Marketing Research, 11th Edition Test Bank David A Aaker by Ace Test Banks

Marketing Research, 11th Edition

By David A. Aaker

Email: richard@qwconsultancy.com

Test Bank CHAPTER 1

A Decision Making Perspective on Marketing Intelligence ______________________________

True-False 1.

Marketing research involves the gathering and analysis of data for the purpose of evaluating decisions which have been made in the public or private sector.

Marketing research is the link between the organization and its market environment. It involves the specification, gathering, analyzing, and interpretation of information to help management understand the environment, identify problems and opportunities, and develop and evaluate alternative courses of marketing action.

Companies do market analysis to recognize, as early as possible, opportunities or problems that require them to change their marketing programs.

Once the marketing program is launched and its objectives set, further research is not likely to be beneficial.

Market information systems contain three types of information: routine market and accounting data, marketing intelligence, and marketing research.

Faced with budget constraints, a firm can economize in setting up its MPIS by foregoing market analysis activities and concentrating instead on strategic planning.

The identification of problems, opportunities in the market, and plans for the launching of a new product, are all parts of the strategic planning activity of the firm.

Government statistics should not be included in the marketing data of a firm, since they are available for all the competitors as well. Only in-house records should be used.

Before developing marketing programs, management should always have a thorough understanding of the environment of the firm.

10.

Continuous information is essential, especially on key variables in the market, since the speed and direction of change can be gauged only if there are benchmarks from which to measure.

11.

Each new product idea should be considered in depth before any attempt is made to measure the market's interest in that product.

12.

Marketing research should be undertaken only when its results will reduce uncertainty or confirm the wisdom of previous decisions.

13.

Marketing researchers must learn to compromise, and sometimes that means sacrificing accuracy in exchange for a study that is efficient, relevant, and on time.

14.

If several approaches are used to address a research problem and each approach has a different kind of bias, the result of the research will be biased by the sum of the individual biases. In practice, this means reduced accuracy.

15.

Marketing research can be used for acquisition studies and for market segmentation and product positioning analyses.

16.

Marketing research can only be used in issues that involve fundamental shifts in the positioning of a business.

17.

In a market planning process, situation analysis pertains to measuring performance strategies and refining them, if necessary.

18.

In a marketing research study, relevance comes through anticipating the kinds of information that will be required.

19.

International marketing research can be defined as marketing research conducted to aid in making decisions in more than one country.

20.

Managers readily use the information generated through marketing research to solve their problems.

21.

The information needs for strategy development and marketing program developments are the same.

22.

Strategy development, in a marketing planning process, pertains to defining the business scope, setting performance objectives, and establishing competitive advantages.

23.

Situation analysis, in a marketing planning process, concerns scanning the environment, identifying the threats and opportunities, and assessing the competitive position.

24.

Marketing Research is an immediate or an obvious path to finding solutions to all managerial problems.

25.

A new Marketing Research should conducted even if the information required for decision making already exists in the form of results of a study conducted for a different problem.

26.

Business Intelligence is the ability to access data from multiple sources within an enterprise and deliver it to business users for analysis

27.

The purpose of marketing intelligence is just to gather data

28.

Marketing intelligence is a form of business intelligence used in strategic planning and problem solving.

29.

Marketing intelligence helps to capture popular perceptions and changing trends, tastes and life styles and to make right decisions.

30.

Producers and Channels have significant knowledge about customer attitudes, preferences and changing tastes

31.

Marketing Intelligence helps decision makers in building brand equity and consciousness among the targeted customer segments.

32.

Marketing Intelligence stresses more on profit maximization as the goal of an organization than on customer satisfaction.

33.

Obtaining information about customer needs and gather marketing intelligence helps organizations to satisfy customer needs efficiently.

34.

Information in existing databases is not useful for gathering marketing intelligence data.

35.

Extrapolation from present data is an effective forecasting procedure

36.

Scenario Planning allows practitioners to prepare for the future by picturing a number of possible future scenarios

37.

In Scenario Planning technique key change indicators are monitored and used to gauge how events turn out.

38.

The two main branches of study under Marketing Intelligence are Marketing Strategy and Database Marketing.

39.

A satisfied customer is a profitable customer

40.

The marketing concept requires that profit maximization should be the goal of marketing intelligence applications

41.

Some amount of personal bias in marketing research is acceptable as ethical research

42.

Political acceptability within the firm affects a manager’s decision to use research information

43.

There are many situations where the timing of decisions is contingent upon research results

44.

If the information required for decision making already exists within the organization, in the form of results of a study conducted for a different problem or in the form of managerial experience and talents, marketing research is not called for.

45.

One of the reasons to conduct research is to satisfy curiosity or confirm the wisdom of previous decisions

Multiple Choice 1.

The factor that does not influence the use of marketing research in organizations is a. quality of the research b. market share of the product c. clarity of presentation d. political acceptability within the firm

Which answer best describes a market researcher ? a. one who is academically trained for market research b. one who understands the marketing process as well as the subtleties of marketing problems and opportunities c. one who is well trained in statistics and can design proper sampling procedures d. one who has a strong background in communications and advertising

Which of the following is not always true of marketing research ? a. uses methodologically sound procedures b. procedures are planned in advance c. generally conducted to support existing ideas d. none of the above

Market research for any firm should be a. internal if the firm is small b. external if the firm is large c. based on the needs of the firm d. none of the above

Method of data collection is decided in which of the following stages ? a. defining the problem b. formulating the research design c. preparing and analyzing data d. none of the above

Which one of the following can be termed as strategy development ? a. deciding on the sources of data for market research b. planning to recover lost market share c. choosing the right design for market research d. none of the above

Marketing research is a. an informational input to decisions. b. a link between the organization and its market environment. c. the specification, gathering, analyzing, and interpretation of information to help management make decisions. d. all of these.

The marketing research department(s) within an organization should report to 1. the highest level of general management. 2. the top marketing officer. 3. top executives in various divisions if the marketing research function is decentralized. a. 1 b. 2 c. 3 d. any of these, depending on the needs of the organization and the location of the department(s).

The following should be included in the development phase of a company's marketing program: a. identifying problems and planning advertising. b. identifying problems and monitoring performance. c. making product and price decisions. d. performance evaluation and promotion decisions.

10.

The most efficient way to analyze a market is through the use of a. a survey. b. a focus group. c. information already available. d. whatever type of research will provide the greatest benefit for the least cost, while remaining appropriate to the decisions that managers face.

11.

In a marketing planning process, scanning the environment and

identifying the threats and opportunities is a. situation analysis. b. strategy development. c. marketing program development. d. opportunity analysis. 12.

A marketing research study should be ordered if and only if the research costs a. exceed the perceived value of information. b. equal the perceived value of information. c. are less than the perceived value of information. d. are absolutely minimal.

13.

Marketing research should not be done if 1. the type of information required to solve the problem exists, within the organization or outside. 2. the timing for the decision is not conducive. 3. there is a lack of resources. a. 1 b. 2 c. 3 d. 1, 2, and 3

14.

When the organization lacks funds, research study can be impeded because it may result in 1. improper execution of the project. 2. inefficient execution of the project. 3. improper implementation of the research decision. a. 1 b. 2 c. 3 d. 1, 2, and 3

15.

Before conducting a research, to determine the value of the information sought through the research, a manager should perform a a. situation analysis. b. strategy development. c. marketing program development. d. cost-benefit analysis

16.

Marketing Intelligence helps decision makers in performing the following a. Estimating size of the market b. Quantitative and behavioral analysis of the market c. Forecasting future trends/needs. d. All of the above

17.

Database analysis includes all of the following EXCEPT a. Extracting data from existing Databases b. Performing statistical analysis to better understand customers and their behavior. c. Database Administration d. Merging cleaned data with other relevant data

18.

Which of the following can be applications of Marketing Intelligence

a. b. c. d.

19.

Market opportunity identification to build profitable businesses Marketing mix creation; acquisition and retention of customers Planning, organization, evaluation and control market performance All of the above.

Market intelligence (MI) is

a. b. c. d.

The process of acquiring and analyzing information in order to understand the market (both existing and potential customers) Determining the current and future needs and preferences, attitudes and behavior of the market Assessing changes in the business environment that may affect the size and nature of the market in future. All of the above

20. Which of the following does not fall under the list of respondents’ rights? a. The right to decide which questions to answer b. The right to know the true purpose of the research c. The right to give an incorrect response d. The right to receive the results of the research

Test Bank CHAPTER 2

Marketing Research in Practice _________

True-False 1.

In practice, a marketing research department's goal can be grouped into three major categories: Programmatic, Evaluative, and Selective.

The purpose of an MDSS is to combine marketing data from diverse sources into a single database for line managers to enter interactively and obtain information.

Standardized services are provided by companies that specialize in just one or two aspects of marketing research.

An information system is an interacting structure of people, equipment, and procedures designed to disseminate timely, accurate, and pertinent information to decision makers.

Though MDSS leads to substantial cost savings, it does not lead to a better understanding of the decision environment.

Databases have value even if the insights they contain cannot be retrieved

Analysis capabilities can be used to relate data to models but cannot be used to identify exceptions and clarify relationships.

The Starch Readership Survey is an example of a Syndicated Market Research Service

The top US market research organizations have a significant majority of their revenues coming from US based research operations.

10.

A good MDSS should be able to present data in a single format and at a single level alone

11.

A database typically contains data from all sources, stored in a sufficiently disaggregated way so that it can be analyzed by products or geographic regions or customers or by time intervals.

12.

MDSS can provide complex plots, charts, and other graphic displays

13.

Even if a company has an in-house research department, it is not unusual for it to seek the assistance of external suppliers

14.

Even if a company has an in-house research department, it is not unusual for it to

Multiple Choice 1.

A syndicated research differs from a customized research in that a) it takes less time to complete a research project b) it is jointly sponsored by several different organizations c) it provides more accurate data d) none of the above

Two characteristics of customized research services that are frequently not found in syndicated research services are a) relatively low cost, and expertise b) reliability and fast response c) pertinence and accuracy d) flexibility and confidentiality

In general if primary research does not have an effect on management decisions a) it is exploratory b) it is unobtrusive c) it is descriptive d) it should not be done e) costs should be cut as much as possible

The most economical and fastest sources of information are generally provided by a) interviews b) secondary data c) qualitative data d) none of the above

A clear definition of the market research project is needed so that a) the decision maker is aware of the methods b) an appropriate method for carrying out the research can be chosen c) the researcher is aware of the results d) none of the above

Which one of the following can affect market research ? a) available resources to conduct research b) the objectives of the sponsor c) the decision maker’s understanding of the problem d) all of the above

___________ research is conducted to develop marketing options. a. Selective b. Programmatic c. Evaluative d. Optional e. None of the above

Evaluative research is used to a. assess program performance. b. choose between decision choices. c. develop marketing options. d. test decision alternatives. e. none of the above.

Marketing research firms that are involved only in data collection are called a. syndicated service firms. b. standardized service firms. c. customized service firms. d. field service firms. e. none of the above.

10.

A decision support system a. retrieves data, transforms it into information, and disseminates it to the user. b. organizes, stores, and retrieves information.

c. gathers, sorts, and analyzes information. d. stores, analyzes, and sorts data. e. none of the above. 11.

Models are used to a. test alternative marketing programs. b. assist in setting up realistic objectives. c. answer "what if" questions. d. all of these. e. none of the above.

12.

Firms that work with individual clients and help them develop and implement a complete marketing research project are called providers of a. customized services. b. syndicated services. c. selective services. d. field services. e. in-house services.

13.

Selective service firms are a. firms with specialized data collection and analyses procedures. b. firms that specialize in just one or two aspects of marketing research. c. firms that collect only data for projects. d. firms that selectively choose clients. e. firms that provide routine information on various issues.

14.

Compared to field service firms, syndicated service firms a. are considerably smaller. b. are considerably larger. c. are about the same size. d. cannot be compared. e. none of the above.

15.

Syndicated service firms 1. cater to the common information requirements of many companies. 2. collect, collate, and sell the same data to a large number of companies. 3. execute one of a kind marketing research projects for clients. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

16.

A good MDSS should have the following characteristics: 1. Interactivity 2. Flexibility 3. Orientation towards discovery 4. Friendly towards users

a. 1 and 2 only b. 1, 2 and 3 c. 2 and 3 only d. All of the above

Test Bank CHAPTER 3

The Marketing Research Process _________

True-False 1.

The research process consists of connected stages or steps that guide a project from its conception to the final analysis, recommendations, and ultimate action.

The sole involvement of the Marketing Planning and Information System in the marketing research process consists of pointing out the need for research.

The single most important element of good research is the development of a research purpose that links the research to decision making.

The information system can often be used directly to answer research questions.

The MPIS should store information in such a way that it is visible and accessible to only the highest levels of management.

The information system is primarily of value in the practical planning phase.

A good MPIS can prevent marketing research from becoming a series of isolated projects and one-shot attempts to get needed information.

The specification of research tactics is the most important part of the research process.

The research strategy and tactics are both ultimately guided by the research purpose.

10.

Research that will not affect management decisions has no practical value.

11.

In marketing research, the obvious problem is the one which should first be addressed. This may save the cost of exploratory research and will sooner or later reveal the underlying problem.

12.

Marketing researchers should never make the trade-off between accuracy and completeness on the one hand, and time and costs on the other.

13.

Researchers should know the objectives and expectations of the managers making decisions, since that will result in a higher probability of research acceptance.

14.

Once the research process enters the design phase, there should be no change in the purpose of the research.

15.

The research objective is a statement of the information that is needed. This objective should be consistent with the decision described in the research purpose.

16.

There are three elements in the research objective: the research questions which specify the information needed; hypotheses which are alternative answers to the research questions; and an outline of the research design.

17.

Even if the results of a project fail to answer the research question, the information still helps the decision maker.

18.

The role of the research objective is to provide guidance to the research design. The more specific the research question, the less valuable is the guidance.

19.

In general, more specification is added to the research question when a hypothesis (the anticipated answer to the research question) is stated.

20.

More than one hypothesis will tend to make the research question more general. For that reason, researchers should usually limit themselves to developing only one hypothesis.

21.

A hypothesis should always be stated, even if it is a simple restatement of the research question, since the creation of a hypothesis is part of the formal marketing plan.

22.

Probably the most important source of a hypothesis is a combination of a manager's past experience with similar problems and the use of judgment.

23.

In an effort to avoid redundant research, it is important to indicate the scope of the research. The more important the purpose of the research, the broader the scope should be.

24.

The value of perfect information is always positive.

25.

The value of perfect information is calculated to provide the manager with an estimate of how much he should spend on research.

26.

If a decision will not be affected by the research results, the value of perfect information is zero.

27.

Perfect information has no value if the worst possible outcome of the decision yields a profit of zero dollars.

28.

The value of perfect information is calculated as the sum of the probability of obtaining the k-th research result times the value of the k-th research result, where the k are the different research results.

29.

If the expected value of introducing a product is positive, then the value of perfect information is zero.

30.

The basic functions of marketing research does not vary between domestic and international marketing research.

31.

There is no difference in the level of complication between an international and domestic marketing research.

32.

The major reason for failure of businesses in foreign environment's has been the Self-Reference Criterion adopted by researchers in defining the problem in a foreign country.

33.

Self-Reference Criterion assumes that the environmental variables that are prevalent in the researcher's home market are also applicable to the foreign country.

34.

The objective of foreign market opportunity analysis is to gather information on questions to help the management narrow down the possibilities for international marketing activities.

35.

A specific research purpose can have only a specific research question.

36.

Identifying loyal customers and doing targeted marketing are essential components in opportunity analysis

37.

A concept test is employed to determine if a concept should be developed further

38.

Hypothesis development and research boundaries help the researcher make the research question more specific

Multiple Choice Veekay Co. recently developed a new line of computers. Prior to the introduction the management felt that the product had 50% chance of being extremely successful, 30% chance of being successful and 20% chance of failing. If extremely successful the product would generate $12 million in profits over the planning period, if successful $8 million and if it failed the result would be loss of $7 million. If Veekay does not introduce this new line, they will stay with the current product and realize a profit of $5 million based on the company’s projections. Questions 1 to 6 are based on the above.

What decision would Veekay make if they used a minimax regret decision rule? a) not enough information is given b) introduce the new line c) stay with the current product d) they would be indifferent e) none of the above

What is the expected value to Veekay of introducing the new line of personal computers? a) $8.4 million b) $7.0 million c) $9.8 million d) $5.0 million e) $9.4 million

Assume for the rest of the problem the answer to question 2 is $6 million

If Veekay bases their decision only on expected values, should they introduce the new line of personal computers? a) yes b) no c) they would be indifferent d) not enough information is given e) they should provide free sample instead of doing any market research What is the expected value under certainty? a) $8.4 million b) $7.0 million c) $9.8 million d) $5.0 million e) $9.4 million

Assume for the rest of the problem the answer to question 4 is $8 million.

What is the expected value of perfect information? a) $2.0 million b) $3.0 million c) $5.0 million d) $6.0 million e) $8.0 million

The research director was asked what the total cost of the research would be He stated that after including all the expenses of the test market, salaries, wages, outside consulting fees etc. the total cost would be $2.2 million. Should the company do the research study proposed by the director ? a) yes b) no c) does not make any difference, expected profits are the same either way d) not enough information to complete the decision tree and all calculations e) not enough time to do a decision tree Which of the following is the most essential characteristic of good decision making information? a) accuracy b) currency c) sufficiency d) relevancy

A decision situation exists when a) all possible decision alternatives have been defined b) a choice must be made between two or more courses of action c) a deadline is approaching d) uncertainty exists

The Bayesian approach to decision making a) assigns probabilities to each state of nature based on relative frequency probabilities b) uses personal probabilities reflecting the decision maker’s confidence in the truth of a specific proposition c) is based on the principle of insufficient reason d) assumes complete ignorance about the true state of nature

10.

The most important activity stage in the marketing research process is a) marketing problem or opportunity identification b) marketing research project design c) data collection d) preparing and presentation of the research report

11.

Statistical hypotheses are a) qualitative in nature b) usually selected in a positive form c) incapable of definitive testing d) either accepted or rejected

Use the following information for questions 12 - 14: The decision tree below was prepared for the introduction of a new product. Which of the following is true? .4 Very successful ($1,000,000) Introduce .3 Moderately successful ($200,000) .3 Not successful (-$200,000) Don't Introduce 12.

The expected value under uncertainty is a) $520,000 b) $460,000 c) $400,000 d) $120,000 e) $60,000

13.

The expected value under certainty is a) $520,000 b) $460,000 c) $400,000 d) $120,000 e) $60,000

14.

The expected value of perfect information (EVPI) is a) $400,000 b) $120,000 c) $60,000 d) $0 e) -$60,000

15.

Which of the following is not true of a hypothesis? They a) may be accepted or rejected b) are merely a restatement of a research question c) may be unproven d) are all of the above

16.

Which of the following is not true about the research process? a. It is a systematic, planned approach. b. It ensures that the stages of the research project will be independent of each other. c. It guides the project from conception to the final analysis and presentation of results. d. It creates a consistency between the research design and the research purpose. e. All of these are true.

17.

Which of the following is not a part of the research process? a. Formulation of the problem b. Calculating the expected value of the project c. Analyzing the data d. Discussing the background of the research with decision makers e. All of these are part of the research process.

18.

Which of the following should be understood before developing the research purpose? a. The decision alternatives and means of choosing among them b. The timing and importance of the decision to be made c. Anticipated problems or opportunities d. The expectations and objectives of the research users e. All of these

19.

Which of the following statements regarding the relationship between research users and researchers is false? a. When an internal problem is being studied, the researcher should not know the identities of the research users. b. The more a researcher knows about the objectives of the research users, the more valuable the researcher is likely to be. c. The larger the problem, the more difficult it tends to be for a researcher to maintain contact with the research users. d. They should have a shared understanding of decision alternatives, the importance of the decision, and the problems or opportunities that are anticipated. e. All of these are true.

20.

Which of the following could be the covert purpose for a research study? a. Postponement of an awkward decision, such as recalling an old product. b. A desire to give the researcher responsibility for a difficult decision. c. A manager's need for public relations for his programs. d. A manager's desire to confirm the wisdom of a decision which has already been made. e. All of these

21.

The research question a. refers to the question of whether or not to proceed at each evaluation point in the research project. b. should not be specified in research involving internal problemsolving. c. should be prepared in general terms. d. asks what specific information is needed to achieve the research purpose. e. should be consistent with the research purpose, with only one question stated for each purpose.

22.

Which of the following is not true about hypotheses? a. A hypothesis is a possible answer to a research question. b. A hypothesis usually adds specificity to a research question. c. Only one hypothesis is concerned with each specific research purpose. d. The alternative hypothesis is often obvious and need not be stated. e. Not all situations require the development of hypotheses.

23.

Sources of information to develop hypotheses include a. previous research. b. exploratory research specifically designed to come up with a hypothesis. c. different academic fields, such as psychology, sociology, and marketing. d. a manager's past experience. e. all of these.

24.

In estimating the value of research information, which of the following should not be calculated? a. The expected value of the decision b. The probability of obtaining each outcome c. How the research would affect the expected value of the decision d. The amount to be gained or lost corresponding with each outcome e. The value of additional information

25.

A decision tree represents 1. decision alternatives. 2. the uncertainty involved in the decision process. 3. the path that the research process will follow. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

26.

The research design does not involve a. determining the sampling plan. b. decisions on the sampling frame. c. collection of the data to be used. d. creating the questionnaire. e. selection of the research approach.

27.

Which of the following is not part of the implementation phase of the research process? a. Data collection b. Data analysis c. Presentation of the results to the decision maker d. Specification of the sample size e. All of these are part of the implementation phase of the research process

28.

Gathering information on questions that would help the management to narrow down the possibilities for their marketing activities in an international context is called a. an exploratory survey. b. foreign market opportunity analysis. c. programmatic research. d. formalized research. e. international research.

29.

Assuming that the environmental variables prevalent in the researcher's domestic market is also applicable to the foreign country is called a. Self-Reference Criterion. b. ethnocentricity. c. geocentricity. d. home country affiliation. e. none of the above.

30.

Research studies evolve through a number of steps which are linked a. sequentially b. randomly. c. geographically. d. they are not linked e. symmetrically

31.

The following is not a part of the Research Objectives a. research question. b. analysis of results. c. development of hypotheses. d. scope. e. all of the above

32.

Research problems in cross-cultural contexts are due to:

a. differences in socioeconomic conditions, b. levels of economic development, c. differences in any of the macroenvironmental factors d. all of the above e. none of the above

Test Bank CHAPTER 4

Research Design and Implementation

True-False 1.

A research design can be defined as the detailed blueprint used to guide the implementation of a research study towards the realization of its objectives.

Among the many decisions involved in designing a research study, the decision of how the data will be obtained is not one of the most important.

Tactical research decisions must be made before the research approach has been chosen.

The research objective, approach, and tactics should fit together. A researcher has an indication that the decision process is not going well when earlier decisions have to be modified because of subsequent decisions.

Exploratory, descriptive, and causal research approaches differ in how precise their hypotheses are and in their data collection methods.

Exploratory research is characterized by research methods that are highly structured.

In exploratory research, hypotheses may be very vague or may not exist at all.

Exploratory research may be useful in finding out what kinds of questions the respondents will be willing or able to answer.

Descriptive research can isolate the cause in a cause-and-effect relationship.

10.

Descriptive research can be used to find out how a company should change its product or what kinds of potential customers it should appeal to.

11.

Descriptive research can be thought of as a snapshot of some aspect of the marketing environment at a particular point in time.

12.

In causal research, the research questions and hypotheses are very specific.

13.

The three research approaches — exploratory, descriptive, and causal--are often used to complement each other in a research study.

14.

A researcher should only use a secondary source after all primary sources have been exhausted.

15.

Syndicated data are an example of secondary data.

16.

Asking experts their opinions and doing depth and focus-group interviews are examples of qualitative research.

17.

The difference between laboratory and field experiments is whether variables are manipulated in an artificial or a natural setting.

18.

A single research approach is seldom perfectly suited to a research objective, and the best choice is often the approach with the greatest number of strengths and the fewest weaknesses.

19.

Because different research methods serve different purposes, a researcher can get into difficulty by combining several methods in a single research study. For that reason, it is best to stick with one method.

20.

Using outside research suppliers will nearly always reduce the credibility of research results.

21.

Lower cost and specially skilled personnel can be two good reasons to use outside research suppliers.

22.

When selecting an outside research supplier or consultant, it's important to judge how well the people who will be responsible for the project understand the research objective.

23.

After the research objective has been translated into information requirements and then specific questions, data collection is ready to begin.

24.

Probability sampling should be used whenever it is crucial to have a sample that is representative of the population being studied.

25.

In a probability sample, each member of the population has a known probability of being included in the sample.

26.

A major challenge that is faced by the researcher in designing the sampling plan is how to minimize nonresponse.

27.

One useful method to anticipate the results of analysis is to produce dummy or fictional data for survey questions and then to analyze that data.

28.

Because the results of research studies are unpredictable, it is not possible to judge beforehand whether specific cross-tabulations of one question by another will be relevant to the research question.

29.

Deciding on the sampling plan and anticipating the results of analysis are significant steps in the research process, but at this point it is still too early in the process to allow for a more reliable estimate of the cost of a study.

30.

When a detailed cost-benefit analysis is done, one decision alternative is to terminate the research study.

31.

The time involved in doing a research study should be considered when calculating the cost of research. An opportunity may be missed if research delays a management decision.

32.

The total error in a research study is the difference between the true mean value of the variable being studied and the observed mean value obtained through the research study.

33.

Sampling error is maximum when the sample size equals the population.

34.

Design errors are also called research induced errors.

35.

Sampling frame error occurs when an inappropriate population is chosen for the research study.

36.

Selection error occurs when a sample selected is not representative of the population.

37.

Surrogate information error is the difference or variation between the information required for a marketing research study and the information being sought by a researcher.

38.

Error caused by the improper design of an experiment is measurement error.

39.

Response errors occur when the respondent provides inaccurate answers to the research questions.

40.

If the expected value of information exceeds the costs of the research project, the project should be shelved.

41.

PERT is a network approach that divides the marketing research project into multiple components and estimates the time required for each activity.

42.

GANTT charts are activity flowcharts that schematically represent the activity, time, and personnel requirements of a research project.

43.

Although research approaches can be classified into one of three general categories of research, there is no significant difference between the categories.

44.

One of the research tactics is to translate the research objectives into questions that can be answered by the respondents and then into information requirements.

45.

Constraints, budgeting and scheduling activities ensure that the resources are used effectively and efficiently.

46.

Graphical evaluation and review techniques are essentially a first-generation PERT approach to scheduling, in which both the completion probabilities and activity costs to be built into a network representation are considered.

47.

The absence of structure in an exploratory research permits a thorough pursuit of interesting ideas and clues about the problem situation

48.

Data collection methods also vary depending on the managerial style and the culture of the organization

Multiple Choice 1.

The difference between primary and secondary data centers on a) who collected the data b) the variables the data describe c) why the data was collected d) the richness of the data e) the diversity of the data

Sources of information to develop hypotheses include a) previous research b) exploratory research specifically designed to come up with a hypothesis c) different academic fields such as psychology, sociology and marketing d) a manager’s past experience e) all of these

If brand preference data is collected instead of brand purchase data, the following error is said to be committed. a) surrogate information error b) population definition error c) non-response error d) measurement error e) none of the above

To find out the effect of price on sales of a particular brand, the most appropriate research design would be a) exploratory research b) causal research c) descriptive research d) primary research e) none of the above

Ensuring that the meaning of stress is understood in the same way across countries is called as a) construct equivalence b) measurement equivalence c) sample equivalence d) none of the above

Which of the following can be called exploratory research ? a) experiments b) observation c) case studies d) interviews

To find out if the automobile purchased is related to the buyer’s income, one would use a) descriptive research b) exploratory research c) causal research d) none of the above

A research proposal does not generally contain a) description of the research design b) definition of the problem c) expected results d) all of the above

Exploratory research is used 1. when there is little prior knowledge to work from. 2. to gain insight into the general nature of a problem. 3. to identify the relevant variables and possible decision alternatives. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 1 and 2

10.

Descriptive research can be defined as a. a research approach which is used when a researcher needs general insights into a problem. b. an approach to determine cause-and-effect relationships. c. a snapshot of some aspect of the marketing environment at a particular point in time. d. an approach which isolates all causal factors. e. none of the above.

