Test bank for Principles of Marketing, 18th Edition Philip Kotler Gary Armstrong

Principles of Marketing, 15e (Kotler/Armstrong) Chapter 4 Managing Marketing Information to Gain Customer Insights 1) With the recent explosion of information technologies, . A) most marketing managers are overloaded with data and often overwhelmed by it B) most marketing managers are concerned solely about the duplication of content C) companies have ceased to feel the need for marketing information systems D) companies have ceased to maintain internal databases E) it has become more difficult and expensive to obtain primary data Answer: A Page Ref: 99 Skill: Concept Objective: 4-1 Difficulty: Easy 2) Brad works with a reputed retailer and leads a team that collects market information from a wide variety of sources ranging from marketing research studies to monitoring online conversations where consumers discuss Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumer behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the team. A) product development B) strategy implementation C) human resource D) customer relationship management E) customer insights Answer: E Page Ref: 99 Skill: Application Objective: 4-1 Difficulty: Moderate 3) A(n) consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. A) enterprise planning system (EPS) B) enterprise information system (EIS) C) marketing information system (MIS) D) corporate performance management (CPM) E) geographic information system (GIS) Answer: C Page Ref: 99 Skill: Concept Objective: 4-1 Difficulty: Easy 4) An MIS is used to . A) generate product interest B) develop marketing plans C) identify demographic trends D) assess information needs E) test hypotheses about cause-and-effect relationships Answer: D Page Ref: 99 Skill: Concept Objective: 4-1 Difficulty: Easy 5) An MIS user should most likely be able to . A) implement new technology B) increase order requests C) develop customer insights D) analyze employee turnover E) establish short-term objectives Answer: C Page Ref: 100 Skill: Concept Objective: 4-1 Difficulty: Easy 6) The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) . A) enterprise planning system B) product mix C) underground economy D) marketing information system E) niche market Answer: D Page Ref: 99 Skill: Application Objective: 4-1 Difficulty: Moderate 7) Diana, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Diana is using . A) ethnographic research B) internal databases C) netnographic research D) data warehouses E) spatial databases Answer: B Page Ref: 100 AACSB: Use of Information Technology Skill: Application Objective: 4-2 Difficulty: Moderate 8) Information in a company's database can come from many sources. An advantage of harnessing such information is to . A) eliminate employee turnover B) achieve a high degree of employee empowerment C) gain competitive advantage D) gain access to mass markets E) eliminate resource dependency Answer: C Page Ref: 100 AACSB: Use of Information Technology Skill: Concept Objective: 4-2 Difficulty: Easy 9) Which of the following is an advantage of using an internal database? A) Data always remains current in internal databases. B) Highly sophisticated equipment and techniques are not required for maintaining internal databases. C) Internal databases can be accessed more quickly and cheaply than other information sources. D) Internal databases require less maintenance efforts. E) Information obtained from internal databases is almost always sufficient for making marketing decisions. Answer: C Page Ref: 100 AACSB: Use of Information Technology Skill: Concept Objective: 4-2 Difficulty: Easy 10) Which of the following is a disadvantage of using information from internal databases? A) Obtaining information from internal databases is both time consuming as well as expensive. B) It is impossible to verify information obtained from internal databases. C) Using information from internal databases leads to biased research findings. D) Internal information may be incomplete or in the wrong form for making marketing decisions. E) Internal databases do not support highly sophisticated technologies which makes it difficult to store large volumes of data. Answer: D Page Ref: 101 AACSB: Use of Information Technology Skill: Concept Objective: 4-2 Difficulty: Moderate 11) is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. A) Data warehousing B) Competitive marketing intelligence C) SWOT analysis D) Ethnographic research E) Customer relationship management Answer: B Page Ref: 101 Skill: Concept Objective: 4-2 Difficulty: Easy 12) The marketing department of a reputed firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives? A) ethnographic research B) blindspots analysis C) data warehousing D) competitive marketing intelligence E) customer relationship management Answer: D Page Ref: 101 AACSB: Analytic Skills Skill: Application Objective: 4-2 Difficulty: Moderate 13) Which of the following statements is true regarding competitive marketing intelligence? A) The advantage of using competitive marketing intelligence is negligible. B) The goal of competitive marketing intelligence is to improve recruiting efforts. C) Competitive marketing intelligence relies upon costly internal databases. D) Competitive marketing intelligence relies upon publicly available information. E) Companies using competitive marketing intelligence routinely ignore consumers' online chatter. Answer: D Page Ref: 101 Skill: Concept Objective: 4-2 Difficulty: Moderate 14) Which of the following refers to a marketing intelligence technique? A) interviewing customers randomly B) increasing the annual budget for R&D C) investing heavily on primary research D) implementing product diversification E) benchmarking competitors' products Answer: E Page Ref: 101 Skill: Concept Objective: 4-2 Difficulty: Moderate 15) Which of the following most likely refers to a person who is charged with sifting through online customer conversations and passing along key insights to marketing decision makers? A) chief creative officer B) chief communications officer C) brand manager D) chief listening officer E) programmer analyst Answer: D Page Ref: 102 Skill: Concept Objective: 4-2 Difficulty: Easy 16) Firms use competitive marketing intelligence to . A) create and sustain market monopolies B) counter the adverse effects of organizational anarchy C) perpetuate organizational learning D) gain early warnings of competitor moves and strategies E) strengthen weak ties with industry competitors Answer: D Page Ref: 104-105 AACSB: Use of Information Technology Skill: Concept Objective: 4-2 Difficulty: Moderate 17) is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. A) Niche marketing B) Total quality management C) Marketing research D) Breakeven analysis E) Causal research Answer: C Page Ref: 103 AACSB: Dynamics of the Global Economy Skill: Concept Objective: 4-3 Difficulty: Easy 18) Which of the following is true with regard to marketing research? A) The marketing research process depends primarily on sophisticated internal databases. B) The marketing research process requires assessing macroeconomic forces. C) Marketing research gives marketers insights into customer motivations. D) Marketing research eliminates the need for a SWOT analysis. E) Marketing research is a simple two-step process. Answer: C Page Ref: 103 Skill: Concept Objective: 4-3 Difficulty: Moderate