulations are represented in the
sample.
B) The researcher assumes that the population elements are ordered in some respect.
C) Most approaches to statistical inference assume that the data have been collected by stratified
sampling.
D) Both B and C are not true.
Answer: D
Diff: 3 Page Ref: 352-353
AACSB: Analytic Skills
LO : 5

76) In ________, the target population is first divided into mutually exclusive and collectively
exhaustive subpopulations, or clusters.
A) stratified sampling
B) simple random sampling
C) systematic sampling
D) cluster sampling
Answer: D
Diff: 1 Page Ref: 353-355
AACSB: Analytic Skills
LO : 5

97
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77) Which of the following is not a form of nonprobability sampling?
A) convenience sampling
B) cluster sampling
C) quota sampling
D) snowball sampling
Answer: B
Diff: 3 Page Ref: 353-355
LO : 4

78) Which of the following is not a stage of cluster sampling?


A) one-stage sampling
B) two-stage sampling
C) zero-stage sampling
D) multi-stage sampling
Answer: C
Diff: 2 Page Ref: 353-355
LO : 5

79) Cluster sampling and stratified sampling differ in all of the following ways except ________.
A) the number of subpopulations chosen
B) their objectives
C) classification of sampling techniques
D) with respect to homogeneity and heterogeneity
Answer: C
Diff: 3 Page Ref: 353-355
AACSB: Analytic Skills
LO : 5

80) Which statement is not true about cluster sampling?


A) The researcher may have to rely on intuition and logic to determine sample sizes for each
cluster.
B) Cluster sampling is the most cost-effective probability sampling technique.
C) It can be difficult to compute and interpret statistics based on clusters.
D) The two major advantages of cluster sampling are feasibility and low cost.
Answer: A
Diff: 3 Page Ref: 353-355
AACSB: Analytic Skills
LO : 5

81) Which sampling technique can help the researcher estimate rare characteristics (Table 11.4 in
the text)?
A) convenience sampling
B) quota sampling
C) judgmental sampling
D) snowball sampling
Answer: D
Diff: 3 Page Ref: 356
LO : 4
98
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82) Which sampling technique can increase representativeness, is easier to implement than
simple random sampling and does not require a sampling frame (Table 11.4 in the text)?
A) stratified sampling
B) systematic sampling
C) cluster sampling
D) area sampling
Answer: B
Diff: 2 Page Ref: 356
LO : 5

83) In ________ the sample size is not known in advance, but a decision rule is stated before the
sampling begins. At each stage, this rule indicates whether sampling should be continued or
whether enough information has been obtained.
A) stratified sampling
B) double sampling
C) sequential sampling
D) systematic sampling
Answer: C
Diff: 3 Page Ref: 356
LO : 5

84) ________ can be useful when no sampling frame is readily available for selecting final
sampling units but when the elements of the frame are known to be contained within a broader
sampling frame.
A) Stratified sampling
B) Double sampling
C) Sequential sampling
D) Systematic sampling
Answer: B
Diff: 3 Page Ref: 356
LO : 5

85) ________ has been used to determine preferences for two competing alternatives.
A) Area sampling
B) Double sampling
C) Probability proportionate to size sampling
D) Sequential sampling
Answer: D
Diff: 3 Page Ref: 356
LO : 5

99
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86) The choice between nonprobability and probability samples should be based on all of the
following considerations except (Table 11.5 in the text) ________.
A) the nature of the research
B) size of the population
C) variability in the population
D) statistical and operational considerations
Answer: B
Diff: 3 Page Ref: 358
AACSB: Analytic Skills
LO : 6

87) All of the factors listed below favor the use of probability sampling except (Table 11.5 in the
text) ________.
A) nonsampling errors are likely to be an important factor
B) the nature of the research is conclusive
C) the population is heterogeneous with respect to variables of interest
D) highly accurate estimates of population characteristics are required
Answer: A
Diff: 3 Page Ref: 358
AACSB: Analytic Skills
LO : 6

88) All of the following are examples of nonpanel recruited sampling methods used in Internet
research except ________.
A) use of e-mail lists that have been rented from suppliers
B) offline techniques such as short telephone screening interviews to recruit Internet samples
C) a store may hand its customers a flier directing them to a specific-password protected site
D) All of the above are nonpanel recruited sampling methods.
Answer: D
Diff: 2 Page Ref: 360-361
AACSB: Use of IT
LO : 9

89) Probability sampling techniques are uncommon in international marketing research because
of all of the following reasons except ________.
A) lack of suitable sampling frames
B) the inaccessibility of certain respondents, such as women in some cultures
C) the dominance of personal interviewing
D) lack of trained researchers
Answer: D
Diff: 2 Page Ref: 361-362
AACSB: Multicultural and Diversity
LO : 7

100
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
90) Consumer research conducted in Mexico and Saudi Arabia used different sampling
techniques for the same study. In Mexico, ________ was used by having experts identify
neighborhoods where the target respondents lived; homes were then randomly selected for
interviews. In Saudi Arabia, ________ employing the snowball procedure was used because
there were no lists from which sampling frames could be drawn and social customs prohibited
spontaneous personal interviews.
A) systematic sampling; convenience sampling
B) systematic sampling; quota sampling
C) judgmental sampling; convenience sampling
D) quota sampling; judgmental sampling
Answer: C
Diff: 3 Page Ref: 361-362
AACSB: Multicultural and Diversity
LO : 7

91) Which situation poses ethical concerns for the researcher in terms of preserving the
anonymity of the respondents?
A) when the population size is large
B) sampling details that are too revealing
C) verbatim quotations in reports to the client
D) both B and C
Answer: D
Diff: 2 Page Ref: 362-363
AACSB: Ethical Reasoning
LO : 8

Marketing Research: An Applied Orientation, 6e (Malhotra)


Chapter 11 Sampling: Design and Procedures

1) The inferences that link sample characteristics and population parameters are estimation
procedures and tests of hypotheses.
Answer: TRUE
Diff: 3 Page Ref: 339
LO : 1

2) A census can greatly decrease nonsampling error.


Answer: FALSE
Diff: 2 Page Ref: 339
LO : 1

3) It is not always possible to reduce nonsampling error sufficiently to compensate for sampling
error.
Answer: TRUE
Diff: 2 Page Ref: 339
AACSB: Reflective Thinking
LO : 1

4) Examples of a sampling frame include the telephone book, an association directory, a city
101
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64) A mathematical distribution whose objective is to obtain a count of the number of responses
associated with different values of one variable and to express these counts in percentage terms
is a(n) ________.
A) t distribution
B) frequency distribution
C) chi-square distribution
D) distribution
Answer: B
Diff: 2 Page Ref: 440-442
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

65) Which of the research questions/hypotheses below is best answered using frequency
distribution?
A) What percentage of the market consists of heavy users, medium users, light users, and
nonusers?
B) The heavy and light users of a brand differ in terms of psychographic characteristics.
C) What is the income distribution of brand users? Is this distribution skewed toward low
income brackets?
D) Both A and C are correct.
Answer: D
Diff: 2 Page Ref: 440-442
AACSB: Reflective thinking
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

66) A frequency distribution helps determine ________.


A) the extent of nonresponse
B) the extent of illegitimate responses
C) the presence of outliers or cases with extreme values
D) all of the above
Answer: D
Diff: 2 Page Ref: 440-442
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

67) A frequency distribution helps ________.


A) determine how close a sample comes to the null hypothesis
B) us to understand how one variable, X, relates to another variable, Y
C) determine if a systematic association exists between two variables
D) determine the shape of the empirical distribution of the variable
Answer: D
Diff: 2 Page Ref: 440-442
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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68) A statistic that describes a location within a data set is a ________.


A) measure of variability
B) measure of shapes
C) measure of occasion
D) measure of location
Answer: D
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

69) The value obtained by summing all elements in a set and dividing by the number of elements
is the ________.
A) mean
B) median
C) mode
D) range
Answer: A
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

70) The ________ is the value that occurs most frequently.


A) mean
B) median
C) mode
D) range
Answer: C
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

71) A measure of central tendency given as the value above which half of the values fall and
below which half of the values fall is the ________.
A) mean
B) median
C) mode
D) range
Answer: B
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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72) The median is an appropriate measure of central tendency for ________ data.
A) interval
B) ratio
C) ordinal
D) nominal
Answer: C
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

73) As a general rule to follow to determine which of the different measures of location to use, if
the variable is measured on a nominal scale, ________ is the appropriate measure of central
tendency that should be used.
A) mean
B) median
C) mode
D) range
Answer: C
Diff: 2 Page Ref: 442-445
AACSB: Analytical thinking
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

74) A statistic that indicates the distribution's dispersion is a ________.


A) measure of variability
B) measure of shape
C) measure of occasion
D) measure of location
Answer: A
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

75) The ________ is the most appropriate measure of central tendency for interval or ratio data.
A) mean
B) median
C) mode
D) range
Answer: A
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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76) ________ include the range, interquartile range, variance or standard deviation, and
coefficient of variation.
A) Measures of variability
B) Measures of shape
C) Measures of occasion
D) Measures of location
Answer: A
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

77) The difference between the smallest and the largest values in a distribution is the ________.
A) mean
B) median
C) mode
D) range
Answer: D
Diff: 1 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

78) The ________ is the difference between the 75th and 25th percentile.
A) standard deviation
B) coefficient of variation
C) variance
D) interquartile range
Answer: D
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

79) The mean squared deviation of all the values from the mean is the ________.
A) standard deviation
B) coefficient of variation
C) variance
D) interquartile range
Answer: C
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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80) The square root of the variance is the ________.


A) standard deviation
B) coefficient of variation
C) variance
D) interquartile range
Answer: A
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

81) The ________ is the ratio of the standard deviation to the mean, expressed as a percentage,
and it is a unitless measure of relative variability.
A) standard deviation
B) coefficient of variation
C) variance
D) interquartile range
Answer: B
Diff: 3 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

82) The tendency of the deviations from the mean to be larger in one direction than in the other
is called ________.
A) kurtosis
B) type I error
C) skewness
D) type II error
Answer: C
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

83) ________ is a measure of the relative peakedness or flatness of the curve defined by the
frequency distribution.
A) Kurtosis
B) Type I error
C) Skewness
D) Type II error
Answer: A
Diff: 2 Page Ref: 442-445
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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84) Which of the research questions/hypotheses below is best answered using hypothesis testing?
A) Is familiarity with a new product related to age and education levels after controlling for
income?
B) The department store is being patronized by more than 10 percent of households.
C) One hotel has a more upscale image than its close competitor.
D) Both B and C are correct.
Answer: D
Diff: 2 Page Ref: 446
AACSB: Reflective thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

85) Which statement is not correct about the null hypothesis?


A) It is always the hypothesis tested.
B) Accepting the null hypothesis will lead to some changes in opinions or action.
C) It can never be accepted based on a single statistical test.
D) In marketing research, the null hypothesis is formulated in such a way that rejection leads to
the acceptance of the desired conclusion.
Answer: B
Diff: 2 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

86) Which of the following statements is not correct about the alternative hypothesis?
A) There is no way to determine whether the alternative hypothesis is true.
B) The alternative hypothesis represents the conclusion for which evidence is sought.
C) The alternative hypothesis is the opposite of the null hypothesis.
D) None of the statements are correct.
Answer: A
Diff: 3 Page Ref: 446-450
AACSB: Reflective thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

87) The alternative hypothesis: the percentage of Internet users who use the Internet for shopping
is greater than .40, is a ________.
A) Type I error
B) two-tailed test
C) Type II error
D) one-tailed test
Answer: D
Diff: 2 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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88) What is the correct expression of the null hypothesis for the alternative hypothesis: the
percentage of Internet users who use the Internet for shopping is greater than .40?
A) H0: π < .40
B) H1: π > .40
C) H0: π = .40
D) H1: π ≠ .40
Answer: A
Diff: 3 Page Ref: 446-450
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

89) ________ occurs when the sample results lead to the rejection of a null hypothesis that is in
fact true.
A) Type I error
B) Two-tailed error
C) Type II error
D) One-tailed error
Answer: A
Diff: 3 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

90) Also known as beta error, ________ occurs when the sample results lead to the nonrejection
of a null hypothesis that is in fact false.
A) Type I error
B) Two-tailed error
C) Type II error
D) one-tailed error
Answer: C
Diff: 3 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

91) The ________ is the probability of rejecting the null hypothesis when it is in fact false, and
should be rejected.
A) Type I error
B) level of significance
C) Type II error
D) power of a test
Answer: D
Diff: 3 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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92) To balance the two types of errors, alpha (α), also known as ________, is often set at .01 or
.05.
A) type I error
B) level of significance
C) type II error
D) A and B are correct
Answer: D
Diff: 3 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

93) The last step involved in hypothesis testing is ________.


A) reject or do not reject the null hypothesis
B) draw a marketing research conclusion
C) compare the probability with level of significance alpha (α)
D) determine the probability associated with the test statistic under the null hypothesis
Answer: B
Diff: 1 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

94) Hypothesis tests can be related to ________.


A) tests of strength
B) tests of association
C) tests of differences
D) B and C are correct
Answer: D
Diff: 2 Page Ref: 446-450
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

95) Which of the research questions/hypotheses below is best answered using cross-tabulations?
A) Is familiarity with a new product related to age and education levels?
B) The department store is being patronized by more than 10 percent of households.
C) One hotel has a more upscale image than its close competitor.
D) Both B and C are correct.
Answer: A
Diff: 2 Page Ref: 450-455
AACSB: Reflective thinking
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

18
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96) A statistical technique that describes two or more variables simultaneously and results in
tables that reflect the joint distribution of two or more variables that have a limited number of
categories or distinct values is a ________.
A) t test
B) non-parametric test
C) parametric test
D) cross-tabulation
Answer: D
Diff: 3 Page Ref: 450-455
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

97) Which statement is not correct about cross-tabulations?


A) The margins of a cross-tabulation show the same information as the frequency tables for each
of the variables.
B) Cross-tabulation tables are also called contingency tables.
C) The data are considered to be qualitative or categorical data.
D) Cross-tabulations provide inferences for making statements about the means of parent
populations.
Answer: D
Diff: 2 Page Ref: 4450-455
AACSB: Reflective thinking
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

98) Which of the following statements is true concerning cross-tabulations with two variables?
A) Cross-tabulation with two variables is also known as bivariate cross-tabulation.
B) Because two variables have been cross-classified, percentages could be computed either
column-wise, based on column totals, or row-wise, based on row totals.
C) The general rule is to compute the percentages in the direction of the independent variable,
across the dependent variable.
D) All of the above statements are true.
Answer: D
Diff: 1 Page Ref: 450-455
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

99) The introduction of a third variable in cross-tabulation can result in which of the following
possibilities?
A) refined association between the two original variables
B) no association between the two original variables
C) no change in the initial pattern
D) All of the above are correct.
Answer: D
Diff: 1 Page Ref: 450-455
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.
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100) In cross-tabs, the introduction of a third variable can ________.


A) refine the association observed between the two original variables
B) indicate no association between the two variables, although an association was initially
observed
C) indicate no change in the initial association
D) All of the above are correct.
Answer: D
Diff: 3 Page Ref: 450-455
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

101) Which of the following statements is not true concerning cross-tabulation?


A) No more than three variables can be cross-tabulated.
B) As a general rule, there should be at least five expected observations in each cell for the
statistics computed to be reliable.
C) Cross-tabulation examines association between variables, not causation.
D) None of the above statements are untrue.
Answer: A
Diff: 2 Page Ref: 450-455
AACSB: Reflective thinking
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

102) Which statement is not related to statistics associated with cross-tabulation?


A) The statistical significance of the observed association is commonly measured by the chi-
square statistic.
B) The t test could be conducted on the mean of one sample or two samples of observations.
C) Generally, the strength of association is of interest only if the association is statistically
significant.
D) The strength of association can be measured by the phi correlation coefficient, the
contingency coefficient, Cramer's V, and the lambda coefficient.
Answer: B
Diff: 3 Page Ref: 455-459
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

103) The ________ is used to test the statistical significance of the observed association in cross-
tabulation.
A) contingency coefficient
B) Cramer's V
C) phi coefficient
D) chi-square statistic
Answer: D
Diff: 2 Page Ref: 455-459
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.
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104) The ________ is a skewed distribution whose shape depends solely on the number of
degrees of freedom. As the number of degrees of freedom increases, the distribution becomes
more symmetrical.
A) t distribution
B) frequency distribution
C) chi-square distribution
D) distribution
Answer: C
Diff: 2 Page Ref: 455-459
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

105) The ________ is used as a measure of the strength of association in the special case of a
table with two rows and two columns (a 2 × 2 table).
A) contingency coefficient
B) Cramer's V
C) phi coefficient
D) chi-square coefficient
Answer: C
Diff: 3 Page Ref: 455-459
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

106) The ________ can be used to assess the strength of association in a table of any size.
A) contingency coefficient
B) coefficient of variation
C) phi coefficient
D) chi-square coefficient
Answer: A
Diff: 2 Page Ref: 455-459
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

107) ________ is a measure of the strength of association used in tables larger than 2 × 2.
A) coefficient of variation
B) Cramer's V
C) Phi coefficient
D) Chi-square coefficient
Answer: B
Diff: 3 Page Ref: 455-459
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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108) ________ is a modified version of the phi correlation coefficient, Φ.


