CPM Managing Information for Marketing Insights 3 — Questions and Answers
Question 1: Which stage of the marketing research process involves translating raw data into actionable recommendations for decision-makers?
- Research design
- Data collection
- Data analysis and interpretation (Correct answer)
- Problem definition
Correct answer: Data analysis and interpretation
Data analysis and interpretation converts raw data into meaningful patterns and recommendations that inform marketing decisions.
Question 2: A company segments its email list using RFM analysis. The three factors in RFM are:
- Reach, Frequency, and Message
- Recency, Frequency, and Monetary value (Correct answer)
- Revenue, Funnel stage, and Market share
- Relevance, Fit, and Motivation
Correct answer: Recency, Frequency, and Monetary value
RFM analysis scores customers on how recently they purchased, how often they purchase, and how much they spend, identifying the most valuable segments.
Question 3: In the context of Big Data, the 'variety' dimension refers to:
- The speed at which data is generated and must be processed
- The total volume of data stored across systems
- The diverse types and formats of data, including structured, semi-structured, and unstructured (Correct answer)
- The accuracy and consistency of the data collected
Correct answer: The diverse types and formats of data, including structured, semi-structured, and unstructured
Variety in Big Data describes the many different forms data takes—text, images, video, sensor data, and structured database records—that organizations must manage.
Question 4: A brand manager wants to monitor online conversations about a competitor's product launch in real time. The MOST suitable tool is:
- A longitudinal customer panel survey
- Social listening and media monitoring software (Correct answer)
- An internal sales transaction database
- A focus group conducted post-launch
Correct answer: Social listening and media monitoring software
Social listening tools continuously scan social media and online channels for mentions, enabling real-time monitoring of competitor activity and consumer sentiment.
Question 5: Predictive analytics in marketing primarily uses historical data to:
- Describe what happened in past campaigns
- Forecast future customer behaviors and outcomes (Correct answer)
- Explain why a specific campaign failed
- Benchmark performance against industry standards
Correct answer: Forecast future customer behaviors and outcomes
Predictive analytics applies statistical models and machine learning to historical data to forecast future events such as churn, purchase likelihood, or campaign response.
Question 6: An online retailer asks customers to rate their experience on a scale of 0–10 and then calculates what percentage are 'promoters' versus 'detractors.' This metric is the:
- Customer Satisfaction Score (CSAT)
- Net Promoter Score (NPS) (Correct answer)
- Customer Effort Score (CES)
- Brand Equity Index (BEI)
Correct answer: Net Promoter Score (NPS)
Net Promoter Score (NPS) classifies customers as promoters (9–10), passives (7–8), or detractors (0–6) and subtracts the detractor percentage from the promoter percentage.
Question 7: When a marketing research firm uses stratified random sampling, the population is first divided into:
- Geographic clusters selected randomly
- Mutually exclusive subgroups (strata) sharing common characteristics (Correct answer)
- Convenience-based panels of willing participants
- Sequential time periods for longitudinal analysis
Correct answer: Mutually exclusive subgroups (strata) sharing common characteristics
Stratified random sampling divides the population into homogeneous subgroups (strata) and then randomly samples from each, ensuring proportional representation.
CPM Managing Information for Marketing Insights 3
Which stage of the marketing research process involves translating raw data into actionable recommendations for decision-makers?