Chapter 1 The Role of Business Research.

Chapter 1

The Role of Business Research

True-False Questions

F 1. Total quality management applies primarily to the marketing function of an

10 organization.

F 2. Business research provides quantitative, but not qualitative, information upon which to
8 base decisions.

F 3. Business research should be a substitute for managerial judgment, and not merely an
7 aid to this judgment.

T 4. Business research is a managerial tool that provides information essential for good
6 decision making.

T 5. The role of the business researcher is to be detached and impersonal concerning the
6 conduct of the research process.

T 6. Applying business research is an art, not an exact science.

7

F 7. Basic research directly involves the solution to a specific business problem.

7

T 8. Implementing a total quality management program can require considerable

11 measurement.

F 9. When a decision must be made about a real-life business problem, this is called basic
7 research.

F 10. Findings from basic research can generally be immediately implemented.

7

F 11. Both basic and applied research are systematic and objective, but only basic research
7 utilizes the scientific method to answer the question at hand.
Chapter 1 The Role of Business Research. 2

T 12. In the scientific method, empirical evidence (such as the results of a survey) is
7 analyzed and interpreted to confirm or disprove prior conceptions.

F 13. Investigating whether or not a 10 percent reduction in price will increase the purchase
7 of a new toothpaste in a pump dispenser is an example of basic research.

T 14. Because both basic and applied research utilize the scientific method, the difference in
7 techniques of basic and applied research is largely a matter of degree, rather than
substance.

F 15. When the cost of research exceeds its benefits, the research should still be conducted if
13 the decision is a major organizational concern.

T 16. The task of business research is to specify and supply accurate information to reduce
8 the uncertainty of decision making.

F 17. While basic research applies the scientific method, applied research does not apply this
7 method.

T 18. The essence of business research is to fulfill the effective manager's needs for
6 knowledge of his or her environment.

F 19. We can define business research as "the application of surveys for aid in making
6 business decisions."

T 20. The General Accounting Office research to measure the success of a program such as
10 the Employment Opportunity Act would be categorized as evaluation research.

T 21. Research that regularly, sometimes routinely, provides feedback for evaluation and
10 control of recurring business activity is performance-monitoring research.

T 22. Sometimes the urgency of a situation precludes the use of research.

12

T 23. Being systematic and objective may require that researchers be patient and take several
6 careful looks at the data to discover all that is known about the subject of study.

F 24. The differences in the techniques of basic and applied research is more a difference of
7 substance than a difference of degree.

F 25. The scientific method is utilized by basic researchers, while those engaged in applied
7 research tend to favor the strategic management process.
Chapter 1 The Role of Business Research. 3

T 26. Business research can help managers to determine if a planned activity was executed
10 properly.

T 27. TQM focuses on integrating customer-driven quality decisions throughout the entire
10 organization.

F 28. In general, the more strategically important a business decision is to the organization,
12 the less likely it is that research will be conducted.

T 29. Business research may be used as a diagnostic tool to provide information about what
8 is happening in the environment.

F 30. TQM stands for "typical query management."

10

F 31. TQM stands for "total quantity measurement."

10

F 32. Business research should never be conducted after a failure, because it is pointless to
10 study strategies that did not work.

T 33. The objective of business research is to facilitate decision-making for all of the
5 functional areas of the organization.

F 34. After a business strategy has been implemented, business research is no longer needed.
11

T 35. After a business strategy has been implemented, business research may serve as a tool
11 to inform managers whether planned activities were properly executed.

F 36. If a company is well managed, performance-monitoring research becomes

10 unnecessary.
Chapter 1 The Role of Business Research. 4

Multiple Choice Questions

D 1. Which of the following should a manager ask before deciding whether or not to do
13 business research?
A. Will the information obtained improve the quality of the decision enough to
justify the costs?
B. Is this research project the best use of available funds?
C. Will the payoff from the research be worth the dollars invested?
D. All of the above

B 2. Based on an observation study, researchers at Steelcase concluded that:

3 A. most American employees prefer to stand up while working.
B. people in teams function best if they can do some work collaboratively and
some privately.
C. two-thirds of business travelers rate home and family life as their most
important motivator.
D. female executives are a growing market for travel services.

