Sunday, November 13, 2016

Market Research test

Market Research test answers - Part 2

1. Which TWO of the following situations may cause 'response bias'?


 i)Emotive language in a survey question
 ii)Delay between designing a survey and using it
 iii)Using a voluntary-response method that leads to respondents not being representative of the population
 iv)Using qualitative rather than quantitative methods
 Answers: • i and ii only

 2. What is the name for the test that assesses whether the difference between the mean score for a sample and that of the population as a whole is 'statistically significant'?
 Answers: • Z-test

 3. What is the 'mean' of the following data: 3, 11, 5, 6, 7, 5, 6, 5?
 Answers: • 6

 4. Which of the following types of companies would be LEAST interested in 'coolhunting' as a form of market research?
 Answers: • A record company

 5. What type of measure would be gained by asking consumers to choose which company from a list was the sponsor of an advertisement?
 Answers: • Unaided awareness

 6. For what purpose is the 'Schmidt-Hunter' technique of meta-analysis used?
 Answers: • To determine the reliability of data.

 7. What is the 'modal' value of the following: 2, 2, 2, 3, 3, 4, 5, 5?
 Answers: • 2

 8. 50 people are asked to respond to a question with the answers Yes/No/Don't know on two occasions. On the first occasion, the responses were 15/25/10 and on the second 18/26/6.

 What is the change in the number of positive responses as a percentage of the whole sample?
 Answers: • 6%

 9. Which of the following sources of market-research data would NOT contribute to a study on a retail company's customer conversion rate?
 Answers: • Counting the number of customers entering the company's stores

 10. What is the 'range' of the following data: 1, 1, 2, 2, 2, 3, 3, 4?
 Answers: • 3

 11. Which of the following statements is/are true?

 i)Comparing weighted scores for key industry success factors (e.g. economies of scale) between competitors is known as 'competitor array analysis'.
 ii)Benchmarking is an effective means of identifying the best industry practice.
 Answers: • Both (i) and (ii) are true.

 12. Which of the following best describes 'secondary' market research?
 Answers: • Research that is designed to corroborate previous research

 13. In which of the following pieces of information would a mystery shopper NOT be fundamentally interested?
 Answers: • Technical specifications of a product

 14. What is meant by the expression 'Type II error'?
 Answers: • The rejection of a true hypothesis

 15. What does a correlation of '-1' between two variables indicate?
 Answers: • That there is a slight negative correlation between the variables.

 16. Which of the following is NOT a characteristic of 'covert observational' market research?
 Answers: • The subjects' approval need not be sought.

 17. Which of the following is NOT a component of the 'marketing research mix'?
 Answers: • Product

 18. A PEST analysis can be used to identify the external factors affecting a market. What does the 'P' of PEST stand for?
 Answers: • Political

 19. Which of the following MUST be true for a market that is 'price elastic'?
 Answers: • A price cut causes total revenue to decrease.

 20. If the following responses were received regarding a statement in a survey, what is the percentage of those who opposed the statement?

 Strongly agree: 86
 Agree: 212
 Neither agree Nor disagree: 127
 Disagree:62
 Strongly disagree:13
 Answers: • 5%

 21. If a company commissioned market research to look at the potential effect of changing an attribute of a product (e.g. its colour), what specific type of market research would it be?
 Answers: • Causal

 22. Which of the following is NOT an 'experimental' form of market research?
 Answers: • Traffic audit

 23. Which of the following is/are problems associated with surveys as a method of market research?

 i)They cannot access a large sample size.
 ii)There is potential for response bias.
 Answers: • Both (i) and (ii) are true.

 24. Which of the following is an example of a 'closed' question?
 Answers: • "Do you like Mozart?"

 25. Which of the following situations would be LEAST likely to encourage a company to consider re-positioning itself?
 Answers: • A reduction in production costs

 26. Companies may be forced to remain in an unprofitable market because they have, for example, invested heavily in infrastructure. What are these factors known as?
 Answers: • Transfer costs

 27. Which of the following conclusions should be drawn from the voting phenomenon commonly known as the 'Bradley effect' (or 'Wilder effect')?
 Answers: • People's behavior does not necessarily follow their stated intentions.

 28. Which of the following problems is caused by 'collinearity' within data?
 Answers: • It causes less important factors to have a disproportionate influence on the outcome.

