GACE TEST PREP QUESTIONS &
ANSWERS(RATED A+)
Which of the following data sources is NOT typically used in market research?
A. observations
b. Mail services
c. Private sources
d. Personal interviews - ANSWER Private sources(The question requires one to apply
knowledge of market research to indenify a data source that is not typically used in
market research. Because of selection bias, this sources are not typically used in
market research.)
Which of the following are advantages that online focus group research has over face-
to-face focus group research? (multiple answers)
a. broader target population
b. Higher quality feedback
c. reduced bias
d. reduced cost - ANSWER A, B, D(Online interviews can have access too hard-to-
reach segments- for example executives, subject matter experts, professionals, teens,
and bust people. Online groups also offer rich data, convenience, speed, and are more
cost effective when compared to face to face focus groups)
Which of the following quantitative forecasting methods can evaluate an entire
marketing plan?
a. Market test
b. Market potential
c. Trend analysis
d. SWOT (strengths, weaknesses, opportunities, and threat) - ANSWER Market test
(This is constricted to assess all the variables in a marketing plan. This is a stage of
product development where the product and the marketing plan are exposed to a
chosen sample of the population to decide whether to reject the product or have a full-
scale launch)
Many companies produce and sell green products even though they are more
expensive than regular products. Most consumers say they care about the environment
and indicate that they buy green products. However, market researchers are concerned
that the consumers may not actually make those purchases. Which are the following
sampling errors most closely explains the researchers' concern?
a. Frame
b. Random
c. Measurement
d. Nonresponse - ANSWER Measurement (is an error in the difference obtained by the
measurement)
,~A regional hamburger restaurant sells a signature triple patty sandwich on a whole
wheat bun. The restaurant is considering using a pretzel bun instead. Which of the
following types of research will best help the restaurant decide whether the change will
be profitable?
a. descriptive
b. exploratory
c. casual
d. ethnographic - ANSWER Casual (casual research looks at whether a change in one
variable will affect another, such as whether changing the type of bun on a sandwich will
affect sales of that sandwich.)
Which of the following is the number of months' worth of inventory a business should
keep in stock during a year if the stock rate is 4? - ANSWER 3 (in order to find out how
many months of inventory you should keep in stock. divide by 12 (# of months in a year)
buy the stock turnover rate (4) to get 12/4=3)
Which of the following types of research will best show the effect that implementing a
new pricing policy in a small geographic area will have on a national retail chain?
a. descriptive
b. experimental
c. secondary
d. exploratory - ANSWER Experimental (when companies experiment, they often use
test markets, which offer a product for sale in a small geographic area to help evaluate
potential marketing actions)
Which of the following data collection methods is the most cost-effective way to reach a
large sample of customers?
a. focus group interviews
b. Internet surveys
c. mail surveys
d. personal interviews - ANSWER Internet surveys (can be conducted quickly and are
in expensive)
Which of the following data collection models would be most appropriate for a survey
where every question must be answered? - ANSWER Computer administered (this
survey eliminate the human factor when property programmed, eliminating the
possibility of over looked or skipped questions, as well as the possibility of incorrectly
recording responses)
Marsha is conducting market research targeting people who shop at a particular grocery
store. She stands outside the store, approaches every tenth person exiting the store,
and asks if they are willing to complete a survey. Which of the following terms best
describes the type of sample Marsha is developing?
a. random
b. convenience
c. judgment
, d. referral - ANSWER random (by asking every 10th person who exited the store, she
ensured that her own biases were not involved in the consumer selection, resulting in a
systematic random sample. Everyone exiting the store had an equal chance to be
selected for the survey)
Which of the following can be best described as names and symbols that are used to
identify a company and are protected under the Langham Act of 1946 when registered
with the federal government?
a. copyright
b. endorsements
c. patents
d. trademarks - ANSWER trademarks (this question tests your knowledge of legal
issues involving marketing. Many companies use symbols or brand names to identify
their product in a market. These names and symbols often require protection)`
Which of the following is a primary advantage of using marketing research?
a. It is effective with a small sample size
b. it generates reliable data
c. it produces infallible results
d. it helps in making good decisions - ANSWER it helps in making good decisions (the
main advantage of using marketing research is that it provides information that helps
make good decisions)
A marketing manager studied the sales data of a retail store and found that many
customers who bought chocolate bars also bought strawberries. Which of the following
most closely represents the technique used by the manager to analyze data?
a. behavioral analysis
b. syndicated surveying
c. data mining
d. structured sampling - ANSWER Data mining (uses statistical tools to reveal trends
and relationships between data)
Which of the following research methods will best capture customer interactions and
potentially generate a large amount of product/service ideas and insights?
a. focus groups
b. consumer panels
c. mail surveys
d. mystery shopping - ANSWER Focus groups (tend to yield a greater number of new
ideas and insights through interactions with customers)
Joshua, a store manager, is considering whether to add a new product line to his store.
He invites some of his golfing partners, members of his church, and his children's
schoolteachers to a social gathering so he can hear their comments and concerns
about the new line. Which of the following best represents the type of research Joshua
is conducting?
a. qualitative
ANSWERS(RATED A+)
Which of the following data sources is NOT typically used in market research?
