Chapter 6—Secondary Data Research in a Digital Age

Chapter 6—Secondary Data Research in a Digital Age TRUE/FALSE 1. Secondary data are typically historical data that have already been collected. ANS: T PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective ...

Chapter 6—Secondary Data Research in a Digital Age TRUE/FALSE 1. Secondary data are typically historical data that have already been collected. ANS: T PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 2. Secondary data require current access to respondents who provided the data. ANS: F Secondary data are historical and already assembled, requiring no additional access to research respondents or subjects. PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 3. The primary advantage of secondary data is their availability. ANS: T PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 4. A disadvantage to secondary data is that they were not designed specifically to meet the objectives of the current project. ANS: T PTS: 1 DIF: Moderate REF: p. 129 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 5. It’s usually safe to assume that secondary information is relevant, useful, and reliable. ANS: F Researchers should take care not to assume that secondary information is relevant, useful, and reliable. PTS: 1 DIF: Moderate REF: p. 129 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 6. One disadvantage of secondary data is that it cannot be converted to conform to a researcher’s needs. ANS: F Data transformation is the process of changing the original form of data to a format more suitable for achieving a stated research objective. PTS: 1 DIF: Moderate REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 7. A researcher should always evaluate the professional reputation of the organization that has gathered secondary data in terms of evaluating the quality of the data.ANS: T PTS: 1 DIF: Moderate REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 8. A reliability analysis is done by comparing data from one source with data from another source. ANS: F This is a cross-check. PTS: 1 DIF: Moderate REF: p. 131 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 9. Fact-finding is the simplest form of secondary data research. ANS: T PTS: 1 DIF: Easy REF: p. 132 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 10. Market tracking is the observation and analysis of trends in industry volume and brand share over time. ANS: T PTS: 1 DIF: Moderate REF: p. 133 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 11. Model building involves specifying relationships between two or more variables, which is more complicated that simple fact-finding. ANS: T PTS: 1 DIF: Moderate REF: p. 134 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 12. Market potential is frequently estimated through the use of secondary data. ANS: T PTS: 1 DIF: Moderate REF: p. 134 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 13. Marketing researchers frequently use external accounting data to generate sales forecasts. ANS: F Marketing researchers frequently use internal accounting data to generate sales forecasts. PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 14. A moving average sales forecast works best in a dynamic competitive environment. ANS: F This technique is best suited to a static competitive environment. PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension15. The index of retail saturation is the ratio of local market potential (demand) to local population density. ANS: T The index of retail saturation is the ratio of local market potential (demand) to local market retailing space. PTS: 1 DIF: Moderate REF: p. 136 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 16. Data mining techniques can help to define the underlying meaning of data. ANS: T PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 17. Neural networks are a form of artificial intelligence in which a computer is programmed to mimic the way that human brains process information. ANS: T PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 18. Single-source analysis is a form of data mining that analyzes anonymous point-of-sale transactions databases to identify coinciding purchases or relationships between products purchased and other retail shopping information. ANS: F This is market-basket analysis. PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 19. Secondary data are always data that are external to the organization. ANS: F Internal sources of secondary data include sales information, call reports, customer complaints, and so on. PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 20. An enterprise search is like an Internet search but focuses on data within the organization. ANS: T PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 21. Secondary data can be bought and sold like other products. ANS: T PTS: 1 DIF: Moderate REF: p. 140 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 22. Trade associations gather data to help the organizations in a specific industry.ANS: T PTS: 1 DIF: Moderate REF: p. 144 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 23. Diary panel data are data gathered by households that have agreed to record their consumption behavior over an extended period of time. ANS: T PTS: 1 DIF: Moderate REF: p. 145 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 24. The marketing research industry uses the term multiple-source data for diverse types of data offered by a single company. ANS: F This is referred to as single-source data. PTS: 1 DIF: Moderate REF: p. 146 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 25. It is safe to assume that secondary data from governments around the world are accurate. ANS: F Researchers may question the accuracy