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Chapter 6: Using Secondary Data and Online Information Databases

Chapter 6

USING SECONDARY DATA AND ONLINE INFORMATION DATABASES

GENERAL CONCEPT MULTIPLE CHOICE QUESTIONS

1.A marketing researcher, Robert D. Aaron, states that when researchers take on a new client, they need to learn about the client's industry and the issues within the industry. Therefore, researchers should use ________ at the beginning of the research project to gain an independent view of the industry.

a. secondary data research

b. other marketing research agencies with a history of research in the client's industry

c. stock analyst reports on the client's industry

d. a survey of industry experts

e. an analysis of court cases in the industry

Answer: (a) Difficulty: (Easy) Page: 144

2. When it is determined that the research project will require primary data, secondary data should:a. be discardedb. not be collected as it will be a waste of resourcesc. should be utilized only if it conforms to the findings contained in the primary datad. be consulted anywaye. be used only in cases where the primary data is not gathered using accepted industry standards

Answer: (d) Difficulty: (Easy) Page: 145

3.Which type of data refers to information that is developed or gathered by the researcher specifically for the research project at hand?

a. basic data

b. primary data

c. complex data

d. secondary data

e. online data

Answer: (b) Difficulty: (Easy) Page: 1474.Which type of data refers to data that have been gathered by someone other than the researcher and/or for some other purpose than the research project at hand?

a. basic data

b. primary data

c. complex data

d. secondary data

e. online data

Answer: (d) Difficulty: (Easy) Page: 1475. Which has done more to bring about fast and easy access to secondary data since the Gutenberg Press?

a. the Information Access Act of 2003

b. Bill Gates

c. the Internet

d. the need for information

e. cable TV

Answer: (c) Difficulty: (Easy) Page: 1466.Which of the following represents an application of secondary data?

a. predicting broad changes in culture

b. selecting a street location for a new carwash

c. economic trends forecasting

d. corporate intelligence

e. All of the above are applications of secondary data.Answer: (e) Difficulty: (Moderate) Page: 146

7. Which marketing research company maintains a Web site, SecondaryData.com, that is devoted totally to secondary information sources?

a. Secondary Resources, Inc.

b. Decision Analyst, Inc.

c. Second Hand Helper Corp.

d. LOOK-IT-UP. COM

e. Dewey, Cheatam & Howe

Answer: (b) Difficulty: (Difficult) Page: 146

8. A great deal of secondary data are available to marketers to aid them in understanding the lifestyles and purchasing habits of demographic groups such as:

a. Baby Boomers and Gen Ms

b. Boomers and Oklahomans

c. Baby Boomers and Gen Qs

d. Boomers and Sooners

e. Baby Boomers and Gen Yers

Answer: (e) Difficulty: (Difficult) Page: 147

9. Which of the following would be classified as a part of internal secondary data?

a. online information database

b. internal database

c. demographic data within a company's target market

d. any government data

e. data within libraries

Answer: (b) Difficulty: (Moderate) Page: 14810. Which of the following best represents a field within a database?

a. anything outside the company laboratory

b. a database record

c. customer names within a record

d. records within customer names

e. a data mineAnswer: (c) Difficulty: (Difficult) Page: 14911. Which of the following best describes CRM?

a. Certificate for Record Management; awarded by the MRA after passing certain record-keeping requirements.

b. Customer Relationship Management; the use of internal databases to strengthen customer relationships.

c. Certified Record Manager; awarded by the MRA for successfully passing a series of courses related to database management.

d. Customer Requirement Mandate; referring to customer requests that must be honored at all costs.

e. None of the above; there is no such thing as CRM.

