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Chapter 5—The Human Side of Business Research: Organizational and Ethical Issues
TRUE/FALSE
1. One reason for an organization to hire an outside research supplier is to acquire access to that
organization's experience in important types of situations.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 76
2. If secrecy is a major concern, then it is best to use an outside research agency.
ANS: F
If secrecy is a major concern, then the research is best done in-house.
PTS: 1
REF: p. 77
NAT: AACSB: Reflective Thinking
3. The placement of research within a firm’s organizational structure and the structure of the research
department vary depending on the firm’s degree of marketing orientation and research sophistication.
ANS: F
The placement of research depends on the firm’s acceptance of the concept of internal research and its
stage of research sophistication.
PTS: 1
REF: p. 77
NAT: AACSB: Reflective Thinking
4. One advantage of conducting research in-house is cheaper costs.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 77
5. Often the term “doer” is used by the research department to refer to line management for whom
services are being performed.
ANS: F
The term often used is “client.”
PTS: 1
REF: p. 78
NAT: AACSB: Reflective Thinking
6. The manager of decision support systems supervises the collection and analysis of sales, inventory,
and other periodic customer relationship management (CRM) data.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 79
7. One problem typically faced by business research directors is that the research management role often
is not formally recognized.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 81
8. Rushing into a research project may result in conducting a study that is not needed.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 82
9. Researchers measure past, current, and future events.
ANS: F
Researchers measure only current and past events.
PTS: 1
REF: p. 84
NAT: AACSB: Reflective Thinking
10. A research analyst can effectively serve as a link between management and the research specialist.
ANS: F
This describes a research generalist. A research analyst is responsible for client contact, project
design, preparation of proposals, and so on.
PTS: 1
REF: p. 85
NAT: AACSB: Reflective Thinking
11. A good example of the business research concept in action is the use of cross-functional teams within
the organization.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 85
12. A syndicated service is a research supplier that provides standardized information for many clients in
return for a fee.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 86
13. A custom research provider specializes in only one particular research activity, such as field
interviewing, data warehousing, or data processing.
ANS: F
This describes a limited-service research provider. Custom research projects are tailored specifically
to a client’s unique needs.
PTS: 1
REF: p. 88
NAT: AACSB: Reflective Thinking
14. Ethical questions are really philosophical questions.
ANS: T
PTS: 1
REF: p. 88
NAT: AACSB: Reflective Thinking| AACSB: Ethics
15. Absolutism is a term that reflects the degree to which one rejects moral standards in favor of the
acceptability of some action.
ANS: F
This is relativism.
PTS: 1
REF: p. 89
NAT: AACSB: Reflective Thinking| AACSB: Ethics
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
16. The issue as to whether the respondent in a research study can choose to answer or not to answer a
specific question is a matter of confidentiality.
ANS: F
This is informed consent.
PTS: 1
REF: p. 90
NAT: AACSB: Reflective Thinking
17. The obligation on the part of the researcher to protect the identity of an individual research respondent
is a matter of confidentiality.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 91
18. The use of spyware violates the right to privacy and confidentiality of Internet users.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 92
19. A false experimental effect that is used to create the perception of a true experimental effect is called
pseudo-research.
ANS: F
This is a placebo effect.
PTS: 1
REF: p. 93
NAT: AACSB: Reflective Thinking
20. One key question that can be used to determine whether a research participant is being treated ethically
as a result of an experimental procedure is “Can the research subject be easily returned to his or her
initial state?”
ANS: T
PTS: 1
REF: p. 94
NAT: AACSB: Reflective Thinking| AACSB: Ethics
21. An Institutional Review Board (IRB) is a committee that carefully reviews a proposed research design
to try to make sure the proposed research will satisfy the research objectives.
ANS: F
IRB’s review a proposed research design to try to make sure that no harm can come to any research
participant.
PTS: 1
REF: p. 94
NAT: AACSB: Reflective Thinking
22. The purpose of a push poll is to push consumers into a pre-determined response.
ANS: T
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 97
23. Pseudo-research is undertaken to support a specific claim in a legal action or to represent some
advocacy group.
