Marketing: An Introduction, 15e (Armstrong)

Chapter 4 Managing Marketing Information to Gain Customer Insights

1) Which of the following demonstrates the real value of a company's marketing research and
information system?
A) the amount of data it generates
B) the variety of contact methods it uses
C) the tools it uses to gather information
D) the customer insights it provides
E) the type of sampling plan it follows
Answer: D
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

2) The initial function of a marketing information system is ________.

A) generating insights from market consumption patterns
B) analyzing the results of marketing research studies
C) evaluating information from internal and external sources
D) assessing the information needs of a company
E) hiring research firms to conduct market research
Answer: D
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

3) Which of the following is true of a good marketing information system?

A) It focuses solely on maximizing the amount of data generated irrespective of relevance.
B) It typically uses only external sources of data in marketing research.
C) It helps decision makers use the information to generate customer and market insights.
D) It develops a way of offering information about future plans of action that might not be very
feasible or cost-effective.
E) It eliminates the time-consuming task of assessing the information needs of a firm.
Answer: C
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

1
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4) New information-based knowledge of customers and the marketplace that helps create
customer value, engagement and build relationships is called ________.
A) big data
B) customer insights
C) a marketing information system
D) planning information
E) creative data collection
Answer: B
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

5) Some firms have created ________ to help them develop actionable items from marketing
information.
A) big data groups
B) information teams
C) executive teams
D) customer insights teams
E) consumer groups
Answer: D
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

6) The final step of a marketing information system includes ________.

A) collecting data
B) developing marketing intelligence
C) making marketing decisions
D) assessing information needs
E) developing information
Answer: C
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

7) Big data refers to the huge data sets generated by sophisticated information generation,
collection, storage, and analysis technologies.
Answer: TRUE
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

2
Copyright © 2023 Pearson Education, Inc.
8) An effective MIS assesses information needs, develops needed information, and distributes
the information to help managers with decision making.
Answer: TRUE
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Analytical thinking

9) Marketers don't need more information to help managers with decision making, they need
better information.
Answer: TRUE
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Analytical thinking

10) Big data is usually easy to analyze but difficult to collect.

Answer: FALSE
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Analytical thinking

11) A marketing information system consists solely of the technology and computing systems
used to capture and utilize information.
Answer: FALSE
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Analytical thinking

12) Describe the components of a marketing information system (MIS), and list its three main
functions.
Answer: A typical MIS consists of people and procedures for assessing information needs,
developing the needed information, and helping decision makers use the information to generate
and validate actionable customer and market insights. A well-designed information system
begins and ends with users. There are three main components.

First, it interacts with information users to assess information needs. Next, it develops needed
information from internal company databases, marketing intelligence activities, and marketing
research. Finally, it helps users to analyze and use the information to develop customer insights,
make marketing decisions, and manage customer relationships.
Diff: 2
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Analytical thinking

3
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13) Explain what is meant by "big data."
Answer: Big data refers to the huge and complex data sets generated by today's sophisticated
information generation, collection, storage, and analysis technologies. In 2021, the people and
systems of the world created, captured, copied, and consumed an estimated 74 zettabytes of data.
(A zettabyte contains a trillion gigabytes.) The size of the global datasphere grew tenfold over
the past 10 years and will double in size over the next three years. The challenge for marketers is
to find ways to tap this data to gain useful marketing insights that will help harvest customer
value.
Diff: 1
LO: 4-1: Explain the importance of information in gaining insights about the marketplace and
customers.
AACSB: Application of knowledge

14) Susan Hart, the manager of a children's boutique, collects data from her monthly records of
sales, costs, and cash flow. In this case, Susan is making use of ________ databases.
A) external
B) secondary
C) historical
D) internal
E) dialog
Answer: D
Diff: 3
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

15) Which of the following sources constitutes the internal database of a company?
A) commercial online databases
B) supplier information
C) the company's sales transactions
D) reports sold by market research firms
E) big data
Answer: C
Diff: 1
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

4
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16) Chantrell is using some internal data from the firm's information system that was collected
about 10 years ago. She would like to gain some insight into online buying patterns. What do
you see is her biggest challenge with regard to using and evaluating this data?
A) Big data is difficult to manage.
B) Extracting the data
C) Data age quickly.
D) Computing technology has changed a lot.
E) Understanding the data
Answer: C
Diff: 3
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

17) Although internal databases can be accessed more quickly and cheaply than other
information sources, one of the challenges of internal databases is ________.
A) the inability to access
B) maintaining the current database
C) the lack of sophisticated equipment and technologies
D) decision making about data collection software
E) putting the customer at the center of all decisions
Answer: B
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

18) Hammond Corp. operates in the highly aggressive electronics market. The firm aims to
obtain early warnings of opportunities and threats caused by the actions of other firms that are
doing well in the industry. Which of the following sources would best serve Hammond's
purpose?
A) sales data from exclusive Hammond retailers
B) archival data on company performance
C) competitive marketing intelligence
D) research on demographics of its existing customers
E) internal survey on employee performance
Answer: C
Diff: 3
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