Answer: (b) Difficulty: (Difficult) Page: 14912. Which of the following secondary data sources represent an ethical issue in terms of customer privacy issues?

a. published sources

b. fields

c. records

d. internal data bases

e. external data bases

Answer: (b) Difficulty: (Moderate) Page: 14913. External data may be grouped into which three sources?a. published, syndicated services data, and databases

b. published, nonpublished data, and other electronic sources

c. syndicated services data, external data, and complex data

d. fields, records, databasese. published, fields, CRMs

Answer: (a) Difficulty: (Moderate) Page: 14914. If you wanted to know where to look in order to find different types of other reference sources on a topic, you should use:

a. a reference guide

b. an index

c. a directoryd. a dictionary

e. a biographical sourceAnswer: (a) Difficulty: (Difficult) Page: 15115.If you wanted to locate periodicals on a subject you would find them in:

a. a browser

b. a library catalog

c. an index

d. an encyclopedia

e. a directory

Answer: (c) Difficulty: (Difficult) Page: 15116.Which of the following was NOT discussed as an advantage of using secondary data?

a. may be obtained quickly

b. may be obtained in any form desired by the researcher

c. it is relatively inexpensived. it is usually available

e. it may achieve the research objective

Answer: (b) Difficulty: (Moderate) Page: 15217Which of the following was NOT discussed as a disadvantage of using secondary data?

a. there is a mismatch of the units of measurement

b. differing classifications of the data in terms of what is available and what is needed

c. the data may be dated

d. data may be collected too quickly causing problems with the project schedule

e. reporting units are incompatible with research needs

Answer: (d) Difficulty: (Easy) Page: 15318.A boat manufacturer wishes to use secondary data to locate cities that may offer good market potential for their yachts. They need cities with average incomes exceeding $75,000. However, the secondary information source they find has the income category of $50,000 and over. This represents:

a. a mismatch of the units of measurement

b. differing class definitions of the data

c. dated data

d. data having high credibility

e. incompatible reporting units

Answer: (b) Difficulty: (Moderate) Page: 15419.Which of the following was NOT discussed as a method of evaluating secondary data?

a. What was the purpose of the study?

b. Who collected the information?

c. How readily available is the information to the public?

d. How consistent is the information with other information?

e. How was the information obtained?

Answer: (c) Difficulty: (Moderate) Page: 15420.In the textbook the authors discuss a book written by Cynthia Crossen entitled Tainted Truth: The Manipulation of Fact in America. The thesis of the book is:

a. Research is used to clarify untruths.

b. Research is not always objective and truthful.

c. Research firms can provide truth.

d. Americans want research results.

e. The FTC protects the public from manipulations of fact.

Answer: (b) Difficulty: (Difficult) Page: 156

21.When two or more secondary sources provide conflicting information, you should:

a. select the one source that has been in business the longest

b. evaluate the information from each source and select the source that best suits your needs for reliable and valid information

c. probably abandon the project if there is conflicting information; you will never have objective results upon which to base your decision

d. call the client/manager and ask which source is desired

e. report the discrepancies immediately to the two sources

Answer: (b) Difficulty: (Difficult) Page: 15722.The first step in conducting a search of secondary data sources is:

a. identify what you wish to know and what you already know about your topic

b. develop a list of key terms and names

c. begin with going through the Business Periodicals Index

d. call a trade association that best represents your topic/firm/industry

e. call key spokespersons in the industry that would most closely represent your subject

Answer: (a) Difficulty: (Moderate) Page: 15823. Having all books, magazine articles, manuals, and journal articles organized by topic in an electronic database may be found by finding the appropriate:

a. database called TOPICsearch Plus

b. Boolean logic

c. nesting formula

d. standard subject heading

e. secondary data research consultant

Answer: (d) Difficulty: (Difficult) Page: 15924. Which of the following best represents the hierarchy of organization for information databases?

a. databanks, databases, records, words, or fields

b. databases, databanks, records, fields, words, or numbers

c. records, databanks, databases, fields, words, or numbers

d. databanks, databases, records, fields, words, or numbers

e. fields, words or numbers, text in the fields, databanks, or databases

Answer: (d) Difficulty: (Difficult) Page: 16225. Which of the following best represents the operators of Boolean logic?

a. AND, OR, and NOT

b. real ADJ estate or Bill NEAR Gates

c. forecast?

d. SSH

e. None of the above represents Boolean operators.

Answer: (a) Difficulty: (Moderate) Page: 16226. Which of the following best represents proximity operators?

a. AND, OR, and NOT

b. real ADJ estate or Bill NEAR Gates

c. forecast?

d. SSH

e. None of the above represents proximity operators.

