MK201 Chapters 4-5 Week 2 Quiz QuestionsTotal points: 4
Directions: Select the best response for each. Please post
your selections in the Blackboard response section numbered 1-30 with response
to each corresponding question.
Due: Sunday at midnight for each week of this course.

Scenario 4.1
Use the following to answer the questions.

Because of the development of optical
scanners and cable television, marketing researchers can now test the
effectiveness of advertising more precisely. Volunteers in a minimum of six
cities are offered food discounts in return for allowing marketing research
firms to monitor grocery purchases and send trial commercials to their homes
through cable television.

The research subjects shop only at stores
equipped with UPC scanners, and their purchases are identified by a special
card. Respondents are also told that some of the commercials they see on cable
television may differ from those seen by their neighbors. Buying patterns are
then compared. For example, Kashi cereals tested a Crunchy Wheat promotion
using this system. Half of the 5,000 participating homes in one city saw a
commercial announcing the promotion; the other half saw a commercial that did
not mention the promotion. Kashi used scanner data to evaluate the promotion’s
success and offered the commercials nationwide.

1. Refer
to Scenario 4.1. Kashi’s testing of the Crunchy Wheat promotion is an example
of

a.

the collection of secondary data.

b.

information feedback.

c.

an exploratory study.

d.

a descriptive study.

e.

defining and locating problems.

2. Refer
to Scenario 4.1. Suppose that when selecting the 5,000 homes to participate in
scanner studies in one city, the research firm first divided the city’s
population into upper-, middle-, and lower-class families, then took a
probability sample within each group. This would be a(n) ____ sample.

a.

random

b.

stratified

c.

area

d.

quota

e.

population

3. Refer
to Scenario 4.1. The 5,000 households that allowed their group purchases to be
scanned are a

a.

focus group.

b.

quota.

c.

sample.

d.

target market.

e.

population.

4. Refer
to Scenario 4.1. When the researchers compared the average sales of Crunchy
Wheat for the group that saw the promotion with the average sales for the group
that did not see the promotion, in which stage of the marketing research
process were they?

a.

Defining and locating problems

b.

Reporting research findings

c.

Developing hypotheses

d.

Collecting data

e.

Interpreting research findings

Scenario 4.2
Use the following to answer the questions.

Colin Jackson recently purchased Blue
Waters Adventures, a kayak and canoeing rental business near the Chatsworth
River in Arizona. Even though the winters in the area can be cold, kayaking and
canoeing activities are generally popular year-round. After two months of
operation, it became clear why the previous owners had sold the business: even
though it seemed to be ideally located, sales were extremely disappointing.

5. Refer
to Scenario 4.2. Colin decided to apply some of the things he had learned in
his MBA marketing research class to his business. The first thing he did was to

a.

develop a questionnaire.

b.

identify a sample frame.

c.

define the problem to be researched.

d.

conduct store exit interviews.

e.

collect secondary data.

6. Refer
to Scenario 4.2. Colin developed a research design to aid his investigation.
This design included a questionnaire that attempted to measure “outdoor
activity preferences”; however, Colin’s MBA professor said that the
questionnaire measured not “outdoor activity preferences” but
something else. The professor was questioning the research design’s

a.

reliability.

b.

significance.

c.

truthfulness.

d.

corroboration.

e.

validity.

7. Refer
to Scenario 4.2. Colin went to the university library and collected everything
he could find on the kayaking and canoeing sports industries. The type of data
he collected are known as ____ data.

a.

primary

b.

secondary

c.

descriptive

d.

exploratory

e.

mixed

8.Refer to Scenario 4.2. Besides administering
the questionnaire, Colin observed people who went kayaking and canoeing on the
Chatsworth River, making notes about their appearance and behavior. The type of
data he collected are ____ data.

a.

indirect

b.

mechanical

c.

secondary

d.

primary

e.

direct

9. Refer
to Scenario 4.2. Before administering the questionnaire, Colin discovered
through talking to other sports rental businesses that, although retired males
made up a small percentage of the area’s population, they often rented kayaks
and canoes. In light of this, Colin decided to include a minimum of 25 percent
retired males in his sample. The final choice of respondents was left up to the
interviewers. This sampling method is known as ____ sampling.

a.

quota

b.

stratified

c.

random

d.

representative

e.

area

Scenario 5.1
Use the following to answer the questions.

Lil’ Angels Kids Spa offers various
treatments designed to appeal to the younger customer. Treatment options
include manicures, pedicures, facials, tea parties, and dress up photos.
Parents can even purchase a birthday party package. Lil’ Angels offers its
services only to girls under the age of 14. Originally begun in Delaware, Lil’
Angels is considering opening its spa/salons in other parts of the country and
is planning to expand its offerings to girls aged 14 to 17. The company
realizes that some changes may be needed. For example, management wants to find
out if the older girls will be interested in their birthday party and tea party
services.

10. Refer
to Scenario 5.1. Lil’ Angels Kids Spa is currently using a(n)____ targeting
strategy.

a.

undifferentiated

b.

exclusive

c.

concentrated

d.

differentiated

e.

selective

11. Refer
to Scenario 5.1. Which of the following best describes Lil’ Angels’ current
approach to the market?

a.