A) Cramer's V
B) coefficient of variation
C) Asymmetric lambda
D) Chi-square statistic
Answer: A
Diff: 2 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

109) ________ is a measure of the percentage improvement in predicting the value of the
dependent variable, given the value of the independent variable in contingency table analysis.
A) Tau b
B) Symmetric lambda
C) Asymmetric lambda
D) Tau c
Answer: C
Diff: 2 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

110) ________ is an average of the two asymmetric lambda values. It does not make an
assumption about which variable is dependent.
A) Tau b
B) Symmetric lambda
C) Tau c
D) Gamma
Answer: B
Diff: 2 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

111) ________ is a test statistic that measures the association between two ordinal-level
variables. It makes an adjustment for ties and is most appropriate when the table of variable is
square.
A) Tau b
B) Symmetric lambda
C) Tau c
D) Gamma
Answer: A
Diff: 3 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

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112) Tau b, tau c, and gamma are available to measure association between two ________-level
variables.
A) nominal
B) ordinal
C) interval
D) ratio
Answer: B
Diff: 2 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

113) ________ is a test statistic that measures the association between two ordinal-level
variables. It makes an adjustment for ties and is most appropriate when the table of variables is
not square but a rectangle.
A) Tau b
B) Symmetric lambda
C) Tau c
D) Gamma
Answer: C
Diff: 3 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

114) ________ is a test statistic that measures the association between two ordinal-level
variables. It does not make an adjustment for ties.
A) Tau b
B) Symmetric lambda
C) Tau c
D) Gamma
Answer: D
Diff: 3 Page Ref: 455-459
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

115) ________ are hypothesis testing procedures that assume that the variables of interest are
measured on at least an interval scale.
A) Parameter tests
B) Parametric tests
C) Nonparametric tests
D) None of the above
Answer: B
Diff: 2 Page Ref: 460
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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116) ________ are hypothesis testing procedures that assume that the variables are measured on
a nominal or ordinal scale.
A) Parameter tests
B) Parametric tests
C) Nonparametric tests
D) None of the above
Answer: C
Diff: 2 Page Ref: 460
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

117) The ________ is a statistic that assumes that the variable has a symmetric bell-shaped
distribution and the mean is known (or assumed to be known) and the population variance is
estimated from the sample.
A) statistic
B) t statistic
C) z statistic
D) none of the above
Answer: B
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

118) The ________ is a univariate hypothesis test using the t distribution, which is used when
the standard deviation is unknown and the sample size is small.
A) z test
B) t test
C) paired samples test
D) F test
Answer: B
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

119) Which of the following statements is not true about parametric tests?
A) Parametric tests are used when the independent variables are non-metric.
B) The t test is a commonly used parametric test.
C) The t statistic assumes that the variable is normally distributed and the mean is known (or
assumed to be known) and the population variance is estimated from the sample.
D) B and C are not correct.
Answer: A
Diff: 3 Page Ref: 461-466
AACSB: Reflective thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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120) The ________ is a symmetric bell-shaped distribution that is useful for small sample (n <
30) testing.
A) t distribution
B) frequency distribution
C) chi-square distribution
D) distribution
Answer: A
Diff: 2 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

121) Which statement is not true concerning the t distribution?


A) Compared to the normal distribution, the t distribution has more area in the tails and less in
the center.
B) As the number of degrees of freedom increases, the t distribution approaches the normal
distribution.
C) The t distributions are skewed to the left.
D) The population variance is unknown and is estimated by the sample variance s2.
Answer: C
Diff: 1 Page Ref: 461-466
AACSB: Reflective thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

122) Suppose we wanted to test the hypothesis that the mean familiarity rating exceeds 4.0, the
neutral value on a seven-point scale. The hypotheses may be formulated as ________.
A) H0:μ1 = μ2
H1:μ1 ≠ μ2
B) H0:σ12 = σ22
H1:σ12 ≠ σ22
C) H0:μ ≤ 4.0
H1:μ > 4.0
D) H0: π1 = π2
H1: π1 ≠ π2
Answer: C
Diff: 1 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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123) The degrees of freedom for the t statistic to test hypotheses about one mean are ________.
A) n
B) n - 1
C) n1 + n2
D) n1 +n2 - 2
Answer: B
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

124) If the population standard deviation was assumed to be known, rather than estimated from
the sample, a ________ would be appropriate rather than a ________.
A) z test; t test
B) t test; F test
C) t test; z test
D) z test; F test
Answer: A
Diff: 3 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

125) In the parametric case of means for two independent samples, the hypotheses take which
form?
A) H0:μ1 = μ2
H1:μ1 ≠ μ2
B) H0:σ12 = σ22
H1:σ12 ≠ σ22
C) H0:μ ≤ 4.0
H1:μ > 4.0
D) H0: π1 = π2
H1: π1 ≠ π2
Answer: A
Diff: 1 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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126) The degrees of freedom for the t statistic to test the hypothesis about two independent
samples is ________.
A) n
B) n - 1
C) n1 + n2
D) n1 +n2 - 2
Answer: D
Diff: 3 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

127) The F test of sample variance may be performed if it is not known whether the two
populations have equal variance. In this case the hypotheses are ________.
A) H0:μ1 = μ2
H1:μ1 ≠ μ2
B) H0:σ12 = σ22
H1:σ12 ≠ σ22
C) H0:μ ≤ 4.0
H1:μ > 4.0
D) H0: π1 = π2
H1: π1 ≠ π2
Answer: B
Diff: 1 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

128) The ________ is a statistical test of the equality of the variances of two populations.
A) z test
B) t test
C) paired samples test
D) F test
Answer: D
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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129) The ________ is a frequency distribution that depends upon two sets of degrees of freedom,
the degrees of freedom in the numerator and the degrees of freedom in the denominator.
A) t distribution
B) Z statistic
C) chi-square distribution
D) none of the above
Answer: D
Diff: 2 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

130) If the probability of F is greater than the significance level α, ________ and ________
should be used.
A) H0 is rejected; t based on "equal variances not assumed"
B) H0 is not rejected; t based on "equal variances assumed"
C) H0 is rejected; t based on "equal variances assumed"
D) H0 is not rejected; t based on "equal variances not assumed"
Answer: B
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

131) For the parametric case, involving proportions for two independent samples, the null and
alternative hypotheses are ________.
A) H0:μ1 = μ2
H1:μ1 ≠ μ2
B) H0:σ12 = σ22
H1:σ12 ≠ σ22
C) H0:μ ≤ 4.0
H1:μ > 4.0
D) H0: π1 = π2
H1: π1 ≠ π2
Answer: D
Diff: 1 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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132) The degrees of freedom for the t statistic to test hypotheses about paired samples are
________.
A) n
B) n - 1
C) n1 + n2
D) n1 + n2 - 2
Answer: B
Diff: 3 Page Ref: 461-466
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

133) For the parametric case involving the means of paired samples, the null and alternative
hypotheses are ________.
A) H0:μ1 = μ2
H1:μ1 ≠ μ2
B) H0:σ12 = σ22
H1:σ12 ≠ σ22
C) H0:μD = 0
H1:μD ≠ 0
D) H0: π1 = π2
H1: π1 ≠ π2
Answer: C
Diff: 2 Page Ref: 461-466
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

134) In the context of the Internet usage example, suppose we wanted to test whether the
probability of observing a K value of .222, as determined by the normalized z statistic, is 0.103.
Because this is more than the significance level of 0.05, the null hypothesis cannot be rejected.
What do the results mean?
A) The distribution of the Internet usage does deviate significantly from the normal distribution.
B) The distribution of the Internet usage does not deviate significantly from the normal
distribution.
C) The proportion of users for males and for females is not significantly different for the two
samples.
D) The proportion of users for males and for females is significantly different for the two
samples.
Answer: B
Diff: 2 Page Ref: 467
AACSB: Analytical thinking
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

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135) A one-sample nonparametric goodness-of-fit test to determine whether the observations for
a particular variable could reasonably have come from a particular distribution is the ________.
A) Kolmogorov-Smirnov one-sample test
B) runs test
C) binomial test
D) Mann-Whitney U test
Answer: A
Diff: 3 Page Ref: 467
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

136) A Kolmogorov-Smirnov one-sample test was conducted. The largest absolute difference
between the observed and normal distribution was K = 0.222. The sample size was only 30
therefore, the approximate formula was used and the critical value for K was 0.248. Because the
calculated value of K is ________ than the critical value, the null hypothesis ________ be
rejected.
A) smaller; cannot
B) larger; cannot
C) smaller; can
D) larger; can
Answer: A
Diff: 2 Page Ref: 467
AACSB: Analytical thinking
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

137) The test statistic used in the Kolmogorov-Smirnov one-sample test is ________.
A) K = Max |Oi, Ai |
B) K = Min | Ai - Oi |
C) K = Max | Ai - Oi |
D) K = Min | Oi , Ai |
Answer: C
Diff: 3 Page Ref: 467
AACSB: Analytical thinking
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

138) Which of the following tests is not a non-parametric one-sample test?


A) Kolmogorov-Smirnov one-sample test
B) runs test
C) binomial test
D) Mann-Whitney U test
Answer: D
Diff: 3 Page Ref: 467
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

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139) When the difference in the location of two populations is to be compared based on
observations from two independent samples, and the variable is measured on an ordinal scale, the
________ can be used.
A) Kolmogorov-Smirnov one-sample test
B) runs test
C) binomial test
D) Mann-Whitney U test
Answer: D
Diff: 3 Page Ref: 468
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

140) A ________ is a test conducted by determining whether the order or sequence in which
observations are obtained is random.
A) Mann-Whitney U test
B) sign test
C) binomial test
D) runs test
Answer: D
Diff: 3 Page Ref: 467
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

141) The ________ tests the goodness of fit of the observed number of observations in each
category to the number expected under a specified binomial distribution.
A) Mann-Whitney U test
B) sign test
C) binomial test
D) runs test
Answer: C
Diff: 1 Page Ref: 467
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

142) If the samples used in the Mann-Whitney U test are from the same population, the
distribution of scores from the two groups in the rank list should be ________.
A) random
B) u-shaped
C) normal
D) uniform
Answer: A
Diff: 3 Page Ref: 468
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

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143) Which test is not an independent samples test?


A) Kolmogorov-Smirnov two-sample test
B) Wilcoxon matched-pairs signed-ranks test
C) Mann-Whitney U test
D) two-sample median test
Answer: B
Diff: 3 Page Ref: 468
AACSB: Reflective thinking
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

144) The test statistic used in the Wilcoxon matched-pairs signed-ranks test is ________.
A) t
B) chi-square
C) alpha
D) z
Answer: D
Diff: 2 Page Ref: 469
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

145) A nonparametric test that analyzes the differences between the paired observations, taking
into account the magnitude of the differences is the ________.
A) Wilcoxon matched-pairs signed-ranks test
B) sign test
C) McNemar test
D) runs test
Answer: A
Diff: 3 Page Ref: 469
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

146) The ________ test is a nonparametric test for examining differences in the location of two
populations, based on paired observations, that compares only the signs of the differences
between pairs of variables without taking into account the magnitude of the differences.
A) Mann-Whitney U test
B) sign test
C) binomial test
D) runs test
Answer: B
Diff: 1 Page Ref: 470
LO: 15.5 Understand data analysis associated with nonparametric hypothesis testing for one
sample, two independent samples, and paired samples.

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147) Nonparametric tests are not available in ________.


A) SAS
B) Excel
C) SPSS
D) MINITAB
Answer: B
Diff: 1 Page Ref: 471-472
AACSB: Information technology
LO: 15.6 Explain the role of software in conducting frequency, cross-tabulation, and hypothesis
testing using SPSS and SAS.

148) Which program or function listed below is not useful for conducting nonparametric tests?
A) NPAR TESTS
B) NPAR1WAY
C) Stat>Time Series
D) none of the above
Answer: D
Diff: 1 Page Ref: 471-476
AACSB: Information technology
LO: 15.6 Explain the role of software in conducting frequency, cross-tabulation, and hypothesis
testing using SPSS and SAS.

149) Mean, median, variance, standard deviation, minimum, maximum, and range are some of
the statistics that can be calculated via ________, ________, and ________ in SPSS.
A) FREQUENCIES; EXPLORE; and DESCRIPTIVES
B) DESCRIPTIVES; COUNTS; and EXPLORE
C) EXPLORE; DESCRIPTIVES; and COUNTS
D) COUNTS; FREQUENCIES; and DESCRIPTIVES
Answer: A
Diff: 2 Page Ref: 472
AACSB: Information technology
LO: 15.6 Explain the role of software in conducting frequency, cross-tabulation, and hypothesis
testing using SPSS and SAS.

150) When conducting marketing research, what general rules should be followed to determine
when the different measures of location should be used?
Answer: If the variable is measured on a nominal scale, the mode is the appropriate measure of
central tendency that should be used. If the variable is measured on an ordinal scale, the median
is appropriate. If the variable is measured on an interval or ratio scale, the mean is the most
appropriate measure of central tendency.
Diff: 2 Page Ref: 443
AACSB: Analytical thinking
LO: 15.2 Discuss data analysis associated with frequencies, including measures of location,
measures of variability, and measures of shape.

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151) Define the null and alternative hypotheses. Discuss the relationship between the two
hypotheses.
Answer: A null hypothesis is a statement of the status quo, one of no difference or no effect. If
the null hypothesis is not rejected, no changes will be made. An alternative hypothesis is one in
which some difference or effect is expected. Accepting the alternative hypothesis will lead to
changes in opinions or actions. Thus, the alternative hypothesis is the opposite of the null
hypothesis. The null hypothesis is always the hypothesis that is tested. The alternative hypothesis
represents the conclusion for which evidence is sought. The null hypothesis refers to a specified
value of the population parameter, not a sample statistic. In marketing research, the null
hypothesis is formulated in such a way that its rejection leads to the acceptance of the desired
conclusion.
Diff: 2 Page Ref: 446-447
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

152) Discuss the relationship between Type I error and Type II error and the power of a test.
Answer: Type I error occurs when the sample results lead to the rejection of the null hypothesis
when it is in fact true. The probability of Type I error is denoted as α. Type II error occurs
when, based on the sample results, the null hypothesis is not rejected when it is in fact false. The
probability of Type II error is denoted by β. Unlike α, which is specified by the researcher, the
magnitude of β depends on the actual value of the population parameter (proportion). The
complement (1 - β) of the probability of a Type II error is called the power of a statistical test.
The power of a test is the probability of rejecting the null hypothesis when it is false and should
be rejected. Although β is unknown, it is related to α. An extremely low value of α (e.g., = 0.001)
will result in intolerably high β errors. So it is necessary to balance the two types of errors. As a
compromise, α is often set at 0.05; sometimes it is 0.01; other values of α are rare. The level of α,
along with the sample size, will determine the level of β for a particular research design. The risk
of both α and β can be controlled by increasing the sample size. For a given level of α, increasing
the sample size will decrease β, thereby increasing the power of the test.
Diff: 3 Page Ref: 448
AACSB: Analytical thinking
LO: 15.4 Describe data analysis associated with parametric hypothesis testing for one sample,
two independent samples, and paired samples.

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153) Discuss the relationship between cross-tabulation and frequency distribution.


Answer: Whereas a frequency distribution describes one variable at a time, a cross-tabulation
describes two or more variables simultaneously. A cross-tabulation is the merging of the
frequency distribution of two or more variables in a single table. It helps us to understand how
one variable such as brand loyalty relates to another variable such as sex. Cross-tabulation results
in tables that reflect the joint distribution of two or more variables with a limited number of
categories or distinct values. The categories of one variable are cross-classified with the
categories of one or more other variables. Thus, the frequency distribution of one variable is
subdivided according to the values or categories of the other variables.
Diff: 3 Page Ref: 450-451
AACSB: Analytical thinking
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

154) Give three reasons why cross-tabulation is widely used in marketing research.
Answer: Cross-tabulation is widely used in commercial marketing research because (1) cross-
tabulation analysis and results can be easily interpreted and understood by managers who are not
statistically oriented; (2) the clarity of interpretation provides a stronger link between research
results and managerial action; (3) a series of cross-tabulations may provide greater insights into a
complex phenomenon than a single multivariate analysis; (4) cross-tabulation may alleviate the
problem of sparse cells, which could be serious in discrete multivariate analysis; and (5) cross-
tabulation analysis is simple to conduct and appealing to less sophisticated researchers.
Diff: 2 Page Ref: 451
AACSB: Reflective thinking
LO: 15.3 Explain data analysis associated with cross-tabulations and the associated statistics:
chi-square, phi coefficient, contingency coefficient, Cramer's V, and lambda coefficient.