ANS: F
This is advocacy research.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
PTS: 1
REF: p. 101
NAT: AACSB: Reflective Thinking
MULTIPLE CHOICE
1. A possible advantage of an outside research supplier over an in-house research department is that it
may be possible for the outside supplier to conduct the project:
a. more objectively
b. at a lower cost
c. faster
d. all of the above
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 76
2. All of the following are advantages of in-house research EXCEPT:
a. quick turn-around
b. better collaboration with employees
c. more objectivity
d. cheaper costs
ANS: C
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 76
3. Caleb’s job at a research firm is to provide technical assistance with questionnaire design. Which of
the following best describes Caleb’s job title?
a. director of research
b. research assistant
c. forecast analyst
d. research generalist
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 78
4. Which of the following is NOT a problem a research director typically faces?
a. spends more time in meetings and managing than actually conducting research
b. research management role often is not formally recognized
c. often does not have the tools available to conduct the research properly
d. research is often seen as a hodgepodge of techniques available to answer individual,
unrelated questions
ANS: C
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 81
5. Which of the following errors become more prominent when research studies are rushed?
a. conducting a study that is not needed
b. addressing the wrong issue
c. sampling difficulties
d. all of the above
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 82
6. Which of the following can effectively serve as a link between management and the research
specialist?
a. marketing research director
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
b. research generalist
c. research assistant
d. research liaison
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 85
7. 3-M Corporation puts together teams of employees from various functional areas such as engineering,
production, finance, and marketing who share a common purpose, such as new-product development.
These types of teams are referred to as:
a. cross-functional teams
b. syndicated teams
c. synergistic teams
d. focus groups
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 85
8. Commercial providers of research services are called:
a. research suppliers
b. research generalists
c. research analysts
d. research syndicators
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 86
9. When J.D. Power and Associates sell the results of its research studies on new-car satisfaction to
automobile producers, J.D. Power is acting as a:
a. pseudo-research supplier
b. syndicated service
c. cross-functional team
d. custom research supplier
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 86
10. A research organization that specializes in studies about advertising effectiveness is an example of
a(n):
a. cross-functional team
b. standardized research service
c. research generalist
d. advocacy research organization
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 87
11. When AT&T hires a research agency to conduct research tailored to it’s unique needs, this is called:
a. custom research
b. syndicated research
c. limited research
d. commercial research
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 88
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
12. _____ is the application of morals to business behavior related to the exchange environment.
a. Moral relativism
b. Moral idealism
c. Business idealism
d. Business ethics
ANS: D
PTS: 1
REF: p. 88
NAT: AACSB: Reflective Thinking| AACSB: Ethics
13. Claire believes she is a moral person, but she does believe that it is acceptable to tell a lie in certain
situations. Which of the following term best reflects Claire’s beliefs?
a. relativism
b. idealism
c. situationalism
d. conformism
ANS: A
PTS: 1
REF: p. 89
NAT: AACSB: Reflective Thinking| AACSB: Ethics
14. Which term reflects the degree to which one bases one’s morality on moral standards?
a. relativism
b. idealism
c. absolutism
d. conformism
ANS: B
PTS: 1
REF: p. 89
NAT: AACSB: Reflective Thinking| AACSB: Ethics
15. When a respondent in a research study agrees to participate in the research study, this is known as:
a. a right to privacy
b. informed consent
c. jamming
d. forecasting
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 90
16. One right a research participant has is that information involved in the research will not be shared with
others, which is known as:
a. consent
b. active research
c. passive research
d. confidentiality
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 91
17. Which of the following is generally considered to be a public place in which unobtrusive observation
is not a serious invasion of privacy?
a. an airport check-in counter at Logan Airport in Boston
b. the St. Louis Art Museum
c. a Radio Shack retail store
d. all of the above
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 92
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
18. Which of the following is a type of software that is placed on users’ computers without consent or
knowledge while using the Internet?
a. pop-ups
b. spyware
c. stealth file
d. COPPA
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 92
19. Janice is participating in an experimental study of an herbal supplement that is supposed to give users
more energy. Since starting the experiment, she has noticed that she has more energy, but in reality,
she is just receiving a “blank” pill that does not contain the herbal supplement. What effect is Janice
demonstrating?
a. false negative
b. type I error
c. type II error
d. placebo
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 93
20. The session in which research subjects are fully informed and provided a chance to ask any question
that they may have about the experiment is called a(n):
a. wrap-up session
b. post-hoc session
c. debriefing session
d. placebo session
ANS: C
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 93
21. Most universities require researchers to submit research proposals to a committee that carefully
reviews them to make sure no harm can come to any research participant. What is this committee
called?