of some data, especially with official statistics that may be adjusted for the political purposes of foreign governments. PTS: 1 DIF: Moderate REF: p. 146 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension MULTIPLE CHOICE 1. Obtaining secondary data is typically ______ and ______ expensive than obtaining primary data. a. faster; more b. slower; more c. faster; less d. slower; less ANS: C PTS: 1 DIF: Hard REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 2. A researcher who is interested in new car sales but who discovers that the secondary data from the U.S. government are in the form of statistics that include both car and light truck sales combined in the data has discovered that the data fail to meet which criterion? a. Are the data in the correct unit of measurement? b. Do the data apply to the time period of interest? c. Are the data supplied by a reputable source? d. Do the data show evidence of reliability and validity? ANS: A PTS: 1 DIF: Hard REF: p. 129 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application3. All of the following are common reasons why secondary data do not adequately satisfy research needs EXCEPT _____. a. outdated information b. too expensive c. variation in definition of terms d. different units of measurement ANS: B PTS: 1 DIF: Hard REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 4. The process of changing the original form of data to a format more suitable for achieving a stated research objective is called _____. a. data transformation b. reliability assessment c. cross-checking d. data mining ANS: A PTS: 1 DIF: Moderate REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 5. Sherrie is interested in average monthly sales for smartphones in the United States. She found information on the Internet that gives annual sales, so she took the annual sales and divided it by twelve to get a monthly average. This is an example of _____. a. data mining b. data division c. data transformation d. data validation ANS: C PTS: 1 DIF: Hard REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 6. Which of the following is a disadvantage of secondary data? a. user has no control over their reliability and validity b. inability to convert the data c. typically require additional access to research respondents d. all of these choices ANS: A PTS: 1 DIF: Hard REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 7. What is it called when a researcher compares secondary data from one source with data from another? a. data conversion b. cross-check c. data mining d. data enhancement ANS: B PTS: 1 DIF: Moderate REF: p. 131 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge8. A researcher is interested in knowing the median income of residents in the state of Ohio and has found several sources with this information. He is comparing the information from each source to verify the information. This researcher is performing a _____. a. reliability assessment b. data conversion c. cross-check d. data transformation ANS: C PTS: 1 DIF: Hard REF: p. 131 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 9. A typical objective for secondary-data research design is _____. a. model building b. fact-finding c. database marketing d. all of these choices ANS: D PTS: 1 DIF: Easy REF: p. 132 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 10. The simplest form of secondary-data research is _____. a. fact-finding b. model building c. forecasting sales d. database marketing ANS: A PTS: 1 DIF: Moderate REF: p. 132 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 11. Purchasing data from a company such as NPD Group, Inc. on consumption of soft drinks in the U.S. is an example of which objective for secondary data analysis? a. model building b. database marketing c. data mining d. fact-finding ANS: D PTS: 1 DIF: Hard REF: p. 132 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 12. Tracking monthly sales trends over the past year is an example of which objective for secondary data analysis? a. model building b. fact-finding c. database marketing d. environmental scanning ANS: B PTS: 1 DIF: Hard REF: p. 132 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 13. The observation and analysis of trends in industry volume and brand share over time is called _____.a. market tracking b. model building c. data mining d. database marketing ANS: A PTS: 1 DIF: Moderate REF: p. 133 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 14. When a marketing manager reads publications like The Wall Street Journal and BloombergBusinessweek to try to determine changes in consumer behavior, this is a form of _____, a. environmental scanning b. model building c. database marketing d. data mining ANS: A PTS: 1 DIF: Hard REF: p. 133 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 15. _____ involves specifying relationships between two or more variables, perhaps extending to the development of descriptive or predictive equations. a. Data transformation b. Data analysis c. Model building d. Fact-finding ANS: C PTS: 1 DIF: Moderate REF: p. 134 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 16. Lance has noticed that companies that advertise a lot seem to have higher sales than those that do not. His use of secondary data to help specify this relationship is an example of _____. a. data conversion b. validation c. reliability d. model building ANS: D PTS: 1 DIF: Hard REF: p. 134 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 17. The process of predicting sales totals over a specific time period is called _____. a. sales forecasting b. market potential estimation c. sales analysis d. market tracking ANS: A PTS: 1 DIF: Moderate REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge18. Every year, Westview Marble