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WorksheetsChapter 4 : Managing Marketing Information to Gain Customer Insi
Total questions: 160
Worksheet time: 2hrs 23mins
With the recent explosion of information technologies, ________.
most marketing managers are overloaded with data and often overwhelmed by it
most marketing managers are concerned solely about the duplication of content
companies have ceased to feel the need for marketing information systems
companies have ceased to maintain internal databases
it has become more difficult and expensive to obtain primary data
The real value of marketing information lies in how it is used ________.
in determining selling prices for products
in analyzing budgets
in creating advertising campaigns
in the customer insights that it provides
in introducing a new product to the marketplace
Brad works with a reputable retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumers' behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the ________ team.
product development
strategy implementation
human resource
customer relationship management
customer insights
The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies.
large reports
huge and complex data sets
information requests
social media contacts
e-mail messages
Challenges of managing big data include ________.
determining what information to request
investing in appropriate technology
hiring enough software engineers
properly routing the information after gathering it
accessing and sifting through so much data
A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
enterprise planning system
enterprise information system
marketing information system
corporate performance management system
geographic information system
An MIS is used to ________.
generate product interest
develop marketing plans
identify demographic trends
assess information needs
test hypotheses about cause-and-effect relationships
An MIS user should most likely be able to ________.
implement new technology
increase order requests
develop customer insights
analyze employee turnover
establish short-term objectives
The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) ________.
enterprise planning system
product mix
strategic planning system
marketing information system
business portfolio
With the recent explosion of information technologies, companies are finding it difficult to generate marketing information in great quantities.
TRUE
FALSE
The real value of marketing research lies in the customer insights that it provides.
TRUE
FALSE
With current technology systems, marketers find it simple to access and sift through the data that is gathered.
TRUE
FALSE
A management information system assesses information needs, develops needed information, and helps decision makers use the information
TRUE
FALSE
What do marketers gain from gathering and analyzing information about customers and the needs and motivations of those customers?
What is the function of a marketing information system (MIS)?
Briefly explain the functions of a customer insights team.
A good marketing information system balances the information users ________ to have against what they ________ and what is ________ to offer.
request; want; affordable
demand; should request; time-efficient
want; are unaware of; the newest technology
would like; need; feasible
don't need; can afford; available
Costs are involved in obtaining, ________, storing, and delivering information.
analyzing
interviewing
conducting
designing
reporting
Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using ________.
ethnographic research
internal databases
descriptive research
data warehouses
causal research
Information in a company's database can come from many sources. An advantage of harnessing such information is to ________.
eliminate employee turnover
achieve a high degree of employee empowerment
gain competitive advantage
gain access to mass markets
eliminate resource dependency
Which of the following is an advantage of using an internal database?
Data always remains current in internal databases.
Highly sophisticated equipment and techniques are not required for maintaining internal databases.
Internal databases can be accessed more quickly and cheaply than other information sources.
Internal databases require less maintenance efforts.
Information obtained from internal databases is almost always sufficient for making marketing decisions.
Which of the following is a disadvantage of using information from internal databases?
Obtaining information from internal databases is both time-consuming as well as expensive.
It is not possible to verify information obtained from internal databases.
Using information from internal databases leads to biased research findings.
Internal information may be incomplete or in the wrong form for making marketing decisions.
Internal databases do not support highly sophisticated technologies that make it difficult to store large volumes of data.
Problems with internal databases include all of the following EXCEPT that ________.
data ages quickly
the data is in the wrong form for making marketing decisions
managing and mining mountains of information requires sophisticated equipment
keeping a database current requires major effort
information can be accessed more cheaply
________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Data warehousing
Competitive marketing intelligence
SWOT analysis
Ethnographic research
Customer relationship management
The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?
ethnographic research
strategic planning
data warehousing
competitive marketing intelligence
customer relationship management
Which of the following statements is true regarding competitive marketing intelligence?
The advantage of using competitive marketing intelligence is negligible.
The goal of competitive marketing intelligence is to improve recruiting efforts.
Competitive marketing intelligence relies upon costly internal databases.
Competitive marketing intelligence relies upon publicly available information.
Companies using competitive marketing intelligence routinely ignore consumers' online chatter.
Which of the following is NOT a method of gathering good marketing intelligence?
