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Chapter 1: The Role of Marketing Research in Management

Decision Making

Essay Questions
63) Traditionally, consumer goods firms were the primary clients of marketing
research firms. However, many nontraditional types of institutions, such as universities,
the United Way, hospitals, libraries, museums, etc., are now regular customers of
marketing research suppliers. Comment on this trend.

Ans: Nontraditional institutions are now competing with each other for the consumers
or donors dollar. Therefore, these institutions have to develop consumer, goal, and
systems orientations to survive.
Difficulty: Medium
Response: See page 2
Ref: Nature of Marketing
Learning Objective 1.1: To review the marketing concept and the marketing mix.

64) Describe a project that will help a firm assess who are its best customers. Be sure
to mention which marketing research functional role is operational in this project.

Ans: Marketing research would be meeting its descriptive functional role, in


determining who a firms best customers are. Marketing research would establish a
database system of classifying the customers purchasing its clients products or services.
It would also collect information classify its clients customers in some meaningful way
(i.e. size, demographics, etc).
Difficulty: Hard
Response: See page 4-5
Ref: Marketing Research and Decision Making
Learning Objective 1.4: To understand the importance of marketing research in
shaping marketing decisions.

65) Define and illustrate the Predictive Function of Marketing Research.

Ans: The predictive function of marketing research specifies how to use diagnostic and
descriptive information to predict the results of a planned marketing decision. An
example would be a descriptive study that says females are the primary users of a
particular service, which would be the descriptive function. Further, the diagnostic
function indicates that females prefer certain service features and are not concerned with
the other features. Given that information, marketing research can forecast the demand
for a product that will more specifically meet the demands of its most important
constituency, females.

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Difficulty: Hard
Response: See page 4-5
Ref: Marketing Research and Decision Making
Learning Objective 1.4: To understand the importance of marketing research in
shaping marketing decisions.
66) As described in the first chapter, there are a number of advantages to conducting
research online. What would be some disadvantages of conducting a study solely online?

Ans: Students may intuitively understand that the online population has unique
characteristics, making online research more appropriate for certain product categories
(laptop computers) than others (retirement communities).
Difficulty: Medium
Response: See pages 14-15
Ref: Development of Marketing Research
Learning Objective 1.6: To learn how the internet is changing marketing research.

67) Explain how marketing research can help a company retain its customers and turn
them into brand loyal customers.

Ans: A discussion of customer satisfaction research and the marketing concept would
be expected for this question.
Difficulty: Medium
Response: See pages 4-6
Ref: Marketing Research and Decision Making
Learning Objective 1.1: To understand the importance of marketing research in
shaping marketing decisions.

68) Relate how a systems orientation will facilitate the firms efforts to monitor its
external environment.

Ans: Get students to relate how a systems orientation, by definition, is necessary in


order for the firm to be able to effectively monitor its external environment.
Difficulty: Medium
Response: See pages 2-3
Ref: The Marketing Concept, Opportunistic Nature of Marketing Research and External
Marketing Environment.
Learning Objective 1.2: To comprehend the marketing environment within which
managers must make decisions.

69) Explain why most marketing research done by commercial marketing research
suppliers would be best characterized as applied research.

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Ans: Students should compare the definitions of applied versus basic research,
understanding that applied research is more appropriate for managerial decision making.
Difficulty: Easy
Response: See pages 7-8
Ref: Applied Research versus Basic Research
Learning Objective 1.3: To define marketing research.

70) Discuss at least 3 reasons with ethical implications when it is best not to conduct
marketing research.

Ans: Probably the best 3 reasons which could be discussed in the context of how a
marketing researcher or client could be unethical are a) resources are lacking (researcher
quotes a price based on resources available, which may or may not achieve the research
objectives); b) decision has already been made (this is a supplier ethical problem, as the
client wants some numbers to support a pre-research decision); and c) decision making
information already exists (researcher knows information is already available via
secondary sources, but contracts for a primary research project to earn more money).
Difficulty: Hard
Response: See pages 9-10
Ref: Decision to Conduct Marketing Research
Learning Objective 1.5: To learn when marketing research should and should not be
conducted.

70) Define and discuss problem identification and problem-solving research. Discuss
how the two types of research are related. Develop an example showing the relationship
between these two types of research.
Answer: Problem identification research is undertaken to help identify problems that are
perhaps not apparent on the surface and yet exist or are likely to exist in the future.
Problem-solving research is undertaken to arrive at a solution.

Problem identification research and problem-solving research go hand in hand because


once a problem or opportunity has been identified, problem-solving research can be
undertaken. A given marketing research project may combine both types of research.
This was illustrated in the chapter opening Boeing example. The consumer surveys
identified potential demand for smaller planes (problem identification). Subsequent
research led to the introduction of the new version of the Boeing 737, which caters to the
100 to 215 seat market (problem solving). The student should supply his/her own similar
examples.
Diff: 3 Page Ref: 7-9
AACSB: Analytic Skills
LO : 1

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71) Briefly define and discuss the six steps of the marketing research process.
Answer:
Step 1: Problem Definition
In defining the problem, the researcher should take into account the purpose of the study,
the relevant background information, the information needed, and how it will be used in
decision making. Problem definition involves discussion with the decision makers,
interviews with industry experts, analysis of secondary data, and, perhaps, some
qualitative research, such as focus groups.
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or
theoretical framework, analytical models, research questions, and hypotheses and
identifying the information needed. This process is guided by discussions with
management and industry experts, analysis of secondary data, qualitative research, and
pragmatic considerations.
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the marketing research
project. It details the procedures necessary for obtaining the required information, and its
purpose is to design a study that will test the hypotheses of interest, determine possible
answers to the research questions, and provide the information needed for decision
making. Conducting exploratory research, precisely defining the variables, and designing
appropriate scales to measure them are also a part of the research design. The issue of
how the data should be obtained from the respondents (for example, by conducting a
survey or an experiment) must be addressed. It is also necessary to design a questionnaire
and a sampling plan to select respondents for the study.
Step 4: Field Work or Data Collection
Data collection involves a field force or staff that operates either in the field, as in the
case of personal interviewing (in-home, mall intercept, or computer-assisted personal
interviewing), from an office by telephone (telephone or computer-assisted telephone
interviewing), through mail (traditional mail and mail panel surveys with pre-recruited
households), or electronically (e-mail or Internet). Proper selection, training, supervision,
and evaluation of the field force helps minimize data-collection errors.
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected or edited and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the
questionnaire. The data from the questionnaires are transcribed or keypunched onto
magnetic tape or disks, or input directly into the computer. The data are analyzed to
derive information related to the components of the marketing research problem and,
thus, provide input to the management decision problem.
Step 6: Report Preparation and Presentation
The entire project should be documented in a written report that addresses the specific
research questions identified, describes the approach, the research design, data collection,
and data analysis procedures adopted, and presents the results and the major findings. The
findings should be presented in a comprehensible format so that management can readily
use them in the decision-making process. In addition, an oral presentation should be
made to management using tables, figures, and graphs to enhance clarity and impact.

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72) Traditionally, marketing researchers were responsible for assessing information needs
and providing the relevant information, whereas marketing decisions were made by the
managers. Discuss why the roles of marketing managers and marketing researchers are
changing.
Answer: These roles are changing and marketing researchers are becoming more
involved in decision making, whereas marketing managers are becoming more involved
with research. This trend can be attributed to better training marketing managers, the
Internet and other advances in technology, and a shift in the marketing research paradigm
where more and more marketing research is being undertaken on an ongoing basis rather
than in response to specific marketing problems or opportunities.
Diff: 3 Page Ref: 12
LO : 3

73) What is competitive intelligence and how does it help companies in making their
marketing decisions?
Answer: Competitive intelligence may be defined as the process of enhancing
marketplace competitiveness through a greater understanding of a firm's competitors and
the competitive environment. This process is unequivocally ethical. It involves the legal
collection and analysis of information regarding the capabilities, vulnerabilities, and
intentions of business competitors, conducted by using databases and other "open
sources" and through ethical marketing research inquiry.

Competitive intelligence enables senior managers in companies of all sizes to make


informed decisions about everything from marketing, R&D, investing tactics to long-term
business strategies. It is a crucial part of the emerging knowledge economy. By
analyzing rivals' moves, competitive intelligence allows companies to anticipate market
developments rather than merely react to them.
Diff: 3 Page Ref: 13-14
AACSB: Reflective Thinking
LO : 3

74) Write a short essay detailing what a person or student should do to prepare for a
career in marketing research.
Answer:
Take all the marketing courses you can.
Take courses in statistics and quantitative methods.
Acquire Internet and computer skills. Knowledge of programming languages is an
added asset.
Take courses in psychology and consumer behavior.
Acquire effective written and verbal communication skills.
Think creatively. Creativity and common sense command a premium.
Marketing researchers should be liberally educated so that they can understand the
problems confronting managers and address them from a broad perspective.
Diff: 3 Page Ref: 19
AACSB: Reflective Thinking
LO : 6

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75) When Eric Kim came to Samsung in 1999, he realized that Samsung's basic problem
lay in the brand's image. Describe the state of Samsung's brand image at that time and
discuss the actions Kim took to fix the brand image problem.
Answer: The Samsung brand was perceived to be inferior to other brands with
comparable products. To dig out specific actionable issues, Kim conducted marketing
research involving focus groups, depth interviews, and surveys of channel partners and
customers. The research revealed that brand image was fuzzy and inconsistent from
market to market. One reason was that it employed 55 ad agencies. Kim consolidated
advertising and sponsored big-ticket events like the Salt Lake City Olympics in 2002,
gaining quick, cost-effective global exposure.
Diff: 3 Page Ref: 20-21
AACSB: Reflective Thinking
LO : 6

76) Write a short essay explaining the differences between a marketing information
system and a decision support system.
Answer: Developed to overcome the limitations of MIS, decision support systems (DSS)
enable decision makers to interact directly with databases and analysis models. The table
below gives the comparison information shown in Figure 1.7 in the text.

Marketing Information System Decision Support Systems


Structured Problems Unstructured Problems
Use of Reports Use of Models
Rigid Structure User-Friendly Interaction
Information Displaying Restricted Adaptability
Can Improve Decision Making by Can Improve Decision Making by
Clarifying Raw Data Using "What If" Analysis
Diff: 3 Page Ref: 22
AACSB: Use of IT
LO : 7

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Chapter 2: The Marketing Research Industry and Research
Ethics

Essay Questions
52. What is the difference in a syndicated marketing research firm and a field services
marketing research firm?

