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Chapter 2: Data Mining Procedures and
Knowledge Systems
Test Bank
TRUE/FALSE
1. When the price of an airline ticket increases as more seats are sold, this is an example of
dynamic pricing.
ANS: T PTS: 1 DIF: Moderate REF: p. 27
OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Pricing| Blooms Comprehension
2. Data, information, and intelligence all have the potential to create value to the firm through
better decision making.
ANS: T PTS: 1 DIF: Moderate REF: p. 28
OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
3. Sensing systems can be used to monitor traffic flow through a mall parking lot.
ANS: T PTS: 1 DIF: Moderate REF: p. 28
OBJ: 02-1 NAT: AACSB Technology| CB&E Model Research| Blooms Comprehension
4. Data are a subset of market intelligence.
ANS: F
Market intelligence is the subset of data and information. There is more data then information,
and more information than intelligence.
PTS: 1 DIF: Moderate REF: p. 28 OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
5. Timely data are the most current data.
ANS: F
While the most current data are most likely the most timely and relevant, timely data can be
older as well. It just can’t be so old that they are not relevant.
PTS: 1 DIF: Hard REF: p. 30 OBJ: 02-2
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
6. One way to describe marketing research is to categorize it based on the four possible functions
it serves in business: foundational, testing, issues, and validation.
ANS: F
One way to describe marketing research is to categorize it based on the four possible functions it
serves in business: foundational, testing, issues, and performance.
PTS: 1 DIF: Moderate REF: p. 31 OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
7. The purpose of a decision support system is to store data and transform data into information
that is easily accessible to marketing managers.
ANS: T PTS: 1 DIF: Moderate REF: p. 32
OBJ: 02-3 NAT: AACSB Technology| CB&E Model Research| Blooms Knowledge
8. The goal of a CRM system is to describe customer relationships so that managers can access
information themselves.
ANS: T PTS: 1 DIF: Moderate REF: p. 32
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
9. A data warehouse is the multitiered computer storehouse of current and historical data.
ANS: T PTS: 1 DIF: Moderate REF: p. 33
OBJ: 02-3 NAT: AACSB Technology| CB&E Model Research| Blooms Knowledge
10. Input data can come from internal sources of the organization, but not from external sources.
ANS: F
Input data come from both internal and external sources.
PTS: 1 DIF: Moderate REF: p. 33 OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
11. Proprietary marketing research is available to anyone via the Internet.
ANS: F
Proprietary marketing research is the gathering of new data to investigate specific problems and
is otherwise not available.
PTS: 1 DIF: Moderate REF: p. 34 OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
12. An organization’s salesforce frequently provides important marketing intelligence
information.
ANS: T PTS: 1 DIF: Moderate REF: p. 34
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
13. Global information systems allow management to track the whereabouts of delivery
personnel.
ANS: F
This describes global positioning satellite (GPS) systems.
PTS: 1 DIF: Moderate REF: p. 35 OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
14. Scanner data is collected when consumers check out at stores.
ANS: T PTS: 1 DIF: Moderate REF: p. 35
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
15. Web tracking is illegal.
ANS: F
Web tracking is a legal activity in which marketing researchers monitor trends and information
posted by consumers that pertains to the company’s brand or products.
PTS: 1 DIF: Hard REF: p. 35 OBJ: 02-3
NAT: AACSB Ethics| CB&E Model Research| Blooms Comprehension
16. Electronic data interchange (EDI) refers to linking computerized data sources to statistical
tools that can search for predictive relationships and trends which allow more accurate
predictions of consumers’ opinions and actions.
ANS: F
This describes predictive analytics. EDI systems integrate one company’s computer system
directly with another company’s system.
PTS: 1 DIF: Moderate REF: p. 37 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Research| Blooms Knowledge
17. Foxnews.com is an example of a content provider on the World Wide Web.
ANS: T PTS: 1 DIF: Hard REF: p. 38
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
18. Data and information can be delivered to consumers or other end users via either primary
technology or secondary technology.
ANS: F
Data and information can be delivered via either pull technology or push technology.
PTS: 1 DIF: Moderate REF: p. 40 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Research| Blooms Knowledge
19. Researchers use tracking analytics by taking information from consumers’ actual archived
behavior along with preference data to model sales levels that can be achieved.
ANS: F
Researchers use predictive analytics to perform this task.