C 3. When the marketing department of an organization attempts to determine the amount

7 of time the managers in this department spend at their computers in their offices each
week, this is an example of which type of research?
A. Pure research
B. Basic research
C. Applied research
D. Causal research

D 4. Which of the following is involved in the decision-making process when an

8 organization attempts to develop and to implement a business strategy?
A. Selecting a course of action
B. Diagnosis of the situation
C. Identifying opportunities
D. All of the above

C 5. When Procter & Gamble continuously monitors supermarket sales of its products to
10 track its market share, this is an example of:
A. evaluation research.
B. TQM research.
C. performance-monitoring research.
D. intuitive research.
Chapter 1 The Role of Business Research. 5

D 6. The Steelcase research discussed in the text included all of the following EXCEPT:
3 A. video cameras.
B. observations of how work teams operate.
C. comparisons of collaborative and private work by team members.
D. using stop watches to evaluate workers' motions and patterns of behavior.

C 7. When deciding whether business research should be conducted, each of the following
12 factors is a major consideration EXCEPT:
A. time constraints.
B. availability of the data.
C. availability of company employees who are survey experts.
D. value of business research information in relation to its costs.

B 8. The formal, objective measurement and appraisal of the extent to which a given action,
10 activity, or program has achieved its objectives is called:
A. basic research.
B. evaluation research.
C. scientific research.
D. applied research.

B 9. Basic research is research that:

7 A. addresses simple issues that are basic and research is not really needed.
B. attempts to expand the limits of knowledge for a discipline.
C. is conducted to make a decision about a specific real life problem.
D. all of the above

C 10. Which statement best describes the nature of basic research?

7 A. Basic research requires the use of experimentation.
B. The primary purpose of basic research is to facilitate the managerial decision
process.
C. Basic research is conducted to verify the acceptability of a given theory.
D. Because basic research is exploratory, it does not require the use of scientific
methodology.

B 11. Business research is defined as the and process of generating information for
6 aid in business decision making.
A. regular, routine
B. systematic, objective
C. systematic, routine
D. systematic, statistical
Chapter 1 The Role of Business Research. 6

B 12. When Colgate-Palmolive Co. tracks the sale of its health and beauty aids in discount
10 stores by utilizing the information provided by scanners at the checkout lines, this is an
example of which type of research?
A. Basic research
B. Performance-monitoring research
C. Pure research
D. Intuitive research

B 13. The term research describes research that regularly, perhaps routinely, provides
10 feedback for evaluation and control of business activity.
A. decision support
B. performance-monitoring
C. causal
D. analysis

C 14. When United Airlines routinely samples flights and passengers to administer a survey
10 of its activities, this is an example of which type of research?
A. Intuitive research
B. Pure research
C. Performance-monitoring research
D. Basic research

C 15. When a marketing manager makes an important decision because there is not sufficient
12 time to conduct a research project, this is an example of:
A. a situation in which the value of the research exceeds its costs.
B. the nature of the type of decision (tactical or strategic) that must be made.
C. a time constraint.
D. the availability of data.

D 16. Which of the following is an example of a major topic for business research?
15 A. A buyer behavior research study
B. A job morale study
C. A market segmentation study
D. All of the above
Chapter 1 The Role of Business Research. 7

B 17. Which of the following statements does NOT accurately reflect how managers
12 determine if research is needed?
A. Research may not be conducted because of time constraints.
B. Major decisions should only be made after research is conducted.
C. Managers who possess adequate information do not need research to make the
decision.
D. Research should be conducted when the information gained by research
improves the quality of the decision to an extent large enough to warrant the
expenditure.

C 18. When Ford Motor Co. brings together representatives from R&D, Finance, Marketing,
14 Sales, and Marketing Research to work together on the design of a new type of
automobile, this is an example of the use of
A. basic research.
B. pure research.
C. cross-functional teams.
D. evaluation research.

A 19. Whether business research should be conducted is determined by each of the following
12 EXCEPT:
A. employees' attitudes toward the subject of the research.
B. time constraints.
C. the nature of the decision to be made.
D. the benefits of the research in relation to its costs.

D 20. Which of the following is a reason why business research information is a valuable
10 resource that contributes to effective decision making?
A. It describes what is occurring in the marketplace.
B. It may provide detailed information about specific mistakes or why failures
occurred.
C. It provides information to help managers learn about changing environments.
D. All of the above are reasons.

B 21. The relationship between business research and a manager's experience can best be
12 described as:
A. business research and managerial experience are incompatible.
B. sometimes managerial experience alone should be relied upon.
C. no decision should be reached without using business research.
D. there is no relationship between experience and business research.
Chapter 1 The Role of Business Research. 8

D 22. The primary function of business research is to:

6 A. provide the solution to a business problem.
B. attempt to predict future behavior.
C. identify personal needs.
D. provide information to assist managers in making decisions.