35
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31) Nonmetric analysis of variance examines the difference in the central tendencies of more
than two groups when the dependent variable is measured on a nominal scale.
Answer: FALSE
Diff: 2 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

32) The Kruskal-Wallis one-way analysis of variance also examines the difference in medians.
Answer: TRUE
Diff: 3 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

33) Multivariate analysis of variance is appropriate when there are two or more dependent
variables that are correlated.
Answer: TRUE
Diff: 2 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

34) A statistical technique for examining the differences among means for two or more
populations is called ________.
A) chi-square
B) analysis of variance (ANOVA)
C) cross-tabulation
D) independent samples t test
Answer: B
Diff: 2 Page Ref: 485-486
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

35) Categorical independent variables are ________. The independent variables must all be
categorical (nonmetric) to use ________.
A) factors; ANOVA
B) covariates; ANOVA
C) parameters; regression
D) items; ANOVA
Answer: A
Diff: 3 Page Ref: 485-486
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.
6
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36) Which statement is correct concerning one-way ANOVA?


A) Only one categorical variable is involved.
B) A treatment is the same as a particular combination of factor levels.
C) The set of independent variables consists of both categorical and metric variables.
D) Both A and B are correct.
Answer: D
Diff: 2 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

37) An advanced analysis of variance procedure in which the effects of one or more metric-
scaled extraneous variables are removed from the dependent variable before conducting the
ANOVA is called ________.
A) analysis of covariance (ANCOVA)
B) one-way analysis of variance
C) n-way analysis of variance
D) decomposition of the total variation
Answer: A
Diff: 2 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

38) The null hypothesis for one-way ANOVA typically is that all ________.
A) proportions are equal
B) means are unequal
C) proportions are unequal
D) means are equal
Answer: D
Diff: 2 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

39) A covariate is a ________ independent variable used in ________.


A) metric; ANOVA
B) categorical; ANCOVA
C) metric; ANCOVA
D) categorical; ANOVA
Answer: C
Diff: 3 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

7
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40) Which of the statistical techniques below does not involve a metric independent variable
(Figure 16.1 in the text)?
A) t test
B) ANOVA
C) regression
D) Both A and B are correct.
Answer: D
Diff: 2 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

41) How consumers' "intentions to buy the brand" varies with different price levels is best
analyzed via ________.
A) t tests
B) one-way ANOVA
C) ANCOVA
D) regression
Answer: B
Diff: 3 Page Ref: 485-486
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

42) The strength of the effects of X (independent variable or factor) on Y (dependent variable) is
measured by ________.
A) eta2 (η2)
B) SSx
C) SSy
D) SSwithin
Answer: A
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

8
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43) Also referred to as SSerror, ________ is the variation in Y due to the variation within each of
the categories of X. This variation is not accounted for by X.
A) SSx
B) SSwithin
C) SSbetween
D) SSy
Answer: B
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

44) The total variation in y is ________.


A) SSx
B) SSwithin
C) SSbetween
D) SSy
Answer: D
Diff: 3 Page Ref: 486-489
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

45) In one-way ANOVA, separation of the variation observed in the dependent variable into the
variation due to the independent variables plus the variation due to error is called ________.
A) decomposition of the total variation
B) one-way analysis of variance
C) n-way analysis of variance
D) analysis of covariance (ANCOVA)
Answer: A
Diff: 2 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

46) The total variation in Y, denoted by SSy, can be decomposed into which two components?
A) SSy = SSx - SSerror
B) SSy = SSbetween + SSwithin
C) SSy = SSx + SSerror
D) B and C are correct.
Answer: D
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

9
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47) Which step are you on in the procedure for conducting one-way analysis of variance if you
are decomposing SSy into two components using the equation SSy = SSbetween + SSwithin?
A) decompose the total variation
B) measure the effects
C) test the significance
D) interpret the results
Answer: A
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

48) Which statement is correct concerning the decomposition of the total variation?
A) Because it is not known that all the groups have the same mean, we cannot calculate the
variance of all the observations together.
B) If the population mean is the same in all the groups, then the variation in the sample means
and the sizes of the sample groups can be used to estimate the variance of Y.
C) By comparing the Y variance estimates based on between-group and within group variation,
we can test the null hypothesis.
D) All statements are correct.
Answer: D
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

49) If you are estimating η2, you are at which step in the procedure for conducting one-way
analysis of variance?
A) decompose the total variation
B) measure the effects
C) test the significance
D) interpret the results
Answer: B
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

10
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50) The effects of X on Y is measured by ________.


A) SSerror
B) SSx
C) SSy
D) SSwithin
Answer: B
Diff: 3 Page Ref: 486-489
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

51) ________ is a measure of variation in Y that is explained by the independent variable X.


A) eta2 (η2)
B) SSx
C) SSy
D) SSwithin
Answer: A
Diff: 2 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

52) In one-way ANOVA, the null hypothesis may be tested by ________.


A) the t statistic
B) statistic
C) chi-square
D) eta2
Answer: B
Diff: 2 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

53) Which statement is correct if the null hypothesis for a one-way ANOVA is rejected?
A) The effect of the independent variable is significant.
B) The mean value of the dependent variable will be the same for different categories of the
independent variable.
C) The independent variable does not have a significant effect on the dependent variable.
D) Both B and C are correct.
Answer: A
Diff: 3 Page Ref: 486-489
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

11
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54) The ________ refers to the fact that ordinarily the assumption in analysis of variance that the
categories of the independent variable are fixed.
A) fixed-effects model
B) random-effects model
C) mixed-effects model
D) standard-effects model
Answer: A
Diff: 1 Page Ref: 493
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

55) In the ________, the categories or treatments are considered to be random samples from a
universe of treatments. Inferences are made to other categories not examined in the analysis.
A) fixed-effects model
B) random-effects model
C) mixed-effects model
D) standard-effects model
Answer: B
Diff: 1 Page Ref: 493
AACSB: Analytical thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

56) How consumers' intentions to buy a brand vary with different levels of price and different
levels of distribution is best analyzed via ________.
A) n-way ANOVA
B) one-way ANOVA
C) ANCOVA
D) regression
Answer: A
Diff: 3 Page Ref: 494-495
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

57) A major advantage of ________ is that it enables the researcher to examine interactions
between the factors.
A) one-way ANOVA
B) n-way ANOVA
C) t tests
D) tests
Answer: B
Diff: 2 Page Ref: 494-495
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.
12
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58) The strength of the joint effect of two (or more) factors or the overall effect is known as
________.
A) significance of the overall effect
B) significance of the main effect
C) multiple η2
D) significance of the interaction effect
Answer: C
Diff: 2 Page Ref: 494-495
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

59) A test finding that some differences exist between some of the treatment groups is a test of
the ________.
A) significance of the overall effect
B) significance of the main effect
C) multiple η2
D) significance of the interaction effect
Answer: A
Diff: 2 Page Ref: 494-495
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

60) Which F test is used in n-way ANOVA to test the significance of the overall effect?
A) F =

B) F =

C) F =

D) F =

Answer: B
Diff: 3 Page Ref: 494-495
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

13
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61) A test of the significance of the interaction between two or more independent variables is a
test of the ________.
A) significance of the overall effect
B) significance of the main effect
C) multiple η2
D) significance of the interaction effect
Answer: D
Diff: 1 Page Ref: 494-495
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

62) A test of the significance of the main effect for each individual factor is a test of the
________.
A) significance of the overall effect
B) significance of the main effect
C) multiple η2
D) significance of the interaction effect
Answer: B
Diff: 1 Page Ref: 494-495
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

63) In determining how different price levels will affect a household's cereal consumption, it
may be essential to take household size into account. This is best analyzed by ________.
A) n-way ANOVA
B) one-way ANOVA
C) ANCOVA
D) regression
Answer: C
Diff: 3 Page Ref: 498-499
AACSB: Analytical thinking
LO: 16.4 Describe analysis of covariance and show how it accounts for the influence of
uncontrolled independent variables.

64) Analysis of covariance includes at least one ________ independent variable and at least one
________ independent variable.
A) categorical; interval
B) ordinal; categorical
C) metric; interval
D) parametric; interval
Answer: A
Diff: 3 Page Ref: 498-499
AACSB: Analytical thinking
LO: 16.4 Describe analysis of covariance and show how it accounts for the influence of
uncontrolled independent variables.

14
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65) Important issues involved in the interpretation of ANOVA results include all of the following
except ________.
A) interactions
B) determining the appropriateness of the test
C) relative importance of factors
D) multiple comparisons
Answer: B
Diff: 2 Page Ref: 499-502
AACSB: Analytical thinking
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

66) Which statement is not true concerning interactions resulting from ANOVA?
A) In disordinal interactions of a crossover type, the relative effect of the levels of one factor
changes with the levels of the other.
B) Because it involves a change in rank order, disordinal interaction is stronger than ordinal
interaction.
C) Disordinal interactions of a crossover type represent the weakest interactions.
D) In ordinal interaction, the rank order of the effects related to one factor does not change
across the levels of the second factor.
Answer: C
Diff: 2 Page Ref: 499-502
AACSB: Reflective thinking
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

67) At what point does ω2 begin to represent a larger experimental effect?


A) .25
B) .15
C) .10
D) .06
Answer: B
Diff: 2 Page Ref: 499-502
AACSB: Analytical thinking
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

68) ________ are used to examine differences among two or more means of the treatment
groups.
A) Nonmetric ANOVA
B) Contrasts
C) Repeated measures ANOVA
D) Multivariate analysis of variance (MANOVA)
Answer: B
Diff: 3 Page Ref: 499-502
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.
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69) In ANOVA the relative contribution of a factor X is calculated as ________.

A) ω2 x =

B) ω2 x =

C) ω2 x =

D) ω2 x =

Answer: A
Diff: 3 Page Ref: 499-502
AACSB: Analytical thinking
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

70) ________ are determined before conducting the analysis, based on the researcher's
theoretical framework.
A) Single comparison contrasts
B) Multiple comparison contrasts
C) A priori contrasts
D) A posteriori contrasts
Answer: C
Diff: 1 Page Ref: 499-502
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

71) ________ are contrasts made after the analysis.


A) Single comparison contrasts
B) Multiple comparison contrasts
C) A priori contrasts
D) A posteriori contrasts
Answer: D
Diff: 1 Page Ref: 499-502
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

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72) ________ are contrasts that enable the researcher to construct generalized confidence
intervals that can be used to make pairwise comparisons of all treatment means.
A) Single comparison contrasts
B) Multiple comparison contrasts
C) A priori contrasts
D) A posteriori contrasts
Answer: B
Diff: 2 Page Ref: 499-502
LO: 16.5 Explain key factors pertaining to the interpretation of results with emphasis on
interactions, relative importance of factors, and multiple comparisons.

73) ________ is an ANOVA technique used when respondents are exposed to more than one
treatment condition and repeated measurements are obtained.
A) Nonmetric ANOVA
B) Contrasts
C) Repeated measures ANOVA
D) Multivariate analysis of variance (MANOVA)
Answer: C
Diff: 1 Page Ref: 502-503
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

74) Repeated measures analysis of variance may be thought of as an extension of the ________
to the case of more than two related samples.
A) z test
B) F test
C) t test
D) paired samples t test
Answer: D
Diff: 2 Page Ref: 502-503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

17
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75) ________ is an ANOVA technique for examining the difference in the central tendencies of
more than two groups when the dependent variable is measured on an ordinal scale.
A) Nonmetric ANOVA
B) Contrasts
C) Repeated measures ANOVA
D) Multivariate analysis of variance (MANOVA)
Answer: A
Diff: 3 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

76) ________ is an ANOVA technique using two or more metric dependent variables.
A) Nonmetric ANOVA
B) Contrasts
C) Repeated measures ANOVA
D) Multivariate analysis of variance (MANOVA)
Answer: D
Diff: 2 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

77) Suppose that four groups, each consisting of 100 randomly selected individuals, were
exposed to four different commercials about Tide detergent. After seeing the commercial, each
individual provided ratings on preference for Tide, preference for Proctor and Gamble (the
company making Tide), and preference for the commercial itself. Because these three preference
variables are correlated, ________ should be conducted to determine which commercial is the
most effective (produced the highest preferences across the three variables).
A) MANOVA
B) one-way ANOVA
C) n-way ANOVA
D) regression
Answer: A
Diff: 2 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

18
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78) Which statement about MANOVA is not true?


A) MANOVA examines group differences across multiple dependent variables simultaneously.
B) In MANOVA, the null hypothesis is that the vectors of means on multiple dependent
variables are equal across groups.
C) MANOVA is most appropriate if there are multiple dependent variables that are uncorrelated
or orthogonal.
D) Multivariate analysis of variance is appropriate when there are two or more dependent
variables that are correlated.
Answer: C
Diff: 2 Page Ref: 503
AACSB: Analytical thinking
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

79) When using SPSS Windows one-way ANOVA can be efficiently performed using the
________ program.
A) GENERAL LINEAR MODEL
B) NONPARAMETRIC TESTS
C) COMPARE MEANS
D) UNIVARIATE
Answer: C
Diff: 3 Page Ref: 505
AACSB: Information technology
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

80) When using SPSS Windows, for nonmetric analysis of variance, including the k-sample
median test and Kruskal-Wallis one way analysis of variance, the program ________ should be
used.
A) general linear model
B) nonparametric tests
C) compare means
D) univariate
Answer: B
Diff: 3 Page Ref: 506
AACSB: Information technology
LO: 16.6 Discuss specialized ANOVA techniques applicable to marketing such as repeated
measures ANOVA, nonmetric analysis of variance, and multivariate analysis of variance
(MANOVA).

19
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81) Explain SSbetween, SSwithin, and SSy and their relationship.


Answer:
∙ SSbetween. Also denoted as SSx, this is the variation in Y related to the variation in the means of
the categories of X. This represents variation between the categories of X, or the portion of the
sum of squares in Y related to X.
∙ SSwithin. Also referred to as SSerror, this is the variation in Y due to the variation within each
of the categories of X. This variation is not accounted for by X.
∙ SSy. The total variation in Y is SSy. SSy = SSbetween + SSwithin.
Diff: 2 Page Ref: 487-488
AACSB: Reflective thinking
LO: 16.2 Describe one-way analysis of variance, including decomposition of the total variation,
measurement of effects, significance testing, and interpretation of results.

82) List the procedure for conducting one-way analysis of variance.


Answer: The procedure for conducting one-way analysis of variance is described in Figure 16.2
in the text. It involves identifying the dependent and independent variable, decomposing the
total variation, measuring effects, testing significance, and interpreting results.
Diff: 2 Page Ref: 487
LO: 16.1 Discuss the scope of the analysis of variance (ANOVA) technique and its relationship
to the t test and regression.

83) What are the general steps involved in performing an ANCOVA?


Answer:
1. Remove variation in the dependent variable due to covariates by adjusting the dependent
variable's mean value within each treatment condition.
2. Perform analysis of variance on adjusted scores from step one.
3. Use appropriate F tests to test the significance of each covariate and the combined effects of
the covariates.
Diff: 3 Page Ref: 498-499
LO: 16.4 Describe analysis of covariance and show how it accounts for the influence of
uncontrolled independent variables.

20
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84) Draw the ANOVA interactive cases listed below (Figure 16.4 in the text). Name your
dependent variable Y and assume that there are two factors, X1 with three levels (X11, X12, and
X13), and X2 with two levels (X21 and X22). Briefly discuss/describe the interaction shown in
each of your drawings.
1. no interaction
2. ordinal interaction
3. disordinal interaction (noncrossover)
4. disordinal interaction (crossover)
Answer: Refer to Figure 16.4 in the text for a picture of what the students should draw in
response to this question and to follow the illustrative discussion given.

Case 1 depicts no interaction. The effects of X1 on Y are parallel over the two levels of X2.
Although there is some departure from parallelism, this is not beyond what might be expected
from chance. Parallelism implies that the net effect of X22 over X21 is the same across the three
levels of X1. In the absence of interaction, the joint effect of X1 and X2 is simply the sum of their
individual main effects.

Case 2 depicts an ordinal interaction. The line segments depicting the effects of X1 and X2 are
not parallel. The difference between X22 and X21 increases as we move from X11 to X12 and
from X12 to X13, but the rank order of the effects of X1 is the same over the two levels of X2.
Case 3 depicts disordinal interaction of a noncrossover type. The lowest effect of X1 at level X21
occurs at X11, and the rank order of effects is X11, X12, and X13. However, at level X22, the
lowest effect of X1 occurs at X12, and the rank order is changed to X12, X11, X13. Because it
involves a change in rank order, disordinal interaction is stronger than ordinal interaction.

