LESSON 5 Market Research and Purchasing Review

Which of the following is an ethical issue in marketing information management?

• How to store customers' information securely

• What to set the price of a product

• Where to set up the business

• Whether to set up an online storefront

After significant market research, Dan is evaluating his business compared to another local business offering a similar service. His observations tell him that the other business offers lower prices, but that his own services are higher quality and result in greater customer satisfaction. What activity is Dan engaging in with his market research?

• Secondary research

• Competitive analysis

• Forecasting

• Qualitative analysis

An entrepreneur wants to start a bakery. He wants to make a sales forecast for his first six months in business, so he obtains the sales records for all the successful bakeries in his state and uses the monthly average for his forecast. What mistake is he making in this process?

• He should be looking at sales records for all the successful bakeries in the country, not just in his state.

• It is impossible to make an accurate sales forecast for a new business, and attempting to do so will only set him up for failure and disappointment.

• It is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months.

• He should not use data from bakeries in his own state, as it is unlikely that they will report accurate estimates to their potential competitor.

Which of the following is an example of qualitative data?

• Blue is the best selling color for all models in the product line.

• A certain brand's products are an average of 15% more expensive than comparable products from their direct competitor.

• Sales for the newest product model have amounted to $260,000 over the last three months.

• Consumers feel that a certain brand is not stylish enough to interest them.

Small groups of consumers that interact with products or services and give their feedback based on their experiences are known as _____.

• focus groups

• survey takers

• market research audiences

• test subjects

_____ have led to drastic changes in the ability to gather, analyze, and access data for research.

• Changing consumer attitudes and behaviors

• Advances in technology

• Global trends

• Privacy laws

What is the main advantage of secondary research data over primary research data?

• It provides a much smaller sample, though with the same measure of depth.

• It focuses more on the target market.

• It is more easily accessible and more cost effective.

• It is generally more accurate than primary data.

Which research tool is best suited to gathering qualitative market data?

• Business records

• Census statistics

• Surveys

• In-depth interviews

What is the main advantage for businesses that participate in the globalized market?

• A greater number of potential customers

• More complex legal requirements

• Avoiding paying taxes on international transactions

• Decreased amount of competition

What type of data is represented in the following statement? 42% of customers who purchase a warranty plan use their warranty services before the warranty expires.

• Qualitative data

• Quantitative data

• Primary research data

• Secondary research data