M Marketing 5th Edition by Grewal – Test Bank

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Chapter 05

Analyzing the Marketing Environment

 

True / False Questions

1. By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.

True    False

 

2. When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.

True    False

 

3. Successful firms focus their efforts on satisfying customer needs that match their core competencies.

True    False

 

4. In the immediate environment, the competition has no effect on consumers.

True    False

 

5. The three elements of the consumer’s immediate environment are the company, competition, and corporate partners.

True    False

 

6. Demographics are transmitted by words, literature, and institutions from generation to generation.

True    False

 

7. Demographic profiles of customers provide an easily understood “snapshot” of the typical consumer in target markets.

True    False

 

8. As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.

True    False

 

9. Macroenvironmental factors include the company, competition, and corporate partners.

True    False

 

10. Members of Generation Y are also called Millennials.

True    False

 

11. After World War II the birthrate in the United States rose sharply, resulting in a group known as the Baby Boomers.

True    False

 

12. The members of Generation X are also referred to as Digital Natives.

True    False

 

13. One of the social trends discussed in the text that is shaping consumer values in the United States and around the world is a concern about the vast disparity in income.

True    False

 

14. Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.

True    False

 

15. Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children.

True    False

 

16. Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise.

True    False

 

17. Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaging in greenwashing.

True    False

 

18. The next broad wave of mobile applications is likely to center on “m-wallets” which will enable customers’ smartphones to be used for wireless payments.

True    False

 

19. Inflation refers to the cost of borrowing money.

True    False

 

20. The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition.

True    False

 

21. For a marketer, the central focus of the entire business process should be the economy.

True    False

 

22. Parties that work with the focal firm are its corporate partners.

True    False

 

23. Jeanne, who lives in Boston, refers to Pepsi as “soda,” while Paul, who lives in Chicago, calls it “pop.” This is an example of a regional culture difference.

True    False

 

24. Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.

True    False

 

25. Applying age as a basis to identify customers is unethical, as it involves stereotyping.

True    False

 

 

Multiple Choice Questions

26. As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy’s efforts will likely help him

A. avoid cognitive dissonance.

 

B. implement just-in-time marketing promotions.

 

C. identify potential opportunities.

 

D. avoid the need to understand regional culture.

 

E. achieve cost savings.

 

27. The centerpiece of the marketing environment analysis framework is

A. the economy.

 

B. corporate partners.

 

C. culture.

 

D. competitive intelligence.

 

E. consumers.

 

28. A firm’s macroenvironment includes all of the following except

A. competition.

 

B. culture.

 

C. demographics.

 

D. economics.

 

E. political/legal issues.

 

29. The center of all marketing efforts is

A. profits.

 

B. the consumer.

 

C. corporate social responsibility.

 

D. top management.

 

E. the firm.

 

30. As director of a small art gallery, one of Frederica’s major concerns is the preferences of the people who buy her artists’ work. Frederica recognizes that the center of her marketing efforts is

A. profits.

 

B. her target customers.

 

C. artistic social responsibility.

 

D. competing art galleries.

 

E. the arts movement.

 

31. One of the goals of value-based marketing is

A. to provide the greatest value for the least profit.

 

B. to sell products for the highest possible price.

 

C. to offer greater value than competitors offer.

 

D. to determine the value of the brand.

 

E. to sell to all consumers, regardless of their needs.

 

32. Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan’s firm must look at everything it does

A. in order to value each person in the organization.

 

B. for each generational cohort.

 

C. to avoid cultural clashes.

 

D. from a consumer’s point of view.

 

E. to sensitize organization members to ethical values.

 

33. Yvonne knows her firm must look at everything it does from a consumer’s point of view. One major difficulty is that consumers’ __________ change(s) over time.

A. ethnic background

 

B. needs, wants, and ability to purchase

 

C. culture

 

D. just-in-time processes

 

E. demographics

 

34. Select the statement that best describes the key traits of Generation Y.

A. This generation varies the most in age, ranging from teenagers to adults who have their own families.

 

B. This generation is the largest population of 50-plus consumers.

 

C. This generation is the group that was born immediately after World War II.

 

D. This generation was the first generation of latchkey children.

 

E. Members of this generation—also known as Digital Natives—have had access to the Internet for their entire lives.

 

35. Which of the following statements accurately describes the current income distribution in the United States?

A. The purchasing power of lower-income groups has been steadily rising.

 

B. The middle class is outpacing all other income groups.

 

C. Wealthy households are outpacing both poor and middle-class households.

 

D. The income distribution among all households is becoming more equal.

 

E. Wealthy households are declining rapidly in purchasing power.

 

36. When you register your telephone number with the National Do Not Call Registry, you are responding to a need for

A. privacy.

 

B. enhanced information flow.

 

C. lower phone bills.

 

D. marketing contact.

 

E. tactical communication skills.

 

37. In the immediate marketing environment, the first factor that affects the consumer is

A. demographics.

 

B. cultural values.

 

C. social trends.

 

D. the firm itself.

 

E. technological advances.

 

38. Successful firms focus their efforts on satisfying customer needs that

A. are easiest to satisfy.

 

B. provide minimal core value.

 

C. are important to all generational cohorts.

 

D. competitors have tried and failed to satisfy.

 

E. match their core competencies.

 

39. The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that

A. are easiest to satisfy.

 

B. provide minimal core value.

 

C. are important to all generational cohorts.

 

D. competitors have tried and failed to satisfy.

 

E. match its core competencies.

 

40. Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will assess his competitors’ strengths, weaknesses, and

A. likely reaction to his promotional activities.

 

B. demographics.

 

C. just-in-time processes.

 

D. satisfaction quotient as perceived by customers.

 

E. ethical values.

 

41. The firms that work along with the focal firm to provide goods and services to consumers are viewed as

A. cultural cohorts.

 

B. corporate partners.

 

C. cartels.

 

D. cooperatives.

 

E. customers.

 

42. Yellow Trucking provides transportation services for Dan’s Delicious Donuts so that Dan’s stores always have fresh stock. Yellow Trucking is an example of a

A. cultural cohort.

 

B. corporate partner.

 

C. cartel.

 

D. cooperative.

 

E. customer.

 

43. The difference between a firm’s immediate marketing environment and its macroenvironment is that the macroenvironment

A. is external.

 

B. is easier to understand.

 

C. is easier to control.

 

D. has fewer components.

 

E. is internal.

 

44. The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

A. social concerns.

 

B. culture.

 

C. demographics.

 

D. generational cohorts.

 

E. religion.

 

45. Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

A. popular culture.

 

B. regional culture.

 

C. demographics.

 

D. generational cohorts.

 

E. country culture.

 

46. Insight Guides, a line of travel books, provides travelers with background information about people’s beliefs, values, and customs in various parts of the world. Insight’s books educate travelers about a country’s

A. social concerns.

 

B. political parties.

 

C. demographics.

 

D. generational cohorts.

 

E. culture.

 

47. When studying culture, the challenge for marketers is to determine whether culture

A. can help identify a particular group that might be interested in the marketer’s products.

 

B. is regional or subregional.

 

C. reinforces stereotypes.

 

D. is related to educational achievement.

 

E. offers opportunities for competitors.

 

48. Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of

A. regional culture.

 

B. generational cohort characteristics.

 

C. country culture.

 

D. a red/blue marketing campaign.

 

E. the Walmart Effect.

 

49. The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group’s culture

A. is socially important.

 

B. is passed from generation to generation orally or by written guides.

 

C. competes with or complements U.S. traditional culture.

 

D. can be used as a relevant identifier for a particular target group.

 

E. is an important immediate marketing environment variable.

 

50. When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?

A. dress

 

B. symbols

 

C. demographics

 

D. language

 

E. social trends

 

51. In New England foot-long sandwiches are called “grinders,” while in many other parts of the country they are called “subs.” This is an example of the impact of

A. regional culture.

 

B. country culture.

 

C. generational factors.

 

D. social trends.

 

E. regulatory factors.

 

52. Country culture and regional culture are both part of a firm’s

A. demographics.

 

B. macroenvironment.

 

C. political/legal environment.

 

D. economic environment.

 

E. immediate environment.

 

53. Typical demographic data include all of the following except

A. gender.

 

B. income.

 

C. race.

 

D. education.

 

E. language differences.

 

54. When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media “fit” with their advertising agenda.

A. country culture

 

B. regional culture

 

C. demographics

 

D. micromarketing measures

 

E. scenario planning

 

55. Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

A. regional cultures

 

B. inflationary expectations

 

C. political affiliations

 

D. purchase behaviors

 

E. cultural values

 

56. Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Miss America Pageant broadcast are likely to see ads for clothing and hair care products, due to

A. cultural expectations.

 

B. male domination in corporate boardrooms.

 

C. differing demographic data for potential and past viewers.

 

D. marketers’ general perceptions.

 

E. multiyear advertising contracts that cannot be broken.

 

57. ________ is/are distinguished from the other generational cohorts in that the group’s oldest members are now collecting Social Security.