Ans: Both syndicated firms and field service firms collect data. However, there are
differences. Syndicated firms are large and few in number. They collect data of a
general nature, package it, and sell it. Some of their main thrusts are media
ratings and product movement studies. Field service firms only collect data on a
contract basis. They do not have any other role in the marketing research process.
Their clients may be syndicated firms, corporations, or they may be small custom
firms.
Difficulty: Medium
Response: See pages 28-30
Ref: Research Suppliers
Learning Objective 2.3: To learn about the various types of firms and their
functions in the marketing research industry.

53. Radio station KOOL is in a large metropolitan area, and is having trouble selling
advertising space to advertisers. The advertisers contend that they dont know
how much coverage they are getting by advertising on KOOL. What kind of data
collection strategy should KOOL undertake?

Ans: Since KOOL is in a large metropolitan area, it should contract with an audience
media marketing research firm such as Arbitron. Arbitron will collect data
concerning how many people are listening to KOOL versus the competition. With
that information, KOOL will be able to more effectively market its advertising
space to potential advertisers.
Difficulty: Hard
Response: See pages 25-30
Ref: Research Suppliers
Learning Objective: 2.2: To comprehend the nature of corporate marketing
research departments.

54. Station WWWW radio has been using Arbitron for to produce numbers it can use
to sell advertising to its customers. Since beginning to use Arbitrons rating

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service their ratings have fluctuated widely and wildly from measurement to
measurement. WWWW is located in a small town on the edge of the Arbitron
rating area. The rating area is about 120 miles in diameter contain several large
cities, but the station provides coverage for only the county in which it resides,
which is sparsely populated. WWWWs advertisers are getting hesitant
concerning the coverage they are getting. What should WWWW do?

Ans: Chances are since WWWW is on the edge of the rating area, very few households
being can pick up the station. The station would be better served getting a local
consultant or custom ad hoc marketing research firm to do a rating study for just
the county that it is in.
Difficulty: Hard
Response: See pages 24-28.
Ref: Research Suppliers
Learning Objective: 2.2: To comprehend the nature of corporate marketing
research departments.

1 55. You work for a marketing research supplier and one of your clients
indicates that he would like to see the raw data for a recent study, including all of
the names and phone numbers of respondents. What do you do?
Ans: This is a tough situation to be in, but the student should be able to back up the right decision, indeed the ethical decision
(not sharing such information) by describing the ethical guidelines of marketing research, as defined by CASRO. Among
those, privacy and confidentiality are paramount.
Difficulty: Medium

Response: See pages 36-43


Ref: Marketing Research Ethics
Learning Objective 2.9: To become familiar with respondents rights.

56. Your company has decided it needs some marketing research done. However, you
are inexperienced in the evaluation of research suppliers. What are some things to
consider in the selection of a marketing research supplier?

Ans: The text notes a number of warning signs to look for when evaluation perspective
research suppliers.
Difficulty: Easy
Response: See page 34
Ref: Practicing Marketing Research
Learning Objective 2.8: To examine unethical practices among marketing research
suppliers, clients, and marketing research field services.

57. A custom ad hoc research firm is attempting to develop a template for measuring
community assessment, that it can market and administer communities in general.
It decides to construct a relatively comprehensive questionnaire with the goal of

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determining which questions are the most important generally in a community
assessment. Who would the research firm want to sample for such a study and
who would provide the sample frame?

Ans: There are a number of possible answers here. One possible suggestion would be
finding a sampling firm that would provide a national sample of respondents.
Probably doing the survey online would be the most efficient approach, and
utilizing a research panel from a sampling firm that would guarantee a certain
number of usable responses for a reasonable price per usable response.
Difficulty: Hard
Response: See pages 28-29
Ref: Research Suppliers
Learning Objective 2.3: To learn about the various types of firms and their
functions in the marketing research industry.

69) Briefly discuss problem definition and why it is the most important task in the
marketing research project.
Answer: Problem definition involves stating the general problem and identifying the
specific components of the marketing research problem. Only when the marketing
research problem has been clearly defined can research be designed and conducted
properly. Of all the tasks in a marketing research project, none is more vital to the
ultimate fulfillment of a client's needs than a proper definition of the research problem.
All the effort, time, and money spent from this point on will be wasted if the problem is
misunderstood or ill defined.
Diff: 2 Page Ref: 37
AACSB: Reflective Thinking
LO : 1

70) The problem audit involves discussions with the DM on numerous issues. List and
elaborate on these issues.
Answer:
1. The events that led to the decision that action is needed, or the history of the problem
2. The alternative courses of action available to the DM, the set of alternatives may be
incomplete at this stage, and qualitative research may be needed to identify the more
innovative courses of action
3. The criteria that will be used to evaluate the alternative courses of action; for
example, new product offerings might be evaluated on the basis of sales, market share,
profitability, return on investment, and so forth
4. The potential actions that are likely to be suggested based on the research findings
5. The information that is needed to answer the DM's questions
6. The manner in which the DM will use each item of information in making the
decision
7. The corporate culture as it relates to decision making; in some firms, the decision
making process is dominant; in others, the personality of the DM is more important.
Awareness of corporate culture may be one of the most important factors that
distinguishes researchers who affect strategic marketing decisions from those who do not.

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Diff: 3 Page Ref: 38-39
AACSB: Reflective Thinking
LO : 2

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71) A problem audit, which involves extensive interaction between the DM and the
researcher, can greatly facilitate problem definition by determining the underlying causes.
The interaction between the researcher and the DM is facilitated when one or more
people in the client organization serve as a liaison and form a team with the marketing
researcher. In order to be fruitful, the interaction between the DM and the researcher
should be characterized by the seven Cs. List and describe the seven Cs.
Answer:
1. Communication. Free exchange of ideas between the DM and researcher is essential.
2. Cooperation. Marketing research is a team project in which both parties (DM and
researcher) must cooperate.
3. Confidence. The interaction between the DM and the researcher should be guided by
mutual trust.
4. Candor. There should not be any hidden agendas, and an attitude of openness should
prevail.
5. Closeness. Feelings of warmth and closeness should characterize the relationship
between the DM and the researcher.
6. Continuity. The DM and the researcher must interact continually rather than
sporadically.
7. Creativity. The interaction between the DM and the researcher should be creative
rather than formulaic.
Diff: 3 Page Ref: 40
AACSB: Communication
LO : 2

72) Discuss the two potential difficulties that may arise when seeking advice from
experts.
Answer: 1. Some individuals who claim to be knowledgeable and are eager to
participate may not really possess expertise.
2. It may be difficult to locate and obtain the help from experts who are outside the
client organization.

For these reasons, interviews with experts are more useful in conducting marketing
research for industrial firms and for products of a technical nature, where it is relatively
easy to identify and approach the experts. This method is also helpful in situations where
little information is available from other sources, as in the case of radically new products.
Diff: 2 Page Ref: 40
AACSB: Communication
LO : 2

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73) Explain the structure of a well-defined marketing research problem, including the
broad statement and the specific components.
Answer: The general rule to be followed in defining the marketing research problem is
that the definition should (1) allow the researcher to obtain all the information needed to
address the management decision problem, and (2) guide the researcher in proceeding
with the project. Researchers make two common errors in problem definition. The first
arises when the research problem is defined too broadly. A broad definition does not
provide clear guidelines for the subsequent steps involved in the project. Some examples
of overly broad marketing research problem definitions are: (1) developing a marketing
strategy for the brand, (2) improving the competitive position of the firm, or (3)
improving the company's image. These are not specific enough to suggest an approach to
the problem or a research design.

The second type of error is just the opposite: the marketing research problem is defined
too narrowly. A narrow focus may preclude consideration of some courses of action,
particularly those that are innovative and may not be obvious. It may also prevent the
researcher from addressing important components of the management decision problem.

The likelihood of committing either type of error in problem definition can be reduced by
stating the marketing research problem in broad, general terms and identifying its specific
components (see Figure 2.3 in the text). The broad statement provides perspective on the
problem and acts as a safeguard against committing the second type of error. The specific
components focus on the key aspects of the problem and provide clear guidelines on how
to proceed further, thereby reducing the likelihood of the first type of error.
Diff: 3 Page Ref: 49
AACSB: Reflective Thinking
LO : 5

74) Explain the concept of an analytical model and discuss the different forms of
analytical models. Using the marketing scenario of your choice, provide an example of
each model. Each model should depict the same scenario.
Answer: An analytical model is a set of variables and their interrelationships designed to
represent, in whole or in part, some real system or process. Models can have many
different forms. The most common are verbal, graphical, and mathematical structures. In
verbal models, the variables and their relationships are stated in prose form. Such models
may be mere restatements of the main tenets of a theory. Graphical models are visual.
They are used to isolate variables and to suggest directions of relationships but are not
designed to provide numerical results. Mathematical models explicitly specify the
relationships among variables, usually in equation form. These models can be used as
guides for formulating the research design and have the advantage of being amenable to
manipulation.

The student should provide their own examples of each model. An example of using the
three types of models in the context of the department store project is shown in Chapter 2
of the text.

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Chapter 3: Problem Definition and the Research Process

Essay Questions
55. The President of a small state college commissions a marketing research firm to
determine why the colleges enrollment has been declining. The President
contends that the college is under funded by the state, compared with other
colleges of the same size. The research firm does a study and finds the main
reason that enrollment is declining is the lack of relationships between faculty and
students. Why might the President not be motivated to use the results of the
marketing research study?

Ans: The President might not be motivated to use the research firms results because
(1) the results do not confirm to prior expectations, and (2) the results would not
be politically acceptable within the college. The results might, in fact, cause state
legislatures to appropriate less funding for the college.
Difficulty: Hard
Response: See pages 62-67
Ref: Critical Importance of Correctly Defining the Problem
Learning Objective 3.2: To learn the steps involved in the marketing research
process.

56. A firm is experiencing a 15% sales decline over the past year. The firm contracts
with a marketing research firm to survey its customers to determine why sales are
declining. Suggest how the principals in the marketing research firm should
respond to their clients demands.

Ans: The researchers should explain that declining sales are not the problem, and that
an exploratory research effort preceding a survey will be necessary to clarify
exactly what the problem might be. After the exploratory effort, clear research
objectives can be established, and a more formal process can proceed.
Difficulty: Medium
Response: See page 59-62
Ref: Critical Importance of Correctly Defining the Problem
Learning Objective 3.1: To understand the problem definition process.

57. The United Way agency in your town has contacted you because it has been
experiencing declining donations. You tell the agency that your basic plan to

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determine why donations are declining will be exploratory, then descriptive.
Explain what the research firm means.