A 23. Select the best definition of business research.

6 A. A systematic and objective process of generating information for aid in
business decision making.
B. The collection and analysis of business data.
C. An operating department within the organizational structure.
D. Providing information that will be of use in identifying opportunities.

Fill in the Blank

1. Business research shows that employee satisfaction is strongly linked to

4 ______ satisfaction.

customer

2. Literally, "research" means to .

6
search again

3. The term refers to a business philosophy devoted to integrating customer-

10 driven quality throughout an organization.

total quality management

4. Scanning items' universal product code (UPC) labels to evaluate sales volume is an
10 example of .

performance-monitoring research

5. Business research is the systematic and objective process of , . and data for
6 aid in business decisions.

gathering, recording, analyzing

Chapter 1 The Role of Business Research. 9

6. Business research should be a(n) to managerial judgment, and not a substitute for
7 it.

aid

7. When a decision must be made about a specific real-life problem, research is

7 conducted.

applied

8. When we want to expand the limits of knowledge, without directly involving the
7 solution to any particular pragmatic problems, we would conduct research.

basic (pure)

9. If we want to do a formal, objective measurement and appraisal of the extent to which

10 a given activity or program has achieved its objectives, we conduct research.

evaluation

10. Teams which are made up of representatives from finance, accounting, sales, R&D,
14 and marketing research are an example of a ________ team

cross-functional

11. The term describes techniques or procedures used to analyze empirical

7 evidence in an attempt to confirm or disprove prior conceptions.

scientific method

12. The largest business research company in the world is ________.

16
A.C. Nielsen

13. A manager determining whether business research should be conducted must consider
12 four major factors: . (Answer could be several words).

time constraints; availability of data; nature of the decision to be made; benefits of the
research versus its costs
Chapter 1 The Role of Business Research. 10

14. Continuous improvement of product quality and service is an important principle of

10 .

total quality management

Chapter 3

Theory Building

True-False Questions
F 1. As a first step in applying the scientific method, we must state a hypothesis.
47

F 2. As a first step in applying the scientific method, we should explain what we have
48 learned during our research.

T 3. A hypothesis is a proposition that is empirically testable.

43

T 4. In most scientific situations, there are alternative theories to explain certain classes of
47 phenomena.

F 5. Prediction and forecasting are the two purposes of theory.

41

F 6. Deductive reasoning is the logical process of establishing a general proposition on the

47 basis of observation of particular facts.

T 7. Inductive reasoning is the logical process of establishing a general proposition on the

47 basis of observation of particular facts.

F 8. Inductive reasoning is the logical process of deriving a conclusion from a known

47 premise or something known to be true.

T 9. Propositions are statements concerned with relationships among concepts.

42
Chapter 1 The Role of Business Research. 11

T 10. A hypothesis is a proposition that is concerned with the relationship among variables.
43

T 11. The scientific method refers to techniques or procedures that are used to analyze
43 empirical evidence in an attempt to confirm or disprove prior conceptions.

T 12. Deductive reasoning is the logical process of deriving a conclusion from a known
47 premise or something known to be true.

F 13. Things are the essence of theory, not ideas.

42

F 14. Propositions are statements concerned with concepts described in isolation.

42

T 15. In management theory, "leadership," "productivity," and "morale" are concepts that
41 abstract reality.

T 16. The purpose of science is to expand knowledge and to discover truth.

40

T 17. Prediction and understanding are the two purposes of theory.

41

T 18. Theory development is essentially a process of describing and explaining phenomena

41 and relationships at increasingly higher levels of abstraction.

F 19. The process of empirical verification can be done separately from the process of theory
43 development.

T 20. A coherent set of general propositions is an essential aspect of the definition of theory.
43

F 21. Theory generation can occur at the conceptual level, but not at the empirical level.
47

T 22. At the conceptual level, theory can be developed using deductive reasoning.
47

Multiple Choice Questions

Chapter 1 The Role of Business Research. 12

D 1. A(n) is a proposition that is empirically testable.

43 A. ladder of abstraction
B. variable
C. concept
D. hypothesis

B 2. The idea that a theory is “empirically testable” means that it be verified by:
43 A. a computer.
B. observation and experiments.
C. Zen.
D. none of the above.