a. human subjects review committee
b. experimental design review committee
c. ethical research review committee
d. confidentiality review committee
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 94
22. When a marketing manager conducts a test market but has already decided to ignore the results if they
do not support a national launch of the product, this is an example of:
a. a pseudo-research study
b. a pretest
c. a forecast analysis
d. informed consent
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 96
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
23. When a political candidate has staff workers phone registered voters of another party to ask a leading
and negative question about his opposing candidate, this is a form of:
a. a push poll
b. advocacy research
c. a research supplier
d. a cross-functional team
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 97
24. Mark is conducting research studies for two national rental car companies. Mark’s action represent a
potential:
a. illegal situation
b. advocacy situation
c. push poll
d. conflict of interest
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 100
25. Another term for the sponsoring client in research studies is the:
a. researcher
b. user
c. subject
d. respondent
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 100
26. A research firm has been hired by an attorney to undertake research that will support his client’s
defense in a legal dispute. What type of research is the firm being asked to conduct?
a. push poll
b. advocacy research
c. confidentiality research
d. deceptive research
ANS: B
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 101
27. Many people believe that the collection and dissemination of their personal information without their
knowledge or consent is a serious violation of their right to:
a. refuse to participate in a research study
b. anonymity
c. tell the truth
d. privacy
ANS: D
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 101
28. In a personal interview, a respondent who replies: "I do not want to answer that question about my
income last year" is exercising which right in a research study?
a. right to privacy
b. right to be informed
c. right of informed consent
d. right to terminate the interview at any time
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
ANS: A
PTS: 1
NAT: AACSB: Reflective Thinking
REF: p. 101
COMPLETION
1. When an organization's research department refers to the managers for whom it is performing research
services, it is common to refer to the manager as the department's ____________________.
ANS: client
PTS: 1
REF: p. 78
NAT: AACSB: Reflective Thinking
2. An individual that is responsible for contacting clients, designing research projects, preparing research
proposals, selecting research suppliers, and supervising data collection, analysis, and reporting
activities is commonly referred to as a ____________________.
ANS: research analyst
PTS: 1
REF: p. 78
NAT: AACSB: Reflective Thinking
3. A individual within the research organization who acts as a "go-between" between management and
the research specialist because he or she is an expert in the needs of both parties is known as a
____________________.
ANS: research generalist
PTS: 1
REF: p. 85
NAT: AACSB: Reflective Thinking
4. Teams that are composed of representatives of research, new product development, production, and
finance to study the feasibility of the national launch of a new product are knows as
____________________ teams.
ANS: cross-functional
PTS: 1
REF: p. 85
NAT: AACSB: Reflective Thinking
5. A research supplier that provides standardized information for many different clients (such as different
automobile manufacturers) is known as a ____________________ research service.
ANS: syndicated
PTS: 1
REF: p. 86
NAT: AACSB: Reflective Thinking
6. A commercial research company that conducts research for clients is known as a
____________________.
ANS: research supplier
PTS: 1
REF: p. 86
NAT: AACSB: Reflective Thinking
7. A research organization that develops a unique methodology for studying a specialty area (such as
brand-name evaluation) is called a ____________________ research service.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
ANS: standardized
PTS: 1
REF: p. 87
NAT: AACSB: Reflective Thinking
8. When a research supplier designs a research study that is tailored to the needs of the client, this is
known as a ____________________ research study.
ANS: custom
PTS: 1
REF: p. 88
NAT: AACSB: Reflective Thinking
9. The attempt to decide what is “right” and what is “wrong” in the conduct of business research studies
is called ____________________.
ANS: business ethics
PTS: 1
REF: p. 88
NAT: AACSB: Reflective Thinking| AACSB: Ethics
10. ____________________ is a term that reflects the degree to which one bases one’s morality on moral
standards.
ANS: Idealism
PTS: 1
REF: p. 89
NAT: AACSB: Reflective Thinking| AACSB: Ethics
11. ____________________ means that information involved in the research will not be shared with
others.
ANS: Confidentiality
PTS: 1
REF: p. 91
NAT: AACSB: Reflective Thinking
12. When telemarketing is conducted under the “guise” of a research study, this is called
____________________..
ANS: push polling
PTS: 1
REF: p. 97
NAT: AACSB: Reflective Thinking
13. A session in which research subjects are fully informed and provided a chance to ask any questions
that they may have about an experiment is called a ____________________ session.
ANS: debriefing
PTS: 1
REF: p. 98
NAT: AACSB: Reflective Thinking
14. Research that is conducted to support a specific claim in a legal action (e.g. a certain miles per gallon
performance in city driving conditions) is known as ____________________ research.