11.

A causal approach should be used when

1. there exists a knowledge of the research problem, the decision alternatives, and the relevant variables. 2. only speculative hypotheses exist. 3. the research methods can be highly flexible. 4. the researcher must show that one variable determines the values of another variable. a. 1 b. 2 c. 3 d. 4 e. 1 and 4 12.

One of the dangers of failing to do exploratory research is that of a. not being able to develop measurement scales. b. not being able to make specific predictions. c. researching the wrong hypothesis. d. being unable to determine a causal relationship. e. being unable to eliminate causal factors.

13.

Descriptive research is routinely used to discover all of the following except a. how a product should be distributed. b. new ideas and hypotheses. c. how a product should be changed. d. the target segment for a product. e. All of these are discovered by descriptive research.

14.

Which research approach(es) is/are more often guided by an initial hypothesis? a. Exploratory research b. Descriptive research c. Causal research d. Exploratory and descriptive research e. Descriptive and causal research

15.

Of the following research questions, which could not be answered by exploratory research? 1. How does revenue vary with the size of our company's sales staff? 2. What do customers expect from our product? 3. What are the alternative means of transportation for urban commuters? 4. Are customers satisfied with our product? a. 1 b. 2 c. 3 d. 4 e. 1 and 3

16.

All of the following are sources of secondary data except a. syndicated data. b. the existing company information system. c. a questionnaire designed to address the research objective. d. government sources, such as the Census Bureau. e. trade association studies and reports.

17.

Which of the following are not types of qualitative research?

a. Mail questionnaires from members of a consumer panel b. Field experiments c. Depth interviews d. Focus-group e. Mail questionnaires from members of a consumer panel and field experiments 18.

Rainbow Airlines has experienced a continuing and unexplained decline in the number of tickets sold on its major routes from New York to San Francisco. You have been asked to give the Senior VicePresident of the Marketing Division a report on the problem and to Outline alternative courses of action for the airline to take. How would you start? a. Descriptive research b. A survey of Rainbow Airlines' passengers c. A survey of passengers who patronize competing airlines d. Exploratory research e. Causal research

19.

Good reasons to use an outside research supplier may include all of the following except a. lower cost. b. lack of confidence in the internal research staff. c. special facilities or expertise. d. political considerations in the case of an internal policy dispute. e. the need for high credibility because the research findings will be used in legal proceedings.

20.

The sampling plan may describe all of the following except a. how demographic questions will be cross-tabulated. b. how a subgroup of the population of interest will be chosen. c. the size of the sample. d. how to minimize the effects of nonresponse by sample members. e. what kind of sample to use, probability or nonprobability.

21.

To" anticipate the analysis of data" means that a researcher should a. write down all of his or her expectations and report those findings which confirm a priori beliefs. b. plan how each of the data items is to be analyzed. c. expect that the data may sometimes be more interesting than useful. d. expect that occasionally the data will not successfully test the hypotheses. e. do all of these

22.

A detailed cost-benefit analysis of a research study may conclude that 1. the project is not cost effective and should be terminated. 2. a smaller sample should be used. 3. a different methodology should be used. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. only 1 or 2

23.

The research proposal may

a. influence the decision to find a proposed study. b. record the agreement between a manager and a researcher. c. serve to reduce misunderstanding. d. summarize the major decisions in the research process. e. do all of these. 24.

____________ occurs when an inappropriate population is chosen to obtain data for the research study. a. Selection error b. Sampling frame error c. Population specification error d. Nonprobability error e. Population error

25.

Sampling error is a. the difference between a true measure obtained from the population and a measure obtained from a sample representing the population. b. the difference between the expected measure of the population and a true measure obtained from the population. c. the difference between the expected measure of the sample and a true measure obtained from the sample in a previous study. d. a researcher induced error. e. none of the above.

26.

If an interviewer fabricates the responses to a survey, it induces a(n) __________ error. a. recording b. interference c. interviewer d. questioning e. personnel

27.

The probability based scheduling approach that recognizes and measures the uncertainty of the project completion times is the a. GANTT chart. b. PERT chart. c. Critical Path Method. d. GERT chart. e. none of the above.

28.

The issue(s) critical to international research design is/are 1. determining information requirements. 2. achieving equivalence of measurement, construct, and sample. 3. determining the unit of analysis. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 1 and 2 only

29.

A ___________ describes a plan for conducting and controlling a research project a. action plan b. research proposal. c. Critical Path Method. d. research objective. e. control plan.

30.

Global strategic decisions concern

a. issues pertaining to foreign market selection, market and mode of entry b. micro-level implementation issues in global markets c. Critical Path Method for global decisions d. research objective. e. elimination of error in entering foreign markets 31.

Tactical decisions concern a. issues pertaining to foreign market selection, market and mode of entry b. micro-level implementation issues in global markets c. Critical Path Method for global decisions d. research objective. e. elimination of error in entering foreign markets

32.

Sources of secondary data are:

a. the existing company information system b. databanks of other organizations c. syndicated data sources d. all of the above e. none of the above

Test Bank Chapter 5 Secondary Sources of Marketing Data

True-False 1.

Information is data which answer the specific questions of the decision maker.

The researcher who is not familiar with basic sources of marketing data may lose time in searching for nonexistent data or in collecting data which are already available.

Sales reports are an example of input data.

Budgets are an outcome of an internal accounting and control system and are termed outcome data.

One of the problems in applying accounting data to marketing information needs is that unit breakdown, such as geographic areas or product types, may differ.

A consistent advantage to data found in internal records is that of high reliability.

Data which are relevant, complete, and inaccessible are of no use to a researcher.

Complaint letters are an important source of customer feedback because those who take the time to write are representative of the entire population of consumers for a particular product.

Data on orders received or invoices billed should be used carefully. These figures will not always correspond to sales.

10.

The most popular source of marketing data is secondary data. Even when primary data must be collected, it is good practice for a researcher to consult an appropriate secondary source.

11.

After a survey has been completed, the demographic distribution of respondents in the sample can always be compared to census data.

12.

Basic rules to guide the search for secondary sources are: (1) to start with the specific and go to the general and, (2) to make use of all available expertise.

13.

Trade association publications should be avoided because the source of their information is biased.

14.

A directory or compilation is an intermediate source which gives a researcher access to an original source. An example of this is the "Statistical Abstract of the United States," which contains sections from the census and other agency data.

15.

The dangers facing the user of computer search methods are those of missing important information and being overwhelmed by irrelevant data.

16.

The primary advantage to computer retrieval methods is that crossreferenced searching is possible. This type of search is nearly impossible without the computer.

17.

A researcher should be extremely careful when using data from sources that do not describe the data collection methodology.

18.

Because there is often a time lag between data collection and publication, the researcher should pay careful attention to when the data are collected.

19.

The researcher should be aware of the fact that two sources using different methodologies cannot be expected to arrive at the same kind of data.

20.

The United States Bureau of Census does censuses on business, manufacturing, agriculture, population, housing, mineral industries, transportation, and government at different time intervals.

21.

From smallest to largest, the units of census data are the city block, the block group, and the census tract. Census tracts are grouped in urban areas to form Standard Metropolitan Statistical Areas.

22.

The Standard Industrial Classification System is a uniform numbering system for classifying establishments according to their economic activities.

23.

The PRIZM system for market cluster analysis is based on the fact that people of widely varying sociological backgrounds may be found within a single geographical area.

24.

Source databases provide complete text or numeric information in contrast to the indices and summaries contained in the reference database.

25.

The Standard Industrial Classification System is a uniform system of classifying establishments based on the types of goods and services they provide.

26.

Secondary data is data specified, collected, and recorded by someone other than the user.

27.

Primary data can be a valuable source of new ideas which can be explored later through primary research.

28.

A customer database is raw information on the customer that can be sorted and enhanced to produce useful information.

29.

The main limitation of the reference databases is the reliance on the accuracy of the abstract author.

30.

Census is a mandatory enumeration conducted by the government of the important facts about their population and the economic and social environments.

31.

In some cases secondary data can be more accurate than primary data

32.

Complaint letters are also used as sources of data on product quality and service problems

Multiple Choice 1.

The United States Bureau of Census conducts their Census of Population and Housing every ______ years. a) 1 b) 2 c) 5 d) 10 e) odd-numbered

Compared to primary data, the two advantages of secondary data are they a) can be gathered quickly and inexpensively b) are generally more objective and accurate c) are generally more objective and accurate d) are always internal to the firm and more relevant to the firm’s problems e) none of the above

Data that were initially generated for a purpose other than solving the problem at hand are termed

a) b) c) d) e) 4.

exploratory data survey data descriptive data qualitative data secondary data

As the manager of a fast food restaurant, you need information on brand switching behavior. Which source do you use ? a) A restaurant audit b) A Census of Business c) A mail diary panel d) A restaurant audit and a Census of Business e) None of the above

Secondary data cannot be used for which of the following ? a) interpret primary data b) demonstrate causal relationship c) identify problem d) all of the above

Which of the following is not used to evaluate the usefulness of secondary data ? a) content of data b) purpose for which the data is collected c) extent to which it agrees with the primary data d) source of data

Which one of the following provides a standard source of recurring data ? a) guides b) census c) directories d) indexes

Which of the following is the ideal method to collect data on lifestyles and psychographics? a) census data b) surveys c) diary panels d) scanner data

Which of the following sources of data should be looked first? a) primary data b) external secondary data c) internal secondary data d) census data

10.

Internal records have all of the following characteristics except a. ready availability. b. absolute reliability. c. relevance to the organization's marketing environment. d. accessibility on a continuing basis. e. all of these are characteristic of internal records.

11.

Which of the following statements about internal records is false? a. Internal records provide data on marketing inputs and outputs. b. The data in internal records are intended to satisfy many different information needs and may be inappropriate for marketing decisions. c. The time frames in which variables such as sales are measured will always correspond to those used in external data. d. Records of sales staff activity may be exaggerated. e. Sales invoices may not always correspond to actual sales.

12.

Which of the following is not true about complaint letters? a. Complaint letters are sources of data on product quality and service problems. b. Complaint letters represent an incomplete and distorted picture. c. People who write complaint letters are likely to be highly educated and articulate. d. Complaint letters are the most commonly used method for consumers to resolve a dissatisfaction. e. All of these are true about complaint letters.

13.

Secondary data may do all of the following except a. eliminate the need for primary data whenever the required data are specific and topical. b. expand a researcher's understanding of a problem. c. suggest research design alternatives. d. provide a means of validating a sample. e. secondary data do all of these.

14.

Which of the following can be used in locating secondary sources? a. authorities. b. directories. c. computer-retrievable databases. d. a good reference librarian. e. all of these should be used in locating secondary sources.

15.

A researcher should keep in mind that the use of the computerretrieval method is limited by a. the slow pace of display after the actual computer search has been done. b. inaccessibility to worldwide information services. c. the fact that information is always available in published form before it is put on a computer. d. its dependence on the accuracy of an abstract or citation author. e. all of these.

16.

In using secondary sources, it is important for a researcher to know 1. the resources and reputation of the organization reporting the data. 2. whether the data were collected to serve the interests of a particular group. 3. the methodology used to collect the data. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 1 and 2

17.

All of the following are units used to aggregate census data except the a. Standard Metropolitan Statistical Area. b. block group. c. suburban tract. d. block. e. all of these are used to aggregate census data.

18.

Syndicated services are not able to provide information on products a. through retailers, as provided by store audits. b. searched for by customers, as provided by customer complaints. c. through wholesalers, as provided by warehouse withdrawal services. d. purchased by consumers, as provided by consumer purchase panels. e. none of the above.

19.

Data that has been specified, collected, and recorded by someone other than the user are known as a. historical data. b. external data. c. primary data. d. secondary data. e. tertiary data.

20.

Which one of the following is not an external data source? a. Government reports b. Trade association journals c. Companies' annual reports d. Newspapers e. Customer feedback

21.

A uniform numbering system for classifying establishments according to the types of goods and services they provide is a. Market Identifiers. b. Standard Industrial Classification. c. Compustat services. d. Valueline database. e. Economic Information System.

22.

A___________ is a service that identifies groups of consumers who share demographic and lifestyle characteristics. a. PRIZM b. Dun's market identifier c. Standard Industrial Classification d. Economic Information System e. Arbitron Panel

23.

The major use(s) of secondary data in international marketing research is 1. selecting countries that merit in-depth investigation. 2. determining the initial estimate of demand potential. 3. monitoring environmental changes. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

Test Bank Chapter 6

Standardized Sources of Marketing Data

True-False 1.

Syndicated marketing data sources serve only a few large customers who have a need for specific data on a continuing basis.

The largest syndicated research services supply consumer product companies with data on distribution and sales.

Audit data are collected by an audit team that visits an ever-changing sample of stores at regular intervals and does a physical count of inventory.

It is typical of retail audits that the sample is weighted toward high volume stores.

Sales are computed from audit data by adding beginning inventory to deliveries and subtracting ending inventory.

Store audit data are used over time to assess the impact of marketing activities, such as a price change.

For infrequently purchased products, a large sample of outlets is less important than bi-monthly audit data.

Warehouse withdrawal services are one source of point-of-sale information.

A problem with the home audit is that the auditor is unable to collect information on products that have been totally consumed or thrown out by the panel member.

10.

The mail diary method is primarily used in the United States because it has been shown to produce superior market share data.

11.

One benefit of scanner data is enhanced accuracy of the data.

12.

Behavior Scan maintains a household panel in each of several cities who record their purchases in a diary.

13.

Behavior Scan can control what TV advertising is seen by each panel member.

14.

Behavior Scan can control purchases of new products by monitoring purchases.

15.

In an MDSS, the database is stored in disaggregated form so it can analyze by product item, sales district, trade account, etc.

16.

In an MDSS, models are used as "what if" questions.

17.

A reference database describes compilations and directories of secondary data sources.

18.

A source database refers users to articles and news contained in other sources.

19.

Expert systems are being created by suppliers of scanner data in order to provide more utility to the managers and to aid in their decision process.

20.

Arbitron maintains only regional radio and T.V. panels.

21.

The Starch readership service measures the readership of advertisements in magazines and newspapers.

22.

Starch scores can be used to measure product sales and market share.

23.

A continuous panel purchase is not useful in conducting quasiexperiments.

24.

"Mortality rates" occur in consumer panels when the consumers refuse to participate in the exercise.

25.

"Selection bias" in consumer panels arises out of the refusal of consumers to participate in the panel, thereby resulting in lack of representativeness.

26.

"Testing effects" in consumer panels occur when new members report unusual levels of purchasing due to the novelty of the reporting responsibility.

27.

Scanner data is marked by the inability to study very short time periods of sales activity.

28.

The advantage of single-source systems is that they can track purchases only at grocery stores and drug stores that are equipped with scanners.

Multiple Choice 1.

As the manager of a fast-food business, you need information on brand switching behavior. Which source would you use? a. A restaurant audit b. A Census of Business c. A mail diary panel d. A restaurant audit and a Census of Business e. All of these

Consumer panels make it possible to analyze all of the following except a. the characteristics of heavy buyers. b. brand switching rates. c. the effectiveness of the distribution network. d. cumulative market penetration. e. all of these can be analyzed using consumer panels.

Survey respondents have been found to 1. answer purchase questions in terms of their normal behavior. 2. exaggerate their rate of purchasing. 3. oversimplify brand switching behavior. 4. be more accurate sources of information than a continuous panel. a. 1 b. 2 c. 3 d. 4 e. 2 and 3

The tendency for new members of a panel to report unusual levels of purchase is the result of a. testing effects. b. mortality. c. selection bias. d. probability sampling. e. none of the above.

Which of the following is not true of continuous panels? 1. They are usually a representative sample of the population. 2. Panel members who drop out usually differ from the members of the panel who remain. 3. They provide a vehicle for testing the effects of changes in price or advertising copy. 4. They have an advantage of accuracy over interview methods. a. 1 b. 2 c. 3 d. 4 e. 1 and 2

Which of the following is true about computer scanner checkouts? 1. They record purchases by passing them over a laser scanner. 2. One of their advantages to the researcher is the ability to look at data over short periods of time. 3. Consumers' purchase data can be instantly accessed. a. 1 b. 2 c. 3 d. 2 and 3 e. 1, 2, and 3

A large grocery product manufacturer has experienced declining sales of canned beans. You are asked to investigate whether the decline is due to the pricing of its product relative to that of the competition. What data source would you use? a. A warehouse withdrawal service b. An SIC index c. A retail store audit d. A mail diary panel e. A home audit panel

Store audits may give information on all of the following except the a. distribution of products. b. sales of products. c. profitability of products. d. media advertising for the total market and for major brands. e. none of the above.

10.

Information on special displays, in-store advertising, and shelf facings can be obtained through a. a Census of Business. b. surveying wholesalers. c. computer scanner checkouts. d. a retail store audit. e. none of the above.

11.

One drawback to warehouse withdrawal audits is that the data do not cover 1. which brands are being distributed to which stores. 2. the shelf location of each brand. 3. point-of-sale displays. 4. the number of food operators carrying the product. a. 1 b. 2 c. 3 d. 4 e. 1, 2, and 3 only

12.

Which one of the following is not an expert system based on scanner data services? a. Spotlight b. Sales advisor c. Promotion simulator d. Sales partner e. Economic Information System

13.

___________ occurs in choosing consumer panels because of the high rates of refusal and the resulting lack of representativeness. a. Mortality effects b. Testing effects c. Selection bias d. Response bias e. None of the above

14.

The standardized source of marketing data that deals with print media is a. Starch scores. b. Arbitron information on demand. c. NTI. d. Simmons media. e. none of the above.

15.

Which of the following is not an application of the standardized data source? a. Measuring promotion effectiveness b. Measuring ad exposure and effectiveness c. Measuring product sales and market shares d. Estimation and evaluation of models e. Identifying newer markets

16.

Continuous panels are beneficial to researchers because a) the researcher can study changes in behavior b) the researcher can collect buyer characteristics and look to market segment behavior c) not only do you have time series data, but it is not aggregated over all individuals so a single individual (or family) can be studied d) all of the above e) none of the above

17.

The tendency for new members of a panel to report unusual levels of purchase is the result of a) testing effects b) mortality c) selection bias d) probability sampling e) none of the above

18.

Diary panels are not used for a) estimating market share b) forecasting sales c) assessing causal relationships d) assessing brand loyalty e) measuring promotional effectiveness

19.

Which of the following is not true about diary panels? a) panel members provides higher quality data than sample respondents b) panel members are representative of the population c) panel members are subject to response bias d) panel members provide longitudinal data e) none of the above

20.

Selection bias occurs because a) of the high rates of refusal and the resulting lack of representativeness. b) of the tendency for new panel members to report unusual levels of purchasing c) panel members are representative of the population d) panel members provide longitudinal data e) panel members provides higher quality data than sample respondents

21.

Testing Effects occur because a) of the high rates of refusal and the resulting lack of representativeness. b) of the tendency for new panel members to report unusual levels of purchasing c) panel members are representative of the population d) panel members provide longitudinal data e) panel members provides higher quality data than sample

22.

The starch surveys employ the ____________ to asses a particular ad’s effectiveness a) people meter b) Starch method c) nielson method d) recognition method e) Arbitron method

Test Bank CHAPTER 7 Marketing Research on the Internet True-False 1.

Some people believe that quality information is hard to find and that the Internet is too slow.

No intermediaries are a big disadvantage of E-mail surveys.

The main advantage of the internet in marketing research is its broad scope and comparably low cost.

There has been no significant change in internet usage among the elderly population in recent times.

The interactive element of online advertising enables advertisers to develop a one-to-one F

relationship with prospective and existing clients. 6.

Contextual advertisements refers to advertisements displayed at the top of the search Results.

It is possible to determine the degree of awareness of an online advertising campaign by

comparing segments of the audience. 8.

An actively recruited online panel involves an open pool of participants.

Opt-ins typically lead to lower response rates in online marketing research

10.

While personalization is preferred by most consumers, the privacy fears associated with that continues to grow.

11.

With online tracking , it is possible to understand viewer awareness of advertisement

12.

Google analytics allows tracking of site visitors from all sources including search engines, advertising, emails, and digital links

Multiple Choice

A limitation with advertising on the World Wide Web is a) the advertising costs are very high b) difficult to measure exposure c) only software engineers read the advertisements d) none of the above

The advantage of Internet survey is a) greater speed of delivering questionnaires b) cheaper than regular mail c) reaches the potential respondent directly d) all the above

Which of the following is not true about online tracking?

provides a means to test viewers’ advertisement recognition by providing visual cues b) yields faster results c) helps to determine the degree of awareness of a campaign by comparing segments of the audience d) always provides accurate audience measurements a)

True measure of effectiveness of ads on the WWW is measured by a) AdCount b) “Click-through” rates c) Number of Web cruisers seeing the ad d) none of the above

Which one of the following is not a search engine on the Web ? a) Magellan b) Alta Vista c) Excite d) AdCount e) All of the above

To prevent outsiders from accessing the intranet, companies use a) passwords b) Firewalls c) Local Area Network d) none of the above

The advantage (s) of online panels is/are a) possibility of covering a wide audience b) the ability to conduct international research from one place c) the viability of electronic monitoring of respondents through log file analyses d) All of the above

Cyberatlas provides information on a) Internet addresses b) WWW markets on advertising, finance and search services c) world maps d) E-mail addresses

A possible bias with on-line research is that a) it is slow b) it draws responses mostly from trend leaders c) does not have a wide reach d) only computer professionals respond

10.

Factors that can have an influence on the response rates of online panels are

a) b) c) d) 11.

a Provide visual cues to researchers Slow and time consuming Makes it difficult for researchers to understand the degree of awareness of an advertisement All of the above

Online tracking mechanisms

a) b) c) d) 12.

the length of the online survey the type of equipments and resources available to the respondents the amount and nature of incentives offered. All of the above

Using Google analytics, marketers can strengthen their marketing activities by

a) b) c) d)

Targeting consumers Managing online advertisement Understanding regional distribution of visitors All of the above

Test Bank Chapter 8

Information Collection: Qualitative and Observational Methods

True-False 1.

Qualitative research methods are generally less structured and more intensive than survey methods.

Individual in-depth interviews are unrestricted by a specific set of topics to be covered.

In nondirective interviewing, an interviewer lets the respondent determine the direction of the questioning without interfering.

Semi structured interviewing techniques allow for the follow-up of unexpected information or attitudes.

When doing in-depth interviews, a researcher should not ask respondents to recommend other knowledgeable sources because such an unrepresentative sample may bias the results of the research.

A focus group moderator must often discourage group interaction in the interest of staying on a subject.

It is believed that the stimulation of the group situation in a focus group makes new ideas and more meaningful answers possible.

To conduct a successful focus group, it is necessary to translate the research purpose into a set of questions that will be asked of the research results.

Focus groups should always include respondents from all age groups in order to provide various points of view.

10.

When the researcher is interested in two market segments, such as working and nonworking women, a good rule of thumb is to limit a focus group series to two groups.

11.

The order of discussion in a focus group goes from the specific to the general.

12.

In a series of focus groups that is addressing a single research purpose, there should be no change in the questions raised by the moderator. This will ensure that the answers are comparable across groups.

13.

A member of a focus group will respond with more meaningful answers if he or she feels pressured by other group members.

14.

The moderator of a focus group should ensure that all participants are able to discuss their opinions and feelings. This may mean encouraging those who are quiet and controlling those members who might dominate the discussion.

15.

A focus group moderator should avoid the use of jargon or technical terms when dealing with an unsophisticated group.

16.

When looking at the results of a series of focus groups, any analyst can find comments which represent his or her perception of the research issue.

17.

It is a characteristic of group interaction that new ideas will be readily accepted.

18.

In projective techniques, the more ambiguous the object presented to a respondent, the more the respondent has to project himself or herself.

19.

Projective techniques are used when it is believed that respondents cannot or will not answer meaningfully to direct questions about the reasons for their behavior or attitudes.

20.

Third-person techniques can be used to overcome a respondent's tendency to give socially acceptable answers on some issues.

21.

When third-person techniques are used, a respondent will say that his likes and dislikes are the same as his neighbor's.

22.

Observational methods explore the reason behind past behavior.

23.

Monitoring trade journals on executives' desks is an example of an observational method.

24.

Direct observation methods can be structured or unstructured. Structured observation involves greater observer subjectivity.

25.

Contrived observation involves questions of ethics which are still unresolved.

26.

Observational methods can be used effectively to record attitudes and intentions.

27.

Direct observation can be used to gain insights into search behavior.

28.

The results of qualitative methods should not be projected to the population.

29.

The small samples used in focus group research may be relied upon for decision making when the samples are carefully chosen to be representative of the population.

30.

A focus group is the process of obtaining possible ideas/solutions to a marketing problem from a group of respondents through discussions.

31.

Clinical focus groups are qualitative research conducted on the premise that a person's true motivations and feelings are subconscious in nature.

32.

The major limitation of an experiencing focus group is that it does not allow the researcher to experience the emotional framework in which the product is being used.

33.

Exploratory focus groups can also be used to generate hypotheses for testing of concepts for future research.

34.

In focus groups, a relatively large amount of information can be obtained in a short period of time at a relatively small cost as compared to individual in-depth interviewing.

35.

While researching a sensitive subject, it is better to opt for in-depth interviews rather than focus groups as the respondents will be more likely to talk.

36.

Observational methods can be used to provide information on past behavior.

37.

Contrived observation is conducted on the premise that response of the person placed in a "contrived observation situation" will reveal some aspects of the underlying beliefs, attitudes, and motives.

38.

Content analysis is used to analyze written material into meaningful units using carefully applied rules.

39.

Observation methods can be used to observe motives, attitudes, or intentions.

40.

Symbolic analysis attempts to analyze the symbolic meaning of objects by comparing them with their opposites.

41.

Strategically designed and well executed telephone interviews are better than focus groups when information is needed from business decision-makers.

42.

Interviewer should establish a good rapport with the interviewee in order to obtain free flow of information.

43.

Conducting telephonic interviews costs a lot of time and money

44.

Interviewers must be well briefed, about the interviewee’s company, the research objective and terminologies likely to be encountered, before the interview.

45.

During the interview, interviewers can express their personal judgments.

46.

Using a suitable software to capture interview responses in verbatim enhances credibility.

47.

Interacting with customers on an individual basis is more likely to elicit more detailed and useful information than in a focus group setting.

48.

The most important step in phone interviews is capturing the data in a software program that codes and tabulates responses from open-ended questions.

49.

The interviewers should be well trained to listen and record responses in verbatim.

50.

Telephonic interviews do not require experienced and intelligent interviewers

Multiple Choice 1.

The Thematic Appreciation Test (TAT) is a) an example of word associated technique b) an example of third person technique c) an example of a completion test d) an example of picture interpretation e) an example of none of the above

A small convenience sample in which there is an interviewer who keeps the discussion centered on a few predetermined topics is known as a a) projective interview b) omnibus interview c) focus group interview d) nondirective interview e) none of the above

Cameras and traffic counters are used for a) case studies b) focus groups c) projective techniques d) observational methods e) quantitative analysis of data

The dominant mode of interviewing within the last decade is a) personal interviewing b) telephone interviewing c) mail survey d) focus group studies e) there has been no one dominant method

If a researcher is faced with a sample that is widely dispersed geographically and is limited in budget, the most appropriate survey method would be a) telephone interview b) mail interview c) personal interview d) focus group e) none of the above Which of the survey methods is least restrictive in terms of the type and form of questions that can be asked?

a) b) c) d) e)

telephone interview mail interview personal interview focus group none of the above

Most personal interviews are now conducted a) in homes b) in offices c) in malls d) with church groups e) with large student classes

Longitudinal data are a) standard or identical data collected at periodic intervals from the same study objects each time period b) standard or identical data collected at periodic intervals from different study objects each time period c) nonstandard or different data collected at periodic intervals from the same study objects each time period d) nonstandard or different data collected at periodic intervals from different study objects each time period

Which of the following is not an approach used to collect nonovert primary data ? a) retail store audit b) “garbage research” c) randomized response technique d) psychogalvanometers e) none of the above

10.

Which of the following statements regarding structure in overt data collection is true ? d a) as data collection becomes more structured, data analysis becomes more time consuming b) as more structured approaches are used, the research project becomes more costly c) sophisticated statistical analysis becomes more useful as structure declines d) as data collection becomes more structured, the research conclusions become more generalized

11.