5
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19) Which of the following statements regarding marketing intelligence is true?
A) Marketing intelligence typically involves sensitive and confidential information kept out of
the public domain.
B) The advantage of using competitive intelligence is negligible as it is based only on internal
sources of data.
C) All marketing intelligence inputs are available at no cost to any potential users.
D) Marketing intelligence is the systematic collection, monitoring, and analysis of publicly
available information.
E) Marketing intelligence efforts are more focused on gaining insights into a firm's consumers
rather than its competitors.
Answer: D
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

20) Which of the following is not considered a source of competitive marketing intelligence?
A) observing consumers firsthand
B) monitoring social media
C) competitors' internal databases
D) benchmarking competitors' products
E) online research
Answer: C
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

21) Which of the following is true of competitive marketing intelligence?

A) It can predict a firm's future but not the pattern of forces in the market.
B) It cannot be collected from internal sources of a firm such as employees and the sales force.
C) It requires inside information from a competitors' internal database.
D) It can be obtained from information that is available in the public domain.
E) It can be obtained from online databases only through subscription and a fee.
Answer: D
Diff: 1
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

6
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22) Companies should try to conduct marketing intelligence investigations of themselves so they
can ________.
A) find potentially damaging information leaks and protect their own information
B) hone their skills to conduct marketing intelligence investigations of their competitors
C) learn the capabilities of their internal systems
D) use the technique and determine whether it has any value
E) adjust their metrics in order to get better information
Answer: A
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

23) One method used to gather consumer opinions about your products online is to ________.
A) observe consumers firsthand using webcams
B) monitor social media
C) send out secret shoppers
D) talk to your competitors
E) question shoppers as they leave the store
Answer: B
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

24) Internal databases are a very costly source of information to the firm.
Answer: FALSE
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

25) The U.S. Securities and Exchange Commission's database is a good source of financial
information for your publicly-traded competitors.
Answer: TRUE
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

26) Companies have set up social media command centers that monitor real-time brand-related
online mobile media activity.
Answer: TRUE
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

7
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27) The U.S. Patent Office and Trademark database cannot be accessed to reveal patents that
competitors have filed.
Answer: FALSE
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

28) The information collected for an internal database comes only from the marketing
department and the customer service department.
Answer: FALSE
Diff: 1
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

29) Secondary data consist of information collected for the specific purpose at hand.
Answer: FALSE
Diff: 1
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Application of knowledge

30) Marketers can obtain needed information from internal data, marketing intelligence, and
marketing research. Describe some common sources of each.
Answer: Internal databases are built upon records of consumer and market information data
sources within the company network. For example, the accounting department provides records
of sales, costs, and cash flows; operations reports on production-related issues; the sales force
provides data on resellers, competitors, buyer behavior, and the industry; and marketing
department provides information on customer transactions, demographics, and buying behavior.
Internal data are cheaper sources that are easy to access. Marketing intelligence is a collection
and analysis of publicly available data about consumers, competitors, and developments in the
industry. It can come from quizzing employees, studying competitors' ads and annual reports,
analyzing competitors' products, monitoring Internet buzz, and researching the Internet. In
addition to internal data and marketing intelligence, marketers often need formal studies of
specific situations. To address this need, they conduct marketing research to collect, analyze, and
report secondary and primary data to better form decisions.
Diff: 2
LO: 4-2: Define the marketing information system and discuss its parts.
AACSB: Analytical thinking

8
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Use the information below to answer the following questions.

Germane Company conducted a survey to determine customer attitudes about their primary
product. They collected the following data about how a random group of 7 consumers perceive
their product. Consumers were asked to rate the product on a scale of 1 to 7 with 7 being the best
rating.

Consumer # Perception of product (1-7 score)

1 5
2 7
3 3
4 7
5 6
6 4
7 2

31) What is the mean consumer rating of Germane Company's product?

A) 5.0
B) 4.9
C) 6.1
D) 7.0
E) 3.5
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

32) What is the median consumer rating of Germane Company's product?

A) 5.0
B) 4.9
C) 6.1
D) 7.0
E) 3.5
Answer: A
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

9
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33) What is the mode consumer rating of Germane Company's product?
A) 5.0
B) 4.9
C) 6.1
D) 7.0
E) 3.5
Answer: D
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

34) Germane Company might find this data set does not provide useful results since it is
________.
A) gleaned from survey data
B) probably too small a sample
C) likely biased by the survey method
D) quantitative and not qualitative data
E) uses a scoring method with too many options
Answer: B
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

35) Asking smart questions is an example of ________.