C 3. The text presents the following quote from the book Zen and the Art of Motorcycle
48 Maintenance: "In Part One of formal scientific method...the main skill is in stating
absolutely no more than you are positive you know." This describes which step in
applying the scientific method?
A. Analysis and evaluation of data
B. Providing explanation and stating new problems raised by the research
C. Assessment of relevant existing knowledge
D. Designing the research to test the hypothesis

C 4. The two purposes of theory are:

41 A. empirical testing and description.
B. description and prediction.
C. prediction and understanding.
D. understanding and testing.

A 5. Which of the following is NOT true about theories?

41 A. The main purpose of theory is description.
B. Concepts abstract reality.
C. Theories are used as principles of explanation of apparent relationships of
certain observed phenomena.
D. Theories, once verified, allow for prediction.

B 6. Which of the following is NOT a step involved in the application of the scientific
48 method?
A. Statement of hypotheses
B. Purchase of computer software to analyze data
C. Assessment of relevant existing knowledge
D. Analysis and evaluation of data
Chapter 1 The Role of Business Research. 13

B 7. A(n) is a coherent set of general propositions used as principles of explanation of

41 the apparent relationship of certain observed phenomena.
A. concept
B. theory
C. abstraction ladder
D. hypothesis

D 8. Deductive reasoning is:

47 A. the logical process of establishing a general proposition on the basis of
observation of particular facts.
B. the logical process of inducing individuals to reason.
C. the logical process of linking propositions via the ladder of abstraction.
D. the logical process of deriving a conclusion from a known premise or
something known to be true.

C 9. Consider the following two statements: (a) reinforcements will increase habit strength
43 and (b) bonus pay will be associated with sales volume consistently above the quota.
Statement (a) is a(n) and statement (b) is a(n) .
A. concept, proposition
B. concept, hypothesis
C. proposition, hypothesis
D. hypothesis, proposition

B 10. Consider this statement: "All Business Research students who have ever been seen are
47 human beings. Therefore, we conclude that all Business Research students are human
beings." This is an example of:
A. a variable.
B. inductive reasoning.
C. the ladder of abstraction.
D. deductive reasoning.

A 11. Inductive reasoning is:

47 A. the logical process of establishing a general proposition on the basis of
observation of particular facts.
B. the logical process of inducing individuals to reason.
C. the logical process of linking propositions via the ladder of abstraction.
D. the logical process of deriving a conclusion from a known premise or
something known to be true.
Chapter 1 The Role of Business Research. 14

D 12. Consider this statement: "All Business Research students are human beings. Sally
47 Jones is a Business Research student, therefore we conclude that Sally is a human
being." This is an example of:
A. a variable.
B. inductive reasoning.
C. the ladder of abstraction.
D. deductive reasoning.

Fill in the Blank

1. In comparing two theories, researchers gather empirical data in an attempt to ______

43 the theories.

verify

2. The term ________ means that something is verifiable by observation, experience, or

43 experimentation.

empirical

3. The logical process of deriving a conclusion from a known premise or something

47 known to be true is called .

deductive reasoning

4. The two purposes of theory are and .

41
prediction, understanding

5. The term refers to anything that may be measured.

43
variable

6. As it moves up the _____ _____ _____ , a basic concept becomes more abstract,
42 wider in scope, and less amenable to measurement. (Answer could be several words).

ladder of abstraction
Chapter 1 The Role of Business Research. 15

7. The logical process of establishing a general proposition on the basis of observation of

47 particular facts is called .

inductive reasoning

8. Only when we explain how concepts are related to other concepts can we begin to
42 construct ________.

theories

9. The term refers to statements concerned with the relationships among concepts.
42
propositions

10. A(n) is a generalized idea about a class of objects, attributes, occurrences, or

41 processes that has been given a name.

concept (construct)

11. A(n) is a proposition that is empirically testable.

43
hypothesis

12. A(n) is a coherent set of propositions used as principles of explanation of the

41 apparent relationships of certain observed phenomena.

theory

13. The refers to the level of knowledge reflecting that which is verifiable by
43 experience or observation.

empirical level

14. The is the use of a set of prescribed procedures for establishing and connecting
47 theoretical statements about events and for predicting events yet unknown.

scientific method
Chapter 1 The Role of Business Research. 16

Chapter 4

The Research Process: An Overview

True-False Questions

F 1. Since pilot studies involve informal data collection methods, they should not be used in
63 business research.