Which of the following is NOT a method of gathering good marketing intelligence?
interviewing competitors' employees to learn as much "inside information" as possible
setting up digital centers that monitor brand-related online consumer and marketplace activity
purchasing merchandise from competing sites to analyze and compare their assortment, speed, and service quality
searching specific competitor names, events, or trends to see what comes up
Which of the following refers to a marketing intelligence technique?
interviewing customers randomly
increasing the annual budget for R&D
investing heavily in primary research
implementing product diversification
benchmarking competitors' products
Firms use competitive marketing intelligence to ________.
create and sustain market monopolies
counter the adverse effects of organizational anarchy
perpetuate organizational learning
gain early warnings of competitor moves and strategies
strengthen weak ties with industry competitors
In this scenario, which of the following is representative of competitive marketing intelligence?
formulating a research plan
collecting data about competitors
sending mail questionnaires to focus groups
creating competitive advantage
consolidating core competencies
The goal of competitive marketing intelligence is to evaluate and prevent high employee turnover
TRUE
FALSE
External databases are electronic collections of consumer and market information obtained from data sources within a company's network.
TRUE
FALSE
Internal databases usually can be accessed more quickly and cheaply than other information sources.
TRUE
FALSE
Data ages quickly.
TRUE
FALSE
Internal information is almost always sufficient for making marketing decisions.
TRUE
FALSE
Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace.
TRUE
FALSE
Competitor intelligence can be collected from people inside the company, such as executives, engineers, purchasing agents, and the sales force, as well as customers.
TRUE
FALSE
Marketers can obtain information from internal data and from competitive marketing intelligence. Compare and contrast the two sources of information.
What is the most important characteristic of a good MIS?
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Product marketing
Strategic planning
Marketing research
Market segmentation
Causal research
Which of the following is true with regard to marketing research?
The marketing research process depends primarily on sophisticated internal databases.
The marketing research process requires assessing macroeconomic forces.
Marketing research gives marketers insights into customer motivations.
Marketing research eliminates the need for a SWOT analysis.
Marketing research is a simple two-step process.
Which of the following is the first step in the marketing research process?
developing a marketing information system
defining the problem and objectives of the study
developing the research plan
implementing the research plan
interpreting and reporting the findings
Which of the following is the final step of the marketing research process?
developing the research plan
implementing the research plan
interpreting and reporting the findings
selecting a research agency
defining the research objectives
The objective of causal research is to ________.
test hypotheses about cause-and-effect relationships
gather preliminary information that will help suggest hypotheses
describe things, such as the market potential for a product
assign a cause to a seemingly random event
predict the effect of a random event on unrelated entities
In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.
exploratory
statistical
causal
analytic
descriptive
The goal of ________ research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
exploratory
statistical
causal
analytic
descriptive
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.
exploratory
descriptive
causal
constructive
ethnographic
Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?
internal research
descriptive research
causal research
exploratory research
demographic research
Beth Williams works for a marketing research company in Chicago. Her current research involves finding the market potential for a client's new line of sports apparel. Given her objective, which of the following types of research is the most suitable for Beth?
causal research
constructive research
statistical research
descriptive research
exploratory research
The research plan ________.
provides comprehensive marketing intelligence about competitors
outlines sources of existing data and spells out the specific research approaches
does not include sampling plans
does not include contact methods
precedes the definition of research objectives
The research plan should be presented in a written proposal. The proposal should include all of the following EXCEPT ________.
the predicted results
research objectives
how the results will help management's decision making
estimated research costs
the information to be obtained
Secondary data consist of ________.
information collected for the specific purpose at hand
data that does not age
information that already exists somewhere, having been collected for another purpose
information collected from conducting personal, in-depth interviews
data that is unreliable and unsuitable for the purpose of making marketing decisions
Primary data consist of ________.
data that does not age
data obtained from the public domain
information collected for the specific purpose at hand
information that already exists somewhere, having been collected for another purpose
information that is the least expensive and the easiest to obtain
Information collected from Internet search engines is an example of ________ data.
primary
secondary
binary
low-level
disposable
Commercial online databases are rich sources for obtaining ________.
primary data
secondary data
customer insights
low-level data
binary data
Which of the following is a valid source of secondary data?
personal letters and correspondence
Internet search engines
ethnographic research
direct surveys
interviews
Which of the following is true with regard to gathering secondary data?
Gathering secondary data involves costly fees to government agencies.
