Market Research Test Answer upwork

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:

1. i and ii only
2. i and iii only
3. ii and iv only
4. iii and iv 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:

1. W-test
2. X-test
3. Y-test
4. Z-test

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

1. 5
2. 5.5
3. 6
4. Impossible to tell

4. Which of the following types of companies would be LEAST interested in ‘coolhunting’ as a form of market research?
Answers:

1. A garment/fabric store
2. A supermarket
3. A store specializing in electronic gadgets
4. 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:

1. Unaided awareness
2. Aided awareness
3. Recognition
4. Preference

6. For what purpose is the ‘Schmidt-Hunter’ technique of meta-analysis used?
Answers:

1. To determine the reliability of data.
2. To combine the results of multiple studies.
3. To determine the validity of data.
4. To identify the optimal target market for a product.

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

1. 2
2. 3
3. 3.25
4. Impossible to tell

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:

1. 3%
2. 6%
3. 9%
4. Impossible to tell

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:

1. Monitoring the number of hits on the company web site
2. Counting the number of customers entering the company’s stores
3. Sales data from checkouts
4. Using a mystery shopper

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

1. 2.5
2. 3
3. 8
4. Impossible to tell

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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is true.

12. Which of the following best describes ‘secondary’ market research?
Answers:

1. Research that is designed to corroborate previous research
2. Market research that relates to other companies rather than end consumers
3. The collation of data that was previously gathered for different pieces of research
4. Research based on data that relates to consumers’ previous habits rather than their future intentions

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

1. Timeliness of response
2. Technical specifications of a product
3. Staff customer-service skills
4. Levels of hygiene

14. What is meant by the expression ‘Type II error’?
Answers:

1. An error caused by bias in responses
2. An error caused by non-representative character of a sample
3. The rejection of a true hypothesis
4. An error caused by too small a size of the sample to draw a meaningful conclusion

15. What does a correlation of ‘-1’ between two variables indicate?
Answers:

1. That there is a slight negative correlation between the variables.
2. That there is no correlation between the variables.
3. That there is a perfect negative correlation between the variables.
4. That the variables are independent.

16. Which of the following is NOT a characteristic of ‘covert observational’ market research?
Answers:

1. The activity is controlled and, therefore, yields consistent results.
2. The subjects’ approval need not be sought.
3. Results can be analyzed after the event.
4. Behavior is not affected by the researcher.

17. Which of the following is NOT a component of the ‘marketing research mix’?
Answers:

1. Purpose
2. Population
3. Product
4. Publication

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

1. Product
2. Promotion
3. Political
4. Pricing

19. Which of the following MUST be true for a market that is ‘price elastic’?
Answers:

1. A price cut causes total revenue to decrease.
2. A price increase causes total revenue to decrease.
3. A price cut causes the number of units sold to increase.
4. A price increase causes the number of units sold to increase.

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:

1. 5%
2. 15%
3. 20%
4. Impossible to tell

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:

1. Causal
2. Observational
3. Secondary
4. Qualitative

22. Which of the following is NOT an ‘experimental’ form of market research?
Answers:

1. Traffic audit
2. Pilot roll-out
3. Blind test
4. Extended user test

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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is true.

24. Which of the following is an example of a ‘closed’ question?
Answers:

1. “Why do you get up early in the morning?”
2. “Who is your favorite baseball player?”
3. “When shall we go to the restaurant?”
4. “Do you like Mozart?”

25. Which of the following situations would be LEAST likely to encourage a company to consider re-positioning itself?
Answers:

1. A pronounced change in the economic climate
2. A reduction in production costs
3. A sustained fall in sales
4. A large entrant to the market

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:

1. Golden handcuffs
2. Barriers to exit
3. Escape clauses
4. 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:

1. People’s behavior does not necessarily follow their stated intentions.
2. People do not consume as much of a product as they say they will.
3. People are, ultimately, less concerned about ethical issues than financial ones.
4. People will generally see through false claims.

