Archive for March 2021

Many people are unaware that an individual can preplan his or her funeral so grieving relatives will not have to. Funeral homes trying to reach this market segment should use primarily _____ segmentation.

Many people are unaware that an individual can preplan his or her funeral so grieving relatives will not have to. Funeral homes trying to reach this market segment should use primarily _____ segmentation.



A.

Psychographic


B.

Geographic


C.

Demographic


D.

Behavioural



Answer: A

Miller beer once called itself "the champagne of bottled beer," and ads showed elegant women in long white dresses sipping beer from crystal goblets. Then the company discovered that most beer is consumed by men 18 to 30 years of age, and it changed the thrust of its marketing message to reflect the more productive target market. What segmentation variable has it focused on with the newer approach?

Miller beer once called itself "the champagne of bottled beer," and ads showed elegant women in long white dresses sipping beer from crystal goblets. Then the company discovered that most beer is consumed by men 18 to 30 years of age, and it changed the thrust of its marketing message to reflect the more productive target market. What segmentation variable has it focused on with the newer approach?



A.

benefits sought


B.

usage rate


C.

product awareness


D.

buyer intentions



Answer: B

Pepperidge Farm has developed new thick-sliced French Toast Swirl bread. The company realizes most people who eat toast for breakfast, see it as a side dish. Pepperidge Farm's ads advise consumers of this bread that this new product "doesn't go with breakfast. It is breakfast." Which segmentation variable is being used in this example?

Pepperidge Farm has developed new thick-sliced French Toast Swirl bread. The company realizes most people who eat toast for breakfast, see it as a side dish. Pepperidge Farm's ads advise consumers of this bread that this new product "doesn't go with breakfast. It is breakfast." Which segmentation variable is being used in this example?



A.

behavioural


B.

psychographic


C.

demographics


D.

family size



Answer: A

Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner back home with you. Reynolds responded to this problem by creating Pot Lux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds has recognized how to use ____ variables to segment its market.

Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner back home with you. Reynolds responded to this problem by creating Pot Lux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds has recognized how to use ____ variables to segment its market.



A.

user status


B.

behavioural


C.

demographics


D.

family size



Answer: B

Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner back home with you. Reynolds responded to this problem by creating Pot Lux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds has recognized how to use ____ variables to segment its market.

Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner back home with you. Reynolds responded to this problem by creating Pot Lux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds has recognized how to use ____ variables to segment its market.



A.

user status


B.

behavioural


C.

demographics


D.

family size



Answer: B

Pearl Izumi offers three different lines of triathlon gear: Select, Elite, and Pro. Which segmentation characteristic would likely cause a beginner triathlete to purchase a product from the Pro line?

Pearl Izumi offers three different lines of triathlon gear: Select, Elite, and Pro. Which segmentation characteristic would likely cause a beginner triathlete to purchase a product from the Pro line?



A.

geographic


B.

socioeconomic


C.

behavioural


D.

product knowledge



Answer: C

Nike recently debuted King James XVII shoes (Lebron James) with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of buying situation variables to segment this market?

Nike recently debuted King James XVII shoes (Lebron James) with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of buying situation variables to segment this market?



A.

demographics


B.

psychographics


C.

awareness and intentions


D.

behavioural



Answer: D

Nike recently debuted King James XVII shoes (Lebron James) with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of customer characteristic variables to segment this market?

Nike recently debuted King James XVII shoes (Lebron James) with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of customer characteristic variables to segment this market?



A.

demographics


B.

psychographics


C.

usage


D.

benefits sought



Answer: B

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these is traditional families, it appears the Board of Tourism has segmented the market using _____ variables.

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these is traditional families, it appears the Board of Tourism has segmented the market using _____ variables.



A.

regional


B.

demographic


C.

socioeconomic


D.

geographic



Answer: B

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market. Using the latest Canada Census covering topics of: education, age, and income will be important to use in which marketing step?

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market. Using the latest Canada Census covering topics of: education, age, and income will be important to use in which marketing step?



A.

One.


B.

Two.


C.

Three.


D.

Four.



Answer: B

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store. This will dictate the diversity of products the store will carry. Which research report is most useful to this sports store?

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store. This will dictate the diversity of products the store will carry. Which research report is most useful to this sports store?



A.

"Sports Activities and Purchasing Habits, 2014 Edition"


B.

"Gender Representation in Major Urban Centres in Canada"


C.

"Population Breakdown in Major Urban Centres in Canada"


D.

"Fast Rising Sports Segment and Market Leading Products, 2014 Edition"



Answer: B

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs. It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children, it would be using _____ segmentation, but because the campaign is trying to appeal to people who do not like the restrictions of a sedan, who want to be able to pack up and leave at a moment's notice, and who enjoy freedom and independence, it is relying on _____ segmentation.

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs. It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children, it would be using _____ segmentation, but because the campaign is trying to appeal to people who do not like the restrictions of a sedan, who want to be able to pack up and leave at a moment's notice, and who enjoy freedom and independence, it is relying on _____ segmentation.



A.

socioeconomic

demographic


B.

psychographic

lifestyle


C.

demographic

usage rate


D.

demographic

psychographic



Answer: D

When a telemarketer calls to sell a consumer vinyl siding for his or her home, the first question the telemarketer asks is if the person answering the phone is a homeowner. Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

When a telemarketer calls to sell a consumer vinyl siding for his or her home, the first question the telemarketer asks is if the person answering the phone is a homeowner. Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?



A.

usage


B.

behaviour


C.

demographic


D.

buying situation



Answer: C

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages, it was relying on a _____ segmentation variable to define a market based on serving size.

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages, it was relying on a _____ segmentation variable to define a market based on serving size.



A.

regional


B.

demographic


C.

lifestyle


D.

geographic



Answer: B

Universal Concerts is planning on bringing a series of concerts to Canada next year. In order for its concerts to be a success, it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats. This consumer behaviour requires Universal Concerts to segment its Canadian market according to:

Universal Concerts is planning on bringing a series of concerts to Canada next year. In order for its concerts to be a success, it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats. This consumer behaviour requires Universal Concerts to segment its Canadian market according to:



A.

geographic and psychographic characteristics.


B.

demographic characteristics.


C.

lifestyle and demographic characteristics.


D.

usage rate and demographic characteristics.



Answer: A

Which of the following statements demonstrates geographic segmentation?

Which of the following statements demonstrates geographic segmentation?



A.

In China KFC sells a much spicier chicken in its restaurants that are farther away from the coastal areas.


B.

GE built a downsized microwave oven to hang under kitchen cabinets.


C.

Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.


D.

A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.



Answer: A

A marketing manager must be able to put a market segmentation plan into effect. This means being able to recognize the characteristics of potential buyers and _____ without encountering excessive costs.

A marketing manager must be able to put a market segmentation plan into effect. This means being able to recognize the characteristics of potential buyers and _____ without encountering excessive costs.



A.

maximize internal considerations


B.

diversify their interests


C.

optimize their different needs


D.

assign them to a segment



Answer: D

Which of the following is NOT a criterion used in forming market segments?

Which of the following is NOT a criterion used in forming market segments?



A.

potential for increased profit and ROI


B.

similarity of needs of potential buyers within a segment


C.

difference of needs of buyers between segments


D.

cost of reaching the segment



Answer: D

Which of the following is NOT a criterion used in forming segments?

Which of the following is NOT a criterion used in forming segments?



A.

potential for increased profit and ROI


B.

similarity of needs of potential buyers within a segment


C.

competitive position


D.

feasibility of marketing action to reach a segment



Answer: C

When Mikki asked her father for his advice about marketing software for the disabled, he told her, "Reaching a segment requires a simple but effective marketing action. If no such action exists, don't segment." Mikki's father is expressing concern about the:

When Mikki asked her father for his advice about marketing software for the disabled, he told her, "Reaching a segment requires a simple but effective marketing action. If no such action exists, don't segment." Mikki's father is expressing concern about the:



A.

feasibility of marketing actions to reach the segment.