Commercial online databases contain primary rather than secondary data.
Internet search engines can be useful sources of relevant secondary data.
It is illegal for firms to purchase secondary data from outside suppliers.
Secondary data eliminates the need for primary data in most cases.
Which of the following is true about secondary data?
It is always current and, unlike primary data, it does not have to be updated.
Unlike primary data, it can be obtained by using direct surveys and questionnaires by the company.
It cannot provide extra information a company is looking for.
It can be obtained more quickly and at a lower cost than primary data.
It requires more effort compared to gathering primary data.
Which of the following is a disadvantage of using secondary data?
Secondary data is generally not appropriate for consumer products.
Collecting secondary data is time consuming.
Few sources exist for secondary data.
Gathering secondary data is costly.
Relevant secondary data can be difficult to locate.
Designing a plan for primary data collection requires decisions on all of the following EXCEPT ________.
research instruments
contact methods
sampling plan
research results
research approaches
A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.
viral marketing
survey research
ethnographic research
experimental research
niche marketing
________ involves gathering primary data by closely examining relevant people, actions, and situations.
Observational research
Survey research
Telephone interviewing
Causal research
Group interviewing
________, a form of observational research, involves sending observers to watch and interact with consumers in their natural environments.
Group interviewing
Ethnographic research
Survey research
Experimental research
Causal research
Which of the following is true with regard to mail questionnaires?
The response rate of mail questionnaires is often very low.
Mail questionnaires are highly flexible.
The researcher has maximum control over the mail questionnaire sample.
Mail questionnaires are unsuitable for collecting large amounts of information about respondents.
Respondents always provide honest answers to personal questions on mail questionnaires.
Which of the following is true of ethnographic research?
It is a type of experimental research that involves evaluating group responses.
It involves sending observers to watch and interact with consumers in their natural environments.
It is a traditional quantitative research approach.
Information used in this mode of research is mainly derived from secondary data sources.
It is a form of survey research.
Observation is best suited for ________ research.
exploratory
constructive
experimental
descriptive
survey
While looking for ideas on how to craft a user-friendly dishwasher, the designers of a dishwasher-manufacturing company spent 10 days observing people as they used their dishwashers in their homes. In this instance, the designers were conducting ________.
survey research
experimental research
quantitative marketing research
ethnographic research
causal research
________ involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, or buying behavior. It is the most widely used method for primary data collection.
Experimental research
Causal research
Ethnographic research
Survey research
Exploratory research
Which of the following is true about survey research?
It involves sending observers to watch and interact with consumers in their natural environments.
It is best suited for gathering causal information.
It involves selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
The level of flexibility in survey research is lower than most other research methodologies.
Survey research is the most widely used method for primary data collection.
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
niche marketing
experimental research
product differentiation
ethnographic research
viral marketing
Which of the following is most likely an advantage of survey research?
The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.
Survey research allows researchers to observe respondents closely in their natural environments.
The chances of getting dishonest feedback are almost negligible with survey research.
The attitudes and motives of the customers can be easily determined through survey research.
The data gathered in survey research is impartial and free from bias as the surveys are done in-person to evaluate consumer behavior.
________ refers to gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Experimental research
Constructive research
Observational research
Survey research
Descriptive research
Experimental research is best suited for gathering ________ information.
exploratory
causal
random
unstructured
descriptive
Kinger Burgers came out with a new hamburger and, before including it on its main menu, released it in two different cities with two different prices. The marketers at Kinger Burgers then analyzed the different levels of purchase made at these two different places, planning to use the information to help them set a nationwide price for the new offering. This is an example of ________.
ethnographic research
descriptive research
DIY research
experimental research
survey research
Maria Ramirez is conducting research to determine consumers' personal grooming habits. Because of the personal nature of many of the survey questions, Maria wants to select the contact method that is most likely to encourage respondents to answer honestly and that will allow her to easily collect large amounts of data. Which of the following is best suited to meet Maria's requirements?
mail questionnaires
telephone interviews
individual interviews
focus group interviews
immersion group discussions
Which of the following contact methods is the most cost-effective?
telephone interviews
individual interviews
in-depth interviews
online surveys
group interviews
Loft Industries sells roof trusses to contractors and builders and is currently looking for honest feedback on its services. However, in the past, most of its efforts to procure feedback from customers did not yield any meaningful data. According to the marketing managers of Loft Industries, feedback was more polite than honest. Which of the following contact methods should Loft Industries most likely use to maximize its chances of receiving honest and impersonal feedback?
online focus groups
telephone interviews
mail questionnaires
group interviews
personal interviews
Which of the following is an advantage of telephone interviews?
