[Solved] the development of optical scanners and cable television, marketing researchers

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[Solved] the development of optical scanners and cable television, marketing researchers

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