 29. If 25% of the respondents reported that they would buy product A and 48% reported they would buy product B, how many respondents would buy both?
 Answers: • Impossible to tell

 30. What is the 'Fourt-Woodlock' model used to make predictions?
 Answers: • Product sales, based on the number of trial purchases converted into repeat purchases

 31. What sub-set of a set of data is covered by the 'box' element of a box-and-whisker diagram (or 'box plot')?
 Answers: • The second and third quartiles

 32. What is the name given to the effect whereby people carry out an activity differently if the management is taking an interest in or monitoring them?
 Answers: • Hawthorne effect

 33. Market research can be used to characterize a particular market. Which of the following characterizes a 'perfect' market?
 Answers: • Low barriers to entry, few sellers

 34. Which of the following statements is/are true?

 i)The data on which secondary market research is based is unlikely to be tailored precisely to the requirements of the task.
 ii)Secondary market research tends to be more expensive than primary research.
 Answers: • Both (i) and (ii) are true.

 35. What does it mean to say that a test is "significant at the 2% level"?
 Answers: • That 2% of the respondents agreed with the assertion.

 36. Forecasting is made difficult by the fact that tiny initial variations can have significant long-term effects. What is this phenomenon known as?
 Answers: • Butterfly effect

 37. Which of the following goals is most commonly associated with the use of 'projective' techniques in market research?
 Answers: • To identify the feelings associated with a brand

 38. Which of the following is NOT a problem associated with postal surveys?
 Answers: • Collating data is time-consuming.

 39. Which of the following is a statistical measure used to calculate how widely-spread a set of data is?
 Answers: • Standard deviation

 40. Which of the following is/are typical problems associated with 'observational' market research?

 i) It increases the potential for bias.
 ii) It reveals little about motivation.
 iii) It relies on the honesty of the participants.
 Answers: • iii only

 41. Which of the following best describes the phenomenon of 'optimism bias'?
 Answers: • The tendency to assume that things will work out well

 42. Which of the following is true of a market with a 'zero-profit condition'?
 Answers: • New companies can easily enter the market, preventing those in the market from making high profits.

 43. It is important that surveys actually measure what they are intended to. Which of the following terms describes this consideration?
 Answers: • Validity

 44. Which of the following is/are typical 'barriers to entry'?

 i)Existing contracts held by the company
 ii)Redundancy costs
 iii)Equipment that cannot be sold or reconfigured
 Answers: • None of the above

 45. Which of the following best characterizes face-to-face surveys relative to other types of surveys?
 Answers: • High response rate, high cost

 46. Which of the following is NOT a function performed by the 'management information' system?
 Answers: • The formulation of hypotheses

 47. Which of the following are reasons for a company undertaking 'price elasticity analysis'?

 i)Determining the types of people who buy a product
 ii)Identifying 'price points' in the market for a product
 iii)Investigating the effects of price changes on sales
 Answers: • ii and iii

 48. Which of the following models the process by which new products are taken up amongst a population of potential customers?
 Answers: • Bass diffusion model

 49. To what end do market researchers use 'choice modeling'?
 Answers: • To make predictions about human decision making behavior

 50. Which of the following best defines the term 'Market Segmentation'?
 Answers: • The grouping of consumers on the basis of similar needs

 51. Which of the following statements is/are true?

 i)Data can be extrapolated to predict future behavior.
 ii)A moving average can be used to reduce the impact of anomalies in data.
 Answers: • Both (i) and (ii) are true.

 52. Which of the following statements is/are true of 'choice modeling'?

 i)It permits the respondents to behave strategically.
 ii)It compels the respondents to consider compromises between mutually-incompatible features.
 Answers: • Neither is true.

 53. Which of the following would NOT be a primary reason for analyzing demographic information collected as part of a survey?
 Answers: • To help identify the target audience for a product

 54. What does the 'Dirichlet model' seek to describe?
 Answers: • The relationship between marketing and sales

 55. Which of the following statements is/are true?

 i)A 'longitudinal' survey is one where the same set of respondents complete the same survey on two or more occasions.
 ii)A 'cross-sectional' survey is one where the same set of respondents complete different surveys on two or more occasions.
 Answers: • Only (i) is true.

 56. Which of the following best describes 'syndicated' market research?
 Answers: • Research that is conducted to be sold to multiple clients

 57. Which of the following best describes the technique of 'A/B testing' (or 'split testing')?
 Answers: • Using multiple versions of advertising materials to determine which is most effective

 58. Which of the following survey questions would be most likely to yield unbiased responses?
 Answers: • "What do you think of the decision to raise taxes?"