They are more cost-effective than mail questionnaires.
Interviewer bias is absent.
The quantity of data collected is greater compared to personal interviewing.
The speed with which data is collected is high.
Response rates tend to be higher than those of mail questionnaires.
Which form of marketing research involves talking with people in their homes or offices, on the street, or in shopping malls?
individual interviewing
focus-group interviewing
telephone interviewing
mail questionnaires
observational research
________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization.
Telephone interviewing
Individual interviewing
A mail questionnaire
An online survey
Focus group interviewing
Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited eight regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods is Redrunners using?
individual interviewing
mail questionnaire
group interviewing
mass survey
mall intercept
Happy Pets, a company manufacturing pet foods and accessories, created a membership club for its regular customers called "I Love My Pet." This group consists of animal lovers selected by the company to complete product-related polls, chat with product developers, and provide feedback about specific products. Which of the following best describes "I Love My Pet"?
primary group
immersion group
mob
dyad
triad
In a simple random sample, ________.
every member of the population has a known and equal chance of selection
the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview
the researcher selects the easiest population members from which to obtain information
the population is divided into mutually exclusive groups and random samples are drawn from each group
the researcher finds and interviews a prescribed number of people in each of several categories
Which of the following is most likely a disadvantage of focus group interviewing?
Focus group interviewing does not connect secondary data with primary data.
Focus group interviewing is less flexible compared to mail questionnaires.
Consumers in focus groups are always open and honest about their real feelings, behaviors, and intentions in front of other people.
Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
The moderator in a focus group interview has poor control over the group of respondents.
To overcome problems in focus group interviewing, some companies employ small groups of consumers who interact directly and informally with product designers without a focus group moderator present. Such groups are known as ________.
classes
consumer guilds
virtual communities
immersion groups
primary groups
Jaime Gonzalez owns a small publishing company in Utah and has a very restrictive budget for the market research he currently needs to conduct. He requires a large sample size for his research in order to arrive at insightful conclusions. Additionally, he wants to have excellent control over his sample. Keeping in mind his restrictive budget and other specifications, which of the following methods of contact would you advise Jaime to use?
telephone interviews
individual interviews
online surveys
mail questionnaires
focus group interviews
Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method that can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?
online surveys
in-depth interviews
telephone interviews
individual interviews
mail questionnaires
Which of the following is true about Internet-based survey research?
The effectiveness of Internet-based survey research is invariably affected by the interviewer's bias.
Internet-based survey research is less flexible compared to mail questionnaires.
Internet-based survey research is characterized by high speed and low costs.
Typically, the quantity of data gathered in Internet-based survey research is low.
The response rate of Internet-based survey research is lower than that of mail questionnaires.
Which of the following is a disadvantage of online focus groups?
Responses are not instantaneous.
Controlling the online sample is difficult.
Results take a long time to tabulate and analyze.
Facility, technology, and travel costs are very high.
Researchers are unable to view the sessions in real-time.
A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.
focus group
immersion group
primary group
sample
secondary group
For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a ________.
simple random sample
convenience sample
stratified random sample
judgment sample
quota sample
Which of the following refers to a probability sample in which the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview?
quota sample
judgment sample
cluster sample
stratified random sample
simple random sample
Which of the following refers to a nonprobability sample in which the researcher selects the easiest population members from which to obtain information?
quota sample
judgment sample
convenience sample
stratified random sample
simple random sample
Which of the following refers to a nonprobability sample in which the researcher uses his or her evaluation techniques to select population members who are good prospects for accurate information?
quota sample
judgment sample
convenience sample
stratified random sample
simple random sample
Which of the following refers to a nonprobability sample in which the researcher finds and interviews a prescribed number of people in each of several categories?
quota sample
judgment sample
convenience sample
stratified random sample
simple random sample
In collecting primary data, marketing researchers have a choice of two main research instruments, ________.
reference books and journals
questionnaires and mechanical devices
social networks and internal databases
commercial online databases and search engines
open-source directories and blogs
Which of the following is an example of an open-ended question?
How is voting going to help the nation?