A major method of descriptive research is a) focus groups b) experiments c) depth of interviews d) observation

12.

The easiest way to conduct a taste test for a soft drink is a) interview people at home b) interview them over telephone c) intercept people in the mall d) none of the above

13.

Which of the following is an acceptable use of qualitative research? a. Pretesting structured questionnaires b. Learning the vocabulary of consumers c. Educating the researcher to an unfamiliar environment d. Suggesting hypotheses to be tested in subsequent research e. All of these are acceptable uses of qualitative research.

14.

Nondirective interviewing 1. is especially effective with busy executives. 2. attempts to cover a specific list of topics or sub-areas. 3. gives the respondent maximum freedom to respond within the bounds of the topics of interest to the interviewer. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

15.

Semistructured interviews a. give the respondent maximum freedom to respond within the bounds of the topics of interest to the interviewer. b. attempt to cover a specific list of topics or sub-areas. c. depend on the knowledge of the respondent and not on the skill of the interviewer. d. cannot effectively cover technical or involved subjects. e. none of the above.

16.

Planning the agenda, recruiting, moderating, analyzing, and interpreting are all steps to conducting a. projective techniques. b. Thematic Apperception Tests. c. focus group research. d. nondirective interviewing. e. Thematic Apperception Tests and focus group research.

17.

The moderator of a focus group should a. try to keep the discussion as close to a question-answer session as possible. b. demonstrate his or her personal biases. c. encourage natural group leaders. d. avoid demonstrating an interest in the views of each participant. e. none of the above.

18.

The following are all examples of projective techniques except a. picture interpretation. b. direct observation. c. role playing. d. third-person techniques. e. word association.

19.

The researcher should use projective techniques when a respondent 1. refuses to answer a question. 2. is unaware of his or her own feelings. 3. is afraid of appearing to be critical. a. 1 b. 2 c. 3 d. 2 and 3 e. 1, 2, and 3

20.

Which of the following is not true about projective techniques? a. They are used in clinical motivation research studies. b. They present the respondent with an ambiguous, unstructured object, activity, or person. c. They require that an interviewer be able to project himself or herself into the respondent's situation. d. They are often used in conjunction with individual nondirective interviews. e. None of the above are true.

21.

Which of the following is not true about a case study? 1. It involves the use of historical data, which must be collected from a single source over many years. 2. It may be the only way to understand a complicated situation. 3. It is a source of research hypotheses. a. 1 b. 2 c. 3 d. 2 and 3 e. None of the above are true.

22.

Observation methods a. may supplement other research methods. b. may be the only way to collect the needed data. c. may be the cheapest way to collect behavior data. d. may be the most accurate way to collect behavior data. e. all of these.

23.

Behavior recording devices include all of the following except a. a pupilometer. b. a psychologalvonometer. c. an audimeter. d. a TAT. e. an eye movement recorder.

24.

A cereal manufacturer wants to know how effective its packaging is in gaining attention. Which research method is most appropriate? a. Direct observation b. Physical trace measurements c. Role playing d. Picture interpretation e. None of the above

25.

____________ focus groups are used on the premise that a person's true motivations and feelings are subconscious in nature. a. Exploratory b. Experiencing c. Clinical d. Traditional e. Electronic

26.

The moderator's required skill level is the highest in a(n) a. clinical focus group. b. exploratory focus group. c. experiencing focus group. d. traditional focus group. e. electronic focus group.

27.

A(n) ___________ focus group enables the researcher to experience the emotional framework in which the product is being used. a. exploratory b. experiencing c. clinical d. traditional e. electronic

28.

Which one of the following statements does not represent a trend in the focus group? a. Telephone focus groups have emerged recently. b. Two level observation areas are being built around the conference room to provide an unobstructed view of all the participants. c. Two way focus groups are being used wherein one target group listens and another group learns from a related group. d. Live focus groups are broadcast by video transmission from a nationwide network of independently owned focus facilities. e. The quality of focus groups is fast diminishing.

29.

While conducting a telephonic interview, the interviewer can do all of the following except a. Enthuse interviewees with a personal rapport and enable them to talk freely b. Sustain the interest of the interviewees c. Express personal judgments d. Ask open-ended questions e. listen and record responses in verbatim

30.

Which of the following information should the interviewer posses prior to conducting the interview? a. Background details of the company being studied b. Research objective (s) c. Terminologies likely to be encountered d. All of the above

Test Bank Chapter 9: Information From Respondents: Issues in Data Collection

True-False 1.

A researcher who is doing a survey has the advantage of being able to collect a great deal of data about an individual respondent at one time.

Survey data only cover knowledge, behavior, and classification variables. A survey is inadequate for recording a respondent's attitudes.

People who refuse to be interviewed are likely to be different in important respects from those who agree to participate. For this reason, a high rate of refusal may be a major source of survey error.

One of the reasons which motivates people to answer survey questions is the opportunity for social interaction.

In general, a researcher may assume that one person can speak for all members of a household.

A researcher should be aware that, when in doubt, a respondent will give too little rather than too much information about past behavior.

One of the reasons people refuse to participate in surveys is fear of the motives of an interviewer or of the uses to which the data will be put.

There is consistent evidence that people's willingness to answer survey questions is related to their belief that market research studies benefit the public.

Respondents who answer questions to which they do not know the answers can be classified as basically deceptive.

10.

Toward the end of a long interview, the accuracy of responses is likely to decline.

11.

Telephone survey is the least expense form of data collection.

12.

The length of the questionnaire is immaterial in any type of research.

13.

Open-ended questions are most suited for self-administered questionnaires.

14.

The reading and writing skills of the respondents and their motivation to cooperate are two salient considerations in choosing a mode of data collection.

15.

Group administered surveys are marked by poor response rates.

16.

One way to reduce nonresponse error is to try to interview respondents in ways that are less intrusive in their lives

17.

Respondent’s impression of the interviewer impacts interviewer error

Multiple Choice 1.

An interview conducted using a given list of questions asking third person questions is an example of

a) b) c) d) e)

structured direct interview structured indirect interview unstructured direct interview unstructured indirect interview none of the above

The homophily criterion states that a) communication is enhanced when the interviewer and the interviewee are, or perceive themselves to be, relatively similar b) a “home-like” environment is best suited for personal interviewing c) interviewers should be chosen with similar characteristics d) males are better discussion group leaders than females e) none of the above

How can the problem of interviewer bias be minimized? a) switching to an alternative mode of data collection b) increasing the sample size c) validating a certain percentage of completed interviews d) disguising the purpose of the research project e) none of the above

Which one of the following is not true of collecting data by telephone? a) virtually everyone can be reached b) cost is relatively low c) a good way to reach executives and other important people d) eliminates interviewer bias e) none of the above

The best way to improve the response rate of mail interviews is to a) offer an incentive b) pre-notify people of the survey c) use colored questionnaires d) use first class mail e) none of the above

Which of the following conditions must a researcher reasonably satisfy in order to get meaningful survey results? 1. The population has been correctly defined and the sample is representative of the population. 2. The respondents who are selected are willing to participate. 3. The respondents understand the interviewers' questions and the interviewers correctly record the questions. a. 1 b. 2 c. 3 d. 2 and 3 e. 1, 2, and 3

High refusal rates a. are more likely in personal interviewing than in a mail survey. b. are a major source of error, since those who refuse to participate are likely to differ in important respects from respondents. c. are beyond a researcher's control.

d. are not a problem in some surveys because those who refuse to participate can be replaced by cooperative respondents. e. none of the above. 8.

All of the following are sources of interviewer error except a. an interviewer who shares with a respondent basic characteristics, such as age and social class. b. an interviewer in a shopping center who selects a respondent on the basis of appearance. c. an interviewer who tailors the language of the questionnaire to fit an individual respondent's social characteristics. d. an interviewer who establishes rapport with a respondent by agreeing with the respondent's views. e. all of these are sources of interviewer error.

Inaccuracy in response refers to all of the following except a. distortion of answers to an income question. b. respondents who refuse to clarify their answers and who seem anxious to end the interview. c. respondents who forget how many times in the past month they have been shopping and who underestimate or overestimate the number of times when asked. d. a wife who makes educated guesses about her husband's reading habits. e. an interviewer who makes up survey answers to questions that seem silly and obvious.

10.

The best solution to minimizing interview errors involves a. the recruitment and selection of interviewers. b. the training of interviewers. c. the motivation of interviewers. d. the control of interviewers. e. all of these.

11.

The length of the questionnaire depends upon a. the research information sought. b. the quantity of information required. c. the availability of respondents. d. the budget allocated for the research study. e. the survey method employed.

12.

In the case of a self-administered questionnaire, it is better to opt for ____________ questions. a. open-ended b. close-ended c. visual d. long e. double-barreled

13.

Group administered surveys are characterized by a. no response rates. b. low response rates. c. high response rates. d. nonfeasibility. e. none of the above.

14.

___________ are the most costly form of data collection. a. Telephone interviews b. Mail surveys c. Personal interviews d. Fax surveys e. E-mail surveys

15.

The primary data collection method widely used in marketing research is the a. survey method. b. observation method. c. focus group method. d. experiment method. e. Thematic appreciation test.

16.

A phenotypic source of refusals refers to a. the indigenous characteristics of respondents (such as age, sex and occupation) b. characteristics of the data collection procedure (questions asked, length of the interview) c. respondents who refuse to clarify their answers and who seem anxious to end the interview. d. respondents who forget how many times in the past month they have been shopping and who underestimate or overestimate the number of times when asked. e. None of the above.

17.

A genotypic source of refusals refers to a. the indigenous characteristics of respondents (such as age, sex and occupation) b. characteristics of the data collection procedure (questions asked, length of the interview) c. respondents who refuse to clarify their answers and who seem anxious to end the interview. d. respondents who forget how many times in the past month they have been shopping and who underestimate or overestimate the number of times when asked. e. None of the above.

18.

Measuring behavior usually involves: a. what the respondents did or did not do b. where the action takes place c. the timing of action

d. the frequency or persistence of behavior e. all of the above

Test Bank CHAPTER 10 Information From Respondents: Survey Methods

True-False 1.

Aided recall questions always uncover more activity, and the information they provide is more accurate than that from unaided recall questions.

Respondents may have trouble giving meaningful answers to direct questions about their motivation.

Good rapport between an interviewer and a respondent is most likely established by common interests. Demographic characteristics are irrelevant.

Most of the sources of interviewer error are due to human nature and are beyond the control of the researcher.

The most common interviewer error is insufficient probing.

Interviewer cheating may occur in the respondent selection process or in filling out survey information.

Mail surveys are preferred when a large amount of information is required and when the questions are complex.

The cost per completed interview is generally higher for personal interviewing than for telephone interviewing.

Shopping center interviews are widely used because shoppers are representative of the general population.

10.

While telephone interviewing generally has the advantages of being faster and more economical, personal interviewing has fewer administrative problems.

11.

Mail surveys apparently produce more accurate responses, but only among those who complete the survey.

12.

The researcher who uses a mail survey does not have control over who answers the survey or the order in which the respondent reads the questions.

13.

The evidence shows that researchers can improve the response rate of a mail survey by personalizing the mail and promising the respondents’ anonymity.

14.

One method of coping with nonresponse to mail surveys is to assume that those who take longer to respond are much like nonrespondents and to extrapolate from this group the projected answers of nonrespondents.

15.

The major advantage of using a mail panel is a high response rate.

16.

The researcher does not have to deal with selection bias when using a mail panel because panel members are recruited to match the general population.

17.

Personal interviewing is characterized by the interaction of four entities: the researcher, the interviewer, the interviewee, and the research environment.

18.

The door-to-door method is not a viable method to do long detailed interviews.

19.

Self-administered questionnaires are used in countries that have a low telephone ownership.

20.

The purchase intercept technique combines both in-store observation and in-store interviewing to assess shopping behavior and the reasons behind that behavior.

21.

The major disadvantage of the purchase intercept technique is that it does not aid in buyer recall.

22.

The advantage of the purchase intercept technique is that it samples not only the purchasers but also those who influence the purchase decision.

23.

Each telephone number has an equal chance of being called in a systematic random digit dialing.

24.

The cost per completed interview is higher in a telephone interview as compared to a personal interview.

25.

A mail panel is a representative sample of people who have agreed to participate in a limited number of mail surveys each year.

26.

Personal interviewing is a dominant mode of data collection outside the United States.

27.

High illiteracy rates plague the effectiveness of mail surveys in the international marketing research context.

28.

In international industrial marketing research, use of telephone surveys may be more effective as compared to the international consumer research.

26.

Web-based surveys need continuous monitoring to determine its direction, appropriate use and long term effectiveness

30.

Web-based surveys are not fast and not efficient.

31.

Poor translation of well designed surveys to electronic versions is a problem in e-research

32.

People changing their email addresses very often does not create problems for well defined samples.

33.

e-research surveys have lower response rate, statistical value and validity.

34.

Personal interview is usually preferred when a large amount of information is required

35.

Screening questions increase fieldwork costs

36.

Telephone interviewing does not give rise to sample bias

37.

In international marketing research, telephone interviews are always advantageous

Multiple Choice 1.

Random digit dialing is designed to a) increase the response rate in telephone surveys b) reduce costs in telephone surveys c) increase the representativeness of the sample in the telephone interviews d) relate telephone sampling to street addresses rather than phone book numbers e) provide the best cost estimates from research suppliers

Which of the following is true about computer scanner check-outs ? i) They record purchases by passing them over a laser scanner ii) One of their advantages to the researcher is the ability to look at data over short periods of time iii) Consumers' purchase data can be instantly accessed a) i b) ii c) iii d) ii and iii e) I, ii and iii

A survey conducted by a market research service which can be purchased by any organization and customized by adding one or more questions of its choice is called a) audit b) non-profit study c) panel survey d) omnibus survey e) test market survey

High refusal rates a) are more likely in personal interviewing than in mail survey b) are a major source of error, since those who refuse to participate are likely to differ in important aspects from respondents are beyond a researcher’s control c) are not a problem in some surveys because those who refuse to participate can be replaced by cooperative respondents e) none of the above

Long and complicated questionnaires are generally best handled in a. telephone interviews. b. omnibus surveys. c. personal interviews. d. mail surveys. e. all of these.

Types of interviewing from most to least common are a. personal door-to-door, mail, and telephone. b. mail, personal door-to-door, and telephone. c. personal door-to-door, telephone, and mail. d. telephone, mail, and personal door-to-door. e. telephone, personal door-to-door, and mail.

Which of the following is true of telephone interviewing? a. It is characterized by flexibility and is preferred when a large amount of information is required. b. It dominates the personal interview with respect to speed, absence of administrative problems, and lower cost per completed interview. c. It is regularly scheduled, with questions provided by a number of clients. d. It does not give the researcher adequate control over a number of variables and may make it hard for the researcher to predict response rates. e. None of the above.

A researcher who must collect survey data as inexpensively as possible will probably choose a a. telephone interview. b. shopping center intercept interview. c. mail survey. d. personal door-to-door interview. e. telephone call, followed by a personal survey.

All of the following have been found to influence the response rate in mail surveys except a. follow-up letters. b. personalized mail. c. persuasive cover letters. d. providing stamped return envelopes. e. monetary incentives.

10.

A researcher who wants to survey a special sample of a small subgroup of the population would be advised to use a a. mail panel. b. telephone interview. c. personal door-to-door interview. d. shopping center intercept interview. e. none of the above.

11.

The method wherein the respondent is seated at a computer terminal and enters the responses is a. computer assisted telephone interviewing. b. computer interactive interviewing. c. computerized personal interview. d. computer assisted personal interview. e. none of the above.

12.

The interviewer reads the question and enters the responses. The computer skips ahead to the next appropriate question. This method is a. computer assisted telephone interviewing. b. computer interactive interviewing. c. computerized personal interview. d. computer assisted personal interview. e. none of the above.

13.

Self-administered questionnaires are useful for a. a captive audience. b. a highly educated audience. c. highly motivated individuals. d. highly knowledgeable subjects. e. none of the above.

14.

Which of the following statements is correct? a. The response rate of a mail panel is typically higher than that of a mail survey. b. The response rate of a mail panel is typically lower than that of a mail survey. c. The response rate of a mail panel is exactly the same as that of a mail survey. d. The response rate of a mail panel is roughly the same as that of a mail survey. e. None of the above

15.

The most popular primary data collection method in marketing research is a. observation. b. survey. c. focus group. d. experiment. e. none of the above.

16.

In door-to-door interviewing a. consumers are interviewed in person in their homes. b. business people are interviewed at their offices concerning industrial products or services. c. interviewers randomly approach respondents. d. no interviewer is involved e. none of the above.

17.

In executive interviewing a. consumers are interviewed in person in their homes. b. business people are interviewed at their offices concerning industrial products or services. c. interviewers randomly approach respondents in the malls. d. no interviewer is involved e. none of the above.

18.

In mall intercept surveys a. consumers are interviewed in person in their homes. b. business people are interviewed at their offices concerning industrial products or services. c. interviewers randomly approach respondents. d. no interviewer is involved e. none of the above.

19.

In self administered interviewing a. consumers are interviewed in person in their homes. b. business people are interviewed at their offices concerning industrial products or services. c. interviewers randomly approach respondents. d. no interviewer is involved e. none of the above.

20.

Purchase Intercept technique a. dominates the personal interview with respect to speed, absence of administrative problems, and lower cost per completed interview. b. It does not give the researcher adequate control over a number of variables and may make it hard for the researcher to predict response rates.. c. is to schedule personal interview surveys with questions provided by a number of clients. d. combines both in-store observation and in-store interviewing to asses shopping behavior. e. none of the above.

21.

Omnibus Surveys a. dominate the personal interview with respect to speed, absence of administrative problems, and lower cost per completed interview. b. does not give the researcher adequate control over a number of variables and may make it hard for the researcher to predict response rates.. e. are scheduled personal interview surveys with questions provided by a number of clients. f. combine both in-store observation and in-store interviewing to asses shopping behavior. b. none of the above.

22.

Validity of online surveys depends on a. Sample selection b. Survey design c. Response tendencies d. Technology challenges. e. All of the above

23.

The choice of sampling units in e-research is in the form of a. E-mail addresses b. Electronic subscription groups c. Heavily visited web sites d. All of the above

Test Bank CHAPTER 11 Attitude Measurement True- False 1.

Attitudes are mental states in individuals that structure the way they perceive their environment and guide the way they respond to it.

One of the reasons for measuring attitudes instead of behavior is that attitudes are believed to be precursors of behavior.

The three components of attitudes are the cognitive component, the affective component, and the liking component.

The cognitive component of an attitude represents a person's information about an object.

A similarity judgment belongs to the liking component of an attitude.

The affective component of an attitude summarizes a person's overall feelings toward an object.

The action or intentions component of an attitude refers to a person's expectations of future behavior toward an object.

The choice between different measurement scales, such as the ordinal or interval scale, depends on the personal preference of the researcher. The interpretation of data from the various scales is the same.

The classification of respondents by marital status is an example of an ordinal scale.

10.

The only arithmetic operation that a researcher can do with a nominal scale is a count of the number of responses in each category.

11.

An ordinal scale is obtained by ranking objects with regard to some common variable.

12.

The researcher who uses an ordinal scale can compute and interpret a mean score.

13.

The numbers used to rank objects on an interval scale represent unequal increments of the attributes being measured.

14.

A Fahrenheit temperature scale is an example of an interval scale.

15.

Money is an example of a ratio-scaled variable. Zero represents none of the variables, and $200 is twice as much as $100.

16.

If a researcher needs to make comparisons of absolute magnitude, a ratio scale must be used.

17.

With an interval scale, it is possible to say how many times greater or smaller one object is than another.

18.

The itemized category scale is the most widely used by marketing researchers.

19.

In general, a "don't know" category should be provided whenever respondents may have insufficient experience to make a meaningful judgment.

20.

Comparative scales do not have a common reference point.

21.

An even number of categories is preferred when a respondent can legitimately adopt a neutral position.

22.

The ranking task in rank-order scales corresponds to the process that a buyer goes through when making direct comparisons among available alternatives.

23.

Because consumers are used to dealing with a wide array of products, they have no trouble in ranking a dozen or more items.

24.

In paired comparisons, objects to be ranked are presented two at a time.

25.

One of the limitations of paired comparisons is that comparing two items at a time is seldom the way in which choices are made in the marketplace.

26.

Constant sum scales are used when many objects are involved because respondents find it easy to sum to one hundred.

27.

A Likert scale is also called a summated scale because the scores on individual items or statements are summed to produce a total score for each respondent.

28.

An assumption of the Likert scaling method is that each item or statement measures some aspect of a single common factor.

29.

The objective of item analysis in the Likert scaling method is to choose items that least discriminate among those with favorable and unfavorable attitudes.

30.

The maximum summated score for a 20-item Likert scale (five categories for each item) is 100.

31.

Profile analysis is also called the method of equal-appearing intervals because the objective is to obtain a unidimensional scale with interval properties.

32.

Thurstone scales are expensive and time-consuming to construct.

33.

"Sweet-not sweet" is an example of a bipolar semantic differential scale, while "sweet-sour" is an example of a monopolar scale.

34.

The midpoint on a bipolar semantic differential scale is a neutral point.

35.

In semantic differential scaling, negative or unfavorable poles are always placed on the right-hand side.

36.

One of the advantages of profile analysis is the ease of interpretation of the profiles of a large number of brands and many attributes.

37.

Stapel scales are especially suited to telephone interviewing.

38.

The development of semantic differential scales requires some exploratory work to make sure that all important attributes are included

39.

Associative scaling answers the question of how consumers make tradeoffs when there are several important dimensions and no alternative is clearly superior.

40.

Virtually any attitude scaling technique can be adapted to the measurement of any attitude component.

41.

Measurement can be defined as a standardized process of assigning numbers or other symbols to certain characteristics of the objects of interest according to pre-specified rules.

42.

Scaling is the process of creating a continuum on which objects are located according to the amount of the measured characteristic that the object possesses.

43.

Comparisons of absolute magnitude are possible with an interval scale.

44.

The advantage of a comparative scale is that the reference point is clear; hence, uniform reference point is possible.

45.

The advantage of a Q sort scaling is that a small number of groups or piles can be used to increase the reliability of the results.

46.

Thermometer scale is an example of a pictorial scale.

47.

Profile analysis is an application of the semantic differential scale.

48.

In continuous rating scales, the 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.

49.

An attitude measure is valid if it measures what it is supposed to measure.

50.

The ability to discriminate among meaningful differences in attitudes is sensitivity.

51.

Generalizability refers to the ease of scale administration and interpretation in different research settings and situations.

52.

Relevancy refers to how relevant the attitude measure is in the present study.

53.

Mathematically, reliability can be represented as the product of validity and relevancy.

Multiple Choice 1.

Dividing a fixed number of units among product categories to reflect relative preference is using a method called a) paired comparison scaling b) constant sum scaling c) Thurstone scaling d) interval scaling e) none of the above

A test-retest or parallel forms approach will help determine a) construct validity b) concurrent validity c) reliability d) face validity e) none of the above

When dealing with an interval scale such as Fahrenheit temperature, it is correct to say a) the difference between 90 and 30 is three times the difference between 40 and 20 b) 60 is three times as hot as 20 c) both a and b are correct d) none of the above are correct

If a scale is successful in measuring what it is supposed to measure, it is said to be a) robust b) generalizable c) reliable d) valid

Consider the following multi-attribute result from a comparison of two attributes of Toyota Camry

Attribute High gas mileage Low price

Importance of Attributes Max rating is 7 Min rating is 1

Rating of Attributes Max rating is 7 Min rating is 1

Selleck 7 3

Selleck 3 7

Redford 4 4

Redford 5 2

There is no ideal point since more is always viewed as better. If the model is correct, the overall rating of the two persons on the Camry should be : Selleck Redford a) 28 42 b) 20 15 c) 42 28 d) 42 29 e) 43 28

The basis of the multi-attribute model is a) the fact that a consumer tends to forget his/her experience with a brand b) a consumer uses about 100 different attributes when evaluating a product c) a consumer mainly uses price as a determinant of choice d) not all attributes of an object are equally important to each buyer e) a consumer’s choice is often independent of perception of competing products

Itemized category sales may include a) scales in which all of the categories are labeled or only the polar categories are labeled b) scales in which a judgement comparison is required c) scales in which the respondent is forced to make a choice or is given a neutral point d) scales in which the favorable and unfavorable categories are unbalanced e) all of the above

What component of the attitude would be measured by the following question ? “What airlines do you know of that fly from San Francisco to Denver ?” a) The cognitive component b) The affective component c) The liking component d) The action component e) None of the above

Measurement is the process of assigning or mapping __________ to ____________ according to certain prespecified and non degenerating _______ to represent _________ of the concepts. a) properties; concepts; rules; symbols b) symbols; concepts; rules; properties c) concepts; properties; rules; symbols d) symbols; rules; concepts; properties

10.

The scaling that permits most sophisticated statistical analysis is a) nominal scaling b) ordinal scaling c) interval scaling d) ratio scaling

11.

The criterion of whether the results can or cannot be verified is used when discriminating between a) monadic and comparative scaling b) interval and ratio scales c) judgmental and valuation scaling d) strong and weak data

12.

The question - “ Jane Fonda is the best actress I have ever seen “ strongly agree -------------strongly disagree is an example of a _______________ scale. a) Thurstone b) Guttman c) Semantic differential d) Likert e) Stapel

13.

How many paired comparisons are possible given 9 stimulus objects ? a) 54 b) 48 c) 36 d) 45

14.

Although unipolar rating scales avoid the antonym problem they still may possess the problem of a) ambiguity b) sufficiency c) neutrality d) currency

15.

The analytical procedure to be used on paired comparison data when more than two stimulus objects are involved is the a) Law of First Choices b) Law of Comparative Judgment c) Law of Significance Testing d) Law of Associated Properties

16.

Data on company’s actual sales would be scaled as ________ for analysis. a) nominal b) ordinal c) interval d) ratio e) any of the above

17.

Which one of the following is not a component of attitudes ? a) cognitive b) affective c) conative d) proactive

18.

Which one of the following is not a part of consumer knowledge? a) how much a product costs b) where to buy c) attitude towards a brand d) when to buy

19.

Which of the following is not a reason that market researchers are likely to use measurements of attitude in place of behavior? a. It is easier to ask attitude questions than to observe and interpret behavior. b. Attitude measurements can be used to diagnose or to explain issues of interest to researchers. c. It is always better to ask about attitudes than to observe actual behavior. d. Attitudes are believed to be the precursors of behavior. e. All of these are reasons for this.

20.

What component of attitude would be measured by the following question: "What airlines do you know of that fly from San Francisco to Denver?" a. The cognitive component b. The affective component c. The liking component d. The action component e. None of the above

21.

In nominal scales a. the researcher obtains a ranking of objects with respect to a common factor. b. the location of the zero point is fixed. c. it is possible to say how many times greater or smaller one object is than another. d. objects are assigned to mutually exclusive categories, but there is no necessary relationship between categories. e. none of the above.

22.

In ordinal scales a. there is no order implied between scale categories. b. arithmetic operations are limited to statistics such as the median or mode. c. arithmetic operations include the computation of the mean. d. it is possible to make comparisons of absolute magnitude. e. none of the above.

23.

Which of the following is true of interval scales? a. There is a fixed zero point, where zero denotes the absence of the attribute being measured. b. Arithmetic operations are limited to statistics such as the median or mode. c. The numbers used to rank objects represent equal increments of the attribute being measured. d. There is no necessary relationship between scale categories. e. None of the above.

24.

Ratio scales a. make possible the comparison of absolute magnitudes. b. do not have a fixed zero point. c. can only be used to calculate the median or mode. d. give no information on how much difference there is between objects. e. none of the above.

25.

Itemized category scales may include a. scales in which all of the categories are labeled or only the polar categories are labeled. b. scales in which a judgment comparison is required. c. scales in which the respondent is forced to make a choice or is given a neutral point. d. scales in which the favorable and unfavorable categories are unbalanced. e. all of these.

26.

The ideal number of scale categories is a. always an even number. b. two or three. c. an odd or even number, but always with a neutral point. d. more than nine. e. none of the above.

27.

Paired comparisons are an example of a. constant sum scales. b. Thurstone scales. c. the associative scaling technique. d. rank-order scales. e. none of the above.

28.