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

 

58. Marketers wanting to use social media to reach consumers should understand that _______ were born into a world that was already full of electronic gadgets and digital technologies such as the Internet and social networks.

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

 

59. The first “latchkey” children belong to which generational cohort?

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

 

60. According to your text, the wealthiest 1 percent of the population control approximately what percentage of Americans’ total net worth?

A. 5.2 percent

 

B. 15.8 percent

 

C. 26.9 percent

 

D. 34.6 percent

 

E. 51.9 percent

 

61. ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marketing all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC’s plant was one of the worst polluters in town. The new term for this practice is

A. deceptive advertising.

 

B. greenwashing.

 

C. environmental exploitation.

 

D. virtual greening.

 

E. enviromarketing.

 

62. When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

A. everyone is equal.

 

B. income in the United States has become more unevenly distributed.

 

C. everyone has been equally affected by the recession.

 

D. there is increasing purchasing power among lower-income groups.

 

E. middle-income consumers are quickly becoming upper-income consumers.

 

63. Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

A. will create inflationary expectations.

 

B. will disappear as ethnicity becomes a stronger cultural determinant.

 

C. creates opportunities to provide value to each group.

 

D. will vanish once the recession ends.

 

E. is attributable to technological expertise of immigrant groups.

 

64. Population estimates show that by the year 2050, nearly 30 percent of the population in the United States will come from which group?

A. Hispanics

 

B. Asians

 

C. Pacific Islanders

 

D. Native Americans

 

E. Eastern Europeans

 

65. For some products, marketers can combine education level with other data like occupation and income to obtain

A. a sense of consumers’ regional culture.

 

B. consumers’ value sensitivity quotient (VSQ).

 

C. the educational value equation.

 

D. complete profiles of individual consumers.

 

E. useful predictions of purchase behavior.

 

66. Marketers know that, compared to high school graduates who are working full time, college students

A. will earn less over their working lifetime.

 

B. spend their disposable income differently.

 

C. are less likely to buy textbooks.

 

D. have almost identical spending patterns.

 

E. are more likely to drink beer and less likely to drink wine.

 

67. Which of the following is true regarding modern gender roles?

A. Gender roles are a constant cultural norm.

 

B. Modern standards require firms to produce gender neutral advertising for every product.

 

C. Gender roles have been blurred in the past several years.

 

D. Gender boundaries should never be crossed in marketing efforts.

 

E. Gender roles are unimportant to marketers.

 

68. The results of the 2010 census suggest what about the 42 million African American U.S. households?

A. They are more affluent and suburban.

 

B. They are younger and less affluent.

 

C. They are less affluent, but more suburban.

 

D. They are older and less affluent.

 

E. They are older and more urban.

 

69. Marketers in the United States are paying increasing attention to ethnic groups because

A. they represent a majority of the population in nonurban areas of the country.

 

B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

 

C. they are more susceptible to marketing messages.

 

D. government subsidies assist marketers attempting to communicate value to these groups.

 

E. country culture is replacing regional culture as a key marketing consideration.

 

70. Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in

A. rural areas.

 

B. smaller states.

 

C. New York, Los Angeles, and Chicago.

 

D. coastal resort areas.

 

E. Great Lakes agricultural areas.

 

71. Though Asian Americans comprise only about 6 percent of the U.S. population, they represent

A. the fastest-growing minority population.

 

B. the easiest minority group to access.

 

C. a large proportion of the minorities in the Midwest.

 

D. a uniform group of consumers with a common language and cultural background.

 

E. all of these

 

72. Strategic efforts to supply consumers with environmentally friendly, sustainable merchandise and services are called

A. reduce, reuse, recycle.

 

B. green marketing.

 

C. the green generation.

 

D. the inconvenient truth.

 

E. earth marketing.

 

73. By offering environmentally responsible products, green marketers

A. undercut prices of nonenvironmentally responsible marketers.

 

B. keep costs much lower than those of competitors.

 

C. make consumers feel guilty for buying other products.

 

D. add value that other products do not have.

 

E. all of these

 

74. Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers

A. value contributing to a greener environment.

 

B. are economically irrational.

 

C. are responding to global corporate pressure for social responsibility.

 

D. would prefer an SUV.

 

E. are greenwashing.

 

75. Every time a consumer surfs the web and clicks on a site, online marketers can place _____ on that user’s computer, showing them how that consumer navigates the web and what he or she does or does not buy.

A. web portals

 

B. cookies

 

C. browsers

 

D. bookmarks

 

E. pirates

 

76. Which retailer, in 2013, suffered a massive security breach that allowed hackers to steal credit and debit card information for 40 million customers?

A. Macy’s

 

B. Target

 

C. Kmart

 

D. Sears

 

E. JCPenney

 

77. Which technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

A. RFID tags

 

B. JIT inventory systems

 

C. data mining systems

 

D. greenwashing

 

E. Internet cookies

 

78. An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm

A. increase value to the consumer through media effectiveness promotion.

 

B. tailor its marketing messages.

 

C. meet inventory needs.

 

D. communicate with consumers on social media sites.

 

E. replace services with products.

 

79. When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except

A. purchasing power.

 

B. interest rates.

 

C. inflation.

 

D. age.

 

E. currency exchange rates.

 

80. If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true?

A. The high inflation rate in Mexico would increase its citizens’ purchasing power.

 

B. The high inflation rate in Mexico would mean that its products would cost less overall.

 

C. Mexican products would be less expensive, while U.S.-made products would become comparatively more expensive.

 

D. Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.

 

E. U.S.-made products would become less attractive to purchase.

 

81. Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through

A. increased choices.

 

B. higher prices.

 

C. protection from false advertising.

 

D. fair debt collection practices.

 

E. fewer competitors.

 

82. Which of the following groups has never lived without easy access to the Internet and other digital technologies?

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

 

83. Which of these is a macroenvironmental factor?

A. culture

 

B. corporate partners

 

C. competition

 

D. company

 

E. competencies

 

84. Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?

A. green marketing

 

B. time-poor society

 

C. cultural diversity

 

D. technological advances

 

E. regulatory issues

 

85. If McDonald’s wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except

A. offering an expanded menu of healthy options.

 

B. making nutritional information readily available to consumers.

 

C. using recycled paper in its food packaging.

 

D. using solar power in its restaurants.

 

E. creating an advertising campaign targeting elementary schoolchildren.

 

86. Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is

A. wireless payments from mobile devices.

 

B. location-based social media applications.

 

C. mobile devices completely replacing desktop and laptop computers.

 

D. devices that block smartphone usage in retail stores.

 

E. RFID tags.

 

87. Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

A. fake greening.

 

B. greenwashing.

 

C. greenbaiting.

 

D. green puffery.

 

E. red marketing.

 

88. Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of

A. flu shots.

 

B. high-carbohydrate diets.

 

C. yoga.

 

D. cooking shows on TV.

 

E. juicing.

 

89. The political/regulatory environment comprises political parties, governmental organizations, and

A. legislation and laws.

 

B. citizens.

 

C. interest groups.

 

D. for profit and nonprofit businesses.

 

E. international influences.

 

90. Christy, who was born in 1955, advocated for “casual Friday” at her workplace. Christy is a member of which generational cohort?

