Chapter 5—The Human Side of Business Research: Organizational and Ethical Issues TRUE/FALSE One reason for an organization to hire an outside research supplier is to acquire access to that organization's experience in important types of situations ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 76 If secrecy is a major concern, then it is best to use an outside research agency ANS: F If secrecy is a major concern, then the research is best done in-house PTS: REF: p 77 NAT: AACSB: Reflective Thinking The placement of research within a firm’s organizational structure and the structure of the research department vary depending on the firm’s degree of marketing orientation and research sophistication ANS: F The placement of research depends on the firm’s acceptance of the concept of internal research and its stage of research sophistication PTS: REF: p 77 NAT: AACSB: Reflective Thinking One advantage of conducting research in-house is cheaper costs ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 77 Often the term “doer” is used by the research department to refer to line management for whom services are being performed ANS: F The term often used is “client.” PTS: REF: p 78 NAT: AACSB: Reflective Thinking The manager of decision support systems supervises the collection and analysis of sales, inventory, and other periodic customer relationship management (CRM) data ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 79 One problem typically faced by business research directors is that the research management role often is not formally recognized ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 81 Rushing into a research project may result in conducting a study that is not needed © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 82 Researchers measure past, current, and future events ANS: F Researchers measure only current and past events PTS: REF: p 84 NAT: AACSB: Reflective Thinking 10 A research analyst can effectively serve as a link between management and the research specialist ANS: F This describes a research generalist A research analyst is responsible for client contact, project design, preparation of proposals, and so on PTS: REF: p 85 NAT: AACSB: Reflective Thinking 11 A good example of the business research concept in action is the use of cross-functional teams within the organization ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 85 12 A syndicated service is a research supplier that provides standardized information for many clients in return for a fee ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 86 13 A custom research provider specializes in only one particular research activity, such as field interviewing, data warehousing, or data processing ANS: F This describes a limited-service research provider Custom research projects are tailored specifically to a client’s unique needs PTS: REF: p 88 NAT: AACSB: Reflective Thinking 14 Ethical questions are really philosophical questions ANS: T PTS: REF: p 88 NAT: AACSB: Reflective Thinking| AACSB: Ethics 15 Absolutism is a term that reflects the degree to which one rejects moral standards in favor of the acceptability of some action ANS: F This is relativism PTS: REF: p 89 NAT: AACSB: Reflective Thinking| AACSB: Ethics © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 16 The issue as to whether the respondent in a research study can choose to answer or not to answer a specific question is a matter of confidentiality ANS: F This is informed consent PTS: REF: p 90 NAT: AACSB: Reflective Thinking 17 The obligation on the part of the researcher to protect the identity of an individual research respondent is a matter of confidentiality ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 91 18 The use of spyware violates the right to privacy and confidentiality of Internet users ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 92 19 A false experimental effect that is used to create the perception of a true experimental effect is called pseudo-research ANS: F This is a placebo effect PTS: REF: p 93 NAT: AACSB: Reflective Thinking 20 One key question that can be used to determine whether a research participant is being treated ethically as a result of an experimental procedure is “Can the research subject be easily returned to his or her initial state?” ANS: T PTS: REF: p 94 NAT: AACSB: Reflective Thinking| AACSB: Ethics 21 An Institutional Review Board (IRB) is a committee that carefully reviews a proposed research design to try to make sure the proposed research will satisfy the research objectives ANS: F IRB’s review a proposed research design to try to make sure that no harm can come to any research participant PTS: REF: p 94 NAT: AACSB: Reflective Thinking 22 The purpose of a push poll is to push consumers into a pre-determined response ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 97 23 Pseudo-research is undertaken to support a specific claim in a legal action or to represent some advocacy group ANS: F This is advocacy research © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part PTS: REF: p 101 NAT: AACSB: Reflective Thinking MULTIPLE CHOICE A possible advantage of an outside research supplier over an in-house research department is that it may be possible for the outside supplier to conduct the project: a more objectively b at a lower cost c faster d all of the above ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 76 All of the following are advantages of in-house research EXCEPT: a quick turn-around b better collaboration with employees c more objectivity d cheaper costs ANS: C PTS: NAT: AACSB: Reflective Thinking REF: p 76 Caleb’s job at a research firm is to provide technical assistance with questionnaire design Which of the following best describes Caleb’s job title? a director of research b research assistant c forecast analyst d research generalist ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 78 Which of the following is NOT a problem a research director typically faces? a spends more time in meetings and managing than actually conducting research b research management role often is not formally recognized c often does not have the tools available to conduct the research properly d research is often seen as a hodgepodge of techniques available to answer individual, unrelated questions ANS: C PTS: NAT: AACSB: Reflective Thinking REF: p 81 Which of the following errors become more prominent when research studies are rushed? a conducting a study that is not needed b addressing the wrong issue c sampling difficulties d all of the above ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 82 Which of the following can effectively serve as a link between management and the research specialist? a marketing research director © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part b research generalist c research assistant d research liaison ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 85 3-M Corporation puts together teams of employees from various functional areas such as engineering, production, finance, and marketing who share a common purpose, such as new-product development These types of teams are referred to as: a cross-functional teams b syndicated teams c synergistic teams d focus groups ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 85 Commercial providers of research services are called: a research suppliers b research generalists c research analysts d research syndicators ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 86 When J.D Power and Associates sell the results of its research studies on new-car satisfaction to automobile producers, J.D Power is acting as a: a pseudo-research supplier b syndicated service c cross-functional team d custom research supplier ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 86 10 A research organization that specializes in studies about advertising effectiveness is an example of a(n): a cross-functional team b standardized research service c research generalist d advocacy research organization ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 87 11 When AT&T hires a research agency to conduct research tailored to it’s unique needs, this is called: a custom research b syndicated research c limited research d commercial research ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 88 © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 12 _ is the application of morals to business behavior related to the exchange environment a Moral relativism b Moral idealism c Business idealism d Business ethics ANS: D PTS: REF: p 88 NAT: AACSB: Reflective Thinking| AACSB: Ethics 13 Claire believes she is a moral person, but she does believe that it is acceptable to tell a lie in certain situations Which of the following term best reflects Claire’s beliefs? a relativism b idealism c situationalism d conformism ANS: A PTS: REF: p 89 NAT: AACSB: Reflective Thinking| AACSB: Ethics 14 Which term reflects the degree to which one bases one’s morality on moral standards? a relativism b idealism c absolutism d conformism ANS: B PTS: REF: p 89 NAT: AACSB: Reflective Thinking| AACSB: Ethics 15 When a respondent in a research study agrees to participate in the research study, this is known as: a a right to privacy b informed consent c jamming d forecasting ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 90 16 One right a research participant has is that information involved in the research will not be shared with others, which is known as: a consent b active research c passive research d confidentiality ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 91 17 Which of the following is generally considered to be a public place in which unobtrusive observation is not a serious invasion of privacy? a an airport check-in counter at Logan Airport in Boston b the St Louis Art Museum c a Radio Shack retail store d all of the above ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 92 © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 Which of the following is a type of software that is placed on users’ computers without consent or knowledge while using the Internet? a pop-ups b spyware c stealth file d COPPA ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 92 19 Janice is participating in an experimental study of an herbal supplement that is supposed to give users more energy Since starting the experiment, she has noticed that she has more energy, but in reality, she is just receiving a “blank” pill that does not contain the herbal supplement What effect is Janice demonstrating? a false negative b type I error c type II error d placebo ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 93 20 The session in which research subjects are fully informed and provided a chance to ask any question that they may have about the experiment is called a(n): a wrap-up session b post-hoc session c debriefing session d placebo session ANS: C PTS: NAT: AACSB: Reflective Thinking REF: p 93 21 Most universities require researchers to submit research proposals to a committee that carefully reviews them to make sure no harm can come to any research participant What is this committee called? a human subjects review committee b experimental design review