The most attractive feature of the constant sum scale is a. its use of bipolar and monopolar adjectives. b. its ability to accommodate a large number of objects or attributes. c. the quasi-interval nature of the scale. d. its suitability for telephone interviewing. e. none of the above.

29.

On a 20-item Likert scale, where "1" means "strongly unfavorable" and "5" means "strongly favorable," one respondent has a total score of 62 toward Brand Y. A researcher could conclude that a. the respondent has a better-than-average attitude toward Brand Y. b. the respondent has a positive attitude toward Brand Y because his score exceeds 50. c. the respondent has a negative attitude toward Brand Y because his score exceeds 50. d. the respondent's attitude is too hard to determine because his score of 62 is very close to 50. e. none of the above.

30.

Likert scales a. are also called the method of equal-appearing intervals because the objective is to obtain a unidimensional scale with interval properties. b. are also called summated scales because the scores on individual items or statements are summed to produce a total score for each respondent. c. are generally hard to construct and administer. d. require a neutral midpoint at the center of each scale. e. none of the above.

31.

Semantic differential scales can be used 1. to compare the images of competing products. 2. without doing exploratory research to develop the scales. 3. as long as group means do not need to be computed. a. 1 b. 2 c. 3 d. 1 and 3 e. 1, 2, and 3

32.

One of the difficulties in profile analysis is that 1. it cannot be used to make visual comparisons of the images of different products. 2. it is intuitively hard to grasp and statistically complicated to implement. 3. the attributes used may not be independent of each other and may be measuring the same dimension. a. 1 b. 2 c. 3 d. 2 and 3 e. none of the above

33.

Stapel scales a. are a simplified version of semantic differential scales. b. use only one pole, rather than two. c. are especially suited to telephone interviewing. d. are easy to administer. e. all of these.

34.

Which of the following is true about associative scaling? 1. The technique cannot be used when sequential decision processes are involved. 2. The technique cannot be used for telephone interviewing. 3. The technique is best suited to market tracking, where there is a need to understand shifts in competitive positions.

a. 1 b. 2 c. 3 d. 1 and 2 e. none of the above 35.

The researcher's choice of an attitude measure scale should be guided by a. the specific information that is required to satisfy the research objective. b. compatibility between the scale and the structure of a respondent's attitude. c. budget constraints. d. the adaptability of the scale to the data collection method. e. all of these.

36.

The measure of a person's overall feelings toward an object, situation, or person on a like-dislike or favorable-unfavorable scale is called the a. affective component or liking component. b. action component. c. cognitive component. d. none of the above.

37.

The action component refers to a person's a. overall feelings toward an object. b. knowledge about an object. c. expectations of future behavior. d. preferences to an object. e. none of the above.

38.

___________ is the process of creating a continuum on which the objects are located according to the amount of measured characteristic that the object possesses. a. Measurement b. Scaling c. Attitude measure d. Rating e. None of the above

39.

A thermometer scale is a type of a. pictorial scale. b. semantic differential scale. c. Stapel scale. d. constant sum scale. e. none of the above.

40.

If a researcher needs to make comparisons of absolute magnitude, a ________ scale must be used. a. pictorial scale. b. semantic differential scale. c. ratio scale. d. constant sum scale. e. none of the above.

41.

The following is an example of an ordinal scale. a. classification of respondents by marital status b. ranking brands of frozen vegetables according to quality c. Fahrenheit temperature scale. d. number of buses seen on a given route. e. none of the above.

42.

The following is an example of an interval scale. a. classification of respondents by marital status b. ranking brands of frozen vegetables according to quality c. Fahrenheit temperature scale. d. number of buses seen on a given route. e. none of the above.

Test Bank CHAPTER 12 Designing The Questionnaire True- False 1.

A questionnaire should cover no more and no less than is necessary to satisfy the research objective.

Hypotheses play an important role in translating the research objective into information requirements.

Responses to an open-ended question will not be influenced by prespecified categories or by an interviewer's expectations of a respondent.

Because the disadvantages of open-ended questions usually outweigh the advantages, open-ended questions should only be used sparingly.

Closed-response questions have an advantage over open-ended questions in that there is less potential error due to differences in the way questions are asked and answers are reported.

Open-ended questions are harder to develop and require more exploratory work than closed-response questions.

A rule-of-thumb in selecting the number of response categories is to give the respondent a choice of at least nine. Fewer than nine categories will not capture individual differences, particularly in a telephone interview.

In multiple-choice questions, the response categories should ideally be mutually exclusive and exhaustive.

Open-ended questions are generally easier for a respondent to answer than closed-ended questions, which require more thought.

10.

An example of an ordering problem is the tendency of some respondents to choose the center position in a list of categories.

11.

There are arguments for and against the inclusion of "don't know" or "not sure" as response categories and the choice depends on the individual question.

12.

A researcher who is unfamiliar with the respondents' vocabulary should use technical terms in survey questions since those terms are likely to have a common meaning.

13.

A researcher should not use words such as "often" or "recently" without defining a time frame because the respondents' answers will not be comparable.

14.

The split ballot technique involves the use of alternative wordings of a question.

15.

A qualifying question can be used to make sure that a subsequent question is applicable to a respondent.

16.

An interview should start with an easy, nonthreatening question and be followed by sensitive questions to catch respondents by surprise.

17.

The best place for questions on income is at the beginning of a questionnaire.

18.

The appearance of a questionnaire is particularly important for self-administered surveys.

19.

Preceding questions establish a frame of reference which influences a respondent's answers to questions that follow.

20.

Computer-controlled telephone questionnaires in theory leave an interviewer with more freedom to concentrate on establishing rapport with a respondent.

21.

A computer-controlled system of telephone interviewing can eliminate all human error.

22.

The use of a computer to administer a questionnaire is generally more expensive for small surveys than using the traditional paper and pencil.

23.

A computer can randomly select a respondent from a list of household members entered by an interviewer.

24.

A computer-controlled system of telephone interviewing can eliminate all response error.

25.

The speed of computer-controlled telephone interviewing allows a researcher the freedom to insert questions that are not strictly relevant to the research objective.

26.

Respondents in a pretest need not be representative of the sample population.

27.

If a questionnaire has been written by a researcher who is experienced in the subject area, a pretest can be skipped.

28.

One limitation of using open-ended questions is that the respondents may not use the same frame of reference, which may not be discernible to the interviewer.

29.

Dichotomous questions can be used to collect psychological data.

30.

If there is a likelihood of ignorance in the respondents, a "don't know" category is appropriate.

31.

If there is a likelihood of ambivalence in the respondents, a "neutral" category is inappropriate.

32.

Using an open-ended question to follow up a closed-ended question is called a probe.

33.

Order bias occurs when prior questions influence answers to subsequent questions.

34.

The issue of question format is of no importance in a cross national research.

35.

Open-ended questions overcome subjective judgments in responses

36.

In questionnaires, prior questions will not influence answers to subsequent questions

37.

Use of indirect questions may aid in bypassing biases in international research

Multiple Choice 1.

Questionnaires do not aim at a) encouraging respondents to complete them b) minimizing random error c) eliciting the desired response from the respondent d) minimizing respondent incompleteness e) none of the above

Which of the following types of questions are most easy to respond? a) personal interview questions b) aided recall questions c) unaided recall questions d) realistic questions e) all the above

Which of the following type of questions are easy to code and analyze? a) dichotomous questions b) multiple choice questions c) scaled questions d) unstructured questions e) self-administered questions

Respondents for the pre-test and the survey should be drawn from _____________ population(s) a) a similar b) the same c) a representative d) the general e) different

Which of the following is not a potential limitation associated with closed-end questions? a) researcher bias b) verbosity bias c) ballot bias d) position bias The question - “Do you consider Nestea cool and refreshing?” represents which of the following criteria for a poorly worded question in a soft drink survey ? a) relevancy b) objectivity c) non ambiguity d) double-barreled

Proctor and Gamble (P&G) desires to learn why consumers purchase one of its product lines. The company hires the research firm of Veekay and Co. to conduct a study. Veekay and Co. send a mail questionnaire to P&G ’s customers to investigate relationships. The data collected are a) primary, causal, cross-sectional and overt b) commercial, non-causal, longitudinal and non-overt c) commercial, non-causal, time-series and overt d) commercial, non-causal, cross sectional and overt

A disadvantage of open-end questions is a) researcher bias b) ballot bias c) position bias d) space bias

Which of the following is not a criterion to be used when constructing and/or evaluating questions ? a) brevity b) specificity c) simplicity d) ambiguity

10.

Which one of the following is a factor that affects the design of the questionnaire? a) respondent demographics b) method of administering the questionnaire c) the target population d) all of the above

11.

Multiple choice questions are an example of a) unaided recall b) aided recall c) day-after-recall d) none of the above

12.

Unstructured questions are most useful in a) exploratory research b) descriptive research c) causal research d) none of the above

13.

Commonly used procedures in “pretesting “are a) debriefing b) statistical analysis c) observing d) none of the above

14.

Which of the following is not true about a good questionnaire? a. The choice of data collection method sets limits on the number and type of questions asked. b. Respondents must be willing and able to answer the questions. c. The researcher's motivation for asking each question should be clear to the respondents. d. The questionnaire should collect the information that is needed to satisfy the research objective. e. All of these are true.

15.

To avoid incompleteness in a questionnaire, the researcher should do all of the following except a. exploratory research. b. include questions that are interesting and that relate only marginally to the research purpose. c. examine the results from similar studies. d. pretest the questionnaire. e. all of these should be done.

16.

Open-ended questions do not a. allow for unexpected answers. b. give the researcher a respondent's answer verbatim. c. produce a wide range of responses. d. save time when compared to closed-response questions, either in the interview or during tabulation. e. all of these are true of open-ended questions.

17.

Which of these household appliances is/are in your kitchen? (Check all that apply.) ____ 1. refrigerator ____ 2. freezer ____ 3. washer

____ 4. dryer ____ 5. electric stove ____ 6. microwave oven

The above question is an example of what type of question? a. Single-choice b. Multiple-choice c. Rating scale d. Open-ended e. None of the above 18.

Closed-response questions a. do not require the researcher to do exploratory work. b. are harder to answer, both in an interview and in a mail survey, than are open-ended questions. c. provide answers that are directly comparable from respondent to respondent. d. make tabulation and analysis more difficult in comparison to open-ended questions. e. none of the above.

19.

In wording survey questions, the researcher should make sure that 1. the language is simple and direct. 2. the questions are directed to those with a college education. 3. there is a leeway for a respondent to find his or her own interpretation of the meaning of a question. 4. there are no leading questions. a. 1 b. 2 c. 3 d. 4 e. 1 and 4

20.

The split-ballot technique is a. the practice of using two different versions of a question, one for each half of the sample. b. also known as a double-barreled question. c. a random method of choosing respondents d. the practice of averaging scale values. e. none of the above.

21.

What, if anything, is wrong with the following questions asked of homeowners: "What is the approximate value of your home?"

____ $20,000-$39,999 ____ $40,000-$59,999 ____ $60,000-$79,999 a. The categories are not mutually exclusive. b. The question is too sensitive. c. The list of alternatives is not exhaustive. d. The response categories are ambiguous. e. None of the above. 22.

All of the following are true about the sequence of questions in a survey except a. the interview should not begin with difficult questions.

b. the questionnaire should flow logically from one topic to the next. c. sensitive questions should be asked in the beginning before the respondent is tired of the interview. d. the questionnaire should be easy for the interviewer to administer. e. the questionnaire should maintain the cooperation of the respondent. 23.

The following is an example of the randomized response technique: How many respondents answered "yes" to Question A? A. Have you ever passed a bad check? B. Is the last digit of your driver's license even?

Each of 1,000 respondents flipped a coin to determine which question to answer. Three hundred answered "yes." a. 300 b. 50 c. 250 d. 150 e. 200 24.

"Don't you think that the new taxes imposed by the municipal council will lead to better civic amenities?" is an example of a(n) a. closed-ended question. b. open-ended question. c. leading question. d. rating scale. e. none of the above.

25.

Using an open-ended question to follow up a closed-ended question is a(n) a. probe. b. open- closed-ended question. c. conjunction. d. disguised question. e. none of the above.

26.

"Are you satisfied with the cost and quality of this shirt?" is an example of a __________ question. a. loaded b. leading c. double-barreled d. dual e. none of the above

27.

An example of a loaded question is a. Are you satisfied with the texture and quality of this dress? b. Don't you agree that McKing's garments are the best in the U.S.? c. Should we raise taxes for the rich in order to get better housing and more schools for the poor? d. What is the approximate value of your car? e. None of the above

28.

The purpose of a pretest is to a. give the company a preliminary report of the survey findings. b. condition the respondents to the survey. c. evaluate the various questionnaires and choose the best one. d. eliminate the deficiencies in the questionnaire. e. none of the above.

Test Bank CHAPTER 13 Experimentation True-False 1.

For a study to be called an "experiment," it is necessary that the researchers have complete control over all of the relevant variables.

Experiments are defined as studies in which implementation involves an intervention by the observer beyond that required for measurement.

Laboratory experiments are conducted in a natural setting, where the respondents are usually not aware that an experiment is taking place.

Field experiments tend to have much greater external validity than laboratory experiments. This means that to a greater extent their causal inferences can be generalized from the experimental environment to the actual marketing environment.

The internal validity of an experiment depends on the extent to which competing explanations for the results are avoided.

Laboratory experiments give the researcher greater control over the experiment but less internal validity than do field experiments.

In an advertising effectiveness experiment, a researcher is faced with the question of whether sales increased because of advertising or because of economic or competitive changes in the marketplace. This question involves the internal validity of the experiment.

Because the validity issue in any experiment is so important, the researcher is justified in going to any expense to guarantee validity.

Experiments are used to detect or to confirm causal relationships and to quantify them.

10.

Descriptive studies can usually be used in place of experiments to infer and to confirm the existence of a causal relationship.

11.

External and internal validity go hand in hand. An experiment lacking in one is probably lacking in the other.

12.

A high degree of association between two variables, such as frequency of advertising exposure and respondent advertising recall, establishes a causal relationship between the two.

13.

When there is a high degree of association between an action and an outcome, the order in which the action and the outcome occurred is irrelevant to the question of causality.

14.

A causal relationship between an action and an outcome has been confirmed whenever there is evidence of a strong association between the two and evidence that the action preceded the outcome.

15.

The simple "try-it-out" design can be represented by the following notion: X O

16.

To be useful to management, a causal relationship must be persistent enough to make management action worthwhile.

17.

The history effect primarily threatens the internal validity of an experiment.

18.

The history effect occurs when events external to an experiment affect the responses of the subjects.

19.

In marketing studies, the primary source of history effects is the behavior of competitors.

20.

A researcher studying the effectiveness of advertising copy tested various groups of randomly selected respondents. After the first interviews, the researcher modified the questionnaire for use with the remaining respondents. The results of this study may be compromised by the maturation effect.

21.

Maturation involves changes in respondents that are a consequence of time, such as aging, or getting hungry or tired.

22.

A non-matched control group may be represented as X O1.

23.

One approach to reducing selection bias is to match the control and the experimental groups.

24.

In non-matched control group designs, one group is exposed to treatment while another is not. The response variable is measured in the two sample groups at the end of the experiment. This solves the problem of selection bias.

25.

A matched control group may be represented as

M X 01 -------M O2 26.

Randomization should always be used when the number of dimension on which groups are to be matched is small (two or three).

27.

Direct mail tests of advertising appeals are an ideal setting for the randomized control group design.

28.

A randomized block design can be represented as

-----------------------------------------------------------------

R X O3 ______________ R

29.

A researcher studying the effects of several control variables is faced with the problem of increasing sample size and increasing cost. The usual solution is the before-after "try-it-out" design.

30.

The factorial design allows a researcher to determine the effect of two variables in one experiment. It can determine main effects and interactive effects.

31.

A marketing research manager, who wants to reduce the cost of experimentation, decides to use the Latin square design. This decision is based on the assumption that any interaction between variables can be ignored.

32.

As the sample size decreases, the degree of matching achieved by randomization will increase.

33.

A researcher is using a full factorial design to test the effects of four variables, each of which has two levels. The least number of conditions to be tested is 2 x 2 x 2 x 2 or 16.

34.

This figure demonstrates an interaction effect between the two control variables, advertising and price:

High Advertising

Low Advertising

Low Price

High Price

Use the following information for questions 35 through 38.

Members of an anti-smoking group needed to test the effectiveness of an education pamphlet which they intended to circulate among the public. They first interviewed a group of respondents to find out their attitudes towards the detrimental effects of smoking. Next, the respondents were given the pamphlet to read. Finally, the respondents were interviewed again, for the second time that day. 35.

This study is an example of the before-after "try-it-out" design.

36.

The internal validity of the smoking study above is threatened by the before-measure effect.

37.

The internal validity of the smoking study above is threatened by the mortality effect.

38.

Because the respondents in the smoking study above had become familiar with the measuring instrument, the results of the study are threatened by the instrumentation effect.

39.

In the following before-after randomized control group design, the output of interest would be the difference between 01 - 03 and O2 - 04.

R 01 X 02 --------------R 03 04 40.

The before-after randomized control group design eliminates the before-measure effect.

41.

The following is a Solomon Four-Group design. Because groups III and IV do not have a before-measure, they cannot be regarded as experimental groups.

R 01 X 02 --------------R 03 04 --------------R X 05 --------------R 06 42.

With the Solomon Four Group design, it is possible to measure the interaction of the treatment and before-measure effects by looking at ((02 - 04) - (05 - 06)).

43.

If it is impossible for a researcher to find an unaffected subgroup to use for a control, the use of a one-group before-after design might be unacceptable because of the reactive effect of the before observation. In such cases, a separate random sample is sometimes interviewed for the before measure.

44.

Trend studies and continuous panel studies are two examples of time series designs.

45.

Trend studies are most useful when a researcher is testing hypotheses concerning an individual's response to a control variable.

46.

The figure below shows a decisive change in a time series after the administration of an experimental treatment.

Level of response variable

. . Before

. Experimantal treatment

After

47.

The before-measure effect is a potential threat to the internal validity of continuous panel data.

48.

Continuous panel studies are especially useful in gaining insights into choice behavior for product categories in which stable sales often obscure large but compensating gains and losses of individual buyers.

49.

All the hypotheses in a descriptive study must be fully developed before the data analysis stage.

50.

Causation is established when two variables vary concomitantly.

51.

If variables X and Y are strongly associated, then a causal relationship between X and Y must exist.

52.

Progressive Marketers Incorporated found no third variable involved in the association between sales and advertising. It can, therefore, be concluded that the relationship is of the form: advertising → sales.

53.

The value of the correlation coefficient, a statistical measurement of association, is sufficient evidence to establish or reject causality between two variables.

54.

The value of the correlation coefficient, a statistical measurement of association, is necessary evidence to establish causality between two variables.

55.

Until a causal link has been established between two variables, a researcher who finds a high level of association between the variables will not be able to make predictions.

56.

Progressive Marketers Incorporated has found a strong relationship between the number of automobile accidents in the quarter just ended and its sales level for the upcoming quarter. Their marketing researcher has, however, warned that the relationship is spurious and can be explained by an intervening variable. Under the circumstances, automobile accident data are of no use to the management in planning their strategy for the upcoming quarter.

57.

Strong association is sufficient evidence for predicting the dependent variable. However, if management desires to influence the level of the dependent variable, then a better understanding of the nature of the relationship between all variables of concern is necessary.

58.

Consider the following table from data on advertising recall and attitudes:

Attitude Positive Negative

Recall Advertising 63% 37%

Not Recall Advertising 36% 64%

2 .25 2 test Significant at .001 level  .27 The logical implication of the table is: advertising -> attitudes. 59.

One reason that an association between advertising and attitudes may be explained by an ownership variable is the difference between the composition of ownership groups with positive and negative attitudes.

60.

If the composition of two ownership groups (with respect to positive and negative attitudes) is identical, an association between advertising and attitudes would not be affected by the introduction of the ownership variable.

61.

In the absence of a true experiment, there is no way to adequately control for an identified intervening variable.

62.

Even if a true experiment is conducted, there is no way to adequately control for an unidentified intervening variable.

63.

The advantage of randomization in experimental control is that it will control for both known and unknown variables.

64.

An intervening variable causes spurious association.

65.

From a data analysis viewpoint, it is impossible to distinguish between an intervening variable and a spurious association.

66.

The group of subjects exposed to the experimental treatment is termed as control group.

67.

Variables, other than the manipulated variable, that affect the response of test units are called extraneous variables.

68.

Randomization is the procedure in which the assignment of subjects and treatments to groups is based on some criteria.

69.

Classical designs can be further categorized into three groups: Pre-experimental, Quasi-experimental, and true experimental groups.

70.

When many variables are involved and theory is undeveloped, the only way to identify interactions is to perform cross-tabulation on all conceivable combinations of variables.

71.

One way to address causality is to consider the time lag between cause and effect

Multiple Choice 1.

Which of the following designs corrects for all forms of biases in responses? a) one shot framework b) pretest-posttest descriptive framework c) pretest-posttest causal framework d) Solomon four group design e) none of the above

An advantage of ___________in experimentation is that no knowledge is necessary of extraneous variables that could possibly influence the results. a) randomizing b) eliminating c) equalizing d) balancing

Which of the following is more likely to provide evidence of a causal relationship between two variables? a) an experiment b) descriptive research c) exploratory research d) cross-sectional analysis e) non experimental research

The main advantage of experimental research over non experimental research is a) it is easier to control the dependant variable b) cause and effect relations can be tested c) interaction between variables do not confound the study d) one can collect more accurate information on the problem e) none of the above

An experimental design which helps identify all forms of the “pre-test” bias is a) before-after randomized control group b) traditional matched-group design c) time series d) solomon four-group e) all of the above

A test-retest or parallel forms approach will help determine a) construct validity b) concurrent validity c) reliability d) face validity e) none of the above

To infer a causal relationship, which of the following types of evidence does a researcher need? a. Evidence of a strong association between an action and an outcome. b. Evidence that the action preceded the outcome. c. Evidence of a high level of internal validity. d. Evidence that there are no strongly competing explanations for the relationship between an action and an outcome. e. All of these

The "try-it-out" design a. is not considered to be an "experiment." b. is not likely to be threatened by history effects. c. applies the experimental treatment to a subject or group and measures the results. d. can be represented by the notation O X. e. none of the above.

Which of the following is true about history effects? a. They involve changes in respondents that are a consequence of time. b. They result from events internal to the research design. c. They are not diminished by using a nonmatched control group design. d. The longer the time period involved in the experiment, the greater the likelihood that history effects will account for observed results. e. None of the above

10.

The question of whether the results of an experiment apply to the real world refers to a. external validity. b. internal validity. c. history effects. d. interaction effects. e. none of the above.

11.

One of the advantages of a nonmatched control group design is the control of a. interaction and maturation effects. b. maturation and instrumentation effects. c. history and maturation effects. d. instrumentation and mortality effects. e. selection bias.

12.

One approach to reducing selection bias is to a. include a control group. b. match the experimental and control groups. c. include volunteers as respondents. d. use a continuous panel. e. none of the above.

13.

In the textbook notation for experimental design a. X represents control group respondents. b. X refers to the method employed to measure the response variable. c. O represents the exposure of a respondent to an experimental treatment. d. X represents the exposure of a group to an experiential treatment whose effect is to be observed, and O represents the observation or measurement taken on the group. e. O1 and O2 represent the matching of experimental and control groups.

14.

When there is no interaction between two variables such as price and advertising, 1. the effects of the two variables are additive. 2. each variable will always have a main effect. 3. the effects of the two variables are not additive. a. 1 b. 2 c. 3 d. 2 and 3 e. none of the above

15.

In a full factorial design involving three promotion alternatives, three price levels, and four types of advertising, how many conditions would have to be tested? a. 10 b. 20 c. 24 d. 36 e. none of the above

16.

A serious concern with history effects is that a. they can never be controlled for. b. they prevent a researcher from concluding that an outcome is the result of experimental manipulation. c. a researcher may be unaware that they have threatened the validity of an experiment. d. they tend to inflate observed sales levels. e. the only way to eliminate them is to conduct a fully controlled field experiment.

17.

The ABC Company maintains records of brand share attained in each of its sales regions. It does so by surveying retail stores in these regions every quarter. The company is using a(n) a. exploratory design. b. time series experimental design. c. "try-it-out" design. d. Solomon Four Group design. e. none of the above.

18.

The key question in a trend study is a. whether maturation has invalidated the results. b. whether the measurements following the experimental treatment are a continuation of earlier patterns or mark a decisive change. c. whether a single random sample or a succession of samples has been used. d. how the behavior and attitudes of one respondent differ from those of another. e. all of these.

19.

Threats to the validity of a trend study are not likely to include 1. history effects. 2. maturation effects. 3. instrumentation effects. a. 1 b. 2 c. 3 d. 1 and 3 e. all of these

20.

Threats to the validity of continuous panel data include which of the following? a. history effects. b. instrumentation effects. c. before-measure effects. d. nonrandom selection. e. all of these.

21.

The marketing researcher for a game company is conducting an experiment to test customer reaction to the pricing of a new game designed for use by adults. A list of customers who had sent the company complaint letters was readily available, and the researcher rearranged this list by ZIP code, sending every third person a color brochure on the new game. Each respondent was asked to return a postcard, stating an intention to purchase or not to purchase the game at the listed price. Which of the following is true? a. The sampling method ensures that all geographic areas are represented. b. The external validity of the study is ensured, since respondents who are sitting in their homes are reacting under real life circumstances. c. The sample is likely to over-represent the lower class. d. The design of the study suffers from selection bias. e. None of the above.

22.

When it is not possible to make sure that groups in a study have identical characteristics before the administration of an experimental treatment, the researcher should be concerned with a. testing effects. b. interaction. c. selection bias. d. maturation effects. e. history effects.

23.

Randomized control group designs a. simultaneously match test and control groups on all dimensions when the sample size is sufficient. b. are sometimes called true experimental designs. c. ensure that sample groups will tend to be similar. d. can be represented as R X O1 -------------R O2 e. all of these.

24.

The Committee for Arts and Lectures (CAL) wants to test different promotions for a series of plays. Which statement is true about the following experiment? R X1 O1 --------------R X2 O2 --------------R X3 O3 -------------a. It compares three treatment levels, corresponding to three "levels" of promotion. b. X1 refers to the observation or measurement of the first group. c. It includes a separate control group. d. It can be classified as a matched control group design. e. None of the above.

25.

In a study to determine the demand level for a new candy bar at various price levels, each respondent was told only one of the three possible prices. Each pricing alternative was told to a randomly chosen third of a representative sample. A measurement of intent to purchase was then taken. The design of this study can be represented by 1. R (X1, O1) 3. R X1 O1 --------------------------R (X2, O2) R X1 O2 -----------------------------R (X3, O3) R X1 O3

2. R X1 O1 --------------R X2 O2 --------------R X3 O3 ---------------

4. M (X1, O1) -------------M (X2, O2) ----------------M (X3, O3) ------------------

a. 1 b. 2 c. 3 d. 4 e. 1 or 2 26.

In a study in an underdeveloped country, it is expected that urban residents will react more favorably than rural residents to a promotion encouraging family planning. It is important to ensure that the experimental groups will not differ on this dimension. Which of the following is/are true? 1. The study should control for the urban-suburban variable by adding a block effect. 2. This type of study design can be represented by R

-------------------------------------------------------

R R

O2 X

-------------------------------------------------------

3. This type of study design can be represented by R (X1, O1) ----------R (X2, O2) ----------R (X3, O3) ----------R (X4, O4) a. 1 b. 2 c. 3 d. 1 and 2 e. 1 and 3 27.

McDonnelly, a fast food chain, is testing a new kind of sandwich in thirty cities. Three levels of advertising (A1, A2, A3) and two price levels (P1, P2) are being considered. Which of the following is true? 1. McDonnelly is interested in estimating the effects of both advertising and price. 2. The appropriate design is the randomized control group design. 3. The appropriate design is the factorial design. 4. The experiment can be represented by R X1(A1, P1) O1 n = 10 ------------------------R X2(A2, P2) O2 n = 10 ------------------------R X3(A3, P3) O3 n = 10 a. 1 b. 2 c. 3 d. 4 e. 1 and 3

28.

29.

30.

d. The longer the time period involved in the experiment, the greater the likelihood that history effects will account for the observed results. e. None of the above 31.

