SOLVED

51) Of the following, which is a potential disadvantage of using a simulated test market? A) It is limited to the types of marketing mixes that can be tested. B) It is often very time consuming. C) It is often too expensive. D) It lacks confidentiality. E) It is not as accurate as full-scale test markets. 52) Which of the following best illustrates what is meant by “lead country” test marketing? A) Countries should be used as test markets only when they are first (lead) in some demographic characteristic important to the product or service class. B) In situations where a firm wants to evaluate products in the most developed countries first because they are assumed to have the most buying power. C) In situations where the firm is interested in introducing its products and services globally and a single country is used as a test market because it is thought to be similar to the other neighbouring countries. D) In situations where there is dominant economic power of one country over those surrounding it. E) In situations where there is dominant political power of one country over those surrounding it. 53) Which of the following best represents the criteria discussed by the authors to be used in the selection of a test market city? A) representativeness, degree of isolation, and ability to control distribution and promotion B) representativeness, isolation, and cost C) representativeness, existing company presence, and control of promotion D) representativeness, cost, and control of competitor’s intelligence E) isolation, cost, and effectiveness 54) Which of the following best represents the disadvantages of conducting test markets as discussed in the textbook? A) cost, competitor intervention, and government regulations of test markets B) fallibility of results, cost, and exposure of product/service to competition and ethical issues C) cost, delay in getting to the market first, and competitive awareness of the product/service D) relying on consumers in only one market, using distributors who “know” there is a test, biased results arising from too much executive time being allocated to the test as opposed to normal market conditions E) Disadvantages were not discussed in the textbook. 55) Dirt Devil vacuum cleaning company is interested in knowing if a proposed advertising message will be effective in generating interest in purchasing their portable vacuum cleaner. They contact marketing research firm InsightExpress, which has a service that tests proposed ad copy with consumers they have recruited to participate. Copies of the ad are prepared and are shown to several hundred consumers online. Consumers evaluate the ad and the results are given to Dirt Devil. This is an example of which of the following? A) longitudinal research B) causal research C) experimental research D) exhaustive research E) cross-sectional research 56) Your university decides it will create a panel of consumers in your local area. The purpose of the panel is to report the local population’s attitudes, preferences, and intentions on a variety of local issues. In the first administration of the panel, the questions asked for voter preferences for an upcoming local election. In the second administration, questions submitted to the panel asked for their attitudes about the quality of the drinking water and air in your area. Which type of panel has your university created? A) continuous panel B) inquisitional panel C) discontinuous panel D) repeatability panel E) exploratory panel 57) Mack Trucks decides to conduct an experiment to determine if a new oil additive actually results in increased fuel efficiency. They find a lab that contains 50 engines that are exactly alike. Mack randomly divides the 50 engines into two groups?an experimental group (which has the new oil additive) and the control group (which does not have the new oil additive). They pour the exact same amount of fuel into all 50 engines and time how long each engine runs. Afterward, they average the length of time run by the 25 engines in the control group versus the 25 engines in the experimental group. Which of the following represents the experimental design in this study? A) XO1 B) (R)O1XO2 C) O1Â XO2 D) (R)O1XO2 58) Which of the following best describes the logic used in the Before-After with Control Group experimental design that allows this to be a true experimental design? A) The experimental group change (O2 – O1) contains the change in the independent variable due to a.) the dependent variable and b.) extraneous variables. When we subtract from this the control group (O4 – O3), which is the change due to the extraneous variables, we are left with the change due solely to the dependent variable. B) The experimental group change (O2 – O1) contains the change in the complex variable due to a.) the dependent variable and b.) extraneous variables. When we subtract from this the control group (O4 – O3), which is the change due to the extraneous variables, we are left with the change due solely to the complex variable. C) The experimental group change (O2 – O1) contains the change in the dependent variable due to a.) the dependent variable and b.) extraneous variables. When we subtract from this the control group (O4 – O3), which is the change due to the extraneous variables, we are left with the change in the dependent variable due solely to the independent variable. D) The control group change (O2 – O1) contains the change in the independent variable due to a.) the dependent variable and b.) extraneous variables. When we subtract from this the experimental group (O4 – O3), which is the change due to the extraneous variables, we are left with the change due solely to the dependent variable. E) The experimental group change (O2 – O1) contains the change in the dependent variable due to a.) the dependent variable and b.). ..extraneous variables. When we subtract from this the control group (O4 – O3), which is the change due to the extraneous variables, we are left with the change due solely to the dependent variable. 59) Cellular Inc. makes a major breakthrough in cell phone technology and design. Their research and development department has created advanced micro-circuitry that is one hundred times more sensitive to cell signals than conventional cell phones. This means that there is almost never a break in cell phone signals even when the caller is several miles from what would be considered “in range” for conventional phones. The problem is that the new technology adds about $100 to the cost of the phone. Cellular Inc. must spend a considerable amount of funds to retool in order to produce the new phones. They decide to test market the new phones. The company is located in Toronto and several executives believe it would be less costly to run the test market in their own city. However, one of the marketing managers has argued for running at least two test markets; one in Guelph, Ontario and one in Red Deer, Alberta. What criterion for test market selection is the marketing manager using? A) representativeness B) degree of isolation C) control over media D) control over distribution E) lower costs 60) Which of the following is not a disadvantage of conducting test marketing? A) Sabotage caused by competitors B) Cost C) Provision of information prior to going full-scale D) Results leading to incorrect decisions E) Exposure of potential plans to competitors