Do you like driving on the highway?
How many children do you have?
Would you like to try a sample?
Are your friends in town?
Which of the following questions is an example of a closed-end question?
Why do you think some people are more comfortable taking risks than others?
How can I improve my presentation skills?
Why do you think a single vote makes a difference?
Would you like to try our new ice cream flavor?
What is the best way to prevent weeds in a garden?
While creating research questionnaires, researchers must particularly AVOID the use of ________.
biased phrasing
simple language
closed-end questions
logical question arrangement
open-ended questions
________ refers to the measurement of brain activity to learn how consumers feel and respond.
Biometrics
Demographics
Sampling
Neuromarketing
Psychographics
After a research instrument is selected, the next step in the marketing research process is to ________.
select a sampling method
interpret the research findings
implement the research plan
evaluate alternatives
select a research approach
In this scenario, which of the following is an example of primary data?
list of corporations obtained from the Chamber of Commerce
information obtained from competitors' pamphlets
data obtained from the surveys conducted in the 75 companies
information obtained from the Internet about current market trends
data obtained from competitors' Web sites
Of the 141 companies on the list, Jason chose to survey only 75 of them. He sent surveys to both small as well as large companies. If Jason selected survey recipients randomly from two mutually exclusive groups comprised of small and large companies respectively, he most likely used a ________.
simple random sample
judgment sample
convenience sample
stratified random sample
quota sample
If Jason used mostly open-ended questions in the survey to encourage people to answer in their own words, he is performing ________ research.
focus group
qualitative
experiential
causal
exploratory
Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals.
TRUE
FALSE
Since secondary data provide a good starting point for research and often help define problems and research objectives, companies do not need to collect primary data.
TRUE
FALSE
A weakness of market research is that it cannot help marketers measure the effectiveness of pricing changes or promotion activities.
TRUE
FALSE
Causal research involves sending observers to watch and interact with consumers in their natural environments.
TRUE
FALSE
Experimental research is best suited for gathering descriptive information.
TRUE
FALSE
Personal interviews can be used to collect large amounts of information at a low cost per respondent.
TRUE
FALSE
The most obvious advantages that Internet-based survey research offers over mail and personal interviewing approaches are high speed and low costs.
TRUE
FALSE
A sample is a segment of the population selected for marketing research to represent the population as a whole
TRUE
FALSE
Open-ended questions are especially useful in exploratory research.
TRUE
FALSE
The first question in a questionnaire should be intentionally difficult and complicated in order to weed out uninterested respondents.
TRUE
FALSE
Neuromarketing involves measuring brain activity to learn how consumers feel and respond.
TRUE
FALSE
What are the steps of the marketing research process? How do companies conduct research?
Briefly compare the different types of research approaches for gathering primary data.
Identify three ways that companies can collect secondary data.
Describe the major contact methods used to collect information from respondents in market research.
Describe the three decisions involved in designing a sample.
Compare and contrast closed-ended questions and open-ended questions for gathering data
Briefly explain why marketers need marketing research in addition to competitive marketing intelligence.
What type of research would be the most useful to determine if a 20-percent decrease in price for a high-end sedan would result in an increase in purchases sufficient to offset the reduced price? Why?
Why is it important for managers to define the problem and establish research objectives?
How do primary data differ from secondary data?
List two benefits of using secondary data.
What is observational research and when is it used?
What are some of the limitations of observational research?
What is experimental research and when is it used?
How can researchers and managers arrive at the best interpretation of research findings?
The fourth step in gathering insights into the marketplace and customers is ________.
assessing marketing information needs
developing marketing information
performing marketing research
analyzing and using marketing information
preparing reports for marketing management
Customer relationship management (CRM) helps ________.
firms monitor and minimize employee turnover
customers manage information about different sellers in the market
firms manage customer touch points to maximize customer loyalty
customers locate the best deals in the market
firms create artificial demand in the market
Customer information is often buried deep in separate databases and records of different company departments. To overcome such problems, many companies are now turning to ________ to manage detailed information about individual customers.
neuromarketing
customer needs marketing
customer relationship management
ethnographic research
netnography research
Customer relationship management integrates everything that a company's sales, service, and ________ teams know about individual customers.
management
marketing
manufacturing
engineering
accounting
Which of the following is true about customer relationship management (CRM)?
Data mining has limited applicability in CRM activities.