committee c ethical research review committee d confidentiality review committee ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 94 22 When a marketing manager conducts a test market but has already decided to ignore the results if they not support a national launch of the product, this is an example of: a a pseudo-research study b a pretest c a forecast analysis d informed consent ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 96 © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 23 When a political candidate has staff workers phone registered voters of another party to ask a leading and negative question about his opposing candidate, this is a form of: a a push poll b advocacy research c a research supplier d a cross-functional team ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 97 24 Mark is conducting research studies for two national rental car companies Mark’s action represent a potential: a illegal situation b advocacy situation c push poll d conflict of interest ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 100 25 Another term for the sponsoring client in research studies is the: a researcher b user c subject d respondent ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 100 26 A research firm has been hired by an attorney to undertake research that will support his client’s defense in a legal dispute What type of research is the firm being asked to conduct? a push poll b advocacy research c confidentiality research d deceptive research ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 101 27 Many people believe that the collection and dissemination of their personal information without their knowledge or consent is a serious violation of their right to: a refuse to participate in a research study b anonymity c tell the truth d privacy ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 101 28 In a personal interview, a respondent who replies: "I not want to answer that question about my income last year" is exercising which right in a research study? a right to privacy b right to be informed c right of informed consent d right to terminate the interview at any time © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 101 COMPLETION When an organization's research department refers to the managers for whom it is performing research services, it is common to refer to the manager as the department's ANS: client PTS: REF: p 78 NAT: AACSB: Reflective Thinking An individual that is responsible for contacting clients, designing research projects, preparing research proposals, selecting research suppliers, and supervising data collection, analysis, and reporting activities is commonly referred to as a ANS: research analyst PTS: REF: p 78 NAT: AACSB: Reflective Thinking A individual within the research organization who acts as a "go-between" between management and the research specialist because he or she is an expert in the needs of both parties is known as a ANS: research generalist PTS: REF: p 85 NAT: AACSB: Reflective Thinking Teams that are composed of representatives of research, new product development, production, and finance to study the feasibility of the national launch of a new product are knows as teams ANS: cross-functional PTS: REF: p 85 NAT: AACSB: Reflective Thinking A research supplier that provides standardized information for many different clients (such as different automobile manufacturers) is known as a research service ANS: syndicated PTS: REF: p 86 NAT: AACSB: Reflective Thinking A commercial research company that conducts research for clients is known as a ANS: research supplier PTS: REF: p 86 NAT: AACSB: Reflective Thinking A research organization that develops a unique methodology for studying a specialty area (such as brand-name evaluation) is called a research service © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: standardized PTS: REF: p 87 NAT: AACSB: Reflective Thinking When a research supplier designs a research study that is tailored to the needs of the client, this is known as a research study ANS: custom PTS: REF: p 88 NAT: AACSB: Reflective Thinking The attempt to decide what is “right” and what is “wrong” in the conduct of business research studies is called ANS: business ethics PTS: REF: p 88 NAT: AACSB: Reflective Thinking| AACSB: Ethics 10 is a term that reflects the degree to which one bases one’s morality on moral standards ANS: Idealism PTS: REF: p 89 NAT: AACSB: Reflective Thinking| AACSB: Ethics 11 means that information involved in the research will not be shared with others ANS: Confidentiality PTS: REF: p 91 NAT: AACSB: Reflective Thinking 12 When telemarketing is conducted under the “guise” of a research study, this is called ANS: push polling PTS: REF: p 97 NAT: AACSB: Reflective Thinking 13 A session in which research subjects are fully informed and provided a chance to ask any questions that they may have about an experiment is called a session ANS: debriefing PTS: REF: p 98 NAT: AACSB: Reflective Thinking 14 Research that is conducted to support a specific claim in a legal action (e.g a certain miles per gallon performance in city driving conditions) is known as research ANS: advocacy PTS: REF: p 101 NAT: AACSB: Reflective Thinking © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ESSAY Explain when research should be conducted externally and when it should be done internally ANS: When the firm facing a decision encounters one of the following situations, they should consider having the research performed by an outside agency: (1) An outside agency often can provide a fresh perspective (2) An outside agency