Answer: (b) Difficulty: (Moderate) Pages: 16216327. Which of the following best illustrates the concept of "limiting" in searching databases for secondary information?

a. asking for a standard subject heading

b. asking for all cases where U.S. is adjacent to PRESIDENT

c. asking for all records that have dates from 2005 to the present

d. asking for all cases that have any ending to the root word STOCK

e. asking for a search in the author field

Answer: (c) Difficulty: (Difficult) Page: 163

28. Which of the following secondary information sources provides a baseline of data every 10 years?a. baseline reports

b. NAICS (decade report)

c. census of the population

d. Survey of Buying Power

e. Decennial Marketing Research Handbook

Answer: (c) Difficulty: (Easy) Page: 16529.Information published by the U.S. government may be found in:

a. The U.S. census

b. The Government Printing Office (GPO)

c. The Handbook of Government Publications

d. The U.S. Statistical Abstract

e. Census.gov

Answer: (b) Difficulty: (Difficult) Page: 16630. Which of the following is replacing the SIC?

a. NAFTA

b. NAICS

c. SIC2005

d. NACIS

e. SECDAT

Answer: (b) Difficulty: (Moderate) Page: 16631.One of the advantages of the system replacing the SIC is that:

a. the system will be less expensive to users

b. the system will cover the United States, Canada, and Mexico

c. the system will be available on CD-ROM

d. publication of the system will be outsourced to private industry

e. the system will use a simpler three-digit code instead of the more complex four-digit system

Answer: (b) Difficulty: (Difficult) Page: 16732.The system replacing the SIC will:

a. provide for 20 broad classifications instead of the SIC's 11

b. provide industries to be classified by six- digit codes instead of the SIC's fourc. provide additional classifications to existing classifications such as eating and drinking places

d. provide for "new" industries such as high tech and services

e. All of the above

Answer: (e) Difficulty: (Difficult) Page: 16733.Which of the following publishes the Survey of Buying Power?

a. The Buying Power Index

b. Sales & Marketing Management Magazine

c. Survey of Buying Power Management Journal

d. LexisNexis

e. The Government Printing Office (GPO)

Answer: (b) Difficulty: (Difficult) Page: 16834.In the Survey of Buying Power, EBI stands for:

a. Exclusive Buying Index (for higher priced goods)

b. Electronic Buying Index (for electronic goods and services)

c. Effective Buying Income

d. Essential Buying Income

e. Electronic Business Index

Answer: (c) Difficulty: (Moderate) Page: 16835. Which of the following is an advantage of using the Survey of Buying Power?

a. It provides updated demographic data each year.

b. EBI is reported in only three categories making it easy to use.

c. BPI is a general index for the entire population making it useful no matter what the product or service may be.

d. The SBP is available in print only, but it is available once a week and it is free of charge.

e. The SBP is not available in print but may be accessed quarterly online.

Answer: (a) Difficulty: (Difficult) Page: 16836.Which information source overcomes some of the disadvantages of the Survey of Buying Power?

a. Survey of Buying Power II

b. Survey of Buying Power Plus

c. Demographics USA

d. Life Style Market Analyst e. MetaSBP

Answer: (c) Difficulty: (Difficult) Page: 16937. Which of the following has special indexes such as an index measuring total business buying power, high-tech buying power, and manufacturing BPI?

a. Survey of Buying Power II

b. Survey of Buying Power Plus

c. Life Style Market Analysisd. Market Index Reporter

e. Demographics USAAnswer: (e) Difficulty: (Difficult) Page: 16938. If a person wanted to use a buying power index to help locate dealerships for a new luxury car, he/she would use:

a. a customized BPI

b. the BPI Luxury Automobile Market survey

c. the Life Style Analyst BPI, Luxury Cars

d. DemosAutos

e. You cannot use a buying power index for automobiles.

Answer: (a) Difficulty: (Difficult) Page: 16939.Which one of the following secondary information sources would give you information on demographics of bicyclists, other activities bikers indulge in, which markets have the heaviest concentration of bikers, and which magazines bikers read?

a. NAICS

b. Lifestyle Market Analyst

c. Demographics, Bicycles USA

d. Cycling Today

e. the U.S. Census

Answer: (b) Difficulty: (Easy) Page: 170TRUE/FALSE QUESTIONS

40. Marketing researchers may find secondary data on their own, or they may buy it from sources such as MarketResearch.com.