Case 4 depicts disordinal interactions of a crossover type - the line segments cross each other. In
this case, the relative effect of the levels of one factor changes with the levels of the other. Note
that X22 has a greater effect than X21 when the levels of X1 are X11 and X12. When the level of
X1 is X13, the situation is reversed, and X21 has a greater effect than X22. (Note that in cases 1,
2, and 3, X22 had a greater impact than X21 across all three levels of X1.) Hence, disordinal
interactions of a crossover type represent the strongest interactions.
Diff: 3 Page Ref: 499-501
AACSB: Analytical thinking
LO: 16.3 Describe n-way analysis of variance and the testing of the significance of the overall
effect, the interaction effect, and the main effect of each factor.

21
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41) Multicollinearity arises when intercorrelations among the predictors are very low.
Answer: FALSE
Diff: 1 Page Ref: 537
AACSB: Analytical thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

42) In regression with dummy variables, the predicted Ŷ for each category is the mean of Y for
each category.
Answer: TRUE
Diff: 2 Page Ref: 538-539
AACSB: Analytical thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

43) Regression in which a single independent variable has been recoded into dummy variables is
equivalent to one-way analysis of variance.
Answer: TRUE
Diff: 2 Page Ref: 538-539
AACSB: Analytical thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

44) The product moment correlation is also known as the Pearson correlation coefficient and as
________.
A) simple correlation
B) bivariate correlation
C) correlation coefficient
D) all of the above
Answer: D
Diff: 1 Page Ref: 513-516
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

45) ________ is best to use to determine how strongly sales are related to advertising
expenditures.
A) Multiple regression analysis
B) Partial correlation coefficient
C) ANOVA
D) Product moment correlation (r)
Answer: D
Diff: 2 Page Ref: 513-516
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.
8
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46) The ________ is a statistic summarizing the strength of association between two metric
variables.
A) multiple regression analysis
B) partial correlation coefficient
C) ANOVA
D) product moment correlation
Answer: D
Diff: 2 Page Ref: 513-516
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

47) The equation for r involves dividing the ________ by ________.


A) COVxy; the product of the variance of X and Y (Sx2Sy2)
B) product of the standard deviation of X and Y (SxSy); COVxy
C) COVxy; the product of the standard deviation of X and Y (SxSy)
D) product of the variances of X and Y (Sx2Sy2); COVxy
Answer: C
Diff: 3 Page Ref: 513-516
AACSB: Analytical thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

48) The equation for r is represented as ________.


A) COVxy/ Sx2Sy2
B) SxSy/COV
C) COVxy/ SxSy
D) Sx2Sy2/COV
Answer: C
Diff: 2 Page Ref: 513-516
AACSB: Analytical thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

49) In the equation COVxy/ SxSy, Sx and Sy represent ________.


A) the standard deviation of X and Y
B) the variances of X and Y
C) the means of X and Y
D) the strength of the effects of X and Y
Answer: A
Diff: 2 Page Ref: 513-516
AACSB: Analytical thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

9
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50) r2 measures ________.


A) the proportion of variation in one variable that is explained by the other
B) the proportion of error variation
C) the proportion of variation in Y related to the variation of the categories of X
D) the proportion of variation in Y due to the variation within each of the categories of X
Answer: A
Diff: 2 Page Ref: 513-516
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

51) r = 0 indicates ________.


A) X and Y have a relationship
B) X and Y don't have a linear relationship
C) X and Y are unrelated
D) X and Y have a linear relationship
Answer: B
Diff: 2 Page Ref: 513-516
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

52) Which statement about the correlation coefficient, r, is true?


A) The calculation of r assumes that X and Y are metric variables whose distributions have the
same shape.
B) The correlation coefficient computed for a population is denoted by ρ(rho).
C) Data obtained by using rating scales with a small number of categories tends to deflate r.
D) All of the statements are true.
Answer: D
Diff: 3 Page Ref: 513-516
AACSB: Reflective thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

53) Which statement is not true about correlation matrices?


A) Usually only the lower portion of the matrix is considered.
B) The diagonal elements all equal 0.
C) A correlation matrix indicates the coefficient of correlation between each pair of variables.
D) The upper triangular portion of the matrix is a mirror image of the lower triangular portion.
Answer: B
Diff: 1 Page Ref: 513-516
AACSB: Reflective thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

10
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54) The ________ is a measure of the association between two variables after controlling or
adjusting for the effects of one or more additional variables.
A) regression analysis
B) partial correlation coefficient
C) ANOVA
D) product moment correlation
Answer: B
Diff: 2 Page Ref: 516-518
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

55) The question of "How strongly are sales related to advertising expenditures when the effect
of price is controlled?" is best answered via ________.
A) bivariate regression analysis
B) partial correlation coefficient
C) ANOVA
D) product moment correlation
Answer: B
Diff: 2 Page Ref: 516-518
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

56) Which statement is not correct about the partial correlation coefficient?
A) Partial correlations can be helpful for detecting spurious relationships.
B) The partial correlation coefficient is generally viewed as more important than the part
correlation coefficient.
C) The partial correlation coefficient represents the correlation between Y and X when the linear
effects of the other independent variables have been removed from X but not from Y.
D) The partial correlation coefficient can be calculated by a knowledge of the simple correlations
alone.
Answer: C
Diff: 2 Page Ref: 516-518
AACSB: Reflective thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

11
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57) Partial correlations have an order associated with them. The order indicates how many
variables are being adjusted or controlled. The simple correlation coefficient, r, has a ________,
as it does not control for any additional variables when measuring the association between two
variables. The coefficient rsy.z is a ________ partial correlation coefficient, as it controls for the
effect of one additional variable, Z.
A) zero-order; first-order
B) zero-order; second-order
C) first-order; second-order
D) first-order; third-order
Answer: A
Diff: 2 Page Ref: 516-518
AACSB: Analytical thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

58) The relationship between X and Y is spurious if ________.


A) Y increases exponentially with increases in X
B) the correlation between X and Y disappears when the effect of Z is controlled
C) Y decreases exponentially with decreases in X
D) both A and C are correct
Answer: B
Diff: 3 Page Ref: 516-518
AACSB: Reflective thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

59) ry(x.z) represents the ________.


A) partial correlation
B) Pearson correlation
C) part correlation
D) partition correlation
Answer: C
Diff: 2 Page Ref: 516-518
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

60) Which of the following is a measure of nonmetric correlation?


A) Pearson product moment correlation
B) Spearman's rho
C) Kendall's tau
D) both B and C
Answer: D
Diff: 1 Page Ref: 518-519
LO: 17.5 Discuss nonmetric correlation and measures such as Spearman's rho and Kendall's tau.

12
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61) When considering nonmetric correlation, as a rule of thumb, ________ is to be preferred


when a large number of cases fall into a relatively small number of categories (thereby leading to
a large number of ties).
A) Spearman's rho
B) Kendall's tau
C) chi-square
D) Pearson product moment correlation
Answer: B
Diff: 3 Page Ref: 518-519
AACSB: Analytical thinking
LO: 17.5 Discuss nonmetric correlation and measures such as Spearman's rho and Kendall's tau.

62) ________ is a statistical procedure for analyzing associative relationships between a metric
dependent variable and one or more independent variables.
A) Regression analysis
B) Partial correlation coefficient
C) ANOVA
D) Product moment correlation
Answer: A
Diff: 2 Page Ref: 519
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

63) ________ is a procedure for deriving a mathematical relationship, in the form of an equation,
between a single metric dependent variable and a single metric independent variable.
A) Chi-square
B) Part correlation
C) Multiple regression
D) Bivariate regression
Answer: D
Diff: 2 Page Ref: 519
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

13
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64) Which of the following situations is best addressed by regression?


A) Is there an association between market share and the size of the sales force?
B) Is there an association between market share and size of the sales force after adjusting for the
effect of sales promotion?
C) Determine how much of the variation in the dependent variable (store sales) can be explained
by the independent variables (price and level of advertisement).
D) Are consumers' perceptions of quality related to their perceptions of prices when the effect of
brand image is controlled?
Answer: B
Diff: 3 Page Ref: 519
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

65) Which statement is not true about regression analysis?


A) The terms dependent or criterion variables, and independent or predictor variables in
regression analysis do not imply that the criterion variable is dependent on the independent
variables in a causal sense.
B) Regression analysis can be used to determine if color preference is related to product size and
price.
C) Regression can be used to predict the values of the dependent variable.
D) Regression analysis is a powerful and flexible procedure for analyzing associative
relationships between a metric dependent variable and one or more independent variables.
Answer: B
Diff: 3 Page Ref: 519
AACSB: Reflective thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

66) A technique for fitting a straight line to a scattergram by minimizing the square of the
vertical distances of all the points from the line is known as the ________.
A) least-square procedure
B) scatter diagram plot
C) sum of square errors procedure
D) maximum residual procedure
Answer: A
Diff: 1 Page Ref: 521
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

14
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67) The bivariate regression model that accounts for the probabilistic or stochastic nature of the
relationship between X and Y is ________.
A) Ŷ = a + b1X1 + b2X2
B) Y = β0 + β1 Xi
C) Yi =β0 + β1 Xi + ei
D) Ŷ i = a + bXi
Answer: C
Diff: 1 Page Ref: 519
AACSB: Analytical thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

68) What is the bivariate regression equation if sample observations are used to predict Y?
A) Ŷ = a + b1X1 + b2X2
B) Ŷ = β0 + β1 Xi
C) Ŷ i =β0 + β1 Xi + ei
D) Ŷ i = a + bxi
Answer: D
Diff: 1 Page Ref: 522
AACSB: Analytical thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

69) Which statement is not true about the constant b in the bivariate regression equation Ŷ i = a
+ bXi?
A) It is usually referred to as the non-standardized regression coefficient.
B) It is the slope of the regression line and it indicates the expected change in Y when X is
changed by one unit.
C) It is the intercept of the regression line and it indicates the value of Y when X is zero.
D) It may be computed as b=COVxy/Sx2.
Answer: C
Diff: 2 Page Ref: 522
AACSB: Analytical thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

15
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70) Which equation depicts the relationship between the standardized and non-standardized
regression coefficients?
A) Byx = byx(S2x/S2y)
B) B2yx = byx(Sx/Sy)
C) Byx = byx(Sx/Sy)
D) B2yx = byx(S2x/S2y)
Answer: C
Diff: 2 Page Ref: 523
AACSB: Analytical thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

71) The standard deviation of b, or the standard error, is denoted as ________.


A) SEb
B) SDb
C) SSYb
D) none of the above
Answer: A
Diff: 2 Page Ref: 524
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

72) In bivariate regression, which statement is true concerning the coefficient of determination,
r2?
A) r2 is the square of the simple correlation coefficient obtained by correlating the two variables.
B) r2 varies between 0 and 1.
C) r2 signifies the proportion of the total variation in Y accounted for by the variation in X.
D) All are correct.
Answer: D
Diff: 1 Page Ref: 525-526
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

16
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73) ________ is the appropriate test statistic to use to determine the significance of the
coefficient of determination in bivariate regression.
A) statistic
B) T statistic
C) Z statistic
D) ω2
Answer: A
Diff: 2 Page Ref: 525-526
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

74) To estimate the accuracy of predicted values, Ŷ, found in bivariate regression, it is useful to
calculate the ________, the standard deviation of the actual Y values from the predicted Ŷ values.
A) coefficient of determination
B) standard error of the estimate
C) covariance
D) standard error
Answer: B
Diff: 3 Page Ref: 525-526
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

75) ________ is a statistical technique that simultaneously develops a mathematical relationship


between two or more independent variables and an interval-scaled dependent variable.
A) Chi-square
B) The least-squares procedure
C) Multiple regression
D) Bivariate regression
Answer: C
Diff: 2 Page Ref: 529-532
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

76) The general form of the multiple regression model is estimated by which equation?
A) Ŷ i = a + bXi
B) Ŷ i =β0 + β1 Xi + ei
C) Ŷ =a + b1 X1 + b2 X2 + b3X3 + ... + bkXk
D) Ŷ = a + b1X1 + b2X2
Answer: C
Diff: 1 Page Ref: 529-532
AACSB: Analytical thinking
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

17
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77) Which statistic is associated only with multiple regression and not with bivariate regression?
A) adjusted R2
B) partial F test
C) estimated or predicted value (Ŷ)
D) both A and B
Answer: D
Diff: 2 Page Ref: 529-532
AACSB: Analytical thinking
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

78) The ________ denotes the change in the predicted value, Ŷ, per unit change in X1 when the
other independent variables, X2 to Xk, are held constant.
A) partial regression coefficient
B) partial correlation coefficient
C) part correlation coefficient
D) part regression coefficient
Answer: A
Diff: 2 Page Ref: 529-532
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

79) Which statement is not true about partial regression coefficients?


A) The combined effects of X1 and X2 on Y are additive. In other words, if X1 and X2 are each
changed by one unit, the expected change in Y would be (b1 + b2).
B) The beta coefficients are the partial regression coefficients obtained when all the variables (Y,
X1, X2...Xk) have been standardized to a mean of 0 and a variance of 1 before estimating the
regression equation.
C) Partial regression coefficients have an order associated with them.
D) Both A and B are not true.
Answer: C
Diff: 2 Page Ref: 529-532
AACSB: Reflective thinking
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

18
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80) In multiple regression, if the overall null hypothesis is rejected, ________.


A) the mean value of the dependent variable will be different for different categories of the
independent variable
B) the means of the independent variables are not equal
C) there is an association between the independent variables
D) one or more population partial regression coefficients have a value different from 0
Answer: D
Diff: 2 Page Ref: 529-532
AACSB: Reflective thinking
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

81) In multiple regression, if the overall null hypothesis is rejected, which statement is true?
A) We know which specific βs are nonzero.
B) We can use t = b/SEb to determine which βs are nonzero.
C) We do not know which βs are nonzero.
D) Both B and C are correct.
Answer: D
Diff: 2 Page Ref: 529-532
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

82) ________ is a regression procedure in which the predictor variables enter or leave the
regression equation one at a time.
A) Multiple regression
B) Bivariate regression
C) Dummy variable regression
D) Stepwise regression
Answer: D
Diff: 1 Page Ref: 535
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

83) ________ is a state of very high intercorrelations among independent variables.


A) Hypercollinearity
B) Partial collinearity
C) Multicollinearity
D) Variable collinearity
Answer: C
Diff: 2 Page Ref: 537
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

19
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84) Which of the following is not a problem associated with multicollinearity?


A) The partial regression coefficients may not be estimated precisely. The standard errors are
likely to be high.
B) It becomes difficult to assess the relative importance of the independent variables in
explaining the variation in the dependent variables.
C) Predictor variables may be incorrectly included or removed in stepwise regression.
D) It becomes difficult to compute the correct test statistic.
Answer: D
Diff: 3 Page Ref: 537
AACSB: Reflective thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

85) Which statement is true about cross-validation.


A) It can be used for evaluating the model for chance variations in the data and other problems
associated with regression.
B) It examines whether the regression model continues to hold on comparable data not used in
the estimation.
C) A special form of validation is called double cross-validation where the sample is split into
halves.
D) All of the above statements are true.
Answer: D
Diff: 2 Page Ref: 538
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

86) ________ variables may be used as predictors or independent variables by coding them as
dummy variables.
A) Interval
B) Categorical
C) Ratio
D) All of the above
Answer: B
Diff: 1 Page Ref: 538-539
AACSB: Analytical thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

20
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87) The regression equation for a categorical variable with four categories would be modeled as
________.
A) Ŷ i = a + b1 D1 + b2 D2 + b3D3
B) Ŷ i = a + b1 D1 + b2 D2 + b3D3 + b4D4
C) Ŷ = b1 D1 + b2 D2 + b3D3
D) Ŷ = b1 D1 + b2 D2 + b3D3 + b4D4
Answer: A
Diff: 2 Page Ref: 538-539
AACSB: Analytical thinking
LO: 17.4 Describe specialized techniques used in multiple regression analysis, particularly
stepwise regression, regression with dummy variables, and analysis of variance and covariance
with regression.

88) Suppose a researcher wants to explain attitudes towards a respondent's city of residence in
terms of duration of residence in the city. The attitude is measured on an 11-point scale and the
duration of residence is measured in terms of the number of years the respondent has lived in the
city. In a pretest of 12 respondents, the calculated t value for the correlation coefficient based on
the data given is 8.414. The critical value of t for a two-tailed test and α = 0.05 is 2.228. r =
.9361. What is the null hypothesis for this scenario? What do the results mean in terms of the
null hypothesis and the correlation coefficient, r?
Answer: The null hypothesis of no relationship between X and Y is rejected. This along with
the positive sign of r, indicates that attitude toward the city is positively related to the duration of
residence in the city. Moreover, the high value of r indicates that this relationship is strong. If
this were a large and representative sample, the implication would be that managers, city
officials, and politicians wishing to reach people with a favorable attitude toward the city should
target long-time residents of that city.
Diff: 2 Page Ref: 513-516
AACSB: Analytical thinking
LO: 17.1 Discuss the concepts of product moment correlation, partial correlation, and part
correlation and show how they provide a foundation for regression analysis.