A. observations
b. Mail services
c. Private sources
d. Personal interviews - ANSWER Private sources(The question requires one to apply
knowledge of market research to indenify a data source that is not typically used in
market research. Because of selection bias, this sources are not typically used in
market research.)
Which of the following are advantages that online focus group research has over face-
to-face focus group research? (multiple answers)
a. broader target population
b. Higher quality feedback
c. reduced bias
d. reduced cost - ANSWER A, B, D(Online interviews can have access too hard-to-
reach segments- for example executives, subject matter experts, professionals, teens,
and bust people. Online groups also offer rich data, convenience, speed, and are more
cost effective when compared to face to face focus groups)
Which of the following quantitative forecasting methods can evaluate an entire
marketing plan?
a. Market test
b. Market potential
c. Trend analysis
d. SWOT (strengths, weaknesses, opportunities, and threat) - ANSWER Market test
(This is constricted to assess all the variables in a marketing plan. This is a stage of
product development where the product and the marketing plan are exposed to a
chosen sample of the population to decide whether to reject the product or have a full-
scale launch)
Many companies produce and sell green products even though they are more
expensive than regular products. Most consumers say they care about the environment
and indicate that they buy green products. However, market researchers are concerned
that the consumers may not actually make those purchases. Which are the following
sampling errors most closely explains the researchers' concern?
a. Frame
b. Random
c. Measurement
d. Nonresponse - ANSWER Measurement (is an error in the difference obtained by the
measurement)
,~A regional hamburger restaurant sells a signature triple patty sandwich on a whole
wheat bun. The restaurant is considering using a pretzel bun instead. Which of the
following types of research will best help the restaurant decide whether the change will
be profitable?
a. descriptive
b. exploratory
c. casual
d. ethnographic - ANSWER Casual (casual research looks at whether a change in one
variable will affect another, such as whether changing the type of bun on a sandwich will
affect sales of that sandwich.)
Which of the following is the number of months' worth of inventory a business should
keep in stock during a year if the stock rate is 4? - ANSWER 3 (in order to find out how
many months of inventory you should keep in stock. divide by 12 (# of months in a year)
buy the stock turnover rate (4) to get 12/4=3)
Which of the following types of research will best show the effect that implementing a
new pricing policy in a small geographic area will have on a national retail chain?
a. descriptive
b. experimental
c. secondary
d. exploratory - ANSWER Experimental (when companies experiment, they often use
test markets, which offer a product for sale in a small geographic area to help evaluate
potential marketing actions)
Which of the following data collection methods is the most cost-effective way to reach a
large sample of customers?
a. focus group interviews
b. Internet surveys
c. mail surveys
d. personal interviews - ANSWER Internet surveys (can be conducted quickly and are
in expensive)
Which of the following data collection models would be most appropriate for a survey
where every question must be answered? - ANSWER Computer administered (this
survey eliminate the human factor when property programmed, eliminating the
possibility of over looked or skipped questions, as well as the possibility of incorrectly
recording responses)
Marsha is conducting market research targeting people who shop at a particular grocery
store. She stands outside the store, approaches every tenth person exiting the store,
and asks if they are willing to complete a survey. Which of the following terms best
describes the type of sample Marsha is developing?
a. random
b. convenience
c. judgment
, d. referral - ANSWER random (by asking every 10th person who exited the store, she
ensured that her own biases were not involved in the consumer selection, resulting in a
systematic random sample. Everyone exiting the store had an equal chance to be
selected for the survey)
Which of the following can be best described as names and symbols that are used to
identify a company and are protected under the Langham Act of 1946 when registered
with the federal government?
a. copyright
b. endorsements
c. patents
d. trademarks - ANSWER trademarks (this question tests your knowledge of legal
issues involving marketing. Many companies use symbols or brand names to identify
their product in a market. These names and symbols often require protection)`
Which of the following is a primary advantage of using marketing research?
a. It is effective with a small sample size
b. it generates reliable data
c. it produces infallible results
d. it helps in making good decisions - ANSWER it helps in making good decisions (the
main advantage of using marketing research is that it provides information that helps
make good decisions)
A marketing manager studied the sales data of a retail store and found that many
customers who bought chocolate bars also bought strawberries. Which of the following
most closely represents the technique used by the manager to analyze data?
a. behavioral analysis
b. syndicated surveying
c. data mining
d. structured sampling - ANSWER Data mining (uses statistical tools to reveal trends
and relationships between data)
Which of the following research methods will best capture customer interactions and
potentially generate a large amount of product/service ideas and insights?
a. focus groups
b. consumer panels
c. mail surveys
d. mystery shopping - ANSWER Focus groups (tend to yield a greater number of new
ideas and insights through interactions with customers)
Joshua, a store manager, is considering whether to add a new product line to his store.
He invites some of his golfing partners, members of his church, and his children's
schoolteachers to a social gathering so he can hear their comments and concerns
about the new line. Which of the following best represents the type of research Joshua
is conducting?
a. qualitative
