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CHAPTER SIXE-MARKETING RESEARCHMultiple Choice1. Knowledge management is the process of managing _.a. the creation, use, and dissemination of knowledgeb. databasesc. data warehousesd. learning(a; Easy; p. 121; Analytic Skills)2. A complete marketing knowledge database includes all the data about _.a. customersb. prospects c. competitorsd. all of the above(d; Easy; p. 121; Use of Information Technology)3. Which of the following is not a part of the marketing information system (MIS)?a. assessing information needsb. gathering informationc. manipulating information to align with the companys visiond. disseminating information to marketing decision makers(c; Moderate; p. 121-22; Use of Information Technology)4. Internal records _.a. focus entirely on customer characteristics and behaviorb. are not readily available to marketersc. can help marketers improve order-to-deliver and payment cyclesd. are of little importance to marketers(c; Difficult; p. 123; LO1; Analytic Skills)5. Secondary data is _.a. less important than primary datab. is always publicly generated and availablec. is more difficult to gather than primary datad. can be collected more quickly and less expensively than primary data(d; Easy; p. 125; LO1; Analytic Skills) 6. Primary data _.a. is gathered for the first time to solve a specific problemb. can be collected online using focus groups, observation, interviews, and survey researchc. is more expensive and time consuming than secondary data collectiond. all of the above(d; Moderate; p. 130; LO1; Analytic Skills)7. All of the following are reasons that the internet is fertile ground for primary data collection except _.a. internet research can only collect information from people who use the internet, leaving out a huge part of the populationb. the cooperation of consumers using traditional research approaches is decliningc. the internet is a quick and inexpensive method of collecting datad. the internet allows for the sampling of consumers from diverse geographic areas(a; Difficult; p. 131; LO3; Analytic Skills)8. Which of the following is not a disadvantage of online focus groups as compared to traditional focus groups?a. online focus groups can accommodate only 4 to 8 participantsb. nonverbal communication is lostc. there is a problem of authenticityd. participants are more influenced by what others think (d; Moderate; p. 133-34; LO3; Analytic Skills)9. Response rates for e-mail surveys are _ response rates for traditional surveys.a. greater thanb. equal to or greaterc. less thand. nearly double(b; Moderate; p. 135; LO3; Use of Information Technology)10. What are the biggest concerns for market researchers today?a. sample representativeness and measurement validityb. the rising cost of online surveysc. response time of those who complete questionnaires online d. data entry errors(a; Difficult; p. 137; LO2)11. Which of the following is not of ethical concern regarding survey research on the internet?a. respondents are increasingly concerned with getting unsolicited e-mailb. some researchers harvest e-mail addresses from newsgroups without permissionc. opt-in communities, or online panels, usually cost the client firms more than traditional methodsd. user data is relatively easy and profitable to sell, although most customers prefer that it be kept private(c; Difficult; p. 139-40; LO3; Ethical Understanding and Reasoning Abilities)12. Client-side data collection involves _.a. collecting data at a Web site in order to observe how consumers navigate through that Web siteb. collecting information about consumer surfing from the users PCc. using bar code scanners and credit card readers at offline points of purchased. all of the above(b; Moderate; p. 144; LO5; Use of Information Technology)13. Data warehouses are repositories for _.a. marketing datab. current customer datac. accounting datad. the entire organizations database (d; Moderate; p. 146; LO6; Use of Information Technology)14. Data mining allows marketers to uncover patterns that help them _.a. refine marketing mix strategiesb. identify new product opportunitiesc. predict consumer behaviord. all of the above(d; Easy; p. 147; LO6; Use of Information Technology) 15. Customer profiling can aid in all of the following except _.a. increasing direct mailing costs by targeting high-response customersb. selecting target groups for promotional appealsc. understanding the important characteristics of heavy product usersd. directing cross-selling activities to appropriate customers(a; Difficult; p. 147; LO5; Analytic Skills)16. RFM analysis scans the database for all of the following criteria except _.a. recencyb. relevancyc. frequencyd. monetary value(b; Easy; p. 147-48; LO6; Analytic Skills)17. Data mining, customer profiling, and RFM can be performed