B.

different needs of buyers among different segments.


C.

similarity of needs of potential buyers within a segment.


D.

simplicity and cost of assigning potential buyers to segments.



Answer: A

A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues do not offset extra costs, a marketer should _____ to reduce the number of marketing actions.

A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues do not offset extra costs, a marketer should _____ to reduce the number of marketing actions.



A.

increase the advertising budget


B.

try direct mail instead of broadcast advertising


C.

cancel current activities


D.

combine segments



Answer: D

The best segmentation approach is the one that:

The best segmentation approach is the one that:




A.

maximizes the opportunity for future profit and ROI


B.

recognizes different needs of buyers among different segments.


C.

recognizes similarities of needs of potential buyers within a segment.


D.

is simplest and least costly in assigning potential buyers to segments.



Answer: A

Between two and three percent of the population have some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these "allergies" as a separate segment. So these restaurants will need to have their regular salad bar plus a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

Between two and three percent of the population have some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these "allergies" as a separate segment. So these restaurants will need to have their regular salad bar plus a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?



A.

instrumentality of sufficient marketing objectives to ignore that segment


B.

different needs of buyers among different segments


C.

similarity of needs of potential buyers within a segment


D.

potential for increased profit and ROI



Answer: D

A new local coffee shop has noticed that in town there is a Tim Hortons, McDonald's, and Starbucks all competing for individual's daily coffee purchase. They conduct a survey of area residents who enter each one of these stores and learn that 85% desire an organic, fair-trade option. As the local coffee shop is just initiating the segmentation and targeting process, what has the local coffee shop just completed?

A new local coffee shop has noticed that in town there is a Tim Hortons, McDonald's, and Starbucks all competing for individual's daily coffee purchase. They conduct a survey of area residents who enter each one of these stores and learn that 85% desire an organic, fair-trade option. As the local coffee shop is just initiating the segmentation and targeting process, what has the local coffee shop just completed?



A.

Recognized a need.


B.

Formed prospective buyers into groups.


C.

Created product groupings.


D.

Estimated size of the overall market.



Answer: A

Mars Candies decides to extend the level of customization of their M&Ms. When you send in a salvia swab, the company will custom tailor the balance of salty/sweet/savory of the M&M to best appeal to your taste buds and ship you a package. This strategy is known as:

Mars Candies decides to extend the level of customization of their M&Ms. When you send in a salvia swab, the company will custom tailor the balance of salty/sweet/savory of the M&M to best appeal to your taste buds and ship you a package. This strategy is known as:



A.

ultra-customization


B.

mass customization


C.

ultra-personalization


D.

deliciousness



Answer: A

Johnson Gloves is a company that caters to the very affluent consumer who desires complete personalization. This Madrid-based boutique will use your fingerprints to customize your very own pair of driving gloves. The gloves are designed and created solely for you. This is an example of:

Johnson Gloves is a company that caters to the very affluent consumer who desires complete personalization. This Madrid-based boutique will use your fingerprints to customize your very own pair of driving gloves. The gloves are designed and created solely for you. This is an example of:



A.

ultra-customization


B.

ultra-personalization


C.

mass-personalization


D.

mass-appeal



Answer: A

Moto X, a smartphone offered by Google and Motorola allows customers to visit its website and design the color scheme, case, and engravings according to their personal desires. This website would particularly appeal to people who want a unique product that separates them from their peers and makes them stand out in the crowd. This would be descriptive of which type of market segmentation variable?

Moto X, a smartphone offered by Google and Motorola allows customers to visit its website and design the color scheme, case, and engravings according to their personal desires. This website would particularly appeal to people who want a unique product that separates them from their peers and makes them stand out in the crowd. This would be descriptive of which type of market segmentation variable?



A.

psychographic


B.

demographic


C.

socioeconomic


D.

usage



Answer: A

By Terry is a company that caters to the very affluent consumer who desires complete personalization. This Paris-based boutique will use your DNA and planetary alignment to customize your very own lipstick. The lipstick is designed and created solely for you. But it will cost you US$1,200. This is an extreme example of:

By Terry is a company that caters to the very affluent consumer who desires complete personalization. This Paris-based boutique will use your DNA and planetary alignment to customize your very own lipstick. The lipstick is designed and created solely for you. But it will cost you US$1,200. This is an extreme example of:



A.

product sampling


B.

product extrapolation


C.

ultra customization


D.

usage segmentation



Answer: C

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before possible. "Think of Model E as the Dell of the auto industry, designing products based on what consumers truly want and leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. From this quote, you should recognize that Model E relies on:

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before possible. "Think of Model E as the Dell of the auto industry, designing products based on what consumers truly want and leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. From this quote, you should recognize that Model E relies on:



A.

build-to-order (BTO).


B.

a one-product-one-market-segment strategy.


C.

repositioning.


D.

perceptual mapping.



Answer: A

Paris Miki enables customers to help design their own eyeglasses, using a system that eliminates the need to try on countless pairs of eyeglasses to find the right one. This is an example of:

Paris Miki enables customers to help design their own eyeglasses, using a system that eliminates the need to try on countless pairs of eyeglasses to find the right one. This is an example of:



A.

mass customization.


B.

synergy.


C.

target marketing.


D.

how the 80/20 rule is implemented.



Answer: A

Yahoo's shopping portal recently began to offer people who visited the site the ability to buy songs from Imix's collection of more than 200,000 tracks from record labels that include BMG and Sony Music Group. Customers can choose up to 70 minutes of music for around $1 per song. Then they can choose an art design and a title for each CD and have a disc shipped for $2.50. This is an example of:

Yahoo's shopping portal recently began to offer people who visited the site the ability to buy songs from Imix's collection of more than 200,000 tracks from record labels that include BMG and Sony Music Group. Customers can choose up to 70 minutes of music for around $1 per song. Then they can choose an art design and a title for each CD and have a disc shipped for $2.50. This is an example of:



A.

mass customization.


B.

how the 80/20 rule is implemented.


C.

market augmentation.


D.

market melding.



Answer: A

Custom Foot runs six retail locations. At first glance none look any different from your basic old-fashioned shoe store, but the only shoes on hand are display models. There's no inventory for sale, and customers go home empty-handed - at least initially. Customers browse the store, mixing and matching design components such as style, colour, and leather type. About 100 display shoes provide style guidelines. Once you choose a shoe style, you select materials, colours, textures and a style of sole. The retailer sells 10,000 variations in women's shoes and 7,800 in men's. Custom Foot guarantees your shoes will be ready within three weeks. This is an example of:

Custom Foot runs six retail locations. At first glance none look any different from your basic old-fashioned shoe store, but the only shoes on hand are display models. There's no inventory for sale, and customers go home empty-handed - at least initially. Customers browse the store, mixing and matching design components such as style, colour, and leather type. About 100 display shoes provide style guidelines. Once you choose a shoe style, you select materials, colours, textures and a style of sole. The retailer sells 10,000 variations in women's shoes and 7,800 in men's. Custom Foot guarantees your shoes will be ready within three weeks. This is an example of:



A.

mass customization.


B.

synergy.


C.

one product and multiple market segments.


D.

price discrimination.



Answer: A

Which social media segment is likely to be interested in purchasing the following financial service offered by a bank through an online banner-ad marketing campaign: 'No-Risk, Bonds Offering Guaranteed 5% Returns Per Annum'?

Which social media segment is likely to be interested in purchasing the following financial service offered by a bank through an online banner-ad marketing campaign: 'No-Risk, Bonds Offering Guaranteed 5% Returns Per Annum'?