America Corporation, a major auto manufacturer, wants to test the effectiveness of its "fair and frank" ad messages in changing the existing negative attitudes of the public toward the company's performance, intentions, and efforts to offer a better product. 1. The dependent variable in this study would be sales levels after the ad campaign is over. 2. The dependent variable is the attitude of the population concerning the company's performance, etc. 3. The independent variable is the ad campaign with the "fair and frank" messages. 4. The analysis is attempting to look at the relationship between advertising and attitudes. a. 1 b. 2 c. 3 d. 4 e. 2, 3, and 4

32.

Consider the following table from data on advertising and attitudes:

Positive Attitude Negative Attitude

Recall Advertising 63% 37%

Not Recall Advertising 36% 64%

The logical implication of the table is: advertising → attitudes. The marketing research group, however, was puzzled by the fact that in spite of the implication of the above table, the percentage of people in the population with positive attitudes had not increased appreciably after exposure to the ad campaign. They looked for other variables that might offer an explanation for this "paradox" and

came up with the following table:

Does own an American Corporation Car

Positive Attitude

Doesn't Own an American Corporation Car

Recall A adv.

Not Recall Recall Adv. Adv.

83%

80%

20%

18%

15%

20%

80%

82%

Not Recall Adv.

P Negative Attitude 2 2 test 

0.66 Not significant at .25 level 0.06

Not Significant at .25 level 0.04

All of the following are true except a. the table above confirms the implication: advertising → attitudes. b. the table above implies a positive relationship between ownership and recall. c. the results of the table above offer a reasonable explanation of the "paradox." d. the table above is an example of the usefulness of searching for a third variable when initial results are statistically significant but theoretically simple. e. all of these are true. 33.

Progressive Marketers Incorporated found that the correlation between their sales and advertising is 0.006. Which of the following is a possible, reasonable conclusion? 1. There is no real relationship between sales and advertising. 2. There is a strong and definite curvilinear relationship between sales and advertising. 3. Interaction effects due to a third variable might have caused the low correlation. a. 1 b. 2 c. 3 d. 1 and 3 e. 1, 2, and 3

34.

When compared with the traditional test market method, Simulated Test Marketing has advantages of : a. Speed b. Economy c. Accuracy of forecasting d. All of the above

Test Bank CHAPTER 14 Sampling Fundamentals True-False 1.

In probability sampling, all members of a population have a known probability of being included in the sample.

It is possible to obtain a representative sample of a population just by using common sense and judgment.

Non-probability sampling allows the researcher to explicitly identify possible biases.

"Target population" is another term meaning "sample."

The definition of a target population is usually obvious and requires little attention from the researcher.

For most studies, more than one target population can be defined.

The term "sampling unit" is always used to refer to a "respondent."

A researcher's decision on a sampling unit may depend on how purchase decisions are made.

A researcher can never go wrong by "overdefining" the target population.

10.

A sampling frame must list all members of a target population.

11.

In simple random sampling, each population member has an equal probability of being selected.

12.

Systematic sampling involves systematically spreading the sample through a list of population members.

13.

Systematic sampling is useful in sampling time periods.

14.

A researcher who tries to better represent a population by combining lists of population members may have to face the problem of duplication.

15.

A researcher should always be aware of the "age" of a list of population members.

16.

There is no evidence that people who are listed in the telephone book and those who are not listed are different.

17.

One way to overcome the problem of unlisted telephone numbers is to dial numbers randomly.

18.

Determining the sample size in a stratified sampling plan involves identifying homogeneous subgroups.

19.

In cluster sampling, a random sample of subgroups is selected and all members of the subgroups become part of the sample.

20.

Stratified sampling is useful when subgroups can be identified as representative of the whole population.

21.

The U.S. Census is an example of a multi-stage sampling design. ."

22.

A rule of thumb for determining sample size is to make sure that the largest subgroup to be analyzed contains 100 members.

23.

One of the determinants of sample size is the value of the information in the study.

24.

Disproportionate sampling can be used effectively when a subgroup of a population comprises a relatively small percentage of that population.

25.

As the variability in a population decreases, the sample size should increase.

26.

Call-backs are an attempt to reduce non-response. They are most effective with not-at-home non-respondents.

27.

One technique for dealing with not-at-home is to predict their responses from a knowledge of respondents' frequency of being away from home.

28.

The efficiency of call-backs can be improved by systematically scheduling call-backs at the same time every day.

29.

Hidden biases in non-probability samples can be eliminated by increasing the sample size.

30.

When the sample size is very small (less than 10), a judgment sample may be more representative than a probability sample.

31.

Snowball sampling is judgmental sampling which includes a minimum number from each specified subgroup in the population.

32.

There are no justifications for using a convenience sample.

33.

In a shopping center intercept study, the location used to intercept shoppers can affect the sample.

34.

One way to stratify in a shopping center intercept study is by time segments.

35.

If a researcher's goal is to develop a sample representative of the population, equal weight should be assigned to each person interviewed in a shopping center intercept study.

36.

Census is appropriate if the population size is large and the cost and time associated with obtaining the information is high.

37.

Sampling error is the difference in value between the population parameter and the sample statistic that occurs because of sampling.

38.

Sampling errors can be minimized by decreasing the sample size.

39.

Sampling frame is a list of population members used to obtain a sample.

40.

Most of the marketing research projects employ traditional research methods with replacement.

41.

Systematic sampling involves systematically spreading the sample through the list of population members.

42.

Non-probability sampling is typically used in descriptive type of research.

43.

A snowball design is very useful in reaching small, specialized populations.

44.

In judgmental sampling, the expert uses his judgment to identify the representative samples.

45.

The object of sampling is to obtain data that is representative of the population.

46.

In an international context, sampling may take place at a number of geographical levels.

47.

In international marketing research, non-probability sampling methods are more frequently used than probability sampling methods.

48.

It is possible for on-line and traditional research methods to yield similar results

49.

Snowball sampling employs both probability and non-probability sampling in selecting study objects

Multiple Choice 1.

A sampling frame is a) the list of elements included in the sample b) the list of items to be sampled from c) usually provides biased statistics d) is a form of non-probability sampling e) none of the above.

Ronny Reagy divides the population of the purchaser of missile X into heavy and light users and then he samples from those groups. This is an example of ___________ sampling. a) cluster b) random c) judgmental d) stratified e) quota

Linda Evans wants to do a study involving the population of Houston. She, therefore, divided the city into homogenous areas at random and drew a sample of 10 areas where she interviewed all households. This is an example of a) stratified sampling b) cluster sampling c) judgmental sampling d) multiplicity sampling e) systematic sampling

The Central Limit Theorem states that as the size of a sample increases, the sampling distribution of the sample means approaches normality if a) repeated samples of a fixed size are drawn from any population b) repeated samples of a fixed size are drawn from a normally distributed population c) repeated samples of different size are drawn from any population d) repeated samples of different size are drawn from a normally distributed population

When a sampling frame is larger than a population but contains all the population study objects, this is Termed

a) b) c) d)

superset problem subset problem intersection problem none of the above

What common characteristics do the three non-probability sampling techniques possess? a) none is representative of any definable population b) it is not possible to estimate the sampling errors of the sample statistics c) they are all unrestricted sampling techniques d) study objects must possess certain predefined characteristics

Which of the following types of probability samples does not require a complete list of population elements by name in order to draw the sample? a) stratified sample b) systematic sample c) simple random sample d) area sample e) none of the above

The notion of conceptual relevance and pragmatic reproducibility are integral components of which sampling decision? a) determination of sample size b) definition of population c) definition of sampling frame d) determination of sampling procedure

A subset problem is characterized by which of the following? a) population is larger than the sampling frame b) sampling frame is larger than the population c) some overlap of sampling frame and population d) none of the above

10.

Which of the following sampling techniques employs both probability and non-probability sampling in selecting study objects ? a) multi-stage sampling b) double sampling c) sequential sampling d) snowball sampling

11.

What is theoretically the most correct approach for handling sampling frame discrepancies ? a) ignore the discrepancies b) redefine the population in terms of the sampling frame c) take discrepancies into account during data collection a nd / or data analysis d) determine whether each individual population study object is being properly treated

12.

“Heterogeneity within and homogeneity between” is the ideal state for a) cluster sampling b) stratified sampling c) disproportionate sampling d) judgmental sampling e) a and b

13.

Which of the following sets of sampling techniques contains only probability sampling technique? a) simple random sampling, stratified sampling, cluster sampling b) stratified sampling, judgmental sampling, systematic sampling

c) convenience sampling, judgmental sampling, quota sampling d) quota sampling, cluster sampling, simple random sampling 14.

Which of the following sampling techniques does not represent an attempt to increase sampling net efficiency by reducing costs? a) stratified sampling b) systematic sampling c) cluster sampling d) multistage sampling

15.

Compared to simple random sampling, the precision of systematic sampling from a sampling frame monotonically ordered on a variable related to the dependant variable is a) the same b) greater c) less d) cannot tell

16.

Researchers prefer sampling to census when a) they have a large budget b) cost of sampling errors are low c) cost of non-sampling errors are low d) none of the above

17.

Which of the following is an example of sampling frame? a) one respondent b) a telephone directory c) the Bayesian approach d) none of the above

18.

The “next teenager” is an example of _____________ sampling. a) random b) convenience c) stratified d) judgmental

19.

Sample size is typically small in case of ____________ research a) exploratory b) descriptive c) causal d) all of the above

20.

Which of the following is the most cost-effective probability sampling technique? a) stratified b) systematic c) cluster d) quota

21.

The advantage of probability over non-probability sampling is that the researcher can 1. state how much variation is introduced because a sample is used instead of a census. 2. explicitly identify possible biases. 3. demonstrate the representativeness of a sample. a. 1 b. 2 c. 3 d. 2 and 3 e. 1, 2, and 3

22.

Which of the following statements concerning probability sampling is not true? a. The target population defines the research objective. b. The definition of alternative target populations can nearly always be made. c. The sample frame consists of a list of population members or of a procedure by which sampling units can be located. d. When a choice exists, preference should be given to populations that are convenient to sample. e. The specification of a target population should make clear what is excluded.

23.

Selection of every tenth subscriber to the New York Times is an example of a. stratified sampling. b. cluster sampling. c. judgmental sampling. d. random sampling. e. systematic sampling.

24.

A researcher needs a sample of 5 from a list of 800 football ticket holders. Each ticket number has three digits and no numbers are excluded. The following are random numbers: 7659 0783 4710 3749 7741 2960 0016 9347

The tickets that are drawn might bear the numbers 1. 765, 907, 710, 374, 412 2. 659, 078, 103, 749, 7741 3. 590, 783, 471, 037, 497 a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 2 or 3 25.

The possible problems involved in using a telephone book to generate a sample include a. the list not being up to date. b. the exclusion of unlisted numbers. c. the existence of nonworking numbers. d. all of these. e. the list not being up to date and the exclusion of unlisted numbers.

26.

A researcher, involved in a study of the population of Houston, divided the city into city blocks and then drew a random sample of 200 city blocks. All households in the 200 blocks were interviewed. The researcher used a. a simple random sample. b. judgmental sampling. c. snowball sampling. d. cluster sampling. e. systematic sampling.

27.

When determining sample size, a researcher should take into account a. the number of subgroups to be analyzed. b. the required accuracy of the results. c. cost. d. the variability in the population being studied. e. all of these.

28.

Stratified sampling may be used when a. subgroups that are representative of the whole population can be identified. b. natural subgroups are more homogeneous than the population they come from. c. an expert is available to identify a representative population. d. the sample is very small. e. none of the above.

29.

Which of the following statements about sample size is true? a. A rule of thumb is to include at least two members from every subgroup to be analyzed. b. If the sample size is very small, a judgmental sample may be more reliable and representative than a probability sample. c. The determination of sample size should not involve cost. d. Low sampling costs do not justify a larger sample. e. None of the above.

30.

Sources of possible shopping center biases include a. the choice of a shopping center. b. the location in the shopping center from which respondents are drawn. c. the time of day. d. the fact that more frequent shoppers will be more likely to be selected. e. all of these.

31.

A researcher who is faced with the problem of non-response can attempt to reduce the potential bias of the results by a. replacing each non-respondent with a "matched" member of the sample. b. making repeated contacts, or call-backs, with non-respondents. c. improving the research design. d. estimating the non-response bias. e. all of these.

32.

Which of the following results in a non-probability sample? a. Stratified sampling b. Quota sampling c. Systematic sampling d. Cluster sampling e. Multi-stage sampling

33.

A researcher is doing a study on champagne consumption. She has defined three different income groups and has assigned interviewers a specific number of interviews with respondents in each group. This is an example of a. cluster sampling. b. convenience sampling. c. random sampling. d. quota sampling. e. snowball sampling.

34.

If a population is surveyed error is observed, this error is known as

a. sampling error b. data error c. unit error d. non sampling error. e. unit error.

35.

An approach in which each population member, and thus each possible sample, has an equal probability of being selected is known as.

a. cluster sampling. b. convenience sampling. c. simple random sampling. d. quota sampling. e. snowball sampling. 36.

A ____________ usually is a list of population members used to obtain a sample a. respondents. b. sampling frame. c. sampling unit. d. superset. e. snowball sample.

Test Bank CHAPTER 15

Sample Size and Statistical Theory

True-False 1.

The two population characteristics of most interest to researchers are  and .

If the population variance is 4, the sample standard deviation must be 2.

The arithmetic average is the measurement of the sample mean.

The equation for the sample variance is 1 n

 (Xi - X )2 n-1 The sample variance, S2, can be used to estimate the population variation. S2 =

If the population variance is 10 and the sample size is 16, then the standard error of the mean is 2.5.

Two samples are drawn from the same population with a known variance, 2. If the sample sizes are 100 and 400, then the standard error of the mean of the former sample will be half that of the latter.

The sample mean is not known, but it can be estimated from the population characteristics.

A 95 percent confidence interval will be smaller than a 90 percent confidence interval.

10.

If we wanted to be 95 percent confident that we wouldn't make an error of more than 1 unit in our estimate of  (for  = 2), we would need a sample size of approximately 16.

11.

If the allowed error is increased, the required sample size would decrease.

12.

When a complex multi-stage design is involved, a common approach is to replicate the entire sampling plan and get various independent estimates of the sample mean.

13.

If two random samples of equal size are drawn from the same population, we should expect the mean of both samples to be identical.

14.

The size of a sample can be determined only by using statistical techniques.

15.

A researcher takes a modest sample and, if results are worthwhile, opts for a larger sample. This type of sampling is called sequential sampling.

16.

If all members of the population have identical opinions on an issue, a sample of one is unsatisfactory.

17.

It is sensible to use disproportionate sampling if one of the subgroups of the population is a relatively small percentage of the population

Multiple Choice 1.

What determines the statistical operations that can be performed on a scale type? a) intransitivity property b) invariance property c) comparative property d) isomorphic property

Bo Derek calculates that she needs a sample size of 200, given the estimated mean, accuracy variance and required Z-score. However, she learns that the variance is actually one-half of what she originally believed. Her required sample size will now be a) 100 b) 800 c) 400 d) 50 e) none of the above

The distribution which we say always assume to be “normal “ or bell shaped is the a) sampling distribution b) population distribution c) sample distribution d) variance distribution e) standard distribution

A distribution which tails off to the right and contains a few very large values is described as a) negatively skewed b) platykurtic c) positively skewed d) symmetric

Means can only be meaningfully calculated on a) nominal-or higher-scaled data b) ratio-scaled data c) interval-or ratio-scaled data d) ordinal-or higher-scaled data

Which of the following is(are) a statistic(s)? a) sample mean b) population median c) population standard deviation d) all the above

The standard error of the mean is the same as the a) standard deviation of the population b) standard deviation of the normal distribution c) standard deviation of the sampling distribution d) none of the above

As the sample size becomes larger, the mean of the sampling distribution becomes a) greater than the population mean b) smaller than the population mean c) equal to the population mean d) double that of the population mean

Which of the following is set in advance for the statistical determination of sample size? a) sample size b) standard deviation c) sampling frame d) precision level

10.

The probability that a confidence level will include a population parameter is called a) precision level b) critical value c) standard deviation d) confidence level

11.

Consider the following: Response Response R Frequency f +1 .3 0 .4 -1 .3

c Weighted Average RF .3 0 -.3

( R -  )2

( R -  )2 f

1 A B

C 0 .3

For the given data: a. = .6, 2 = 0, A = 0, B = 1, C = .3. b. = 0, 2 =.6, A = 0, B = -1, C = .3. c. = 0, 2 = .6, A = 0,B = 1, C= .3. d. = 0, 2 = .6, A = .4,B = -1, C = .3. e. = .6, 2 = 0, A = .4,B = 1,C = .3. 12.

Consider the following data from a random sample:

10 10  X I = 70  (XI - X )2 = 18 i=1 _ a. X = 7, S2 = 2 b.  = 7, 2 = 2 _ c. X = 7, 2 = 2 d. The population mean is 7 and S2 = 2 e. It is not possible to estimate the population mean and standard deviation from the given information.

13.

Two samples are drawn from the same population: Sample 1 Sample 2 n 1 = 40

n 2 = 10

X1 = 15

X2 = 13

Which of the following statements is true? _ _ 1. The distribution of X1 will be taller than that of X2. 2. The standard deviations of the two means are equal. 3. 1  2 4. The two population variances are equal. a. 1 b. 2 c. 3 d. 4 e. 1 and 4 14.

Consider the following data: _ X = 10 2 = 4 n = 25

The lower and upper limits of 1. a 90 percent confidence interval will be 9.36 and 10.64, respectively. 2. a 95 percent confidence interval will be 9.216 and 10.784, respectively. 3. a 90 percent confidence interval cannot be determined for the given data. 4. a 95 percent confidence interval indicates the range within which  must lie. a. 1 b. 2 c. 3 d. 4 e. 1 and 2 15.

Which of the following statements is true? a. The sample size required to ensure 95 percent confidence limits will be smaller than that for 90 percent confidence limits. b. The sample size required to ensure a smaller confidence interval will also be smaller. c. The only way to reduce the width of a confidence interval is to reduce the confidence requirements. d. The required sample size is dependent on å only. e. The required sample size for given error and confidence levels is independent of the population size.

16.

Let the variance of a normally distributed random sample be 16. A point that is 8 units away from the mean is 1. a point such that the probability of getting any other point further from the mean is less than 0.025. 2. a point such that the probability of getting any other point further from the mean is less than or equal to .95. 3. a point such that the probability of getting any other point further from the mean is greater than 0.025. 4. two standard deviations away from the mean. a. 1 b. 2 c. 3 d. 4 e. 1 and 4

17.

It is estimated that the proportion of Californians in favor of Proposition 5 is between 0.4 and 0.6. The sponsors of the proposition would like to sample Californians and get a 95 percent confidence interval for the true proportion of people in favor of Proposition 5. They want to restrict the error level to 5 percentage points. The required sample size is then a. 400. b. 40. c. 100. d. 1,000. e. none of the above.

18.

ABC Incorporated wants to find out the proportion of customers who would purchase their new product. They have decided to take a modest sample, look at the results, and then decide if more information, in the form of a larger sample, is needed. ABC is using a. simple random sampling. b. biased random sampling. c. stratified sampling. d. sequential sampling. e. none of the above.

19.

Consider the following four statements:

1. The distribution of the mean of a random sample approaches the normal distribution as the sample size increases, only if the parent population is normally distributed. 2. The distribution of the mean of a random sample taken from a normal population is normal, irrespective of the sample size. 3. The distribution of the mean of a random sample taken from practically any population approaches the normal distribution as the sample size increases. 4. The distribution of the mean of a random sample taken from practically any population is normal, irrespective of the sample size. Which of the above statements is/are true? a. Only 1 b. 2 and 3 c. 2 and 4 d. Only 3 e. None of the above

Use the following information for questions 20 through 22 A soap factory produces 500-pound boxes of soap for industries. However, the weight of the boxes varies somewhat due to the process. Assume that the weight of each box is distributed normally with mean =  = 500 pounds

variance =2 = 25 pounds2

Quality control takes a random sample of 25 boxes per day. Let the weight of these boxes be denoted as X1, X2, ..., X25. 20.

The probability that X8 is between 495 and 505 pounds is closest to a. .0228 b. .3174 c. .9772 d. .6826 e. .3830

21.

The probability that the sample mean lies between 498 and 502 is closest to a. .3174 b. .9772 c. .9544 d. .3108 e. .6826

22.

What happens to the standard deviation of the sample mean, if we change the sample size from 25 to 100? a. It is decreased by a factor of 4. b. It is increased by a factor of 4. c. It is decreased by a factor of 2. d. It is decreased by a factor of 16. e. None of the above.

23.

A market research firm has been engaged to do a study of dishwashing detergents preferred by homemakers in San Francisco (800,000 population) as compared to those preferred in New York (8,000,000 population). In order to obtain results of about equal reliability in each city, the number of homemakers polled in New York should be a. ten times the number polled in San Francisco. b. 10 or 3.16 times the number polled in San Francisco. c. about the same as in San Francisco. d. half the number polled in San Francisco.

24.

A college dean wants to determine the average time it takes a student to get from one class to the next. Preliminary studies have shown that it is reasonable to let t = 1.5 minutes (the standard deviation of class travel times). What is the sample size which should be examined if the dean wants to assert with a probability of 95 percent that his estimate, the mean time of the random sample, will not be "off" by more than .25 minutes (in either direction)? Choose the closest answer. a. 72 or more, but not less b. 81 or more, but not less c. 139 or more, but not less d. 200 or more, but not less e. None of the above

25.

Assume that  is distributed normally with  = 0, 2 = 1. What is P(z = 1)? a. .8413 b. .1587 c. .3413 d. .0025 e. None of the above

Use the following information for questions 26 through 28 Consider a meat packing plant which produces packages of frozen steak. Let X be the weight (ounces) and assume that X is normally distributed with x = 8.0 and x = .5, n (sample size) = 16. 26.

The standard error of the sample mean is a. .5 b. .5 divided by 16 c. .25 divided by 16 d. .5 divided by 4 e. .25

27.

Before the sample is drawn, the probability that the sample mean will exceed 9 ounces is closest to a. .3085 b. .1587 c. .1056 d. .0256 e. .0100

28.

The probability that X1 will exceed 9 ounces is closest to a. .3085 b. .1587 c. .1056 d. .0256 e. .0100

Test Bank CHAPTER 16 Fundamentals of Data Analysis True-False 1.

Data analysis is a powerful aid to gaining useful knowledge and it can help an investigator rescue even poorly conceived research.

If a research study is well designed, then the researcher is assured of clear judgments and conclusions leading to good decisions, even if the data analysis techniques aren't entirely appropriate.

The basic purpose of data analysis is to extract meaning and knowledge from the collected data.

The purpose of editing is to identify omissions, ambiguities, and errors in the responses.

Omissions refer simply to the errors resulting from the failure of interviewers to ask all questions.

Ambiguity is the result of an interviewer's failing to understand the question he must ask his respondents.

When problems are identified during the editing stage, the researcher's only options are to re-contact the respondent or to throw out the entire questionnaire.

The coding of closed-ended questions involves judgment decisions.

It is generally easier to code open-ended questions as compared with closed-ended questions because the researcher has more options with open-ended questions.

10.

Consider the following question: "What are your opinions about the way the President is handling the economic problems facing the nation?" This is an example of a closed-ended question.

11.

Every questionnaire should have some open-ended questions.

12.

A frequency distribution simply reports the number of responses that each question category receives.

13.

It is generally easier for an analyst to interpret the raw numbers rather than the percentages that have been subsequently derived from the data.

14.

The decision to combine certain categories is dependent upon the ease with which this can be done and the number of original categories.

15.

Frequency distributions, though sometimes unwieldy, do provide more information than does the sample mean.

16.

When the data is collected on a nominal scale, the researcher can only use the mean and percentages to make meaningful conclusions.

17.

A researcher who uses a frequency distribution or a single number will necessarily reach the same conclusion.

18.

Product usage is a useful variable when a researcher is seeking to segment the population.

19.

The difference between means is concerned with the association between two questions, the question defining the group (for example, smokers or nonsmokers) and another question (fear of fires).

20.

Hypothesis testing of a difference between means can help a researcher decide whether a certain difference was obtained merely by chance or because of differences in the underlying populations.

21.

If a researcher's objective is to analyze a single question for various subgroups, based on a frequency distribution, the technique is termed cross-tabulation.

22.

While analyzing his data, Mr. Thorough decided to use a frequency distribution to study the response to each question. Later he became interested in finding out if there were any significant differences between the three subgroups in his study. The appropriate technique at this stage is the difference between means.

23.

When cross-tabulating data, the objective of the researcher is to learn how the response variable varies from subgroup to subgroup.

24.

Cross-tabulation is the analysis of association between two variables that are nominally scaled.

25.

A researcher has decided to analyze differences between the four subgroups she identified by cross-tabulating the data and testing the appropriate hypotheses. Assuming that her choice is correct, we can confidently say that the data must be nominally scaled.

26.

Consider the diagram shown below:

Sales

. . .

. . . Advertising

The correlation between sales and advertising is close to 1.0. 27.

While inspecting political polling data, you notice that when the distance jogged by the President (the independent variable) increases, his popularity rating (the dependent variable) goes down. This would indicate a positive correlation between the two variables.

28.

A researcher made the following claim: "The correlation between the weight of a car and its mileage is 45." Without additional information, it is impossible to say whether this claim is true.

29.

If two intervally scaled variables are not at all associated, the value of r will be negative.

30.

In data on inventory costs and the number of orders placed in the preceding year, it was found that the value of the correlation coefficient r was close to zero. It can, therefore, be conclusively stated that these two variables are unrelated.

31.

The assumption underlying correlation analysis is that the variables involved are intervally scaled.

32.

Multivariate analysis can be used to group variables or people or to understand the relationship between variables.

33.

Data analysis as the potential to ruin a well-designed research

34.

Coding for closed-ended questions is much more difficult than open-ended questions

35.

The t-test is more sensitive to certain violations of these assumptions than others

36.

Nominal-scaled data is the best from the perspective of data analysis

Multiple Choice 1.

The process that is used to make the sample data more representative of the population that has been surveyed is called a) editing b) coding c) weighting d) transcribing

Which one of the following is not an assumption underlying a test statistic? a) the samples are independent b) the characteristic of interest in each population have normal distribution c) the two populations are of equal size d) the populations have equal variances

The most primitive form of data from data analysis perspective is a) nominal scale b) ordinal scale c) interval scale d) ratio scale

Analysis of association between two nominally scaled variables is called a) analysis of variance b) cross tabulation c) factor analysis d) cluster analysis

At what stage in the research process is fieldwork required? a) definition of problem b) formulation of research design c) editing the code d) all of the above

Which of the following is not a method of eliciting more information from the respondents ? a) clarifying the question b) asking the respondent to repeat answer c) pausing for a reply d) all of the above

Which of the following errors cannot occur in fieldwork? a) interviewer error b) response error c) sampling error d) non response error

The process that is used to increase the accuracy and precision of a questionnaire is a) checking b) coding c) editing d) transcribing

Identifying inadmissible errors is called a) consistency check b) coding c) editing d) none of the above

10.

The process of data analysis involves 1. editing and coding the data. 2. collecting the data. 3. tabulating each question. 4. estimating differences between means. a. 1 b. 2 c. 3 d. 4 e. 2, 3, and 4

11.

The process of editing the data involves a. detecting and correcting interviewer errors. b. discovering inconsistencies between responses. c. identifying omissions, ambiguities, and errors in responses. d. eliminating data from ineligible respondents. e. all of these.

12.

While editing the data collected in a survey to determine the psychographic profiles of heavy users of cereals, some of the responses were found to contain omissions, ambiguities, and errors. The researcher should do which of the following? 1. Try to recontact the respondents (if feasible) and obtain clarification. 2. Throw out those questionnaires which have many errors or errors involving crucial questions. 3. Ignore questionable responses while making use of the remainder of a respondent's data. 4. Use intuition and common sense to revise erroneous responses, based on an educated assessment of how a respondent should have answered. a. 1 b. 2 c. 3 d. 4 e. 1, 2, or 3

13.

Coding is needed to transform the raw data into __________ that may be __________. a. charts; easily interpreted b. histograms; used for making subgroup comparisons c. an accessible database; automatically retrievable d. symbols (e.g., predecided categories); key punched e. secondary data; manipulated

14.