Ans: Exploratory Research: talk with prominent persons in the agencys community.
Ask these prominent people for their impressions of how the agency is doing in
their town. Look at the agencys donations record. Has the decline been gradual
or sudden. Descriptive Research: armed with the information from the
exploratory research effort, conduct a formal survey of the people in the
community to establish their opinions of the agency and their intentions
concerning giving to the agency.
Difficulty: Medium
Response: See page 60-63, 66-67
Ref: Critical Importance of Correctly Defining the Problem
Learning Objective 3.4: To learn the advantages and disadvantages of survey,
observation, and experiment research techniques.

58. You are part of a consulting team that is doing a marketing research project for a
businessman in a small community. The proposal is in the final stages as it is being
written and prepared for presentation. You hear one of the consultants remark the
proposal should be written in as much detail, especially statistical detail, and as
eloquently as possible. The thicker the proposal; the better. We want them to know they
are getting their moneys worth. How would you respond to your colleagues statement?

Ans: Often times the clients of marketing researchers have never had a research
methodology course, and dont have the time to plod through a detailed proposal.
So you would disagree with your colleague and state the proposal should be as
concise as possible, specifically outlining the nature of the project and the
objectives to be met.
Difficulty: Hard
Response: Pages 73-74
Ref: The Marketing Research Proposal
Learning Objective: 3.5: To become familiar with how the marketing research
process is initiated.

59. Suppose you are wanting to contract with a marketing research firm for a specific
project. What criteria would you use in your selection process?

Ans: The book outlines desirable characteristics in a marketing research supplier.


Difficulty: Easy

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Response: Page 75
Ref: What to Look for in a Marketing Research Supplier
Learning Objective: 3.5: To become familiar with how the marketing research
process is initiated.

60. What is the Research Request? Why is it so important? What should you
include in the research request?

Ans: The Research Request is a document outlining potential research. It outlines the
steps that will be taken, associated costs, research objectives and any critical
issues that need to be assessed before the project can begin. It is important
because, if accepted, it becomes a written agreement between supplier and client.
The specific components of the Research Request are outlined in the text.
Difficulty: Medium
Response: Pages 71-72
Ref: Managing the Research Process
Learning Objective: 3.3: To understand the components of the research request.

86) Compare and contrast the exploratory, descriptive, and causal research designs (Table
3.2 in the text).
Answer: A comparison of the basic research designs appears in Table 3.2 in the text.

The objective of exploratory design is to discover ideas and insights; of descriptive


design is to describe market characteristics; of causal design to determine cause and
effect or functions.

The characteristics of exploratory design include flexibility, versatility, and that it is often
used as the front end of total research design. The characteristics of descriptive design
include its preplanned and structured design and that it is marked by the prior formulation
of specific hypotheses. The characteristics of causal design include the fact that
mediating variables must be controlled for and that one or more independent variables are
manipulated.

Methods using exploratory design include expert surveys, pilot surveys, secondary data
(which is analyzed qualitatively), and qualitative research. Methods using descriptive
design include secondary data (which is analyzed quantitatively), surveys, panels, and
observational and other data. Methods using causal design include experiments.
Diff: 3 Page Ref: 72
AACSB: Analytic Skills
LO : 2

87) Patronage at the local Macy's has been declining. What is the cause and how can it
be stopped? Use the six Ws used in descriptive design to clearly define the information
needed to address this management decision problem.
Answer: The six Ws are as follows:

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Who-Who should be considered a patron of a particular department store?
What-What information should be obtained from the respondents?
When-When should the information be obtained from respondents?
Where-Where should the respondents be contacted to obtain the required information?
Why-Why are we obtaining information from the respondents?
Way-In what way are we going to obtain information from the respondents?

The students should have their own responses geared specifically toward the department
store patronage project.
Diff: 3 Page Ref: 74-75
AACSB: Analytic Skills
LO : 2

88) Define cross-sectional design and longitudinal design. Develop an example of each
using the same basic situation.
Answer: A cross-sectional design is a design in which one sample of respondents is
drawn from the target population and information is obtained from this sample once. A
longitudinal design is a type of research design involving a fixed sample of population
elements that is measured repeatedly on the same variables. The sample remains the
same over time, thus providing a series of pictures which, when viewed together, portray
a vivid illustration of the situation and the changes that are taking place over time.

The students should provide their own examples of each using a situation of their choice.
Diff: 2 Page Ref: 76-79
AACSB: Reflective Thinking
LO : 2

89) What are the relative advantages and disadvantages of longitudinal versus cross-
sectional designs?
Answer: The relative advantages and disadvantages of longitudinal and cross-sectional
design are shown in Table 3.4 in the text. A major advantage of longitudinal design over
cross-sectional design is the ability to detect change as a result of repeated measurement
of the same variables on the same sample.
Diff: 3 Page Ref: 79
AACSB: Reflective Thinking
LO : 2

90) Briefly define and discuss random sampling error, non-sampling error, and the two
major types of non-sampling error.
Answer: Random sampling error occurs because the particular sample selected is an
imperfect representation of the population of interest. Random sampling error is the
variation between the true mean value for the population and the true mean value for the
original sample.

Non-sampling errors can be attributed to sources other than sampling, and they may be
random or nonrandom. They result from a variety of reasons, including errors in problem
definition, approach, scales, questionnaire design, interviewing methods, and data

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preparation and analysis.

Non-response error arises when some of the respondents included in the sample do not
respond. The primary causes of non-response are refusals and not-at-homes. Non-
response will cause the net or resulting sample to be different in size or composition from
the original sample. Non-response error is defined as the variation between the true mean
value of the variable in the original sample and the true mean value in the net sample.

Response error arises when respondents give inaccurate answers or their answers are mis-
recorded or mis-analyzed. Response error is defined as the variation between the true
mean value of the variable in the net sample and the observed mean value obtained in the
marketing research project.
Diff: 3 Page Ref: 85-87
AACSB: Analytic Skills
LO : 3

91) Discuss how the Internet can facilitate the implementation of different types of
research designs.
Answer: During the exploratory phase of the research, forums, chat rooms, or
newsgroups can be used to generally discuss a topic with anyone who visits the chat
room. Newsgroups focus on a particular topic and function like bulletin boards. During
the exploratory phase of the research, forums, chat rooms, or newsgroups can be used to
generally discuss a topic with anyone who visits the chat room. Newsgroups focus on a
particular topic and function like bulletin boards. Internet users stop by a newsgroup to
read messages left by others and to post their own responses or comments. Newsgroups
or chat rooms could be used to set up more formal focus groups with experts or
individuals representing the target audience in order to obtain initial information on a
subject. For descriptive research, surveys can be conducted on the Internet and Internet
browsing behavior can be observed by using cookies. For causal research, experiments
can be conducted on the Internet.

19
Chapter 4: Secondary Data and Databases

Essay Questions
53. Describe some of the important parts of an organizations information
management system.

Ans: Some of the parts would be as follows:


Computerized data bases
Published secondary sources
Internal databases
Data management system to assimilate and coordinate data, and make it easily
accessible to managers in a user-friendly form
Provide a system of information that will facilitate managerial decision making
Difficulty: Medium
Response: See pages 94-95, 106-109
Ref: Internal Databases, Information Management
Learning Objective 4.6: To learn about the types of information management
systems.

54. What are some of the advantages of secondary data? More specifically, what are
the advantages of secondary data over primary data?

Ans: Advantages of Secondary Data:


Help clarify a problem during exploratory research
May provide a solution to a problem
Provide primary data research alternatives
Provide background information
Alert marketers to potential problems
Advantages over Primary Data:
Can be collected much more quickly
Costs are a fraction of the cost of acquiring primary data
Difficulty: Medium
Response: See pages 90-92
Ref: Nature of Secondary Data
Learning Objective 4.4: To understand the advantages and disadvantages of using
secondary data.

55. How can data mining assist the direct marketer that publishes a customized
catalog for its customers?

20
Ans: Data mining uses statistical and other advanced software to discover nonobvious
patterns hidden in a database. Hence, data mining can assists in two contexts:
First, data mining can evaluate the direct marketers own database, and search for
patterns of behavior, linking those patterns to demographic characteristics.
Hence, the direct marketer knows what their customers of certain product look
like. Second, data mining can also discern a market basket for customers with
certain demographic characteristics. Hence, given a particular demographic
profile, the direct marketer will be able to predict the combinations of items likely
to be bought. The result is that the direct marketer can do a much better job of
meeting the needs of target customers by offering combinations of products they
would be more likely to purchase.
Difficulty: Hard
Response: See pages 97-99
Ref: Internal Databases
Learning Objective 4.3: To become familiar with data mining.

56. An entrepreneur is contemplating establishing a funeral home in a small town.


This person believes the demand for funeral home services is greater than the
services being provided. Initially, the entrepreneur contacts a consultant and tells
the consultant he needs a community survey to determine the total demand for
funeral home services in the small town and surrounding communities. If you
were the consultant, how would you react to the entrepreneurs request for a
survey? What kind of counter proposal would you make?

Ans: A survey would not be the best way to approach forecasting funeral home
demand. The consultant could find secondary data, probably from the Census,
that would yield death rates for the community in question, which could be
extrapolated for the population growth to yield an estimates of the number of
deaths in a particular geographic area.
Difficulty: Hard
Response: See pages 90-93
Ref: Nature of Secondary Data
Learning Objective 4.4: To understand the advantages and disadvantages of using
secondary data.

57. Describe a situation in which a geographic information could be used along with
secondary data.

Ans: There are many possibilities some of which are described on pages 107-108. One
example would be the location of a shopping center. A GIS could be loaded with
Census data and plotted by census tract to indicate changes in population and
income distribution. Then traffic flow information could be added to the maps to
highlight how people move about in an area.

21
Difficulty: Medium
Response: See pages 107-109
Ref: Information Management
Learning Objective 4.6: To learn about types of information management systems.

58. Describe a situation in which a marketing research aggregator could benefit a


client or marketing research supplier.

Ans: Marketing Research Aggregators provide a secondary market for marketing


research reports that have been previously produced for some other purpose.
Suppose a small company needed demand estimates for several products. An
aggregator might have access to studies involving such products without the
company having to contract for a number of expensive individual forecasts.
Difficulty: Medium
Response: See pages 106
Ref: Information Management
Learning Objective 4.6: To learn about types of information management

80) Discuss the advantages and uses of secondary data.