A.

producers of content


B.

followers of content


C.

non-users


D.

risk-conscious users



Answer: C

Many Canadian magazines produce separate editions usually targeting unique geographic and demographic segments using a special mix of editorial content and advertisements. Maclean's produces 15 different editions, and Reader's Digest produces nine. This is an example of:

Many Canadian magazines produce separate editions usually targeting unique geographic and demographic segments using a special mix of editorial content and advertisements. Maclean's produces 15 different editions, and Reader's Digest produces nine. This is an example of:



A.

mass customization.


B.

multiple products in multiple market segments.


C.

one product and multiple market segments.


D.

price discrimination.



Answer: C

Firms offer different variations of the same basic product or service to both, high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of:

Firms offer different variations of the same basic product or service to both, high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of:



A.

mass customization.


B.

two-tier marketing strategy.


C.

one product and multiple market segments.


D.

price discrimination.



Answer: B

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and:

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and:



A.

conforms to all union regulations.


B.

reduces the number of employees required.


C.

decreases the cost of the physical plant.


D.

adds to the manufacturer's sales revenues and profits.



Answer: D

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy:

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy:



A.

is a much more effective means of meeting consumers' individual needs.


B.

is much more profitable.


C.

creates greater economies of scale (cost savings) in manufacturing costs.


D.

is a more effective way of meeting organizational objectives.



Answer: C

A new health food store is being built downtown Toronto. To build a solid customer base, they are asking consumers to discuss online important issues about healthy living and health food. Which segment will be likely purchasers of products from the new store?

A new health food store is being built downtown Toronto. To build a solid customer base, they are asking consumers to discuss online important issues about healthy living and health food. Which segment will be likely purchasers of products from the new store?



A.

Online/Real time


B.

Suits & Strategy


C.

Chat, Chill, and Connect


D.

Samplers & Lurkers



Answer: A

Which of the following is an example of a single product with multiple market segments?

Which of the following is an example of a single product with multiple market segments?



A.

Reebok shoes makes tennis shoes, running shoes, walking shoes, and Weeboks.


B.

Reach Toothbrush makes several versions of its toothbrush, which are available in a soft, medium, and hard bristle and a short or normal length head.


C.

Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.


D.

Kellogg's and Post both make bran cereals with raisins.



Answer: C

Heinz Ketchup sells their traditional 'Red Ketchup' product in three market segments. One of the advantages of this strategy is _____________ is avoided.

Heinz Ketchup sells their traditional 'Red Ketchup' product in three market segments. One of the advantages of this strategy is _____________ is avoided.



A.

the extra cost of developing and producing additional versions of the product


B.

creating a service gap


C.

indirect distribution and logistics problems


D.

strategic planning



Answer: A

A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI. When its increases in expenses more than offset the potentially increased revenues from segmentation, it should:

A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI. When its increases in expenses more than offset the potentially increased revenues from segmentation, it should:



A.

terminate as many employees as possible to save money.


B.

reduce production costs, which will lower quality.


C.

act as its own distributor.


D.

not attempt to segment its market any further.



Answer: D

One advantage of a market-product grid is that it can be used to:

One advantage of a market-product grid is that it can be used to:



A.

make optimal decisions under conditions of uncertainty.


B.

screen many new product ideas in order to select the one with the best long-run market potential.


C.

relate likely sales of products to prospective market segments.


D.

select representative samples of consumers for marketing research studies.



Answer: C

Which two aspects does a market-product grid relate?

Which two aspects does a market-product grid relate?



A.

Estimated expenses for products sold to various market segments.


B.

Total anticipated revenue for each product to market segments.


C.

Total anticipated profit for each product to segments.


D.

The segments of a market to products offered or potential marketing actions by the firm.



Answer: D

At a board meeting, the Chief Marketing Officer for Procter & Gamble provides a graphical figure that relates market segments to products offered. This graphical figure is likely a(n):

At a board meeting, the Chief Marketing Officer for Procter & Gamble provides a graphical figure that relates market segments to products offered. This graphical figure is likely a(n):



A.

growth-share matrix


B.

payoff table


C.

market-product grid


D.

product differentiation table



Answer: C

Small athletic shoe manufacturers such as Vans and New Balance have targeted niche markets and made shoes designed to satisfy needs of different customers. This strategy is an example of:

Small athletic shoe manufacturers such as Vans and New Balance have targeted niche markets and made shoes designed to satisfy needs of different customers. This strategy is an example of:



A.

mass customization.


B.

MSA and NAICS.


C.

market segmentation.


D.

synergy.



Answer: C

Marketers use market segmentation to each of the following EXCEPT:

Marketers use market segmentation to each of the following EXCEPT:



A.

to link market needs to an organization's marketing program.


B.

to relate supply to demand in economic terms.


C.

to develop specific marketing actions related to the 4 Ps.


D.

exploit economies of scale in order to focus on mass production.



Answer: D

After launching a brand new, high-end road bicycle to a specific segment interested in road races and triathlons, the company needs to determine whether they properly segmented their market. Which of the below results is likely indicative of success?

After launching a brand new, high-end road bicycle to a specific segment interested in road races and triathlons, the company needs to determine whether they properly segmented their market. Which of the below results is likely indicative of success?



A.

increased sales and profitability.


B.

increase in customer inquiries, but no purchases.


C.

increase in competition.


D.

increased confusion from prospective buyers.



Answer: A

Some Timex wristwatches can be purchased for less than $30 some Rolex wristwatches carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of communities. Rolex watches are distributed more selectively, and are often available only in fine jewellery stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Timex and Rolex watches have attempted to:

Some Timex wristwatches can be purchased for less than $30 some Rolex wristwatches carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive. The Rolex brand tends to be perceived as an expensive status symbol. Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of communities. Rolex watches are distributed more selectively, and are often available only in fine jewellery stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Timex and Rolex watches have attempted to:



A.

compete for the same segment.


B.

develop similar products.


C.

use a product differentiation strategy.


D.

build customer loyalty through direct competition.



Answer: C

KFC has modified its product to satisfy different market segments. In Holland, the mashed potatoes are replaced with a potato-and-onion croquette, and in Thailand, a customer gets fresh rice with soy or sweet chili sauce with his or her chicken. KFC uses:

KFC has modified its product to satisfy different market segments. In Holland, the mashed potatoes are replaced with a potato-and-onion croquette, and in Thailand, a customer gets fresh rice with soy or sweet chili sauce with his or her chicken. KFC uses:



A.

product positioning.


B.

market sectioning.


C.

market segmentation.


D.

product differentiation.



Answer: D

KFC is a popular fast food restaurant in North America. It opened its 500th restaurant in China in 2001 and is more popular than McDonald's in that country. One of the reasons is that when the company entered the Chinese market, it recruited its managers from Taiwan and the Chinese communities in the U.S. and Canada. This has been useful in coping with local Chinese governments and developing a distinctly different Chinese strategy, which includes Chicky, a friendly chicken character that has a strong appeal for children. To succeed in China, KFC used:

KFC is a popular fast food restaurant in North America. It opened its 500th restaurant in China in 2001 and is more popular than McDonald's in that country. One of the reasons is that when the company entered the Chinese market, it recruited its managers from Taiwan and the Chinese communities in the U.S. and Canada. This has been useful in coping with local Chinese governments and developing a distinctly different Chinese strategy, which includes Chicky, a friendly chicken character that has a strong appeal for children. To succeed in China, KFC used:



A.

product positioning.


B.

market sectioning.


C.

product differentiation.


D.

market segmentation.



Answer: C

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue, and Alka-Seltzer Heartburn Relief). Each Alka-Seltzer product is targeted to a slightly different market segment. The maker of Alka-Seltzer is using:

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue, and Alka-Seltzer Heartburn Relief). Each Alka-Seltzer product is targeted to a slightly different market segment. The maker of Alka-Seltzer is using:



A.

product differentiation.