A. Baby Boomer

 

B. Gen X

 

C. Gen Y

 

D. Gen Z

 

E. Millennials

 

91. Which generation’s members are also known as Millennials?

A. Baby Boomers

 

B. Gen X

 

C. Gen Y

 

D. Gen Z

 

E. the Digital Natives

 

92. The poorest 10 percent of the U.S. population earned less than _______ per week in 2013.

A. $2,500

 

B. $1,801

 

C. $1,265

 

D. $920

 

E. $392

 

93. Which statement about the changing ethnicity in the United States is true?

A. Minorities now represent almost half of the population in the United States.

 

B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level.

 

C. Hispanics differ vastly from other groups in America in terms of consumer behavior.

 

D. African American U.S. households are more affluent than previous studies suggested.

 

E. Asian Americans are the slowest-growing minority population.

 

94. According to the text, 14 cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons except

A. calls for greater social responsibility.

 

B. increased income from a larger number of subscribers.

 

C. increased access to faster broadband capabilities.

 

D. the economic status of consumers.

 

E. pressures from the Federal Communications Commission.

 

95. The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

A. communication

 

B. political/regulatory

 

C. constitutional

 

D. social

 

E. technological

 

96. Which of the following specifically prohibits monopolies?

A. Sherman Antitrust Act

 

B. Federal Trade Act

 

C. Robinson-Patman Act

 

D. Financial Reform Law

 

E. Consumer Product Act

 

97. What is most likely to happen when inflation increases?

A. Consumers buy more discretionary merchandise.

 

B. Consumers buy fewer personal care and home entertainment products.

 

C. Off-price and discount retailers suffer from lower sales.

 

D. Consumers buy lower-priced foods.

 

E. Consumers buy less food.

 

98. ________ is the cost to the customers or the fee the bank charges those customers for borrowing money.

A. Interest

 

B. A service charge

 

C. A tax

 

D. A tariff

 

E. A user fee

 

99. The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called

A. interest destabilization.

 

B. inflation.

 

C. recession.

 

D. foreign currency fluctuations.

 

E. global financial impact.

 

100. When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as

A. currency fluctuation.

 

B. inflation.

 

C. recession.

 

D. interest.

 

E. deflation.

 

101. From a firm’s perspective, the biggest advantage of RFID is

A. it enables the firm to track an item from the moment it was manufactured.

 

B. it tells the firm who is buying the product and how it is being used.

 

C. it provides demographic information on the consumer for marketing use.

 

D. it is less expensive to use than other forms of marketing research.

 

E. it eliminates the need for communicating with the supply chain.

 

102. Which of the following is an example of greenwashing?

A. A company markets a product made from recycled glass bottles.

 

B. A company charges more for a hybrid car than for a similar gas model.

 

C. A company donates money to a school reading project so it can advertise itself as environmentally friendly.

 

D. The Smiths installed energy-saving lightbulbs in their rental apartment buildings.

 

E. The corner Laundromat stocks only phosphate-free detergent in its vending machines.

 

103. What percentage of U.S. adults now recycles their soda bottles and newspapers?

A. 10 percent

 

B. 20 percent

 

C. 50 percent

 

D. 75 percent

 

E. 90 percent

 

104. Which of the following is a social trend listed in the text?

A. thrift

 

B. health and wellness

 

C. environmental legislation

 

D. economic concerns

 

E. technological advances

 

105. Which ethnic group in the United States tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?

A. Northern European

 

B. Middle Eastern

 

C. Hispanic

 

D. Asian

 

E. African American

 

106. Which ethnic group tends to be not only more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?

A. Caucasian

 

B. Pacific Islander

 

C. Hispanic

 

D. Asian

 

E. African American

 

107. A generational cohort is a group of people

A. who share similar ethnic characteristics.

 

B. who grew up and went to school together.

 

C. with the same beliefs and values.

 

D. who are of the same generation.

 

E. who are not open to new things.

 

 

Essay Questions

108. Discuss how privacy concerns have become a current social issue. What technological invention has prompted the rise in concern over privacy?

 

 

 

 

109. Imagine that you have just been made the marketing manager for your university. Your first task is to assess your university’s immediate environment. What questions will you likely ask?

 

 

 

 

110. Irvina is a general practice physician. Her office includes a number of nurses, clerical assistants, and a physician’s assistant. She runs a well-organized practice, but she depends on a variety of corporate partners to create value for her patients. Who are likely to be Irvina’s corporate partners and how do they help or hinder her efforts to create value?

 

 

 

 

111. International marketers new to the United States often struggle to define American culture. What would these international marketers need to study in order to define the term and what would they be likely to learn?

 

 

 

 

112. The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. What challenges do marketers face in assessing U.S. culture?

 

 

 

 

113. Baby Boomers represent a tremendous opportunity for today’s marketers. Who are the Baby Boomers? Based on their age, what might be some products that they would be interested in?

 

 

 

 

114. “Income distribution in the United States has grown more polarized.” What does this mean in general, and what does it mean especially to marketers in the United States?

 

 

 

 

115. At almost every major university, some group on campus pressures the university to become “greener.” What does this mean? What does it usually involve? Why would a university want to become greener?

 

 

 

 

116. How can marketers identify potential opportunities?

 

 

 

 

117. Gaetana is the new marketing director for a local theater. One of her major responsibilities is to monitor and manage aspects of the theater’s immediate environment. What will Gaetana monitor and manage?

 

 

 

 

118. Marketers in the United States are learning that Hispanic and other minority groups are not alike. How do cultural differences affect purchase decisions? What can be said about the buying power of Hispanics?

 

 

 

 

119. In some parts of the United States a long sandwich is called a sub sandwich. In other parts of the country it is called a grinder. This is an example of what type of macroenvironmental factor?

 

 

 

 

120. Mary Grace is studying the demographics of the students attending her elementary school. What information will Mary Grace study?

 

 

 

 

121. Which generational cohort members are characterized as being “Digital Natives,” having had access to the Internet their entire lives?

 

 

 

 

122. Two of the characteristics of this generational cohort that distinguishes them from Baby Boomers are that they were the first generation to grow up with both parents working, and that half of them have divorced parents. They are the first generation of latchkey children. Which generational cohort has these characteristics?

 

 

 

 

123. In recent decades, how has income distribution changed in the United States?

 

 

 

 

124. Every year Pam reassesses the economic situation in the target markets her company serves. What factors will Pam likely assess?

 

 

 

 

125. An Uncle Ben’s box of rice has a symbol stating that the packaging is made from 100 percent recycled material and encourages consumers to recycle. Identify the social trend being addressed by Uncle Ben’s.

 

 

 

 

126. As demographic factors, why are marketers interested in the education level, occupation, and income of consumers?

 

 

 

 

127. Identify three tactics that a mid-priced motel chain might employ to take advantage of the social trends discussed in the text, in hopes of increasing its business. For each tactic, identify the social trend it is based on.

 

 

 

 

128. Why are generational cohorts important to marketers?

 

 

 

 

129. Explain how gender roles have changed, and how that has influenced marketing practices in the United States.

 

 

 

 

130. Name the various social trends that impact marketing, and give one example that demonstrates how each one influences marketing practices.

 

 

 

 

131. Discuss the political and regulatory environment of business as it relates to the protection of consumers. Name and describe at least two laws that had a major impact on fair competition, consumer protection, or industry-specific regulation.

 

 

 

 

132. How do the economic factors of inflation, foreign currency fluctuations, and interest rates affect firms’ ability to market goods and services?