goes through the process of estimating sales for the upcoming year by looking at the company’s previous years’ sales and market sales along with economic trends and predictions by experts. This process of predicting sales totals over a specific time period is called ____. a. model building b. trend analysis c. sales forecasting d. market potential estimation ANS: C PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 19. Kyle is conducting a sales forecast by adding up his company’s sales over the past five years and then dividing that by five (the number of years). The forecasting technique he is using is called _____. a. moving average forecasting b. dynamic forecasting c. static forecasting d. indexing ANS: A PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 20. Which of the following is FALSE regarding sales forecasting? a. The moving average forecasting is best suited to a dynamic competitive environment. b. Accurate sales forecasts frequently come from secondary data research. c. Simple moving averages are often applied in practice. d. Marketing researchers often use internal company sales records to project sales. ANS: A PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 21. When Subway Sandwiches uses secondary data to determine the best location for its franchise outlets, this is an example of _____. a. site analysis b. model building c. database marketing d. market tracking ANS: A PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 22. Which of the following is a calculation that describes the relationship between retail demand and supply? a. index of retail sales b. index of retail utilization c. index of retail saturation d. index of retail sites ANS: C PTS: 1 DIF: Moderate REF: p. 136 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension23. If the population of a city is 230,000 and its annual per person expenditure on athletic shoes is $45, if there are 64,688 square feet of retail space used to sell athletic shoes in this city, its index of retail saturation is _____. a. 3.56 b. 12.65 c. 159.99 d. 330.06 ANS: C PTS: 1 DIF: Hard REF: p. 136 OBJ: 06-2 NAT: AACSB Analytic| CB&E Model Research| Blooms Application 24. Pottery Barn is a retail chain of home products. Before entering a new geographic area, the company develops an index consisting of a ratio of local market potential in dollars (demand) to local market retailing space in square feet. If this ratio is below a predetermined level, the site is not considered further. However, if this ratio is greater than that level, further site-selection analyses are performed. This index is called _____. a. index of retailers b. index of retail utilization c. index of retail sales d. index of retail saturation ANS: D PTS: 1 DIF: Hard REF: p. 136 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 25. Many companies use powerful computers to dig through volumes of data to discover patterns about their customers and products. This activity is called _____. a. data mining b. data digging c. sugging d. neural networking ANS: A PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 26. Which of the following is a form of artificial intelligence in which a computer is programmed to mimic the way that human brains process information? a. brain scan b. neural network c. schematic network d. intelligent network ANS: B PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 27. Watson, a computer developed by IBM that beat humans on the television game-show Jeopardy, uses artificial intelligence that mimics the way the human brain processes information. This artificial intelligence is called _____. a. robotic thinking b. brain simulator c. intelligent agents d. neural networksANS: D PTS: 1 DIF: Hard REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 28. Many retailers mine the databases provided by checkout scanners to identify coinciding purchases or relationships between products purchased and other retail shopping information. This type of analysis is referred to as ____. a. neural networking b. scandowns c. database marketing d. market-basket analysis ANS: D PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 29. Which of the following involves mining data to look for patterns identifying who is likely to be a valuable customer? a. customer discovery b. data dissection c. data profiling d. customer cloning ANS: A PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 30. When a credit card company uses information about each customer's age, gender, income, and past credit history to find patterns that make customers a poor credit risk, this is an example of _____. a. single-source data b. data conversion c. customer discovery d. index of customer saturation ANS: C PTS: 1 DIF: Hard REF: p. 138 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 31. The practice of using databases to promote one-to-one relationships with customers and create precisely targeted promotions is called _____ a. zoned marketing b. target marketing c. database marketing d. electronic marketing ANS: C PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 32. L.L.Bean is a retailer best-known for direct marketing through catalogs and the Internet. Laurie purchased from the retailer quite frequently, but since her daughter started college she hasn’t had as much disposable income and stopped ordering merchandise. The elapsed time since her last purchase triggered an offer for $20 off her next purchase from the retailer. This is an example of _____. a. database marketingb. neural networks c. customer discovery d. electronic marketing ANS: A PTS: 1 DIF: Hard REF: p. 138 OBJ: 03-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 33. Secondary data that originate inside the organization are called _____. a. first