PTS: 1 DIF: Hard REF: p. 41 OBJ: 02-4
NAT: AACSB Technology| CB&E Model Research| Blooms Comprehension
20. Types of databases include statistical databases, financial databases, and video databases.
ANS: T PTS: 1 DIF: Moderate REF: p. 36
OBJ: 02-5
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
MULTIPLE CHOICE
1. Facts or recorded measures of certain phenomena (things or events) are known as _____.
a. data
b. information
c. market intelligence
d. knowledge
ANS: A PTS: 1 DIF: Moderate REF: p. 28
OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
2. Which of the following is a subset of data and information that actually has some explanatory
power enabling effective decisions to be made?
a. knowledge
b. intellectual capital
c. market intelligence
d. decision support system
ANS: C PTS: 1 DIF: Moderate REF: p. 28
OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
3. Which of the following is a characteristic of valuable information?
a. global
b. completeness
c. objective
d. all of these choices
ANS: B PTS: 1 DIF: Hard REF: p. 28
OBJ: 02-2
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
4. The characteristic of data reflecting how pertinent these particular facts are to the situation at
hand is called ____.
a. relevance
b. timeliness
c. completeness
d. significance
ANS: A PTS: 1 DIF: Moderate REF: p. 29
OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
5. A researcher has assessed the reliability and validity of his data and is comfortable in thinking
the data accurately matches reality. Which characteristic of valuable information does this best
describe?
a. relevance
b. completeness
c. quality
d. timeliness
ANS: C PTS: 1 DIF: Hard REF: p. 29
OBJ: 02-2
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
6. Some experts claim that the life cycle of technology products is approximately 18 months,
meaning the industry changes that rapidly. This rate of change in environmental and competitive
factors is an example of _____.
a. entropy
b. history snuffing
c. timeliness
d. market dynamism
ANS: D PTS: 1 DIF: Hard REF: p. 30
OBJ: 02-2
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
7. Merck, a pharmaceutical company, places a tiny chip on drug packaging to track its product
from the manufacturing plant to the consumer to ensure the product flows through the proper
distribution channel and safety for consumers. The tiny chip is an application of which
technology?
a. RFID
b. smart technology
c. market dynamism
d. GPS
ANS: A PTS: 1 DIF: Hard REF: p. 30
OBJ: 02-2 NAT: AACSB Technology| CB&E Model Research| Blooms Application
8. Which technology works like a WiFi system communicating with specific devices within a
defined space like inside of a retail unit?
a. RFID
b. NFC
c. DDS
d. DIOD
ANS: B PTS: 1 DIF: Moderate REF: p. 31
OBJ: 02-2 NAT: AACSB Technology| CB&E Model Research| Blooms Knowledge
9. All of the following are functions supported by marketing research EXCEPT _____.
a. testing
b. foundational
c. compliance
d. performance
ANS: C PTS: 1 DIF: Hard REF: p. 31
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
10. Harold is conducting marketing research to determine what consumer segment his company
should serve with its services. Which function is this marketing research serving?
a. testing
b. issues
c. foundational
d. performance
ANS: C PTS: 1 DIF: Moderate REF: p. 32
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
11. A computer-based system that helps decision makers confront problems through direct
interaction with databases and systems is known as a(n) _____.
a. Internet
b. Intranet
c. decision support system (DSS)
d. global positioning satellite system
ANS: C PTS: 1 DIF: Moderate REF: p. 32
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
12. Which part of the decision support system addresses exchanges between the firm and its
customers?
a. customer relationship management (CRM) system
b. data warehouse
c. global information system (GIS)
d. intellectual capital system
ANS: A PTS: 1 DIF: Moderate REF: p. 32
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
13. An organization’s mailing list of current customers is an example of _____.
a. a cookie
b. software
c. a database
d. a hyperlink
ANS: C PTS: 1 DIF: Moderate REF: p. 33
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
14. Which of the following is a process that allows important day-to-day operational data to be
stored and organized for simplified access?
a. global information system
b. data warehousing
c. proprietary marketing research
d. keyword search
ANS: B PTS: 1 DIF: Moderate REF: p. 33
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
15. An organization’s inventory figures are a good example of:
a. cookies
b. internal records
c. external records
d. CRM
ANS: B PTS: 1 DIF: Moderate REF: p. 33
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
16. Who can provide data to a decision support system?
a. production managers
b. marketing researchers
c. accountants
d. all of these choices
ANS: D PTS: 1 DIF: Easy REF: p. 33
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Comprehension
17. Which source of input data is represented when a company conducts marketing research to
identify the characteristics of its customers?