 59. What is meant by the term 'hypothesis'?
 Answers: • A situation that is not real

 60. Which of the following is NOT an example of 'observational' market research?
 Answers: • Using a focus group

 61. What is the name of the forecasting method whereby a panel of independent experts answer questionnaires in two or more rounds in order to converge on the correct answer?
 Answers: • The Delphi method

 62. What is the 'interquartile range' of the following data: 10, 6, 12, 8, 2, 6, 4?
 Answers: • 6

 63. What is the 'median' value of the following data: 1.5, 5, 3.5, 2, 4, 2.5, 1.5, 3?
 Answers: • 2.75

 64. Which of the following best describes the market research related term 'sugging'?
 Answers: • Using market research as a cover for generating business

 65. Which of the following is NOT typically a qualitative method of market research?
 Answers: • Using a focus group

 66. 'Scenario planning' can be used to draw conclusions about the future state of a market. Which of the following best characterizes this approach?
 Answers: • Considering multiple possible situations so that the organization can respond to a range of eventualities

 67. Competing brands can be placed on a graph to illustrate their market positioning and thereby identify potential niches. What is the term for this analytical technique?
 Answers: • Brand analysis

 68. Which of the following does NOT feature in Porter's 'five forces analysis'?
 Answers: • Threat of international competition

 69. Before which of the following decisions would it be LEAST sensible for a company to undertake market analysis?
 Answers: • Whether to purchase a new plant

 70. Which of the following terms concerns applying statistical methods to the deduction of economic principles?
 Answers: • Predictive analytics

 71. Which of the following statements is/are true?

 i)Small changes in the wording of a survey question can have a significant effect on respondents' answers.
 ii)If the sample size for a survey is large enough, predictions about consumer behavior can, effectively, be made completely accurate.
 Answers: • Both (i) and (ii) are true.

 72. Because probabilistic predictions are not always accurate, market researchers may generate a representative sample of the possible future states. What is this forecasting approach known as?
 Answers: • Conjoint forecasting

 73. How many levels are usually there on a Likert scale?
 Answers: • 5-7

 74. Which of the following statements is/are true?

 i) Market researchers must be objective.
 ii) Market research comprises analysis and predictions of consumer behavior.
 Answers: • Both (i) and (ii) are true.

 75. Which of the following best describes the purpose of 'Ad Tracking'?
 Answers: • To check the effectiveness of marketing activities

 76. To what end is 'conjoint analysis' used?
 Answers: • To assess the relative importance of different product features

 77. Which TWO of the following are issues associated with 'benchmarking'?

 i)It leads to increased production costs.
 ii)It can be difficult to obtain the necessary data.
 iii)Comparison with market leaders is not a helpful process.
 iv)Organizations are not necessarily directly comparable.
 Answers: • ii and iv only

 78. Which of the following types of sampling involves selecting a set number (which need not be the same) of a distinct sub-group (or 'stratum')?
 Answers: • Quota sampling

Market Research test answers - Part 1

1. Which of the following is not a form of primary data?
 Answers: • Theories

 2. Which of the following is NOT a common market segmentation?
 Answers: • Anthrographic

 3. When you use data collected by someone else that already existed, it is called:
 Answers: • Secondary data

 4. Which of the following do you NOT use to calculate the necessary sample size?
 Answers: • The Pareto Effect

 5. A common description for Gaussian distribution is:
 Answers: • A bell curve

 6. What does ANOVA stand for?
 Answers: • Analysis of Variance

 7. Online, mall intercept and phone are examples of:
 Answers: • Survey delivery methods

 8. What is exploratory research?
 Answers: • Research conducted for a problem that is not yet fully defined

 9. What is CAGR?
 Answers: • compound annual growth rate

 10. Which is not a type of secondary data?
 Answers: • Interview


 11. The American FactFinder primarily provides what kind of information?
 Answers: • Demographic Data

 12. A focus group is an example of what specific kind of research?
 Answers: • Primary Research

 13. SPSS is an example of a:
 Answers: • Popular statistical analysis software product

 14. ______ is considered a syndicated service research firm.
 Answers: • Nielsen

 15. "How did you like the food and overall experience?" Why is this a poor questionnaire question?
 Answers: • It is double-barreled

 16. If 70% of the Population is watching TV at a given time, what would be the rating of a program achieving 10% Share of audience ?
 Answers: • 7%

 17. When you choose a few cities to trial a product, this is called:
 Answers: • A test market

 18. The marketing research process starts with
 Answers: • Defining research objectives

 19. The first step in any market research effort is to:
 Answers: • Define the problem and objectives

 20. Google Trends is a resource that lets you research the popularity of keywords related to your business idea. This resource is available for:
 Answers: • Free

 21. Market research is an organized effort to gather information about what?
 Answers: • Markets or Customers

 22. Standard deviation means:
 Answers: • how much variation there is from the average or mean

 23. The chart that shows a circle with colored wedges representing percentages is called:
 Answers: • A pie chart

 24. True or False? "Treatment" is the changes that are being made to the independent variable in a research study.
 Answers: • True