The coding of open-ended questions a. is much more difficult than for closed-ended questions. b. could require the coder to make a judgmental decision. c. and the problems involved make it advisable to avoid open-ended questions as much as possible. d. can be difficult when the handwriting of the respondents is illegible. e. all of these.

Use the following information for questions 15 and 16. Intention to Buy Will buy as soon as product is introduced Will see the price of the product at introduction and then Decide Will Purchase if others using it seem satisfied

Number 80 120

Will certainly not purchase

75 125

15.

The table above is an example of a difference between means. b. a frequency distribution. c. a two-way tabulation. d. a cross-tabulation. e. an interval-scaled question.

16.

The percentage of people who say that they will buy the product as soon as it is introduced is: (1) less than that of those who will purchase if others seem satisfied; (2) 20 percent; (3) 2/3 of the percentage of people who will check the price before purchasing. a. (1) b. (1) and (2) c. (1), (2), and (3) d. (2) and (3) e. (1) and (3)

17.

Which of the questions listed below would be the easiest to code? a. "What are the attributes that a good president must have?" b. "What is your opinion of the influence of the Hare Krisna group (a religious sect) on the minds of its younger members?" c. "What influence, if any, do you think TV commercials have on children?" d. "What are the major achievements and failures of the system of American government?" e. "What type of oven do you have: (1) gas, (2) electric, (3) microwave, (4) other?"

18.

Consider the following table: Height 74 in. 72 70 68 66 Total

e Number of people 10 5 12 5 10 42

a. The percentage of people with a height of 74 in. is close to 24 percent. b. The average height of the sample is 70 in. c. Most of the people in the sample are taller than or as tall as 70 in. d. The most common height (mode) in the sample is 70 in. e. All of these are true.

19.

Consider the following table:

Height

Sample Size

Actual number in The population

74 in. 72 70 68 66

10 5 12 5 10

150 200 250 200 250

Number in the sample who are members of the basketball team 7 4 6 2 3

(This table represents the heights and basketball team memberships of high school students in a small mid-western town.) 1. The expected percentages of basketball players in the population are 70, 80, 50, 40, and 30, respectively. 2. The estimated number of students in the city's high schools playing basketball, based on the various samples, is 105, 160, 125, 80, and 75. 3. The estimated total number of basketball players in the city's high schools is 545. 4. The (weighted) average height of the city's basketball players is different from the average height of the sample. a. 1 b. 2 c. 3 d. 4 e. 1, 2, and 3 20.

ABC Incorporated asked a sample of residents in each of two cities to indicate the brand of shampoo most preferred by them. They found that 40 percent of the people in City 1 preferred Brand A, as compared with 30 percent in City 2. The results indicate that 1. Brand A is more popular with the sample respondents in City 1. 2. Brand A is more popular with the residents in City 1. 3. a hypothesis test of the significance of the difference in sample percentages is needed before any conclusions about differences in population can be made. a. 1 b. 2 c. 3 d. 1 and 3 e. 1 and 2

Use the following information for questions 21 through 23 Income Type of oven owned Conventional Microwave Total

Less than $10,000 year 150 20 200

More than $10,000/year 100 75 175

Total 250 125 375

21.

The table shown above is an example of a. one-way classification. b. four-way classification. c. six-way classification. d. cross-tabulation. e. none of the above.

22.

How many people own a microwave oven, according to the data above? a. 250 b. 200 c. 125 d. 50 e. 75

23.

What inferences about the relation between income and oven ownership may be drawn from the data above? a. No inferences can be made without performing a hypothesis test. b. The higher the income, the fewer the number of ovens owned. c. A higher proportion of people in the lower income bracket own microwave ovens. d. A higher proportion of those in the higher income bracket own microwave ovens. e. In absolute terms, the ownership of conventional ovens seems to decline with income, while that of microwaves appears to increase.

Use the following information for questions 24 and 25 Sales Ad Budget for radio 100,000 8,000 120,000 8,200 150,000 9,000 70,000 6,700 24.

The correlation between sales and radio ad budget a. is 0. b. is negative. c. is approximately .9. d. is less than .75. e. cannot be calculated, because the number of data points is too small.

25.

Which of the following would be the most likely plot of the data points?

a. 1 b. 2 c. 3 d. 4 e. 5 26.

A researcher might want to do multivariate analysis for which of the following legitimate reasons? 1. To be able to group variables or people 2. To help improve predictive validity 3. To compare the difference between two means 4. To make the results look more meaningful and impressive to management a. 1 b. 2 c. 3 d. 4 e. 1 and 2

27.

When presenting the results of a study, the researcher should make sure that the presentation 1. is focused upon the research purpose and objective. 2. includes some assessment of the reliability and validity of the results. 3. points out those aspects of the results that are important or interesting. 4. merely states the statistical results. a. 1 b. 2 c. 3 d. 4 e. 1, 2, and 3

28.

A procedure in which the existing data are modified to create new variables is called b a. Data modification b. Variable Re-specification c. Scale Transformation d. Standardization

29.

Binary, dichotomous, instrumental and qualitative variables are a. Dummy variables b. Scale transformation variables c. contingency table variables d. standard variables e. none of the above

Test Bank CHAPTER 17 Hypothesis Testing: Basic Concepts and Tests of Association True-False 1.

After analyzing repeat purchase sales data from two market segments, the researcher reported that the p-value was 0.15. This implies that there are more than 15 chances out of 100 that the difference found was simply due to a sampling accident.

The hypothesis test serves to quantify the reliability of research results, indicating the extent to which the data support the empirical findings.

We can be more confident in rejecting the null hypothesis with a p-value of 0.05 than with a p-value of 0.02.

A high p-value means that the probability of a statistically significant difference is high.

If the sample size increases, the p-value will usually become smaller.

The confidence with which we may reject/accept a hypothesis is independent of the sample size, but dependent on the true population variance.

The Chi square test can provide a useful measurement of association.

If an analyst computes "marginal," he or she simply computes frequency distributions for the individual questions.

A major advantage of the Chi square statistic as a measurement of association between two questions is that it is independent of the sample size, making it easy to interpret in an absolute sense.

10.

Two branches of a major multinational corporation conducted surveys to measure the association between income level (low, mid, high) and need for a certain produce (low, mid, high). The sample size in one survey was 100 and in the other, 200. The branches now wish to compare the two cross tabulations that were generated from the surveys. Given this information, the Chi square statistic would provide an easy-to-interpret method to compare the associations.

11.

The null hypothesis associated with the sample Chi square statistic is that the two (intervally scaled) variables are statistically independent.

12.

If the p-value is less than or equal to 0.05, then it is valid to say that the sample evidence is significant at .05 level.

13.

A p-value of .07 means that the results are statistically significant at the 0.05 level.

Assume that a new product is placed in a sample of stores. The sample mean for units sold is 35 units. We test the hypothesis that the population mean is only 20. 14.

A p-value of .005 proves that the null hypothesis is false.

15.

A p-value of .45 means that the evidence against the null hypothesis is very weak.

16.

The higher the significance level used for testing a hypothesis, the higher is the probability of rejecting the null hypothesis when it is true.

17.

Type II error occurs when the null hypothesis is not rejected when it is false.

18.

A high value of b indicates that the test of hypothesis is working very well.

19.

Degrees of freedom refers to the number or bits of "free" or unconstrained data used in calculating a sample statistic.

20.

The larger the degrees of freedom, the lower is the likelihood of observing differences among the variables.

21.

The Chi square test cannot be used to ascertain whether the observed pattern fits with the expected pattern.

22.

Hypothesis testing can be used to establish whether the null hypothesis is true or false.

Multiple Choice 1.

Given the following 2 X 2 contingency table Q1

yes no

yes 23 46 69

no 36 15 51

59 61

What would be the expected number of people that said yes to both the questions if your null hypothesis stated that you expected an equal number in all cells ? a) 25 b) 30 c) 33.9 d) 40 e) not enough information given to test this hypothesis

For data in the previous question, what would the overall chi-square value be for the whole table if the expected value for the Q1 yes - Q2 yes cell was equal to 23 ? a) 0.0 b) 1.0 c) 5.0 d) 9.9 e) some number greater than 10.0

An index that is calculated from sample data and whose value determines whether to accept or reject a null hypothesis is a a) test statistic b) critical value c) significance level d) decision rule

If the researcher, in making a statistical test, rejects a true hypothesis, the error is called a) Type I error b) Type II error c) Type III error d) no error is made e) none of the above

Use the following information to answer questions 5 - 9 Assume you are doing a chi-square test for independence between class and grade. Given the following data collected by sample survey methods, answer the following questions. Class I II A 14 6 B 25 15 Grade C 60 20 D 34 6 E 17 3

What is the probability of making a C and being in class II ? a) .05 b) .10 c) .25 d) .40 e) .50

What is the expected value of the cell representing a grade of B for class II ? a) 5 b) 10 c) 20 d) 40 e) 50

If the expected value for a grade of A for a class II was 3, the cell’s chi-square would be a) ½ b) 1 c) 2 d) 3 e) 9 The degrees of freedom for this table is a) 1 b) 2 c) 4 d) 5 e) 10

If the computed χ2 value for this table was 8.7 and the value from the back of the book with the correct degrees of freedom was 9.49 with  = 0.05 you would a) accept the null hypothesis that grade and class are correlated b) reject the null hypothesis that grade and class are correlated

c) accept the null hypothesis that grade and class are independent d) reject the null hypothesis that grade and class are independent e) it is too close to tell whether to accept or reject 10.

New Products Incorporated ran a test market for their latest product in two markets, City A and City B. Both have equal populations. The average weekly sales were $1,000 and $800, respectively, in the two cities. Based on this information, we can say that 1. sales in City A are significantly higher than sales in City B. 2. the difference in the sales level could be due to a sampling error. 3. the difference in the sales level may be due to the fact that the residents of City B accepted the product to a lesser degree than those of City A. a. 1 b. 2 c. 3 d. 1and 3 e. 2 and 3

11.

The basic steps recommended in hypothesis testing, in the correct order, are a. analyze data which support an alternative hypothesis or position, conceptualize a null hypothesis, raise the question of the probability that the empirical "evidence" supporting the original position could have been a statistical accident, calculate the p-value. b. estimate a p-value, develop and analyze data, conceptualize a null hypothesis, cluster the data into two testable groups. c. conceptualize a null hypothesis, raise the question of the probability that the empirical "evidence" supporting the original position could have been a statistical accident, develop and analyze data, calculate the p-value.

d. cluster the data into two or three groups, analyze the data, calculate the p-value, test the null hypothesis. e. cluster the data into as many groups as needed, develop and analyze the data, raise the question of the probability that the empirical "evidence" supporting the original position could have been a statistical accident, calculate the p-value. 12.

a If x = 10, n = 16 σ x2 = 10, n = 16 The p-value for a sample observation of X = 11, based on the null hypothesis that the sample was drawn from the above population, would be closest to a. .3 b. .45 c. .005 d. .05 e. .68

Use the following information for questions 13 through 16 Frequency of Shopping Trips (F)

Location (L) Convenient

Often Occasional Seldom Column Total 13.

25 55 20 100

Not Convenient 15 45 40 100

1. The marginal distribution for F is .2 (often), .5 (occasional), .3 (seldom). 2. The marginal distribution for F is .5 (often), .5 (occasional), 0.0 (seldom). 3. The marginal distribution for L is .5 (convenient), .5 (not convenient). 4. The marginal distribution for L is .2 (convenient), .8 (not convenient). a. 1 b. 2 c. 3 d. 4 e. 1 and 3

Raw Total 40 100 60

14.

According to the data above, which of the following is true? 1. E (convenient, often) = E (often, convenient) 2. E (seldom, not convenient) = 30 3. E (seldom, not convenient) = 20 4. E (convenient, occasional) = 50 a. 1 b. 2 c. 3 d. 4 e. 1 and 2

15.

According to the data above, which of the following is true?

Let 2 =  (Oi - Ei)2 Ei a. The 2 statistic can be used to test the hypothesis that F and L are independent. b. The 2 statistic can be used to test the hypothesis that a frequent shopper is more likely to go shopping if the location is convenient. c. The t-statistic can be used most appropriately to test the hypothesis that F and L are independent. d. The t-statistic can be used to test the hypothesis that shopping is independent of convenience. e. None of the above 16.

For the data above, which of the following statements is true? 1. The 2 statistic is 4.167. 2. The 2 statistic is 6.25. 3. The p-value is less than 0.01.

a. 1 b. 2 c. 3 d. 1 and 3 e. 2 and 3 Use the following information for questions 17 through 19. Observation Advertising 1 2 3 Effort High 50 52 48 Medium 40 42 38 Low 33 27 35

55 43 25

45 37 30

The numbers in each cell represent the sales level in thousands of dollars. 17.

18.

Which of the following is/are true? 1. The appropriate null hypothesis would state, "Advertising levels have no effect on sales." 2. The appropriate null hypothesis would state, "There is an increase in the sales level due to an increase in the intensity of the advertising effort." 3. The appropriate statistic to test the null hypothesis would be 2 with 8 degrees of freedom. a. 1 b. 2 c. 3 d. 1 and 3 e. 2 and 3 Which of the following is/are true? 1. The sum of squares within rows will be given by 5 3 _   (Xip - Xp)2 i=1 p=1

2. The sum of squares within rows will be given by 3 _  (Xp - X)2 p=1 3. The sum of squares within rows will be given by 5 5 _   (Xip - X)2 i=1 p=1 4. 5 3 _ 5 3 _ 3 _ _   (Xip - X)2 =   (Xip - Xp)2 +  (Xp - X)2 i=1 p=1 i=1 p=1 p=1 a. 1 b. 2 c. 3 d. 4 e. 1 and 4

19.

Which of the following statements is/are true? 1. MSS (within rows) = MSS μ = 500 MSS (between rows) = MSSr = 12.67 Total sum of squares = 1,152 2. MSSr = 500, MSS= 12.67, F = 37.5 3. The appropriate test statistic is F with 2 and 8 degrees of freedom 4. The appropriate test statistic is F with 2 and 12 degrees of freedom a. 1 b. 2 c. 3 d. 4 e. 2 and 4

20.

The p-value is closest to a. .99 b. .95 c. .05 d. .01 e. .001

21.

The manager of the marketing division of Acme Corporation forecasts an average monthly sales in 1978 of $65,000. In the first seven months of 1978, the average monthly sales were $63,200, with a standard deviation of $500. The management wishes to test the hypothesis Ho that "statistically" the manager was right (Ho:  = 65,000) against the alternative hypothesis that he was wrong in his forecast (Ho:  = 65,000), using a two-tail test. Assuming normal distribution of monthly sales, which of the following statements is true? a. Ho is rejected at the 5 percent significance level but accepted at the 1 percent significance level. b. Ho is accepted at both the 5 percent and 1 percent significance levels. c. Ho is accepted at the 5 percent significance level but rejected at the 1 percent significance level. d. Ho is rejected at both the 5 percent and 1 percent significance levels. e. None of the above.

22.

The Berkeley Supermarket buys its supplies of potatoes from two different farms, A and B. In a recent sampling test, it was found that the sample taken from Farm A had a mean weight of 10 ounces per potato, whereas the sample from Farm B had a mean weight of 10.3 ounces. In view of this test, is there a statistically discernible difference (at the 95 percent confidence level) between the mean weights of the potatoes of the two farms? a. Yes. b. No, because the difference of 0.3 ounces is very small compared to the mean (approximately 3 percent). c. The standard deviations of both samples must be known (the sample sizes are irrelevant) before the above question can be answered. d. Both the standard deviations and sample sizes must be known before the above question can be answered. e. Even if both the standard deviations and sample sizes were known, the above question cannot be answered.

Use the following information for questions 23 through 26. A subscription service stated that preferences for different national magazines were independent of geographical location. A survey was taken in which 300 respondents randomly chosen from three areas were given a choice among three different magazines. Each person expressed his or her favorite. The following results were obtained: Region New England Northeastern Southern Total

Magazine X 75 120 105 300

Magazine Y 50 85 110 245

Magazine Z 175 95 85 355

Total 300 300 300 900

23.

If the appropriate null hypothesis for a chi-square test were not rejected, the following would be implied: 1. Subscription for magazine X = subscription for magazine Y = subscription for magazine Z. 2. The probability of magazine preference (unconditional on location) is equal to the probability of magazine preference (conditional on location). 3. Magazine preferences are uncorrelated with location. a. 1 b. 2 c. 3 d. 2 and 3 e. 1, 2, and 3

24.

The number of degrees of freedom is a. 4 b. 6 c. 7 d. 9 e. none of the above

25.

Suppose the chi-square value for the above test is 15; this will yield a significance level closest to the value a. .1 b. .05 c. .01 d. .005 e. .001

26.

If the null hypothesis were true, the best guess at the number of respondents who prefer magazine X in the Northeast is closest to a. 75 b. 100 c. 125 d. 150 e. none of the above

27.

Accepting a null hypothesis when it is false is called a(n) a. type I error. b. type II error. c. hypothesis error. d. power of the test. e. significance level.

28.

The limitation of chi square as an association measure is

1. it is hard to compare cross-tabulations with different sample sizes. 2. it doesn't indicate how the variables are related. 3. it is difficult to obtain a feel for its value (since it has no upper bound). a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 1 and 2 only

Test Bank Chapter 18

Hypothesis Testing: Means and Proportions

True-False 1.

The p-value can be defined as the largest significance level at which we would accept the null hypothesis.

In a hypothesis test when alpha is pre-specified, the researcher is trying to determine "Is the probability of what has been observed lesser than alpha?" and then decide accordingly.

The greater the p-value, the higher is the researcher's confidence in the research findings.

The p-value is independent of the sample size.

In an ANOVA test, "between-treatment variance" corresponds to the variance in the response variable for different treatments.

In an ANOVA test, "within-treatment variance" corresponds to the variance in the response variable for a given treatment.

In an ANOVA test, if the "between-treatment variance" is lesser than the "within-treatment variance," then the null hypothesis can be rejected.

A good descriptive statistic of measuring the strength of association is to measure "Rho," which is the proportion of variance accounted for in the sample data.

The ANOVA table is a conventional way to present a hypothesis test regarding the difference between several means.

10.

Standard deviation is a measure of spread of data

11.

The choice of the distribution depends only on the size of the sample

12.

There is a trade-off involved between the costs of each of the two kinds of errors

Multiple Choice Use the following information to answer questions 1 - 3 Source of variation Explained Unexplained Total Rho = .20 and there were 9 groups

Sum of squares ? ? 800

Degrees of freedom ? 32 ?

What was the unexplained variation in this study ? a) 80 b) 160 c) 340 d) 640 e) 800

What is the degrees of freedom for the explained variation ? a) 1 b) 8 c) 9 d) 160 e) none of the above

Assume your answer to 1 was 400 and your answer to 2 was 8, what would be the F-value for this data ? a) 0.4 b) 1.0 c) 2.5 d) 20.0 e) 4.0

To measure the difference between means or the difference between independent sample proportions, one would probably use which statistical technique ? a) chi-square test b) sign test c) F-test d) t-test

Which of the following is not an underlying assumption for the ANOVA model ? a) The error effects are normally distributed b) The mean of the error effects is zero c) The variance of the error effects is zero d) The error effects are uncorrelated

In analysis of variance, “sums of squares explained” could be interpreted as being proportional to a) the difference between a group’s mean and a given group member b) the difference between a group’s mean and the overall mean c) the sum of the inter-group and intra-group variance d) the sum of variance between all group members e) none of the above

Use the following data collected in an experiment for questions 7 - 11. Source of variation Explained Unexplained Total 7.

Degrees of Freedom 2 12 14

Sum of Squares 800 2400 3200

How many subjects participated in this experiment? a) 2 b) 12 c) 13 d) 14 e) 15 What is the value of rho from these data? a) .25 b) .333 c) .50 d) .75 e) 2.0

What F-value do you find from this table? a) .25 b) .333 c) .50 d) .75 e) 2.0

10.

If the F-value from this table was .19 and the table value from the back of the book was 3.89, you would a) accept the null hypothesis of independence b) reject the null hypothesis of independence c) accept the null hypothesis that the explained variance = 0 d) reject the null hypothesis that the explained variance = 0 e) none of the above

11.

The F-value you would look up in the back of the book would be found with degrees of freedom F ____, _____. a) 2, 12 b) 12, 14 c) 2, 14 d) 12, 2 e) 14, 2

12.

The “critical region” of a probability sampling distribution is defined by a) a calculated test statistic b) a critical value c) a null hypothesis d) none of the above

13.

A measure of spread of data is called a) standard deviation b) mean c) range d) skewness

14.

The decision rule is a. reject the null and conclude that the product doesn't meet specifications. b. fail to reject the null and conclude that the product meets specifications. c. inadequate sample size and hence conduct a retest. d. standard deviation of the sample to be calculated. e. none of the above.

Use the following information for questions 18 through 21. Jack Enterprises Inc. is a laser printer manufacturer. The board of Jack Enterprises wants to see a perceptible improvement in the quality of the laser printers and specify a defect free production rate of 0.95. The quality assurance manager incorporates some changes in the assembling process and checks a random sample of 225 printers. She finds that only 87% of the printers are defect free. She wants to test the hypothesis that 95% of the printers manufactured by the company are defect free. The significance level has been specified at 0.05. 15.

The hypothesized value of the defect free printers is a. 0.87 b. 0.13 c. 0.95 d. 0.05 e. none of the above.

16.

Standard error of the proportions is a. 0.0145 b. 0.02 c. -0.0145 d. 0.308 e. 0.05

17.

The z test statistic is

a. ñ1.645 b. ñ1.96 c. ñ3.08 d. ñ2.25 e. none of the above. 18.

The limits of the acceptance region are a. (.922, 0.978) b. (.94, 0.97) c. (.86, 0.91) d. (.93, 0.98) e. none of the above.

Test Bank CHAPTER 19 Correlation Analysis and Regression Analysis True-False 1.

Regression is an analysis of dependence technique since it involves a dependent variable as the focus of analysis.

The sole purpose of regression analysis is to predict the level of a dependent variable, given proposed levels of the independent variables.

In regression analysis, the dependent variable is sometimes called the predictor variable.

The model: Y =  + X2 + e hypothesizes a curvilinear relationship between X and Y.

A regression model can accurately predict the level of a dependent variable in a changing market environment.

A least squares criterion minimizes the squared vertical deviations from the regression line.

^ In the expression Y = 5.10 + 27.5X, the estimated value of  = 5.10 and the estimated value of β = 27.5. ^ Y represents the actual level of the dependent variable.

When an understanding of the relationship between X and Y is the motivation behind data analysis, the estimate of the  parameter is of primary importance.

10.

If the standard deviation of X is approximated by s, then the standard deviation of the mean (based on a sample size of n) is s/n.

11.

If the parameter  is zero, the value of b must also always be zero.

12.

When testing the hypothesis that, in fact,  = 0, the researcher is actually testing the hypothesis that the independent variable has no (linear) effect on the dependent variable.

13.

The unexplained variation in Y is estimated by

n ^  (Yi - Y1)2 i=1 14.

The total variation in Y, the dependent variable, can be expressed as the sum of the explained variance, the unexplained variance, and an unknown error.

15.

r2 = Total variation - Unexplained variation Total variation

16.

r2 is the square of the correlation between X and Y and also the ^ square of the correlation between Y and Y.

17.

An independent variable which takes a small number (3 or 4) of discrete values is often termed a dummy variable.

18.

The larger the beta coefficient value, the stronger the effect of that variable upon the dependent variable.

19.

If a variable that is excluded from the model is correlated with an independent variable in the model, the regression coefficient will reflect the impact of the excluded variable on the dependent variable.

20.

A regression model can be used to accurately predict the level of a dependent variable, given extreme values of an independent variable.

21.

In interpreting parameter coefficients,  indicates that if the independent variable X is changed by one unit, the dependent variable Y will change by  units. In multiple regression, we add the constraint that the values of all other independent variables remain constant.

22.

Correlation analysis involves measuring the strength of the relationship between two variables.

23.

The Pearson correlation coefficient measures the degree to which there is a linear association between two intervally scaled variables.

24.

Correlation coefficient implies a causal relationship between variables.

25.

Partial correlation coefficient is the measure of association between two variables controlling for the effect of one or more additional variables.

26.

The error term is not normally distributed is an assumption of the regression analysis.

27.

The difference between the actual and the predicted values in a regression equation is called residuals.

28.

The point estimates b0 and b1 in a regression analysis, tend to increase the total sum of squares.

29.

The knowledge of the regression coefficient and the t value can suggest the extent of association an independent variable has on the dependent variable.

30.

Although the least-squares regression line provides a reasonable fit of the data points, there are some deviations in the sample data about the line.

Multiple Choice 1.

The degree of linear association between two intervally scaled variables is measured by a) Pearson correlation coefficient b) significance level c) analysis of variance d) 

The measures of association represented by r and r2 are a) symmetric b) dependant c) asymmetric d) independent

To examine the association between two variables after controlling for the other variables the researcher should use a) bivariate correlation b) partial correlation c) product moment correlation d) simple correlation

Which of the following is not an assumption of the regression model? a) the error term is normally distributed b) the error terms are independent of each other c) the values of independent variable are fixed d) the independent variable is normally distributed

Which one of the following is the same as standard deviation of regression coefficient? a) sum of squares of errors b) standard error c) predicted value d) standard error of the estimate

In analysis of variance, the hypothesis that the means are equal will be rejected if a) the total mean square error is significantly greater than either the explained or unexplained mean square error b) the total mean square error is significantly greater than the unexplained c) the total mean square error is significantly greater than the explained d) the mean square error explained is significantly greater than the mean square unexplained e) the mean square error unexplained is significantly greater than the mean square explained

Snow Belt Airlines weighed the baggage of 100 passengers and found the mean weight to be 34.2 pounds with a standard deviation of 14 pounds. What is the 95% confidence interval for the actual weight of the baggage ? (Round Z to the nearest whole number) a) 20.0 - 48.2 b) 32.8 - 35.6 c) 31.4 - 37.0 d) 0.0 - 50.0

If you tested a null hypothesis on problem 7, and accepted it, the probability of Type I error would be a) .95 b) .50 c) .10 d) .05 e) zero

In doing the statistical test in analysis of variance problem, you accept the null hypothesis while testing with an alpha = .01. You were later told that you should have tested the null hypothesis with alpha = .05. You should a) change nothing since the outcome is the same b) re-test since the results might change c) accept the null hypothesis since the result is just the opposite with alpha = .05 d) consider taking a larger sample size to decrease alpha e) none of the above

10.

One of the best ways to analyze relationships between two sets of nominal data is by doing a) correlations b) analysis of variance c) regression analysis d) contingency tables e) none of the above

11.

In analysis of variance, if RHO = 0, the explained variance is a) unexplained b) unknown c) total d) zero e) one

12.

A confidence coefficient is denoted by the symbol a)  b) 1- c)  d) 1-

13.

A term used to characterize the relative flatness or peakedness of a distribution of variable values is a) skewness b) kurtosis c) semi-inter-quartile range d) dispersion

14.

There are ______ degrees of freedom associated with a sample variance a) n b) n-1 c) n-2 d) n1- + n2 - 2

15.

A 95% confidence interval means a) a researcher is 95% sure of the study results b) respondents are confident, on the average, of 95% of the answers they give c) chi-square tests are equal to .95 d) 95 out of 100 samples taken from that universe would give results in the interval

16.

A regression analysis has shown that there is a definite, positive relationship between sales (dependent variable) and advertising and sales promotion (all units in dollars). The estimated relationship is sales = (3) advertising + (1) sales promotion + 1,500. Based on the given information a. all marketing resources should be allocated to advertising, if possible. b. all marketing resources should be allocated to sales promotion, if possible. c. the allocation between advertising and sales promotion should be split in the ratio 3 to 1 in all circumstances. d. since both variables exhibit a positive relationship to sales, resources should be allocated equally between sales promotion and advertising in all circumstances. e. none of the above.

17.

Consider the following model: Y =  + X + e. Which of the following statements is not true? a. The model involves one dependent and one independent variable. b. The parameters of the model are Y and X. c. The parameters of the model are  and . d. e represents the error in the model. e. All of these are true.

18.

In the simple linear regression model, Y =  + X + e, a. the errors are assumed to be as likely to occur above the line as below the line. b. the errors are assumed to be more likely to occur above the line than below it. c. the errors are assumed to be more likely to occur below the line than above it. d. it is assumed that the error is larger for larger values of X. e. it is assumed that the error is smaller for larger values of X.