ANS: advocacy
PTS: 1
REF: p. 101
NAT: AACSB: Reflective Thinking
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
ESSAY
1. Explain when research should be conducted externally and when it should be done internally.
ANS:
When the firm facing a decision encounters one of the following situations, they should consider
having the research performed by an outside agency:
(1) An outside agency often can provide a fresh perspective.
(2) An outside agency often can be more objective.
(3) An outside agency may have special expertise.
(4) An outside agency will have local knowledge and expertise and may specialize in research from its
home area.
Likewise, there are conditions that make in-house research more attractive:
(1) If the research project needs to be completed very quickly.
(2) If the research project will require the close collaboration of many other employees from diverse
areas of the organization.
(3) In-house research can almost always be done more cheaply than that done by an outside firm.
(4) If secrecy is a major concern.
PTS: 1
REF: pp. 76-77
NAT: AACSB: Reflective Thinking| AACSB: Communication
2. Discuss the sources of conflict between management and research.
ANS:
In practice, the relationship between the research department and the users of research frequently is
characterized by misunderstanding and conflicts arising from:
(1) Research that implies criticism - managers may not want to find results that are critical of their
work.
(2) Money - financial managers often see research as a cost rather than as an investment or a way of
lowering risk.
(3) Time - it takes time to complete a research project, and errors are more prominent if the research is
rushed.
(4) Intuitive decision making - managers are action-oriented decision makers, and they often rely on
gut reaction and intuition, which is often successful. Thus, they often do not believe a research project
will help improve their decision making.
(5) Future decisions based on past experience - managers wish to predict the future, but researchers
measure only current or past events.
PTS: 1
REF: pp. 81-84
NAT: AACSB: Reflective Thinking| AACSB: Communication
3. Define business ethics and explain how it applies to research.
ANS:
Business ethics is the application of morals to business behavior related to the exchange environment.
An ethical dilemma refers to a situation in which one chooses from alternative courses of actions, each
with different ethical implications. Researchers, managers, and even consumers face ethical dilemmas
practically every day. Each party in the research process--researchers, clients, and participants--has
certain rights and obligations toward the other parties. Like the rest of business, research works best
when all parties act ethically.
PTS: 1
REF: p. 88
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.
NAT: AACSB: Reflective Thinking| AACSB: Communication| AACSB: Ethics
4. Discuss the rights and obligations of the research participant.
ANS:
Most business research is conducted with the research participant’s informed consent. In other cases,
they may not be aware that they are being monitored in some way. The ethical responsibilities vary
depending on whether participation is active or passive.
One obligation of a research participant is honesty. When someone willingly consents to participate
actively, it is generally expected that he or she will provide truthful answers. In return for being
truthful, the subject has the right to expect confidentiality, meaning that information involved in the
research will not be shared with others. A participant’s right to privacy involves his or her freedom to
choose whether to comply with the investigator’s request. Research companies should adhere to the
principles of the “do-not-call” policy and should respect consumers’ Internet privacy as well. Since
some experimental research involves some degree of deception, participant’s have the right to be
protected from harm and the right to be informed.
PTS: 1
REF: pp. 90-94
NAT: AACSB: Reflective Thinking| AACSB: Communication
5. Discuss the rights and obligations of the researcher.
ANS:
Researchers have the right to cooperation from the sponsoring client and to be paid if full and in a
timely manner for work that is done professionally. Researchers have several obligations in the
following areas:
(1) The purpose of research is research - meaning the researcher should not mix sales and research
by using research as a guise for selling or conduct research that isn’t research. For example, pseudoresearch is conducted not to gather information for business decisions but to bolster a point of view
and satisfy other needs, and push polls attempt to push consumers into a pre-determined response.
Service monitoring is also often presented as research, but this practice is acceptable as long as the
researcher allows the consumer the option of either being contacted or not being contacted.
(2) Objectivity - researchers should maintain high standards to be certain that their data are accurate.
(3) Misrepresentation of research - researchers are obligated to be honest in presenting results.
(4) Honesty in reporting errors - every research design presents some limitations, which should be
pointed out.
(5) Confidentiality - the researcher must abide by any confidentiality agreement with research
participants as well as the research sponsor.
PTS: 1
REF: pp. 94-100
NAT: AACSB: Reflective Thinking| AACSB: Communication
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part.