a. internal records
b. proprietary marketing research
c. salesperson input
d. behavioral tracking
ANS: B PTS: 1 DIF: Hard REF: p. 34
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
18. Accumulated records resulting form point-of-sale data recordings are known as _____.
a. scanner data
b. multiple-source data
c. cookies
d. environmental scanning data
ANS: A PTS: 1 DIF: Moderate REF: p. 35
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
19. Which of the following is an example of behavioral tracking?
a. product sales histories
b. test market results
c. supermarket scanner data
d. survey findings
ANS: C PTS: 1 DIF: Moderate REF: p. 35
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
20. _____ is the bar-coded information that contains product information that can be read by
optical scanners.
a. RFID
b. NFC
c. CRM
d. UPC
ANS: D PTS: 1 DIF: Moderate REF: p. 35
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
21. Procter & Gamble regularly monitors trends and information posted about their products and
brands by consumers on several Web sites. Which source of data input does this represent?
a. scanner data
b. Internet records
c. behavioral tracking
d. Web tracking
ANS: D PTS: 1 DIF: Moderate REF: p. 35
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
22. LEXIS-NEXIS is a company that puts together consortia of data sources into packages that
are offered to municipal, corporate, and university libraries for a fee. LEXIS-NEXIS is an
example of a:
a. data compiler
b. data wholesaler
c. data warehouse
d. data miner
ANS: B PTS: 1 DIF: Hard REF: p. 36
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
23. CompuStat, which publishes financial data, such as income statements and balance sheets, is
an example of which type of database?
a. statistical database
b. financial database
c. video database
d. electronic interchange database
ANS: B PTS: 1 DIF: Moderate REF: p. 37
OBJ: 02-5
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
24. The type of exchange that occurs when one company’s computer system is integrated with
another companys’ system is called _____.
a. electronic data interchange (EDI)
b. radio frequency exchanged (RFE)
c. electronic synergy
d. realtime communication
ANS: A PTS: 1 DIF: Moderate REF: p. 37
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
25. When Wal-Mart transmits information electronically each day to Wrangler jeans about unit
sales of this product in its retail outlets so that Wrangler can replenish Wal-Mart’s inventory on
an as-needed basis, this is an example of _____.
a. cookies
b. EDI
c. the Internet
d. data transference
ANS: B PTS: 1 DIF: Hard REF: p. 37
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
26. Parties that furnish information on the World Wide Web are called _____.
a. browsers
b. content providers
c. search engines
d. Intranets
ANS: B PTS: 1 DIF: Moderate REF: p. 38
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
27. A Web site address that Web browsers recognize is called a(n) _____.
a. URL
b. EDI
c. DSS
d. UPC
ANS: A PTS: 1 DIF: Moderate REF: p. 38
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
28. Yahoo! and Google are examples of _____.
a. home pages
b. search engines
c. ISPs
d. CRMs
ANS: B PTS: 1 DIF: Moderate REF: p. 38
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
29. A(n) _____ searches through the Internet almost instantly looking for content containing
specific words.
a. environmental scan
b. history sniff
c. web crawl
d. keyword search
ANS: D PTS: 1 DIF: Easy REF: p. 39
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
30. Karl is searching “digital cameras” in Google to learn more about the brands available and
prices for each. Karl is performing a(n) _____.
a. predictive analysis
b. keyword search
c. environmental scan
d. history sniff
ANS: B PTS: 1 DIF: Moderate REF: p. 39
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
31. Melanie is using the Internet to gather information designed to detect changes in her
company’s external operating environment. What is Melanie performing?
a. environmental scanning
b. behavioral tracking
c. search engine marketing
d. electronic data interchange
ANS: A PTS: 1 DIF: Hard REF: p. 39
OBJ: 02-3
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
32. In which type of technology does the consumer request information from a Web page and the
browser then determines a response?
a. Intranet
b. push technology
c. pull technology
d. interactive technology
ANS: C PTS: 1 DIF: Moderate REF: p. 40
OBJ: 20-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
33. When amazon.com recommends books for purchase when a customer who has ordered books
from Amazon previously returns to the site, this is an example of _____.
a. push technology
b. electronic data interchange
c. pull technology
d. a URL
ANS: A PTS: 1 DIF: Hard REF: p. 40
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
34. When an Internet user sets up his computer so that it will send him regular news about his
favorite professional football team, this is an example of the application of _____.
a. predictive analysis
b. pull technology
c. smart agent software
d. open data partnership
ANS: C PTS: 1 DIF: Hard REF: p. 40
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
35. When you visit Web sites, most likely a small computer file that records your Web usage
history is created. This small computer file is called a(n) _____.