F 2. The most common method of generating secondary data is through surveys.

66

T 3. Inexperienced researchers often assume that a survey is the best research method,
69 because it is the technique with which they are most familiar.

F 4. The purpose of exploratory research is to provide conclusive evidence about a course

54 of action.

F 5. Descriptive research attempts to provide an explanation of the cause of the findings.

54

F 6. A written research report can be discarded after a study ends, because it has served its
73 purpose.

F 7. A diagnostic analysis provides evidence of a cause-and-effect relationship.

56

T 8. Generally when the researcher is totally unaware of the problem, he/she will conduct
62 exploratory research rather than descriptive or causal research.

T 9. The focus group interview is a type of pilot study.

63

F 10. The most common way to generate primary data is through personal interviews.
66

F 11. Because many business research problems are unique, there is usually a single,
69 standard, correct method of carrying out a piece of research.
Chapter 1 The Role of Business Research. 17

F 12. In data collection, a pretest means that a small sample of data is collected in order to
72 test the statistical data analysis procedures being used in the research.

T 13. If a consumer behavior theorist wishes to establish that attitude change causes behavior
56 change, one criterion that must be established is that attitude change precedes behavior
change.

F 14. When discussing the stages in the research process, the term forward linkage would be
59 appropriate if we believe problem definition will be influenced by our knowledge that
the data will be analyzed by computers.

T 15. Researchers who seek to determine the answers to "who," "what," "when," "where,"
54 and "how" questions will be conducting descriptive research.

F 16. Because the main goal of causal research is to identify cause-and-effect relationships, it
56 usually precedes exploratory or descriptive studies.

T 17. The main goal of causal research is to identify cause-and-effect relationships between
56 variables.

F 18. Experiments have the least potential to establish cause-and-effect relationships.

66

F 19. The major purpose of descriptive research, as the name implies, is to clarify the nature
54 of problems.

T 20. Business research needs clear objectives and definite research designs in order to be
65 conducted efficiently.

T 21. Exploratory studies are conducted to clarify the nature of problems.

54

F 22. The usual purpose of exploratory research is to provide conclusive evidence to

54 determine a particular course of action.

F 23. Exploratory research studies provide conclusive evidence to determine a particular

54 course of action.

F 24. "A problem well defined is a problem half solved," is an old adage not generally true in
60 the age of computers.
Chapter 1 The Role of Business Research. 18

F 25. The most important stage of the research process is processing and analyzing the data.
60

F 26. Classifying business research on the basis of the technique used to collect the data
65 would yield the following classifications: exploratory research, descriptive research,
and causal research.

F 27. The preliminary activities undertaken to define the problem into a researchable one
60 should always be formal and precise so that mistakes will not be made.

T 28. Having discussions on research with the members of the company's sales force may be
62 a valuable source of information for exploratory research.

F 29. Exploratory research is typically conducted near the later stages of the research
62 process.

F 30. Secondary data can seldom be gathered faster and at lower cost than primary data.
64

F 31. There is one standard design for exploratory research.

69

Multiple Choice Questions

B 1. A pilot study is:

64 A. an extremely rigorous research design involving formal methods for
collecting data.
B. a small-scale exploratory research technique that uses informal data collection
methods.
C. a good example of backward linkage.
D. always the best way to approach business research situations.

B 2. All of the following statements are true EXCEPT:

69 A. there is no one best research design for all situations.
B. observation studies are easy to administer and conduct.
C. one drawback of observation methods is that they cannot record respondents'
attitudes and opinions.
D. there are many different ways to collect data.
Chapter 1 The Role of Business Research. 19

B 3. The most difficult business decisions are those which are:

53 A. certain.
B. ambiguous.
C. causal.
D. descriptive.

D 4. If a researcher is attempting to show the relationship between a sales training program

66 and the subsequent change in sales performance, this is an example of:
A. a focus group.
B. a telephone interview.
C. an observation study.
D. an experiment.

D 5. Which of the following factors would most likely decrease the importance of
53 managerial experience and judgment relative to the use of business research in a given
situation?
A. Budget available for research
B. Need for a quick decision
C. Decision outcomes with high degrees of uncertainty
D. Routine repetitive decision problem

C 6. Which of the following statements about survey research is NOT true?