Sophisticated analytical tools are sparingly used in CRM activities.
CRM reduces the number of customer touch points.
CRM aims to maximize customer loyalty.
CRM enables firms to compare various product and service categories.
What is the purpose of marketing analytics?
to obtain secondary data and integrate it with primary data
to gather and integrate data in a central, accessible location
to interpret the data obtained
to prevent the theft of customer data
to identify and discard outdated data
In CRM, ________ techniques are used to sort through data and locate useful findings about customers.
data warehousing
marketing analytics
niche marketing
data conservancy
mass marketing
A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.
provide higher levels of customer service
develop deeper customer relationships
create offers tailored to meet specific customer requirements
understand the competition better
pinpoint high-value customers and cross-sell products
Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph's primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, used by Zenith to personalize its customers' shopping experiences. Ralph's position at Zenith requires him to focus primarily on ________.
customer sales
human resource management
risk assessment
financial analysis
customer relationship management
For marketing information to have value, it must be available to decision makers. This may include non-routine information for special situations. Companies frequently use ________ in these instances.
e-mail messages
computer extranets
company intranet and internal CRM systems
scanned documents and faxes
video conferences
Customer touch points include customer purchases, satisfaction surveys, credit and payment interactions, sales force contacts, and service and support calls.
TRUE
FALSE
Customer relationship management helps manage detailed information about individual customers and maximize customer loyalty.
TRUE
FALSE
An obvious disadvantage of using customer relationship management is its ineffectiveness in pinpointing high-value customers.
TRUE
FALSE
How can a company manage information on specific customers more effectively?
What is the most common CRM mistake?
Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and would like to gather free secondary data. What is the best option for Joe?
mail questionnaires
focus group interviews
Internet search engines
personal interviews
commercial online databases
Which of the following is least likely to be a tool used by small businesses?
observation of customers and potential customers
online product and service review sites
purchasing data from Nielsen or U.S. Yankelovich MONITOR
informal surveys using small convenience samples
competitor and customer web, mobile, and social media sites
Often, international researchers must collect their own primary data because ________.
reliable secondary data is both scarce and difficult to find
information from commercial online databases is unreliable
it is cheaper to obtain primary data than secondary data
it is easier to obtain primary data than secondary data
it is illegal in some countries to track customer data
For international researchers, ________ is the most obvious obstacle.
language
technology
infrastructure
motivation
political risk
Which of the following is true with regard to problems faced by international researchers?
Translation of questionnaires increases research costs and risks of error.
Erratic purchasing patterns limit data reliability and validity.
More often than not, cultural differences enrich research findings.
Diverse markets always yield conflicting data.
The primary data obtained by international researchers are almost always error prone
Which of the following is most likely true about international research?
The availability of good secondary data makes international research rewarding
The costs of conducting international research are much higher than the benefits offered.
Technology enables customer responses to be translated quickly and accurately.
Costly international research is necessary if firms want to succeed in foreign markets.
Interpretations of data are fairly consistent among different countries.
Consumers who mistrust marketing research are more likely to ________.
consider marketing research initiatives as genuine endeavors aimed at heightening customer satisfaction
believe that marketers rarely use personal data to manipulate consumer behavior
believe that the misuse of research findings is highly unlikely
consider marketing research efforts, such as interviewing, intrusions on consumer privacy
feel positive about being personally interviewed by marketers
While collecting sensitive customer data, market researchers should adhere to all of the following guidelines EXCEPT ________.
asking only for the information needed
using information responsibly to provide value
providing respondents with the research firm's contact information
sharing information without the customer's authorization
explaining to respondents how the information will be used
In a company, the job of a chief privacy officer is to ________.
ensure timely product deliveries
detect patent infringements and copyright violations
safeguard the privacy of a firm's customers
engage in niche marketing
safeguard the privacy of senior executives
Small businesses and not-for-profit organizations can collect a significant amount of information at very little cost by researching online. They can also use observation and informal surveys effectively.
TRUE
FALSE
For international researchers, language is a primary obstacle.
TRUE
FALSE
Most major companies have now appointed a chief privacy officer (CPO), whose job is to safeguard the privacy of the companies in the international business environment.
TRUE
FALSE
Discuss how small businesses and not-for-profit organizations can obtain market insights economically.
Explain the common problems that international marketing researchers encounter.
Why do some consumers resent marketing research?
