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ENRICHMENT CHAPTER
Developing and Using Information About
Consumer Behavior
TRUE/FALSE
1. Lenovo bought IBM’s PC division in 2005.
Ans: T
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AACSB: Analytic
2. Mike works for Cingular Wireless and buys data from Nielsen Media. The data he is buying is primary data.
Ans: F
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AACSB: Analytic
3. Similar to focus groups, interviews involve direct contact with consumers.
Ans: T
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AACSB: Analytic
4. Byron works for the Chuck E. Cheese pizza chain and tested a new logo design in only one restaurant. This is
an example of a market test.
Ans: T
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5. Focus groups can be used to identify and test new product ideas.
Ans: T
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AACSB: Analytic
6. Unlike focus groups, interviews involve direct contact with consumers.
Ans: F
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AACSB:
Analytic
7. During an experiment it is possible to test several independent variables at the same time.
Ans: F
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Analytic
8. Conjoint analysis allows researchers to determine what attributes and the level of those attributes that are
preferred by consumers.
Ans: T
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Analytic
9. Using tracking software to understand what websites consumers visit and what they examine at each site is an
example of observation.
Ans: T
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Analytic
10. Fisher-Price observes children’s reactions to its toys at the Fisher-Price Playlab.
Ans: T
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AACSB:
Analytic
11. Fredericks of Hollywood uses database marketing to customize messages to its email distribution based on
pages and product views by the consumer.
Ans: T
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AACSB: Analytic
12. Neuroscience is the use of fMRI to examine consumers’ brains to study compulsive consumer behavior.
Ans: F
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AACSB:
Analytic
13. The Federal Trade Commission conducts research on potentially deceptive, misleading, or fraudulent nature
of certain brands’ advertising.
Ans: T
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AACSB: Analytic
14. Focus groups are appropriate for marketing research in all countries.
Ans: F
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AACSB: Analytic
15. Telephone interviewing is still very common in the United States.
Ans: T
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16. Consumer groups are concerned that marketing research drives up the cost of a product or service.
Ans: T
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AACSB: Analytic
MULTIPLE CHOICE
17. When a company collects data from their customers to place in a database, this information is _______ data.
a. secondary
b. preliminary
c. simple
d. multiple use
e. primary
Ans: e
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AACSB: Analytic
18. Ying recently finished developing her research instrument for the advertising agency. It had a total of 80
questions for respondents to answer. Most likely, Ying is using a(n) ___________ to do her research.
a. survey
b. scanner barcode form
c. interview
d. focus group
e. ethnographic research form
Ans: a
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AACSB: Analytic
19. All of the following are true of surveys except that they
a. can be open-ended.
b. are led by a moderator.
c. can be collected in person.
d. ask consumers to respond to a predetermined set of research questions.
e. can use a rating scale.
Ans: b
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AACSB: Analytic
20. Surveys can be conducted in all of the following ways except
a. in person.
b. by observation.
c. through the mail.
d. over the phone.
e. on the Internet.
Ans: b
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AACSB: Analytic
21. A popular source of demographic data widely used by marketers and freely available is found in the
a. Roper Poll.
b. scanner data provided by supermarkets.
c. US Census of Population and Housing.
d. Gallup Poll.
e. annual reports of publicly held corporations.
Ans: c
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AACSB: Analytic
22. Michael needed information on a new product idea, so he called 10 people together for a guided discussion.
He will moderate the discussion. This research is known as a(n)
a. survey.
b. scanner barcode form.
c. interview.
d. focus group.
e. ethnographic research form.
Ans: d
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AACSB: Analytic
23. Computer-based focus groups are especially useful for
a. information about facial expressions and body language.
b. any form of written information that is essential for focus groups.
c. motivating subjects.
d. current or hot topics.
e. sensitive or embarrassing topics.
Ans: e
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AACSB: Analytic
24. Nathan required in-depth information on the attitudes and experiences of individual consumers who had
bought SUVs. The most appropriate research method to gather this information would be
a. interviews.
b. observation.
c. focus groups.
d. analysis of scanner data.
e. garbology.
Ans: a
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AACSB: Analytic
25. For interviews, all of the following are true except that
a. they require a trained interviewer.
b. they are a relatively inexpensive data collection method.
c. they require the establishment of one-on-one rapport with subjects.
d. nonverbal information is important.
e. identifying themes or patterns is important.
Ans: b
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AACSB: Analytic
26. A research method that helps marketers gain insight into consumer needs, and identify the product attributes
that meet these needs by having individuals relate their experiences, is best known as
a. logistic regression.
b. a written survey.
c. storytelling.
d. econometrics.
e. case analysis.