 25. When 8-12 people are specifically selected and brought together to discuss a a topic, it is called:
 Answers: • A focus group

 26. The two categories of research are:
 Answers: • Primary and secondary

 27. Which of these are NOT included in the "marketing mix"?
 Answers: • Perception

 28. SWOT Analysis refers to _______?
 Answers: • Strengths, Weaknesses, Opportunities, Threats

 29. When we say a sample size needs to have sufficient statistical power, what do we mean?
 Answers: • It needs to be big enough to be statistically valid for high confidence

 30. How are psychographic segments grouped?
 Answers: • All of these

 31. Market research is of no use to non-profit organizations.
 Answers: • False

 32. Which one is a type of measurement scale?
 Answers: • All of these

 33. True or false? Observation is an accepted form of market research.
 Answers: • True

 34. What does "SWOT" (as in SWOT Analysis) stand for?
 Answers: • Strengths Weaknesses Opportunities Threats

 35. Which is a classification of market research?
 Answers: • Exploratory research

 36. Which of the following is NOT a sales forecasting method?
 Answers: • Binomial Regression

 37. Ranking items in order of preference is called _______________ method.
 Answers: • the rank-order

 38. True or false? A double-barrelled question is good because it gets information on multiple topics.
 Answers: • False

 39. What kind of market research would be most helpful in determining whether or not to sell a product via the Internet?
 Answers: • Distribution research

 40. _______ data deals with relationships, while _______ data does not.
 Answers: • bivariate; univariate

 41. A common qualitative research method is:
 Answers: • Observing the subject in a related situation

 42. The type of market research firm that gathers consumer and trade information is:
 Answers: • A syndicated service research firm

 43. Which of the following settings would be best for a "depth interview"?
 Answers: • In a consumer's home

 44. What does p=.05 indicate?
 Answers: • A 95% confidence level

 45. In which situation would you use post-coding?
 Answers: • When analyzing a list of open-ended questions

 46. A statistical probability test measuring a calculated value’s ability to occur due to chance is a(n):
 Answers: • F-test

 47. Which of these are NOT examples of paradata?
 Answers: • The percent of participants in a survey that are able to identify popular logos

 48. To show the information or data collected in useful form
 Answers: • Data Tabulation

 49. Which type of research is used to define problems and suggest hypotheses?
 Answers: • Descriptive Research

 50. The primary purpose behind perceptual mapping is
 Answers: • Product/service positioning

 51. What is another term for a z-score?
 Answers: • Standard score

 52. Which of the following is NOT a common type of question?
 Answers: • Validative

 53. What is the Markov Model?
 Answers: • A process using matrices to find the probability of users in one brand category switching to a different brand the next time they buy in that category

 54. A focus group is best at providing:
 Answers: • Directional insight

 55. Semantic differential scale is a form of:
 Answers: • Attitude rating scale

 56. Which of the following is a non probability sampling method?
 Answers: • Quota Sampling

 57. If a survey question uses two bi-polar words and degrees of agreement, it is using:
 Answers: • A semantic differential scale

 58. Which of these is not an Online Survey Programming Tool:
 Answers: • Wincross

 59. Which of the following is NOT a common form of market research?
 Answers: • Depth research

 60. What is a benefit in using a "laddering" interview?
 Answers: • It helps uncover a consumer's core values

 61. Using a Likert question or scale is common in:
 Answers: • Constructing useful survey questions

 62. What is it called when one rejects the null hypothesis and accepts the alternative, when in fact the null hypothesis is false?
 Answers: • Type II error

 63. A sample space is:
 Answers: • A set including all possible outcomes for a particular experiment

 64. Open end responses are coded using a specific technique
 Answers: • Ascribe

 65. Which of the following is an advantage of using a mixed-mode survey?
 Answers: • Greater potential response rate

 66. Cross-tabulation is used to create a __________.
 Answers: • contingency table

 67. Which of the following is NOT a type of product research?
 Answers: • Pricing analysis

 68. Which of the following would be a specialized research technique?
 Answers: • Word association

 69. The Flowerpot approach is a:
 Answers: • Process for developing questionnaires in a systematic way

 70. A for-profit organization that puts together a consortia of data sources into packages that are offered to municipal, corporate, and university libraries is called a:
 Answers: • Data wholesaler

 71. What is it called when one rejects the null hypothesis and accepts the alternative, when in fact the null hypothesis is true?
 Answers: • Type I error

 72. A Stapel Scale is a _______ rating scale from - 5 to + 5.
 Answers: • unipolar

 73. A Stapel Scale is a _______ rating scale from - 5 to + 5.
 Answers: • unipolar

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