A) well-directed analysis
B) open-minded research
C) exploratory research
D) integrated marketing
E) causal research
Answer: A
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

36) If a marketing researcher is willing to accept new possibilities when the results suggest
something unexpected it is an example of ________.
A) well-directed analysis
B) open-minded analysis
C) exploratory research
D) integrated marketing
E) causal research
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

10
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37) ________ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
A) Test marketing
B) Marketing research
C) Commercialization
D) Integrated marketing
E) Exclusive distribution
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

38) ________ is often the most difficult but most critical step in the research process.
A) Developing the research plan
B) Collecting and analyzing the data
C) Defining the problem and research objectives
D) Interpreting the findings
E) Gathering secondary data
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

39) The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two
months. The manager decides to conduct marketing research to identify potential causes for the
drop in sales. Which of the following should the manager do first?
A) develop a research plan
B) determine a research approach
C) define the problem and objectives
D) select a research agency to collect data
E) conduct exploratory and descriptive research
Answer: C
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

40) ________ is the final step in the marketing research process.

A) Developing the research plan
B) Determining a research approach
C) Interpreting and reporting the findings
D) Engaging in secondary research
E) Collecting and analyzing the data
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

11
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41) The objective of ________ research is to gather preliminary information that will help define
the problem and suggest hypotheses.
A) descriptive
B) exploratory
C) causal
D) corrective
E) experimental
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

42) Causal research is used to ________.

A) test hypotheses about cause-and-effect relationships
B) gather preliminary data to define problems and their underlying causes
C) collect information on the demographics of customers
D) collect information on the attitudes of consumers
E) generate hypotheses about the causes of a marketing problem
Answer: A
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

43) Vernon Inc. would like to set the best price for a new product. The firm conducts an
experimental study by selling the new product at two different prices in two different locations
keeping other factors constant to see if a lower price results in better sales. This is most likely an
example of ________ research.
A) exploratory
B) descriptive
C) causal
D) focus group
E) ethnographic
Answer: C
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

12
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44) Coolers Inc. has decided to launch a new energy drink that will have the fewest calories
among its competitors. To understand the market potential for the new drink and the
demographics and attitudes of consumers who are likely to buy the product, Coolers should most
likely use ________.
A) exploratory research
B) archival research
C) causal research
D) experimental research
E) descriptive research
Answer: E
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

45) In most marketing research projects, what type of research is conducted first?
A) causal
B) descriptive
C) remedial
D) corrective
E) exploratory
Answer: E
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

46) Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first
conducts a survey to understand its target audience and identify the demographics of potential
buyers. It then conducts experimental research to test whether customers associate discounted
prices with lower product quality. Which types of research has the boutique employed in this
case?
A) exploratory followed by causal
B) exploratory followed by descriptive
C) descriptive followed by exploratory
D) descriptive followed by causal
E) causal followed by descriptive
Answer: D
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

13
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47) ________ outline(s) sources of existing data as well as specific research approaches,
sampling plans, and measurement instruments.
A) The research plan
B) The data collection plan
C) The main research objective
D) The problem definition
E) The research findings
Answer: A
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

48) ________ data consist of information collected for the specific purpose at hand.
A) Primary
B) Secondary
C) Derived
D) Archival
E) Historical
Answer: A
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

49) Which of the following is an advantage of primary data?

A) They are less expensive to obtain than secondary data.
B) They can be obtained more quickly than secondary data.
C) They can be accessed from existing information.
D) They are more relevant than secondary data.
E) They are more reflective of past problems.
Answer: D
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

50) Information collected from commercial online databases or through Internet search engines
are examples of ________ data.
A) primary
B) secondary
C) first-hand
D) experimental
E) ethnographic
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

14
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51) Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She
evaluates several potential sites by assessing traffic patterns, neighborhood conditions, and the
locations of competitors. Annie is engaging in ________.
A) observational research
B) focus groups
C) personal interviews
D) Internet-based surveys
E) experimental research
Answer: A
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

52) Which of the following is a quantitative approach to research?

A) observational research
B) online focus groups
C) ethnographic research
D) in-depth interviews
E) marketing surveys
Answer: E
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

53) Ethnographic research is ________.

A) a standard analysis of publicly available information
B) conducted in settings where people live and work
C) an approach that provides only secondary data
D) most feasible when customers live in distant locations
E) used by marketers seeking quantitative data
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

54) A company that sells personal care products sends a trained observer to watch potential
buyers in their natural environments. This is an example of ________ research.
A) quantitative
B) online
C) ethnographic
D) experimental
E) archival
Answer: C
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

15
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55) Which of the following is a disadvantage of secondary data?
A) It is collected for another purpose.
B) It rarely contains all the data needed.
C) It can be obtained at a lower cost than primary data.
D) It is only available through Internet search engines.
E) It must be purchased from commercial online databases.
Answer: B
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

56) ________ is a method of gathering primary data that involves asking people questions about
their knowledge, attitudes, preferences, and buying behavior.
A) Observational research
B) Archival research
C) Survey research
D) Experimental research
E) Causal research
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

57) Which of the following is true of survey research?