28. Which of the following problems is caused by ‘collinearity’ within data?
Answers:

1. It exaggerates the potential market.
2. It causes less important factors to have a disproportionate influence on the outcome.
3. It prevents the analysis of pricing-related factors.
4. It makes it impossible to tell which of a number of factors caused a particular behavior.

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:

1. 12%
2. 23%
3. 36.5%
4. Impossible to tell

30. What is the ‘Fourt-Woodlock’ model used to make predictions?
Answers:

1. The sales breakdown of a product by different age groups
2. Product sales, based on the number of trial purchases converted into repeat purchases
3. Seasonal variation in demand for a product
4. Sales volumes at each stage of the product life-cycle

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:

1. The first and second quartiles
2. The second and third quartiles
3. The third and fourth quartiles
4. The first and fourth 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:

1. Eddington effect
2. Fowlds effect
3. Hawthorne effect
4. Norton effect

33. Market research can be used to characterize a particular market. Which of the following characterizes a ‘perfect’ market?
Answers:

1. High barriers to entry, many sellers
2. High barriers to entry, few sellers
3. Low barriers to entry, few sellers
4. Low barriers to entry, many 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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is true.

35. What does it mean to say that a test is “significant at the 2% level”?
Answers:

1. That 2% of the respondents agreed with the assertion.
2. That 98% of the respondents agreed with the assertion.
3. That 52% of the respondents agreed with the assertion.
4. That there is a 2% chance of a false-positive result.

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:

1. Elephant effect
2. Butterfly effect
3. Hummingbird effect
4. Grasshopper effect

37. Which of the following goals is most commonly associated with the use of ‘projective’ techniques in market research?
Answers:

1. To identify the target market for a product
2. To identify the best mediums in which to advertise a product
3. To identify how to increase market share
4. To identify the feelings associated with a brand

38. Which of the following is NOT a problem associated with postal surveys?
Answers:

1. Follow-up questions cannot be asked.
2. Respondents do not get time to consider responses.
3. Response rate is low.
4. 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:

1. Standard deviation
2. Correlation
3. Regression analysis
4. Median

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:

1. None of the above
2. i only
3. ii only
4. iii only

41. Which of the following best describes the phenomenon of ‘optimism bias’?
Answers:

1. The tendency to assume that things will work out well
2. The tendency to assume that things will work out badly
3. The overestimation of low-probability negative outcomes
4. The underestimation of low-probability positive outcomes

42. Which of the following is true of a market with a ‘zero-profit condition’?
Answers:

1. New companies are unlikely to enter because profit margins are low.
2. Only not-for-profit organizations are allowed.
3. New companies can easily enter the market, preventing those in the market from making high profits.
4. New entrants will make a profit only after having been several years in the market.

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

1. Validity
2. Reliability
3. Significance
4. Generalizability

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:

1. None of the above
2. i only
3. ii only
4. iii only

45. Which of the following best characterizes face-to-face surveys relative to other types of surveys?
Answers:

1. Low response rate, low cost
2. Low response rate, high cost
3. High response rate, low cost
4. High response rate, high cost

46. Which of the following is NOT a function performed by the ‘management information’ system?
Answers:

1. Data gathering and data processing
2. The formulation of hypotheses
3. The dissemination of information to marketing managers
4. Storage and retention of data

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:

1. i and ii
2. i and iii
3. ii and iii
4. All of the above

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

1. Taylor’s exchange theorem
2. Harvey’s spread algorithm
3. Bass diffusion model
4. Young’s flow diagram

49. To what end do market researchers use ‘choice modeling’?
Answers:

1. To determine the best wording of questions in surveys
2. To make predictions about human decision making behavior
3. To test possible marketing material on consumers
4. To optimize product placement

50. Which of the following best defines the term ‘Market Segmentation’?
Answers:

1. The grouping of consumers on the basis of similar needs
2. The division of staff into sales teams along geographical lines
3. The categorization of people by the volume of consumption
4. The preparation of the marketing campaign for the target market

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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is 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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. 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:

1. To ensure that the sample was representative
2. To be able to compare the responses of different types of people
3. To check that the researchers had not faked the data
4. To help identify the target audience for a product

54. What does the ‘Dirichlet model’ seek to describe?
Answers:

1. The product life-cycle
2. The relationship between marketing and sales
3. The effect of elasticity of demand on revenue
4. Brand loyalty and repeat purchases

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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is true.