Ans: c
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AACSB: Analytic
27. Kimberly needed to understand more about the needs fulfilled in customers by the premium ice cream her
company makes. This will help her design an effective advertising campaign and web page. She probably
should start by using the research technique known as
a. case analysis.
b. a written survey.
c. storytelling.
d. econometrics.
e. an experiment.
Ans: c
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AACSB: Analytic
28. Pictures are used to help marketers gather data for all of the following except
a. to remember experiences.
b. the identification of images that best represent thoughts and feelings.
c. images that reflect a consumer’s lifestyle.
d. sales trends in the target market.
e. how consumers think about other consumers.
Ans: d
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AACSB: Analytic
29. Tarway Company, a gravel manufacturer, wanted to know what effect soft rock music would have on the
mood of its customers in sales meetings. To answer this question, this company should use
a. case analysis.
b. a written survey.
c. storytelling.
d. econometrics.
e. an experiment.
Ans: e
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AACSB: Analytic
30. A(n) __________ is the entity that is studied or varies in an experiment
a. variable
b. motivator
c. independent variable
d. validity index
e. prior result
Ans: c
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AACSB: Analytic
31. The research firm NPD asks more than 3 million consumers worldwide to track their purchases by
a. filling out yearly surveys.
b. examining their garbage.
c. an experiment.
d. keeping a consumer diary.
e. observation.
Ans: e
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AACSB: Analytic
32. A type of experiment that is conducted in the real world is best known as a
a. conjoint analysis.
b. laboratory experiment.
c. judgment sampling test.
d. real-life experiment.
e. field experiment.
Ans: e
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AACSB: Analytic
33. Taiping Company wanted to determine the importance and appeal of different combinations of seafood
(grilled eel, cod, fried shrimp, etc.) and vegetables in their frozen dinners. The best marketing technique for
this type of research would be
a. conjoint analysis.
b. laboratory experiment.
c. judgment sampling test.
d. real-life experiment.
e. field experiment.
Ans: a
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AACSB: Analytic
34. Ying needed to decide if Globbo Super Rich Ice Cream’s new chili-nacho-flavored ice cream would sell to
the 18 to 25 market. She also needed information on how to best incorporate elements of the marketing mix to
support this new product before launching it nationwide. She needs to use what is best known as a(n)
a. market test.
b. affective selling experiment.
c. cognitive selling experiment.
d. judgment sampling test.
e. controlled laboratory experiment.
Ans: a
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AACSB: Analytic
35. Consumers were given a taste test for a new soft drink. All other factors in the experiment were the same
except the beverage’s taste. The taste of the soft drink is an example of a(n)
a. dependent variable.
b. independent variable.
c. survey datum.
d. sensory exposition.
e. judgment sample.
Ans: b
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AACSB:
Analytic
36. In __________ , researchers observe how consumers behave in real-world surroundings.
a. interviewing
b. ethnographic research
c. purchase panels
d. analysis of scanner data
e. focus groups
Ans: b
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AACSB: Analytic
37. At the Gerber lab, scientists look at babies’ reactions to Gerber baby food to determine the proper ingredients
for their product. This type of research uses
a. interviewing.
b. observation.
c. purchase panels.
d. analysis of scanner data.
e. focus groups.
Ans: b
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AACSB: Analytic
38. Sometimes consumers decide to be representatives of the marketer’s target market. Every time these
consumers go shopping, their purchases are recorded at the cash register. This type of research uses
a. interviewing.
b. observation.
c. purchase panels.
d. analysis of scanner data.
e. focus groups.
Ans: c
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AACSB: Analytic
39. As a student, Ned was right in the target market for Diversified Foods’ products. As a marketing major, he
was eager to help the company better understand the actual purchases of its customers, so he allowed them to
record all of his purchases. This data would be merged with demographic data about Ned to help Diversified
Foods understand more about what factors influenced purchases. This research used
a. interviewing.
b. observation.
c. purchase panels.
d. analysis of scanner data.
e. focus groups.
Ans: c
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AACSB: Analytic
40. Paco Underhill owns a company called Envirosell that records consumers’ movements within a retail
environment with video cameras. He then analyzes the data to determine if the store’s layout meets
consumers’ need. This research methodology is
a.
b.
c.
d.
e.
Ans: a
Page: 33
AACSB:
interviewing.
observation.
purchase panels.
analysis of scanner data.
focus groups.
Analytic
41. Harrah’s uses information from diverse sources, such as banking reports, credit card records, and purchases
from various Harrah’s services, to target customers with packaged vacation offers specifically geared toward
their lifestyles. This is best known as
a. contingent marketing.
b. customizable specialization.
c. divergent specialization.
d. database marketing.
e. inconsistent targetization.