A) It is the most widely used method for gathering primary data.
B) It is the most suitable method for establishing causal relationships.
C) It is the best method to use when people are unwilling to answer questions.
D) It is not suitable for collecting data for descriptive research.
E) It is inflexible and cannot be used in many different situations.
Answer: A
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

58) A major advantage of a mail survey is that it ________.

A) provides significant flexibility
B) offers strong sample control
C) generates high response rates
D) eliminates interviewer bias
E) can be completed quickly
Answer: D
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

16
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59) Mail surveys have many disadvantages so many marketers have switched to ________.
A) telephone surveys
B) Internet-based surveys
C) group interviews
D) personal surveys
E) individual interviews
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

60) Experimental research is best suited for gathering ________ information.

A) exploratory
B) causal
C) ethnographic
D) interactive
E) descriptive
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

61) A(n) ________ is best suited for exploratory research.

A) mail survey
B) questionnaire
C) observation
D) online survey
E) focus group
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

62) ________ is best suited for descriptive research.

A) An online discussion
B) Ethnographic research
C) Experimental research
D) A survey
E) A focus group
Answer: D
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

17
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63) A market researcher wants to find the cause-and-effect relationship between using organic
ingredients in food and the subsequent consumption by customers. He invites ten respondents to
his research firm and asks them to taste two identical dishes. The dishes were prepared in a
similar manner, but one has natural herbs for flavoring, and the other has artificial flavors. This
is an example of ________.
A) descriptive research
B) ethnographic research
C) experimental research
D) online research
E) exploratory research
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

64) Burger Town introduced a new hamburger and released it in two different cities at two
different prices. Marketers of Burger Town then analyzed the sales records of their outlets at the
two cities, determined the price that resulted in better profits, and used the information to set a
nationwide price for their new offering. This is an example of ________.
A) exploratory research
B) survey research
C) focus group research
D) experimental research
E) descriptive research
Answer: D
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

65) Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since
the questions are likely to be personal and sensitive, Kathy wants to select a contact method that
will encourage respondents to answer honestly. Which of the following contact methods is most
likely to best serve Kathy's purpose?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) online discussions
Answer: A
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

18
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66) ________ are flexible and allow for explanation of difficult questions as well as
demonstrating products.
A) Mail questionnaires
B) Telephone interviews
C) Individual interviews
D) Online questionnaires
E) E-mail interviews
Answer: C
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

67) Which of the following is true of focus group discussions?

A) They usually employ large samples.
B) Consumers' facial expressions are hidden.
C) Results can be easily generalized to an entire population.
D) The quantitative data can be evaluated quickly and economically.
E) Consumers are not always honest and open about their opinions.
Answer: E
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

68) ________ are small groups of consumers who interact directly and informally with product
designers without a moderator.
A) Cross-functional groups
B) Ethnographic groups
C) Observational groups
D) Immersion groups
E) Traditional focus groups
Answer: D
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

69) Sample size and location have little impact on costs for ________.
A) focus group interviews
B) personal interviews
C) mail surveys
D) Internet-based surveys
E) telephone surveys
Answer: D
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

19
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70) Erica Jenson has a limited budget to conduct market research. Which of the following
research approaches would provide Erica with the most cost-effective way to reach a large
number of respondents in a short period?
A) telephone surveys
B) personal interviews
C) Internet-based surveys
D) mail surveys
E) focus group interviews
Answer: C
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

71) ________ mine(s) individual online media connections and conversations.

A) Qualitative research
B) Social targeting
C) Behavioral sampling methods
D) Online behavioral targeting
E) A focus group
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

72) Which of the following is a structured method of online research where marketers require
direct responses from customers?
A) online behavioral targeting
B) social media tracking
C) online listening
D) online surveys
E) blog analysis
Answer: D
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

73) A practice called ________ allows marketers to use online data to target ads and offers to
specific customers.
A) online listening
B) behavioral targeting
C) social media tracking
D) data analytics
E) online targeting
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge
20
Copyright © 2023 Pearson Education, Inc.
74) Harmon, a nationwide department store, uses checkout scanners to record shoppers'
purchases. Which term best describes Harmon's checkout scanners?
A) nonprobability sampling tool
B) mechanical instrument
C) neuromarketing tool
D) touch point device
E) CRM system
Answer: B
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

75) What are the two main types of research instruments used to collect primary data?
A) observation scales and personal interviews
B) questionnaires and mechanical devices
C) focus groups and mechanical devices
D) focus groups and questionnaires
E) personal interviews and online focus groups
Answer: B
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

76) The most common research instrument, whether administered in person, by phone, by e-
mail, or online, is the ________.
A) mechanical device
B) personal interview
C) questionnaire
D) telephone interview
E) focus group
Answer: C
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

77) Which of the following is true of question formats in questionnaires?