B.

market sectioning.


C.

product targeting.


D.

product segmentation.



Answer: A

At a Hallmark store you can find several different brands of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores. Hallmark uses a _____ strategy to reach several different market segments.

At a Hallmark store you can find several different brands of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores. Hallmark uses a _____ strategy to reach several different market segments.



A.

product differentiation


B.

product extrapolation


C.

behavioural segmentation


D.

usage segmentation



Answer: A

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubble gum flavour. Sometime later, the same basic formula was given a fresh, minty flavour to appeal to adults. What is this marketing strategy called?

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubble gum flavour. Sometime later, the same basic formula was given a fresh, minty flavour to appeal to adults. What is this marketing strategy called?



A.

product sampling


B.

product extrapolation


C.

product differentiation


D.

usage segmentation



Answer: C

When Comfy Covers Ltd., a BC fiber pillow manufacturer offers firm pillows for side sleepers, medium pillows for back sleepers, and soft pillows for stomach sleepers, what is this marketing strategy called?

When Comfy Covers Ltd., a BC fiber pillow manufacturer offers firm pillows for side sleepers, medium pillows for back sleepers, and soft pillows for stomach sleepers, what is this marketing strategy called?



A.

product sampling


B.

product extrapolation


C.

product differentiation


D.

usage segmentation



Answer: C

PepsiCo sells a bottled water product to those that are health conscious. They also sell Pepsi to those that need a 'sugar rush' and 'caffeine wake-up' to get them through the afternoon. What strategy is PepsiCo using?

PepsiCo sells a bottled water product to those that are health conscious. They also sell Pepsi to those that need a 'sugar rush' and 'caffeine wake-up' to get them through the afternoon. What strategy is PepsiCo using?



A.

Dual distribution.


B.

Market differentiation.


C.

Product differentiation.


D.

Market penetration.



Answer: C

PepsiCo is assessing whether to launch a brand new type of antioxidant water product. The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is describing what?

PepsiCo is assessing whether to launch a brand new type of antioxidant water product. The marketing department has described a selection of the population as: "relatively homogeneous collections of prospective buyers." The marketing department is describing what?



A.

market segments


B.

demographic clusters


C.

organizational buyers


D.

ultimate consumers



Answer: A

To be identified as a market segment, its members must:

To be identified as a market segment, its members must:



A.

represent a large share of the entire market and have critical buying power.


B.

have common needs and respond similarly to marketing actions.


C.

have different needs and have potential for future growth.


D.

have different needs and respond similarly to market actions.



Answer: B

Henry Ford developed his Model T, a car he felt would satisfy the needs of everyone. Ford said, "They can have it in any colour, as long as it's black." His strategy was simple: focus in the economies of scale created by mass production. Ford's strategy was also known as a:

Henry Ford developed his Model T, a car he felt would satisfy the needs of everyone. Ford said, "They can have it in any colour, as long as it's black." His strategy was simple: focus in the economies of scale created by mass production. Ford's strategy was also known as a:



A.

segmented strategy.


B.

mass marketing strategy.


C.

niche marketing strategy.


D.

focused marketing strategy.



Answer: B

Consumers that have taken a survey approved by the Marketing Research and Intelligence Association (MRIA) have certain rights. These rights have been developed into what is called the Charter of Respondent Rights. When it comes to participating in an MRIA approved survey, which of the following is TRUE?

Consumers that have taken a survey approved by the Marketing Research and Intelligence Association (MRIA) have certain rights. These rights have been developed into what is called the Charter of Respondent Rights. When it comes to participating in an MRIA approved survey, which of the following is TRUE?



A.

You will be contacted at reasonable times.


B.

You can get paid for the interview going overtime.


C.

You will be paid accordingly for referring friends about the interview you have just taken.


D.

The interview must be completed in five minutes and not at meal time.



Answer: A

Consumers that have taken a survey approved by the Marketing Research and Intelligence Association (MRIA) have certain rights. These rights have been developed into what is called the Charter of Respondent Rights. All of the following are rights to the respondent except:

Consumers that have taken a survey approved by the Marketing Research and Intelligence Association (MRIA) have certain rights. These rights have been developed into what is called the Charter of Respondent Rights. All of the following are rights to the respondent except:



A.

you will not be sold anything or asked for money.


B.

you are entitled to know the approximate duration of the interview.


C.

you will be paid for your time if the interviewer goes past the approximate interview duration.


D.

you will always be told the first name of the person contacting you.



Answer: C

Neuromarketing is a new technique to measure consumer's response to marketing stimuli. Neuromarketing measures brain activity using an electroencephalography (EEG) technique or magnetic resonance imaging (MRI). Those results are then compared to the results from verbal survey-based techniques. All of the following CANNOT be measured except:

Neuromarketing is a new technique to measure consumer's response to marketing stimuli. Neuromarketing measures brain activity using an electroencephalography (EEG) technique or magnetic resonance imaging (MRI). Those results are then compared to the results from verbal survey-based techniques. All of the following CANNOT be measured except:



A.

purchase intent


B.

attitudes


C.

persuasiveness


D.

emotion



Answer: D

Neuromarketing is a new market research tool that measures the brain activity when exposed to different marketing stimuli. Which of the following statements regarding neuromarketing is FALSE?

Neuromarketing is a new market research tool that measures the brain activity when exposed to different marketing stimuli. Which of the following statements regarding neuromarketing is FALSE?



A.

need to use a small sample size.


B.

determines how a customer actually feels towards a product.


C.

can put thoughts into people's minds.


D.

very costly.



Answer: C

A catalogue retailer might determine that customers who purchased silver frames would also have a high probability of buying vintage hat pins. As a result, its sales representatives are instructed to offer a special price on hat pins when a customer places an order for a silver frame. This outcome is likely only possible because the retailer engaged in:

A catalogue retailer might determine that customers who purchased silver frames would also have a high probability of buying vintage hat pins. As a result, its sales representatives are instructed to offer a special price on hat pins when a customer places an order for a silver frame. This outcome is likely only possible because the retailer engaged in:



A.

data mining


B.

information extraction


C.

variable analysis


D.

database management



Answer: A

While conducting market research, you realize that only 40 percent of individuals are likely to re-purchase your product. Afraid this may hurt your chances of promotion, you report to your boss that 'at least 50 percent are likely to re-purchase.' This is a(n) _______ issue in marketing research.

While conducting market research, you realize that only 40 percent of individuals are likely to re-purchase your product. Afraid this may hurt your chances of promotion, you report to your boss that 'at least 50 percent are likely to re-purchase.' This is a(n) _______ issue in marketing research.



A.

ethical


B.

quality


C.

management


D.

administrative



Answer: A

Hot Topic is a California-based retailer that opened six Torrid plus-size-only retail stores that cater to women aged 15-30. The retailer used its information system to determine if the average floor space for Torrid should be 2,500 square feet or 1,900 square feet. This would be an example of a(n) _____ analysis.

Hot Topic is a California-based retailer that opened six Torrid plus-size-only retail stores that cater to women aged 15-30. The retailer used its information system to determine if the average floor space for Torrid should be 2,500 square feet or 1,900 square feet. This would be an example of a(n) _____ analysis.



A.

80/20


B.

break-even


C.

sensitivity


D.

situational



Answer: C

The marketing manager at Popular Electronics must determine a price for a new model of portable CD player. He will use the company's information system to determine how the manufacturer's suggested retail price might affect total sales revenues. This type of analysis is called:

The marketing manager at Popular Electronics must determine a price for a new model of portable CD player. He will use the company's information system to determine how the manufacturer's suggested retail price might affect total sales revenues. This type of analysis is called:



A.

database management.


B.

database training.


C.

sensitivity training.


D.

sensitivity analysis.



Answer: D

When a marketing manager begins asking "what if" questions to determine how changes in a factor like price or advertising affect marketing results like sales or profits, she is performing a(n) _____ analysis.