21
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89) In what ways can regression analysis be used?


Answer:
1. Determine whether the independent variables explain a significant variation in the dependent
variable: whether a relationship exists.
2. Determine how much of the variation in the dependent variable can be explained by the
independent variables: strength of the relationship.
3. Determine the structure or form of the relationship: the mathematical equation relating the
independent and dependent variables.
4. Predict the values of the dependent variable.
5. Control for other independent variables when evaluating the contributions of a specific
variable or set of variables.
Diff: 2 Page Ref: 519
AACSB: Reflective thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

90) Briefly explain how a scatter diagram benefits the researcher?


Answer: A scatter diagram is useful for determining the form of the relationship between the
variables. A plot can alert the researcher to patterns in the data, or to possible problems. Any
unusual combinations of the two variables can be easily identified.
Diff: 1 Page Ref: 521
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

91) What are the assumptions made by the regression model in estimating the parameters and in
significance testing?
Answer:
1. The error term is normally distributed. For each fixed value of X, the distribution of Y is
normal.
2. The means of all these normal distributions of Y, given X, lie on a straight line with slope b.
3. The mean of the error term is 0.
4. The variance of the error term is constant. This variance does not depend on the values
assumed by X.
5. The error terms are uncorrelated. In other words, the observations have been drawn
independently.
Diff: 3 Page Ref: 527
AACSB: Analytical thinking
LO: 17.2 Explain the nature and methods of bivariate regression analysis and describe the
general model, estimation of parameters, standardized regression coefficient, significance
testing, prediction accuracy, residual analysis, and model cross-validation.

22
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92) Given the multiple regression equation, Ŷ = a + b1X1 + b2X2, and the bivariate equation Ŷ
= a + bX, why is the partial regression coefficient, b1, different from the regression coefficient,
b, obtained by regressing Y on only X1?
Answer: This happens because X1 and X2 are usually correlated. In bivariate regression, X2 was
not considered and any variation in Y that was shared by X1 and X2 was attributed to X1.
However, in the case of multiple independent variables, this is no longer true.
Diff: 3 Page Ref: 529-530
AACSB: Analytical thinking
LO: 17.3 Explain the nature and methods of multiple regression analysis and the meaning of
partial regression coefficients.

23
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26) When the probability of success, p, is modeled using OLS regression, p is constrained to lie
between 0 and 1.
Answer: FALSE
Diff: 3 Page Ref: 568-571
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

27) The procedure that is used to estimate the parameters of the binary logit model is called the
maximum likelihood method.
Answer: TRUE
Diff: 2 Page Ref: 568-571
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

28) Discriminant analysis is available in EXCEL.


Answer: FALSE
Diff: 2 Page Ref: 674
LO: 18.6 Explain the role of software in conducting discriminant and logit analysis using SPSS
and SAS.

29) An examination of differences across groups lies at the heart of the basic concept of
________.
A) regression analysis
B) discriminant analysis
C) conjoint analysis
D) factor analysis
Answer: B
Diff: 2 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

30) In discriminant analysis, the criterion or dependent variable is ________ and the predictor or
independent variables are ________ in nature.
A) interval; categorical
B) ordinal; interval
C) categorical; interval
D) ordinal; categorical
Answer: C
Diff: 1 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

6
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31) The linear combinations of independent variables developed by discriminant analysis that
will best discriminate between the categories of the dependent variable are ________.
A) discriminant functions
B) discriminant scores
C) characteristic profiles
D) classification matrix
Answer: A
Diff: 3 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

32) Which of the following statements is not an objective of discriminant analysis?


A) examination of whether significant differences exist among the groups, in terms of the
criterion variables
B) determination of which predictor variables contribute to most of the intergroup differences
C) classification of cases to one of the groups based on the values of the predictor variables
D) evaluation of the accuracy of classification
Answer: A
Diff: 3 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

33) Discriminant analysis can be used to answer questions such as ________.


A) How much of the variation in sales can be explained by advertising expenditures, prices, and
level of distribution?
B) In terms of demographic characteristics, how do customers who exhibit store loyalty differ
from those who do not?
C) What are the distinguishing characteristics of consumers who respond to direct mail
solicitations?
D) Both B and C are correct.
Answer: D
Diff: 1 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

34) Discriminant/logit analysis is similar to regression and ANOVA in which of the areas stated
below (Table 18.1 in the text)?
A) nature of the dependent variables
B) nature of the independent variables
C) both A and B
D) none of the above
Answer: D
Diff: 3 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

7
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35) The nature of dependent and independent variables in the binary logit model is similar to that
in ________.
A) multivariate analysis of variance
B) analysis of variance
C) regression analysis
D) discriminant analysis
Answer: D
Diff: 2 Page Ref: 551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

36) Discriminant/logit analysis is similar to regression and ANOVA in which of the areas stated
below (Table 18.1 in the text)?
A) number of dependent variables
B) number of independent variables
C) both A and B
D) none of the above
Answer: C
Diff: 3 Page Ref: 550-551
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

37) D is the ________ in the model D = b0 + b1 X1 + b2 X2 + b3X3 + ... + bkXk.


A) discriminant score
B) disordinal interaction
C) difference variable
D) discriminant coefficients or weights
Answer: A
Diff: 1 Page Ref: 551
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

38) Sometimes also called confusion or prediction matrix, the ________ contains the number of
correctly classified and misclassified cases.
A) classification matrix
B) total correlation matrix
C) pooled within-group correlation matrix
D) identity matrix
Answer: A
Diff: 1 Page Ref: 552
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

8
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39) As one of the statistics associated with discriminant analysis, ________ are obtained when
the unstandardized coefficients are multiplied by the values of the variables and the products are
summed and added to the constant term.
A) Wilks' λ
B) discriminant scores
C) discriminant function coefficients
D) eigenvalue
Answer: B
Diff: 3 Page Ref: 552
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

40) As one of the statistics associated with discriminant analysis, the ________ (unstandardized)
are the multipliers of variables when the variables are in the original units of measurement.
A) Wilks' λ
B) discriminant scores
C) discriminant function coefficients
D) eigenvalue
Answer: C
Diff: 3 Page Ref: 552
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

41) As one of the statistics associated with discriminant analysis, the ________ for each
predictor is the ratio of the within-group sum of squares to the total sum of squares. Its value
varies between 0 and 1.
A) Wilks' λ
B) discriminant scores
C) discriminant function coefficients
D) eigenvalue
Answer: A
Diff: 3 Page Ref: 552
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

9
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42) The assumptions in discriminant analysis are that each of the groups is a sample from a
________ population and all of the populations have the same ________.
A) multivariate normal; standard deviation
B) multivariate normal; covariance matrix
C) multivariate normal; standard error
D) multivariate normal; variance
Answer: B
Diff: 3 Page Ref: 553-554
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

43) Which of the following is not one of the steps involved in the "formulating the problem" step
in discriminant analysis?
A) convert the dependent variable into categories
B) divide the sample into analysis and validation samples
C) estimate the discriminant function coefficients
D) repeatedly conduct the validation of the discriminant function
Answer: C
Diff: 2 Page Ref: 553-554
AACSB: Reflective thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

44) If you are using the direct method or stepwise discriminant analysis, you are at the ________
step of conducting discriminant analysis.
A) formulate the problem
B) estimate the discriminant function coefficients
C) assess the validity of the discriminant analysis
D) determine the size of the discriminant function
Answer: B
Diff: 2 Page Ref: 555
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

10
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45) What does it mean if the discriminant function is estimated and the square of the canonical
correlation is .64?
A) 64% of the variance in the dependent variable is explained by the model.
B) The null hypothesis is not rejected. Therefore, there is no significant discrimination between
groups.
C) 64% of the explained variance is accounted for.
D) B and C are correct.
Answer: A
Diff: 3 Page Ref: 555
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

46) In discriminant analysis, we can obtain some idea of the relative importance of the variables
by ________.
A) examining the absolute magnitude of the standardized discriminant function coefficients
B) examining the structure correlations, or canonical loadings or discriminant loadings
C) examining the unstandardized discriminant function coefficients
D) A and B are correct
Answer: D
Diff: 2 Page Ref: 558
AACSB: Analytical thinking
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

47) If you are using the leave-out option of SPSS, you are at the ________ step of discriminant
analysis.
A) estimate the discriminant coefficients
B) determine the significance of the discriminant function
C) interpret the results
D) assess validity of discriminant analysis
Answer: D
Diff: 2 Page Ref: 560
AACSB: Information technology
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

11
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48) The ________ is used for estimating the ________; the ________ is used for developing the
________.
A) analysis sample; discriminant function; validation sample; classification matrix
B) validation sample; discriminant function; analysis sample; classification matrix
C) classification matrix; discriminant function; validation sample; analysis sample
D) none of the above
Answer: A
Diff: 3 Page Ref: 560
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

49) If there are 10 groups and 8 predictors, how many discriminant functions can be estimated?
A) ten
B) nine
C) eight
D) seven
Answer: C
Diff: 3 Page Ref: 562
AACSB: Analytical thinking
LO: 18.3 Discuss multiple discriminant analysis and the distinction between two-group and
multiple discriminant analysis.

50) In multiple discriminant analysis, the interpretation of results is aided by an examination of


all of the following except ________.
A) the standardized discriminant function coefficients
B) the correlation coefficients
C) the structure correlations
D) certain plots
Answer: B
Diff: 2 Page Ref: 562, 565
AACSB: Analytical thinking
LO: 18.3 Discuss multiple discriminant analysis and the distinction between two-group and
multiple discriminant analysis.

51) A ________ is a tool for assessing discriminant analysis results that plots the group
membership of each case on a graph.
A) characteristic profile
B) scattergram
C) territorial map
D) pie chart
Answer: C
Diff: 2 Page Ref: 565
LO: 18.3 Discuss multiple discriminant analysis and the distinction between two-group and
multiple discriminant analysis.

12
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52) Which of the following statements is true about stepwise discriminant analysis?
A) The predictors are entered sequentially based on their ability to discriminate between groups.
B) The predictor with the highest F ratio is the first to be selected for inclusion in the
discriminant function, if it meets certain significance and tolerance criteria.
C) Each predictor selected is tested for retention based on its association with the other
predictors selected.
D) All of the above statements are true.
Answer: D
Diff: 2 Page Ref: 568
AACSB: Analytical thinking
LO: 18.4 Demonstrate stepwise discriminant analysis and the Mahalanobis procedure.

53) When the dependent variable is binary and there are several independent variables that are
metric, in addition to two-group discriminant analysis all of the following models can be used
except ________.
A) OLS regression
B) the logit model
C) multiple discriminant analysis
D) the probit model
Answer: C
Diff: 3 Page Ref: 568
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

54) The binary logit model is also called ________.


A) stepwise regression
B) logistic regression
C) OLS regression
D) none of the above
Answer: B
Diff: 2 Page Ref: 568-569
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

55) When the probability of success, p is modeled using a binary logit model, it is constrained to
lie between ________.
A) 0 to -1
B) -1 to 1
C) 1 to 100
D) 0 and 1
Answer: D
Diff: 2 Page Ref: 569-570
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

13
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56) Cox and Snell R square and Nagelkerke R2 are measures of model fit used in ________.
A) logistic regression
B) OLS regression
C) the binary logit model
D) Both A and C are correct.
Answer: D
Diff: 3 Page Ref: 569-570
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

57) The ________ is a test of significance of the logistic regression coefficient based on the
asymptotic normality property of maximum likelihood estimates.
A) Nagelkerke R2
B) Wald statistic
C) Wilks' λ
D) Cox and Snell R square
Answer: B
Diff: 2 Page Ref: 569-570
AACSB: Analytical thinking
LO: 18.5 Describe the binary logit model and its advantages over discriminant and regression
analysis.

58) Discriminant analysis can be conducted via all of the following except ________.
A) SPSS
B) EXCEL
C) MINITAB
D) SAS
Answer: B
Diff: 2 Page Ref: 574
AACSB: Information technology
LO: 18.6 Explain the role of software in conducting discriminant and logit analysis using SPSS
and SAS.

14
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59) Discuss the similarities and differences among ANOVA, regression, and discriminant
analysis (Table 18.1 in the text).
Answer: All three procedures involve a single criterion or dependent variable and multiple
predictor or independent variables. However, the nature of these variables differ. In analysis of
variance and regression analysis, the dependent variable is metric or interval scaled (amount of
life insurance purchased in dollars), whereas in discriminant analysis it is categorical (amount of
life insurance purchased classified as high, medium, or low). The independent variables are
categorical in the case of analysis of variance (age and income are each classified as high,
medium, or low) but metric in the case of regression and discriminant analysis (age in years and
income in dollars, i.e., both measured on a ratio scale).
Two-group discriminant analysis, in which the dependent variable has only two categories, is
closely related to multiple regression analysis. In this case, multiple regression, in which the
dependent variable is coded as a 0 or 1 dummy variable, results in partial regression coefficients
that are proportional to discriminant function coefficients.
Diff: 2 Page Ref: 550-551
AACSB: Reflective thinking
LO: 18.1 Describe the concept of discriminant analysis, its objectives, and its applications in
marketing research.

60) What are the steps involved in conducting discriminant analysis (Figure 18.2 in the text)?
Answer: The steps involved in conducting discriminant analysis are shown in Figure 18.2 in the
text as:
1. Formulate the problem.
2. Estimate the discriminant function coefficients.
3. Determine the significance of the discriminant function.
4. Interpret the results.
5. Assess the validity of the discriminant analysis.
Diff: 2 Page Ref: 553
LO: 18.2 Outline the procedures for conducting discriminant analysis, including the formulation
of the problem, estimation of the discriminant function coefficients, determination of
significance, interpretation, and validation.

15
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DEADLINE 23H00 18/11/2022


I. TECHNIQUE REVIEW
1) What is factor analysis? (Tâm)
2) What is its purpose? (Tâm)
3) Which situation, in terms of variables’ characteristic, is factor analysis appropriate to be used to
analyse? (Trà My) done slide
4) Give some management / marketing questions that can be answered by employing factor analysis
(Minh Lương)
5) Compare factor analysis to discriminant analysis, correlation & regression (Ngân)
II. SPSS
LINK CANVA

1. What is factor analysis?


Factor analysis is a general name denoting a class of procedures primarily used for data reduction and
summarization. In marketing research, there may be a large number of variables, most of which are
correlated and which must be reduced to a manageable level. Relationships among sets of many
interrelated variables are examined and represented in terms of a few underlying factors.

- The two types:

Exploratory Factor Analysis (EFA) Confirmatory Factor Analysis (CFA)

Purpose To explore patterns To perform hypothesis testing

When is it used? If you don’t have any idea about what Used for verification as long as you have a
structure your data is or how many specific idea about what structure your
dimensions are in a set of variables data is or how many dimensions are in a
set of variables.

Applications Provides information about the optimal Can specify the number of factors

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number of factors required to represent required.


the data set. “Does my ten question survey accurately
measure one specific factor?”
A good choice if you don’t have any idea
about what common factors might exist.

2. What is its purpose? Factor analysis is used in the following circumstances:


- To identify underlying dimensions, or factors, that explain the correlations among a set of variables.
- To identify a new, smaller set of uncorrelated variables to replace the original set of correlated
variables in subsequent multivariate analysis (regression or discriminant analysis).
- To identify a smaller set of salient variables from a larger set for use in subsequent multivariate
analysis.
● Let’s say you’re a marketer looking to research your market through surveys to determine people’s
satisfaction with a product. Satisfaction is hard to quantitate and it’s even harder to determine
what factors lead to it. You would design a questionnaire that would focus on questions pertaining
to customer satisfaction. This would include variables like product durability, packaging, the
chance of reuse. After the customers fill the surveys, you would then do a factor analysis that
would extract the variance of each variable and tell you which factor matters the most on customer
satisfaction. If you find highly correlated answers for separate variables/questions, you would
combine them in a single factor for future analyses.

3. Which situation, in terms of variables’ characteristic, is factor analysis appropriate to be used to


analyse? (Trà My)
● Factor Analysis Model:
- Mathematically, factor analysis is somewhat similar to multiple regression analysis, in that each
variable is expressed as a linear combination of underlying factors.

- The unique factors are uncorrelated with each other and with the common factors. The common
factors themselves can be expressed as linear combinations of the observed variables.

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● Key statistics associated with Factor Analysis


- Bartlett’s test of sphericity: is a test statistic used to examine the hypothesis that the variables are
uncorrelated in the population. In other words, the population correlation matrix is an identity matrix;
each variable correlates perfectly with itself (r = 1) but has no correlation with the other variables ( r =
0).

