Ch.4: Marketing Research
The first step in the marketing research project is to define the problem and
Research is expensive and time consuming.
Data collection is the second step in the marketing research process? False (it
is the 3 step. The 2 step is Designing the Research Project)
Pieces of information already collected and are usually readily available are
Statistics Canada is a good example of a source of secondary data.
Secondary data are pieces of information that have been collected prior to
the start of the focal research project.
A marketing research project often begins with a review of the relevant
secondary data. True
Data available from commercial research firms are syndicated data.
Bureau of Broadcasting Measurement is a good example of a source of
Exploratory research gives you a chance to gather initial information when
your problem lacks definition.
A segment or subset of the population that you will research is called a target
group. False (it is called a sample)
In-depth interviews are an exploratory research technique.
An observational technique that studies people in their everyday lives is
Data are just the raw numbers or information.
The final stage in the marketing research process is presenting the results.
The text gives several examples of why it is important to adhere to ethical
practices when conducting research. Numerous codes of conduct written by various marketing research
associations all reinforce the duty of the researcher to respect the rights of
the subjects in the course of their research.
More and more, consumers want to know they have control over data
collected about them, the text tell us.
Data can be very sensitive, so researchers must be careful how they use it.
Ch.5: Consumer Behavior
The first stage of the consumer decision-making process is need recognition.
The second stage of the consumer decision-making process is information search.
The third stage of the consumer decision-making process is alternative evaluation.
Functional needs relate to the cost of a product or service. False (functional needs
pertain to the performance of a product or service)
Harley Davidson encourages the idea that its riders are rugged individualists.
What consists of a set of salient, or important, attributes about a particular
product. Evaluative criteri*
Soda and bread are generally considered convenience goods.
Negative word of mouth occurs when consumers spread negative information
about a product, service or store to others. True
Other than the 4Ps, how many factors do you think affect the consumer decision
process? 4 * (4Ps, Psychological; motives, attitudes, perceptions, learning,
lifestyle Social; family, reference groups, culture, Situational; purchase
situations, shopping situation, temporal state factors)
Needs relation to the basic biological necessities of life like food and drink are
called physiological needs.
Needs relating to one’s interactions with other are called social needs.
The process by which people select, organize and interpret to form a meaningful
picture is called perception. True When a consumer sees few perceived differences between alternative brands they
are not very involved in, the buying process they are said to undertake habitual
buying behavior. *
Some purchases require little or no cash,involvement, and effo*t.
The text describes two types of buying process/decisions. (high involvement/low
A common type of limited problem solving is impulse buying, a buying decision
made my customers on the spot when they see the merchandise. True
Ch.6: Business-to-Business Marketing
B2C stands for business to consumer.
B2B stands for business to business.
Which is NOT a type of B2B organization? end user (B2B organizations include
government, institutions, manufacturers and producers.)
Some B2B buyers are manufacturers and producers. true
Describe derived demand. It is the linkage between consumers' demand for a
company's output and its purchase of necessary inputs to manufacture or assemble
that particular output.
A major difference between the typical B2B and B2C transaction is the role of the
The distinction between B2C and B2B is NOT the product/services.(these can be
the same for both types of transaction.)
In B2B markets, the products ordered are primarily raw materials and semi
finished goods that are processed or assembled into finished goods for the
ultimate consumers. true
NAICS stands for "North American Industry Classification System." that have 6
NAICS replaces SIC (standard industrial classification). The 3rd stage in the B2B buying process is RFP process. (there are 6 B2B stages
RFP stands for request for proposals and is a common process through which
buying organizations invite alternative suppliers to bid on supplying their required
Vendor analysis is carried out in the B2B setting in a more formal and objective
way than B2C. (it is a buyer's responsibility to be able to show why they made
In Proposal Analysis and Supplier Selection, the buying organization, in
conjunction with its critical decision makers, evaluates all the proposals it
receives in response to its RFP. true
The group of people typically responsible for buying decisions in a large
organization is called the buying centre.
The person who controls information or access to decision makers and influencers
is called the gatekeeper.
The person who first suggested buying the particular product or service is called
A buying centre where all the members of the team have to reach a collective
agreement that they can support a particular purchase is called a democratic
buying center. false (it is called a consensus buying center)
More and more firms have begun to use the internet to help facilitate their B2B
buying and selling.
When goods and services are simply sold to the highest bidder, it's called an
A good way to lower your procurement costs is to use reverse auctions.
A private exchange is when a buyer/seller invites others to join them to participate
in online information exchanges and transactions. Ch.7: PT Segmentation, Targeting and Positioning
If a firm wanted to launch a new brand of bodywash into Canada and it identified
a group of bodywash users that would respond similarly to the firm's marketing
efforts, it would be called a segment.
When deciding on a segmentation strategy, what should a company do first? They
should clearly articulate the firm mission and objectives.
When consumers understand why a particular deodorant meets their needs better
than any of the competitors, the manufacturer of that deodorant can be said to
have carried the positioning of the product effectively.
If a company sells different products that are aimed at men or women, it must
consider the different appeal of television programs when planning its TV
advertising. By doing this, it is employing demographic segmentation.
If an organization shows attractive young people wearing their footwear products,
they are appealing to people's self-concept.
If a breakfast cereal manufacturer introduced a cereal that always had a /"money
off next purchase/" coupon printed on the box, they would be using loyalty
If a clothing retailer discovered there were more segments of people wanting to
buy their clothing, they could be said to be employing this dimension of
evaluating segment attractiveness. Identifiable
Even when a marketer has identified an attractive segment, they still need to make
sure it will be profitable.
A great advantage of internet based segmentation is that it can allow access to
very small segments efficiently and inexpensively.
For a segmentation strategy to be successful, the customers in the segment must
react similarly. true
A firm that sells customized shoes, especially designed to suit the unique
characteristics associated with each person's foot is using a micromarketing
strategy. The fact that some consumers prefer bodywash with deodorant, others with a
body lotion incorporated, others with a hint of aromathereapy oils, results in body
lotion manufacturers engaging in STP.
Different products for different groups of people - it's a strategy that can work, but
also cost a lot of money to come up with a marketing plan for each segment.
If you invented an aftershave balm for men with sensitive skin, who were
interested in using only natural products on their faces and were interested in
innovative packaging, you'd be using a concentrated segmentation strategy. true
(a concentrated segment strategy is when an organization selects a single, primary
target market and focuses all its energies on providing a product to fit that
Head-to-head positioning between competitors can lead to price wars.
Repositioning can be tough! Good marketers constantly re-evaluate their brands
to decide if it is necessary.
One of the biggest problems of rebranding is costs.
A perceptual map displays, in two or more dimensions, the position of products or
brands in the consumer's mind. true
Ch.8: Developing New Products
The process by which ideas are transformed into new products and services that
will help a firm grow is called innovation.
The portfolio of products that innovation can create helps the firm to diversify its
New product introductions that establish a completely new market are called
As many as 95% of all consumer goods fail. true
The process by which the use of an innovation spreads through the marketplace is
the diffusion of innovation.
Those buyers who want to be the first to have a new product or service are called
innovators. Those who like to avoid change and prefer to depend upon traditional products
until they are no longer available are called laggards.
Using the Consumer Adoption Cycle means that firms can predict which types of
customers will buy their products. true (The reason this cycle is so useful is that it
helps to be able to predict product uptake.)
The first step in the product development process is