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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 Page: 27 AACSB: Analytic 2. Mike works for Cingular Wireless and buys data from Nielsen Media. The data he is buying is primary data. Ans: F Page: 28 AACSB: Analytic 3. Similar to focus groups, interviews involve direct contact with consumers. Ans: T Page: 29 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 Page: 32 AACSB: Analytic 5. Focus groups can be used to identify and test new product ideas. Ans: T Page: 29 AACSB: Analytic 6. Unlike focus groups, interviews involve direct contact with consumers. Ans: F Page: 29 AACSB: Analytic 7. During an experiment it is possible to test several independent variables at the same time. Ans: F Page: 32 AACSB: Analytic 8. Conjoint analysis allows researchers to determine what attributes and the level of those attributes that are preferred by consumers. Ans: T Page: 32 AACSB: 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 Page: 33 AACSB: Analytic 10. Fisher-Price observes children’s reactions to its toys at the Fisher-Price Playlab. Ans: T Page: 33 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 Page: 34 AACSB: Analytic 12. Neuroscience is the use of fMRI to examine consumers’ brains to study compulsive consumer behavior. Ans: F Page: 34 AACSB: Analytic 13. The Federal Trade Commission conducts research on potentially deceptive, misleading, or fraudulent nature of certain brands’ advertising. Ans: T Page: 37 AACSB: Analytic 14. Focus groups are appropriate for marketing research in all countries. Ans: F Page: 39 AACSB: Analytic 15. Telephone interviewing is still very common in the United States. Ans: T Page: 39 AACSB: Analytic 16. Consumer groups are concerned that marketing research drives up the cost of a product or service. Ans: T Page: 44 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 Page: 28 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 Page: 28 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 Page: 28 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 Page: 28 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 Page: 23 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 Page: 29 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 Page: 29 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 Page: 29 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 Page: 29 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 Page: 30 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 Page: 30 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 Page: 31 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 Page: 31 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 Page: 31 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 Page: 31 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 Page: 32 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 Page: 32 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 Page: 32 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 Page: 32 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 Page: 33 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 Page: 32 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 Page: 33 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 Page: 33 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 Page: 33 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 Page: 34 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 Page: 34 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 Page: 34 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 Page: 35 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 Page: 35 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 Page: 37 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 Page: 36 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 Page: 37 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 Page: 37 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 Page: 37 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? Page: 28 AACSB: Analytic 70. How are focus groups conducted? Page: 29 AACSB: Analytic 71. When is it more appropriate for marketers to use focus groups and when should they use interviews? Page: 29-30 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. Page: 28-34 AACSB: Analytic 73. What are some research techniques that use images? Page: 30-31 AACSB: Analytic 74. Compare and contrast storytelling, diaries, and interviews as research techniques. Page: 30-31 AACSB: Analytic 75. What is the purpose of experiments? Page: 31-32 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. Page: 35-38 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? Page: 37 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