a. electronic data exchange
b. cookie
c. URL
d. Intranet
ANS: B PTS: 1 DIF: Hard REF: p. 40
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
36. Most companies use a private data network that uses Internet standards and technology but
only allows those individuals whom the organization deems as appropriate participants to access
data. This is an example of a(n) _____.
a. Intranet
b. smart network
c. internal source
d. content provider
ANS: A PTS: 1 DIF: Moderate REF: p. 40
OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
37. Talbot’s, a women’s clothing retailer, sent Laurie an email notifying her of one the sweaters
they are offering this year in a style and color she had searched for on its Web site during last
season’s clearance sale but was unable to purchase in her size. Talbot’s was linking
computerized data sources to statistical tools to search for predictive relationships to enable more
effective marketing communications, which is an example of:
a. electronic data interchange
b. Web tracking
c. pull technology
d. predictive analytics
ANS: D PTS: 1 DIF: Hard REF: p. 41
OBJ: 02-4
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
38. Amie has an app on her iPhone that allows her to check in with her friends when she goes
out. Her friends see this information on her Facebook page and on their phones. This type of
technology is a(n) _____.
a. interpersonal technology
b. RFID
c. near field communication (NFC) technology
d. geolocation technology
ANS: D PTS: 1 DIF: Hard REF: p. 41
OBJ: 02-6
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
39. The Federal Trade Commission is concerned over consumers’ privacy after learning that
behavioral tracking companies can covertly discover and record the websites that consumers
visit. This activity is called _____.
a. history sniffing
b. scraping
c. phishing
d. predictive analytics
ANS: A PTS: 1 DIF: Hard REF: p. 41
OBJ: 02-6
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
40. One way to address ethical issues related to data technology is by using a(n) _____, which
gives consumers access to the information collected from their Web behavior and even provides
them an opportunity to edit the information.
a. electronic data interchange
b. predictive analytic
c. pull technology
d. open data partnership
ANS: D PTS: 1 DIF: Moderate REF: p. 42
OBJ: 02-6
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
COMPLETION
1. In information technology, _____ is data formatted (structured) to support decision-making or
define the relationship between two facts.
ANS: information
PTS: 1 DIF: Moderate REF: p. 28 OBJ: 02-1
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
2. When a marketing manager has sufficient information to make a good decision, the
information is said to be ______.
ANS: complete
PTS: 1 DIF: Moderate REF: p. 29 OBJ: 02-2
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
3. A computer-based system that helps marketing managers to solve problems through
interaction with databases is known as a ______.
ANS:
decision support system (DSS)
decision support system
DSS
PTS: 1 DIF: Moderate REF: p. 32 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
4. A decision support system that gathers information about customers such as sales history and
customer preferences is known as a(n) _____ system.
ANS:
customer-relationship management (CRM)
customer-relationship management
CRM
PTS: 1 DIF: Moderate REF: p. 32 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
5. Numerical, text, voice, and image data that enter a decision support system are known as
______.
ANS: input
PTS: 1 DIF: Moderate REF: p. 33 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
6. _____ data refers to the accumulated records resulting from point of sale data recordings.
ANS: Scanner
PTS: 1 DIF: Moderate REF: p. 35 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
7. A(n) _____ occurs when one company’s computer system is integrated with another
company’s computer system.
ANS:
electronic data interchange (EDI)
electronic data interchange
EDI
PTS: 1 DIF: Moderate REF: p. 37 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
8. _____ information is a term that captures structured data openly shared between companies.
ANS: Open source
PTS: 1 DIF: Moderate REF: p. 38 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
9. Parties that furnish information on the World Wide Web are called _____.
ANS: content providers
PTS: 1 DIF: Moderate REF: p. 38 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
10. A Web site address that Web browsers recognize is called a(n) _____.
ANS:
Uniform Resource Locator (URL)
Uniform Resource Locator
URL
PTS: 1 DIF: Moderate REF: p. 38 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
11. ______ software is capable of learning an Internet user’s preferences and automatically
searching out information and distributing the information to a user’s computer.
ANS: Smart agent
PTS: 1 DIF: Moderate REF: p. 40 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
12. A company’s private computer network that uses Internet standard but which is accessible
only by its own employees is known as a(n) ______.
ANS: Intranet
PTS: 1 DIF: Moderate REF: p. 40 OBJ: 02-3
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
13. _____ refers to linking computerized data sources to statistical tools that can search for
predictive relationships and trends which allow more accurate prediction of consumers’ opinions
and actions.
ANS: Predictive analytics
PTS: 1 DIF: Moderate REF: p. 41 OBJ: 02-4
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
14. Foursquare allows users to check into bars, restaurants, or theaters through their mobile
phones so that others can know where the user is. This is an example of _____ technologies.