When a marketing manager begins asking "what if" questions to determine how changes in a factor like price or advertising affect marketing results like sales or profits, she is performing a(n) _____ analysis.



A.

marketing


B.

environmental


C.

sensitivity


D.

profitability



Answer: C

Once the research design has been formalized, the process of gathering or collecting data begins. At Pepsi, this may include going on a road trip called the 'Pepsi Taste Tour.' This activity is referred to as:

Once the research design has been formalized, the process of gathering or collecting data begins. At Pepsi, this may include going on a road trip called the 'Pepsi Taste Tour.' This activity is referred to as:



A.

Data mining


B.

Environmental scanning


C.

Fieldwork


D.

Focus groups



Answer: C

Companies hire people to pose as real customers and have them go through an exchange process and record their observations in detailed reports. The individuals posing as real customers are known as:

Companies hire people to pose as real customers and have them go through an exchange process and record their observations in detailed reports. The individuals posing as real customers are known as:



A.

mystery shoppers


B.

ethnographic shoppers


C.

pseudo shoppers


D.

quasi shoppers



Answer: A

Your boss asks you to: "Put all the names through the computer, and select every hundredth name to put on the mailing list to receive a survey." The type of population profile you will create is based on:

Your boss asks you to: "Put all the names through the computer, and select every hundredth name to put on the mailing list to receive a survey." The type of population profile you will create is based on:



A.

nonprobability sampling


B.

probability sampling


C.

extrapolation


D.

statistical inference



Answer: B

Your university wants to understand how graduates are doing two years after completing their degree. They place 2000 graduates' names in a hat and randomly begin selecting names to call. This type of selection is known as:

Your university wants to understand how graduates are doing two years after completing their degree. They place 2000 graduates' names in a hat and randomly begin selecting names to call. This type of selection is known as:



A.

nonprobability sampling.


B.

probability sampling.


C.

extrapolation.


D.

statistical inference.



Answer: B

Starbucks has decided to ask every customer that looks like they are a coffee addict if they would be interested in pre-ordering and pre-paying for their drink before they arrived at the store, so they did not have to wait in line. The decision to choose every third customer is an example of:

Starbucks has decided to ask every customer that looks like they are a coffee addict if they would be interested in pre-ordering and pre-paying for their drink before they arrived at the store, so they did not have to wait in line. The decision to choose every third customer is an example of:



A.

hypothesis generation.


B.

sampling.


C.

questionnaire research.


D.

experimental research.



Answer: B

Before Moen Inc. put its new massaging shower head, the Revolution, on the market, it wanted to find out what consumers thought about the new product design so it hired QualiData Research Inc. to enlist 20 nudists as their volunteers and paid them $250 each to answer questions about their lifestyles, and to allow QualiData to install a tiny video camera in the shower of each volunteer in order to watch them use the new showerhead. This type of research can be described as:

Before Moen Inc. put its new massaging shower head, the Revolution, on the market, it wanted to find out what consumers thought about the new product design so it hired QualiData Research Inc. to enlist 20 nudists as their volunteers and paid them $250 each to answer questions about their lifestyles, and to allow QualiData to install a tiny video camera in the shower of each volunteer in order to watch them use the new showerhead. This type of research can be described as:



A.

ethnographic.


B.

ethnomethodological.


C.

field experiments.


D.

observation.



Answer: A

Kraft is launching Deli Creations, which are sandwiches made with its Oscar Meyer meats, Kraft cheeses, and Grey Poupon mustard. Kraft spends several months with consumers in their kitchens to understand their use of the product and other kitchen behaviours. This research is referred to as:

Kraft is launching Deli Creations, which are sandwiches made with its Oscar Meyer meats, Kraft cheeses, and Grey Poupon mustard. Kraft spends several months with consumers in their kitchens to understand their use of the product and other kitchen behaviours. This research is referred to as:



A.

ethnographic.


B.

ethnomethodological.


C.

field experiments.


D.

observation.



Answer: A

A manufacturer of electronic toys is interested in learning about consumers' attitudes toward its product line. All of the following can be a source for this type of marketing information EXCEPT:

A manufacturer of electronic toys is interested in learning about consumers' attitudes toward its product line. All of the following can be a source for this type of marketing information EXCEPT:



A.

observation.


B.

mail questionnaire.


C.

in-store interview.


D.

telephone survey.



Answer: A

Kellogg's was getting ready to introduce a new ready-to-eat cereal bar. Before launching the product, they tested consumer's reaction to the product by sampling the product in grocery stores and asking consumers to fill in a questionnaire. This is an example of a(n):

Kellogg's was getting ready to introduce a new ready-to-eat cereal bar. Before launching the product, they tested consumer's reaction to the product by sampling the product in grocery stores and asking consumers to fill in a questionnaire. This is an example of a(n):



A.

hypothesis generation


B.

field experiment


C.

focus group


D.

individual interview



Answer: B

A marketer is offering free samples of ice cream to shoppers. After trying the sample, the marketer asks shoppers whether they would want to purchase a container. This is referred to as a(n) ____________ experiment.

A marketer is offering free samples of ice cream to shoppers. After trying the sample, the marketer asks shoppers whether they would want to purchase a container. This is referred to as a(n) ____________ experiment.



A.

laboratory


B.

simulated


C.

field


D.

local



Answer: C

An experimenter served identical meals to people at six tables at an elegant restaurant. At each table there was a small lantern with a rheostat. Each table had a different brightness of lighting. There was a direct correlation between the time it took the people to finish their meals and the amount of artificial light from the lantern. The dependent variable in this experiment was:

An experimenter served identical meals to people at six tables at an elegant restaurant. At each table there was a small lantern with a rheostat. Each table had a different brightness of lighting. There was a direct correlation between the time it took the people to finish their meals and the amount of artificial light from the lantern. The dependent variable in this experiment was:



A.

the degree of light.


B.

the personal eating habits of the subjects.


C.

experimenter bias in establishing guidelines.


D.

the length of time it took to finish the meal.



Answer: D

A market researcher showed a new brand of blue jeans to several groups of students and asked the students to rate the quality of the jeans. Two weeks later, the researcher showed the same students a television advertisement featuring super model Cindy Crawford wearing the new brand of jeans. The marketer asked the students to once again rate the quality of the jeans. The marketer predicted that after viewing the advertisement, the students' ratings of the new jeans would be more positive than their original ratings. In this experiment, students' ratings of the new blue jeans served as the:

A market researcher showed a new brand of blue jeans to several groups of students and asked the students to rate the quality of the jeans. Two weeks later, the researcher showed the same students a television advertisement featuring super model Cindy Crawford wearing the new brand of jeans. The marketer asked the students to once again rate the quality of the jeans. The marketer predicted that after viewing the advertisement, the students' ratings of the new jeans would be more positive than their original ratings. In this experiment, students' ratings of the new blue jeans served as the:



A.

dependent variable.


B.

independent variable.


C.

outside factors.


D.

secondary data.



Answer: A

As marketing vice president of Health Care Services, Inc., you are in charge of developing an experiment to test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory. Which experiment will do this best?

As marketing vice president of Health Care Services, Inc., you are in charge of developing an experiment to test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory. Which experiment will do this best?



A.

manipulating the independent variable of sales and assessing the impact by measuring the dependent variable of satisfied customers of health services


B.

manipulating the independent variable of salespeople assigned to a territory and assessing the impact by measuring the dependent variable of sales of health services


C.

manipulating the independent variable of sales and assessing the impact by measuring the dependent variable of sales people of health services


D.

manipulating the independent variables of sales and salespeople and assessing the impact by measuring the dependent variable of satisfied customers of health services



Answer: B

Eppie's Used Cars wanted to discover whether straight discounting worked better than a free gift. It ran two different television commercials on alternate Wednesdays. Commercial A offered 20 percent off Blue Book price for any four-wheel-drive vehicle on the lot while Commercial B offered a free tent with the purchase of any four-wheel-drive vehicle at Blue Book price. The offer was what is called the experimental independent variable. Whether it was cold or rained when any of the commercials ran is an extraneous independent variable. How many people responded to each type of offer is called the ___, and would suggest whether straight discounting or a gift incentive was the better strategy for increasing traffic.