Answer: Secondary data are easily accessible, relatively inexpensive, and quickly
obtained. Secondary data can help you:
Identify the problem
Better define the problem
Develop an approach to the problem
Formulate an appropriate research design (for example, by identifying the key
variables)
Answer certain research questions and test some hypotheses
Interpret primary data more insightfully
Diff: 2 Page Ref: 101
AACSB: Reflective Thinking
LO : 2

22
81) List the issues to be considered when evaluating secondary data using the
specification/methodology criteria (Table 4.2 in the text).
Answer:
Data collection
Response rate
Quality of data
Sampling technique
Sample size
Questionnaire design
Fieldwork
Data analysis
Diff: 3 Page Ref: 102
AACSB: Analytic Skills
LO : 3

82) List the criteria for evaluating secondary data (Table 4.2 in the text).
Answer: Secondary data should be evaluated on the following criteria which are fully
described in Table 4.2 in the text.
Specification/methodology
Error/Accuracy
Currency
Objective
Nature
Dependability
Diff: 3 Page Ref: 102
AACSB: Analytic Skills
LO : 3

83) What are the major advantages of secondary internal data?


Answer: Secondary internal data have two significant advantages. They are easily
available and inexpensive. In fact, secondary sources are generally the least costly of any
source of marketing research information; yet these data often are not fully exploited.
Diff: 1 Page Ref: 106
AACSB: Reflective Thinking
LO : 4

23
84) What are purchase panels and media panels? Develop examples of marketing
situations where you would use each. Be sure to explain the type of information you
would collect and the makeup of the panel respondents.
Answer: In purchase panels respondents record their purchases online or in a diary.
Media panels comprise samples of respondents whose television viewing behavior is
automatically recorded by electronic devices supplementing the purchase information
recorded online or in a diary.

Students should give their own examples. Completer information on the NPD Group and
Nielsen Media Research examples given here are in the text.

NPD uses purchase panels to gather information on consumer behaviors on a wide range
of product categories including food, fashion, fun, house and home, tech, and auto.
Detailed information is gathered on the brand, amount purchased, price paid, intended
use, and more. The composition of the panel is representative of the U.S. population as a
whole. A 2005 study identified the top 5 women's accessory purchases.

Nielsen Media Research uses People Meters to measure audiences for local television 4
times a year in the 210 TV markets in the country. Viewers write in diaries who watched,
what channel they watched, and what program they watched. Five thousand households
are randomly selected by Nielsen so as to be representative of the U.S. population. Using
these data, Nielsen estimates the number and percentage of all TV household viewing a
given show. The information is disaggregated by 10 demographic and socioeconomic
characteristics. The Nielsen Index is useful to firms in selecting specific TV programs on
which to air their commercials.
Diff: 3 Page Ref: 118-120
AACSB: Reflective Thinking
LO : 5

85) Discuss the disadvantages of different types of scanner data.


Answer: A major weakness of scanner data is lack of representativeness. National
volume tracking data may not be projectable onto the total population, because only large
supermarkets have scanners. Also, certain types of outlets, such as food warehouses and
mass merchandisers, are excluded. Likewise, scanners have limited geographical
dispersion and coverage.

The quality of scanner data may be limited by several factors. All products may not be
scanned. For example, a clerk may use the register to ring up a heavy item to avoid lifting
it. If an item does not scan on the first try, the clerk may key in the price and ignore the
bar code. Sometimes a consumer purchases many flavors of the same item, but the clerk
scans only one package and then rings in the number of purchases. Thus, the transaction
is inaccurately recorded. With respect to scanner panels, the system provides information
on TV sets in use rather than actual viewing behavior. Although scanner data provide
behavioral and sales information, they do not provide information on underlying
attitudes, preferences, and reasons for specific choices.
Diff: 3 Page Ref: 122

24
AACSB: Use of IT
LO : 5

25
86) Discuss single-source data. What is it and how is it related to computer mapping?
Answer: It is desirable to combine secondary information obtained from different
sources. One outcome of the effort to combine data from different sources is single-
source data. Combining data allows the researcher to compensate for the weakness of
one method with the strengths of another. Single-source research follows a person's TV,
reading, and shopping habits. After recruiting a test panel of households, the research
firm meters each home's TV sets and surveys family members periodically on what they
read. Their grocery purchases are tracked by UPC scanners. For background, most
systems also track retail data, such as sales, advertising, and promotion. Thus, single-
source data provide integrated information on household variables, including media
consumption and purchases, and marketing variables such as product sales, price,
advertising, promotion, and in-store marketing effort.

Computer mapping is related to single-source data because they both combine secondary
data from different sources. Computer mapping combines geography with demographic
information and a company's sales data or other proprietary information to develop
thematic maps. Marketers now routinely make decisions based on these color-coded
maps.

26
Chapter 5: Qualitative Research

Essay Questions

56. As the first stage of a comprehensive physician-satisfaction study, a hospital


wants a market researcher to interview about 20% of its 100 physicians. There is
known to be quite a bit of animosity between primary care physicians and
specialty physicians, as well as between physicians with less than five years of
tenure with the hospital and those with five or more years of tenure. Recommend
a qualitative analysis technique and give reasons for your selection.

Ans: Focus groups offer the advantage of group dynamics, which might be a big
disadvantage if the wrong combination of physicians end up in the same focus
group. In addition, physicians may be hesitant to criticize a hospital in which they
have privileges, for fear of reprisal. Hence, even though it will take longer to
complete, depth interviews would be the preferable mode of research.
Difficulty: Hard
Response: See pages 119-135
Ref: The Importance of Focus Groups; Other Qualitative Methodologies
Learning Objective 5.4: To gain insight into conducting and analyzing a focus
group.
Learning Objective 5.5: To learn about other forms of qualitative research.

57. A group of citizens thinks Drysville, Arkansas, is achieving its potential as a city,
because it is dry. Drysville is a very religious and conservative community that
has experienced some growth as a bedroom community to Sin City. Hence, the
population has grown to the extent that the group favoring a wet city thinks it
may now have the votes. However, before embarking on an expensive petition-
signing campaign, the group favoring wet wants a market researcher to give
them more insights via a qualitative research effort. The issue is very sensitive,
and the wet group thinks that many of its supporters may not come forward due
to possible peer pressure. What method or methods of qualitative research would
you recommend?

Ans: This question could have several answers. One approach would be a screened
focus group interview, selecting only persons favoring wet. A possible richer
but more volatile approach would be a mix of opinions in the focus group,
augmented with the use of third-person projective techniques to get beneath
surface inhibitions, due to possible peer pressure.
Difficulty: Medium

27
Response: See pages 117-119
Ref: Nature of Qualitative Research
Learning Objective 5.2: To explore the popularity of qualitative research.

58. You have just conducted a set of focus groups for a client, and the results are
positive about launching a new product. What words of caution would you give
the client before they make this multi-million dollar decision?

Ans: The answer should include some of the limitations of qualitative research, such as
the fact that the responses of focus groups are not representative of the population.
An ideal answer would probably include a recommendation of conducting
quantitative research to supplement the findings from the focus groups.
Difficulty: Easy
Response: See pages 117-119
Ref: Nature of Qualitative Research
Learning Objective 5.1: To define qualitative research.
Learning Objective 5.2: To explore the popularity of qualitative research.

59. Distinguish between quantitative and qualitative research, especially with respect
to the appropriateness of each.

Ans: Exhibit 5.1 distinguishes between qualitative and quantitative research with
qualitative research being more appropriate in the exploratory stages of a project
when insights and not quantification is needed. Later, if the project is descriptive
in nature, and the goal is to get a representative response, quantitative research is
more appropriate.
Difficulty: Easy
Response: See pages 117-119
Ref: Nature of Qualitative Research
Learning Objective 5.1: To define qualitative research.

60. Why do people participate in focus groups? What are a few things the moderator
can do to encourage participation by participants once they are at the focus group
facility?

Ans: Page 122 details 7 reasons that people participate in focus groups, with the top
reason being money. By providing excellent refreshments (soda and fresh
chocolate chip cookies) and stimulating informal group dynamics through
informal introductions, the moderator can facilitate the interaction and
participation among focus group participants.
Difficulty: Medium
Response: See pages 121-124

28
Ref: Conducting Focus Groups
Learning Objective 5.4: To gain insight into conducting and analyzing a focus
group.

61. Why is it so important that there be a good rapport among focus group
participants?

Ans: The key advantage of the focus group technique is group dynamics. In other
words, the participants provide cues for each other with their answer, therefore
stimulating responses from respondents that normally would not have occurred
without the cue. Hence, a healthy rapport among participants is needed to
motivate them to respond in a way that will be of value to the focus group
proceedings and stimulate group dynamics.
Difficulty: Medium
Response: See pages 124-125
Ref: Conducting Focus Groups/Practicing Marketing Research

94) Discuss the five themes qualitative research has uncovered about baby boomers.
Why is this type of research important?
Answer:
1. Quality family life is a major concern.
2. Keeping in touch with friends is an integral element of the boomer lifestyle.
3. Taking time to get away from the hassles of everyday life in the form of "getaway
vacations" with family and friends helps to maintain firm understanding of what is
important in life and recharge dying batteries.
4. Spiritual and physical fitness are important in leading a full, well-balanced life.
5. No such thing as a mid-life. Life is too short to dwell on successes or failures.

This type of research is invaluable in designing advertising and promotional campaigns.


It provides the necessary foundation for appealing to those values that are most important
to the boomer and to those values that are most likely to stimulate their buying behavior.
Diff: 3 Page Ref: 137
AACSB: Reflective Thinking
LO : 1

95) Compare and contrast qualitative and quantitative research (Table 5.1 in the text)
Answer: The differences in the two methodologies are summarized in Table 5.1 in the
text.
The objective of qualitative research is to gain qualitative understanding of the
underlying reasons and motivations while the objective of quantitative research is to
quantify the data and generalize the results from the sample to the population of interest.

Samples used in qualitative research consist of small and nonrepresentative cases while
those used in quantitative research consist of large and representative cases.

