Name: Marketing 6th Edition By Grewal - Test Bank
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Complete Test Bank With Answers

Sample Questions Posted Below

Chapter 05

Test Bank

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

potential opportunities.

TRUE

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: Stakeholders effect on Marketing Strategy

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

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

FALSE

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: Stakeholders effect on Marketing Strategy

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

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

TRUE

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: Stakeholders effect on Marketing Strategy

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

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

FALSE

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: Stakeholders effect on Marketing Strategy

Feedback: Consumers may be influenced directly by the immediate actions of the focal company, the company’s competitors, or corporate partners that

work with the firm to make and supply products and services to consumers.

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

TRUE

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: Stakeholders effect on Marketing Strategy

Feedback: Consumers may be influenced directly by the immediate actions of the focal company, the company’s competitors, or corporate partners that

work with the firm to make and supply products and services to consumers.

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

FALSE

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.

5-1

McGraw-Hill Education.Topic: Demographic Environment

Feedback: Transmitted by words, literature, and institutions, is passed down from generation to generation and learned over time.

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

TRUE

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

Feedback: Demographics provide an easily understood snapshot of the typical consumer in a specific target market.

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

FALSE

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

Feedback: Foreign currency fluctuations can influence consumer spending. 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.

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

FALSE

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

Feedback: Macroenvironmental factors are external factors such as culture, demographics, social trends, technological advances, economic situation,

and political/regulatory environments. The factors listed in the question relate to the immediate environment.

10. Members of Generation Y are also called Millennials.

TRUE

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: The group of people born between 1977 and 2000 are referred to as Generation Y, Gen Y, or Millennials, and include the more than 60

million people born in the United States between 1977 and 2000.

11. As the children of the Baby Boomers, Generation X is the biggest cohort since the original postwar World War II boom.

FALSE

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: As the children of the Baby Boomers, Generation Y is the biggest cohort since the original postwar World War II boom.

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

FALSE

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

5-2

McGraw-Hill Education.Topic: Demographic Environment

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

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

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

Feedback: 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.

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

TRUE

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

Feedback: 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.

15. Companies such as Burger King no longer use cartoon characters to promote products such as burgers and fries because the characters do not retain

popularity among young children for very long.

FALSE

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

Feedback: Companies such as Burger King no longer use cartoon characters to promote products such as burgers and fries because new advertising

guidelines do not allow linking unhealthy foods with cartoon characters and celebrity figures.

16. Socially responsible marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and

services.

FALSE

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

Feedback: services

Green marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and

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

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

Feedback: 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.

18. The next broad wave of mobile applications is likely to expand the use of wireless payments through applications such as Apple Pay, Google Wallet,

5-3

McGraw-Hill Education.Master Card’s Easy Pay, and Softcard Mobile Wallet, all of which enable customers’ phones to serve as m-wallets.

TRUE

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

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

19. Inflation refers to the cost of borrowing money.

FALSE

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

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

20. The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free

market a national goal.

TRUE

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

Feedback: The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade

within a free market a national goal

21. Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that remain consistent over time.

FALSE

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: Stakeholders effect on Marketing Strategy

Feedback: Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that change and evolve over time.

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

TRUE

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: Stakeholders effect on Marketing Strategy

Feedback: Firms collaborate with other firms to produce and market their products.

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

difference.

TRUE

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

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

5-4

McGraw-Hill Education.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

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

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

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

FALSE

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

Feedback: 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.

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.

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: Stakeholders effect on Marketing Strategy

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

27. The centerpiece of the marketing environment analysis framework is

A. the economy.

B. corporate partners.

C. culture.

D. competitive intelligence.

E. 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: Stakeholders effect on Marketing Strategy

Feedback: The consumer is the center of all marketing efforts.

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

A. competition.

B. culture.

C. demographics.

D. economics.

E. political/legal issues.

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

5-5

McGraw-Hill Education.Feedback: Competition is part of the immediate environment, not the macroenvironment.

29. The center of all marketing efforts is

A. profits.

B. the consumer.

C. corporate social responsibility.

D. top management.

E. 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: Stakeholders effect on Marketing Strategy

Feedback: The consumer is the centerpiece of the marketing environment.

30. The creation of CVS Health’s mobile apps in connection with its onsite MinuteClinics is a response to a _________ trend that surrounds health and

wellness concerns.

A. marketing

B. social

C. media

D. technological

E. service

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Macroenvironmental Factors

Feedback: Health and wellness concerns have spurred a number of mobile apps, many of which help customers get or stay in shape by tracking exercise,

calorie intake, and sleep cycles. CVS Health’s apps help its consumers stay well.

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.

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: Stakeholders effect on Marketing Strategy

Feedback: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than

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

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.

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: Stakeholders effect on Marketing Strategy

Feedback: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than

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

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

5-6

McGraw-Hill Education.change(s) over time.

A. ethnic background

B. needs, wants, and ability to purchase

C. culture

D. just-in-time processes

E. demographics

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: Stakeholders effect on Marketing Strategy

Feedback: Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that change and evolve over time.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Evaluate

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: 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.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Macroenvironment

Feedback: 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.

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.

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

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

telephone solicitations.

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.

5-7

McGraw-Hill Education.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: Stakeholders effect on Marketing Strategy

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

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.

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: Stakeholders effect on Marketing Strategy

Feedback: 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.

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.

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: Stakeholders effect on Marketing Strategy

Feedback: 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.

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 response to his promotional activities.

B. demographics.

C. just-in-time processes.

D. satisfaction quotient as perceived by customers.

E. ethical values.

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: Stakeholders effect on Marketing Strategy

Feedback: 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.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

5-8

McGraw-Hill Education.Difficulty: 1 Easy

Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.

Topic: Stakeholders effect on Marketing Strategy

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

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.

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: Stakeholders effect on Marketing Strategy

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

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.

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

Feedback: The macroenvironment consists of factors external to the firm.

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.

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

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

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.

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

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

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

5-9

McGraw-Hill Education.A. social concerns.

B. political parties.

C. demographics.

D. generational cohorts.

E. 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

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

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

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

influence what, why, how, where, and when we buy.

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.

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

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

attacks.

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.

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

Feedback: 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.

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

5-10

McGraw-Hill Education.D. language

E. social trends

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

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

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.

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

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

52. The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely

A. decrease national cultural identity.

B. reduce regional cultural differences.

C. make it difficult to collect demographic information.

D. create a demand for a new generational cohort.

E. make it more difficult for companies to differentiate their products.

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

Feedback: Regional cultures represent differences between regions of a country. The more people move from one region to another, the more the

cultures will tend to blend and become more similar.

53. Typical demographic data include all of the following except

A. gender.

B. income.

C. race.

D. education.

E. language differences.

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

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

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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

5-11

McGraw-Hill Education.Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.

Topic: Demographic Environment

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

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

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

Feedback: Consumers in a generational cohort—a group of people of the same generation—have similar purchase behaviors because they have shared

experiences and are in the same stage of life.

56. Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards 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.

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

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

demographic information.

57. ________ is 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

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

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

58. Marketers wanting to use social media to reach consumers should understand that people in the _______ group 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

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Technological Environment

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

world.

5-12

McGraw-Hill Education.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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

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

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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Macroenvironment

Feedback: 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; in comparison, the bottom 90 percent control only 26.9 percent.

61. ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking 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

term for this practice is

A. deceptive advertising.

B. greenwashing.

C. environmental exploitation.

D. virtual greening.

E. enviromarketing.

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

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

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Macroenvironment

Feedback: Income distribution has gotten increasingly unequal in the United States, with high-income groups getting richer and low-income groups

getting poorer.

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.

5-13

McGraw-Hill Education.D. will vanish once the recession ends.

E. is attributable to technological expertise of immigrant groups.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Macroenvironment

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

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

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

Feedback: 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.

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. accurate predictions of purchase behavior.

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

Feedback: For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate

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 dollars 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.

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

Feedback: 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.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5-14

McGraw-Hill Education.Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: Years ago gender roles appeared clear, but those male and female roles have been blurred. In particular, women today outperform men

scholastically, earn higher grades on average, and graduate from both high school and college at greater rates. Perhaps unsurprisingly, recent studies

also show that approximately 15 percent of married women in Western economies earn more than their husbands do in the workplace. These shifts in

status, attitudes, and behaviors affect the way many firms need to design and promote their products and services.

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.

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

Feedback: 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, such that 47 percent are between the ages of 18 and 49 years (a key age demographic for many marketers).

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.

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

Feedback: Approximately 80 percent of all population growth in the next 20 years is expected to come from African American, Hispanic, and Asian

communities. Among the different groups, Hispanic buying power was projected to reach $1.3 trillion in 2015, a cumulative increase of around 25

percent compared with 2010.

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, San Francisco, and Chicago.

D. coastal resort areas.

E. Great Lakes agricultural areas.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: Although they can be found anywhere, many foreign-born Americans and recent immigrants tend to concentrate in a handful of metropolitan

areas, such as New York, Los Angeles, San Francisco, and Chicago.

71. Though Asian Americans comprise only about 5.6 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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

5-15

McGraw-Hill Education.Topic: Demographic Environment

Feedback: 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 be more likely to be professionally employed or own a business.

72. Strategic efforts to supply consumers with environmentally friendly merchandise are called

A. reduce, reuse, recycle.

B. green marketing.

C. the green generation.

D. the inconvenient truth.

E. earth 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

Feedback: Green marketing refers to the marketing of environmentally conscious products.

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

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

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

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

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

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

value.

75. Every time a consumer surfs the web and clicks on a site, online marketers can place _____ on that user’s computer, showing them where the user

starts, proceeds, and ends the online encounter—as well as what the user buys and doesn’t buy.

A. web portals

B. cookies

C. browsers

D. bookmarks

E. pirates

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

Feedback: 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

the user starts, proceeds, and ends the online encounter—as well as what the user buys and doesn’t buy. For many consumers, such close access to their

behaviors is an unacceptable invasion of privacy.

5-16

McGraw-Hill Education.76. What retailer, in 2013, suffered a massive security breach that allowed hackers to steal credit and debit card information for millions of customers?

A. Macy’s

B. Target

C. Kmart

D. Sears

E. JCPenney

AACSB: Ethics

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

Feedback: In recent years there have been a number of hacking scandals, perhaps most notably the 2013 Target breach that put millions of customers’

credit and personal information at risk.

77. What 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

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

Feedback: 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.

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.

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

Feedback: 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.

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.

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

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

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.

5-17

McGraw-Hill Education.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.

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

Feedback: 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.

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.

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

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

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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: Members of Generation Z (Gen Z) are also known as Digital Natives because people in this group were born into a world that already was

full of electronic gadgets and digital technologies such as the Internet and social networks.

83. Which of these is a macroenvironmental factor?

A. culture

B. corporate partners

C. competition

D. company

E. competencies

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: Macroenvironmental Factors

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

84. When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?

A. green marketing

B. time-poor society

C. cultural diversity

D. technological advances

E. regulatory issues

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Apply

5-18

McGraw-Hill Education.Difficulty: 3 Hard

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Social-cultural Environment

Feedback: 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.

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.

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

Feedback: 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.

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 might consider 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.

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

Feedback: Near-field communication technology takes payments, coupons, and loyalty card data from customers as they walk by the scanner. The next

broad wave of mobile applications is likely to expand the use of wireless payments through applications such as Apple Pay, Google Wallet, Master

Card’s Easy Pay, and Softcard Mobile Wallet, all of which enable customers’ phones to serve as m-wallets.

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.

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

Feedback: Greenwashing is the practice of claiming environmental benefits for your product that are not genuine.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

5-19

McGraw-Hill Education.Difficulty: 1 Easy

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Social-cultural Environment

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

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.

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

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

90. Christy, a marketing executive who was born in 1955, advocated that her company focus on a print campaign for its new line of lipsticks rather than

spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?

A. Baby Boomer

B. Gen X

C. Gen Y

D. Gen Z

E. Millennials

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: Baby Boomers are people born after World War II, between 1946 and 1964. Previous generations of consumers often relied on insights and

advice from big, glossy fashion magazines. Even when marketers recognize and appreciate the size and opportunity that Millennial consumers, who

spend much of their time online, represent, many marketers—especially those who have reached executive positions after long careers—continue to

devote the bulk of their media spending to channels that Millennials simply don’t use that much anymore, such as magazines and television.

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

A. Baby Boomer

B. Gen X

C. Gen Y

D. Gen Z

E. the Digital Natives

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: Generation Y members are also called Millennials.

92. The poorest 10 percent of the U.S. population earned less than _______ per week in 2014.

A. $2,500

B. $1,801

C. $1,265

D. $920

E. $412

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: For 2014, the average weekly income of the richest 5 percent of the population was more than $3970, the average (median) weekly income

for the United States as a whole was $1031, and the poorest 10 percent of the population earned less than $412 per week.5-20

McGraw-Hill Education.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 an increase 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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Evaluate

Difficulty: 3 Hard

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Social-cultural Environment

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

have suggested.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Macroenvironmental Factors

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

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

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

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

96. Which of the following specifically prohibits monopolies?

A. Sherman Antitrust Act

B. Federal Trade Act

C. Robison-Patman Act

D. Financial Reform Law

E. Consumer Product Act

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

Feedback: 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.

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.

5-21

McGraw-Hill Education.D. Consumers buy lower-priced foods.

E. Consumers buy less food.

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

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

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. Tax

D. Tariff

E. A user fee

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

Feedback: Interest rates represent the cost of borrowing money.

99. In the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro

and the dollar were nearly equivalent. This change in value is called

A. interest destabilization.

B. inflation.

C. recession.

D. foreign currency fluctuations.

E. global financial impact.

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

Feedback: Foreign currency fluctuations can influence consumer spending. For instance, in the summer of 2002 the euro was valued at slightly less than

US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent.

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.

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

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

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.

AACSB: Technology

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

5-22

McGraw-Hill Education.Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Technological Environment

Feedback: 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.

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.

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

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

for public approval.

103. Nearly what percentage of U.S. adults now recycle their soda bottles and newspapers?

A. 10 percent

B. 20 percent

C. 50 percent

D. 75 percent

E. 90 percent

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

Feedback: Nearly half of U.S. adults now recycle their soda bottles and newspapers, European consumers are even more green.

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

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

Feedback: 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.

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 American

E. African American

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: 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.5-23

McGraw-Hill Education.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

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: This describes African Americans.

107. A generational cohort is a group of people

A. who purchase only one brand of a product throughout their lifetime.

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.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

Feedback: This is the definition of generational cohort.

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: Understand

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: Stakeholders effect on Marketing Strategy

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:

5-24

McGraw-Hill Education.* 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: Stakeholders effect on Marketing Strategy

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 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: Apply

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

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 targeting 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: 05-03 Describe the differences among the various generational cohorts.

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

5-25

McGraw-Hill Education.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: Stakeholders effect on Marketing Strategy

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: Stakeholders effect on Marketing Strategy

118. Marketers in the United States are learning that Hispanic and other minority groups are not alike. How do cultural differences affect purchase

decisions?

Due to immigration and increasing birthrates among various ethnic and racial groups, the United States continues to grow more diverse. 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. Culture influences what, why, how, where, and

when groups buy things. Lifestyle changes within these groups will have an effect on their purchases. For example, as African Americans are

increasingly moving to the suburbs, Home Depot has developed particular appeals featuring national figures such as Tom Joyner and Steve Harvey to

target this demographic.

AACSB: Analytical Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

119. Describe the buying power and characteristics of the Hispanic consumer.

Hispanic buying power was 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 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. For

example, they use credit cards, are minimally influenced by advertising and product placements, exhibit greater sensitivity to in-store promotions, and

are likely to shop online and from catalogs.

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 the local 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. Describe Digital Natives, and explain the impact of technological advances on this group.

Members of Generation Z (Gen Z) are also known as Digital Natives because people in this group were born into a world that already was full of

electronic gadgets and digital technologies such as the Internet and social networks. These technologies are being developed and adopted at an

unprecedented rate. Whereas it took 38 years for the radio to be adopted by 50 million people and 13 years for television, it only took 2 years for the

same number of consumers to sign up for Facebook.

AACSB: Analytical Thinking

Blooms: Apply

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

5-26

McGraw-Hill Education.122. As the marketing manager of the ABC company, how would you explain the significance of the Millenial market, and how would you target the

company’s advertising to this group?

According to Forrester Research, 91 percent of Millennials are active Internet users. To reach the web, 59 percent of them use smartphones, 35 percent

rely on tablets, and 70 percent employ their laptops. Across these various uses, this younger generation of consumers spends an average of 25 hours

online every week. Their electronic media usage is not the only impressive number describing these consumers: The Millennial market encompasses

approximately 105 million consumers, with annual buying power of about $200 billion.

AACSB: Analytical Thinking

Blooms: Apply

Difficulty: 1 Easy

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

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: 05-03 Describe the differences among the various generational cohorts.

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: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

127. Identify three tactics that a midpriced 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: Have a secure website for customers to book rooms and don’t share 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

5-27

McGraw-Hill Education.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: Demographic Environment

129. As the marketing manager of the ABC company, you understand that gender roles are not as clear as they were years ago. What factors do you

consider in your promotion of the company’s products to women?

Women today outperform men scholastically, earn higher grades on average, and graduate from both high school and college at greater rates. Recent

studies also show that approximately 15 percent of married women in Western economies earn more than their husbands do in the workplace.

AACSB: Analytical Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 05-03 Describe the differences among the various generational cohorts.

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 Robison-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

5-28

McGraw-Hill Education.Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Macroenvironment

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: 05-03 Describe the differences among the various generational cohorts.

Topic: Demographic Environment

135. You are the marketing manager of a fast-food business that wants to appeal to consumers focused on improving their health. Citing an example

from the text, what marketing initiatives would you suggest the company take?

Answers will vary, but should include that new advertising guidelines require marketers to produce food in reasonably proportioned sizes. Advertised

food items must provide basic nutrients, have less than 30 percent of their total calories from fat, and include no added sweeteners. The advertising also

cannot be aired during children’s programming, and companies cannot link unhealthy foods with cartoon and celebrity figures. For example, the

SUBWAY FRESH FIT FOR KIDS™ offerings meet the American Heart Associations’s criteria for a heart-healthy meal, since it includes lean protein,

fruits, vegetables, grains, and milk, all for less than 500 calories. It has even partnered with Disney in a Star Wars-related TV ad promoting healthy

children’s meals.

AACSB: Analytical Thinking

Blooms: Apply

Difficulty: 2 Medium

Learning Objective: 05-04 Identify various social trends that impact marketing.

Topic: Social-cultural Environment

Category # of Questions

AACSB: Analytical Thinking 110

AACSB: Ethics 1

AACSB: Knowledge Application 18

AACSB: Technology 6

Accessibility: Keyboard Navigation 107

Blooms: Analyze 1

Blooms: Apply 24

Blooms: Evaluate 3

Blooms: Remember 47

Blooms: Understand 60

Difficulty: 1 Easy 49

Difficulty: 2 Medium 63

Difficulty: 3 Hard 23

Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy. 23

Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions. 25

Learning Objective: 05-03 Describe the differences among the various generational cohorts. 39

Learning Objective: 05-04 Identify various social trends that impact marketing. 48

Topic: Demographic Environment 40

Topic: Economic Environment 10

Topic: Macroenvironment 8

Topic: Macroenvironmental Factors 3

Topic: Political and Legal Environment 6

Topic: Social-cultural Environment 37

Topic: Stakeholders effect on Marketing Strategy 23

Topic: Technological Environment 8

5-29

McGraw-Hill Education.

Marketing 6th Edition By Grewal – Test Bank

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