Eppie's Used Cars wanted to discover whether straight discounting worked better than a free gift. It ran two different television commercials on alternate Wednesdays. Commercial A offered 20 percent off Blue Book price for any four-wheel-drive vehicle on the lot while Commercial B offered a free tent with the purchase of any four-wheel-drive vehicle at Blue Book price. The offer was what is called the experimental independent variable. Whether it was cold or rained when any of the commercials ran is an extraneous independent variable. How many people responded to each type of offer is called the ___, and would suggest whether straight discounting or a gift incentive was the better strategy for increasing traffic.



A.

marketing variable


B.

dependent variable


C.

market potential variable


D.

observational variable



Answer: B

A marketer sends out a newsletter to one group that has the sent address of 'newsletter@companyX.com.' This marketer sends out the same newsletter to another group that has the sent address of 'alex_g@companyX.com.' The researcher is attempting to determine the differences in response and open rates based on which address the newsletter is sent from. What is the marketer engaging in?

A marketer sends out a newsletter to one group that has the sent address of 'newsletter@companyX.com.' This marketer sends out the same newsletter to another group that has the sent address of 'alex_g@companyX.com.' The researcher is attempting to determine the differences in response and open rates based on which address the newsletter is sent from. What is the marketer engaging in?



A.

questionnaire data.


B.

nonprobability sampling.


C.

an experiment.


D.

a panel.



Answer: C

A survey shows that 92.6 percent Canadians from Ontario have used toothpaste in the last twelve months and 87.2 percent of Canadians from the Western provinces have used toothpaste during the same period. This information was most likely gathered by using which type of question?

A survey shows that 92.6 percent Canadians from Ontario have used toothpaste in the last twelve months and 87.2 percent of Canadians from the Western provinces have used toothpaste during the same period. This information was most likely gathered by using which type of question?



A.

open-ended


B.

dichotomous


C.

holistic


D.

evaluative



Answer: B

The type of question you are answering if you are asked to indicate on a seven-point scale anchored by 'highly unlikely' to 'highly likely' to the question "What is the likelihood that you will purchase a new laptop computer within the next 12 months?" is an example of a _____ question.

The type of question you are answering if you are asked to indicate on a seven-point scale anchored by 'highly unlikely' to 'highly likely' to the question "What is the likelihood that you will purchase a new laptop computer within the next 12 months?" is an example of a _____ question.



A.

Likert scale


B.

fixed alternative


C.

dichotomous


D.

semantic differential



Answer: D

Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of an open-ended question that might have been asked?

Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of an open-ended question that might have been asked?



A.

Do you wear a size 14 or larger dress?


B.

How old are you?


C.

Would you shop at a store that only sold plus-size clothing?


D.

What is your self-image?



Answer: D

The following question that appears on a questionnaire, "What is your age? A. less than 20 years old, B. 20 to 40 years old, C. 40 to 60 years old, D. 60 years old or more" is most likely an example of a(n):

The following question that appears on a questionnaire, "What is your age? A. less than 20 years old, B. 20 to 40 years old, C. 40 to 60 years old, D. 60 years old or more" is most likely an example of a(n):



A.

question with non-mutually exclusive answers.


B.

two questions in one.


C.

question with nonexhaustive answers.


D.

unanswerable question.



Answer: A

When compared with telephone and mail surveys, which of the following is NOT a characteristic of individual interview surveys?

When compared with telephone and mail surveys, which of the following is NOT a characteristic of individual interview surveys?



A.

most expensive because of interviewer's time and travel expenses


B.

greatest ability to probe and ask complex questions


C.

greatest opportunity for interviewer bias


D.

greatest difficulty in establishing rapport with the respondent



Answer: D

A publishing company sponsors an informal one-time-only session with an influential college professor who uses a given text. The professor meets to discuss the textbook, its study guide, and the product's competition. This is an example of a(n):

A publishing company sponsors an informal one-time-only session with an influential college professor who uses a given text. The professor meets to discuss the textbook, its study guide, and the product's competition. This is an example of a(n):



A.

depth (or individual) interview.


B.

experiment.


C.

focus group.


D.

small group dynamics.



Answer: A

Coca-Cola is considering getting into the smartphone market. John, who is in their marketing department, conducts a detailed interview with leading research on smartphones. This activity is referred to as:

Coca-Cola is considering getting into the smartphone market. John, who is in their marketing department, conducts a detailed interview with leading research on smartphones. This activity is referred to as:



A.

a depth (or individual) interview.


B.

an experiment.


C.

a focus group.


D.

small group dynamics.



Answer: A

Cribs 'R Us is a leading provider of baby cribs and seats to parents in Canada. They are considering making some design changes to baby cribs because they recognize that most parents eventually pass on their old crib to relatives who have new children. They asked four parents and their corresponding relatives, who engaged in this 'hand-me-down' activity, to the head office to discuss what would they want to see in a new crib edition, one specifically focused for those that hand cribs down to their relatives. Cribs 'R Us is engaging in what type of activity?

Cribs 'R Us is a leading provider of baby cribs and seats to parents in Canada. They are considering making some design changes to baby cribs because they recognize that most parents eventually pass on their old crib to relatives who have new children. They asked four parents and their corresponding relatives, who engaged in this 'hand-me-down' activity, to the head office to discuss what would they want to see in a new crib edition, one specifically focused for those that hand cribs down to their relatives. Cribs 'R Us is engaging in what type of activity?



A.

a depth (or individual) interview.


B.

an experiment.


C.

a focus group.


D.

small group dynamics.



Answer: C

Canada's military ran informal sessions in cities across Canada to find out what images should appear in the Army's next recruitment campaign. These groups of eight or nine individuals aged 18-24 responded to questions posed by a group leader regarding their opinions on reality in military ads. This is an example of a:

Canada's military ran informal sessions in cities across Canada to find out what images should appear in the Army's next recruitment campaign. These groups of eight or nine individuals aged 18-24 responded to questions posed by a group leader regarding their opinions on reality in military ads. This is an example of a:



A.

focus group.


B.

consumer panel.


C.

jury of executive opinion.


D.

Likert scale interview.



Answer: A

McGraw-Hill, a publishing company, sponsors an informal one-time-only session with seven university instructors who use a given textbook. The instructors meet to discuss the textbook, its study guide, and the product's competition. This is an example of a:

McGraw-Hill, a publishing company, sponsors an informal one-time-only session with seven university instructors who use a given textbook. The instructors meet to discuss the textbook, its study guide, and the product's competition. This is an example of a:



A.

jury of executive opinion.


B.

consumer panel.


C.

focus group.


D.

Likert scale interview.



Answer: C

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. One of the first things researchers did was to invite in a group of eight people with insurance to talk about home and auto insurance. Their conversation was recorded and later analyzed to determine if there were any differences between customers from different countries. This was an example of a(n):

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be. One of the first things researchers did was to invite in a group of eight people with insurance to talk about home and auto insurance. Their conversation was recorded and later analyzed to determine if there were any differences between customers from different countries. This was an example of a(n):



A.

experiment.


B.

mechanical observation.


C.

focus group.


D.

research variable.



Answer: C

The Toronto Blue Jays professional baseball team wanted to develop creative ways to boost sagging attendance at their ball games. The Jays hired a moderator who, after every home game during the month of July, led informal discussions with groups of six to ten fans to find out what they did and did not like about the baseball team. The discussions were tape recorded and videotaped so that researchers could review the data at a later date and in more detail. What are such informal research discussions called?