A) Closed-ended questions allow respondents to answer in their own words.
B) A scale question is an example of an open-ended question.
C) Open-ended questions allow respondents to choose among the best answer options available.
D) Closed-ended questions are difficult to evaluate when compared to open-end questions.
E) Open-ended questions are useful in exploratory research to find out what people think.
Answer: E
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

21
Copyright © 2023 Pearson Education, Inc.
78) Data collection, processing, and analysis are undertaken during which stage of the marketing
research process?
A) selecting a sampling method
B) interpreting the findings
C) implementing the research plan
D) drawing conclusions from the findings
E) selecting a research approach
Answer: C
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

79) Research plans are no longer presented in written format since everything is now digital.
Answer: FALSE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

80) Marketing research is the systematic design, collection, analysis, and reporting of data
directly relevant to a specific marketing situation facing an organization.
Answer: TRUE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

81) A sample is a segment of the population selected for marketing research to represent the
population as a whole.
Answer: TRUE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

82) Using nonprobability samples, each population member has a known chance of being
included in the sample, and researchers can calculate confidence limits for sampling error.
Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

83) In a convenience sample, the researcher selects the easiest population members from which
to obtain information.
Answer: TRUE
Diff: 3
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

22
Copyright © 2023 Pearson Education, Inc.
84) Primary data can usually be obtained more quickly and at a lower cost than secondary data.
Answer: FALSE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

85) Exploratory research would be used to gather data about the market potential for a new
product.
Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

86) Observational research is the most widely used method of primary data collection.
Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

87) The major advantage of survey research is its flexibility.

Answer: TRUE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

88) Researchers should use simple, direct, and unbiased wording of questions for research.
Answer: TRUE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

89) Individual interviews cost three to four times as much as telephone interviews.
Answer: TRUE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

90) The most important issue facing online researchers in the United States is the lack of a broad
cross section of consumers who have access to the Internet.
Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

23
Copyright © 2023 Pearson Education, Inc.
91) Ideally, a sample should be representative so that a researcher can make accurate estimates of
the thoughts and behaviors of the larger population.
Answer: TRUE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Reflective thinking

92) Each population member has a known chance of being included when a probability sampling
procedure is used.
Answer: TRUE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

93) The questionnaire is the most common research instrument.

Answer: TRUE
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

94) Neuromarketing uses EEG and MRI technologies to track brain electrical activity to learn
how consumers feel and respond.
Answer: TRUE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

95) Open-ended questions provide answers that are easier to interpret and tabulate than closed-
ended questions.
Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

96) Neuromarketing is used in combination with other research approaches to gain a more
complete picture of what goes on inside consumers' heads.
Answer: TRUE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

97) Neuromarketing and biometric techniques are widely considered to be unethical.

Answer: FALSE
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Ethical understanding and reasoning

24
Copyright © 2023 Pearson Education, Inc.
98) Explain the steps involved in the marketing research process.
Answer: The marketing research process involves four steps: defining the problem and research
objectives, developing the plan, implementing the plan, and interpreting and reporting the
findings. Managers must know what is wrong in order to define the problem. Research objectives
may be reached through exploratory, descriptive, or causal research. Once researchers have
defined the research problem and objectives, they must determine the exact information needed
and develop a plan for gathering it efficiently. The research plan should be presented in a written
proposal and must include the cost for the research. Once this is done, secondary and primary
data is collected and compiled. Then, the data is interpreted to draw conclusions, and finally
reported to management.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

99) Differentiate between the three types of marketing research objectives: exploratory research,
descriptive research, and causal research.
Answer: A marketing research project might have one of three types of objectives. The
objective of exploratory research is to gather preliminary information that will help define the
problem and suggest hypotheses. The objective of descriptive research is to describe things, such
as the market potential for a product or the demographics and attitudes of consumers who buy
the product. The objective of causal research is to test hypotheses about cause-and-effect
relationships. For example, a causal research study might probe whether a 10 percent decrease in
tuition at a private college would result in an enrollment increase sufficient to offset the reduced
tuition. Managers often start with exploratory research and later follow with descriptive or causal
research.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

100) Discuss the methods used by marketing researchers to gather secondary data.
Answer: A company's internal database provides a good starting point to gather secondary data.
However, the company can also tap into a wide assortment of external information sources.
Companies can buy secondary data from outside suppliers. For example, Nielsen sells shopper
insight data from a consumer panel of more than 250,000 households in 25 countries worldwide,
with measures of trial and repeat purchasing, brand loyalty, and buyer demographics. Using
commercial online databases, marketing researchers can conduct their own searches of secondary
data sources. General database services such as Dialog, ProQuest, and LexisNexis put an
incredible wealth of information at the keyboards of marketing decision makers. Beyond
commercial websites offering information for a fee, almost every industry association,
government agency, business publication, and news medium offers free information to those
tenacious enough to find their websites. Internet search engines can also be a big help in locating
relevant secondary information sources.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