29
The data collection for qualitative research is unstructured while quantitative research is
structured.

Qualitative research utilizes nonstatistical data analysis and quantitative research utilizes
statistical data analysis. The outcome for qualitative research is to develop an initial
understanding. The outcome for quantitative research is to recommend a final course of
action.
Diff: 3 Page Ref: 139
AACSB: Analytic Skills
LO : 1

96) You are deciding which approach would be best to use to determine what milk
drinkers consider the best food to accompany a glass of milk. Which qualitative
technique would you choose and why?
Answer: The student should choose a direct approach such as focus groups or depth
interviews. There is no need to disguise the purpose of the project. There is also no
reason that most people would be unwilling or unable to respond to questions on what
they eat with milk.
Diff: 2 Page Ref: 140-141, 163
AACSB: Analytic Skills
LO : 2

30
97) Discuss the characteristics of focus groups (Table 5.2 in the text). List at least four
(4) characteristics and explain why it is important to consider each characteristic.
Answer: Characteristics of focus groups are summarized in Table 5.2 in the text.
1) Group size 8 to 12 - groups of fewer than eight are unlikely to generate the
momentum and group dynamics necessary for a successful session. Groups of more than
12 may be too crowded and may not be conducive to a cohesive and natural discussion.
2) Group composition - Homogeneous; respondents prescreened - commonality among
group members avoids interactions and conflicts among group members on side issues.
3) Physical setting - Relaxed, informal atmosphere - encourages spontaneous comments.
4) Time duration - 1 to 3 hours - needed to establish rapport with the participants and
explore, in depth, their beliefs, feelings, ideas, attitudes, and insights regarding the topic
of concern.
5) Recording - Use of audiocassettes and videotapes - videotaping has the advantage of
recording facial expressions and body movements, but it can increase the costs
significantly. Video transmission technology enables the clients to observe focus group
sessions live from a remote location.
6) Moderator - Observational, interpersonal, and communication skills of the moderator
- moderator must establish rapport with the participants, keep the discussion moving
forward, and probe the respondents to elicit insights. In addition the moderator may have
a central role in the analysis and interpretation of the data.
Diff: 3 Page Ref: 142-143
AACSB: Analytic Skills
LO : 3

98) Why is the online focus group process faster to analyze than the traditional method?
Answer: The online focus group process is faster to analyze than the traditional focus
group method because respondents are asked to always start their response with the
question number, so the moderator can quickly tie the response to the proper question.
This makes it fast and easy to transcribe a focus group session. The group interaction
lasts for about an hour. A raw transcript is available as soon as the group is completed,
and a formatted transcript is available within 48 hours.
Diff: 2 Page Ref: 150-151
AACSB: Reflective Thinking
LO : 3

99) Discuss the advantages of online focus groups.


Answer: People all over the country and the world can participate and the client can
observe the group from the convenience of the home or office. Geographical constraints
are removed and time constraints are lessened. You have the unique opportunity to
contact group participants again at a later date, to revisit issues, or introduce them to
modifications in material presented in the original focus group. The Internet enables the
researcher to reach segments that are usually hard to survey: doctors, lawyers,
professionals, working mothers, and others who lead busy lives and are not interested in
taking part in traditional focus groups. Moderators may also be able to carry on side
conversations with individual respondents, probing deeper into interesting areas.
Because there is no travel videotaping, or facilities to arrange, the cost is much lower
than for traditional focus groups.

31
Diff: 3 Page Ref: 151
AACSB: Reflective Thinking
LO : 3

100) Discuss the disadvantages of online focus groups.


Answer: Only people that have and know how to use a computer can be surveyed online.
Because the name of an individual on the Internet is often private, actually verifying that
a respondent is a member of a target group is difficult. To overcome this limitation, other
traditional methods such as telephone calls are used for recruitment and verification of
respondents.

Another factor that must be considered is the lack of general control over the respondent's
environment and their potential exposure to distracting external stimuli. Because online
focus groups could potentially have respondents scattered all over the world, the
researchers and moderator(s) have no idea what else the respondents may be doing while
participating in the group. Only audio and visual stimuli can be tested. Products cannot be
touched (e.g., clothing) or smelled (e.g., perfumes).
Diff: 3 Page Ref: 151
AACSB: Reflective Thinking
LO : 3

101) List at least five (5) applications of depth interviews. Give a specific example of
each.
Answer: Depth interview applications include all of the following:
1. Detailed probing of the respondent (automobile purchase)
2. Discussion of confidential, sensitive, or embarrassing topics (personal finances, loose
dentures)
3. Situations where strong social norms exist and the respondent may be easily swayed
by group response (attitude of college students toward sports)
4. Detailed understanding of complicated behavior (department store shopping)
5. Interviews with professional people (industrial marketing research)
6. Interviews with competitors, who are unlikely to reveal the information in a group
setting (travel agents' perceptions of airline package travel programs)
7. Situations where the product consumption experience is sensory in nature, affecting
mood states and emotions (perfumes, bath soap)
Students should provide their own examples.
Diff: 3 Page Ref: 156-157
AACSB: Reflective Thinking
LO : 4

102) Discuss the major advantage of projective techniques over the unstructured direct
techniques (focus groups and depth interviews).
Answer: Projective techniques have a major advantage over the unstructured direct
techniques (focus groups and depth interviews): they may elicit responses that subjects
would be unwilling or unable to give if they knew the purpose of the study. At times, in
direct questioning, the respondent may intentionally or unintentionally misunderstand,
misinterpret, or mislead the researcher. In these cases, projective techniques can increase

32
the validity of responses by disguising the purpose. This is particularly true when the
issues to be addressed are personal, sensitive, or subject to strong social norms.
Diff: 2 Page Ref: 162-163
AACSB: Reflective Thinking
LO : 5

103) Because the researcher is often not familiar with the foreign product market to be
examined, qualitative research is crucial in international marketing research. Discuss the
issues a company should consider before using projective techniques in international
marketing research.
Answer: Because the researcher is often not familiar with the foreign product market to
be examined, qualitative research is crucial in international marketing research. The use
of projective techniques in international marketing research should be carefully
considered. Association techniques, completion techniques, and expressive techniques
involve the use of verbal cues. Construction techniques employ nonverbal stimuli
(pictures). Whether verbal or nonverbal stimuli are used, the equivalence of meaning
across the cultures should be established. This can be a difficult task if the socio-cultural
environments in which the research is conducted vary greatly. Establishing the
equivalence of pictures can be particularly problematic. Line drawings are subject to
fewer problems of interpretation than photographs. The specific techniques that are used
and how the results are communicated should take into account the cultural aspects and
the nature of the problem being addressed.

33
Chapter 6: Traditional Survey Research

Essay Questions
45. What types of error would be most likely in each of the following circumstances?
a. telephone survey using only a telephone book
b. having members of the Dallas Cowboys Cheerleading Squad administer
mall intercept interviews
c. asking respondents how much they spend on eating out in a year
d. mail survey of physicians
e. Please indicate your annual household income. $ _________________

Ans:
a. a. sample frame error, especially if the telephone book is more than six
months old;
b. interviewer bias, in that respondents would become distracted with the
appearance of the interviewer;
c. response bias, as the time period is too long for respondents to be able to
accurately estimate how much they spent eating out;
d. nonresponse bias, as professionals are the least likely to respond to a
survey unless it is something that directly affects them, and mail surveys
generally have problems with high nonresponse rates;
e. response bias in the form of deliberate falsification, as the income question
produces high refusal rates even when categorized. Asking for the exact
amount will result in either refusal or falsification of the amount.
Difficulty: Hard
Response: See pages 152-157
Ref: Types of Errors in Survey Research
Learning Objective 6.2: To learn about the types of errors in survey research.

46. What are the major factors that determine the selection of a particular survey
method?

Ans: The factors are outlined in Exhibit 6.6 with further detail in pages indicated.
Difficulty: Medium
Response: See pages 166-170
Ref: Determination of the Survey Method
Learning Objective 6.4: To gain insight into the factors that determine the choice of
particular survey methods.

47. A client is contracting with a marketing research supplier concerning a survey that
would be answered multiple times over a period of time. Which of the non-
Internet forms of survey research would be most appropriate?

34
Ans: Longitudinal research can best be accomplished via mail panels, as the
respondents have usually agreed to participate in a number of surveys over a
period of time. The other non-Internet survey methods do not consist of a sample
frame in which the potential respondents have agreed to participate for a period of
time.
Difficulty: Medium
Response: See page 167
Ref: Exhibit 6.5: Non-Internet Forms of Survey Research
Learning Objective 6.4: To gain insight into the factors that determine the choice of
particular survey methods.

48. A potential marketing research client contacts a supplier about a possible survey.
Seems that the client is interested in establishing a snow skiing equipment
business in Arkansas surveying and wants to survey Arkie snow skiers to get an
estimate on potential. The consultant tells the potential client that such a survey
may not be feasible, or at best would be very time consuming and expensive.
What is the basis of the consultants response.

Ans: The researchers response is because such a survey would involve a low incidence
rate among the target population, Arkie snow skiers. Hence, in order to get a
statistically reliable number of usable responses, the consultant would have to
make an unusually large number of contacts. One would expect the incidence rate
to be much higher is states like Colorado and New Mexico, where ski resorts are
located.
Difficulty: Hard
Response: See pages 169-170
Ref: Incidence Rate
Learning Objective 6.4: To gain insight into the factors that determine the choice of
particular survey methods.

77) Discuss the personal interviewing methods.


Answer: Personal interviewing methods may be categorized as in-home, mall intercept,
or computer-assisted. In personal in-home interviews, respondents are interviewed face-
to-face in their homes. The interviewer's task is to contact the respondents, ask the
questions, and record the responses. In mall intercept personal interviews, respondents
are intercepted while they are shopping in malls and brought to test facilities in the malls.
The interviewer then administers a questionnaire as in the in-home personal survey. The
advantage of mall intercept interviews is that it is more efficient for the respondent to
come to the interviewer than for the interviewer to go to the respondent. In computer-
assisted personal interviewing (CAPI), the respondent sits in front of a computer terminal
and answers a questionnaire on the computer screen by using the keyboard or a mouse.
Help screens and courteous error messages are also provided. The colorful screens and
on- and off-screen stimuli add to the respondent's interest and involvement in the task.
Diff: 2 Page Ref: 182-184

35
LO : 1

78) Discuss the traditional mail interview method and the typical mail interview package.
Answer: In the traditional mail interview, questionnaires are mailed to pre-selected
potential respondents. A typical mail interview package consists of the outgoing
envelope, cover letter, questionnaire, return envelope, and possibly an incentive. The
respondents complete and return the questionnaires. There is no verbal interaction
between the researcher and the respondent. However, before data collection can begin,
the respondents need to be at least broadly identified. Therefore, an initial task is to
obtain a valid mailing list. Mailing lists can be compiled from telephone directories,
customer rosters, or association membership rolls or purchased from publication
subscription lists or commercial mailing list companies. Regardless of its source, a
mailing list should be current and closely related to the population of interest. The
researcher must also make decisions about the various elements of the mail interview
package (see Table 6.1 in the text).
Diff: 2 Page Ref: 185
LO : 1