by _.a. IT personnelb. individual marketing personnelc. data warehouse consultantsd. transaction processing databases(b; Moderate; p. 147; LO6; Use of Information Technology)18. Which two metrics are currently in widespread use for knowledge management?a. Return on Investment (ROI) and Total Cost of Ownership (TCO)b. Return on Investment (ROI) and Total Quality Management (TQM)c. Return on Assets (ROA) and Total Cost of Ownership (TCO)d. Return on Assets (ROA) and Total Quality Management (TQM )(a; Moderate; p. 149; LO6; Analytic Skills)19. The internet is a fertile ground for primary data collection because of _.a. clickstream data collectionb. EDIc. declining cooperation from consumers using traditional approaches d. increasing payments to research subjects (c; Moderate; p. 131; LO3; Use of Information Technology)20. Search engines are able to scour the Web for pertinent information on so many Web sites because they _.a. run on many high speed computersb. utilize automatic programs that go over each site up to a month in advance and store results in a huge database c. direct users only to Web sites that pay a subscription feed. all of the above (b; Moderate; p. 141; LO4; Use of Information Technology)True/False21. Information overload is a reality for consumers and marketers alike.a. Trueb. False (a; Easy; p. 119; Analytic Skills)22. Computers and the internet create knowledge, but people are the enablers of learning.a. Trueb. False(b; Difficult; p. 121; Analytic Skills)23. U.S. agencies collect more data than governments in other countries, but they do not disseminate as much.a. Trueb. False (b; Easy; p. 125; LO3; Use of Information Technology)24. The internet is a consistent source of high-quality, reliable information.a. Trueb. False(b; Difficult; p. 129; LO2; Use of Information Technology) 25. Experimental research attempts to test cause-and-effect relationships.a. Trueb. False (a; Easy; p. 133; LO3; Analytic Skills)26. In-depth interviews are better conducted in person than over the Web.a. Trueb. False (a; Difficult; p. 131; LO3; Analytic Skills)27. Marketers cannot draw a specific probability sample of internet users because a list of all users does not exist.a. Trueb. False (a; Moderate; p. 137; LO2; Analytic Skills)28. Marketers cannot apply information from data warehouses as well as data in product and consumer databases.a. Trueb. False (b; Difficult; p. 146; LO6; Use of Information Technology)29. Data mining involves the extraction of hidden predictive information in large databases through statistical analysis.a. Trueb. False (a; Easy; p. 147; LO6; Use of Information Technology)30. Marketing research is relatively inexpensive.a. Trueb. False (b; Easy; p. 148; LO3; Analytic Skills)31. It is mandatory that e-marketers know the techniques that search engines use to direct users to Web sites in order to create effective Web sites. a. Trueb. False(b; Moderate; p. 140-43; LO4; Use of Information Technology)32. In judging information quality on the Web, e-marketers should not be seduced by good design.a. Trueb. False (b; Moderate; p. 129; LO2; Analytic Skills)Essay Questions33. What are the most important inclusions in a marketing knowledge database? Data about customers Prospects Competitors Analyses and outputs based on the data Access to marketing experts(Moderate; p. 121; LO4; Use of Information Technology)34. Compare and contrast primary and secondary data. Secondary Dataa. Information not collected to solve a specific problemb. Collected more quicklyc. Less expensived. May not meet the meet the e-marketers needse. No control on quality of the informationf. Can be outdated Primary Dataa. Information collected to solve specific problemb. Time consumingc. More expensived. Directed to meet the e-marketers needse. Marketers controls the qualityf. Proprietaryg. Data is current (Moderate; pp. 125-39; LO1; Analytic Skills)35. What are the five steps in the collection of primary data? Research Problem Research Plan Data Collection Data Analysis Distribute Findings (Easy; p. 131; LO1) 36. What are the ethical concerns facing online marketing research and how do they affect data collection? Unsolicited e-mail requests, which can lead to negative responses. Harvesting of e-mail addresses without permission, can lead to negative response or low response rate. Conduct “surveys” for the purpose of building a database for later solicitation. Lead to lower response rates. Issue of privacy of data. Result of lower response rates. (Moderate; p. 139-40; Ethical Understanding and Reasoning Abilities)37. List and define the four types of analysis of data from a data warehouse that e-marketers can use. Data Mining extraction of information in databases to find patterns in the data to predict future behavior Cust
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