The Toronto Blue Jays professional baseball team wanted to develop creative ways to boost sagging attendance at their ball games. The Jays hired a moderator who, after every home game during the month of July, led informal discussions with groups of six to ten fans to find out what they did and did not like about the baseball team. The discussions were tape recorded and videotaped so that researchers could review the data at a later date and in more detail. What are such informal research discussions called?



A.

experiments


B.

secondary data


C.

focus groups


D.

research variables



Answer: C

Shelly, the manager of a large grocery store, was concerned. She had received complaints from several customers who said they had been treated rudely by clerks at the store. In order to determine whether or not her clerks were indeed rude, Shelly hired a team of marketing researchers. The researchers posed as customers shopping in the store, but were actually taking notes and recording the actions of the store clerks. Later, Shelly reviewed those notes. The research notes Shelly reviewed were a form of _____ data.

Shelly, the manager of a large grocery store, was concerned. She had received complaints from several customers who said they had been treated rudely by clerks at the store. In order to determine whether or not her clerks were indeed rude, Shelly hired a team of marketing researchers. The researchers posed as customers shopping in the store, but were actually taking notes and recording the actions of the store clerks. Later, Shelly reviewed those notes. The research notes Shelly reviewed were a form of _____ data.



A.

secondary


B.

developmental


C.

primary


D.

national



Answer: C

You are the product manager for a new children's cold breakfast cereal. Its proposed brand name is Barney, named after the popular, purple dinosaur of the PBS children's television show Barney & Friends. Barney cereal is positioned as a health-oriented, fun and socially positive cereal that consists of natural whole grains and fruit-sweetened, Barney-like purple dinosaurs that provide children with more than the 100 percent recommended daily allowance of vitamins A, B, and C. To ascertain the cereal's appeal among prospective buyers, each of the following would be a primary data collection method to help you make marketing decisions regarding the new Barney brand cereal EXCEPT:

You are the product manager for a new children's cold breakfast cereal. Its proposed brand name is Barney, named after the popular, purple dinosaur of the PBS children's television show Barney & Friends. Barney cereal is positioned as a health-oriented, fun and socially positive cereal that consists of natural whole grains and fruit-sweetened, Barney-like purple dinosaurs that provide children with more than the 100 percent recommended daily allowance of vitamins A, B, and C. To ascertain the cereal's appeal among prospective buyers, each of the following would be a primary data collection method to help you make marketing decisions regarding the new Barney brand cereal EXCEPT:



A.

You, personally, via a one-way mirror, watch the reactions of ten different groups of six to ten children eating bowls of the new Barney cereal with its purple dinosaurs.


B.

You refer to a recent consumer report that looks at features and attributes of children's cereals that have scored favourably in previous market testing.


C.

You send 10,000 trial boxes of Barney cereal to randomly selected households with children in Hamilton, ON (a national test market for consumer products) along with a business reply, postage-paid postcard to obtain the reactions of these households to the cereal.


D.

You contract with major supermarket chains in Calgary, AB (a major consumer products test market) to stock 10,000 standard-size boxes of Barney cereal on their shelves. You also contract with InfoScan, a consumer product sales tracking service to determine the effect of a test marketing campaign consisting of ads on Saturday morning children's programs aired locally in Calgary, coupons in the local Calgary newspapers, and a direct mailing to all households with children in the Calgary market.



Answer: B

Someone making the statement, "Before we begin this project, we'll have to hire someone to interview people to find out how many people in a 50-mile radius could use our service, what their average income is, and what their occupations are." is preparing to:

Someone making the statement, "Before we begin this project, we'll have to hire someone to interview people to find out how many people in a 50-mile radius could use our service, what their average income is, and what their occupations are." is preparing to:



A.

collect primary data.


B.

collect internal secondary data.


C.

collect external secondary data.


D.

perform a sensitivity analysis.



Answer: A

Two important advantages of secondary data are:

Two important advantages of secondary data are:



A.

they are inexpensive and up-to-date.


B.

they are up-to-date and supply all relevant categories of information.


C.

they are usually inexpensive and save time.


D.

they are tailor-made to your specifications and relatively inexpensive.



Answer: C

Marketing Works, a market research firm located in Anchorage, Alaska, specializes in providing marketing information to retail stores around the world. The employees at Marketing Works perform a variety of services for and provide a wide range of information to their clients. For example, they collect data on consumer demographics, purchase behaviour, lifestyle, and responses to sales promotions. Finally, the Marketing Works employees analyze, interpret, and interrelate the data they have collected and provide retailers with market-related information. Marketing Works is an example of a firm that offers:

Marketing Works, a market research firm located in Anchorage, Alaska, specializes in providing marketing information to retail stores around the world. The employees at Marketing Works perform a variety of services for and provide a wide range of information to their clients. For example, they collect data on consumer demographics, purchase behaviour, lifestyle, and responses to sales promotions. Finally, the Marketing Works employees analyze, interpret, and interrelate the data they have collected and provide retailers with market-related information. Marketing Works is an example of a firm that offers:



A.

single source data.


B.

informational data services.


C.

technological data services.


D.

outsource data services.



Answer: A

A supermarket placed diapers, beer, and potato chips together, and observed significant increases in the sales of all three. Which tool was likely used by the supermarket to reach the conclusion to place all three products together?

A supermarket placed diapers, beer, and potato chips together, and observed significant increases in the sales of all three. Which tool was likely used by the supermarket to reach the conclusion to place all three products together?



A.

data mining


B.

primary research


C.

secondary research


D.

single source data



Answer: A

Marketing data services offer single source data, which is information provided by a single firm on household demographics and lifestyle, purchases, TV viewing behaviour, and:

Marketing data services offer single source data, which is information provided by a single firm on household demographics and lifestyle, purchases, TV viewing behaviour, and:



A.

magazine and newspaper subscription rates.


B.

recreational activities like tennis and golf.


C.

responses to promotions like coupons and free samples.


D.

attendance at church, theatre, and the like.



Answer: C

Each of the following is an example of external secondary data EXCEPT?

Each of the following is an example of external secondary data EXCEPT?



A.

a survey by the Economic Research Service of the Canadian. Department of Agriculture


B.

government statistics from the Department of Commerce


C.

an organization's financial statements


D.

specialized online computerized databases such as Nexus or CompuServe



Answer: C

While a university student, you need to complete a research project on the beverage consumption habits of Canadians. You head into your campus library, where you have special access to research reports compiled by Financial Post, Gartner, and Deloitte. This data is called

While a university student, you need to complete a research project on the beverage consumption habits of Canadians. You head into your campus library, where you have special access to research reports compiled by Financial Post, Gartner, and Deloitte. This data is called



A.

proprietary


B.

external primary


C.

external secondary


D.

internal primary



Answer: C

According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to sell insurance through telemarketers, this research would be an example of:

According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to sell insurance through telemarketers, this research would be an example of:



A.

an objective.


B.

external secondary data.


C.

an assumption.


D.

internal data.



Answer: B

The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered from sampling, it was able to announce that 14.1 percent of all Americans lacked health care insurance in 2001. A health care organization doing research on patient non-payment would refer to this information as _____ data.

The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered from sampling, it was able to announce that 14.1 percent of all Americans lacked health care insurance in 2001. A health care organization doing research on patient non-payment would refer to this information as _____ data.



A.

proprietary


B.

primary


C.

secondary


D.

observational



Answer: C

When Karsh & Hagan Advertising Agency uses information found in Nielsen Reports, published by the A.C. Nielsen Company, to plan television advertising schedules for its clients it is relying on _____ data.

When Karsh & Hagan Advertising Agency uses information found in Nielsen Reports, published by the A.C. Nielsen Company, to plan television advertising schedules for its clients it is relying on _____ data.