Answer: (True) Difficulty: (Easy) Page: 14441.Secondary data refers to information that is developed or gathered by the researcher specifically for the research project at hand.

Answer: (False) Difficulty: (Easy) Page: 14642. Secondary data are gathered from a variety of sources such as warranty cards, boat registrations, car registrations, and so on.Answer: (True) Difficulty: (Easy) Page: 14643. Although there are many sources of secondary data, uses of secondary data are limited to only four, perhaps five applications at most.Answer: (False) Difficulty: (Easy) Page: 146

44. Access to secondary data that may be useful for marketing research purposes may be found at www.secondarydata.com.

Answer: (True) Difficulty: (Difficult) Page: 146

45. One application of secondary data is using it to study major demographic groups such as the Baby Boomers and Gen Yers.

Answer: (True) Difficulty: (Moderate) Page: 147

46. Internal secondary data refers to any information that is stored in the internal memory of a computer.

Answer: (False) Difficulty: (Easy) Page: 14847.A database refers to a collection of data and information describing items of interest and each unit of information in a database is called a record.

Answer: (True) Difficulty: (Moderate) Page: 14848. CRM stands for Custom Reporting Methods and refers to a standardized process secondary data firms report data.

Answer: (False) Difficulty: (Easy) Page: 149

49. Data mining is the name for software that is now available to help managers make sense out of seemingly senseless masses of information contained in databases.

Answer: (True) Difficulty: (Moderate) Page: 14950. External secondary data was classified in the textbook into three sources: published, nonpublished, and video.

Answer: (False) Difficulty: (Easy) Page: 14951.Syndicated sources of secondary data cover a variety of general topics of interest to the public and are widely available in libraries.

Answer: (False) Difficulty: (Moderate) Page: 15052.A catalog consists of a library's holdings of periodicals. Answer: (False) Difficulty: (Easy) Page: 15053. One of the advantages of using secondary data is that it may enhance primary data.

Answer: (True) Difficulty: (Moderate) Page: 15254.An example of a disadvantage of secondary data not being reported in measurement units that match the researchers needs would be income being reported before tax, household income instead of per capita, and after-tax income.

Answer: (True) Difficulty: (Easy) Page: 15355. Procter & Gamble, owning the major market share for disposable diapers, published a research report showing that cloth diapers were at least as harmful to the environment as disposable diapers. This example illustrates why it is important to evaluate all secondary research in terms of really understanding the true purpose of the research.

Answer: (True) Difficulty: (Moderate) Page: 15456. If two secondary sources of information report different information for what appears to be the same entity, a researcher should avoid using either information source at all costs.

Answer: (False) Difficulty: (Difficult) Page: 15757. Information searching skills can be greatly improved by finding standard subject headings.

Answer: (True) Difficulty: (Moderate) Page: 15958. Use of the terms AND, OR, and NOT in an online search illustrate the use of "field searching."Answer: (False) Difficulty: (Moderate) Page: 16259. Census of the population data serve as a baseline for much marketing information that is produced during the "in-between" census years.

Answer: (True) Difficulty: (Easy) Page: 16560.A great deal of "census" information is actually based upon statistical sampling.Answer: (True) Difficulty: (Difficult) Page: 16661.NAICS is not really a source of information in and of itself; rather, it is a coding system that may be used to access information.

Answer: (True) Difficulty: (Easy) Page: 16662.NAICS stands for Northern Alliance of Information Compiled Sources.

Answer: (False) Difficulty: (Moderate) Page: 16663.Within the Survey of Buying Power, EBI is defined as Elongated Billing Index.

Answer: (False) Difficulty: (Easy) Page: 16864.The factors comprising the Buying Power Index are those that make up a market; that is, people (measured by population), ability to buy (measured by EBI), and willingness to buy (past retail sales is used as a surrogate measure of what people are willing to buy in the future).

Answer: (True) Difficulty: (Moderate) Page: 16865. One of the disadvantages of the Survey of Buying Power is that the Elongated Billing Index (EBI) is actually calculated during a very short time period.