19.

Based on the regression model, ^ ^ If Y = 50 + 25X, where Y = estimated sales level X = advertising

1. the actual sales level, when X = 2, is 100. 2. when X = 3, the estimated sales level is 125. 3. when X = 3, the estimated sales level is 175. 4. when X = 3, the actual sales level is 125. a. 1 b. 2 c. 3 d. 4 e. 1 and 4 20.

^ Consider the estimated relationship: Y = 50 + 50X.

1. The average level of Y, if X = 0, is 50. 2. For each unit increase in , Y will increase by 50 units. 3. For each unit increase in X, Y will increase by 50 units. a. 1 b. 2 c. 3 d. 1 and 2 e. 1 and 3 21.

Consider the following: Y = 20 + 30X Sb = 20 1. The value of t is 1.0. 2. The value of t is 1.5. 3. The evidence suggests that  = 0. 4. The evidence suggests that   0. a. 1 b. 2 c. 3 d. 4 e. 2 and 4

22.

Consider the following:

Variable

Parameter

X1 : Advertising X2 : Store Size X3 : Urban/Suburban

 1 2 3

Regression Co-efficients a = -40 b1 = 10 b2 = -5 b3 = 40

S.E 2 1 15 4

Based on the above information, which of these statements is not true? ^ a. The estimated model is Y = -40 + 10X1 - 5X2 + 40X3. b. The t-value for 2 is -1/3. c. It can be concluded that X3, X1, and X2 have the greatest impact on Y, in that order. d. A unit increase in X2 will result in a decrease of 5 units in the value of Y, when the values of X1 and X3 are held constant. e. All of these are true.

23.

Which of the following data analysis techniques can be termed analysis of dependence techniques? a. Correlation analysis b. Regression analysis c. Multidimensional scaling d. Cluster analysis e. Factor analysis

24.

Data were collected from refrigerator customers on variables relating to purchase frequency, preferences, and demographic characteristics, etc. To aid in marketing strategy formulation, the data were analyzed in various stages. The significant results at each stage were:

Stage 1: A high correlation between refrigerator ownership and the number of years married. Stage 2: Refrigerator customers were divided into three different groups based on their age, income, and years of education. Stage 3: A perceptual mapping of the three groups showed that none of the existing brands was perceived as particularly satisfying by members in group 2. Which of the following sequences of research methods would have helped in giving the results above?

25.

Stage 1

Stage 2

Stage 3

a. Analysis of dependence

Perceptual mapping

Analysis of association

b. Discriminant Correlation analysis analysis

Factor analysis

c. Factor analysis

Regression analysis

Multidimensional scaling

d. Analysis of association

Analysis of Analysis of independence dependence

e. Correlation analysis

Discriminant analysis

Multi-dimensional scaling

A two-dimensional graph in which two variables are plotted is called a a. comparison plot b. double dimensional plot c. scatter diagram d. venn diagram e. none of the above

Test Bank CHAPTER 20

Discriminant, Factor and Cluster Analysis

True-False 1.

Discriminant analysis techniques are used to classify into one of two or more alternate groups based on a set of measurements.

Discriminant analysis can only be used for description and not for prediction purposes.

The statistical explanation for discriminant analysis is that of maximizing the between-group variance relative to the within-group variance.

The group mean, in a discriminant analysis, is known as the centroid.

The underlying assumption in a discriminant analysis is that the independent variables are assumed to be normally distributed.

The objective of a discriminant analysis is to predict the value of the dependent variable based on the values of the fixed independent variables.

Larger values of Wilks lambda indicate that the group means appear to be different.

In discriminant analysis, predictors with a large coefficient contribute more to the discriminating power of the function.

In discriminant analysis, with 'm' groups and 'p' predictor variables, min (p,m-1) gives the number of discriminant functions.

10.

Discriminant analysis and ANOVA are the appropriate statistical techniques for testing the hypotheses that the group means of two or more groups are equal

11.

Regression and Discriminant analyses are conceptually similar

12.

Factor analysis is usefully employed when there is a need to determine the direction of causality between two or three variables.

13.

Factor analysis is usefully employed when it is desirable to combine several questions, thereby creating a new variable.

14.

Each input variable in a study is termed a factor.

15.

A factor is a variable or construct that is not directly observable but needs to be inferred from the input variables.

16.

One function of factor analysis is to identify underlying constructs in the data.

17.

A factor score is a measurement of how closely related each input variable is to a derived factor.

18.

Each respondent has a factor score on each factor in addition to the respondent's rating on the original variables.

19.

Factor loadings are a measurement of the correlations between the factors and the original variables.

20.

One rule of thumb in deciding on the number of factors to retain is to include all factors that explain at least 50 percent of the variance.

21.

Communality is the percent of a variable's variance which contributes to the correlation with other variables or is common to other variables.

22.

The percent of variance explained is a summary measurement indicating how much of the total original variance of all the respondents is represented by the factor.

23.

Rotation of factors changes the interpretation of the factors while retaining the principal component patterns of loadings.

24.

In both principal components analysis and varimax rotation, the factors are constrained to be uncorrelated or geometrically perpendicular.

25.

Varimax searches for a set of factor loadings such that each factor has some loadings close to 0 and some loadings close to -1 or +1. Factor Loadings Variable Factor1 Factor2 1 .9 .4 2 .9 .2 3 .8 .6

26.

The variation in variable 3 is shown to be completely explained by the two-factor solution.

27.

The first factor accounts for more of the variation in the data than the second factor.

28.

An attractive feature of principal components analysis is the easy interpretability of the factors.

29.

After performing a principal components analysis, a researcher finds that the cumulative variance explained by the solution is 0.56. He can increase the explained variance by performing a varimax rotation.

30.

All factor analysis methods constrain the factors to be uncorrelated.

31.

It is always advisable to have as many factors as the number of input variables.

32.

An attractive feature of varimax rotation is that it may retain the variance explained, while reducing the number of factors in the solution (as compared to principal components analysis).

33.

While analyzing and interpreting consumer perception data using factor analysis, a researcher found the factor loading on Factor 1 to be high. However, he could not interpret the factor meaningfully. A probable cause for this situation is computation error or shortsightedness in his interpretation, since a high loading ensures meaningfulness.

34.

Factor loadings and correlations are identical if each variable has its mean subtracted and is divided by its standard deviation.

35.

The ABC Company is involved in trying to segment its market so that it can better design specific marketing programs directed at each segment. One method of segmenting that it might use is cluster analysis.

36.

The basic task in cluster analysis is to uncover competing explanations for a causal phenomenon.

37.

In quick clustering, the first step is to identify the highest entry in each column of a matrix of inter-band (inter-product, etc.) correlations.

38.

Consider the following data:

.75

.15

.25

.16

.75

.08

.56

.23

.15

.08

.62

.25

.56

.27

.16

.23

.62

.27

The following is an accurate graphical representation of the data shown above:

A B D C E Dissimilarity

39.

Simple Euclidean distance is a common measurement of similarity on a perceptual map.

40.

If a clustering procedure starts with one cluster and subdivides until all objects are in their own single-object cluster, the procedure is termed top-down hierarchical clustering.

41.

A nonhierarchical clustering program is one in which objects are allowed to leave one cluster to join another as clusters are being formed if the clustering criterion will be improved by doing so.

42.

A major advantage of cluster analysis is the availability of standard statistical tests to ensure that the output does not represent pure randomness.

43.

Given multivariate data, cluster analysis techniques seek to identify natural groupings of objects.

44.

Nonhierarchical clustering will produce tighter clusters due to the fact that an object will be admitted into a cluster only if it improves the clustering criterion.

45.

Factor is observable that is why it is a variable.

Multiple Choice 1.

When analyzing differences between groups (2 or more) one would use a) cluster analysis b) factor analysis c) discriminant analysis d) conjoint analysis

The simple correlation between the independent variable and the discriminant function is represented by a) discriminant loading b) structure correlation c) total correlation matrix d) centroid

For discrimination to be based on all predictors the most appropriate function estimation method is a) sequential b) direct c) pooled d) stepwise

The analysis technique used to identify variables that contribute to differences in the a prior defined groups is a. regression. b. discriminant analysis. c. conjoint analysis. d. factor analysis. e. multidimensional scaling.

Which one of the following is not an objective of discriminant analysis? a. Determining linear combinations of the predictor variables to separate groups b. Developing procedures for assigning new objects c. Testing whether significant differences exist between the groups d. Determining the variables that explain the intergroup differences e. Predicting the level of the dependent variable when the independent variable is changed.

In discriminant analysis, with M groups and p predictor variables, the number of discriminant functions is given by a. (m-1, p-1) b. (m-1, p) c. (m, p-1) d. (m, p) e. none of the above.

10.

If the primary purpose is data reduction one would use a) cluster analysis b) factor analysis c) discriminant analysis d) conjoint analysis

11.

The amount of variance a variable shares with other variables is called a) communality b) factor loading c) factor score d) none of the above

12.

A plot of eigenvalues against the number of factors is called a) factor loading b) scree c) factor score d) communality

13.

Which of the following methods of clustering uses the “nearest neighbor” approach ? a) complete linkage b) single linkage c) Ward’s method d) average linkage

14.

In factor analysis each subsequent factor accounts for a) increasing amount of variance in data b) decreasing amount of variance in data c) same amount of variance in data d) none of the above

15.

Initial starting points in nonhierarchical clustering is represented by a) cluster membership b) cluster seeds c) cluster centurions d) none of the above

16.

All of the following are true about factor analysis except a. it is a technique that serves to combine questions, thereby creating new variables. b. it is an analysis of interdependence technique that analyzes the interdependence between questions, variables, or objects. c. it is most closely related to multivariate regression and multivariate analysis of variance in the nature of tasks performed. d. it can help the analyst determine which questions, variables, or objects are redundant and what they are measuring. e. all of these are true

17.

Which of the following is true about factor analysis? a. it is a multivariate data analysis technique. b. it can be used by researchers to do cluster analysis and multidimensional scaling. c. it can be used by researchers to identify underlying constructs in the data. d. it can be used to reduce the number of variables to a more manageable set. e. all of these are true.

18.

Consider the following:

Variable

Factor Loadings Factor 1 Factor 2

1 2 3 4 5

-.97 .85 .06 .92 -.05

Communality

.05 .22 .87 .15 .99

.86 .95 .57 .69 .92

Which of the following statements is true? a. Factor 1 is composed of variables 1 and 2. b. Factor 1 is composed of variables 1, 2, and 4. c. Factor 1 is composed of variables 3 and 5. d. Factor 2 is composed of variables 1, 2, and 4. e. None of the above

19.

Consider the following data:

.75

.15

.25

.16

.75

.08

.56

.23

.15

.08

.62

.25

.56

.27

.16

.23

.62

.27

The clusters (using the quick cluster technique) identified by the table above are a. A, B, and D; and C and E. b. A, B, and C; and D and E. c. A and B; and C, D, and E. d. A, C, and D; and B and E. e. None of the above.

20.

The basic assumption of cluster analysis is that 1. It is always possible to group data into well-defined homogeneous groups. 2. The basic measurement of similarity is a valid measurement of proximity between objects. 3. There is theoretical justification for structuring the objects into clusters. a. 1 b. 2 c. 3 d. 1 and 2 e. 2 and 3

21.

Consider the data shown below:

.15

.75

.45

.12

.15

.05

.22

.55

.75

.07

.60

.13

.45

.22

.60

.61

.12

.55

.13

.61

Using the quick clustering technique and a criterion that the average measurement of similarity within clusters be at least 0.60, the following clusters are uncovered for the data shown above: a. A, C, and D; and B and E. b. A and C; and B and E. c. A and C. d. A, C, and D. e. None of the above. 22.

Which of the following is a valid approach to clustering? 1. "Top-down" hierarchical clustering 2. "Top-down" nonhierarchical clustering 3. Piecewise linear clustering 4. "Bottom-up" nonhierarchical clustering a. 1 b. 2 c. 3 d. 4 e. 2, 3, and 4

23.

Which of the following statements are true of the hierarchical approach? I. The approach is relatively easy to read and interpret. II. The output has the logical structure that should theoretically always exist. III. The subsequent analysis is constrained by the first combination or separation of objects. IV. It tends to be more reliable. V. If the program makes a close decision early in the analysis that subsequently proves to be wrong with respect to the clustering criterion, it can be remedied. VI. Split-sample results will tend to look more similar.

a. I and II. b. I, II, III, V and VI. c. I, IV, V, and VI. d. I, II and III. e. IV, V, and VI.

24..

The coefficients that link the factors to the variables are called a. factor loadings b. screes c. factor scores d. eigenvalues e. cluster seeds

25.

The amount of variance in the original variables that is associated with a factor is represented by a. factor loading b. scree c. factor score d. eigenvalue e. cluster seed

Test Bank CHAPTER 21 Multidimensional Scaling and Conjoint Analysis True-False 1.

Multidimensional scaling addresses the general problem of positioning objects in a perceptual space.

Consider the following MDS solution, in which A, B, C and D represent brands of a product class.

Creaminess . A . B .C Sweetness .D

The solution implies that B is sweeter than D but less creamy than A. 3.

Multidimensional scaling involves two steps. First, objects need to be positioned. Second, the dimensions upon which customers perceive or evaluate objects must be determined.

MDS Incorporated has sent out questionnaires to respondents to rank five brands of toothpaste on their ability to clean and whiten, to prevent decay, and to freshen the mouth. MDS Incorporated is using an attribute-based approach.

Two of the approaches used to reduce the number of attributes on which brands of a product are ranked are discriminant analysis and multiple regression analysis.

When there is a need to reduce the number of attributes in a study, factor analysis has an advantage over discriminant analysis in that a significance test can be done of the output of factor analysis.

A few respondents who are unfamiliar with the objects to be mapped should be included in generating a perceptual map to ensure adequate representation of the population.

A source of error results with an attribute-based MDS if the list of attributes is not accurate and complete.

The product "widget" is marketed by ten companies under at least 14 brand names. It is generally agreed that consumers perceive and evaluate the widgets as a whole. Under the circumstances, the results of an attribute-based MDS solution will be more valid than a non-attribute-based MDS solution.

10.

If there are 10 brands of a certain product on which the researcher wants similarity judgments from a respondent, as many as 45 paired judgments can be required. This maximum is determined by the formula n(n - 1) / 2.

11.

The greater the number of objects to be mapped, the smaller the chance of a possibly unique mapping solution.

12.

In a scaling solution, the most frequent trade-off is between minimizing the number of dimensions in the solution and maximizing the degree of fit.

13.

Non-attribute-based similarity MDS solutions have the advantage of producing dimensions that are easy to interpret.

14.

Two objects could be very different in a similarity-based perceptual map, but could be regarded as very similar in a preference-based perceptual map.

15.

If the input to MDS is binary data, is an attribute associated with an object or not? The appropriate MDS technique is called canonical analysis.

16.

If MDS is used to group individuals, the assumption has been made that their perceptions are similar.

17.

An ideal object is one the customer would prefer over all other objects included in the space. An ideal object need not actually exist.

18.

Before introducing a new product, Innovators Incorporated conducted a preference study. The data were analyzed by using an ideal-point MDS solution. The company then designed and introduced a product which was extremely "close" to the target market's ideal point. However, since a new product has been introduced into the space, another study should be done since the ideal point may have been relocated.

19.

In the economic theory of consumer behavior, a basic underlying assumption is that of non-satiation (the consumer would always like to have more). Under this assumption, the ideal object would be represented by an ideal vector or direction rather than an ideal point in the space.

20.

A perceptual map can be obtained from the similarity ranking shown below.

Dimension 2 •B A• 5C

Rank of degree of similarity

C•

•D

Dimension 1

The map shown on the right adequately represents the rankings shown on the left. 21.

Conjoint analysis provides a qualitative measurement of the relative importance of one attribute as compared with another.

22.

When preferences for various attributes are in conflict, conjoint analysis cannot be used.

23.

When each attribute is considered independently, respondents tend to indicate that only a few attributes are important.

24.

In conjoint analysis, respondents are given product concepts on cards and asked to describe the attributes they attach to each concept.

25.

A trade-off is made by giving up some amount of a less important attribute to get more of a more important attribute.

26.

In theory, before respondents can knowledgeably make trade-offs, they must compare different attributes and evaluate the desirability of the various levels of each attribute.

27.

The greater the difference between the highest and lowest valued levels of an attribute, the less important the attribute.

28.

When utilities are summed for each of the concepts being judged, the rank order of these sums should match the respondent's rank ordering of preference as closely as possible.

29.

If all of the possible levels of an attribute have the same utility, the attribute is not important in influencing overall attitude.

30.

One of the applications of conjoint analysis is to the creation of new products with significant consumer appeal relative to competitive alternatives.

31.

In the full profile approach, respondents may be asked to rank order cards with complete product or service configurations.

32.

A limitation in the use of conjoint analysis is the necessity of dividing each attribute level into discrete levels.

33.

The pair-wise trade-off approach produces concepts that are more realistic than those of the full profile approach.

34.

Respondents who are overwhelmed by a ranking task will tend to ignore variations in the less important attributes.

35.

Utility measurements from conjoint analysis can be used to develop marketing simulations.

36.

The independent variable in conjoint analysis is the preference judgment that a respondent makes about a new concept.

37.

A basic assumption of conjoint analysis is that people evaluate a concept by adding up their evaluations of the individual attribute levels of that concept.

38.

Conjoint analysis assumes interaction between attributes.

39.

Conjoint analysis, although intuitively appealing, has been slow to gain acceptance in the marketing research community.

40.

Conjoint analysis has been found to have reliability problems in that different implications tend to arise if the full profile method is used instead of the trade-off approach.

41.

Factor analysis groups attributes that are similar

42.

Discriminant analysis does not provide a test of statistical significance

43.

In MDS, objects cannot be projected onto two, three, four or even higher dimensions.

Multiple Choice 1.

The objective of multidimensional scaling is a) predict buying or usage of product that may still be in concept stage b) to address the general problem of positioning objects in perceptual space c) group individuals or objects into groups d) none of the above

Number of dimensions in an MDS cannot be decided using a) ease of use b) external validity of solution c) interpretability of data d) none of the above

Approaches to MDS involve 1. the study of attribute data. 2. the study of similarity, non-attribute data. 3. the study of preference, non-attribute data. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

Consider the following solution from attribute-based data:

Alcoholic Strength .A .C .E

.F .H

Price

Which of the following is not true? a. Brand A is perceived to be more similar to Brand B than to Brand D. b. The price dimension is a better discriminant than the alcoholic strength dimension. c. Brand C is more expensive than Brand E. d. Brand D is less strong than Brand E. e. None of the above are true. 5. A A B C D E

2 4 6 3 1 7 9 Table 1

A A B C D E Note:

5 8

1.7 2.2 3.5 1.9 1.7 2.8 5.6 9.7 9.0 9.9 Table 2 Both tables have been derived from the same data

The similarity scale was of the type

Which of the following statements is true? 1. Table 1 retains approximately as much information as Table 2 when input to an algorithm. 2. Table 2 contains nonmetric information. 3. The average customer perceives brands D and B as the most similar brands. 4. The average customer perceives Brands D and E as the most similar.

10 e

a. 1 b. 2 c. 3 d. 4 e. 1 and 3 6.

MDS computer algorithms for mapping similarity data 1. convert ranks by degree of similarity into distances. 2. try to use the least number of dimensions to accurately represent the input rankings. 3. try to construct a map so that similar objects are at a maximum distance. 4. always produce a unique map for the input similarity rankings. a. 1 b. 2 c. 3 d. 4 e. 1 and 2

e A . . I1 .B

. I2 .C .D

I1 and I2 represent the ideal points of two market segments. A, B, C, and D represent available brands. 1. B is preferred to D by segment 2. 2. B is preferred to D by segment 1. 3. C is preferred to B by segment 1. 4. C is preferred to B by segment 2. a. 1 b. 2 c. 3 d. 4 e. 2 and 4 8.

Multidimensional scaling attempts to a. map consumers' perceptions and preferences for objects or their attributes. b. provide spatial relationships of objective data. c. map and transform distances. d. evaluate the positive and negative aspects of existing brands of a product. e. provide a perceptual map in the maximum number of dimensions possible.

When using similarity-based MDS techniques, one of the major problems is interpreting the dimensions. The methods for doing this include 1. trial and error. 2. interpretation based on the researcher's insight and experience. 3. correlating the physical characteristics of an object with the object's position on the dimension. 4. increasing the number of dimensions. a. 1 b. 2 c. 3 d. 4 e. 2 and 3

10.

Which of the following is an appropriate use of conjoint analysis? a. To help select the features on a new product b. To help set prices c. To help predict the sales level of a new product d. To help predict the usage level of a new product e. All of these are appropriate uses of conjoint analysis.

11.

Which of the following situations would present difficulty for conjoint analysis? a. A manager wants to present potential customers with a range of attribute levels beyond those available in products on the market. b. Most of the feasible attribute levels for the product being studied do not exist. c. The product being studied is a low-priced, low-risk product, which consumers tend to pick up and buy with little thought. d. The alternative products being studied each have a number of attributes with two or more levels. e. None of the above.

12.

In order to be able to make trade-offs, the respondents must theoretically be able to 1. compare different attributes. 2. evaluate the desirability of the various levels of each attribute. 3. evaluate all the different products on the market on all attributes. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 1 and 2

13.

Which of the following statements is not true? a. Conjoint analysis is termed an analysis of interdependence technique. b. Conjoint analysis requires a respondent to evaluate a concept in terms of overall liking, intention to buy, or rank order of preference compared to other concepts. c. Using conjoint analysis, a researcher can identify optimal levels of attributes for new products. d. Conjoint analysis decomposes the consumer's overall judgment into utilities that represent the worth of each level of each attribute relative to the other levels. e. Total utility of a more preferred combination of attributes

should always be greater than the total utility of a less preferred combination. 14.

Collecting trade-off data with the full profile approach a. requires presentation of all possible combinations of attribute levels. b. cannot be done by mail questionnaire. c. requires respondents to rank each combination of levels of two attributes from most preferred to least preferred. d. often requires more judgments than the trade-off approach (two attributes simultaneously). e. none of the above.

15.

Which of the following statements concerning the full profile approach is not true? a. It provides a more realistic description of the concepts since all aspects are considered at the same time. b. It yields a somewhat higher predictive validity than does the trade-off approach. c. The concept evaluation task can employed either a ranking or a rating scale. d. Fewer judgments have to be made by the respondent than if a two-attribute, trade-off approach were used. e. All of these are true.

16.

Given the following utility graph developed from a conjoint analysis, which statement is true?

.9 .7

Utility .3

.5 .4

Price

$ 3 0 0 0

$ 4 5 0 0

$ 6 0 0 0

Miles per gallon

a. The utility of a car costing $3,000 and doing 30 mpg is .54. b. Price is a less important attribute than mpg. c. The utility of a car costing $3,000 and doing 30 mpg is less than 1. d. An advertising campaign should stress mpg instead of price. e. None of the above are true. 17.

An approach in which the respondents are given cards that describe complete product or service configurations is called a. Trade off approach b. Full profile approach c. Conjoint analysis d. Direct approach e. None of the above

Test Bank CHAPTER 22

Presenting The Results

True-False 1.

The content of a particular marketing research presentation should be the same, regardless of the composition of the audience, in order to ensure uniform communication.

The material to be included in a presentation and the level of that presentation should be dictated only by the methodology of the study.

An appendix can be used to present technical material that would not be appropriate for all members of an audience.

Because some studies are not conducive to tight organization, a research presentation need not always have an introduction, a body, and a summary.

A road map to the presentation should be part of the summary.

A presentation should address issues of validity and reliability.

The audience should have a feel for the reliability of the research results. At least, the audience should know what sample size was involved.

Adherence to the adage, "Tell the audience what you're going to say, say it, and then tell them what you said," results in tedious presentations and is not recommended for marketing researchers.

If an audience is motivated by a presentation then the presenter can disrespect the audience’s time constraints.

10.

It is advisable to admit to the audience that you are feeling nervous or shaky when starting a presentation.

Test Bank CHAPTER 23 Marketing-Mix Measures

True-False 1.

Need research is concerned with finding out how latent consumer needs can be aroused or how new needs can be created.

ABC Incorporated feels that there is a need for a new kind of vacuum cleaner in the market. To generate new product concepts, they have decided to invite twenty to thirty consumers to discuss the problems associated with the product-use situation. ABC is using benefit structure analysis to generate new product concepts.

If more than one unsolved problem or unsatisfied need is uncovered during the product-concept-generation stage, marketers usually try to develop a different product to meet each of those needs.

All new product concepts are generated or identified as a result of uncovering unsatisfied needs or unsolved problems.

To test a new product concept, the researcher must obtain reactions from prospective customers.

Merging several concept alternatives into one test is inefficient, since it confuses respondents and results in inconclusive comparisons.

In most cases, the dominant purpose of the concept test is a go/no-go decision based upon intention-to-buy response.

It is generally expected that a concept test will prove that a concept is sound or faulty or will demonstrate definitively how it should be altered.

The results of a product test are potentially more valid and reliable than those obtained in a concept testing situation, and for this reason an organization can justify a more complete and elaborate test.

10.

Test markets can be monitored to track competitive reactions and their impact on the market response.

11.

Strong evidence that a product will be successful should exist before a test market is attempted.

12.

Fast-Buck Incorporated manufactures spin-off products in connection with popular events (e.g., the Pope's visit, a hit movie). Their major product is T-shirts. To ensure good sales and consumer acceptance, Fast-Buck should conduct test markets before they launch each of their products nationally.

13.

When selecting areas for test markets, efforts should be made to test market in the minimum number of areas necessary to satisfy representation and validity requirements.

14.

If only a small number of test areas is to be used, a random sample will usually be risky, and the preferred approach is to select the areas judgmentally.

15.

For a consumer product test market which is to be projected nationally, it is generally recommended that a large number of randomly dispersed markets that cover 30-40 percent of the entire United States be selected to achieve meaningfully precise predictions.

16.

ABC Incorporated is test marketing a product in some midwest cities. Salespeople in that area have stepped up their sales effort to ensure the maximum possible sales. The results of the test market can reliably be projected to the entire midwest region.

17.

In selecting test cities, a researcher should consider the degree to which a city is isolated from outside media.

18.

The disadvantage of store audit data in providing accurate sales figures is that it is sensitive to inventory fluctuations.

19.

The disadvantage of a controlled test market is that it is not conducted under "ideal" conditions.

20.

A pre-emptive roll-out would be an appropriate alternative if there is considerable uncertainty about a product's chances of success.

21.

The laboratory test market includes a simulated store where respondents who have been exposed to advertising are asked to make purchases.

22.

In a laboratory test, market repeat purchase is estimated by asking people after they try the new brand if they want to repurchase it.

23.

In comparison to test markets, laboratory test markets are relatively expensive but they are faster and more variables can be tested.

24.

A basic ASSESSOR test costs under $50,000.

25.

Test market results were compared with laboratory test market results for 44 products. The average absolute difference between laboratory test market share prediction and actual values was between 1 and 2 market share points.

26.

The number of new product introductions in 1984 was over 3,000.

27.

A CDSM (controlled-distribution scanner market) provides no test of a new product's ability to gain distribution.

28.

A CDSM (controlled-distribution scanner market) costs about the same as a full test market but provides much more control and the flexibility to do more experimenting.

29.

The most accurate way to project trial-and-repeat purchase in a test market is by using panel data where the purchase and repurchase decisions of individual consumers can be monitored.

30.

Estimates of market share are generated by multiplying the trial rate projection by the repeat rate projection.

31.

The laboratory test market for automobiles includes a simulated deal visit where a respondent interacted with a salesperson.

32.

The laboratory test market for automobiles caused Buick to decide not to replace the old model.

33.

IRI Behavior Scan has around 3,000 panelists in their test cities who carry ID cards which are used to record their purchases at

supermarkets. 34.

A forecast by geographic area might prove useful in warehouse stocking decisions or in evaluating regional forecasts.

35.

The jury of executive opinion is the most widely used technique in industrial product companies and second most widely used technique in consumer product companies.

36.

Forecasts that are generated from the sales force are based upon the salesperson's knowledge of the customer, which is likely to be complete, sensitive, and current.

37.

If a forecaster wants to take advantage of the experience and knowledge of experts, but also wants to avoid group effects, she should use the executive judgment approach.