56. Which of the following best describes ‘syndicated’ market research?
Answers:

1. Research based on data generated to meet a specific client’s requirements
2. Research based on data gathered in response to a national Government’s requirements
3. Research that is conducted to be sold to multiple clients
4. Research outsourced by an organization to a dedicated market-research company

57. Which of the following best describes the technique of ‘A/B testing’ (or ‘split testing’)?
Answers:

1. Using multiple versions of advertising materials to determine which is most effective
2. Asking consumers to compare two products in a blind test
3. Testing a product on two distinct groups of consumers
4. Seeking feedback from the same consumers twice with a set interval between

58. Which of the following survey questions would be most likely to yield unbiased responses?
Answers:

1. “Isn’t it a bad idea to raise taxes?”
2. “It’s a bad idea to raise taxes, isn’t it?”
3. “Lots of people are struggling to make ends meet. Do you think taxes should have been raised?”
4. “What do you think of the decision to raise taxes?”

59. What is meant by the term ‘hypothesis’?
Answers:

1. A situation that is not real
2. An assertion to be tested
3. An option in a multiple-choice question
4. A sub-group of respondents

60. Which of the following is NOT an example of ‘observational’ market research?
Answers:

1. The use of electronic checkout scanners to record purchase behavior
2. Monitoring which television channel is being watched
3. Analyzing people’s web-browsing history
4. 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:

1. The Delphi method
2. The Athens method
3. The Apollo method
4. The Oracle method

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

1. 4
2. 4.5
3. 6
4. Impossible to tell

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

1. 2.5
2. 2.75
3. 2.875
4. Impossible to tell

64. Which of the following best describes the market research related term ‘sugging’?
Answers:

1. Seeking funds by pretending to be a research organization
2. Manipulating statistics to produce a favorable result
3. Exploiting market research conducted by other organizations
4. Using market research as a cover for generating business

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

1. Using an on-line research community
2. Using a mystery shopper
3. Using a focus group
4. A survey using the Likert scale

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:

1. Comparison with past examples to predict likely outcomes
2. Considering multiple possible situations so that the organization can respond to a range of eventualities
3. Concentrating on the highest-probability outcome so a detailed contingency plan is in place
4. Conducting computerized simulations to model future situations

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:

1. Brand analysis
2. Force-field analysis
3. Product placement
4. Perceptual mapping

68. Which of the following does NOT feature in Porter’s ‘five forces analysis’?
Answers:

1. Bargaining power of the suppliers
2. Bargaining power of the customers
3. Threat of international competition
4. Competitive rivalry within an industry

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

1. Whether to expand the workforce
2. Whether to purchase a new plant
3. How much to pay to the staff
4. How much raw material to buy

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

1. Causality
2. Econometrics
3. Demographics
4. 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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is 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:

1. Multiple forecasting
2. Conjoint forecasting
3. Ensemble forecasting
4. Combined forecasting

73. How many levels are usually there on a Likert scale?
Answers:

1. 8-9
2. 6-7
3. 5-7
4. 2-3

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:

1. Both (i) and (ii) are true.
2. Only (i) is true.
3. Only (ii) is true.
4. Neither is true.

75. Which of the following best describes the purpose of ‘Ad Tracking’?
Answers:

1. To calculate the cost of a marketing campaign
2. Advanced engagement with consumers to confirm that an advertisement will be popular
3. To verify that the design process for an advertisement follows the required steps
4. To check the effectiveness of marketing activities

76. To what end is ‘conjoint analysis’ used?
Answers:

1. To assess the relative importance of different product features
2. To calculate the likely impact of external factors on demand
3. To determine the most effective marketing medium for a product
4. To compare a product with that of a competitor

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:

1. i and ii only
2. i and iii only
3. ii and iv only
4. iii 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:

1. Quota sampling
2. Simple random sampling
3. Systematic sampling
4. Probability sampling