66 A. Gathers information from people by use of a questionnaire
B. Gathers primary data
C. Holds the greatest potential for establishing causal relationships
D. May be conducted using mail, personal interviews, or telephone

C 7. The four research design techniques for descriptive and causal research are:
65 A. focus groups, surveys, pilot studies, and experiments.
B. focus groups, surveys, experiments, and observation.
C. secondary data studies, surveys, experiments, and observation.
D. secondary data, focus groups, surveys, and experiments.

A 8. The textbook states that every decision-making situation can be classified on a

53 continuum containing three categories. These categories are
A. uncertainty, certainty, ambiguity.
B. total confusion, partial confusion, complete clarity.
C. incomplete certainty, certainty, ambivalence.
D. difficult, moderately difficult, easy.
Chapter 1 The Role of Business Research. 20

A 9. Relative to the decision-making process, at what point should business research enter
60 the process?
A. Problem discovery and definition
B. Alternative formulation
C. Evaluation of alternatives
D. Implementation

D 10. All of the following are stages in the research process, EXCEPT:
59 A. planning a sample.
B. defining the problem.
C. planning a research design.
D. conducting a telephone survey.

C 11. Which type of research study is attempting to answer the question: “Would members
62 of this target market be interested in purchasing this new type of product?”
A. Descriptive research
B. Causal research
C. Exploratory research
D. Definitive research

B 12. The main goal of causal research is:

56 A. to directly seek the solution to a particular, pragmatic problem.
B. to identify cause-and-effect relationships between variables.
C. to clarify the nature of problems.
D. to provide a conclusive statement about the characteristics of a particular
population or phenomenon.

B 13. Which of the following is not a stage in the research process?

59 A. Collecting the data
B. Solving the managerial problem
C. Defining the research problem
D. Formulating conclusions

B 14. Any procedure that uses a small number of items or people to make a conclusion
70 regarding a larger group known as the population is called:
A. statistics.
B. sampling.
C. surveying.
D. probability theory.
Chapter 1 The Role of Business Research. 21

A 15. Which of the following statements concerning research design is true?

65 A. Research design provides a framework that guides data collection and data
analysis.
B. Ideal research design is exactly determined by the research objectives.
C. Research design characteristics are indirectly determined by the information
needs of the decision maker.
D. All of the statements are true.

B 16. Checking the data collection forms for omissions, legibility, and consistency in
72 classification is referred to as:
A. auditing.
B. editing.
C. accuracy analysis.
D. coding.

A 17. Which of the following questions will NOT be answered by the sampling plan?
70 A. Why is the sample being selected?
B. Who is to be sampled?
C. How big should the sample be?
D. How are the sampling units to be selected?

C 18. If the research problem were defined as: "Which of two prices produce the most
56 sales?”, the most appropriate type of research would be:
A. exploratory.
B. descriptive.
C. causal.
D. associative.

B 19. If we want to clarify the nature of problems, we would conduct research.

54 A. clarification
B. exploratory
C. descriptive
D. causal

C 20. Which type of research study is attempting to answer the question: “Which of two
56 sales training programs is more effective?”
A. Exloratory
B. Descriptive
C. Causal
D. Mall-intercept
Chapter 1 The Role of Business Research. 22

C 21. If the research problem were defined as: "Will buyers purchase more of the product in
54 a red or blue colored package?", the most appropriate type of research would be:
A. exploratory.
B. descriptive.
C. causal.
D. associative.

B 22. To be most useful, how should research objectives be stated?

65 A. They should be stated as broadly as possible to permit flexibility in applying
the research.
B. They should be stated as precisely as possible to avoid misapplying the
research.
C. Usually it makes little difference whether they are broadly or precisely stated
as long as the objective is clear.
D. Most research does not need a stated objective because the nature of the
problem implies the objective.

C 23. A research design that merely records what occurs is a(n):

69 A. survey.
B. secondary data study.
C. observation study.
D. experiment.

C 24. What type of research study is being conducted when a researcher is attempting to
56 predict future sales on the basis of past sales trends?
A. Secondary data study
B. Exploratory
C. Causal
D. Descriptive

A 25. The appropriate research strategy to determine the demographic characteristics of

55 owners of Ford Explorer SUVs would be:
A. descriptive design.
B. exploratory design.
C. simulation.
D. field experiment.
Chapter 1 The Role of Business Research. 23

C 26. Research designs may be categorized according to their fundamental objective. Which
54 of the following are research design categories?
A. scientific, exploratory, descriptive
B. descriptive, research, experimental
C. descriptive, causal, exploratory
D. experimental, experience, exploratory
D 27. An exploratory research design would be LEAST likely to be used to:
55 A. create a more precise formulation of a problem.
B. clarify a basic concept.
C. increase familiarization with a problem.
D. describe the characteristics of a certain group.