It is segmenting the market according to
demographic variables.

b.

It is segmenting the market according to
product-related variables.

c.

It has chosen a segment that is not
identifiable and divisible.

d.

Its market is impossible to reach
because of legal constraints.

e.

It is not segmenting the market but is
attempting to reach everyone with the product.

12. Refer
to Scenario 5.1. Which of the following bases is Lil’ Angels using to segment
its market?

a.

behavioristic

b.

frequency of use

c.

age

d.

income

e.

family life cycle

13. Refer
to Scenario 5.1. What method should Lil’ Angels use to forecast sales in new
regions?

a.

Sales force survey

b.

Time series analysis

c.

Correlation method

d.

Market test

e.

Regression analysis

Scenario 5.2
Use the following to answer the questions.

GE Transportation produces locomotive
engines for sale in countries around the world. After looking at the total
market for locomotive engines, the company found that different rail lines
wanted engines. Major rail lines in the U.S. and South America wanted engines
to haul heavy freight. Rail lines in Sweden and Germany were interested in a
cleaner, greener locomotive engine. Rail lines operated by several Eastern
European countries wanted locomotive engines for running short distances
between cities in their own country. GE Transportation is currently
manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its
Dash 9, suited for shortline transport.

14. Refer
to Scenario 5.2. Which of the following targeting strategies is GE
Transportation most likely using?

a.

Undifferentiated

b.

Differentiated

c.

Concentrated

d.

Selective

e.

Market diffusion

15. Refer
to Scenario 5.2. What segmentation variable is GE Transportation using to
select a target market?

a.

Demographic

b.

Benefit expectations

c.

Income

d.

Volume usage

e.

Psychographic

16.Refer to Scenario 5.2. Suppose that GE
Transportation decided to produce only locomotive engines for rail lines in the
United States. The segmentation variable then would be

a.

geographic location.

b.

type of organization.

c.

market density.

d.

product use.

e.

customer size.

17. Refer
to Scenario 5.2. Researchers at GE Transportation estimate that 1,000 rail
lines throughout the world will purchase some kind of locomotive engine next
year. That number represents the

a.

company sales potential.

b.

breakdown approach.

c.

market potential.

d.

buildup approach.

e.

company sales forecast.

ANS: C PTS: 1 DIF: Difficult
OBJ: 05-05 Understand how to evaluate market
segments.
NAT: AACSB: Analytic | MKTG: Model Research MSC: Application

18. Refer
to Scenario 5.2. If a GE Transportation researcher analyzes monthly sales data
for a four-year time frame, looking for periodic fluctuations, the researcher
is doing a ____ analysis.

a.

trend

b.

seasonal

c.

cycle

d.

random factor

e.

regression

MULTIPLE CHOICE

19. If Procter & Gamble, the maker of Dawn
dishwashing liquid, wants to know what percentage of customers examine product
labels before making a product selection in the grocery store, it can best
gain this information through

a.

focus groups.

b.

mail surveys.

c.

personal interviews.

d.

observation.

e.

mall intercepts.

20. Nathan,
a marketing manager for Casual Express, a retail clothing store chain, wants to
use observation methods to gather information about shopping behavior. Which of
the following should Nathan know about observation methods of data collection?

a.

Observation uses secondary sources of
data.

b.

Observation depends on mall interviews.

c.

Observation can tell Nirendra what is
being done, but not why.

d.

Observation focuses on open-ended
questions.

e.

Observation works best for telephone
surveys.

21. Any group of people who, as individuals or as
organizations, have needs for products in a product class and who have the
ability, willingness, and authority to buy such products is a(n)

a.

business market.

b.

market.

c.

undifferentiated market

d.

segmented market

e.

market variable

22. Which
of the following is not a characteristic of a consumer market?

a.

it consists of purchasers who intend to
consume or benefit from the purchased products

b.

they do not buy products for the main
purpose of making a profit

c.

they are sometimes referred to as B2C
markets

d.

their purchasing decisions are always
made by only one individual

e.

each of us belongs to numerous markets
of this type

23. Which
of these statements is not true about business markets?

a.

the purchase may be made to resell the
item

b.

the purchase is always made by more than
one individual

c.

the purchase may be made to use in
general daily operations

d.

the purchase may be made to use in
production of another product

e.

they can also be referred to as
organizational markets

TRUE/FALSE

24. Marketing
research is a systematic and orderly gathering of information supplied through
the routine reporting system within the organization.

25. The
purpose of marketing research is to inform an organization about customers’
needs and desires, marketing opportunities for particular goods and services,
and changing attitudes and purchase patterns of customers.

26. The
first sign of a problem is usually a departure from some normal function, such
as a failure to attain objectives.

27. Online
focus groups are more expensive than tradition sit down groups.

28. A market
is a group of people who, as individuals, have needs for products in a product
class and have the ability, willingness, and authority to purchase such
products.

29. Individuals’
ability to buy depends on the amount of their buying power.

30. The
four requirements of a market are that the individuals in the market must have
a need for the product and the ability, willingness, and authority to buy it.