A.

proprietary


B.

primary


C.

secondary


D.

observational



Answer: C

All of the following are examples of internal secondary data EXCEPT:

All of the following are examples of internal secondary data EXCEPT:



A.

Nielsen ratings reports for Ontario purchased by an organization.


B.

an organization's income statement and balance sheet for 2001.


C.

customer lists generated by an organization's marketing information system.


D.

studies conducted three years ago by the firm's market research department.



Answer: A

A researcher stands at a traffic light and counts the number of cars that make left turns. These findings will be used to determine if an 'advanced green' needs to be installed. What form of research is being conducted?

A researcher stands at a traffic light and counts the number of cars that make left turns. These findings will be used to determine if an 'advanced green' needs to be installed. What form of research is being conducted?



A.

internal secondary data.


B.

external secondary data.


C.

primary data.


D.

observational data.



Answer: C

Joe Carson, the owner of Carson Sailboats, is concerned about slumping sales. Sales so far this year are 40 percent below last year's sales. Joe is concerned. He starts doing some research on the Internet to see if there are any trends he can identify to explain the slump. He then talks to several other people in the industry to get their opinions. Joe is conducting _______ research.

Joe Carson, the owner of Carson Sailboats, is concerned about slumping sales. Sales so far this year are 40 percent below last year's sales. Joe is concerned. He starts doing some research on the Internet to see if there are any trends he can identify to explain the slump. He then talks to several other people in the industry to get their opinions. Joe is conducting _______ research.



A.

secondary


B.

preliminary


C.

exploratory


D.

causal


Answer: C

A researcher recently published findings that suggested: "shoppers are five times more likely to buy red clothing over any other colour." Three of the researcher's peers conducted an identical study, but could not conclude the same result, within significant error allowances. This suggests the study as an issue with:

A researcher recently published findings that suggested: "shoppers are five times more likely to buy red clothing over any other colour." Three of the researcher's peers conducted an identical study, but could not conclude the same result, within significant error allowances. This suggests the study as an issue with:



A.

validity


B.

measurability


C.

reliability


D.

objectivity



Answer: C

Oreo Cookies conducts an online panel to understand potential product changes for an existing buying group. The company asks the panel to rate aspects of the product that are:

Oreo Cookies conducts an online panel to understand potential product changes for an existing buying group. The company asks the panel to rate aspects of the product that are:



A.

known to be important to the buyers


B.

unknown to the buyers


C.

new product features


D.

new product benefits



Answer: A

Impiric is an integrated marketing solutions company. Whenever a client comes to it wondering why a product was not welcomed by its target audience or why customers have stopped buying another product, Impiric always suggests the marketing research process begins with:

Impiric is an integrated marketing solutions company. Whenever a client comes to it wondering why a product was not welcomed by its target audience or why customers have stopped buying another product, Impiric always suggests the marketing research process begins with:



A.

determining the target market.


B.

deciding how much time and money the client is willing to spend.


C.

defining the problem.


D.

defining the alternatives and uncertainties.



Answer: C

Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or sample offers that its advertisers expected. After defining the problem, its publisher developed a formal research plan, gathered information from teen focus groups, analyzed the findings, and replaced Watch magazine with Fuel for boys and Verve for girls. How would a marketer describe the publisher's action?

Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or sample offers that its advertisers expected. After defining the problem, its publisher developed a formal research plan, gathered information from teen focus groups, analyzed the findings, and replaced Watch magazine with Fuel for boys and Verve for girls. How would a marketer describe the publisher's action?



A.

Why fix something that is not broken? The magazine was still attracting some advertisers.


B.

It made a big deal out of a small decline - a few copy changes would have been enough.


C.

The approach it took was too complicated and costly to provide an effective solution to the problem.


D.

It took a systematic approach to marketing research.



Answer: D

When the Dairy Farmers of Canada conducted initial research on milk consumers, it discovered that many believed milk was too fattening and too high in cholesterol. The association felt that these beliefs might be related to the overall decline in milk consumption in Canada. To test this assumption, the association ran a television advertising campaign to demonstrate that milk was a healthful product and essential to a person's diet. In its tracking studies, it found that the ad campaign did change consumer attitudes toward milk, which, in turn, was related to a subsequent increase in milk consumption. This is an example of __________ research, followed up by _________ research.

When the Dairy Farmers of Canada conducted initial research on milk consumers, it discovered that many believed milk was too fattening and too high in cholesterol. The association felt that these beliefs might be related to the overall decline in milk consumption in Canada. To test this assumption, the association ran a television advertising campaign to demonstrate that milk was a healthful product and essential to a person's diet. In its tracking studies, it found that the ad campaign did change consumer attitudes toward milk, which, in turn, was related to a subsequent increase in milk consumption. This is an example of __________ research, followed up by _________ research.



A.

primary

secondary


B.

causal

descriptive


C.

descriptive

causal


D.

exploratory

causal



Answer: D

A local farmer attempts to understand if by displaying a large neon sign describing a 'two-for-one' special on pumpkins will result in an increase in sales. This farmer is undertaking what type of research?

A local farmer attempts to understand if by displaying a large neon sign describing a 'two-for-one' special on pumpkins will result in an increase in sales. This farmer is undertaking what type of research?



A.

primary research


B.

causal research


C.

descriptive research


D.

exploratory research



Answer: B

Profiling product purchasers (e.g., the Canadian shopper at the health food store), describing the size and characteristics of markets (e.g., the Canadian pizza restaurant market), detailing product usage patterns (e.g., ATM usage by Canadian bank customers), or outlining consumer attitudes toward particular brands (e.g., Canadian attitudes toward national, private, and generic brands) are collectively known as which type of research?

Profiling product purchasers (e.g., the Canadian shopper at the health food store), describing the size and characteristics of markets (e.g., the Canadian pizza restaurant market), detailing product usage patterns (e.g., ATM usage by Canadian bank customers), or outlining consumer attitudes toward particular brands (e.g., Canadian attitudes toward national, private, and generic brands) are collectively known as which type of research?



A.

primary research


B.

causal research


C.

descriptive research


D.

exploratory research



Answer: C

A survey is conducted by a local clothing retailer to understand the ratio of males versus females in a ten kilometer square around their location, in order to understand which products to carry. This research is referred to as:

A survey is conducted by a local clothing retailer to understand the ratio of males versus females in a ten kilometer square around their location, in order to understand which products to carry. This research is referred to as:



A.

primary research


B.

causal research


C.

descriptive research


D.

exploratory research



Answer: C

The Prince Edward Island Tourism Board wanted to understand why there was such a large increase in visitors to PEI last year. They conducted preliminary research with visitors to get some ideas. This is an example of:

The Prince Edward Island Tourism Board wanted to understand why there was such a large increase in visitors to PEI last year. They conducted preliminary research with visitors to get some ideas. This is an example of:



A.

primary research


B.

causal research


C.

descriptive research


D.

exploratory research



Answer: D

Blackberry is considering entering the television industry, and Ken, in the marketing department, conducts some basic research to get an initial understanding of the industry. Which type of research is Ken conducting?

Blackberry is considering entering the television industry, and Ken, in the marketing department, conducts some basic research to get an initial understanding of the industry. Which type of research is Ken conducting?



A.

descriptive research.


B.

preliminary research.


C.

exploratory research.


D.

primary research.



Answer: C

The Dairy Farmers of Canada, an association representing dairy producers in the country, wanted to discover why milk consumption was declining in Canada. The marketing manager for this association decided they should first:

The Dairy Farmers of Canada, an association representing dairy producers in the country, wanted to discover why milk consumption was declining in Canada. The marketing manager for this association decided they should first:



A.

hire a consultant.


B.

engage in marketing research.


C.

spend more dollars on advertising.


D.

hire more salespeople.



Answer: B

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