→ A significant statistical test (usually less than 0.05) shows that the correlation matrix is indeed not an
identity matrix (rejection of the null hypothesis) as represented in the table.
- The Kaiser-Meyer-Olkin (KMO) Test is a measure of how suited your data is for Factor Analysis.
KMO returns values between 0 and 1. High values (between 0.5 and 1.0) indicate factor analysis is
appropriate. Values below 0.5 imply that factor analysis may not be appropriate.

→ We had a KMO value of .853. This indicates that the degree of information among the variables overlap
greatly/the presence of a strong partial correlation. Hence, it is plausible to conduct factor analysis.
- Correlation Matrix: A correlation matrix is a lower triangle matrix showing the simple correlations, r,
between all possible pairs of variables included in the analysis. The diagonal elements, which are all 1,
are usually omitted.

- Communality: is the amount of variance a variable shares with all the other variables being
considered. This is also the proportion of variance explained by the common factors. The higher the

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communality (closer to 1) the larger the amount of information that will be extracted. A good way to
measure factor analysis is to have a communality of at least 0.40. By default, the initial value of
communality for each variable is 1.00 or 100% because at the beginning of the factor analysis, none of
this information has been extracted.

→ The minimum amount of information is 56.6% by PEU3 indicating 43.4% loss of information.
- Eigenvalue: The eigenvalue represents the total variance explained by each factor. When the
eigenvalue of a factor is less than 1, it explains less variance than the variables included in the
factor itself; such a factor should not be considered.
- Factor loadings: Factor loadings are simple correlations between the variables and the factors. All
variables load on all factors but they load highly on some specific factors. Range is ±1.

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→ In the bottom right of the output, we see that the five factors account for 81.8% of the variance. The %
Var row along the bottom shows how much of the variance each explains. The five factors are roughly
equal, explaining between 13.5% to 19% of the variance. The Communality column displays the
proportion of the variance the five factors explain for each variable. Values closer to 1 are better. The five
factors explain the most variance for Resume (0.989) and the least for Appearance (0.643). In summary,
these five factors explain a large proportion of the variance, and we can devise reasonable labels for each.
These five latent factors drive the values of the 12 variables we measured.
- Factor loading plot: is a plot of the original variables using the factor loadings as coordinates.
- Factor matrix: A factor matrix contains the factor loadings of all the variables on all the factors
extracted.
- Factor score: are composite scores estimated for each respondent on the derived factors.
- Factor scores coefficient matrix: This matrix contains the weights, or factor score coefficients,
used to combine the standardized variables to obtain factor scores.
- Percentage of variance: This is the percentage of the total variance attributed to each factor.
- Residuals: are the differences between the observed correlations, as given in the input correlation
matrix, and the reproduced correlations, as estimated from the factor matrix.
- Scree plot: is a plot of the eigenvalues against the number of factors in order of extraction. It is
important to note that scree plot is sometimes difficult to read because the point where the curve
flattens is subjective.

→ The subjectivity of the scree plot is evident in the output we obtained below. A careful look at this plot
shows that the curve begins to flatten at the eighth factor while the exact number of factors extracted is 5.
So, you ought to be careful whenever you interpret the result using a scree plot.
● Conducting Factor Analysis:

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Determine the Method of Factor Analysis


The two basic approaches are principal components analysis and common factor analysis:
- Principal components analysis is recommended when the primary concern is to determine the
minimum number of factors that will account for maximum variance in the data.
- Common factors analysis include the methods of unweighted least squares, generalized least
squares and alpha factoring.

Determine the Number of Factors


It is possible to compute as many principal components as there are variables, but in doing so, no
parsimony is gained. In order to summarize the information contained in the original variables, a smaller
number of factors should be extracted. Several procedures have been suggested for determining how many
factors to extract:
- Determination Based On Eigenvalues: In this approach, only factors with eigenvalues greater
than 1.0 are retained; the other factors are not included in the model. An eigenvalue represents the
amount of variance associated with the factor. Hence, only factors with a variance greater than 1.0
are included. Factors with variance less than 1.0 are no better than a single variable, because, due to
standardization, each individual variable has a variance of 1.0. If the number of variables is less
than 20, this approach will result in a conservative number of factors.

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- Determination Based On Scree Plot: The plot has a distinct break between the steep slope of
factors, with large eigenvalues and a gradual trailing off associated with the rest of the factors. This
gradual trailing off is referred to as the scree. The number of factors determined by a scree plot will
be one or a few more than that determined by the eigenvalue criterion.
- Determination Based On Percentage Of Variance: It is recommended that the factors extracted
should account for at least 60 percent of the variance.
- Determination Based On Split-Half Reliability: The sample is split in half and factor analysis is
performed on each half.
- Determination Based On Significance Tests

Rotate Factors
Rotating the factors produces a simpler matrix that is easier to interpret. We would like each factor to have
nonzero, or significant, loadings or coefficients for only some of the variables. If several factors have high
loadings with the same variable, it is difficult to interpret them. Different methods of rotation may result in
the identification of different factors.
- Orthogonal rotation (the axes are maintained at right angle) minimizes the number of variables with
high loadings on a factor, thereby enhancing the interpretability of the factors. [varimax procedure]
- Oblique rotation is used when the axes are not maintained at right angles, and the factors are
correlated.

● Pros and Cons:

Pros Cons

Measurable Attributes Incomprehensive Results

Cost-Effective Non-Identification of Complicated Factors

Flexible Approach Reliant on Theory


https://www.analyticssteps.com/blogs/factor-analysis-types-applications

4. Give some management / marketing questions that can be answered by employing factor analysis:

The technique has numerous applications in marketing research. For example:


● It can be used in market segmentation for identifying the underlying variables on which to
group the customers. New car buyers might be grouped based on the relative emphasis they place
on economy, convenience, performance, comfort, and luxury. This might result in five segments:

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economy seekers, convenience seekers, performance seekers, comfort seekers, and luxury seekers.
● In product research, factor analysis can be employed to determine the brand attributes that
influence consumer choice. Toothpaste brands might be evaluated in terms of protection against
cavities, whiteness of teeth, taste, fresh breath, and price.
● In advertising studies, factor analysis can be used to understand the media consumption
habits of the target market. The users of frozen foods may be heavy viewers of cable TV, see a lot
of movies, and listen to country music.
● In pricing studies, it can be used to identify the characteristics of price sensitive consumers.
For example, these consumers might be methodical, economy minded, and home centered.
● In management, it can be used to reduce your data from 30+ variables into a smaller and
more useful set of variables.
● To identify what news strategies should be formulated to target the core customers.

Why do we need an analytical approach to market segmentation?


When segmenting markets without an analytical approach, marketing managers often segment customers
according to their impressions or based on their gut feelings after talking to existing or potential
customers.In addition, segmentation tends to focus on observable descriptors (eg, customer
demographics such as gender, age or region) which, however, often fail to accurately reflect
underlying, often unobservable customer needs and preferences.
Why do we need segmentation?
No customer is like any other. Customers vary considerably in their needs and preferences; regardless of
whether these needs and preferences are real or perceived. These differences are known as
customer heterogeneity.

5. Compare factor analysis to discriminant analysis, correlation & regression (Ngân)

Factor Analysis Discriminant Correlation Regression

Defined Does not require One variable is considered as the dependent or criterion variable, and the
Variables defined variables. others as independent or predictor variables.
There is no
such The criterion or Two metric variables: A dependent variable
distinction compared dependent variable is interval or ratio scales. (metric) and one or
to 3 others. It is an categorical and the more independent

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interdependence predictor/ independent variables.


technique in that an variables are metric.
entire set of
interdependent
relationships is
examined.

Purposes Primarily used for data The classification and The strength of The prediction of the
reduction and explanation of association between dependent variable with
summarization. Since observations into two two variables. the help of independent
there will be some or more groups or variables that have
unexplained factors that categories. some relations.
influence the
covariation among
multiple observations
while conducting a
research. Factor
analysis attempts to
discover these factors
in order to eliminate
unhelpful data for
obtaining a more
helpful set of variables.

Model
Y: DVs
: IDVs
E: random error term
Β: regression
coefficients

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25) One method of assessing reliability and validity of clustering is to use different methods of
clustering and compare the results.
Answer: TRUE
Diff: 2 Page Ref: 619
LO: 20.4 Describe the purpose and methods for evaluating the quality of clustering results and
assessing reliability and validity.

26) In hierarchical clustering, the solution may depend on the order of cases in the data set.
Answer: FALSE
Diff: 3 Page Ref: 619
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

27) In non-hierarchical clustering, the F test is only descriptive. Because the cases or objects are
systematically assigned to clusters to maximize differences on the clustering variables, the
resulting probabilities should not be interpreted as testing the null hypothesis of no differences
among clusters.
Answer: TRUE
Diff: 2 Page Ref: 622
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

28) To reduce the number of variables, a large set of variables can often be replaced by the set of
cluster components.
Answer: TRUE
Diff: 1 Page Ref: 647
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

29) Principal components are usually easier to interpret than the cluster components.
Answer: FALSE
Diff: 3 Page Ref: 624
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

30) When cluster analysis is also used for clustering variables to identify homogeneous groups,
the units used for analysis are the variables and the distance measures are computed for all pairs
of variables.
Answer: TRUE
Diff: 3 Page Ref: 624
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

31) Which method of analysis does not classify variables as dependent or independent?
A) regression analysis
B) discriminant analysis
C) analysis of variance
D) cluster analysis
Answer: D
Diff: 1 Page Ref: 607
LO: 20.1 Describe the basic concept and scope of cluster analysis and its importance in
marketing research.
5
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32) ________ is a class of techniques used to classify objects or cases into relatively
homogeneous groups.
A) Principal components analysis
B) Cluster analysis
C) Common factor analysis
D) Conjoint analysis
Answer: B
Diff: 1 Page Ref: 607
LO: 20.1 Describe the basic concept and scope of cluster analysis and its importance in
marketing research.

33) Which method allows the researcher to obtain information on cluster membership of cases if
the number of clusters is specified?
A) dendrogram
B) scree plot
C) icicle plot
D) both A and C
Answer: D
Diff: 2 Page Ref: 614-616
AACSB: Analytical thinking
LO: 20.2 Discuss the statistics associated with cluster analysis.

34) Which method allows the researcher to obtain information on cluster membership of cases if
the number of clusters is specified?
A) factor loading plot
B) scattergram
C) icicle plot
D) scree plot
Answer: C
Diff: 3 Page Ref: 614-616
AACSB: Analytical thinking
LO: 20.2 Discuss the statistics associated with cluster analysis.

35) Which statement is not true about cluster analysis?


A) Cluster analysis is a technique for analyzing data when the criterion or dependent variable is
categorical and the independent variables are interval in nature.
B) Cluster analysis is also called classification analysis or numerical taxonomy.
C) Groups or clusters are suggested by the data, not defined a priori.
D) Objects in each cluster tend to be similar to each other and dissimilar to objects in the other
clusters.
Answer: A
Diff: 1 Page Ref: 608-609
AACSB: Reflective thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

6
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36) Cluster analysis has been used in marketing for all of the purposes below except ________.
A) segmenting the market based on benefits sought from the purchase of a product
B) identifying new product opportunities by clustering brands and products so that competitive
sets within the market can be determined
C) selecting test markets
D) determining how strongly sales are related to advertising expenditures
Answer: D
Diff: 2 Page Ref: 608-609
AACSB: Reflective thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

37) Most ________ methods are heuristics based on algorithms.


A) factor analysis
B) discriminant analysis
C) clustering
D) analysis of variance
Answer: C
Diff: 1 Page Ref: 608-609
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

38) The ________ are the initial starting points in nonhierarchical clustering.
A) factor scores
B) cluster centers
C) cluster centroids
D) factor loadings
Answer: B
Diff: 3 Page Ref: 609-610
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

7
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39) A(n) ________ or tree graph is a graphical device for displaying clustering results. Vertical
lines represent clusters that are joined together. The position of the line on the scale indicates the
distances at which clusters were joined.
A) dendrogram
B) scattergram
C) scree plot
D) icicle diagram
Answer: A
Diff: 2 Page Ref: 609-610
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

40) A ________ is a lower-triangle matrix containing pairwise distances between objects or


cases.
A) classification matrix
B) correlation matrix
C) similarity/distance coefficient matrix
D) factor matrix
Answer: C
Diff: 2 Page Ref: 609-610
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

41) The most important part of ________ is selecting the variables on which clustering is based.
A) interpreting and profiling clusters
B) selecting a clustering procedure
C) assessing the validity of clustering
D) formulating the clustering problem
Answer: D
Diff: 2 Page Ref: 610-611
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

42) Clustering should be done on samples of ________ or more.


A) 50
B) 100
C) 200
D) 300
Answer: B
Diff: 2 Page Ref: 610-611
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.
8
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43) The most commonly used measure of similarity is the ________ or its square.
A) euclidean distance
B) city-block distance
C) Chebychev's distance
D) Manhattan distance
Answer: A
Diff: 3 Page Ref: 610-611
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

44) Which statement is not true concerning the clustering solution if the variables are measured
in vastly different units?
A) The clustering solution will not be influenced by the units of measurement.
B) Standardization can reduce the differences between groups on variables that may best
discriminate groups or clusters.
C) It is desirable to eliminate outliers.
D) We must standardize the data by rescaling each variable to have a mean of zero and standard
deviation of unity.
Answer: A
Diff: 2 Page Ref: 611-612
AACSB: Reflective thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

45) ________ is a clustering procedure characterized by the development of a tree-like structure.


A) Non-hierarchical clustering
B) Hierarchical clustering
C) TwoStep clustering
D) Optimizing partitioning clustering
Answer: B
Diff: 1 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

9
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46) ________ is a clustering procedure where each object starts out in a separate cluster.
A) Non-hierarchical clustering
B) Hierarchical clustering
C) Divisive clustering
D) Agglomerative clustering
Answer: D
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

47) ________ is a clustering procedure where all objects start out in one giant cluster. Clusters
are formed by dividing this cluster into smaller and smaller clusters.
A) Non-hierarchical clustering
B) Hierarchical clustering
C) Divisive clustering
D) Agglomerative clustering
Answer: C
Diff: 1 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

48) ________ methods are commonly used in marketing research.


A) TwoStep clustering
B) Optimizing partitioning
C) Divisive clustering
D) Agglomerative clustering
Answer: D
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

10
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49) The ________ method is based on minimum distance or the nearest neighbor rule.
A) single linkage
B) medium linkage
C) complete linkage
D) average linkage
Answer: A
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

50) The ________ method is based on the maximum distance or the furthest neighbor approach.
A) single linkage
B) medium linkage
C) complete linkage
D) average linkage
Answer: C
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

51) Which of the methods below is not a hierarchical method?


A) optimizing partitioning
B) parallel threshold
C) both A and B
D) variance
Answer: C
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

11
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52) The ________ method uses information on all pairs of distances, not merely the minimum or
maximum distances.
A) single linkage
B) medium linkage
C) complete linkage
D) average linkage
Answer: D
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

53) ________ are agglomerative methods of hierarchical clustering in which clusters are
generated to minimize the within-cluster variance.

A) Variance methods
B) Linkage methods
C) Centroid methods
D) Parallel methods
Answer: A
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

54) Which of the following is a variance method of clustering?


A) sequential threshold
B) Ward's method
C) complete linkage
D) optimizing partitioning
Answer: B
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

12
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55) ________ is frequently referred to as k-means clustering.


A) Non-hierarchical clustering
B) Ward's method
C) Divisive clustering
D) Agglomerative clustering
Answer: A
Diff: 3 Page Ref: 612-614
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

56) ________ is a procedure that first assigns or determines a cluster center and then groups all
objects within a pre-specified threshold value from the center.
A) Non-hierarchical clustering
B) Ward's method
C) Divisive clustering
D) Agglomerative clustering
Answer: A
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

57) ________ is a variance method in which the squared euclidean distance to the cluster means
is minimized.
A) Optimizing partitioning method
B) Sequential threshold method
C) Parallel threshold method
D) Ward's procedure
Answer: D
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

13
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58) The ________ is a nonhierarchical method in which a cluster center is selected and all
objects within a pre-specified threshold value from the center are grouped together.
A) optimizing partitioning method
B) sequential threshold method
C) parallel threshold method
D) Ward's procedure
Answer: B
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

59) The ________ is a nonhierarchical method that specifies several cluster centers at once. All
objects within a pre-specified threshold value from the center are grouped together.
A) optimizing partitioning method
B) sequential threshold method
C) parallel threshold method
D) Ward's procedure
Answer: C
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

60) The ________ is a nonhierarchical method that allows for later reassignment of objects to
clusters to optimize an overall criterion.
A) optimizing partitioning method
B) sequential threshold method
C) parallel threshold method
D) Ward's procedure
Answer: A
Diff: 1 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

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61) Which of the following is not a disadvantage of nonhierarchical clustering procedures?