Answer: (False) Difficulty: (Easy) Page: 16866.Demographics USA provides several market indexes including a Total Business BPI, Hi-Tech Buying Power Index, Manufacturing BPI, and so on.

Answer: (True) Difficulty: (Difficult) Page: 16967.Although the Survey of Buying Power's BPI is for "general retail products," Demographics USA publishes indexes for economy-priced, moderately-priced, and premium-priced products.

Answer: (True) Difficulty: (Difficult) Page: 16968.A secondary data source, Lifestyle Market Analyst, analyzes several dozen lifestyle categories such as "Avid Book Readers," "Cat Owners," "Have Grandchildren," "Own Camcorder," and "Shop by Catalog/Mail."Answer: (True) Difficulty: (Easy) Page: 176

APPLICATION QUESTIONS

69. Hartsfield Software has developed a new program to help CPAs set up an automated billing system for their clients. They are considering a direct mail campaign to contact and inform CPAs about the merits of their new software program. They need a list of CPAs for every state in the United States. What type of secondary data source should Hartsfield seek?

a. dictionaries

b. encyclopedias

c. indexes and abstracts

d. directories

e. legal sources

Answer: (d) Difficulty: (Difficult) Page: 151

70. Judy Mancuso is interested in opening a health and fitness center. Being a fitness enthusiast for many years she is knowledgeable of many of the programs designed to shape and trim one's figure. However, she needs information on the business aspects of a health and fitness center. She goes to the local library and uses their computerized search system. Using a keyword search, Judy tries "health," "fitness," and finally "health and fitness." At first she is excited because her searches generate so many "hits." But, she soon learns that more than 50,000 hits is not good. Although there may be some good information available in the sources found, she soon learns that many of the "hits" don't really have much to do with her topic. Which of the following should Judy try to find on her subject?a. a library consultant specializing in business aspects of health and fitness

b. a truncated search

c. a search limiting all records found to the last three years

d. she should add the keyword "business"e. a standard subject heading

Answer: (e) Difficulty: (Difficult) Page: 159

71. Walt Lewis was interested in knowing how best to allocate territories in Texas to the new, 10 member sales force he had hired. While the sales force was undergoing training, Walt sought some secondary data that would help him allocate sets of counties to the salespersons. He knew he had to be equitable and felt strongly that each set of counties should have a market potential about equal to all the other sets. He needed some quantifiable measure of the market for each county, and he didn't want to use any Census2000 data because he felt like this was outdated. Which secondary data source should Walt use?a. County Maps International, Market Potential Edition

b. Statistical Abstract of the United Statesc. Information provided by each county's chamber of commerce

d. Survey of Buying Power

e. World Market PotentialsAnswer: (d) Difficulty: (Moderate) Page: 168

72. In the textbook chapter on secondary data, your authors report that MTV has reported that Baby Boomer parents have been influenced by their children and many are watching The Osbourne Family, reality TV show, together. This example was used in the book to illustrate:

a. how marketers focus on TV watching trends

b. how marketers, using secondary data, monitor TV viewing habits

c. how marketers, using secondary data, study the attitudes and behaviors of selected demographic groups such as Baby Boomers and Gen Yers

d. how firms such as MTV report unusual secondary data in order to get publicitye. why marketing research firms cannot stereotype demographic groups

Answer: (c) Difficulty: (Difficult) Page: 148

73. Mary Morgan is the owner of a chain of auto parts stores specializing in high-end, expensive, third market accessories and replacement parts for luxury cars. Her stores, for example, allow Lexus and Mercedes owners a choice of exotic seat covers including alligator and a very expensive synthetic product that resembles very soft suede leather and is impervious to stains or burns. She has been so successful that she is thinking about expanding throughout the country. She knows that the success of her expansion will depend largely on choosing the "right" markets. She knows that her target market makes in excess of $150,000 annual income, is between 35 and 60 years of age, and, of course, they own luxury cars. Which of the following methods would be appropriate for Mary to consider as a source of information?

a. Survey of Buying Power

b. directory of Automotive Expenditures by county

c. U.S. Statistical Abstract

d. a customized BPI

e. LifeStyle Market AnalystAnswer: (d) Difficulty: (Difficult) Page: 169

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