38.

In a linear or straight-line trend projection model, growth is assumed to be at a constant percentage rate.

39.

The function of Y = aebt cannot be estimated by using linear regression programs, since the independent variable, t, is an exponent.

40.

For a lot of electronic games, it is found that the product life cycle involves an introduction stage, a rapid growth stage, and finally, a maturity stage. For such products, the most likely best-fitting equation would be of the form: Y = aebx, b > 1.

41.

While developing a forecast of sales for 1979-80, ABC Company managers felt that events in the recent past had a much higher similarity to the expected future conditions than those in the more distant past. Assuming that this premise is correct, exponential smoothing would provide a better forecast than a simple moving average.

42.

If a forecaster uses an average of n data points instead of just the last data point, he is using moving averages.

43.

Wheels Incorporated, a bicycle manufacturer, is developing a sales forecast for the coming year. A plot of past years' sales data is shown below:

Sales

1968

44.

1970

1972

1974

1976

1978

Considering the graph above, it would be advisable for Wheels to disregard all of the data before 1974 and base their forecasts on subsequent data only. One of the ways to remove seasonal effects from time series data is to consider quarterly moving averages.

45.

Time series models assume that the future will be same as the past.

46.

Time series studies would prove most beneficial when we want to

forecast the acceptance and sales of an innovative product. 47.

If causal factors can be identified and linked to the forecast, they can be used to help predict turning points.

48.

A major advantage of using causal models over time series models is that, unlike time series models, the former do not solely rely on historical data.

49.

In forecasting demand for a product, it may be useful to forecast initial purchases and replacement purchases separately.

50.

In the Gaber and Grainer method of pricing research, a buy response curve of different prices with the corresponding number of affirmative customer purchase intentions is produced.

51.

In a profit oriented pricing strategy, the objective is to generate as much profit as possible in the current period.

52.

The information requirements for share oriented and profit oriented strategies are the same.

53.

If a firm discounts its price in the other markets below its average cost, then it is said to follow a second market discounting strategy.

54.

When consumers in the market are willing to pay more for a product despite lack of knowledge regarding the product quality, then price signaling cannot be used.

55.

Price bundling is a viable pricing option for non-substitutable, perishable kinds of products.

56.

When a car manufacturer sells cars at a lower price and prices the spare parts higher, it is said to follow complementary pricing strategy.

57.

The Bruzzone Research Company tests recall of commercial content.

58.

In the Bruzzone Research test, over 70% of those recognizing the commercial can correctly select the correct brand from the list of three.

59.

A Communicus differs from Bruzzone because it measures recall instead of recognition.

60.

The Starch noted score is the percentage of respondents who claim to have seen the ad.

61.

The Starch method has been used since before 1925.

62.

Average recognition levels will vary across product classes.

63.

DAR measures have been used since before 1925.

64.

In DAR, a viewer is not recorded as recalled the ad unless he or she can recall something specific about it such as the plot or sales message.

65.

DAR would not be classified as an "on-air" test.

66.

DAR is a particularly good measure of "feeling" commercials.

67.

The average DAR is under 30.

68.

In the McCullum/Speilman test, the pre- and post-preference measure is different for different product classes.

69.

In the McCullum/Speilman test, the A/C (Awareness/Communication) measure is a better predictor of campaign success than the AS (Attitude Shift) measure.

70.

The BUY score in the Buy Test design is based upon an intention-tobuy question.

71.

Mapes & Ross is an "on-air" test.

72.

An "on-air" test is conducted in a theatre where a group of viewers are exposed to a set of commercials.

73.

In the ASI Apex test, the before-exposure brand preference measure is different from the after-exposure brand preference measure.

74.

Burke DAR is a customized test.

75.

The Chevron print ads on profitability helped to change the attitude toward Chevron.

76.

In the Behavior Scan Split-Cable testing, for each member of a panel of 3,000 people in each test town, each supermarket purchase is known, in addition to what channel their TV sets were turned to at all times.

77.

Split-cable is the most valid copy test method and is thus the most frequently used test.

78.

A test of a commercial mock-up will always be less useful than a test of a finished commercial.

79.

The response to a copy test should be relevant to the campaign objectives.

80.

The more natural the exposure setting, the more valid the copy test will be.

81.

Repeated applications of a copy test such as McCullum/Speilman would be termed a tracking study.

82.

In the tracking study of the children's ad campaign, the measures turned up in year 5 when situations from real life were used.

83.

In the TEC Audit, each woman in a panel of 3,000 keeps a record of all television commercials that she sees during one day each month.

84.

In the TEC Audit, the basic measure is a shift in purchase behavior.

85.

One study shows that focus groups are used over 95% of the time to generate ideas of advertisements.

86.

Open-ended reactions of commercial viewers can uncover unintended associations.

87.

Eye movement machines are used to measure ad recall.

88.

Physiological measures such as GSR are used to measure emotional response.

89.

Continuous measures of liking of commercials are provided by the ASI theater test.

90.

Advertisers are more likely to run reduced level budget split-cable tests than increased levels because of the potential to save money.

91.

A serious problem in field experimentation is the willingness of competitors to deliberately distort the test with a special promotion or other device.

92.

Split-cable testing of budget levels usually cost under $100,000.

93.

In the through-the-book method, a respondent is asked whether he or she looked at a copy within the past week of a weekly publication.

94.

Time does better with the through-the-book approach than Newsweek because it tends to get more serious, thorough readership.

95.

Television audience size is estimated by a panel of homes that agrees to be monitored by a GSR measure.

96.

A major problem with the audimeter is that it does not provide information as to who is viewing the set.

97.

The center of gravity method of simulation can be used for locating a single warehouse or retail site.

98.

The center of gravity method can be used to cope with the complexities involved in the location and number of warehouses.

99.

The location allocation model can be used to allocate demand to each potential site/store design combination.

100.

The analogous location method involves generating a relationship between store turnover and population characteristics.

101.

Total Quality Management is a business philosophy that tends to use quality improvement as a competitive advantage.

102.

Competitive benchmarking is comparing the company's processes, practices, and products against the world's best companies, including those from other industries.

103.

Total Quality Management is restricted to the quality assurance and quality control departments in an organization.

Multiple Choice 1.

Which of the following lists all the stages of the new product research process? a. Generation of new product concepts, evaluation and development of actual products, testing the marketing program. b. Generation of new product concepts, development and evaluation of new product concepts, development and evaluation of actual products, testing the marketing program. c. Development and evaluation of new product concepts, development and evaluation of actual products, testing the marketing program, launching the product nationally. d. Generation of new product concepts, evaluation and development of new product concepts, evaluation and development of actual products, launching the product nationally after a test market. e. None of the above.

Which of the following is not always a required stage in the new product research process? a. Generation of new product concepts b. Evaluation and development of new product concepts c. Evaluation and development of actual products d. Test marketing the newly developed product e. All of these are required stages

A major tennis manufacturer, after analysis of life style and demographic data, believes that by 1996, 60 percent of the women in America will be actively involved in sports. It has, therefore, started to develop a whole new line of sports equipment for women. The tennis manufacturer has identified a new need by a. using perceptual maps. b. studying social and environmental trends. c. benefit structure analysis. d. analysis of relevant portions of consumer diaries. e. conducting focus group interviews.

XYZ Incorporated is in the process of developing a new product. They currently have a verbal description and a rough idea of the brand name, packaging, and advertising approach. The next stage in the process would be a. generation of a tangible product concept. b. evaluation and development of the new product concept. c. evaluation and development of the actual product. d. pilot production and test marketing. e. test marketing.

Try-Harder Incorporated is in the process of developing a new product. The research questions which they are trying to answer are: (a) are there any major flaws in our concept, and (b) is there enough interest to warrant further development? Try-Harder is in a. the concept generation stage. b. the concept evaluation and development stage. c. the evaluation and development of the actual product. d. the production "debugging" stage. e. none of the above.

It is felt that exposing people to a concept is necessary in the evaluation and development stage. Which of the following is not one of the important research questions that need to be answered at this stage? a. How should the concepts be exposed? b. To whom should the concepts be exposed? c. What level of sales will we need to break even? d. To what are the new concepts compared? e. All of these are important research questions that need to be answered at this stage.

ABC Incorporated has developed a revolutionary concept for a new kind of typewriter. They are now in the process of testing the concept. To judge the potential of the concept, they should expose it to 1. chief executive officers in industrial organizations. 2. secretaries working in industrial organizations. 3. purchase officers in industrial organizations, since they will place the orders. a. 1 b. 2 c. 3 d. 1 and 3 e. 1, 2, and 3

XYZ Incorporated has developed a concept for a new kind of lathe machine. The improvement is a highly technical one, and although the operation of the lathe will remain as it is now, its reliability and energy consumption will improve. To test the concept, it should be exposed to 1. the production engineers of potential industrial buyers. 2. the quality control managers of potential industrial buyers. 3. workers on the shop floor, since they will be using the new lathe. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3

Hot 'n Serve Corporation has developed a new flavor of powdered soup. They are now giving free samples of the soup to every tenth customer who enters the local shopping mall. Those who get a packet of soup are asked to mail in their assessment of the soup by using an enclosed postage-paid card. Hot 'n Serve is 1. in the product evaluation and development stage. 2. employing the use testing method to assess their new product. 3. in the concept development stage. a. 1 b. 2 c. 3 d. 1 and 2 e. 2 and 3

10.

Which of the following is a problem with the use test method of evaluating a new product? a. Respondents may not use the product correctly, resulting in negative opinions. b. Respondents may give distorted impressions since they were given free samples and are part of a test. c. The decision environment of an actual purchase usually cannot be replicated, resulting in misleading results. d. Repeat buying over a period of time usually cannot be assessed. e. All of these are potential problems.

11.

Which of the following statements about ASSESSOR is true? a. It provides results faster and less expensively than a test market. b. It offers a good deal of flexibility in the selection of the marketing variables to be studied. c. It assumes that preference data and purchase and repurchase decisions are valid predictors of what would actually happen in the marketplace. d. It is a laboratory test market method. e. All of these are true.

12.

Which of the following is not true of test marketing? a. It improves a manager's knowledge of potential product sales. b. It allows companies to pretest alternative marketing plans. c. Test marketing is a must for all products in today's competitive environment. d. Companies may discover product faults that escaped notice in the product development stage. e. The results of test marketing may be distorted by improper methodology.

13.

Parker Foods has just developed a new product. What factors should Parker Foods consider in deciding whether to use a test market for the product? a. How disruptive actions by competitors might be to the completion of a valid and reliable test. b. How easily the new product could be copied by competitors. c. How expensive a test market would be compared to immediate commercialization. d. All of these. e. None of the above.

14.

Which of the following are possible measurements for evaluating consumer product test markets? a. Warehouse withdrawals b. Store audits c. Shipments d. Trial purchase e. All of these

15.

Forecasts can differ by a. time periods. b. objects. c. segments. d. product maturity. e. all of these.

16.

The XYZ group, in preparing a forecast for the upcoming sales period, is seeking the judgments of a group of managers. Which of the following is true? a. The approach being used is termed a jury of executive opinion. b. The approach being used is fast and effective. c. The generated forecast will be timely. d. A major disadvantage is that the forecast will most likely be biased. e. All of these are true.

17.

The XYZ Company solicited sales potentials and the probabilities of their occurrence from its salespersons. The data they received can be summarized as follows: Potential Probability $150,000 .2 175,000 .3 200,000 .3 225,000 .2

Based on the data, the expected level of sales for the upcoming period is a. $175,000. b. $187,500. c. $187,000. d. $200,500.

e. $200,000. 18.

If a company decides to price its products at a point at which the profits are the greatest until the changes in the market conditions or supply costs dictate a price change, then the company follows a a. share oriented strategy. b. profit oriented strategy. c. product oriented strategy. d. market oriented strategy. e. none of the above.

19.

When a company produces an inferior product and sells it at the same price as the better quality product of another firm, in the belief that consumers will equate the inferior product with high quality, then the company follows a _______________ pricing strategy. a. price signaling b. second market discounting c. premium d. penetration e. random discounting

20.

When a computer manufacturer sells its products with all the available options, it is said to follow a(n) a. complementary pricing strategy. b. price bundling strategy. c. options pricing strategy. d. substitution pricing strategy. e. none of the above.

21.

Which of the following is not a problem associated with Use Testing? a) Respondents may fabricate opinion without having ever used the product b) The free sample may distort opinions c) Respondents may not be aware of the product benefits d) Realistic store situations may cause buyers to be favorable to other brands

22.

A desirable characteristic for a test city would be a) high average household income b) large percentage of double income families c) representative of the markets targeted d) higher number of working women

23.

Which of the following research methods provides a test of recognition? a. Burke DAR b. Starch c. McCullum/Speilman d. Buy Test e. Mapes & Ross

24.

Which of the following research methods provides a test of purchase behavior? a. Burke DAR b. Starch c. McCullum/Speilman d. Behavior Scan e. Mapes & Ross

25.

Which of the following research methods provides a test of brand preference? a. Burke DAR b. Starch

c. McCullum/Speilman d. Bruzzone e. None of the above 26.

Which of the following research methods provides a test of recall? a. Burke DAR b. McCullum/Speilman c. Mapes & Ross d. Two of these e. All of these

27.

A copy test will be more valid if a. the exposure is at home rather than in a theater. b. the commercial is embedded in a program instead of a mock-up. c. a finished commercial is used instead of a mock-up. d. two of these. e. all of these.

28.

Which of the following techniques can be helpful in making the budget decision? a. Tracking studies b. Field experimentation c. Split-cable testing d. Two of these e. All of these

29.

Regression analysis of historical data to determine the budget level is difficult because a. it is a difficult technique to work with. b. there is often little historical variation in advertising. c. sales may actually cause advertising instead of the reverse. d. two of these. e. all of these.

30.

When respondents are asked the number of issues out of the last four they personally read or looked at, which print audience measurement technique is being used? a. Recent-read b. Through-the-book c. Reading-habit d. Issue-reading e. None of the above

31.

The diary panel, used to provide information about television viewing about individuals in a household, suffers from the following problem: a. People may fill it out inaccurately. b. The cooperation rates among younger people is relatively low. c. It is more inaccurate for prime time shows. d. Two of these. e. All of these.

32.

33.

34.

35.

36.

Which of the following are possible measurements for evaluating consumer product test markets? a. Warehouse withdrawals b. Store audits c. Shipments d. Trial purchase e. All of these

37.

Even though a product may be superior in the laboratory, the consumer may not perceive it to be superior. What type of testing should be used to test this hypothesis a. virtual product testing b. use testing c. blind-use testing d. predicting trial purchase e. none of the above

38.

______________ can be used to generate a relationship between store sales and a range of store, population, and competitor characteristics. a. Gravity model b. Multiple regression model c. Analogous location method d. Sales effort approach e. Field experiments

39.

If a distributor offers a steep temporary price cut to retailers in order to sell excess inventory, this type of promotion is called a. Cooperative promotion

b. c. d. e. 40.

Trade promotion Promotion partnership Retailer promotion None of the above

Really new products are those that: 1. Create or expand a category 2. Require substantial learning 3. Raise broad issues 4. Create a need for infrastructure

a. 1 and 4 only b. 2 and 3 only c. All of the above d. None of the above 41.

A systematic effort to effect continuous quality improvements in the processes, products, services, and human resources throughout the organization is

a. total quality management. b. customer satisfaction research. c. relationship marketing. d. productivity improvement. e. brand equity. 42.

The process of managing complex changes in the organization with the aim of improving quality is called a. Total Quality management b. Benchmarking c. Brand extension d. Brand control e. None of the above

43.

The power of measurements is clearly visible in applications of a. Total Quality management b. Benchmarking c. Quality function deployment (QFD) d. Brand extension e. None of the above

Test Bank Chapter 25

Contemporary Applications of Marketing Intelligence

True-False 1.

A market based competitive assessment is a direct comparison with a few target competitors.

A process based competitive assessment is evaluating the processes employed by the company to compete in the marketplace.

Brand equity is defined as a set of brand assets and liabilities linked to a brand that add to or subtract from the value provided by a product or service to the firm's customers and/or to that firm's customers.

A dollar metric scale is a survey device that provides a direct measure of the value of the brand name.

Customer satisfaction measures attempt to provide a quantitative interpretation of customers' feelings and attitudes in response to their experiences with a company's products/services.

Total Quality Management is a business philosophy that tends to use quality improvement as a competitive advantage.

Competitive benchmarking is comparing the company's processes, practices, and products against the world's best companies, including those from other industries.

Total Quality Management is restricted to the quality assurance and quality control departments in an organization.

Relationship marketing centers on developing a continuous relationship with consumers, on a one-to-one basis, across a family of related products and services.

10.

Integrated marketing communications is the process of developing and implementing various forms of persuasive communications programs with customers and prospects over time.

11.

The impetus behind integrated marketing is the realization that the company's products and services exist to increase company profits and maximize shareholder value.

12.

Brand-equity assets don’t have the potential to provide a brand with a price premium

13.

It is impossible to measure price premium through customer research

14.

Price premium for a brand is the only way to quantify brand equity

15.

The use of mass media to create brands is still considered the correct way to build brands.

16.

Customer-centric marketing that would build mutually beneficial relationships over time using all points of interaction.

17.

A delighted customer costs less to service, stays longer and buys more.

18.

Delighted customers need an incentive to repurchase a product or service.

18.

Marketing Intelligence increases potential value of a customer who has a positive customer service experience.

19.

Buyer-centric organizations focus only on maximizing sales and margins.

20.

In Buyer-centric marketing, buyers take center-stage and they spell out their needs.

21.

Marketing Intelligence tools provide a wealth of information related to track customers’ buying patterns, individual preferences and satisfaction levels.

22.

Efficiency and profitability of corporations do not always translate into corresponding value addition for consumers.

23.

In addition to increased value and profits, Buyer-centric companies focus on consumer information, attention and emotional commitment.

24.

Perceived quality is a dimension of brand equity

25.

In order to maximize profit companies need to target its loyal customers as they are always profitable

26.

Prevention of attrition of customers is an equally important task like customer acquisition in a firm’s customer management strategy

Multiple Choice 1.

Which one of the following does not pertain to a market based method of assessing competitive advantage? a. Market share b. Recall share c. R&D share d. Relative cost comparison e. Advertising share

Which one of the following does not pertain to a process based method of assessing competitive advantage? a. Marketing skills audit b. Recall share c. Comparison of winning versus losing competitors d. Relative costs comparison e. Identifying high leverage phenomena

Which one of the following does not represent an asset underlying the equity of a brand? a. Brand loyalty b. Name awareness c. Perceived quality d. Cost of the brand e. Proprietary assets such as patents, trademarks, etc.

A systematic effort to effect continuous quality improvements in the processes, products, services, and human resources throughout the organization is a. total quality management. b. customer satisfaction research. c. relationship marketing. d. productivity improvement. e. brand equity.

Relationship marketing incorporates: 1. identifying and building a database of current and potential customers. 2. delivering differential messages to the consumers through established media channels. 3. Tracking the relationships to monitor the cost of acquiring the consumer. a. 1 b. 2 c. 3 d. 1 and 2 only e. 1, 2, and 3

A survey that provides a direct measure of the brand name’s value is called a. Excess-price approach b. Market-based assessment c. Dollarmetric scale d. Trade off analysis e. None of these

The power of measurements is clearly visible in applications of a. Total Quality management b. Benchmarking c. Quality function deployment (QFD) d. Brand extension e. None of the above

Which of the following are benefits of Buyer-centric marketing? a. Opportunities from new growth sectors b. Increased value of the corporation and its assets c. Reduced marketing research expense since customers specify needs d. Enhanced trust with customers e. All of the above

10.

A Buyer-centric organizations’ approach to offering products and services include a. Providing solutions that empower customers to make informed decisions. b. Providing solutions that closely reflect customer preferences c. Helping customers to maximize efficiency, productivity and marketable value of personal assets d. All of the above

11.

The percentage of customers who name the brand that comes to their mind when considering buying a particular type of product is referred to as a. Market share b. Recall share c. Advertising share d. R&D share

Test Bank Chapter 25

Database Marketing, E-Commerce, Relationship Marketing, And Customer Intelligence

True-False 1.

Through database technology, an organization can at last identify its loyal customers, its repeat purchases, and its one-time only " triers" in well-defined market segments

With a database, marketers cannot profile prospective customers

Primary data is the only means by which information on customers can be selected.

Information on recency and monetary value of purchases is enough to identify most profitable customers.

All customers are appropriate targets for relationship marketing.

One should only solicit only those segments whose expected responses rates are Below the break even rate

Direct contact with customers is not required for real-time marketing.

Database enhancement can substantially increase the amount and quality of information held on each customer

The entertainment component of e-commerce is more developed than many of its functional aspects.

10.

A direct seller has the ability to build a profile of customer choices based on a much Wider array of businesses than an on-line intermediary.

11.

Brand asset is much more important than a customer database.

12.

Customer DNA is an approach for understanding and measuring customers’ specific needs and wants.

13.

Customers who are the most profitable always hold the maximum number of products.

14.

Information pertaining to customer habits, preferences helps to identify the most and the least profitable customers.

15.

“Mining” raw customer data, available with companies, using data modeling and analysis techniques produces “Actionable Customer Intelligence”.

16.

A company’s strategy should be uniform for the entire customer group.

17.

‘Buyer-Centricity’ focuses on what products and services that sellers would be interested in selling to customers.

18.

Customer equity of a firm is the total economic worth of a firm’s customer asset.

19.

A rewards program gives points for buying goods and services and something that can be accumulated over time and redeemed for a benefit in the future

20.

Segmentation profiles most and least profitable customers into groups

21.

CLV is a powerful tool for profile analysis

22.

Mobile Marketing is an effective communication channel for companies to connect with each individual of their customers

23.

Social media is a new and powerful tool to increase customer values and company’s profitability

Multiple Choice 1.

A database can be used a. To profile customers b. To maximize personalization of promotional plans for customers c. To develop products that match the customer’s needs d. a,b and c e. a and b

The rule followed in soliciting members of a database is on the basis of a. Majority of the members be concentrated in a given area b. Most recent purchase c. Least cost of marketing d. Breakeven response rate e. None of the above

The most important element to building a successful business is a. Soliciting new customers b. Maintaining exhaustive databases on purchase patterns c. Targeting the right consumer segment d. Managing and retaining existing customers e. None of the above

Relationship marketing involves a. Identifying and building a database of customers b. Delivering differential messages to different segments of customers in the database c. Tracking costs for each relationship d. a and b e. a,b and c

The use of statistical models for analyzing customer databases serves the following purpose(s) a. Identifying typical customers b. Can rank order the prospects from best to worst c. Helps to score a prospect list d. All of the above e. and b

Some of the disadvantages of the sales force composite forecasting method are that 1. the approach suffers from subjectivity. 2. the estimates could be biased because of the natural tendencies of individual salespeople to be optimistic or pessimistic. 3. the degree of bias introduced into the forecast would probably increase if the forecast were linked to the salesperson's performance record. a. 1 b. 2 c. 3 d. 1 and 2 e. 1, 2, and 3 Which of the following is not a qualitative method of forecasting? a. Jury of executive opinion b. Time series projection c. Sales force composites d. Delphi forecasting e. None of the above

The survey of customer intention approach 1. is based upon customers' stated buying intentions. 2. can become expensive and time-consuming. 3. is more suited for a manufacturer of aircraft components than for a manufacturer of a consumer product with many more products. a. 1 b. 2 c. 3 d. 1, 2, and 3 e. 2 and 3

For a time series forecasting to be appropriate, it is necessary that

I. at least two series of data be available. II. the future is assumed to be like the past. III. at most, a minimum amount of environmental change will occur during the forecast period. IV. a large random element be in the data. V. detectable patterns or trends be in the data. a. I and II. b. II, III, and V. c. I, II, III, and IV. d. II, III, IV, and V. e. all of these. 10.

After analyzing past sales data, the XYZ Company found the following equation to be best-fitting:

Sales ($millions) = 8.1 + .68St-1, where St-1 = previous years' sales

Which of the following is not true? a. The relationship between sales and time is linear. b. Sales are growing by a constant amount each year. c. Sales are growing at a constant percentage rate each year. d. If sales in 1983 were $12,000,000, then sales in 1984 will be about $16,260,000. e. All of these are true.

11.

The trend shown above is best represented by a. Y = aebx, b > 1. b. Y = aebx, b < 1. c. Y = a + bt. d. 1 Y=

, b > 1. a + be-t

1 Y=

, b < 1. a + be-t

12.

Consider the following data:

Quarter 1 2 3 4

Sales of Hot Dogs (in Thousands) Seasonally Adjusted Sales Seasonal Index 150 .7 A .9 170 1.3 175 b

Actual Sales 105 144 C 192.5

I. a = 160, b = 1.1, c = 221. II. a = 150, b = 1.1, c = 225. III. Sales of hot dogs show an upward trend. IV. If the seasonally adjusted forecast for next year's second quarter is 180,000 hot dogs, the actual sales will be 234,000. Which combination of the statements is supported by the data above? a. I, III, and IV. b. II, III, and IV. c. I and IV. d. III and IV. e. I and IV.

13.

ABC Incorporated has been using the following model: S = 50 - 0.05M + 0.04H + 1.22D - 19.54T

where S = annual sales M = annual number of marriages H = annual housing starts D = disposal income T = time in years During a recent appraisal, they found that sales could be better predicted by considering the previous year's sales and the number of housing starts two years previous. Which of the following statements is true? [Note: Disregard the absolute values of the coefficients.] 1. The new model should be of the form S = 49.85 - 0.05M + 0.04Ht-2 + 1.22D - 19.54T 2. The new model should be of the form S = 49.85 + 0.37St-1 + 0.03Mt-1 + 0.67D - 11.03T 3. The new model should be of the form S = 49.85 - 0.05M + 0.04Ht-2 + 0.37St-1 + 1.22D - 19.54T 4. Last year's housing sales is an independent variable in the revised forecasting model. a. 1 b. 2 c. 3 d. 4 e. 3 and 4 14.

A limitation of time-series models which is taken care of by causal models is a. they give weightage is given to more recent data b. they take into account future events which could have an impact on the market c. they are easy to understand d. they are very accurate

15.

One can eliminate duplication between and among the lists and identify “hotline names” by a. overlaying multiple databases b. negative screening c. duplicate screening d. None of the above

16.

The process of analyzing data from different perspectives and summarizing it into useful information is called ________ . a. negative screening b. duplicate screening c. data mining d. Data Validation e. None of the above

17.

Customer data analysis focuses on a. Customer acquisition – finding the new customer b. Customer cross sell – further sales to the same customer c. Customer up sell – the customer makes greater use of the same product or service d. Customer retention – keeping the customer loyal e. All of the above

18.

Data modeling and analysis techniques involves all of the following EXCEPT: a. Use of people, processes and systems b. Use of tools such as customer profiling, customer segmentation, customer profitability, predictive modeling, etc. c. Formulating uniform strategy across all customer groups d. ‘What-if’ analysis e. Customer profitability profiling

19.

A reason for increased popularity of online shopping would be: a. Wider selection b. Better Prices c. Ability to shop at any time d. All of the above

20.

Calculation of Customer Lifetime Value (CLV) provides a framework for

a. b. c. d. 21.

Purchase sequence analysis Optimizing the timing of product offerings. Profile analysis to target prospects All of the above

The reasons for using mobile phones for marketing are: 1. Can be used in many places 2. Can elicit immediate response 3. Has personal attention 4. Ability to use various phone features for communication a. b. c. d.

1 & 2 only 3 & 4 only All of the above None of the above

22.

Which of the following types of marketing is designed to turn customers into advocates? a Mobile marketing b. Social Marketing c. Experiential marketing d. Relationship marketing

23.

Which of the following metrics indicate brand preference?

a. b. c. d. 24.

Which of the following metrics is a forward-looking metric?

a. b. c. d. 25.

Recency-Frequency-Monetary value Past Customer Value Share of Wallet Customer Lifetime Value d

Recency-Frequency-Monetary value Past Customer Value Share of Wallet Customer Lifetime Value

Which of the following are advantages of Mobile Marketing? a. Wide presence b. Interaction c. Impact d. Communication features e. All of the above

26.

Which of the following is referred as a “double-edged sword” strategy in the text? a. E-Commerce b. Implementing Mobile Marketing strategies c. Implementing Social Media Marketing strategies d. None of the above