 

 

 

 

133. Name one technological advance that has impacted how consumers research and buy products. Give an example from your own experience.

 

 

 

 

134. How is the balance of ethnicities in the U.S. population changing, and what implications does this have for marketers?

 

 

 

 

135. What is greenwashing and why do consumers need to be aware of it?

 

 

 

 

Chapter 05 Analyzing the Marketing Environment Answer Key

True / False Questions

1. By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.

TRUE

Changes in the environment can be a source of opportunities for the firm.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

2. When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.

FALSE

The consumer, not the firm, should be kept at the center of all activity.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

3. Successful firms focus their efforts on satisfying customer needs that match their core competencies.

TRUE

The firm’s competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

4. In the immediate environment, the competition has no effect on consumers.

FALSE

Competitors are one factor in the immediate environment that affects consumers.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

5. The three elements of the consumer’s immediate environment are the company, competition, and corporate partners.

TRUE

These are the three components of the immediate environment.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

6. Demographics are transmitted by words, literature, and institutions from generation to generation.

FALSE

The question describes culture, not demographics.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

7. Demographic profiles of customers provide an easily understood “snapshot” of the typical consumer in target markets.

TRUE

Although demographics do not completely describe consumers, they offer a summary snapshot of consumer characteristics that can be useful.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

8. As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.

FALSE

When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

9. Macroenvironmental factors include the company, competition, and corporate partners.

FALSE

Macroenvironmental factors are external factors such as culture, demographics, social issues, technological advances, economic situation, and political/regulatory environments. The factors listed in the question relate to the immediate environment.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

10. Members of Generation Y are also called Millennials.

TRUE

The group of people born between 1977 and 2000 are referred to as Generation Y, Gen Y, or Millennials.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

11. After World War II the birthrate in the United States rose sharply, resulting in a group known as the Baby Boomers.

TRUE

Baby Boomers represent the 78 million Americans born between 1946 and 1964.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

12. The members of Generation X are also referred to as Digital Natives.

FALSE

Digital Natives are members of Generation Z, not Generation X.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

13. One of the social trends discussed in the text that is shaping consumer values in the United States and around the world is a concern about the vast disparity in income.

FALSE

The social trends mentioned in the text are a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

14. Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.

TRUE

This is the definition of culture. Culture can be transmitted by words, literature, and institutions; it is passed down from generation to generation and learned over time.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

15. Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children.

FALSE

Burger King no longer uses SpongeBob because new advertising guidelines do not allow linking unhealthy foods with cartoon characters.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

16. Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise.

FALSE

This is the definition of green marketing.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

17. Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaging in greenwashing.

TRUE

Consumers need to question whether a firm is spending significantly more money and time advertising being green and operating with consideration for the environment than actually spending these resources on environmentally sound practices.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

18. The next broad wave of mobile applications is likely to center on “m-wallets” which will enable customers’ smartphones to be used for wireless payments.

TRUE

Applications such as Google Wallet, MasterCard’s Easy Pay, and Isis Mobile Wallet all enable customers’ phones to serve as m-wallets.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

19. Inflation refers to the cost of borrowing money.

FALSE

Inflation refers to the persistent increase in the prices of goods and services.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

20. The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition.

TRUE

This is correct; it made fair trade within a free market a national goal.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

21. For a marketer, the central focus of the entire business process should be the economy.

FALSE

The marketing firm must consider the entire business process, all from a consumer’s point of view.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

22. Parties that work with the focal firm are its corporate partners.

TRUE

This is correct. Firms collaborate with other firms to produce and market their products.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

23. Jeanne, who lives in Boston, refers to Pepsi as “soda,” while Paul, who lives in Chicago, calls it “pop.” This is an example of a regional culture difference.

TRUE

Regional culture affects many aspects of people’s lives, including their vocabulary.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Understanding the Marketing Environment
 

 

24. Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.

TRUE

Typical demographics include age, gender, income, and race.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

25. Applying age as a basis to identify customers is unethical, as it involves stereotyping.

FALSE

Applying age as a basis to identify consumers is quite useful to marketers, as long as it is used in conjunction with other consumer characteristics.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Demographic Environment
 

 

Multiple Choice Questions

26. As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy’s efforts will likely help him

A. avoid cognitive dissonance.

 

B. implement just-in-time marketing promotions.

 

C. identify potential opportunities.

 

D. avoid the need to understand regional culture.

 

E. achieve cost savings.

Close attention to the marketing environment and customer needs is one of the best sources of opportunities.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

27. The centerpiece of the marketing environment analysis framework is

A. the economy.

 

B. corporate partners.

 

C. culture.

 

D. competitive intelligence.

 

E. consumers.

The consumer is the center of all marketing activities.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

28. A firm’s macroenvironment includes all of the following except

A. competition.

 

B. culture.

 

C. demographics.

 

D. economics.

 

E. political/legal issues.

Competition is part of the immediate environment, not the macroenvironment.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

29. The center of all marketing efforts is

A. profits.

 

B. the consumer.

 

C. corporate social responsibility.

 

D. top management.

 

E. the firm.

The consumer should be at the center of all marketing activities.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

30. As director of a small art gallery, one of Frederica’s major concerns is the preferences of the people who buy her artists’ work. Frederica recognizes that the center of her marketing efforts is

A. profits.

 

B. her target customers.

 

C. artistic social responsibility.

 

D. competing art galleries.

 

E. the arts movement.

Frederica’s customers should be at the center of all her marketing activities.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

31. One of the goals of value-based marketing is

A. to provide the greatest value for the least profit.

 

B. to sell products for the highest possible price.

 

C. to offer greater value than competitors offer.

 

D. to determine the value of the brand.

 

E. to sell to all consumers, regardless of their needs.

Value-based marketing has to do with offering the greatest possible value to consumers and offering a greater value than competitors offer.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

32. Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan’s firm must look at everything it does

A. in order to value each person in the organization.

 

B. for each generational cohort.

 

C. to avoid cultural clashes.

 

D. from a consumer’s point of view.

 

E. to sensitize organization members to ethical values.

It is the consumer’s perception of value that matters, and so the firm’s plans must be considered from the consumer’s point of view.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

33. Yvonne knows her firm must look at everything it does from a consumer’s point of view. One major difficulty is that consumers’ __________ change(s) over time.

A. ethnic background

 

B. needs, wants, and ability to purchase

 

C. culture

 

D. just-in-time processes

 

E. demographics

The firm must continually scan the environment, because consumers’ wants and needs are not static.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

34. Select the statement that best describes the key traits of Generation Y.

A. This generation varies the most in age, ranging from teenagers to adults who have their own families.

 

B. This generation is the largest population of 50-plus consumers.

 

C. This generation is the group that was born immediately after World War II.

 

D. This generation was the first generation of latchkey children.

 

E. Members of this generation—also known as Digital Natives—have had access to the Internet for their entire lives.

Generation Y is the biggest cohort since the original postwar World War II boom. It also varies the most in age, ranging from teenagers to adults who have their own families.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

35. Which of the following statements accurately describes the current income distribution in the United States?

A. The purchasing power of lower-income groups has been steadily rising.

 

B. The middle class is outpacing all other income groups.

 

C. Wealthy households are outpacing both poor and middle-class households.

 

D. The income distribution among all households is becoming more equal.

 

E. Wealthy households are declining rapidly in purchasing power.

Income distribution in the United States has grown more polarized—the highest-income groups are growing, whereas many middle- and lower-income groups’ real purchasing power keeps declining.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

36. When you register your telephone number with the National Do Not Call Registry, you are responding to a need for

A. privacy.

 

B. enhanced information flow.

 

C. lower phone bills.

 

D. marketing contact.

 

E. tactical communication skills.

Privacy is a major concern for consumers, and the Federal Trade Commission is responding by trying to protect consumers against unwanted telephone solicitations.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