25
Copyright © 2023 Pearson Education, Inc.
101) Briefly compare the three different types of research approaches used for gathering primary
data.
Answer: The three research approaches for gathering primary data are observations, surveys,
and experiments. Observational research involves watching relevant people, actions, and
situations, usually to glean customer insights that can't be obtained through direct questions and
answers. Observations can reveal information that people are unwilling or unable to provide in
surveys or experiments. Survey research is very flexible; it can be used to obtain many different
kinds of information in many different situations. Mail, telephone, and online surveys have
relatively low costs in comparison to observational research. Surveys are also better suited than
observations for identifying people's attitudes and feelings; surveys are best suited for gathering
descriptive information. Experimental research is best suited for gathering causal information.
This type of research is most appropriate for determining cause-and-effect relationships.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

102) Marketing research can be collected by mail, telephone, personal interview, or online.
Discuss the advantages of each contact method.
Answer: Mail questionnaires can be used to collect large amounts of information at a low cost
per respondent. Respondents give more honest answers to more personal questions on a mail
questionnaire, and there is no interviewer involved to potentially bias respondents' answers.

Telephone interviewing helps gather information quickly and provides greater flexibility.
Interviewers can explain difficult questions, as well as skip some questions or probe on others.

Personal interviewing takes two forms: individual interviewing and group interviewing.
Individual interviewing is flexible. Trained interviewers can guide interviews, show subjects
actual products, and observe reactions and behavior. Group interactions help bring out actual
feelings and thoughts.

Researchers can quickly and easily distribute Internet surveys to thousands of respondents
simultaneously via e-mail or by posting them on selected online sites. Responses can be almost
instantaneous, and researchers can tabulate, review, and share research data as the information
arrives.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Reflective thinking

26
Copyright © 2023 Pearson Education, Inc.
103) Marketing research can be collected by mail, telephone, personal interview, or online.
Discuss the disadvantages of each contact method.
Answer: Mail questionnaires are not very flexible; all respondents answer the same questions in
a fixed order. Mail surveys usually take longer to complete, and the response rate is often very
low. The researcher often has little control over the mail questionnaire sample.

With telephone interviewing, the cost per respondent is higher than with mail or online
questionnaires. Also, people may not want to discuss personal questions with an interviewer. The
method introduces interviewer bias.

Individual personal interviews may cost three to four times as much as telephone interviews.
Group interviews usually employ small samples to keep time and costs down, and it may be hard
to generalize from the results. Moreover, consumers in focus groups are not always open and
honest about their real feelings, behavior, and intentions in front of other people.

One major problem with Internet surveys is controlling who's in the online sample. Without
seeing respondents, it's difficult to know who they really are.
Diff: 2
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Reflective thinking

104) Compare and contrast closed-ended questions and open-ended questions for gathering data.
Answer: Closed-ended questions, which include all the possible answers, make it easier for
respondents to choose among relevant answers. They are also easier for the researcher to
interpret and tabulate. Open-ended questions, on the other hand, allow respondents to answer in
their own words and do not limit their choices. Open-ended questions are more difficult to
interpret and tabulate, but they are particularly useful in exploratory research.
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Analytical thinking

105) What is neuromarketing? How is neuromarketing used by marketers?

Answer: Neuromarketing involves measuring brain activity to learn how consumers feel and
respond. Marketing scientists using MRI scans and EEG devices have learned that tracking brain
electrical activity and blood flow can provide companies with insights into what turns consumers
on and off regarding their brands and marketing. Companies ranging from PepsiCo and Disney
to Google and Microsoft now hire neuromarketing research companies to help figure out what
people are really thinking. Although neuromarketing techniques can measure consumer
involvement and emotional responses second by second, such brain responses can be difficult to
interpret. Thus, neuromarketing is usually used in combination with other research approaches to
gain a more complete picture of what goes on inside consumers' heads.
Diff: 1
LO: 4-3: Outline the role of marketing research and the steps in the marketing research process.
AACSB: Application of knowledge

27
Copyright © 2023 Pearson Education, Inc.
106) Which of the following would NOT be considered a customer touch point?
A) customer purchases
B) sales force contacts
C) support calls
D) social media posts
E) manager's opinion
Answer: E
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Analytical thinking

107) Approximately 99.9% of big data is ________.