36
79) Briefly discuss mechanical observation. What is it and why is it used? Describe two
devices used for mechanical observation that do not require the respondent's direct
participation.
Answer: In mechanical observation, mechanical devices, rather than human observers,
record the phenomenon being observed. These devices may or may not require the
respondents' direct participation. They are used for continuously recording ongoing
behavior for later analysis. Of the mechanical devices that do not require respondents'
direct participation, the ACNielsen audimeter is best known. The audimeter is attached to
a television set to continually record what channel the set is tuned to. Recently, people
meters have been introduced. People meters attempt to measure not only the channels to
which a set is tuned but also who is watching. Other common examples include turnstiles
that record the number of people entering or leaving a building, and traffic counters
placed across streets to determine the number of vehicles passing certain locations. On-
site cameras (still, motion picture, or video) are increasingly used by retailers to assess
package designs, counter space, floor displays, and traffic flow patterns. Technological
advances such as the Universal Product Code (UPC) have made a major impact on
mechanical observation. The UPC system, together with optical scanners, allows for
mechanized information collection regarding consumer purchases by product category,
brand, store type, price, and quantity.
Diff: 3 Page Ref: 199-201
AACSB: Reflective Thinking
LO : 3

80) Discuss how the researcher would code and analyze data obtained from a content
analysis.
Answer: Content analysis can involve tedious coding and analysis. However,
microcomputers and mainframes can be used to facilitate coding and analysis. The
manifest content of the object can be computer coded. Analytical categories for
classifying the units of analysis are developed and the communication is broken down
according to prescribed rules. The observed frequencies of category codes can be
aggregated and compared on the criteria of interest using computers. While content
analysis has not been widely used in marketing research, the technique offers great
potential.
Diff: 2 Page Ref: 201-202
AACSB: Reflective Thinking
LO : 3

37
81) What are the issues surrounding selecting the appropriate survey method for an
international marketing research project (Table 6.6 in the text)?
Answer: No questionnaire administration method is superior in all situations. The use of
CATI, CAPI, and mail panels depends heavily on the state of technological development
in the country. Likewise, the use of mall intercept interviewing is contingent upon the
dominance of shopping malls in the retailing environment. The same is true for e-mail
and Internet surveys, which rely on access to computers and the Internet. The major
methods of interviewing should be carefully evaluated on the criteria given in Table 6.6
in the text. In collecting data from different countries, it is desirable to use survey
methods with equivalent levels of reliability, rather than the same method. As in the case
of surveys, the selection of an appropriate observation method in international marketing
research should also take into account the differences in the economic, structural,
informational and technological, and socio-cultural environment. Table 6.6 in the text
presents a comparative evaluation of the major modes of collecting quantitative data in
the context of international marketing research.
Diff: 3 Page Ref: 206-209
AACSB: Multicultural and Diversity
LO : 6

82) What are the researcher's responsibilities with regards to anonymity in survey and
observation research?
Answer: An ethical issue that is salient in survey and observation research is
respondents' anonymity. Researchers have an obligation to not disclose respondents'
names to outside parties, including the client. This is all the more critical if the
respondents were promised anonymity in order to obtain their participation. The client is
not entitled to the names of respondents. Only when respondents are notified in advance
and their consent is obtained prior to administering the survey can their names be
disclosed to the client. Even in such situations, the researcher should have the assurance
that the client will not use respondents' names in sales efforts or misuse them in other
ways.

Often the behavior of people is observed without their knowledge because informing the
respondents may alter their behavior. However, this can violate the respondents' privacy.
One guideline is that people should not be observed for research in situations where they
would not expect to be observed by the public. However, observing people in public
places like a mall or a grocery store is appropriate if certain procedures are followed.
Notices should be posted in these areas stating that they are under observation for
marketing research purposes. After the data have been collected, the researcher should
obtain the necessary permission from the respondents. If any of the respondents refuse to
grant permission, the observation records pertaining to them should be destroyed. These
guidelines should also be applied when using cookies on the Internet.
Diff: 2 Page Ref: 209-210

38
Chapter 8: Primary Data Collection: Observation

Essay Questions
42. A manufacturer of a new product is conducting a test market. Two of the test
market objectives were trying to estimate total market sales and examining the
consumers in-store decision process. How would you collect data to support
those two objectives?

Ans: To accomplish the market sales estimate, the marketer would need to monitor
sales in the test market, and extrapolate the purchase rate to the population of the
total market. To examine the in-store decision process, the researcher could
utilize a video camera positioned directly above the area in which the test product
is placed. Then the recorded behavior could be reviewed to assess the consumers
in-store decision process.
Difficulty: Medium
Response: See page 214-217
Ref: Nature of Observation Research
Learning Objective 8.2: To learn the approaches to observation research.

43. Compare several of the key advantages and disadvantages of observation and
survey research.

Ans: Observation research does away with interviewer bias, the willingness and ability
of the consumer to provide information, and the respondents tendency to provide
false information. It allows the researcher to directly record the events of interest.
However, unlike survey research, respondent intentions, motives and plans cannot
be observed. Only survey research can provide those answers.
Difficulty: Medium
Response: See page 214-217
Ref: Nature of Observation Research
Learning Objective 8.2: To learn the approaches to observation research.

44. What is Ethnographic research and list at least 5 advantages of it in marketing


research?

Ans: Ethnographic research deals with observing people and collecting information
about their behavior in the natural settings in which they work and live. Page 218
lists a number of advantages of ethnographic research.
Difficulty: Easy
Response: See pages 217-218

39
Ref: Human Observation
Learning Objective 8.4: To explore the types of human observation.

45. Describe the mystery shopper and how they are used by marketing researchers.

Ans: Mystery shoppers pose as consumers and shop at the companys own stores or
competitor stores to collect data about customer-employee interactions and gather
observational data. These shoppers can gather data that is of value to marketers,
including comparing prices, evaluating employee-customer interactions,
discussing aspects of the product offering and store conditions, and discussing
products.
Difficulty: Medium
Response: 222-225
Ref: Human Observation
Learning Objective 8.4: To explore the types of human observation.

46. How is online tracking a type of observation research? How can it be of value to
the marketing researcher?

Ans: $25 billion dollars is spent each year for advertising on the Internet. Online
tracking through the use of cookies allows marketers to follow the search
patterns persons online as they surf from ad to ad looking for a particular product
or service. Hence, via tracking, market researchers know which online ads are
being hit-on the most, thereby indicating greater exposure of the
product/service in question via the ad.
Difficulty: Medium
Response: See pages 233-235
Ref: Observation Research on the Internet
Learning Objective 8.7: To learn about observation research on the Internet

81) Discuss measurement and scaling. What are they and how are they related?
Answer: Measurement means assigning numbers or other symbols to characteristics of
objects according to certain prespecified rules. What is measured is not the object, but
some characteristic of it. Thus, we do not measure consumers - only their perceptions,
attitudes, preferences, or other relevant characteristics. In marketing research, numbers
are usually assigned for one of two reasons. First, numbers permit statistical analysis of
the resulting data. Second, numbers facilitate the communication of measurement rules
and results.

The most important aspect of measurement is the specification of rules for assigning
numbers to the characteristics. There must be one-to-one correspondence between the
numbers and the characteristics being measured. The rules for assigning numbers should
be standardized and applied uniformly. They must not change over objects or time.

40
Scaling may be considered an extension of measurement. Scaling involves creating a
continuum upon which measured objects are located. Consider a scale from 1 to 100 for
locating consumers according to the characteristic "attitude toward department stores."
Each respondent is assigned a number from 1 to 100 indicating the degree of
(un)favorableness, with 1 = extremely unfavorable, and 100 = extremely favorable.
Measurement is the actual assignment of a number from 1 to 100 to each respondent.
Scaling is the process of placing the respondents on a continuum with respect to their
attitude toward department stores.
Diff: 2 Page Ref: 250
LO : 1

41
82) Discuss the primary scales of measurement (Table 8.1 in the text). Develop an
example of each.
Answer: A nominal scale is one whose numbers serve only as labels or tags for
identifying and classifying objects with a strict one-to-one correspondence between the
numbers and the objects. For example, the numbers assigned to the respondents in a
study constitute a nominal scale.

An ordinal scale is a ranking scale in which numbers are assigned to objects to indicate
the relative extent to which the objects possess some characteristic. An ordinal scale
allows you to determine whether an object has more or less of a characteristic than some
other object, but not how much more or less. Thus an ordinal scale indicates relative
position, not the magnitude of the differences between the objects. Common examples of
ordinal scales include quality rankings, rankings of teams in a tournament,
socioeconomic class, and occupational status.

In an interval scale, numerically equal distances on the scale represent equal values in the
characteristic being measured. An interval scale contains all the information of an ordinal
scale, but it also allows you to compare the differences between objects. A common
example in everyday life is a temperature scale. In marketing research, attitudinal data
obtained from rating scales are often treated as interval data.

A ratio scale possesses all the properties of the nominal, ordinal, and interval scales and,
in addition, an absolute zero point. Thus, in ratio scales we can identify or classify
objects, rank the objects, and compare intervals or differences. Common examples of
ratio scales include height, weight, age, and money. In marketing, sales, costs, market
share, and number of customers are variables measured on a ratio scale.
Diff: 2 Page Ref: 252-256
LO : 3

83) Compare the rank order scaling technique to the paired comparison scaling technique.
Answer: After paired comparisons, the most popular comparative scaling technique is
rank order scaling. In rank order scaling, respondents are presented with several objects
simultaneously and asked to order or rank them according to some criterion. In paired
comparison scaling, a respondent is presented with two objects and asked to select one
according to some criterion. Like paired comparison, rank order scaling is also
comparative in nature and it is possible that the respondent may dislike the brand ranked
1 in an absolute sense. As compared to paired comparisons, the rank order scaling
process more closely resembles the shopping environment. It also takes less time and
eliminates intransitive responses. If there are n stimulus objects, only (n - 1) scaling
decisions need be made in rank order scaling. However, in paired comparison scaling
[n(n - 1)/2] decisions would be required. Another advantage is that most respondents
easily understand the instructions for ranking. The major disadvantage is that this
technique produces only ordinal data. Finally, under the assumption of transitivity, rank
order data can be converted to equivalent paired comparison data, and vice versa.
Diff: 3 Page Ref: 257-260
LO : 4

42
43
84) Why is there confusion over whether constant sum data are ordinal or metric?
Answer: The constant sum has an absolute zero 10 points are twice as many as 5
points, and the difference between 5 and 2 points is the same as the difference between 57
and 54 points. For this reason, constant sum scale data are sometimes treated as metric.
Although this may be appropriate in the limited context of the stimuli scaled, these results
are not generalizable to other stimuli not included in the study. Hence, strictly speaking,
the constant sum should be considered an ordinal scale because of its comparative nature
and the resulting lack of generalizability.
Diff: 2 Page Ref: 260-261

44
Chapter 9: Primary Data Collection: Experimentation and
Test Markets

Essay Questions

50. Under what conditions can the results of a test market be used to forecast sales for
a region?

Ans: Test market results can be used to forecast sales for larger areas, such as a region,
when the characteristics associated with the behavior of interest are similar in
both the test market and the region.