37. In the immediate marketing environment, the first factor that affects the consumer is

A. demographics.

 

B. cultural values.

 

C. social trends.

 

D. the firm itself.

 

E. technological advances.

The components of the immediate environment are the firm, its competitors, and its corporate partners.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

38. Successful firms focus their efforts on satisfying customer needs that

A. are easiest to satisfy.

 

B. provide minimal core value.

 

C. are important to all generational cohorts.

 

D. competitors have tried and failed to satisfy.

 

E. match their core competencies.

The firm’s competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

39. The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that

A. are easiest to satisfy.

 

B. provide minimal core value.

 

C. are important to all generational cohorts.

 

D. competitors have tried and failed to satisfy.

 

E. match its core competencies.

The firm’s competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

40. Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will assess his competitors’ strengths, weaknesses, and

A. likely reaction to his promotional activities.

 

B. demographics.

 

C. just-in-time processes.

 

D. satisfaction quotient as perceived by customers.

 

E. ethical values.

Yuri must consider competitors’ strengths and weaknesses in order to perform accurate comparisons; he must also understand how competitors will respond to the promotional campaign.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

41. The firms that work along with the focal firm to provide goods and services to consumers are viewed as

A. cultural cohorts.

 

B. corporate partners.

 

C. cartels.

 

D. cooperatives.

 

E. customers.

Corporate partners work with the firm to provide goods and services.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

42. Yellow Trucking provides transportation services for Dan’s Delicious Donuts so that Dan’s stores always have fresh stock. Yellow Trucking is an example of a

A. cultural cohort.

 

B. corporate partner.

 

C. cartel.

 

D. cooperative.

 

E. customer.

Corporate partners work with the firm to provide goods and services.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

43. The difference between a firm’s immediate marketing environment and its macroenvironment is that the macroenvironment

A. is external.

 

B. is easier to understand.

 

C. is easier to control.

 

D. has fewer components.

 

E. is internal.

The macroenvironment consists of factors external to the firm.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

44. The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

A. social concerns.

 

B. culture.

 

C. demographics.

 

D. generational cohorts.

 

E. religion.

This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but it is a broader concept.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

45. Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

A. popular culture.

 

B. regional culture.

 

C. demographics.

 

D. generational cohorts.

 

E. country culture.

Regional culture refers to cultural differences across different areas of a country.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

46. Insight Guides, a line of travel books, provides travelers with background information about people’s beliefs, values, and customs in various parts of the world. Insight’s books educate travelers about a country’s

A. social concerns.

 

B. political parties.

 

C. demographics.

 

D. generational cohorts.

 

E. culture.

People’s beliefs, values, and customs relate to their culture.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

47. When studying culture, the challenge for marketers is to determine whether culture

A. can help identify a particular group that might be interested in the marketer’s products.

 

B. is regional or subregional.

 

C. reinforces stereotypes.

 

D. is related to educational achievement.

 

E. offers opportunities for competitors.

The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

48. Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of

A. regional culture.

 

B. generational cohort characteristics.

 

C. country culture.

 

D. a red/blue marketing campaign.

 

E. the Walmart Effect.

Country culture consists of a country’s shared beliefs and values, which included a strong thread of patriotism after the World Trade Center attacks.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

49. The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group’s culture

A. is socially important.

 

B. is passed from generation to generation orally or by written guides.

 

C. competes with or complements U.S. traditional culture.

 

D. can be used as a relevant identifier for a particular target group.

 

E. is an important immediate marketing environment variable.

Some groups in the United States preserve their cultural identities while others seek to blend in. The more a group seeks to maintain its identity, the more relevant culture will be to identify a potential customer group.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

50. When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?

A. dress

 

B. symbols

 

C. demographics

 

D. language

 

E. social trends

Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

51. In New England foot-long sandwiches are called “grinders,” while in many other parts of the country they are called “subs.” This is an example of the impact of

A. regional culture.

 

B. country culture.

 

C. generational factors.

 

D. social trends.

 

E. regulatory factors.

These types of language differences are typical examples of regional cultural differences.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

52. Country culture and regional culture are both part of a firm’s

A. demographics.

 

B. macroenvironment.

 

C. political/legal environment.

 

D. economic environment.

 

E. immediate environment.

Country culture and regional culture are both part of a firm’s macroenvironment.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

53. Typical demographic data include all of the following except

A. gender.

 

B. income.

 

C. race.

 

D. education.

 

E. language differences.

All of these are examples of demographic factors except language differences, which is a cultural trait.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

54. When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media “fit” with their advertising agenda.

A. country culture

 

B. regional culture

 

C. demographics

 

D. micromarketing measures

 

E. scenario planning

Age, income, gender, and race are demographic factors.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

55. Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

A. regional cultures

 

B. inflationary expectations

 

C. political affiliations

 

D. purchase behaviors

 

E. cultural values

Generational cohorts are presumed to have similar purchase behaviors due to similar life experiences and similarity of life stage.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

56. Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Miss America Pageant broadcast are likely to see ads for clothing and hair care products, due to

A. cultural expectations.

 

B. male domination in corporate boardrooms.

 

C. differing demographic data for potential and past viewers.

 

D. marketers’ general perceptions.

 

E. multiyear advertising contracts that cannot be broken.

Gender is a demographic variable, and these programs do tend to attract different genders; thus, this difference in advertising is based on demographic information.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

57. ________ is/are distinguished from the other generational cohorts in that the group’s oldest members are now collecting Social Security.

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

Baby Boomers, those born between 1946 and 1964, are now collecting Social Security.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

58. Marketers wanting to use social media to reach consumers should understand that _______ were born into a world that was already full of electronic gadgets and digital technologies such as the Internet and social networks.

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

Members of Generation Z are also known as Digital Natives since they have always had electronic gadgets and digital technologies in their world.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

59. The first “latchkey” children belong to which generational cohort?

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

Generation X children grew up in homes in which both parents worked.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

60. According to your text, the wealthiest 1 percent of the population control approximately what percentage of Americans’ total net worth?

A. 5.2 percent

 

B. 15.8 percent

 

C. 26.9 percent

 

D. 34.6 percent

 

E. 51.9 percent

Income distribution in the United States has grown more polarized. The wealthiest 1 percent of the population control approximately 34.6 percent of Americans’ total net worth; the bottom 90 percent control only 26.9 percent in comparison.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

61. ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marketing all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC’s plant was one of the worst polluters in town. The new term for this practice is

A. deceptive advertising.

 

B. greenwashing.

 

C. environmental exploitation.

 

D. virtual greening.

 

E. enviromarketing.

The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

62. When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

A. everyone is equal.

 

B. income in the United States has become more unevenly distributed.

 

C. everyone has been equally affected by the recession.

 

D. there is increasing purchasing power among lower-income groups.

 

E. middle-income consumers are quickly becoming upper-income consumers.

Income distribution has become increasingly unequal in the United States, with high-income groups getting richer and low-income groups getting poorer.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

63. Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

A. will create inflationary expectations.

 

B. will disappear as ethnicity becomes a stronger cultural determinant.

 

C. creates opportunities to provide value to each group.

 

D. will vanish once the recession ends.

 

E. is attributable to technological expertise of immigrant groups.

Upper-income, middle-income, and lower-income individuals are all consumers, and all can be offered value in different ways.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

64. Population estimates show that by the year 2050, nearly 30 percent of the population in the United States will come from which group?

A. Hispanics

 

B. Asians

 

C. Pacific Islanders

 

D. Native Americans

 

E. Eastern Europeans

Approximately 80 percent of all population growth in the next 20 years is expected to come from African American, Hispanic, and Asian communities. Minorities now represent approximately one-quarter of the population; by 2050 they will represent about 50 percent, and nearly 30 percent of the population will be Hispanic.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

65. For some products, marketers can combine education level with other data like occupation and income to obtain

A. a sense of consumers’ regional culture.

 

B. consumers’ value sensitivity quotient (VSQ).

 

C. the educational value equation.

 

D. complete profiles of individual consumers.

 

E. useful predictions of purchase behavior.

Certain habits—such as preferences for entertainment—can be predicted with reasonable accuracy from education, occupation, and income.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

66. Marketers know that, compared to high school graduates who are working full time, college students

A. will earn less over their working lifetime.

 

B. spend their disposable income differently.

 

C. are less likely to buy textbooks.

 

D. have almost identical spending patterns.

 

E. are more likely to drink beer and less likely to drink wine.

Education and occupation are partial predictors of how consumers spend their time and money, particularly in terms of leisure activities.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

67. Which of the following is true regarding modern gender roles?

A. Gender roles are a constant cultural norm.

 

B. Modern standards require firms to produce gender neutral advertising for every product.

 

C. Gender roles have been blurred in the past several years.

 

D. Gender boundaries should never be crossed in marketing efforts.

 

E. Gender roles are unimportant to marketers.

Gender roles have been becoming less fixed and more blurred for the last several years, with men and women no longer playing traditional roles. While gender-neutral promotion is used far more often today, there are still some products that are marketed primarily to a specific gender.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

68. The results of the 2010 census suggest what about the 42 million African American U.S. households?

A. They are more affluent and suburban.

 

B. They are younger and less affluent.

 

C. They are less affluent, but more suburban.

 

D. They are older and less affluent.

 

E. They are older and more urban.

The census of 2010 counts 42 million African American U.S. households, who are more affluent and suburban than previous studies suggested. They also tend to be younger.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

69. Marketers in the United States are paying increasing attention to ethnic groups because

A. they represent a majority of the population in nonurban areas of the country.

 

B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

 

C. they are more susceptible to marketing messages.

 

D. government subsidies assist marketers attempting to communicate value to these groups.

 

E. country culture is replacing regional culture as a key marketing consideration.

Ethnic groups represent a fast-increasing percentage of the U.S. population.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

70. Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in

A. rural areas.

 

B. smaller states.

 

C. New York, Los Angeles, and Chicago.

 

D. coastal resort areas.

 

E. Great Lakes agricultural areas.

Although they can be found anywhere, immigrants and foreign-born Americans are found in large numbers in major cities like New York, Los Angeles, Chicago, and San Francisco.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

71. Though Asian Americans comprise only about 6 percent of the U.S. population, they represent

A. the fastest-growing minority population.

 

B. the easiest minority group to access.

 

C. a large proportion of the minorities in the Midwest.

 

D. a uniform group of consumers with a common language and cultural background.

 

E. all of these

Asian Americans are the fastest-growing ethnic minority in the United States.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

72. Strategic efforts to supply consumers with environmentally friendly, sustainable merchandise and services are called

A. reduce, reuse, recycle.

 

B. green marketing.

 

C. the green generation.

 

D. the inconvenient truth.

 

E. earth marketing.

Green marketing refers to the marketing of environmentally conscious, sustainable products and services.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

73. By offering environmentally responsible products, green marketers

A. undercut prices of nonenvironmentally responsible marketers.

 

B. keep costs much lower than those of competitors.

 

C. make consumers feel guilty for buying other products.

 

D. add value that other products do not have.

 

E. all of these

Environmentally responsible products have additional value for consumers to whom protecting the environment is important.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

74. Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers

A. value contributing to a greener environment.

 

B. are economically irrational.

 

C. are responding to global corporate pressure for social responsibility.

 

D. would prefer an SUV.

 

E. are greenwashing.

These consumers are willing to pay more for environmentally friendly products because care for the environment is something that adds value.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

75. Every time a consumer surfs the web and clicks on a site, online marketers can place _____ on that user’s computer, showing them how that consumer navigates the web and what he or she does or does not buy.

A. web portals

 

B. cookies

 

C. browsers

 

D. bookmarks

 

E. pirates

Consumers are expressing concern over their privacy rights when online. Online marketers that use “cookies” to track consumers’ habits now find that consumers view this practice as an unacceptable invasion of privacy.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

76. Which retailer, in 2013, suffered a massive security breach that allowed hackers to steal credit and debit card information for 40 million customers?

A. Macy’s

 

B. Target

 

C. Kmart

 

D. Sears

 

E. JCPenney

Target’s breach of security also allowed hackers to steal personal information, including the phone numbers and addresses of 70 million people.

 

AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

77. Which technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

A. RFID tags

 

B. JIT inventory systems

 

C. data mining systems

 

D. greenwashing

 

E. Internet cookies

Radio frequency identification (RFID) tags help marketers because they assist in determining exactly how much of each product is at a given point in the supply chain. Retailers can also communicate with their suppliers to plan to meet their inventory needs.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

78. An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm

A. increase value to the consumer through media effectiveness promotion.

 

B. tailor its marketing messages.

 

C. meet inventory needs.

 

D. communicate with consumers on social media sites.

 

E. replace services with products.

Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

79. When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except

A. purchasing power.

 

B. interest rates.

 

C. inflation.

 

D. age.

 

E. currency exchange rates.

Income, interest rates, and inflation are among the economic factors; age is a demographic factor.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

80. If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true?

A. The high inflation rate in Mexico would increase its citizens’ purchasing power.

 

B. The high inflation rate in Mexico would mean that its products would cost less overall.

 

C. Mexican products would be less expensive, while U.S.-made products would become comparatively more expensive.

 

D. Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.

 

E. U.S.-made products would become less attractive to purchase.

By keeping the exchange rate constant, U.S.-made products’ prices would go down, compared to their Mexican counterparts, whose prices would rise with inflation.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

81. Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through

A. increased choices.

 

B. higher prices.

 

C. protection from false advertising.

 

D. fair debt collection practices.

 

E. fewer competitors.

The concern about monopolies and alliances is that they will inhibit competition, possibly raising prices and reducing choice.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

82. Which of the following groups has never lived without easy access to the Internet and other digital technologies?

A. Baby Boomers

 

B. Generation W

 

C. Generation X

 

D. Generation Y

 

E. Generation Z

Members of the Generation Z, the Digital Natives, have had access to Internet technology for their entire lives.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

83. Which of these is a macroenvironmental factor?

A. culture

 

B. corporate partners

 

C. competition

 

D. company

 

E. competencies

Corporate partners, competition, and company are all part of the immediate environment.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Macroenvironment
 

 

84. Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?

A. green marketing

 

B. time-poor society

 

C. cultural diversity

 

D. technological advances

 

E. regulatory issues

By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment—in other words, this is an example of green marketing.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

85. If McDonald’s wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except

A. offering an expanded menu of healthy options.

 

B. making nutritional information readily available to consumers.

 

C. using recycled paper in its food packaging.

 

D. using solar power in its restaurants.

 

E. creating an advertising campaign targeting elementary schoolchildren.

Targeting preteens is related to demographic factors, not a current social trend, and in fact would probably be considered to work against the social trend toward health and wellness, given that many of McDonald’s menu items are considered to be unhealthy.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

86. Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is

A. wireless payments from mobile devices.

 

B. location-based social media applications.

 

C. mobile devices completely replacing desktop and laptop computers.

 

D. devices that block smartphone usage in retail stores.

 

E. RFID tags.

Applications are being developed to take advantage of near field communication, a short-range wireless communication method that will allow (among other things) wireless payments to be sent from mobile devices. This would allow consumers to pay with nothing more than a smartphone.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

87. Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

A. fake greening.

 

B. greenwashing.

 

C. greenbaiting.

 

D. green puffery.

 

E. red marketing.

Greenwashing is the practice of claiming environmental benefits for a product that are not genuine.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

88. Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of

A. flu shots.

 

B. high-carbohydrate diets.

 

C. yoga.

 

D. cooking shows on TV.

 

E. juicing.

Yoga classes and supplies are increasing in popularity as part of the wellness trend.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

89. The political/regulatory environment comprises political parties, governmental organizations, and

A. legislation and laws.

 

B. citizens.

 

C. interest groups.

 

D. for profit and nonprofit businesses.

 

E. international influences.

The political/regulatory environment comprises political parties, government organizations, and legislation and laws.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

90. Christy, who was born in 1955, advocated for “casual Friday” at her workplace. Christy is a member of which generational cohort?

A. Baby Boomer

 

B. Gen X

 

C. Gen Y

 

D. Gen Z

 

E. Millennials

Baby Boomers are people born after World War II between 1946 and 1964.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

91. Which generation’s members are also known as Millennials?

A. Baby Boomers

 

B. Gen X

 

C. Gen Y

 

D. Gen Z

 

E. the Digital Natives

Generation Y members are also called Millennials.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

92. The poorest 10 percent of the U.S. population earned less than _______ per week in 2013.

A. $2,500

 

B. $1,801

 

C. $1,265

 

D. $920

 

E. $392

The poorest 10 percent of the population earned less than $392 per week.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

93. Which statement about the changing ethnicity in the United States is true?

A. Minorities now represent almost half of the population in the United States.

 

B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level.

 

C. Hispanics differ vastly from other groups in America in terms of consumer behavior.

 

D. African American U.S. households are more affluent than previous studies suggested.

 

E. Asian Americans are the slowest-growing minority population.

The 2010 U.S. Census counted 42 million African American U.S. households, who are more affluent and suburban than previous studies suggested.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

94. According to the text, 14 cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons except

A. calls for greater social responsibility.

 

B. increased income from a larger number of subscribers.

 

C. increased access to faster broadband capabilities.

 

D. the economic status of consumers.

 

E. pressures from the Federal Communications Commission.

Increased income is not mentioned as a reason for this change.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Understanding the Marketing Environment
 

 

95. The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

A. communication

 

B. political/regulatory

 

C. constitutional

 

D. social

 

E. technological

The political/regulatory environment comprises political parties, government organizations, and legislation and laws.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

96. Which of the following specifically prohibits monopolies?

A. Sherman Antitrust Act

 

B. Federal Trade Act

 

C. Robinson-Patman Act

 

D. Financial Reform Law

 

E. Consumer Product Act

The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition and made fair trade within a free market a national goal.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

97. What is most likely to happen when inflation increases?

A. Consumers buy more discretionary merchandise.

 

B. Consumers buy fewer personal care and home entertainment products.

 

C. Off-price and discount retailers suffer from lower sales.

 

D. Consumers buy lower-priced foods.

 

E. Consumers buy less food.

When inflation increases, consumers probably don’t buy less food, but instead buy less expensive food to make their dollar go further.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

98. ________ is the cost to the customers or the fee the bank charges those customers for borrowing money.

A. Interest

 

B. A service charge

 

C. A tax

 

D. A tariff

 

E. A user fee

This is the definition of interest.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

99. The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called

A. interest destabilization.

 

B. inflation.

 

C. recession.

 

D. foreign currency fluctuations.

 

E. global financial impact.

This is the definition of foreign currency fluctuations.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

100. When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as

A. currency fluctuation.

 

B. inflation.

 

C. recession.

 

D. interest.

 

E. deflation.

Inflation refers to the persistent increase in the prices of goods and services.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

101. From a firm’s perspective, the biggest advantage of RFID is

A. it enables the firm to track an item from the moment it was manufactured.

 

B. it tells the firm who is buying the product and how it is being used.

 

C. it provides demographic information on the consumer for marketing use.

 

D. it is less expensive to use than other forms of marketing research.

 

E. it eliminates the need for communicating with the supply chain.

RFID enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer. Because they are able to determine exactly how much of each product is at a given point in the supply chain, retailers can also communicate with their suppliers and collaboratively plan to meet their inventory needs.

 

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

102. Which of the following is an example of greenwashing?

A. A company markets a product made from recycled glass bottles.

 

B. A company charges more for a hybrid car than for a similar gas model.

 

C. A company donates money to a school reading project so it can advertise itself as environmentally friendly.

 

D. The Smiths installed energy-saving lightbulbs in their rental apartment buildings.

 

E. The corner Laundromat stocks only phosphate-free detergent in its vending machines.

Donating money to a school for a reading project is socially responsible, but not necessarily environmentally friendly. This is greenwashing for public approval.

 

AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

103. What percentage of U.S. adults now recycles their soda bottles and newspapers?

A. 10 percent

 

B. 20 percent

 

C. 50 percent

 

D. 75 percent

 

E. 90 percent

About half of U.S. adults recycle soda bottles and newspapers. European consumers are even greener.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

104. Which of the following is a social trend listed in the text?

A. thrift

 

B. health and wellness

 

C. environmental legislation

 

D. economic concerns

 

E. technological advances

Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

105. Which ethnic group in the United States tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?

A. Northern European

 

B. Middle Eastern

 

C. Hispanic

 

D. Asian

 

E. African American

Asian Americans make up only about 5.6 percent of the U.S. population, but they also represent the fastest-growing minority population, tend to earn more, have more schooling, and are more likely to be professionally employed or own a business.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

106. Which ethnic group tends to be not only more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?

A. Caucasian

 

B. Pacific Islander

 

C. Hispanic

 

D. Asian

 

E. African American

This describes African Americans.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

107. A generational cohort is a group of people

A. who share similar ethnic characteristics.

 

B. who grew up and went to school together.

 

C. with the same beliefs and values.

 

D. who are of the same generation.

 

E. who are not open to new things.

This is the definition of generational cohort.

 

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

Essay Questions

108. Discuss how privacy concerns have become a current social issue. What technological invention has prompted the rise in concern over privacy?

The advent of the Internet has created an explosion of accessibility to consumer information. Massive security breaches, like the one Target suffered in 2013, have more and more consumers worldwide sensing a loss of privacy. Every time a consumer surfs the web and clicks on a site, online marketers can place cookies on that user’s computer, showing them where he or she starts, proceeds, and ends the online encounter—as well as what he or she buys, and doesn’t. For many consumers, such close access to their behaviors is an unacceptable invasion of privacy.

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

109. Imagine that you have just been made the marketing manager for your university. Your first task is to assess your university’s immediate environment. What questions will you likely ask?

Answers will vary depending on the type of university, but should include discussion of the following:

Consumers—Who are the university’s current consumers? What are their demographic profiles, or recent changes in composition?
Company (in this case, the university)—What is the university doing well, differently from the past? What are its strengths and weaknesses?
Competition—Who are the competitors? What are their strengths and weaknesses?
Corporate partners—For a university, likely partners include alumni, the community, and vendors, particularly technology vendors. What are they offering? How can they help the university?

 

AACSB: Knowledge Application
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

110. Irvina is a general practice physician. Her office includes a number of nurses, clerical assistants, and a physician’s assistant. She runs a well-organized practice, but she depends on a variety of corporate partners to create value for her patients. Who are likely to be Irvina’s corporate partners and how do they help or hinder her efforts to create value?

Answers will vary, but will likely include discussion of the following:

* Vendors, including laboratory testing companies. Many physicians depend on quick, accurate test results to meet the needs of their clients.
* Hospitals. As a general practice physician, Irvina probably regularly sends patients to local hospitals and visits them there.
* Specialty physicians. Irvina probably sends her patients for consultations to a wide array of specialists. She depends on them for expertise and timely service.

 

AACSB: Knowledge Application
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

111. International marketers new to the United States often struggle to define American culture. What would these international marketers need to study in order to define the term and what would they be likely to learn?

They would need to study shared meanings, beliefs, morals, values, and customs of Americans. They would likely learn that there are many regional cultures in the United States with differences based on history, ethnicity, and geographic area.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

112. The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. What challenges do marketers face in assessing U.S. culture?

Many immigrants hold on to cultural values and practices from their home countries, but also embrace American lifestyles and customs. A primary challenge is to determine whether or not culture can be used as a relevant identifier for a particular target group.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

113. Baby Boomers represent a tremendous opportunity for today’s marketers. Who are the Baby Boomers? Based on their age, what might be some products that they would be interested in?

Baby Boomers are the post-World War II generation born between 1946 and 1964. The oldest Boomers are collecting Social Security and this generational cohort will be the largest population of 50-plus consumers in the United States. Examples will vary, but based on the age of Baby Boomers, they may likely be interested in beauty products that prevent aging, products related to health care and insurance, travel related products, and so on.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

114. “Income distribution in the United States has grown more polarized.” What does this mean in general, and what does it mean especially to marketers in the United States?

It means the rich are getting richer, while the purchasing power of lower- and middle-income groups is declining. For marketers it has many meanings. Marketers targeting affluent Americans know this group has considerable discretionary spending power. For marketers to lower- and middle-income groups, value and price are becoming even more important as their purchasing power languishes.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

115. At almost every major university, some group on campus pressures the university to become “greener.” What does this mean? What does it usually involve? Why would a university want to become greener?

Becoming greener on a university campus means providing more environmentally friendly goods and services. For a university, it would start with recycling but also might involve green building design, mass transportation, and environmental education. The role of universities is to educate people, including education about consumers’ impact on the environment.

 

AACSB: Knowledge Application
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

116. How can marketers identify potential opportunities?

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

117. Gaetana is the new marketing director for a local theater. One of her major responsibilities is to monitor and manage aspects of the theater’s immediate environment. What will Gaetana monitor and manage?

The three participants in consumers’ immediate environment are the company, competition, and corporate partners.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Topic: Understanding the Marketing Environment
 

 

118. Marketers in the United States are learning that Hispanic and other minority groups are not alike. How do cultural differences affect purchase decisions? What can be said about the buying power of Hispanics?

Culture influences what, why, how, where, and when groups buy things. Hispanic buying power is projected to reach $1.3 trillion in 2015, a cumulative increase of around 25 percent compared with 2010. The 50 million Hispanic consumers in the United States have increasing influences on mainstream U.S. culture. Many Hispanic families have been in the United States for multiple generations, and the consumer behavior of these highly acculturated Hispanics differs little from that of other groups of Americans.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

119. In some parts of the United States a long sandwich is called a sub sandwich. In other parts of the country it is called a grinder. This is an example of what type of macroenvironmental factor?

This is an example of a regional cultural factor.

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Social-Cultural Environment
 

 

120. Mary Grace is studying the demographics of the students attending her elementary school. What information will Mary Grace study?

She will likely look at gender, race, income, and ethnicity data.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

121. Which generational cohort members are characterized as being “Digital Natives,” having had access to the Internet their entire lives?

Generation Z

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

122. Two of the characteristics of this generational cohort that distinguishes them from Baby Boomers are that they were the first generation to grow up with both parents working, and that half of them have divorced parents. They are the first generation of latchkey children. Which generational cohort has these characteristics?

Generation X

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

123. In recent decades, how has income distribution changed in the United States?

It has become more polarized, with an increased gap between upper-income and lower-income groups.

 

AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

124. Every year Pam reassesses the economic situation in the target markets her company serves. What factors will Pam likely assess?

She will likely assess changes in inflation, exchange rates, and interest rates.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

125. An Uncle Ben’s box of rice has a symbol stating that the packaging is made from 100 percent recycled material and encourages consumers to recycle. Identify the social trend being addressed by Uncle Ben’s.

Green marketing, which is a strategy by companies to supply customers with environmentally friendly merchandise.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

126. As demographic factors, why are marketers interested in the education level, occupation, and income of consumers?

Studies show that higher levels of education lead to better jobs and higher incomes. For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate predictions of purchase behavior. For instance, a full-time college student with a part-time job may have relatively little personal income but will spend his or her disposable dollars differently than would a high school graduate who works in a factory and earns a similar income. Marketers need to be quite cognizant of the interaction among education, income, and occupation.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

127. Identify three tactics that a mid-priced motel chain might employ to take advantage of the social trends discussed in the text, in hopes of increasing its business. For each tactic, identify the social trend it is based on.

Answers will vary, depending on the trends the student picks to discuss; however, here are some examples:

* Health and wellness: Add a fitness center, or expand it if one already exists. If free breakfast is offered, make sure that healthy options are offered.
* Greener consumers: Implement a recycling program at the hotel, or expand the use of products made from recycled materials.
* Privacy concerns: Having a secure website for customers to book rooms and not sharing customers’ personal information with other firms.

 

AACSB: Knowledge Application
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

128. Why are generational cohorts important to marketers?

Applying age as a basis to identify consumers is quite useful to marketers. Most media are characterized by the consumers that use it. Although there are similarities between the groups, each cohort represents certain characteristics that influence how a product or service is marketed to it.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Topic: Generational Cohorts
 

 

129. Explain how gender roles have changed, and how that has influenced marketing practices in the United States.

As gender roles have become less distinct, firms are becoming more conscious of practices that reflect gender neutrality in positioning products. Stereotypical appeals are less common.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

130. Name the various social trends that impact marketing, and give one example that demonstrates how each one influences marketing practices.

Answers will vary, but should include the following social trends: a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.

 

AACSB: Knowledge Application
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

131. Discuss the political and regulatory environment of business as it relates to the protection of consumers. Name and describe at least two laws that had a major impact on fair competition, consumer protection, or industry-specific regulation.

Students should discuss in general how the political/regulatory environment relates to the marketing of products to consumers. Legislation has been enacted to protect consumers in a variety of ways. First, regulations require marketers to abstain from false or misleading advertising practices that might mislead consumers, such as claims that a medication can cure a disease when in fact it causes other health risks. Second, manufacturers are required to refrain from using any harmful or hazardous materials (e.g., lead in toys) that might place a consumer at risk. Third, organizations must adhere to fair and reasonable business practices when they communicate with consumers. For example, they must employ reasonable debt collection methods and disclose any finance charges, and they are limited with regard to their telemarketing and e-mail solicitation activities. Laws specifically mentioned might be the 1890 Sherman Antitrust Act, the 1936 Robinson-Patman Act, or the 1914 Clayton Act.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Political and Legal Environment
 

 

132. How do the economic factors of inflation, foreign currency fluctuations, and interest rates affect firms’ ability to market goods and services?

Shifts in the three economic factors make marketing easier for some and harder for others. For instance, when inflation increases, consumers probably don’t buy less food, but they may shift their expenditures from expensive steaks to less expensive hamburgers. Grocery stores and inexpensive restaurants win, but expensive restaurants lose. Consumers also buy less discretionary merchandise, though off-price and discount retailers often gain ground at the expense of their full-price competitors.
Similarly, the sales of expensive jewelry, fancy cars, and extravagant vacations decrease, but the sale of low-cost luxuries, such as personal care products and home entertainment, tends to increase.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Economic Environment
 

 

133. Name one technological advance that has impacted how consumers research and buy products. Give an example from your own experience.

Answers will vary, but could discuss smartphones, tablet computers, mobile apps, and Netflix, Pandora, or similar websites.

 

AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Technological Environment
 

 

134. How is the balance of ethnicities in the U.S. population changing, and what implications does this have for marketers?

Because of immigration and increasing birthrates among various ethnic and racial groups, the United States continues to grow more diverse. Since different ethnic groups have different cultural values and buying patterns, marketers must stay on top of this trend and adjust their marketing accordingly.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Topic: Demographic Environment
 

 

135. What is greenwashing and why do consumers need to be aware of it?

Greenwashing is exploiting a consumer by disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment. Consumers need to question whether a firm is spending significantly more money and time advertising being green and operating with consideration for the environment than actually spending these resources on environmentally sound practices.

 

AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-04 Identify various social trends that impact marketing.
Topic: Social-Cultural Environment
 

 

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