A) stored onsite
B) considered actionable
C) not very useful
D) extremely useful to decision makers
E) considered right data
Answer: C
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Analytical thinking

108) Technology by which machines think and learn in a way that looks and feels human is
known as ________.
A) CRM
B) EEG
C) marketing analytics
D) artificial intelligence
E) neuromarketing
Answer: D
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Analytical thinking

109) A firm has a huge amount of individual customer data saved in different databases. Which
of the following can be used to integrate, analyze, and apply the available information
effectively?
A) online market research tools
B) integrated marketing systems
C) CRM systems
D) internal survey methods
E) quality assurance tools
Answer: C
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Analytical thinking

28
Copyright © 2023 Pearson Education, Inc.
110) Which of the following is true about customer relationship management (CRM)?
A) It eliminates the need for primary research.
B) It minimizes the need for costly marketing analytics.
C) It relies on the use of exploratory and causal research.
D) It consists of sophisticated software and analytical tools.
E) It excludes data on existing customers to focus on potential customers.
Answer: D
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

111) Marketers apply ________ to the large and complex sets of data they collect to gain
customer insights and gauge performance.
A) CRM software
B) predictive analysis software
C) marketing analytics
D) CRM systems
E) intranet capabilities
Answer: C
Diff: 1
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

112) Suppliers and resellers can update their accounts, arrange purchases, and check orders
against inventories through ________.
A) a company's extranet
B) a company's intranet
C) marketing intelligence
D) electronic mail
E) search engines
Answer: A
Diff: 1
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

113) The analysis tools and processes used to dig out meaningful patterns in big data is called
customer relationship management.
Answer: FALSE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

114) Most big data is useful to marketers.

Answer: FALSE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge
29
Copyright © 2023 Pearson Education, Inc.
115) The main challenge for researchers using big data is to find the small fraction of data that
provides meaningful information.
Answer: TRUE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

116) Artificial intelligence is not advanced enough yet to have any real marketing application.
Answer: FALSE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

117) Marketers should start with the fundamentals of managing customer relationships and then
employ high-tech data and analytics solutions.
Answer: TRUE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

118) CRM analysts use big data and marketing analytics to unearth patterns in customer data.
Answer: TRUE
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

119) What is customer relationship management (CRM)? What are the functions of CRM? How
do firms benefit from CRM systems?
Answer: Most companies are awash in information about their customers. This information is
usually scattered widely across the organization. It is buried deep in the separate databases and
records of different company departments. To overcome such problems, many companies are
now turning to customer relationship management. CRM systems integrate, analyze, and apply
the mountains of individual customer data contained in their databases. CRM consists of
sophisticated software and analytical tools from companies such as Salesforce.com, Oracle,
Microsoft, and SAS that integrate customer information from all sources, analyze it in depth, and
apply the results to build stronger customer relationships. CRM integrates everything that a
company's sales, service, and marketing teams know about individual customers, providing a
360-degree view of the customer relationship. Marketing information has no value until it is used
to make better marketing decisions.
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Analytical thinking

30
Copyright © 2023 Pearson Education, Inc.
120) Differentiate between intranets and extranets. How are such systems beneficial to marketing
managers?
Answer: Information distribution involves entering information into databases and making it
available in a timely, user-friendly way. Many firms use company intranet and internal CRM
systems to facilitate this process. These systems provide ready access to research and intelligence
information, customer contact information, reports, shared work documents, and more. In
addition, companies are increasingly allowing key customers and value-network members to
access account, product, and other data on demand through extranets. Suppliers, customers,
resellers, and select other network members may access a company's extranet to update their
accounts, arrange purchases, and check orders against inventories to improve customer service.
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

121) What is marketing analytics? Why has it become so central to gathering data about
customers and performance?
Answer: Marketing analytics consists of the analysis tools, technologies, and processes by
which marketers dig out meaningful patterns in big data to gain customer insights and gauge
marketing performance. Marketers apply marketing analytics to the large and complex sets of
data they collect from Web, mobile, and social media tracking; customer transactions and
engagements; and other big data sources. For example, Netflix maintains a bulging customer
database and uses sophisticated marketing analytics to gain insights, which it then uses to fuel
recommendations to subscribers, decide what programming to offer, and even develop its own
exclusive content in the quest to serve its customers better. Marketing analytics is necessary to
convert the wealth of data into information that is both usable and valuable for marketers.
Gathering and sifting through the big data is essential for uncovering insights about customers
and performance that are actionable.
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

122) What is artificial intelligence and how is it used in marketing?

Answer: Artificial intelligence (AI), is the technology by which machines think and learn in a
way that looks and feels human but with a lot more analytical capacity. Artificial intelligence has
taken the marketing–and about everything else in the world–by storm. Marketers are now using
AI for everything from big data analytics to engaging customers to crafting personalized
advertising and selling efforts. Although still in its infancy, AI offers vast potential for
marketing. As Google's CEO Sundar Pichai suggests, AI "is more profound than fire or
electricity."
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

31
Copyright © 2023 Pearson Education, Inc.
123) List some examples of how AI is currently being used.
Answer: Amazon's Echo is a very visible example of AI. Echo answers questions, creates music
play lists, and send text messages all while collecting consumer preferences. IBM's Watson can
tell jokes, answer questions, and write songs. Marketers use AI to gather information and target
advertising in every sector of the economy. Firms can use it to keep inventory up to date so
stockouts do not result in missed sales. Home Depot uses AI to give shoppers home renovation
ideas and product suggestions. The applications of AI for marketing are limitless.
Diff: 2
LO: 4-4: Explain how companies analyze and use marketing information.
AACSB: Application of knowledge

124) For most small businesses useful market information and customer insight is ________.
A) too expensive to obtain
B) attainable without spending a lot of money
C) only possible if they adopt AI
D) typically determined by hiring a consulting firm
E) obsolete before it is analyzed
Answer: B
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Application of knowledge

125) Online sources of valuable information for small businesses include all of the following
EXCEPT ________.
A) observation
B) competitor websites
C) service review websites
D) social media posts
E) government agency data
Answer: A
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Application of knowledge

126) One of the challenges of conducting international marketing research is ________.