Difficulty: Medium
Response: See pages 258-269
Ref: Test Markets
Learning Objective 9.7: To gain insight into test marketing.

51. Your client is interested in determining which of two Internet banner ads is more
effective. Design a field experiment. Be sure to identify the independent and
dependent variables.

Ans: The independent variable is whether the respondent sees ad A or ad B. The


dependent variable would possibly be the click through rate of each ad. Students
should mention that these ads should be shown randomly to subjects, and
whichever ad had a higher click through would be deemed most effective.

Difficulty: Medium
Response: See pages 243, 246
Ref: What is an Experiment?
Learning Objective 9.1: To understand the nature of experiments.

52. How would you respond to the following statement: Advertising and sales are
almost perfectly correlated, as when more is spent on advertising, sales go up, and
vice-versa. Surely our advertising expenditures are causing sales to rise.

Ans: Even though advertising and sales exhibit con-commitment variation, correlation
is only one of three conditions necessary for causation. The other two are
appropriate time order of occurrence and elimination of other possible causal
factors.

45
Difficulty: Medium
Response: See pages 243-244
Ref: Demonstrating Causation
Learning Objective 9.1: To understand the nature of experiments.

53. Marketing Research firms often have exclusive rights to doing interviews in
shopping malls they have contracts with. They also often maintain facilities
within the mall. Such firms might set up an artificial store within the mall to test
advertising or sales promotion associated with such a store. Discuss the type of
experiment being conducted if the marketing research firm offers an incentive to
persons in the mall, such as those participating in mall intercept interviews, who
would be observed as they interact with the promotional materials in artificial
store.

Ans: The marketing research firm is setting up a laboratory experiment in the shopping
mall, with the goal of isolating the effect of various promotional strategies on
certain products. The goal is to control the environment so that the effect of the
marketing efforts being invoked within the artificial store can be isolated and
measured.
Difficulty: Medium
Response: See page 245
Ref: Experimental Setting
Learning Objective 9.3: To learn about the experimental setting.

54. Test marketing sounds like a natural step in the progression of a product through
the product development process. However, there are some risks associated with
conducting test markets. Hence, what are the 4 factors that should be taken into
account in determining whether or not to conduct a test market?

Ans: The factors that must be taken into account in determining whether or not to
conduct a test market are outlined on page 262, and include the costs of the test
market, especially in the event of a failure; informing your competitors of your
new offering, and giving them time to respond before your national rollout; the
investment required for a test market relative to the investment required for a full
scale rollout; and the damage to the firms reputation and product line in the event
of a failed test market.
Difficulty: Medium
Response: See page 262
Ref: Decision to Conduct Test Marketing

46
Chapter 9: Primary Data Collection: Experimentation and
Test Markets

Essay Questions

50. Under what conditions can the results of a test market be used to forecast sales for
a region?

Ans: Test market results can be used to forecast sales for larger areas, such as a region,
when the characteristics associated with the behavior of interest are similar in
both the test market and the region.

Difficulty: Medium
Response: See pages 258-269
Ref: Test Markets
Learning Objective 9.7: To gain insight into test marketing.

51. Your client is interested in determining which of two Internet banner ads is more
effective. Design a field experiment. Be sure to identify the independent and
dependent variables.

Ans: The independent variable is whether the respondent sees ad A or ad B. The


dependent variable would possibly be the click through rate of each ad. Students
should mention that these ads should be shown randomly to subjects, and
whichever ad had a higher click through would be deemed most effective.

Difficulty: Medium
Response: See pages 243, 246
Ref: What is an Experiment?
Learning Objective 9.1: To understand the nature of experiments.

52. How would you respond to the following statement: Advertising and sales are
almost perfectly correlated, as when more is spent on advertising, sales go up, and
vice-versa. Surely our advertising expenditures are causing sales to rise.

Ans: Even though advertising and sales exhibit con-commitment variation, correlation
is only one of three conditions necessary for causation. The other two are
appropriate time order of occurrence and elimination of other possible causal
factors.

47
Difficulty: Medium
Response: See pages 243-244
Ref: Demonstrating Causation
Learning Objective 9.1: To understand the nature of experiments.

53. Marketing Research firms often have exclusive rights to doing interviews in
shopping malls they have contracts with. They also often maintain facilities
within the mall. Such firms might set up an artificial store within the mall to test
advertising or sales promotion associated with such a store. Discuss the type of
experiment being conducted if the marketing research firm offers an incentive to
persons in the mall, such as those participating in mall intercept interviews, who
would be observed as they interact with the promotional materials in artificial
store.

Ans: The marketing research firm is setting up a laboratory experiment in the shopping
mall, with the goal of isolating the effect of various promotional strategies on
certain products. The goal is to control the environment so that the effect of the
marketing efforts being invoked within the artificial store can be isolated and
measured.
Difficulty: Medium
Response: See page 245
Ref: Experimental Setting
Learning Objective 9.3: To learn about the experimental setting.

54. Test marketing sounds like a natural step in the progression of a product through
the product development process. However, there are some risks associated with
conducting test markets. Hence, what are the 4 factors that should be taken into
account in determining whether or not to conduct a test market?

Ans: The factors that must be taken into account in determining whether or not to
conduct a test market are outlined on page 262, and include the costs of the test
market, especially in the event of a failure; informing your competitors of your
new offering, and giving them time to respond before your national rollout; the
investment required for a test market relative to the investment required for a full
scale rollout; and the damage to the firms reputation and product line in the event
of a failed test market.
Difficulty: Medium
Response: See page 262
Ref: Decision to Conduct Test Marketing
Learning Objective 9.7: To gain insight into test marketing.

107) Explain how continuous rating scales can be easily implemented on the Internet.
Answer: Continuous rating scales can be easily implemented on the Internet. The cursor

48
can be moved on the screen in a continuous fashion to select the exact position on the
scale that best describes the respondent's evaluation. Moreover, the scale values can be
automatically scored by the computer, thus increasing the speed and accuracy of
processing the data.
Diff: 2 Page Ref: 274-275
AACSB: Use of IT
LO : 6

108) What are the advantages and disadvantages of the Likert scale?
Answer: The advantages of the Likert scale are as follows:
1. Respondents readily understand how to use the scale.
2. It is suitable for mail, telephone, or personal interviews.
3. It is easy to construct and administer.

The major disadvantage of the Likert scale is that it takes longer to complete than other
itemized rating scales because respondents have to read each statement.
Diff: 3 Page Ref: 276-277
AACSB: Reflective Thinking
LO : 1

109) What six major decisions must the researcher make when constructing non-
comparative itemized rating scales?
Answer:
1. the number of scale categories to use
2. balanced versus unbalanced scales
3. odd or even number of categories
4. forced versus non-forced choice
5. the nature and degree of the verbal description
6. the physical form of the scale
Diff: 2 Page Ref: 280
LO : 2

110) Figure 9.4 in the text showed the development of a multi-item scale. Discuss the
development process.
Answer: Data are collected on the reduced set of potential scale items from a large
pretest sample of respondents. The data are analyzed using techniques such as
correlations, factor analysis, cluster analysis, discriminant analysis, and statistical tests.
As a result of these statistical analyses, several more items are eliminated, resulting in a
purified scale. The purified scale is evaluated for reliability and validity by collecting
more data from a different sample. On the basis of these assessments, a final set of scale
items is selected. As can be seen from Figure 9.4 in the text, the scale development
process is an iterative one with several feedback loops.
Diff: 3 Page Ref: 284
LO : 2

111) Discuss coefficient alpha and how its value might be inflated.
Answer: The coefficient alpha, or Cronbach's alpha, is the average of all possible split-

49
half coefficients resulting from different ways of splitting the scale items. This coefficient
varies from 0 to 1, and a value of 0.6 or less generally indicates unsatisfactory internal
consistency reliability. An important property of coefficient alpha is that its value tends to
increase with an increase in the number of scale items. Therefore, coefficient alpha may
be artificially, and inappropriately, inflated by including several redundant scale items.
Diff: 2 Page Ref: 287-288
AACSB: Reflective Thinking
LO : 3

112) What is the appropriate way to assess the internal consistency of a multi-item scale
with sets of items designed to measure different aspects of a multi-dimensional construct?
Answer: Some multi-item scales include several sets of items designed to measure
different aspects of a multidimensional construct. For example, store image is a
multidimensional construct that includes quality of merchandise, variety and assortment
of merchandise, layout of the store, and credit and billing policies. Hence, a scale
designed to measure store image would contain items measuring each of these
dimensions. Because these dimensions are somewhat independent, a measure of internal
consistency computed across dimensions would be inappropriate. However, if several
items are used to measure each dimension, internal consistency reliability can be
computed for each dimension.
Diff: 2 Page Ref: 287-288
AACSB: Reflective Thinking
LO : 3

113) Discuss construct validity and the types of construct validity.


Answer: Construct validity addresses the question of what construct or characteristic the
scale is, in fact, measuring. When assessing construct validity, the researcher attempts to
answer theoretical questions about why the scale works and what deductions can be made
concerning the underlying theory. Thus, construct validity requires a sound theory of the
nature of the construct being measured and how it relates to other constructs. Construct
validity is the most sophisticated and difficult type of validity to establish. As Figure 9.5
in the text shows, construct validity includes convergent, discriminant, and nomological
validity.