D 28. Which of the following is designed to develop ideas and insights in decision-making
55 situations, especially when only limited knowledge is currently available?
A. Secondary research
B. Experimental research
C. Survey research
D. Exploratory research

D 29. Which of the following is NOT a common exploratory research design?

62 A. pilot study
B. experience survey
C. secondary data study
D. observation study

D 30. Which of the following statements concerning research design is TRUE?

65 A. There is a single, correct plan for every problem.
B. There are two basic types of research design: surveys and experiments.
C. Research design is costly to plan and implement and is often unnecessary.
D. It is a plan for the collection and analysis of data.

C 31. Which of the following statements concerning secondary data is FALSE?

64 A. Secondary data sources should be considered before primary data are
collected.
B. Internal secondary data are usually preferred to external secondary data.
C. Data needed to complete a research project are usually attainable as secondary
data.
D. Secondary data are available from commercial sources.
Chapter 1 The Role of Business Research. 24

D 32. Which of the following is an advantage of secondary data as compared with primary
64 data?
A. Obtainable from reliable suppliers
B. Usually less expensive
C. Usually available in less time
D. All of the above are advantages.

C 33. The number of automobiles that drive over a “counter cable” in the road near a
69 proposed site for a convenience store is an example of:
A. secondary data collection.
B. exploratory research.
C. an observation study.
D. an experiment.

Fill in the Blank

1. Every month the Bureau of Labor Statistics conducts a survey to obtain statistics on
55 unemployment and other labor issues. This is an example of research.

descriptive

2. After expanding a staff training program, a manager conducts a follow-up study to

56 compare the productivity of employees who have gone through the new program with
those who went through the old program. This is an example of research.

causal

3. The term implies that later stages of research will influence the design of earlier
59 stages.

backward linkage

4. A manager conducts a preliminary survey of employees to determine if they might be

55 interested in a company-sponsored child-care program. This is an example of
research.

exploratory

5. The term implies that earlier stages of research will influence the design of later
59 stages.

forward linkage
Chapter 1 The Role of Business Research. 25

6. A(n) is a sample in which every member of the population has a known,

71 nonzero probability of selection.

probability sample

7. In data processing, the rules for interpreting and categorizing and recording data are
72 known as ________.

codes

8. Data gathered and assembled specifically for the project at hand are data.
63
primary

9. The most common method of generating primary data is through .

66
surveys

10. Recording by mechanical counter the number of automobiles that pass a proposed site
69 for a gasoline station is a(n) study.

observation

11. A sample is a(n) from a larger population.

70
subset

12. Data previously collected and assembled for some project other than the one at hand
63 are data.

secondary

13. When a firm conducts research by discussing the general nature of a new product with
62 some of its key retailers and wholesalers, it is conducting a(n) ___ study.

exploratory
Chapter 1 The Role of Business Research. 26

14. The is a group dynamics session with six to ten people, loosely structured, and
62 based on the assumption that individuals are more willing to share their ideas as they
share in the ideas of others.

focus group

15. Every business problem can be classified on a continuum containing three categories:
53 _____ ______ ______ .

certainty, uncertainty, ambiguity

16. The use of “mystery shoppers” is an example of a(n) ________ type of research study.
69
observation

17. When management has discovered a general problem, but research is needed to gain a
54 better understanding of the dimensions of the problem, research is conducted.

exploratory

18. If we seek to determine the answers to "who," "what," "when," "where," and "how"
55 questions, we conduct research.

descriptive

19. The main goal of is to identify cause-and-effect relationships between

56 variables.

causal research

20. When managers are asked: “Why do you feel that way?”, this is a type of
56 organizational behavior study which is termed ________ ________.

diagnostic analysis

21. A(n) is a master plan specifying the methods and procedures for collecting and
65 analyzing the needed information.

research design
Chapter 1 The Role of Business Research. 27

22. Data processing generally begins with and of the data.

72
editing, coding

23. The application of logical reasoning to the understanding of data that have been
73 collected about a topic is called .

analysis

24. The design technique that holds the greatest potential for establishing cause-and-effect
66 relationships is .

experiments

25. The occurrence of two events that vary together is termed ________ variation.
57
concomitant