A) a scarcity of good secondary data
B) the homogeneity of foreign markets
C) that primary data is not very useful in these markets
D) hiring good marketing researchers to interpret the data
E) there are too many similarities across countries
Answer: A
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Application of knowledge
32
Copyright © 2023 Pearson Education, Inc.
127) A not-for-profit firm uses a small convenience sample to gather data on customer reactions.
It invites a small group of customers for lunch and asks them to share what they think about the
products they have purchased from the firm. This is an example of ________.
A) informal surveys
B) experimental research
C) neuromarketing
D) direct marketing
E) formal surveys
Answer: A
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Application of knowledge

128) Which of the following would most likely use informal research methods to obtain
marketing insights?
A) multinational firms
B) pharmaceutical firms
C) brick-and-mortar companies
D) not-for-profit organizations
E) family-owned businesses
Answer: D
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Analytical thinking

129) Which of the following statements about international marketing research is true?
A) International marketing research has declined over the past decade due to global economic
decline.
B) Conducting personal interviews in developing countries is generally less difficult and less
expensive than doing so in developed nations.
C) International researchers follow a different set of steps in marketing research than domestic
researchers.
D) Language translation in international marketing research typically increases costs and raises
the risk of errors.
E) International researchers benefit from useful secondary data that is available online, so
primary data is typically unnecessary.
Answer: D
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Analytical thinking

33
Copyright © 2023 Pearson Education, Inc.
130) Vincent Cosmetics decides to launch a cream with a claim that it makes skin "nine times
smoother." The claim is based on a study of 30 respondents who used products of other brands as
well. However, a second study on a larger sample reveals only a mild correlation between the use
of the cream and smoother skin. In these circumstances, which of the following is the most
ethical approach that Vincent Cosmetics can follow?
A) It should market the product as planned with the promotional line of "nine times smoother."
B) It should modify the results of the study to depict a strong correlation.
C) It should report the result as it is, or improve the product to match its claim.
D) It can continue to claim a high correlation and add a tag line saying "results may vary."
E) It should feature a testimonial from a satisfied user in an advertisement to support its claim.
Answer: C
Diff: 3
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Ethical understanding and reasoning

131) Intrusions on consumer privacy is one of the main ethical issues facing marketers.
Answer: TRUE
Diff: 1
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Ethical understanding and reasoning

132) Consumer data protection issues do not impact marketers since they are the primary focus
of the information technology department.
Answer: FALSE
Diff: 1
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Ethical understanding and reasoning

133) Consumer privacy issues are easy to identify for marketers collecting consumer data.
Answer: FALSE
Diff: 1
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Ethical understanding and reasoning

34
Copyright © 2023 Pearson Education, Inc.
134) Discuss several ways in which small organizations can conduct marketing research at little
or no expense.
Answer: Small organizations can use the same marketing research processes used by larger
firms, as well as many of the same methods, such as secondary data collection, observation,
surveys, and experiments. There are many sources of free secondary data on the Web, and small
firms also have access to special help collecting data from chambers of commerce, government
agencies, and other organizations. Managers of small organizations can use observation to collect
data. For example, they can monitor competitors' advertisements, evaluate their own customer
mix, and regularly visit their competitors' places of business. Informal surveys with small
convenience samples are another tool that smaller organizations can use. Finally, managers of
smaller organizations can conduct simple experiments by altering one aspect of a marketing
strategy and analyzing the results. As with larger firms, smaller organizations must conduct
research systematically for the results to be valid and useful.
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Reflective thinking

135) How has the marketing research industry responded to the intrusion and privacy issues
concerning consumer data?
Answer: The marketing research industry is considering several options for responding to
intrusion and privacy issues. One example is the Marketing Research Association's "Your
Opinion Counts" and "Respondent Bill of Rights" initiatives to educate consumers about the
benefits of marketing research and distinguish it from telephone selling and database building.
The industry also has considered adopting broad standards, perhaps based on the International
Chamber of Commerce's International Code of Marketing and Social Research Practice. This
code outlines researchers' responsibilities to respondents and the general public. For example, it
urges that researchers make their names and addresses available to participants and be open
about the data they are collecting.
Diff: 2
LO: 4-5: Discuss the special issues some marketing researchers face, including public policy
and ethics issues.
AACSB: Ethical understanding and reasoning

35
Copyright © 2023 Pearson Education, Inc.