Ans: d
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AACSB: Analytic
42. Using tracking software to learn which websites consumer visit and what they click on at each site is an
example of
a. a survey.
b. purchase panels.
c. focus groups.
d. database marketing
e. observation.
Ans: e
Page: 33
AACSB:
Analytic
43. When a company searches for patterns in their database that offer clues to make marketing decisions, they are
engaging in the process called
a. data collection.
b. data mining.
c. information gathering.
d. informational decision making.
e. UPC coding.
Ans: b
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AACSB: Analytic
44. By using __________ Nathan was searching the database of Sticky Food Inc. for clues as to how he could
better segment the market.
a. rendering
b. advocacy
c. contingency analysis
d. web logging
e. data mining
Ans: e
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AACSB: Analytic
45. _________________ is the process of examining consumers’ brain activity using functional magnetic
resonance imaging to learn which parts of the brain are activated during various consumer behaviors.
a. Neurosurgery
b. Brain scanning
c. Neuroscience
d. Scientology
e. Weird science
Ans: c
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AACSB:
Analytic
46. A major benefit of in-house research is that
a. it is viewed as more objective than research from an external source.
b. the quality of the data is better.
c. the research is more flexible.
d. the level of expertise is higher.
e. the information can be kept internally and not leaked to competitors.
Ans: e
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AACSB: Analytic
47. A major flaw of in-house research is that
a. it is not viewed as being as objective as research from an external source.
b. there is less interest in, and fewer uses for, this type of research.
c. the researchers are more distant from the subjects.
d. motivation is always lower than when it is done by an external source.
e. the information can easily be leaked to competitors.
Ans: a
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AACSB: Analytic
48. Starch scores measure
a. consumers’ underlying reasons for purchase.
b. the effectiveness of magazine advertising.
c. the effectiveness of TV ads.
d. the effectiveness of in-store sales promotions.
e. the effectiveness of cash rebates on consumer repurchase.
Ans: b
Page: 35
AACSB: Communication
49. The goal of advertising pretesting is to make sure that an ad
a. is tracked correctly.
b. will increase sales.
c. is able to persuade enough of the target market so that market share will attenuate.
d. is fulfilling its objectives before it is placed in the media.
e. will decrease cross-price elasticity.
Ans: d
Page: 36
AACSB: Communication
50. By using electronic scanners, retail chains can
a. measure brand awareness over time.
b. monitor consumer memory for the television, radio, and print ad campaigns.
c. see how consumers respond to coupons, discounts, and other promotions.
d. monitor advertising effectiveness over time.
e. track changes in demographics such as age or income.
Ans: c
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AACSB: Analytic
51. _________ collect and then sell the information they collect.
a. Panel data reports
b. Census reports
c. Tracking studies
d. Syndicated data services
e. Brand loyalty studies
Ans: d
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AACSB: Analytic
52. Nielson tracks TV viewing through electronic devices and viewer diaries. They combine demographic
information and TV viewing behavior to examine who is watching what shows. This is an example of
a. panel data reports.
b. census reports.
c. tracking studies.
d. syndicated data services.
e. brand loyalty studies.
Ans: d
Page: 36
AACSB: Analytic
53. A nonprofit organization, whose members are all professionals interested in a common research topic, is best
known as a(n)
a. research foundation.
b. research syndicate.
c. university.
d. PAC.
e. EPAC.
Ans: a
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AACSB: Analytic
54. The Marketing Science Institute sponsors academic, consumer, and marketing research projects that are
relevant to marketing researchers and practitioners. This organization is best known as a(n)
a. research foundation.
b. research syndicate.
c. university.
d. PAC.
e. EPAC.
Ans: a
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AACSB: Analytic
55. A professional organization made up of marketers in the same industry is known as a(n)
a. research syndicate.
b. trade group.
c. university.
d. PAC.
e. EPAC.
Ans: b
Page: 37
AACSB: Analytic
56. The members of the Recording Industry Association of America all have something to do with the recorded
music industry. This organization is best known as a(n)
a. research foundation.
b. trade group.
c. university.
d. PAC.
e. EPAC.
Ans: b
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AACSB: Analytic
57. The ________ is a government agency that collects information about a specific brand’s advertising to
determine if it is deceptive or misleading.
a. Census Bureau
b. Federal Trade Commission
c. Consumer Products Safety Commission
d. Internal Advertising Security Bureau
e. Firearms, Tobacco and Misleading Advertising Commission
Ans: b
Page: 337
58. Consumers Union publishes the well-known
a. Advertising Market Sheet.
b. Journal of Consumer Research.
c. Consumer Psychology Journal.
d. Consumer Reports Magazine.
e. Advertising Age.