ANS: geolocation
PTS: 1 DIF: Hard REF: p. 41 OBJ: 02-6
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Application
15. ____ is a term for activities that covertly discover and record the websites that a consumer
visits.
ANS: History sniffing
PTS: 1 DIF: Moderate REF: p. 41 OBJ: 02-6
NAT: AACSB Technology| CB&E Model Online/Computer| Blooms Knowledge
ESSAY
1. Going from data to information to intelligence is like a funnel. Explain what that means.
ANS:
Data are simply facts or recorded measures of certain phenomena (things or events). Information
is data formatted (structured) to support decision making or define the relationship between two
facts. Market intelligence is the subset of data and information that actually has some
explanatory power enabling effective decisions to be made. So, there is more data than
information, and more information than intelligence.
PTS: 1 DIF: Hard REF: p. 28 OBJ: 02-1
NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension
2. A manager is considering purchasing data from an outside vendor to get a better understanding
of the target market for his firm’s services. What factors should the manager consider when
evaluating the data’s usefulness for his needs?
ANS:
The four characteristics that help determine how valuable data may be are:
Relevance – reflects how pertinent these particular facts are to the situation at hand. Relevant
data are facts about things that can be changed, and if they are changed, it will materially alter
the situation.
Completeness – refers to having the right amount of information.
Quality – reflects how accurately the gathered data actually match reality.
Timeliness – means the data are not so old that they are irrelevant.
PTS: 1 DIF: Hard REF: p. 29 OBJ: 02-2
NAT: AACSB Communication| CB&E Model Research| Blooms Application
3. Explain what a decision support system (DSS) is and how it helps marketing managers.
ANS:
A marketing decision support system (DSS) is a system that helps decision makers confront
problems through direct interaction with computerized databases and analytical software
programs. The purpose of a DSS is to store data and transform them into organized information
that is easily accessible to marketing managers. Doing so saves mangers time so that decisions
that might take days or even weeks otherwise can be made in minutes using a DSS. A DSS
requires both databases and software. Modern decision support systems greatly facilitate
customer relationship management (CRM), which is a system that is part of the DSS that address
exchanges between the firm and its customers.
PTS: 1 DIF: Moderate REF: p. 32 OBJ: 02-3
NAT: AACSB Communication| CB&E Model Online/Computer| Blooms Knowledge
4. Compare and contrast pull technology and push technology and describe and example of each.
ANS:
Data and information can be delivered to consumers or other end users via either pull technology
or push technology. Conventionally, pull technology refers to consumers requesting information
from a Web page and the browser then determines a response. Thus, the consumer is essentially
asking for the data. For example, the consumer visits a website seeking information. In this case,
it is said to be pulled through the channel. The opposite of pull is push. Push technology sends
data to a user’s computer without a request being made. In other words, software is used to guess
what information might be interesting to consumers based on the patterns of previous responses.
Push technology allows personalized information to be delivered to consumers without the need
for them to even be physically at their Internet device. For example, readers can set up personal
home pages at the Wall Street Journal’s website that allows them to set up what information they
want to appear on the page (e.g., stock information; media information, etc.).
PTS: 1 DIF: Moderate REF: p. 40 OBJ: 02-3
NAT: AACSB Communication| CB&E Model Online/Computer| Blooms Knowledge
5. Define predictive analytics and discuss a marketing researcher’s job in predictive analytics.
ANS:
Broadly speaking, predictive analytics refers to linking computerized data sources to statistical
tools that can search for predictive relationships and trends which allow more accurate prediction
of consumers’ opinions and actions. Software companies like SPSS and SAS offer products that
both look for data and then use statistical tools to reveal key predictive relationships. A
marketing researcher’s job in predictive analytics is twofold: (1) identify the key sources of
information that may create predictive intelligence and (2) use analytic tools to build predictive
models.
PTS: 1 DIF: Moderate REF: p. 41 OBJ: 02-4
NAT: AACSB Communication| CB&E Model Online/Computer| Blooms Knowledge
6. List the four factors to consider regarding the ethics of data gathered through technological
means.
ANS:
1. Has the consumer implicitly or explicitly consented to being traced?
2. Does the tracking behavior violate any explicit or implicit contracts or agreements?
3. Can researchers enable users to know what information is available to data miners?
4. Do the benefits to consumers from tracking their behavior balance out any potential invasion
of their privacy?
PTS: 1 DIF: Hard REF: p. 42 OBJ: 02-6
NAT: AACSB Communication| CB&E Model Online/Computer| Blooms Comprehension