Convergent validity is the extent to which the scale correlates positively with other
measures of the same construct. It is not necessary that all these measures be obtained by
using conventional scaling techniques. Discriminant validity is the extent to which a
measure does not correlate with other constructs from which it is supposed to differ. It
involves demonstrating a lack of correlation among differing constructs. Nomological
validity is the extent to which the scale correlates in theoretically predicted ways with
measures of different but related constructs. A theoretical model is formulated that leads
to further deductions, tests, and inferences. Gradually, a nomological net is built in which
several constructs are systematically interrelated.
Diff: 3 Page Ref: 288-289
AACSB: Reflective Thinking
LO : 3

50
114) What differentiates mathematically derived scales from the other non-comparative
scaling techniques?
Answer: All the scaling techniques discussed in the chapter required the respondents to
evaluate directly various characteristics of the stimulus objects. In contrast, mathematical
scaling techniques allow researchers to infer respondents' evaluations of characteristics of
stimulus objects. These evaluations are inferred from the respondents' overall judgments
of the objects.
Diff: 2 Page Ref: 290
AACSB: Reflective Thinking
LO : 4

115) What are some of the ethical responsibilities of researchers when they are
developing scales?
Answer: The researcher has the ethical responsibility to use scales that have reasonable
reliability, validity, and generalizability. The findings generated by scales that are
unreliable, invalid, or not generalizable to the target population are questionable at best
and raise serious ethical issues. Moreover, the researcher should not bias the scales so as
to slant the findings in any particular direction.

51
Chapter 10: The Concept of Measurement

Essay Questions
45. Revise the following assessment of customer satisfaction for Jim Dandys
Hamburger Joint so that content validity is achieved.

Please indicate your satisfaction with Jim Dandys Hamburger Joint using a scale
of 1=very satisfied, 2=somewhat satisfied, and 3=not satisfied.

____a. location of the restaurant


____b. cleanliness of restrooms
____c. friendliness of staff
____d. speed of service
____e. restaurant cleanliness
____f. availability of condiments
____g. efficiency of drive-up window
____h. hours of operation

Ans: All of the attributes above are important to the assessment


of satisfaction at Jim Dandys. However, there is one
serious violation of content validity: there is no assessment
of food quality.
Difficulty: Medium
Response: See page 283-295
Ref: Step Six: Evaluate the Reliability and Validity of the Measurement
Learning Objective 10.4: To explore the concepts of reliability and validity.

46. Revise the following questions so as to achieve interval scale data.


(1) How satisfied are you with your present car?
1=very satisfied 2=somewhat satisfied 3=not satisfied

Ans: Even though this is the chapter before the chapter involving attitude scales, the
student should understand that in order for a scale to achieve interval scale
measurement it either needs to be balanced or bipolar adjectives have to be
equally opposite. A balanced scale is one in which the response labels above
each scale point are verbally consistent and equal in number of responses as
below:

Very Bad/Somewhat Bad/Neutral/Somewhat Good/Very Good

The neutral point is not necessary for a balanced scale in the example above.
Having bipolar adjectives that are equally opposite can be illustrated below:

Bad ____ ____ ____ ____ ____ Good

52
Black ____ ____ ____ ____ ____ White
Convenient ____ ____ ____ ____ ____ Inconvenient

The number of scale points should be between 3 and 9. Given a scale that is
balanced or one with equally opposite bipolar adjectives, the resulting data will be
interval scale.
Difficulty: Medium
Response: See pages 282-284
Ref: Step Five: Develop a Measurement Scale
Learning Objective 10.3: To understand the four levels of scales and their typical
usage.

47. Ratio and Interval scale data can both produce data in which arithmetic means and
metric measures of dispersion can be computed. However, there are several
important differences in these two levels of measurement. What are they?

Ans: The two main differences in ratio and interval scale data are: 1) 0 for a ratio
measurement is an absolute zero, such as the number of motorcycles owned by
nuns; but the 0 point on an interval scale is not absolute but arbitrary, and
indicates merely a number for a scale point. 2) Given the absolute 0
requirement for ratio measurement, ratios can be computed for the resulting data,
such as if Jim spends 20% of his time studying and Bob only 10% then we can
say Jim spends twice as much time studying as Bob. However, ratios cannot be
computed for response points on interval scales because there is no absolute zero
point.
Difficulty: Hard
Response: See pages 282-284
Ref: Step Five: Develop a Measurement Scale
Learning Objective 10.3: To understand the four levels of scales and their typical
usage.

48. Define Validity. Then provide an example of Face Validity and an example of a
question that has a Face Validity problem. Then illustrate a portion of a
questionnaire with a Content Validity problem.

Ans: Validity is the degree to which what the researcher is trying to measure is actually
measured, such as the extent to which a question or series of questions in a
questionnaire actually measure a concept. Face Validity is the degree to which a
measure seems to measure what it is supposed to measure. An example would be
as follows:
A question asking college students to respond to an age category question when
the target market is defined as traditional college age students.
Question: Please indicate your age by marketing the appropriate blank below:

53
_____0-18 _____19-34 _____35-54 ____55 and over

The categories above would not be appropriate for traditional college ages
students and therefore would not adequately measure a population consisting of
college students. A better scale would be as follows:

_____0-18 _____19-21 _____22-25 ____26 and over

Content validity has to do with how well the content of the questions represents
the concept being measured. An example would be for a restaurant customer
satisfaction study: Please indicate your level of satisfaction with XYZ restaurant
for each of the following using the following scale:

Very Somewhat Somewhat Very


Dissatisfied Dissatisfied Satisfied Satisfied
_____ _____ _____ _____
1 2 3 4

Location ____ Cleanliness____ Parking____ Service____

The above 4 attributes are certainly important, but do not adequately measure the
concept of satisfaction for a restaurant, thereby not achieving content validity for
satisfaction construct. One obvious omission in the above list is food quality.
Price would be another important omitted variable.

Difficulty: Hard
Response: See pages 289-290
Ref: Step Six: Evaluate the Reliability and Validity of the Measurement

112) If a researcher were trying to overcome the unwillingness of respondents to answer


by considering the effort required of the respondents, what might he/she do to make the
respondent more willing to respond? Develop an example question (showing the
incorrect and correct way to best overcome the respondents unwillingness to answer) to
clarify your response.
Answer: The researcher should minimize the effort required by providing lists of options
for respondents to check off instead of asking respondents to provide their own list. (The
student should provide his/her own supporting example like the department store
example given in Chapter 10.)
Diff: 2 Page Ref: 309-311
AACSB: Analytic Skills
LO : 2

54
113) Discuss at least three things that the researcher who is developing a questionnaire
can do to increase the willingness of the respondent to answer.
Answer: Using the following techniques may encourage respondents to provide
information that they are unwilling to give:
Place sensitive topics at the end of the questionnaire. By then, initial mistrust has been
overcome, rapport has been created, legitimacy of the project has been established, and
respondents are more willing to give information.
Preface the question with a statement that the behavior of interest is common. For
example, before requesting information on credit card debt, say, "Recent studies show
that most Americans are in debt." This technique is called the use of counter-biasing
statements.
Ask the question using the third-person technique; phrase the question as if it referred
to other people.
Hide the question in a group of other questions that respondents are willing to answer.
The entire list of questions can then be asked quickly.
Provide response categories rather than asking for specific figures. Do not ask, "What is
your household's annual income?" Instead, ask the respondent to check the appropriate
income category: under $25,000, $25,001-$50,000, $50,001-$75,000, or over $75,000. In
personal interviews, give the respondents cards that list the numbered choices. The
respondents then indicate their responses by number.
Use randomized techniques. In these techniques, respondents are presented with two
questions, one sensitive and the other a neutral question with a known probability of a
"yes" response (e.g., "Is your birthday in March?") They are asked to select one question
randomly, for example by flipping a coin. The respondent then answers the selected
question "yes" or "no," without telling the researcher which question is being answered.
Given the overall probability of a "yes" response, the probability of selecting the sensitive
question, and the probability of a "yes" response to the neutral question, the researcher
can determine the probability of a "yes" response to the sensitive question using the law
of probability. However, the researcher cannot determine which respondents have
answered "yes" to the sensitive question.
Diff: 3 Page Ref: 309-311
AACSB: Analytic Skills
LO : 2

55
114) What techniques can the researcher use when trying to overcome a respondent's
inability to answer?
Answer:
To determine if respondents are informed, filter questions should be used to measure
familiarity, product use, and past experience. The filter questions should be asked before
questions about the topics themselves. A "don't know" option reduces uninformed
responses without reducing overall response rate for questions. Hence, this option should
be provided when the researcher expects that respondents may not be adequately
informed about the subject of the question.
To help the respondent remember, researchers should provide respondents with aids
such as pictures, maps, and descriptions to help them articulate their responses.
To help the respondent articulate responses, the researcher should provide the
respondent various alternative descriptions of the area of interest so that the respondent
could pick out the one they like best.
Diff: 3 Page Ref: 307-309
AACSB: Analytic Skills
LO : 2

115) What criteria should the researcher use when deciding whether to use a neutral
alternative with dichotomous questions?
Answer: If a neutral alternative is not included, respondents are forced to choose
between "yes" and "no" even if they feel indifferent. On the other hand, if a neutral
alternative is included, respondents can avoid taking a position on the issue, thereby
biasing the results. The following guidelines are offered: If a substantial proportion of the
respondents can be expected to be neutral, include a neutral alternative. If the proportion
of neutral respondents is expected to be small, avoid the neutral alternative.
Diff: 3 Page Ref: 312-313
AACSB: Reflective Thinking
LO : 2

116) What are the guidelines for the placement of branching questions?
Answer: Placement of branching questions is important and the following guidelines
should be followed: (1) the question being branched (the one to which the respondent is
being directed) should be placed as close as possible to the question causing the
branching, and (2) the branching questions should be ordered so that the respondents
cannot anticipate what additional information will be required. Otherwise, the
respondents may discover that they can avoid detailed questions by giving certain
answers to branching questions.
Diff: 2 Page Ref: 319
LO : 2

56
117) Pretesting refers to the testing of the questionnaire on a small sample of respondents
to identify and eliminate potential problems. Discuss what the researcher expects to gain
from pretesting the questionnaire.
Answer: All aspects of the questionnaire should be tested. Subsequent pretests done
after changes are made from an initial pretest should reveal problems peculiar to the
interviewing method. The project director, the researcher who developed the
questionnaire, and other key members of the research team should conduct some pretest
interviews to gain a feel for potential problems and the nature of expected data.
Experienced interviewers can easily perceive uneasiness, confusion, and resistance in the
respondents. New interviewers can help the researcher identify interviewer-related
problems. Analysis of pretest responses can serve as a check on the adequacy of the
problem definition and the data and the analysis required to obtain the necessary
information. Analysis of pretest data helps to ensure that all data collected will be utilized
and that the questionnaire will obtain all the necessary data.
Diff: 3 Page Ref: 322
AACSB: Reflective Thinking
LO : 2

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