A) The number of clusters must be pre-specified.
B) The selection of cluster centers is arbitrary.
C) The procedures do not work well when the clusters are poorly defined.
D) All of the above are disadvantages.
Answer: C
Diff: 2 Page Ref: 612-614
AACSB: Reflective thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

62) Which cluster analysis procedure can automatically determine the optimal number of clusters
by comparing the values of a model-choice across different clustering solutions?
A) divisive
B) sequential threshold
C) Ward's method
D) TwoStep
Answer: D
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

63) In non-hierarchical clustering, plotting the ratio of total within-group variance to between-
group variance against the number of clusters is useful if you are ________.
A) interpreting and profiling the clusters
B) assessing the validity of clustering
C) deciding on the number of clusters
D) both B and C
Answer: C
Diff: 3 Page Ref: 616
AACSB: Analytical thinking
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

64) ________ involves examining the cluster centroids.


A) Interpreting and profiling the clusters
B) Assessing reliability and validity
C) Deciding on the number of clusters
D) Selecting a clustering procedure
Answer: A
Diff: 3 Page Ref: 618
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

15
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65) If you are performing cluster analysis on the same data using different distance measures and
then comparing the results across measures to determine stability of the solutions, you are at
which stage of the cluster analysis process?
A) interpreting and profiling the clusters
B) assessing reliability and validity
C) deciding on the number of clusters
D) selecting a clustering procedure
Answer: B
Diff: 2 Page Ref: 619
AACSB: Analytical thinking
LO: 20.4 Describe the purpose and methods for evaluating the quality of clustering results and
assessing reliability and validity.

66) Which of the following is not a procedure to check the quality of clustering results?
A) Perform cluster analysis on the same data using different distance measures. Compare the
results across measures to determine the stability of the solutions.
B) Delete variables randomly. Perform clustering based on the reduced set of variables. Compare
the results with those obtained by clustering based on the entire set of variables.
C) Use the same method of clustering and compare the results.
D) Split the data randomly into halves. Perform clustering separately on each half. Compare
cluster centroids across the two subsamples.
Answer: C
Diff: 3 Page Ref: 619
AACSB: Reflective thinking
LO: 20.4 Describe the purpose and methods for evaluating the quality of clustering results and
assessing reliability and validity.

67) To use cluster analysis for clustering variables to identify homogeneous groups, the
researcher could do all of the following except ________.
A) using the variables as the units of analysis
B) using the correlation coefficient as a measure of similarity between variables
C) inserting communalities in the diagonal of the correlation matrix
D) both A and B
Answer: C
Diff: 3 Page Ref: 624
AACSB: Reflective thinking
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

68) In SPSS, the main program for hierarchical clustering of objects or cases is ________.
A) VARCLUS
B) CLUSTER ANALYSIS
C) FASTCLUS
D) HIERARCHICAL CLUSTER
Answer: D
Diff: 2 Page Ref: 626-628
AACSB: Information technology
LO: 20.6 Explain the role of software in conducting cluster analysis using SPSS and SAS.
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69) In SAS, the ________ program can be used for the hierarchical clustering of objects or cases.
A) VARCLUS
B) CLUSTER ANALYSIS
C) FASTCLUS
D) HIERARCHICAL CLUSTER
Answer: B
Diff: 2 Page Ref: 626-628
AACSB: Information technology
LO: 20.6 Explain the role of software in conducting cluster analysis using SPSS and SAS.

70) What are the steps in conducting cluster analysis (Figure 20.3 in the text)?
Answer: The steps involved in conducting cluster analysis are listed in Figure 20.3 in the text.
The first step is to formulate the clustering problem by defining the variables on which the
clustering will be based. An appropriate distance measure must then be selected. The distance
measure determines how similar or dissimilar the objects being clustered are. Several clustering
procedures have been developed and the researcher should select one that is appropriate for the
problem at hand. Deciding on the number of clusters requires judgment on the part of the
researcher. The derived clusters should be interpreted in terms of the variables used to cluster
them and profiled in terms of additional salient variables. Finally, the researcher must assess the
validity of the clustering process.
Diff: 2 Page Ref: 610
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

71) Which is best to use when selecting a clustering procedure: hierarchical or nonhierarchical
clustering?
Answer: Although nonhierarchical clustering is faster than hierarchical methods and has merit
when the number of objects or observations is large, it has been suggested that the hierarchical
and nonhierarchical methods be used in tandem. First, an initial clustering solution is obtained
using a hierarchical procedure, such as average linkage or Ward's. The number of clusters and
cluster centroids so obtained are used as inputs to the optimizing partitioning method.
Diff: 3 Page Ref: 612-614
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

17
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72) What suggested guidelines researchers can use when deciding on the number of clusters?
Answer: Although there are no hard and fast rules, some guidelines are available:
∙ Theoretical, conceptual, or practical considerations may suggest a certain number of clusters.
For example, if the purpose of clustering is to identify market segments, management may want
a particular number of clusters.
∙ In hierarchical clustering, the distances at which clusters are combined can be used as criteria.
∙ In nonhierarchical clustering, the ratio of total within-group variance to between group
variance can be plotted against the number of clusters.
∙ The relative sizes of the clusters should be meaningful.
Diff: 3 Page Ref: 616
AACSB: Analytical thinking
LO: 20.3 Explain the procedure for conducting cluster analysis, including formulating the
problem, selecting a distance measure, selecting a clustering procedure, deciding on the number
of clusters, and interpreting and profiling clusters.

73) Why should the clustering of variables be used?


Answer: Cluster analysis is also used for clustering variables to identify homogeneous groups.
Hierarchical clustering of variables can aid in the identification of unique variables, or variables
that make a unique contribution to the data. Clustering can also be used to reduce the number of
variables. Associated with each cluster is a linear combination of the variables in the cluster,
called the cluster components. A large set of variables can often be replaced by the set of cluster
components with little loss of information. However, a given number of cluster components
does not generally explain as much variance as the same number of principal components. Why,
then, should the clustering of variables be used? Cluster components are usually easier to
interpret than the principal components even if the latter are rotated.
Diff: 3 Page Ref: 624
AACSB: Analytical thinking
LO: 20.5 Discuss the applications of nonhierarchical clustering and clustering of variables.

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34) When conducting conjoint analysis, the attributes selected should be salient in influencing
consumer preference and choice.
Answer: TRUE
Diff: 1 Page Ref: 645-646
LO: 21.6 Discuss the basic concepts of conjoint analysis, contrast it with MDS, and discuss its
various applications.

35) When constructing conjoint analysis stimuli, it is necessary to evaluate all possible
combinations of levels of the attributes.
Answer: FALSE
Diff: 2 Page Ref: 645-646
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

36) The pair-wise approach to conducting conjoint analysis stimuli is more commonly used than
the full-profile approach.
Answer: FALSE
Diff: 2 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

37) For nonmetric conjoint analysis input data, the respondents are typically required to provide
rank order evaluations.
Answer: TRUE
Diff: 3 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

38) With the full-profile approach to constructing conjoint analysis stimuli, respondents rank all
the stimulus profiles.
Answer: TRUE
Diff: 3 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

39) For metric conjoint analysis input data, the respondents provide ratings.
Answer: TRUE
Diff: 3 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

7
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45) Conjoint analysis assumes that the important attributes of a product can be identified.
Answer: TRUE
Diff: 1 Page Ref: 654-655
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

46) Conjoint analysis assumes that consumers evaluate the choice alternatives in terms of the
important attributes and make trade-offs.
Answer: TRUE
Diff: 1 Page Ref: 654-655
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

47) The text reports on a research project which used MDS to plot the perceived ethics of
marketing research firms using a broad-based moral equity dimension (factor 1) and a relativistic
dimension (factor 2). Based on the research, internal marketing research departments are
perceived to be the most ethical on both dimensions.
Answer: TRUE
Diff: 2 Page Ref: 657
LO: 21.1 Discuss the basic concept and scope of multidimensional scaling (MDS) in marketing
research and describe its various applications.

48) ________ is a class of procedures for representing perceptions and preferences of


respondents spatially by means of a visual display.
A) Conjoint analysis
B) Regression analysis
C) Hybrid conjoint analysis
D) Multidimensional scaling (MDS)
Answer: D
Diff: 2 Page Ref: 635
LO: 21.1 Discuss the basic concept and scope of multidimensional scaling (MDS) in marketing
research and describe its various applications.

49) The derivation and use of ________ lie at the heart of multidimensional scaling.
A) perceptual maps
B) pair-wise tables
C) part-worth functions
D) contrasts
Answer: A
Diff: 2 Page Ref: 635
LO: 21.1 Discuss the basic concept and scope of multidimensional scaling (MDS) in marketing
research and describe its various applications.

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50) MDS could be used for all of the marketing applications below except ________
A) Market segmentation: position brands and consumers in the same space and thus identify
groups of consumers with relatively homogeneous perceptions.
B) Assessing advertising effectiveness-spatial maps can be used to determine whether
advertising has been successful in achieving the desired brand positioning.
C) Consumer intention: how do consumer's intentions to buy the brand vary with different price
levels?
D) Channel decisions: judgments on compatibility of brands with different retail outlets could
lead to spatial maps useful for making channel decisions.
Answer: C
Diff: 2 Page Ref: 635
LO: 21.1 Discuss the basic concept and scope of multidimensional scaling (MDS) in marketing
research and describe its various applications.

51) ________ is a lack of fit measure; higher values indicate poorer fits.
A) Attribute levels
B) Stress
C) R-square
D) Relative importance weights
Answer: B
Diff: 2 Page Ref: 635
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

52) ________ is a squared correlation index that indicates the proportion of variance of the
optimally scaled data that can be accounted for by the MDS procedure. This is a goodness-of-fit
measure.
A) Attribute levels
B) Stress
C) R-square
D) Relative importance weights
Answer: C
Diff: 1 Page Ref: 635
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

10
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53) ________ requires that the researcher specify the purpose for which the MDS results would
be used and select the brands or other stimuli to be included in the analysis.
A) Formulating the problem
B) Obtaining input data
C) Selecting an MDS procedure
D) Deciding on the number of dimensions
Answer: A
Diff: 1 Page Ref: 636
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

54) In MDS, at minimum, ________ brands or stimuli should be included so as to obtain a well-
defined spatial map. Including more than ________ brands is likely to be cumbersome and may
result in respondent fatigue.
A) 6; 20
B) 6; 25
C) 8; 20
D) 8; 25
Answer: D
Diff: 2 Page Ref: 636
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

55) In ________ approaches to collecting perception data, the respondents are asked to use their
own criteria to judge how similar or dissimilar the various brands or stimuli are.
A) direct
B) preference
C) derived
D) Likert
Answer: A
Diff: 2 Page Ref: 636-638
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

11
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56) In which approach to collecting perception data are respondents often required to rate all
possible pairs of brands or stimuli in terms of similarity on a Likert scale?
A) direct
B) preference
C) derived
D) indirect
Answer: A
Diff: 2 Page Ref: 636-638
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

57) Which is a disadvantage of the direct approach to collecting perception data?


A) The criteria are influenced by the brands or stimuli being evaluated.
B) The researcher must identify all the salient attributes.
C) The spatial map obtained depends upon the attributes identified.
D) Both B and C are disadvantages.
Answer: A
Diff: 2 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

58) Which is a disadvantage of the derived approach to collecting perception data?


A) The criteria are influenced by the brands or stimuli being evaluated.
B) The researcher must identify all the salient attributes.
C) It may be difficult to determine before analysis if and how the individual respondents'
judgments should be combined.
D) It may be difficult to label the dimensions of the spatial map.
Answer: B
Diff: 2 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

12
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59) Which is an advantage of the direct approach to collecting perception data?


A) It is easier to label the dimensions.
B) It is easy to identify respondents with homogeneous perceptions.
C) The researcher does not have to identify a set of salient attributes.
D) The respondents can be clustered based on the attribute ratings.
Answer: C
Diff: 2 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

60) Which is an advantage of the derived approach to collecting perception data?


A) Respondents make similarity judgments using their own criteria, as they would under normal
circumstances.
B) It is easy to identify respondents with homogeneous perceptions.
C) The researcher does not have to identify a set of salient attributes.
D) Both A and C are advantages.
Answer: B
Diff: 2 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

61) ________ data order the brands or stimuli in terms of respondents' preferences for some
property.
A) Direct
B) Preference
C) Derived
D) Likert
Answer: B
Diff: 2 Page Ref: 636-638
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

13
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62) Which of the ways below is not a way in which preference data might be obtained?
A) asking respondents to rank brands from the most preferred to the least preferred
B) asking respondents to rate all possible pairs of brands in terms of similarity on a Likert scale
C) asking respondents to make paired comparisons and indicate which brand in a pair they prefer
D) asking respondents for preference ratings for the various brands
Answer: B
Diff: 3 Page Ref: 638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

63) Which of the following is not a factor influencing the MDS selection procedure?
A) whether some of the original values will be used in subsequent analysis
B) whether perception or preference data are being scaled, or whether the analysis requires both
kinds of data
C) the nature of the input data
D) whether the MDS analysis will be conducted at the individual respondent level or at an
aggregate level
Answer: A
Diff: 2 Page Ref: 638-639
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

64) Which guideline for deciding on the number of MDS dimensions relies on theory or past
research to suggest the number of dimensions?
A) a priori knowledge
B) interpretability of the spatial map
C) ease of use
D) elbow criterion
Answer: A
Diff: 2 Page Ref: 639-640
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

14
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65) Which guideline for deciding on the number of MDS dimensions warns that it is difficult to
interpret configurations or maps derived in more than three dimensions?
A) a priori knowledge
B) interpretability of the spatial map
C) ease of use
D) elbow criterion
Answer: B
Diff: 3 Page Ref: 639-640
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

66) Which guideline for deciding on the number of MDS dimensions suggests plotting stress
versus dimensionality?
A) a priori knowledge
B) interpretability of the spatial map
C) ease of use
D) elbow criterion
Answer: D
Diff: 2 Page Ref: 639-640
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

67) Which guideline for deciding on the number of MDS dimensions suggests it is easier to work
with two-dimensional maps or configurations than with those involving more dimensions?
A) a priori knowledge
B) interpretability of the spatial map
C) ease of use
D) elbow criterion
Answer: C
Diff: 3 Page Ref: 639-640
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

15
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68) Various ways to label dimensions obtained in MDS were mentioned in the text. Which of
the ways below was not mentioned in your text?
A) Axes may be labeled for the attributes with which they are most closely aligned.
B) label based on the criteria respondents used in making their evaluations
C) Respondents can be shown their maps and asked to label the dimensions by inspecting the
configurations.
D) none of the above
Answer: D
Diff: 2 Page Ref: 640-641
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

69) Which of the following is a way to interpret the configuration or spatial map?
A) examine dimension centroids
B) profile dimensions in terms of variables that were not used in the MDS procedure
C) examine variables that load high on a factor
D) examine the coordinates and relative positions of the brands
Answer: D
Diff: 3 Page Ref: 640-641
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

70) Values of .60 or better are considered acceptable values of ________, the index of fit.
A) attribute levels
B) stress
C) R-square
D) relative importance weights
Answer: C
Diff: 3 Page Ref: 641
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

16
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71) Which of the Kruskal's stress formula 1 values below represent a perfect fit of the MDS
model?
A) 1.00
B) 0.90
C) 0.10
D) 0
Answer: D
Diff: 3 Page Ref: 641
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

72) Which of the following is not a way to assess reliability and validity of the MDS solution?
A) Collect input data at two different points in time and then determine test-retest reliability.
B) Selectively eliminate stimuli from the input data and then determine the solution from the
remaining stimuli.
C) Add a random error term to the input data, subject the resulting data to MDS analysis, and
compare the solutions.
D) All of the above are ways to assess reliability and validity.
Answer: D
Diff: 3 Page Ref: 641
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

73) In MDS, when a spatial map is obtained, it is assumed that interpoint distances are ________
scaled and that the axes of the map are multidimensional ________ scaled.
A) interval; interval
B) ratio; interval
C) ordinal; interval
D) interval; ratio
Answer: B
Diff: 3 Page Ref: 641
AACSB: Analytical thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

17
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74) ________ is a method of configuring a spatial map such that the spatial map represents both
brands or stimuli and respondent points or vectors and is derived solely from the preference data.
A) Metric analysis of preferences
B) Correspondence analysis
C) Internal analysis of preferences
D) External analysis of preferences
Answer: C
Diff: 3 Page Ref: 642-643
AACSB: Analytical thinking
LO: 21.3 Explain the multidimensional scaling of preference data and distinguish between
internal and external analysis of preferences.

75) ________ is a method of configuring a spatial map, such that the ideal points or vectors
based on preference data are fitted in a spatial map derived from perception data.
A) Metric analysis of preferences
B) Correspondence analysis
C) Internal analysis of preferences
D) External analysis of preferences
Answer: D
Diff: 3 Page Ref: 642-643
AACSB: Analytical thinking
LO: 21.3 Explain the multidimensional scaling of preference data and distinguish between
internal and external analysis of preferences.