order data b. internal data c. exclusive data d. valid data ANS: B PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 34. All of the following are examples of internal secondary data EXCEPT _____. a. sales invoices b. census data c. inventory levels d. back orders ANS: B PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 35. Secondary data owned and controlled by the organization is referred to as _____. a. proprietary data b. selective data c. prime data d. personal data ANS: A PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 36. A(n) _____ is like an Internet search but focuses on data within the organization’s internal network. a. primary search b. internal search c. enterprise search d. discovery search ANS: C PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 37. A researcher for Kraft is searching sales data from the corporation’s Intranet. He’s able to use a search engine similar to Google, but he is not searching the entire Internet. This type of search is called a(n) _____ search. a. enterprise b. Intranet c. internal d. primaryANS: A PTS: 1 DIF: Hard REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 38. Facts observed, recorded, and stored by an entity outside of the researcher’s organization are called _____. a. proprietary data b. external data c. internal data d. primary data ANS: B PTS: 1 DIF: Moderate REF: p. 140 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 39. All of the following are producers of external secondary data EXCEPT _____. a. libraries b. trade associations c. government d. media ANS: A PTS: 1 DIF: Hard REF: p. 141 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 40. Which of the following is TRUE regarding U.S. government sources of secondary data? a. Most of the data published by the U.S. federal government can be counted on for accuracy and quality of investigation. b. Provides a real-time view of business news and financial statistics including stock values, exchange rates, and more. c. Provides customer satisfaction ratings for hundreds of large firms doing business in the United States. d. Reports market-share data using Universal Product Codes (UPC) and optical scanning at retail store checkouts. ANS: A PTS: 1 DIF: Hard REF: p. 142 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 41. Which of the following data can be purchased from commercial sources? a. advertising research b. market-share data c. consumer attitudes and public opinions d. all of these choices ANS: D PTS: 1 DIF: Easy REF: p. 144 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension 42. Buying new-car purchase data by zip code from the Polk Company is an example of which type of secondary data? a. media source b. commercial source c. trade association source d. primary sourceANS: B PTS: 1 DIF: Hard REF: p. 145 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 43. Asking a group of households to record their consumption of certain products over a two-year period is an example of _____. a. model building b. database marketing c. data conversion d. diary panel data ANS: D PTS: 1 DIF: Moderate REF: p. 145 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 44. What term is used by the marketing research industry to refer to diverse types of data offered by a single company? a. primary data b. single-source data c. compound data d. integrated data ANS: B PTS: 1 DIF: Moderate REF: p. 146 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 45. All of the following are limitations of international secondary data EXCEPT _____. a. data may simply be unavailable in certain countries b. data may be too expensive c. researchers may question the accuracy of some data d. various countries use different definitions and accounting and recording practices ANS: B PTS: 1 DIF: Hard REF: p. 146 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension COMPLETION 1. Data that were collected previously for a different research study are known as ______ data. ANS: secondary PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 2. When original data are changed to a different format in order to make them consistent with a research objective, this is known as data ______. ANS: transformation PTS: 1 DIF: Moderate REF: p. 130 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge3. Comparing data from one source with data from other sources to determine the consistency of the data is known as performing a(n) ______. ANS: cross-check PTS: 1 DIF: Moderate REF: p. 131 OBJ: 06-1 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 4. Tracking industry unit sales over the past twelve months is a form of ______ tracking. ANS: market PTS: 1 DIF: Moderate REF: p. 133 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 5. Reading The Wall Street Journal to study possible changes in consumer consumption patterns of specific products is an example of ______. ANS: environmental scanning PTS: 1 DIF: Hard REF: p. 133 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 6. Using secondary data to study relationships between advertising and sales is an example of ______. ANS: model building PTS: 1 DIF: Hard REF: p. 134 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 7. Predicting next month's dollar sales based on past sales for the previous twelve months is an example of a(n) ______. ANS: sales forecast PTS: 1 DIF: Hard REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application 8. Techniques that use secondary data to select the best location for a retail or wholesale operation are called _____ techniques. ANS: site analysis PTS: 1 DIF: Moderate REF: p. 135 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 9. The mathematical result of describing the relationship between retail demand and supply for a specific