often can be more objective (3) An outside agency may have special expertise (4) An outside agency will have local knowledge and expertise and may specialize in research from its home area Likewise, there are conditions that make in-house research more attractive: (1) If the research project needs to be completed very quickly (2) If the research project will require the close collaboration of many other employees from diverse areas of the organization (3) In-house research can almost always be done more cheaply than that done by an outside firm (4) If secrecy is a major concern PTS: REF: pp 76-77 NAT: AACSB: Reflective Thinking| AACSB: Communication Discuss the sources of conflict between management and research ANS: In practice, the relationship between the research department and the users of research frequently is characterized by misunderstanding and conflicts arising from: (1) Research that implies criticism - managers may not want to find results that are critical of their work (2) Money - financial managers often see research as a cost rather than as an investment or a way of lowering risk (3) Time - it takes time to complete a research project, and errors are more prominent if the research is rushed (4) Intuitive decision making - managers are action-oriented decision makers, and they often rely on gut reaction and intuition, which is often successful Thus, they often not believe a research project will help improve their decision making (5) Future decisions based on past experience - managers wish to predict the future, but researchers measure only current or past events PTS: REF: pp 81-84 NAT: AACSB: Reflective Thinking| AACSB: Communication Define business ethics and explain how it applies to research ANS: Business ethics is the application of morals to business behavior related to the exchange environment An ethical dilemma refers to a situation in which one chooses from alternative courses of actions, each with different ethical implications Researchers, managers, and even consumers face ethical dilemmas practically every day Each party in the research process researchers, clients, and participants has certain rights and obligations toward the other parties Like the rest of business, research works best when all parties act ethically PTS: REF: p 88 © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part NAT: AACSB: Reflective Thinking| AACSB: Communication| AACSB: Ethics Discuss the rights and obligations of the research participant ANS: Most business research is conducted with the research participant’s informed consent In other cases, they may not be aware that they are being monitored in some way The ethical responsibilities vary depending on whether participation is active or passive One obligation of a research participant is honesty When someone willingly consents to participate actively, it is generally expected that he or she will provide truthful answers In return for being truthful, the subject has the right to expect confidentiality, meaning that information involved in the research will not be shared with others A participant’s right to privacy involves his or her freedom to choose whether to comply with the investigator’s request Research companies should adhere to the principles of the “do-not-call” policy and should respect consumers’ Internet privacy as well Since some experimental research involves some degree of deception, participant’s have the right to be protected from harm and the right to be informed PTS: REF: pp 90-94 NAT: AACSB: Reflective Thinking| AACSB: Communication Discuss the rights and obligations of the researcher ANS: Researchers have the right to cooperation from the sponsoring client and to be paid if full and in a timely manner for work that is done professionally Researchers have several obligations in the following areas: (1) The purpose of research is research - meaning the researcher should not mix sales and research by using research as a guise for selling or conduct research that isn’t research For example, pseudoresearch is conducted not to gather information for business decisions but to bolster a point of view and satisfy other needs, and push polls attempt to push consumers into a pre-determined response Service monitoring is also often presented as research, but this practice is acceptable as long as the researcher allows the consumer the option of either being contacted or not being contacted (2) Objectivity - researchers should maintain high standards to be certain that their data are accurate (3) Misrepresentation of research - researchers are obligated to be honest in presenting results (4) Honesty in reporting errors - every research design presents some limitations, which should be pointed out (5) Confidentiality - the researcher must abide by any confidentiality agreement with research participants as well as the research sponsor PTS: REF: pp 94-100 NAT: AACSB: Reflective Thinking| AACSB: Communication © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part  ... conducts a test market but has already decided to ignore the results if they not support a national launch of the product, this is an example of: a a pseudo-research study b a pretest c a forecast... faces? a spends more time in meetings and managing than actually conducting research b research management role often is not formally recognized c often does not have the tools available to conduct... AACSB: Reflective Thinking REF: p 82 Which of the following can effectively serve as a link between management and the research specialist? a marketing research director © 2010 Cengage Learning All