76) ________ is an MDS technique for scaling qualitative data that scales the rows and columns
of the input contingency table in corresponding units so that each can be displayed in the same
low-dimensional space.
A) Metric analysis of preferences
B) Correspondence analysis
C) Internal analysis of preferences
D) External analysis of preferences
Answer: B
Diff: 3 Page Ref: 644
AACSB: Analytical thinking
LO: 21.4 Explain correspondence analysis and discuss its advantages and disadvantages.

77) Which statement is true about correspondence analysis?


A) The interpretation of results is similar to that in chi-square analysis.
B) An advantage over other MDS techniques is that it reduces the data collection demands put on
the respondents because only interval or ratio data are obtained.
C) A disadvantage is that between-set distances cannot be meaningfully interpreted.
D) All of the statements are true.
Answer: C
Diff: 3 Page Ref: 644
AACSB: Analytical thinking
LO: 21.4 Explain correspondence analysis and discuss its advantages and disadvantages.

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78) Which statement is true about using factor analysis to create spatial maps?
A) By factor analyzing the data obtained using attribute-based approaches, one could derive, for
each respondent, n factor scores for each factor, one for each brand.
B) The dimensions would be labeled by examining the eigenvalues.
C) Discriminant weights can be used to label the dimensions.
D) Both A and B are correct.
Answer: A
Diff: 2 Page Ref: 645
AACSB: Analytical thinking
LO: 21.5 Understand the relationship among MDS, discriminant analysis, and factor analysis.

79) Which statement is true about using discriminant analysis to create spatial maps?
A) Spatial maps are obtained by plotting brand scores on the factors.
B) Input data should be obtained via attribute-based approaches to obtaining perception data.
C) Factor weights can be used to label the dimensions.
D) Both A and C are true.
Answer: B
Diff: 2 Page Ref: 645
AACSB: Analytical thinking
LO: 21.5 Understand the relationship among MDS, discriminant analysis, and factor analysis.

80) ________ is a technique that attempts to determine the relative importance consumers attach
to salient attributes and the utilities they attach to the levels of attributes.
A) Internal analysis of preferences
B) External analysis of preferences
C) Conjoint analysis
D) Correspondence analysis
Answer: C
Diff: 3 Page Ref: 645
LO: 21.6 Discuss the basic concepts of conjoint analysis, contrast it with MDS, and discuss its
various applications.

81) Which of the following statements is not true concerning conjoint analysis?
A) The underlying assumption is that any set of stimuli, such as products, brands, or stores, is
evaluated as a bundle of attributes.
B) Unlike multidimensional scaling, conjoint analysis relies on respondent's objective
evaluations.
C) Conjoint analysis seeks to develop the part-worth or utility functions describing the utility
consumers attach to the levels of each attribute.
D) Conjoint analysis attempts to determine the relative importance consumers attach to salient
attributes and the utilities they attach to the levels of attributes.
Answer: B
Diff: 2 Page Ref: 645-646
AACSB: Reflective thinking
LO: 21.6 Discuss the basic concepts of conjoint analysis, contrast it with MDS, and discuss its
various applications.

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82) Conjoint analysis could be used for all of the marketing applications below except ________.
A) determining the relative importance of attributes in the consumer choice process
B) estimating market share of brands that differ in attribute levels
C) used as a general data reduction tool
D) determining the composition of the most preferred brand
Answer: C
Diff: 3 Page Ref: 645-646
AACSB: Reflective thinking
LO: 21.6 Discuss the basic concepts of conjoint analysis, contrast it with MDS, and discuss its
various applications.

83) In conjoint analysis, ________ are utility functions that describe the utility consumers attach
to the levels of each attribute.
A) relative importance weights
B) orthogonal arrays
C) part-worth functions
D) attribute levels
Answer: C
Diff: 1 Page Ref: 645-646
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

84) In conjoint analysis, ________ indicate which attributes are important in influencing
consumer choice.
A) relative importance weights
B) orthogonal arrays
C) part-worth functions
D) attribute levels
Answer: A
Diff: 2 Page Ref: 645-646
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

85) In conjoint analysis, ________ are the values assumed by the attributes.
A) relative importance weights
B) orthogonal arrays
C) part-worth functions
D) attribute levels
Answer: D
Diff: 2 Page Ref: 645-646
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

20
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86) In conjoint analysis, ________ are a special class of fractional designs that enable the
efficient estimation of all main effects.
A) relative importance weights
B) orthogonal arrays
C) part-worth functions
D) attribute levels
Answer: B
Diff: 2 Page Ref: 645-646
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

87) When conducting conjoint analysis in ________, the researcher must identify the attributes
and attribute levels to be used in constructing stimuli.
A) formulating the problem
B) constructing the stimuli
C) deciding on the form of input data
D) selecting a conjoint analysis procedure
Answer: A
Diff: 2 Page Ref: 645-646
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

88) Which statement is not true about formulating the conjoint analysis problem?
A) Attributes selected should be salient in influencing consumer preference and choice.
B) Once the salient attributes have been identified, their appropriate level should be selected.
C) The set of variables selected should describe the similarity between objects in terms that are
relevant to the marketing research problem.
D) The researcher should take into account the attribute levels prevalent in the marketplace and
the objectives of the study.
Answer: C
Diff: 2 Page Ref: 646-647
AACSB: Reflective thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

21
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89) In (the) ________ for constructing conjoint analysis stimuli, respondents evaluate two
attributes at a time until all the possible pairs of attributes have been evaluated.
A) full-profile approach
B) pair-wise approach
C) two-factor evaluations
D) both B and C
Answer: D
Diff: 2 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

90) When constructing conjoint analysis, full or complete profiles of brands are constructed for
all the attributes in (the) ________.
A) full-profile approach
B) pair-wise approach
C) two-factor evaluations
D) both B and C
Answer: A
Diff: 2 Page Ref: 647-648
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

91) Which statement is true about the full-profile approach to constructing conjoint analysis
stimuli?
A) It is possible to reduce the number of paired comparisons by using cyclical designs.
B) The number of stimulus profiles can be greatly reduced by means of fractional factorial
designs.
C) The advantage of pair-wise is that it is easier for the respondents to provide judgments on the
paired comparisons.
D) The disadvantage of pair-wise is that it requires more evaluations than the full-profile
approach.
Answer: B
Diff: 3 Page Ref: 647-648
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

22
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92) If you are determining if you should have respondents rank or rate nonmetric or metric data,
you are at which step of conducting conjoint analysis?
A) Construct the stimuli.
B) Decide on the form of input data.
C) Select a conjoint analysis procedure.
D) Assess reliability and validity.
Answer: B
Diff: 2 Page Ref: 649
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

93) The basic conjoint analysis model expressing the fundamental relationship between attributes
and utility in conjoint analysis is shown below:
U(X) =

What does αij represent?


A) 1 if the jth level of the ith attribute is present, or 0 otherwise.
B) the part-worth contribution or utility associated with jth level (j, j=1, 2, ...ki) of the ith
attribute (i, i=1, 2,...m)
C) number of attributes
D) number of levels of attribute i
Answer: B
Diff: 2 Page Ref: 649
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

23
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94) The basic conjoint analysis model expressing the fundamental relationship between attributes
and utility in conjoint analysis is shown below:
U(X) =

What does Xij represent?


A) 1 if the jth level of the ith attribute is present, or 0 otherwise
B) the part-worth contribution or utility associated with jth level (j, j=1, 2, ...ki) of the ith
attribute (i, i=1, 2, ...m)
C) number of attributes
D) number of levels of attribute i
Answer: A
Diff: 2 Page Ref: 649
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

95) The basic conjoint analysis model expressing the fundamental relationship between attributes
and utility in conjoint analysis is shown below:
U(X) =

What does ki represent?


A) 1 if the jth level of the ith attribute is present, or 0 otherwise
B) the part-worth contribution or utility associated with jth level (j, j=1, 2, ...ki) of the ith
attribute (i, i=1, 2, ...m)
C) number of attributes
D) number of levels of attribute i
Answer: D
Diff: 2 Page Ref: 649
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

24
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96) The basic conjoint analysis model expressing the fundamental relationship between attributes
and utility in conjoint analysis is shown below:
U(X) =

What does m represent?


A) 1 if the jth level of the ith attribute is present, or 0 otherwise
B) the part-worth contribution or utility associated with jth level (j, j=1, 2, ...ki) of the ith
attribute (i, i=1, 2, ...m)
C) number of attributes
D) number of levels of attribute i
Answer: C
Diff: 2 Page Ref: 649
AACSB: Analytical thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

97) Decisions related to selecting the conjoint analysis procedure include all of the following
except ________.
A) whether perception or preference data are being scaled
B) whether to average the data at the individual-respondent level or the aggregate level
C) which grouping procedure to use
D) which model for estimating parameters should be specified
Answer: A
Diff: 3 Page Ref: 650
AACSB: Reflective thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

98) Which of the following is not one of the procedures for assessing the reliability and validity
of conjoint analysis results?
A) The goodness of fit of the estimated model (R2) should be evaluated.
B) Stress values or badness of fit measures should be evaluated. Stress values vary with the type
of conjoint analysis procedure and the data being analyzed.
C) Test-retest reliability can be assessed by obtaining a few replicated judgments and correlating
them.
D) Internal validity can be determined by correlating predicted evaluations with those obtained
from the respondents.
Answer: B
Diff: 3 Page Ref: 652-653
AACSB: Reflective thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

25
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99) ________ is a form of conjoint analysis that can simplify the data collection task and
estimate selected interactions as well as all main effects.
A) Conjoint analysis
B) Correspondence analysis
C) Hybrid conjoint analysis
D) Multidimensional scaling (MDS)
Answer: C
Diff: 1 Page Ref: 655
LO: 21.8 Define the concept of hybrid conjoint analysis and explain how it simplifies the data
collection task.

100) ________ is a computer program developed for conducting MDS.


A) MONANOVA
B) PREFMAP
C) LINMAP
D) SIMGRAF
Answer: B
Diff: 3 Page Ref: 658
AACSB: Information technology
LO: 21.9 Explain the role of software in conducting multidimensional scaling and conjoint
analysis using SPSS and SAS.

101) ________ is a computer program developed for conducting conjoint analysis.


A) MONANOVA
B) PREFMAP
C) APM
D) Both B and C
Answer: A
Diff: 2 Page Ref: 658
AACSB: Information technology
LO: 21.9 Explain the role of software in conducting multidimensional scaling and conjoint
analysis using SPSS and SAS.

102) What are the steps involved in conducting multidimensional scaling?


Answer:
∙ formulate the problem
∙ obtain input data
∙ select an MDS procedure
∙ decide on the number of dimensions
∙ label the dimensions and interpret the configuration
∙ assess reliability and validity
Diff: 2 Page Ref: 636
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

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103) What are the advantages and disadvantages of the direct and derived approaches to
obtaining perception data for multidimensional scaling?
Answer: Direct approaches have the advantage that the researcher does not have to identify a set
of salient attributes. Respondents make similarity judgments using their own criteria, as they
would under normal circumstances. The disadvantages are that the criteria are influenced by the
brands or stimuli being evaluated. If the various brands of automobiles being evaluated are in the
same price range, then price will not emerge as an important factor. It may be difficult to
determine before analysis if and how the individual respondents' judgments should be combined.
Furthermore, it may be difficult to label the dimensions of the spatial map. The advantage of the
attribute-based approach is that it is easy to identify respondents with homogeneous perceptions.
The respondents can be clustered based on the attribute ratings. It is also easier to label the
dimensions. A disadvantage is that the researcher must identify all the salient attributes, a
difficult task. The spatial map obtained depends upon the attributes identified.
Diff: 3 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

104) Which approach is best to use to obtain perception data, the direct approach or the derived
approach?
Answer: The direct approaches are more frequently used than the attribute-based approaches.
However, it may be best to use both these approaches in a complementary way. Direct similarity
judgments may be used for obtaining the spatial map, and attribute ratings may be used as an aid
to interpreting the dimensions of the perceptual map.
Diff: 3 Page Ref: 636-638
AACSB: Reflective thinking
LO: 21.2 Describe the steps involved in multidimensional scaling of perception data, including
formulating the problem, obtaining input data, selecting an MDS procedure, deciding on the
number of dimensions, labeling the dimensions and interpreting the configuration, and assessing
reliability and validity.

105) What are the disadvantages of internal analysis of preferences?


Answer: In internal analysis, the differences in perceptions are confounded with differences in
preferences. It is possible that the nature and relative importance of dimensions may vary
between the perceptual space and the preference space. Two brands may be perceived to be
similar (located close to each other in the perceptual space) yet, one brand may be distinctly
preferred over the other (i.e., the brands may be located apart in the preference space). These
situations cannot be accounted for in internal analysis. In addition, internal analysis procedures
are beset with computational difficulties.
Diff: 2 Page Ref: 642-643
AACSB: Reflective thinking
LO: 21.3 Explain the multidimensional scaling of preference data and distinguish between
internal and external analysis of preferences.

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106) Contrast conjoint analysis with MDS.


Answer: Like multidimensional scaling, conjoint analysis relies on respondents' subjective
evaluations. However, in MDS, the stimuli are products or brands. In conjoint analysis, the
stimuli are combinations of attribute levels determined by the researcher. The goal in MDS is to
develop a spatial map depicting the stimuli in a multidimensional perceptual or preference space.
Conjoint analysis, on the other hand, seeks to develop the part-worth or utility functions
describing the utility consumers attach to the levels of each attribute. The two techniques are
complementary.
Diff: 2 Page Ref: 645
AACSB: Reflective thinking
LO: 21.6 Discuss the basic concepts of conjoint analysis, contrast it with MDS, and discuss its
various applications.

107) List the steps in conjoint analysis.


Answer: Formulate the problem.
Construct the stimuli.
Decide on the form of input data.
Select a conjoint analysis procedure.
Interpret the results.
Assess reliability and validity.
Diff: 1 Page Ref: 646
AACSB: Reflective thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

108) What are the limitations of conjoint analysis?


Answer: In situations where image or brand name is important, consumers may not evaluate the
brands or alternatives in terms of attributes. Even if consumers consider product attributes, the
trade-off model may not be a good representation of the choice process. Another limitation is
that data collection may be complex, particularly if a large number of attributes are involved and
the model must be estimated at the individual level.
Diff: 2 Page Ref: 654-655
AACSB: Reflective thinking
LO: 21.7 Describe the procedure for conducting conjoint analysis, including formulating the
problem, constructing the stimuli, deciding the form of input data, selecting a conjoint analysis
procedure, interpreting the results, and assessing reliability and validity.

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109) Define and describe hybrid conjoint analysis.


Answer: Hybrid conjoint analysis is an attempt to simplify the burdensome data-collection task
required in traditional conjoint analysis. Each respondent evaluates a large number of profiles,
yet usually only simple part-worths, without any interaction effects, are estimated. In the simple
part-worths or main effects model, the value of a combination is simply the sum of the separate
main effects (simple part-worths). In actual practice, two attributes may interact, in the sense
that the respondent may value the combination more than the average contribution of the
separate parts.
In the hybrid approach, the respondents evaluate a limited number generally no more than nine,
of conjoint stimuli, such as full profiles. These profiles are drawn from a large master design,
and different respondents evaluate different sets of profiles, so that over a group of respondents,
all the profiles of interest are evaluated. In addition, respondents directly evaluate the relative
importance of each attribute and desirability of the levels of each attribute. By combining the
direct evaluations with those derived from the evaluations of the conjoint stimuli, it is possible to
estimate a model at the aggregate level and still retain some individual differences.
Diff: 3 Page Ref: 655
LO: 21.8 Define the concept of hybrid conjoint analysis and explain how it simplifies the data
collection task.

110) What are the two main purposes for which hybrid conjoint analysis models were
developed?
Answer: Hybrid models have been developed to serve two main purposes: (1) simplify the data-
collection task by imposing less of a burden on each respondent, and (2) permit the estimation of
selected interactions (at the subgroup level) as well as all main (or simple) effects at the
individual level.
Diff: 2 Page Ref: 655
AACSB: Reflective thinking
LO: 21.8 Define the concept of hybrid conjoint analysis and explain how it simplifies the data
collection task.

111) How does hybrid conjoint analysis simplify the data collection task?
Answer: In the hybrid approach, the respondents evaluate a limited number, generally no more
than nine, conjoint stimuli, such as full profiles. These profiles are drawn from a large master
design, and different respondents evaluate different sets of profiles, so that over a group of
respondents, all the profiles of interest are evaluated. In addition, respondents directly evaluate
the relative importance of each attribute and desirability of the levels of each attribute.
Combining the direct evaluations with those derived from the evaluations of the conjoint stimuli,
it is possible to estimate a model at the aggregate level and still retain some individual
differences.
Diff: 3 Page Ref: 655
AACSB: Reflective thinking
LO: 21.8 Define the concept of hybrid conjoint analysis and explain how it simplifies the data
collection task.

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