Ans: d
Page: 38
AACSB: Analytic
59. Data originating from a researcher and collected to provide information relevant to a specific research project
is best known as
a. secondary data.
b. tertiary data.
c. targeted data.
d. specific data.
e. primary data.
Ans: e
Page: 28
AACSB: Analytic
60. Kimberly spent a lot of time designing surveys and collecting information on consumer use of cleanser as
hand soap. She has collected what is best known as
a. secondary data.
b. tertiary data.
c. targeted data.
d. specific data.
e. primary data.
Ans: e
Page: 28
AACSB: Analytic
61. Data collected for some other purpose that is subsequently used in a research project is known as
a. secondary data.
b. tertiary data.
c. targeted data.
d. specific data.
e. primary data.
Ans: a
Page: 28
AACSB: Analytic
62. As a marketing manager, Michael needed information on the effects of comedy television shows on potato
chip consumption. To start, he found a study done by a marketing researcher on the effects of television
viewing on junk food consumption. To Michael, the results of this study provide what is best known as
a. secondary data.
b. tertiary data.
c. targeted data.
d. specific data.
e. primary data.
Ans: a
Page: 28
AACSB: Analytic
63. One benefit of consumer research for consumers is
a. a longer warranty period on their products.
b. lower prices.
c. less advertising.
d. more privacy.
e. a better consumption experience.
Ans: e
Page: 39
AACSB: Ethics
64. Focus groups must be conducted differently in Japan because
a. the culture dictates against disagreeing with the group.
b. there is too much disagreement in groups.
c. opinions differ widely.
d. it is not as expensive as the interview method and thus not valued as highly.
e. they may provide opportunities for deception.
Ans: a
Page: 39
AACSB: Ethics
65. When companies would like ideas on how to understand and retain loyal customers, they can use consumer
research. A positive aspect of consumer research would be related to
a. the potential for building customer relationships.
b. loyalty programs.
c. the purchase price of the product that is being marketed.
d. the potential of higher marketing costs.
e. the customer influence over their marketing consumption.
Ans: a
Page: 38
AACSB: Ethics
66. All of the following are factors affecting the tracking of consumer behavior in different countries except that
a. careful translation to and from another language may be required.
b. internal cognitive processes differ widely between cultures.
c. gathering data may require different approaches.
d. ways of responding to questions may differ.
e. literacy rates affect approaches to data collection.
Ans: b
Page: 38
AACSB: Ethics
67. Which of the following would not be considered a positive aspect of consumer research?
a. providing information to improve consumers’ decision making
b. providing clearer product usage instructions
c. protecting consumers against unscrupulous marketers
d. reducing consumers’ privacy
e. helping consumers have better post-purchase experiences
Ans: d
Page: 38
AACSB:
Ethics
SHORT ANSWER / ESSAY
68. What is the difference between primary and secondary research?
Page: 28
AACSB:
Analytic
69. What are the different ways in which surveys can be conducted?
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AACSB:
Analytic
70. How are focus groups conducted?
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AACSB:
Analytic
71. When is it more appropriate for marketers to use focus groups and when should they use interviews?
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AACSB:
Analytic
72. David needs to do research to determine how consumers feel about blue corn tortilla chips. He needs both
numerical and qualitative data. Describe three techniques he could use.
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AACSB:
Analytic
73. What are some research techniques that use images?
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AACSB:
Analytic
74. Compare and contrast storytelling, diaries, and interviews as research techniques.
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AACSB:
Analytic
75. What is the purpose of experiments?
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AACSB:
Analytic
76. When should consumer researchers use laboratory experiments and when should they use field experiments?
Page: 31-32
AACSB:
Analytic
77. A beer company would like to know the effectiveness of an advertising campaign before spending money on
a nationwide campaign. Describe the type of experiment they should use and why it is appropriate.
Page: 32
AACSB:
Communication
78. What information can be cleared through conjoint analysis?
Page:
32
AACSB: Analytic
79. Describe four sources of marketing research and how they are used appropriately.
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AACSB:
Analytic
80. What are the advantages and disadvantages of a company conducting in-house research?
Page: 35
AACSB:
Analytic
81. What are syndicated data services?
Page: 36
AACSB:
Analytic
82. What is the purpose of a research foundation?
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AACSB:
Analytic
83. Why would an advertising agency conduct consumer research?
Page:
36
AACSB: Analytic
84. What are the positive aspects of consumer research?
Page:
38-39
AACSB: Ethics
85. What are some of the negative aspects of consumer research?
Page: 39-40
AACSB:
Ethics