Marketing 300 UW Madison Exam 2 – Verified Q’s and A’s

Marketing 300 UW Madison Exam 2 – Verified Q’s and A’s
marketing research - -procedures that develop and analyze the new information about a
market

-scientific method - -a decision making approach that focuses on being objective and
orderly in testing ideas before accepting them

-experimental method - -researchers compare the respinses of two (or more) groups that
are similar except on the characteristic being tested

-population - -total group the researcher is interested in

-sample - -a part of the relevant population

-validity - -concerns the extent to which data measure what they are intended to measure

-data analysis - -process of inspecting, cleansing, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision-
making

-big data - -data sets too large and complex to work with typical data-base management
tools

-confidence interval - -the range on either side of an estimate that is likely to contain the
true value for the whole population

-margin of error - -an amount (usually small) that is allowed for in case of miscalculation
or change of circumstances

-hypotheses - -educated guesses about the relationship between things or about what will
happen in the future

-marketing research process - -a five step application of the scientific method that
includes:
1) defining the problem
2) analyzing the situation
3) getting problem-specific data
4) Interpreting the data
5) solving the problem

-Situation analysis - -an informal study of what information is already available in the
problem area

-secondary data - -information that has been collected of published already

, ex: books, the internet, magazines

-primary data - -information specifically collected to solve a current problem

ex: surveys, intranet, focus groups

-research proposal - -a plan that specifies what information will be obtained and how -- to
be sure no misunderstandings occur later

-qualitative research - -seeks in-depth, open ended responses, not yes or no answers

-focus group - -one widely used form of qualitative questioning in marketing research,
which involves simultaneously interviewing 6 to 10 people in an informal group setting

-quantitative research - -seeks structured responses that can be summarized in numbers,
such as percentages, averages, or statistics

-price - -the amount of money that is charged for "something" of value

the only P of the 4 P's that directly correlates to profit

-target return objective - -sets a specific level of profit as an objective

-profit maximization objective - -seeks to get as much profit as possible

-sales oriented objective - -seeks some level of unit sales, dollar sales, or share of market--
without referring to profit

-status quo objectives - -don't rock the pricing boat objective
stabilize prices, or meet competition, or avoid competition

-nonprice competition - -aggressive action on one or more of the P's other than price

-skimming price policy - -tries to sell the top (skim the cream) of the market
(tries to sell high first before dropping the price to more price-sensitive consumers)

-penetration pricing policy - -tries to sell to the whole market at one low price

-discounts - -reductions from list price given by a seller to buyers who either give up some
marketing function or provide the functions themselves

-quantity discounts - -discounts offered to encourage customers to buy in larger amounts

-cumulative quantity discounts - -apply to purchases over a given period -- such as a year
-- and the discount usually increases as the amount increases