geographic area for a specific product is known as the index of retail ______ . ANS: saturation PTS: 1 DIF: Moderate REF: p. 136 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge10. When an organization uses powerful computers to try to discover patterns of customer relationships for its products, this is known as ______. ANS: data mining PTS: 1 DIF: Moderate REF: p. 137 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 11. _____ is a data-mining application that similarly involves mining data to look for patterns that can increase the value of customers. ANS: Customer discovery PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 12. Using customer databases to provide customized relationships with customers for specific promotions is an example of ______ marketing. ANS: database PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-2 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 13. A(n) _____ search is like an Internet search but focuses on data within the organization’s internal network. ANS: enterprise PTS: 1 DIF: Moderate REF: p. 139 OBJ: 06-3 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 14. Data which are created outside of the organization are called ______ secondary data. ANS: external PTS: 1 DIF: Moderate REF: p. 140 OBJ: 06-4 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge 15. Diverse types of data offered by a single company are known as ______ data. ANS: single-source PTS: 1 DIF: Moderate REF: p. 146 OBJ: 06-5 NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge ESSAY 1. Explain why researchers often look for secondary data first when conducting research but also discuss the drawbacks of using secondary data. ANS:There are several advantages to using secondary data, and it is wise for a researcher to start there. The primary advantage is their availability. It’s almost always faster and less expensive than acquiring primary data. Secondary data are essential in instances when data cannot be obtained using primary data collection procedures, such as obtaining information not accessible to a private firm (e.g., taxes paid). An inherent disadvantage is that they were not designed specifically to meet the researcher’s need. The most common reasons for this are that the data are outdated, vary in definition of terms, use different units of measurement, and lack the information to verify the data’s accuracy. Another disadvantage is that the user has no control over their reliability and validity. Research conducted by others may be biased to support the vested interest of the source. PTS: 1 DIF: Moderate REF: p. 128 OBJ: 06-1 NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension 2. Name and describe the three broad objectives that can be achieved using secondary data and give an example of each. ANS: Three general categories of research objectives that can be achieved using secondary data are: (1) Fact-finding - this is the simplest form for secondary-data research. It includes identification of consumer behavior for a product category, trend analysis, and environmental scanning. (2) Model building - involves specifying relationships between two or more variables, perhaps extending to the development of descriptive or predictive equations. Examples include estimating market potential, forecasting sales, data mining, and selecting trade areas and sites. (3) Database marketing - the practice of using CRM databases to develop one-to-one relationships and precisely targeted promotional efforts with individual customers. Examples include enhancing customer databases and developing prospect lists. PTS: 1 DIF: Moderate REF: p. 132 OBJ: 06-2 NAT: AACSB Communication| CB&E Model Research| Blooms Knowledge 3. Identify various internal sources of secondary data and explain how researchers can search this type of data. ANS: Internal data is defined as data that originated in the organization, or data created, recorded, or generated by the organization. Most organizations routinely gather, record, and store internal data to help them solve future problems. Routine documents such as sales invoices allow external financial reporting, which in turn can be a source of data for further analysis. Sales information, customer complaints, service records, and warranty card returns are other examples of this type of secondary data. Researchers can conduct an enterprise search, which a search driven by an Internet-type search engine that focuses on data within an organization’s internal network. PTS: 1 DIF: Moderate REF: p. 138 OBJ: 06-3 NAT: AACSB Communication| CB&E Model Research| Blooms Knowledge 4. Give examples of various external sources of secondary data and discuss how information, as a product, is distributed. ANS:External data are generated or recorded by an entity other than the researcher’s organization. Traditionally, this information has been in published form, but today computerized data archives and electronic data interchange make external data as accessible as internal data. Because secondary data have value, they can be bought and sold like other products, and channels of distribution include (1) libraries, (2) the Internet, (3) vendors, and (4) producers. Classifying external secondary data by the nature of the producer of information yields five basic sources: periodicals, government sources, media sources, trade associations, and commercial sources. PTS: 1 DIF: Moderate REF: p. 140 OBJ: 06-4 NAT: AACSB Communication| CB&E Model Research| Blooms Knowledge 5. A researcher has been commissioned by a major U.S. consumer packaged-goods company to determine the market potential for peanut butter in China. Discuss some concerns the researcher may have when attempting to find and use secondary data in this country.