Market Research Market Research MCQ 5 — Questions and Answers
Question 1: A researcher uses a Likert scale with 7 points rather than 5 points. The main advantage of this choice is:
- It eliminates social desirability bias
- It provides more response granularity and variance in the data (Correct answer)
- It is easier for respondents to complete
- It automatically ensures higher reliability
Correct answer: It provides more response granularity and variance in the data
A 7-point scale offers respondents finer gradations of opinion, capturing more nuanced differences in attitudes and increasing statistical variance.
Question 2: What is 'panel fatigue' in market research?
- Exhaustion of the research budget due to large panel recruitment costs
- Declining response quality or engagement among panel members who are surveyed too frequently (Correct answer)
- A statistical phenomenon where panel data regresses toward the mean
- The inability to recruit enough panel members for niche markets
Correct answer: Declining response quality or engagement among panel members who are surveyed too frequently
Panel fatigue occurs when respondents who participate in surveys too often become less engaged, leading to careless or rushed answers that reduce data quality.
Question 3: In a discrete choice experiment (DCE), respondents are shown multiple product profiles and asked to choose their preferred option. The key advantage of DCE over direct rating scales is:
- It is cheaper and faster to administer
- It mimics real purchase decisions by forcing trade-offs among attributes (Correct answer)
- It eliminates the need for a control group
- It only requires a small sample size
Correct answer: It mimics real purchase decisions by forcing trade-offs among attributes
DCE replicates real-world decision-making by forcing choices between competing options, producing more realistic preference estimates than direct rating approaches.
Question 4: When a survey asks 'How did you first hear about us AND how satisfied are you with our service?' in a single question, this is an example of a:
- Double-barreled question (Correct answer)
- Leading question
- Filter question
- Open-ended question
Correct answer: Double-barreled question
A double-barreled question combines two separate inquiries into one, making it impossible to know which part the respondent answered.
Question 5: Which of the following is an example of behavioral segmentation?
- Grouping customers by age and income
- Grouping customers by their geographic region
- Grouping customers by purchase frequency and brand loyalty (Correct answer)
- Grouping customers by personality type
Correct answer: Grouping customers by purchase frequency and brand loyalty
Behavioral segmentation groups consumers based on their actual interactions with a product, such as usage rate, purchase frequency, or loyalty status.
Question 6: A food company conducts a blind taste test where consumers evaluate unlabeled products. After branding is revealed, preferences shift significantly toward the well-known brand. This effect is known as:
- Halo effect
- Framing bias
- Brand equity effect (Correct answer)
- Social desirability bias
Correct answer: Brand equity effect
Brand equity effect describes the premium in perceived value consumers assign to a product simply because of its brand identity, independent of physical product attributes.
Question 7: Regression analysis in market research is primarily used to:
- Group respondents into segments based on similar characteristics
- Understand the relationship between an independent variable and an outcome (Correct answer)
- Assess whether two categorical variables are statistically independent
- Reduce a large set of variables into a smaller number of factors
Correct answer: Understand the relationship between an independent variable and an outcome
Regression analysis quantifies how changes in one or more predictor variables (e.g., ad spend, price) are associated with changes in an outcome variable (e.g., sales).
Market Research Market Research MCQ 5
A researcher uses a Likert scale with 7 points rather than 5 points.
The main advantage of this choice is: