Chapter 3 the Marketing Environment

GENERAL CONTENT: Multiple-Choice Questions 1. The most commercially influential demographic group in history is _____. a. Generation X b. baby boomers c. Generation Y d. seniors e. infants (Answer: b; p. 70; Easy) 1. All of the groups within a company are called the _____. a. culture b. diversity c. internal environment d. climate e. range (Answer: c; p. 66; Moderate) 2. Which of the following do suppliers not provide marketers within your firm? a. Resources to produce products and services. b. Insight into trends and competitors. c. Partners in creating and delivering customer value. . The funding for your paychecks. e. B and C (Answer: d; p. 67; Moderate)3. Which of these firms help companies to stock and move goods from their points of origin to their destination? a. Financial intermediaries. b. Physical distribution firms. c. Marketing service firms. d. Resellers. e. Modified rebuyers. (Answer: b; p. 67; Easy) 4. Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as _____. a. financial intermediaries b. physical distribution firms c. arketing service agencies d. resellers e. wholesalers (Answer: a; p. 67; Moderate) 5. Percy Original caters to a market of individuals and households that buys goods and services for personal consumption. What do we call this market? a. Business. b. Reseller. c. Government. d. Consumer. e. Marketing intermediary. (Answer: d; p. 67; Easy) 6. What is the name of the market that buys goods and services for further processing or for use in the production process? a. Business. b. Reseller. c. Wholesale. d. Consumer. e. Retail. (Answer: a; p. 67; Easy) 7. Rachel Patino works for a wholesale company called Distributors Unlimited.She is responsible for buying and selling goods at a profit to small retailers. What is her market? a. Business. b. Reseller. c. Wholesale. d. Consumer. e. Ret ail. (Answer: b; p. 67; Moderate) 8. A company’s marketing environment includes various _____ that consists of any group that has an actual or potential interest in, or impact on, an organization’s ability to achieve its objectives. a. teams b. audiences c. markets d. publics e. intermediaries (Answer: d; p. 68; Moderate) 9. This type of public is a radio station that carries news, features, and editorial opinions about your area. What is it? a. Financial. b. Media. c. Citizen-action. . Local. e. Regional. (Answer: b; p. 68; Easy)10. A consumer organization, environmental group, or minority group have challenged your firm’s stand on a local issue. This is the _____ public. a. general b. local c. government d. citizen-action e. media (Answer: d; p. 68; Challenging) 11. Your marketing environment is currently researching the size, density, location, age, and occupations of your target market. What is this environment? a. Demographic. b. Psychographic. c. VALS. d. Geographic. e. Product use. (Answer: a; p. 69; Moderate) 12. Statisticians have projected the world’s population to reach _____ billion by the year 2030. . 6. 5 b. 6. 9 c. 7. 5 d. 7. 9 e. 8. 1 (Answer: e; p. 69; Easy) 13. The three largest age groups in America are the baby boomers, Generation X, and _____. a. seniors b. Generation Y c. teens d. toddlers e. infants (Answer: b; p. 70; Moderate) 14. You distribute coupons to every person in America. Sooner or later, you will reach all _____ million people in this country. a. 267 b. 277 c. 287 d. 296 e. 297 (Answer: d; p. 70; Easy)15. Research has shown that the most important demographic trend in the United States is the _____. a. changing age structure of the population b. mobility of people c. slowing birth rates d. ncrease in professional jobs e. aging population (Answer: a; p. 70; Moderate) 16. Some baby boomers are referred to as â€Å"DINKs. † What does this stand for? a. Dependable income, no-kids couple. b. Donâ €™t work, intelligent, no-kicks. c. Dual-income, no-kids couple. d. Doing it and not knowing. e. None of the above. (Answer: c; p. 70; Easy) 17. Baby boomers were born between the years 1946 and _____. a. 1954 b. 1960 c. 1964 d. 1970 e. 1980 (Answer: c; p. 70; Easy) 18. This demographic age group is approaching life with a new stability and reasonableness in the way they live, think, eat, and spend.They are _____. a. Generation X . Generation Y c. baby busters d. baby boomers e. teenagers (Answer: d; p. 71; Easy) 19. Which group includes urban professionals that likely prefer an apartment to a house in the suburbs? a. Generation X. b. Generation Y. c. Baby boomers. d. Baby busters. e. All of the above. (Answer: a; pp. 71–72; Easy) 20. This group shares new cultural concerns, cares about the environment, and responds favorably to socially responsible companies. Who are they? a. Generation X. b. Generation Y. c. Generation Z. d. Baby boomers. e. Teenagers. (Answer: a; p. 71 ; Challenging) 21. Who are the echo boomers? a. Generation X. b. Generation Y. c.Generation Z. d. Baby boomers. e. Baby busters. (Answer: b; p. 72; Moderate) 22. This group has created large kid and teen markets. Who are they? a. Generation X. b. Generation Y. c. Generation Z. d. Baby boomers. e. The Elderly. (Answer: b; p. 72; Easy) 23. Recently you read a marketing research report that mentioned _____ has (have) utter fluency and comfort with computer, digital, and Internet technology. a. Generation X b. Generation Y c. the elderly d. preschool children e. baby boomers (Answer: b; p. 72; Moderate) 24. Defining people by their birth date may be less effective than segmenting them by their _____ or _____. a. ncome; occupation b. lifestyle; occupation c. lifestyle; life stage d. occupation; life stage e. gender; sexual preference (Answer: c; p. 74; Challenging) 25. It is interesting to note that about _____ percent of American households contain married couples with children. a. 24 b . 28 c. 32 d. 34 e. 41 (Answer: d; p. 75; Moderate) 26. The three groups of baby boomers include leading, _____, and trailing. a. core b. general c. secondary d. central e. primary (Answer: a; p. 74; Moderate) 27. _____ households are now growing faster than _____ households. a. Traditional; nontraditional b. Large; traditional c. Nontraditional; smaller d.Nontraditional; traditional e. Male-dominant; female-dominant (Answer: d; p. 74; Moderate) 28. In 1950, women made up 30 percent of the workforce; now they make up _____. a. 35 percent b. 40 percent c. 43 percent d. 46 percent e. 60 percent (Answer: e; p. 74; Moderate) 29. Americans are very mobile. Over the past two decades, the U. S. population has shifted toward the _____ states. a. Midwest b. Western c. Sunbelt d. Southeastern e. New England (Answer: c; p. 75; Easy) 30. Within given regions, the population is moving from large cities to ______. a. farming communities b. rural areas c. foreign countries d. suburbs e. coastal to wns Answer: d; p. 75; Moderate) 31. Nearly 40 million Americans are working out of their homes with electronic conveniences. They are called the _____ market. a. telecommuters b. SOHO c. mobile d. work-at-home e. lazy (Answer: b; p. 75; Challenging) 32. Population shifts interest marketers because people in different regions _____ differently. a. eat b. think c. buy d. act e. all of the above (Answer: c; p. 75; Easy) 33. The Facts For You research firm has just released a report that one of these groups of workers has declined during the last 20 years. Which one is it? a. White collar. b. Blue collar. c. Service. d. Unemployed. e.Restaurant employees. (Answer: b; p. 76; Moderate) 34. Marketers need to know that almost everyone in this country is a native. Which country is it? a. China. b. Bolivia. c. Japan. d. Korea. e. The United States. (Answer: c; p. 76; Easy) 35. Because of increased _____, Americans will demand higher quality products, books, magazines, travel, personal compute rs, and Internet services. a. income b. family size c. education d. social class awareness e. none of the above (Answer: c; p. 76; Easy) 36. It is important for marketers to know that the _____ population growth is 12 times greater than the Caucasian growth rate. a. Hispanic b. minority . Asian d. African American e. Pacific Islander (Answer: b; p. 77; Challenging)37. Most large companies know they must now target specially designed _____ and _____ to ethnic groups in the United States. a. advertising; services b. services; promotions c. products; promotions d. services; labeling e. TV commercials; newspaper ads (Answer: c; p. 77; Moderate) 38. Which members of this group are more likely than the general population to have professional jobs, own a vacation home, own a notebook computer, and own individual stocks? a. Yuppies. b. Gays and lesbians. c. Baby boomers. d. Echo boomers. e. Environmentalists. (Answer: b; p. 7; Challenging) 39. This group of Americans totals 54 million. Who are they? a. Baby boomers. b. People born in American. c. People with disabilities. d. People with foreign-born parents. e. None of the above. (Answer: c; p. 78; Moderate) 40. The _____ environment consists of factors that affect consumer purchasing power and spending patterns. a. social-cultural b. political-legal c. technological d. economic e. natural (Answer: d; p. 79; Easy)41. Marketers would do well to take heed of the fact that this group is somewhat careful about its spending but can still afford the good life some of the time. Who are they? a. Lower class. . Lower-middle class. c. Middle class. d. Upper class. e. Lower-upper class. (Answer: c; pp. 78–79; Easy) 42. The group of expenses that use up most household income are _____. a. food, housing, retirement planning b. housing, insurance, taxes c. food, housing, transportation d. housing, taxes, transportation e. food, travel, electronics (Answer: c; p. 79; Moderate) 43. Ernst Engel’s laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on _____ declines and the percentage spent on _____ remains about constant. a. food; clothing b. clothing; recreation/entertainment c. ood; transportation d. food; housing e. recreation/entertainment; retirement planning (Answer: d; p. 80; Challenging)44. One of the major concerns for marketers about the natural environment is the _____. a. number of protestors against misuse b. shortages of raw materials c. increases in recycling d. offshore oil exploration e. none of the above (Answer: b; p. 80; Easy) 45. The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the _____. a. raw material market b. natural environment c. endangered environment d. green movement e. factors of production (Answer: b; p. 0; Easy) 46. As a marketer of pesticides, you should be concerned about all of the following natural environment trends ment ioned in your text except _____. a. shortages of raw materials b. increased pollution c. increased government intervention d. government subsidies e. increased acid rain (Answer: d; p. 81; Challenging) 47. What movement has spawned the marketer’s awareness of environmentally sustainable strategies? a. EPA. b. Black market. c. Green movement. d. Deregulation. e. Green intervention. (Answer: c; p. 81; Moderate) 48. Which of the following represents the most dramatic force shaping a marketer’s destiny? a.Technological environment. b. Natural environment. c. Legal-political environment. d. Deregulation. e. Partnership marketing. (Answer: a; p. 81; Easy) 49. New technologies create new opportunities and new _____. a. products b. services c. markets d. means of financing purchases e. headaches (Answer: c; p. 82; Moderate) 50. Which country leads the world in research and development spending? a. England. b. Germany. c. Sweden. d. Japan. e. The United States. (Answer: e; p. 8 4; Moderate) 51. Marketers are aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.Not only are the baby boomers wealthier, which has likely influenced trends in the lake area, but the population is better educated that has allowed people to demand more from the market. (p. 70; Moderate) 162. Among some of the older patrons of The Landing was negative talk about Casey’s converting his business into a bar. What are two examples of social responsibility that Casey could embrace in an effort to offset that negativity? Casey could sponsor local ball teams, for example, or he could contribute to or help with the Witmer Lake Enhancement Committee. p. 85; Moderate) 163. What possible shifts in cultural values may once again impact Casey’s mission at The Landing? Casey will likely continue to track preferences of the baby boomers because this population group has been the primary driver of his business. As more baby boomers retire and age and choose to spend more time with grandchildren, life at the lake may again become a focal point in the baby boomers’ lives. (p. 87; Challenging) 164. What current characteristics of Casey’s business indicate that we have moved from a â€Å"me society† to a â€Å"we society†?The Landing is now merely surviving as a bar indicates that more people want to â€Å"be with others,† as the text indicates. (p. 88; Challenging) 165. What might allow Casey Brickly to now take a more proactive stance in responding to the marketing environment? Casey has owned The Landing for more than four decades; therefore, he may have a more innate sense of how to deal with his market. In addition, he understands who his primary customers have been; therefore, he could be able to better predict their preferences. (p. 90; Moderate)