QUESTION 1

One major difference between lab purchase experiments andsimulated purchase experiments is that participants only simulatethe choice decision to purchase a product and so do not keep theirchoices in a simulation. Simulated purchase experiments are a goodway to gain quick and low-cost information on buying behaviors butare often prone to bias.

True

False

1 points   

QUESTION 2

Actual purchase studies measure behavior, whilepreference-intention studies measure the intended choices thatpeople claim they would make in a typical purchasing scenario.Preference-intention studies are generally more desirable but isusually more expensive and time-consuming than actual purchasestudies.

True

False

1 points   

QUESTION 3

Controlled research produces more accurate estimates of theeffects of the controlled variables on price sensitivity but couldbe very expensive to implement. Experimentally controlled studiesof actual purchases may include in-store purchase experiments andlab purchase experiments. One benefit of lab purchase experimentsis the ability to control the experiment to draw inferences fromfewer purchases in less time compared to in-store experiment.

True

False

1 points   

QUESTION 4

Two reasons why companies prefer to measure preferences orintentions, rather than actual purchases include:

Survey data can be collected even before the product isdesigned

Purchase data costs less to collect than survey data

True

False

1 points   

QUESTION 5

Buy-response surveys provide more meaningful responses relatedto willingness to buy compared to direct questioning, both of whichare uncontrolled studies of preferences and intentions. This isbecause it is structured more like an actual purchase decisionrather than an open-ended question.

True

False

1 points   

QUESTION 6

Managers tend to form judgments about buyers based onqualitative observations then attempts to measure aspects of buyerbehavior using quantitative research techniques. Althoughmanagerial judgment is important in the price sensitivitymeasurement because it helps determine the focus of the researchand reduces random error and statistical problems, many companiesfail to use managerial input leading to disappointing pricesensitivity measurements.

True

False

1 points   

QUESTION 7

In-store or sophisticated lab purchase experiments should not bethe first choice for frequently purchased, low-cost productsbecause such products are bought by consumers who have low priceawareness and give the purchase decision little attention.

True

False

1 points   

QUESTION 8

Store scanner data can generate accurate sales and price dataand can be combined with panel data to track the demographicbehavioral characteristics of consumers. Panel data is collected bymarketing research companies from a sampling of households, whorecord brands purchased and prices or use special credit card totrack purchases. One main advantage is that panel data is veryrepresentative of the market as a whole and collects data oneveryone in the household.

True

False

1 points   

QUESTION 9

The simplest design for an in-store pricing experiment involvesmonitoring sales at the historical price to obtain a base level ofsales and then initiating a price change to see how sales changefrom the base level. By adding a control store to the process, theresearcher can identify any factors other than price that may causechanges in sales, such as other marketing variables.

True

False

1 points   

QUESTION 10

Trade-off analysis (also called "conjoint analysis") helps toidentify the differentiation value of specific product attributesand design products with attributes customers are more willing topay for. The researcher collects data by asking the respondent tomake choices between pairs of products or levels of attributes fora specific product. The researcher then computes the value attachedto each product attribute and predicts the prices the consumerwould purchase the product for in the marketplace. Of all methodsused to estimate price, conjoint analysis tends to provide the mostuseful information and strategy.

True

False

1 points   

QUESTION 11

In-depth interviews, typically used for controlled preferencesand intentions, involves one-on-one interviews with a consumer.They help researchers understand which product/service features andbenefits are important to consumers, assess monetary andpsychological value of those features and benefits, as well as thecustomer's willingness to pay.

True

False

1 points   

QUESTION 12

Linear regression analysis is usually involved in synthesizinghistorical data to obtain the relationship between price and sales.Regardless of how well an estimated equation fits past data, itsvalue in predicting the effect of future price changes is limitedto past behaviors and data.

True

False

1 points   

QUESTION 13

Online research is generally less expensive and much faster thantraditional research methods and tends to have better responserates. Online respondents are also representative of the entiremarket, allowing researchers to generalize their findings to thebroader target population.

True

False

1 points   

QUESTION 14

A product that exists in the market for a while would havehistorical data available, allowing managers the ability togenerate useful marketing decisions. Even if historical data hasrandom variations, they may still provide possible directionalrelationships between price, sales or other marketing variablesthat could be examined using other research techniques.

True

False

1 points   

QUESTION 15

There are several different ways to measure and estimate pricesensitivity and they vary in terms of advantages/disadvantages incost, accuracy, and applicability. As a result, it is recommendedthat managers use the technique that is cheapest, fastest or moreconvenient for a given situation.

True

False