Deck 3: Collecting Information and Forecasting Demand

Question 1

In the U.S., people born between the years ________ are called boomers.

A) 1978 and 2002
B) 1946 and 1964
C) 1925 and 1945
D) 1965 and 1985
E) 1920 and 1940

Answer 1

B

Question 2

A ________ is a "large social, economic, political, and technological change that is slow to
Form, and once in place, influences us for some time-between seven and ten years, or longer."

A) fad
B) fashion
C) trend
D) megatrend
E) style

Answer 2

D

Question 3

A company can take several steps to improve the quality of its marketing intelligence. Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards?

A) training and motivating the sales force to spot and report new developments
B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports

Answer 3

B

Question 4

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents which are then sent to various departments.

A) payroll system
B) market research process
C) human resources system
D) expense cycle
E) order-to-payment cycle

Question 5

The heart of the internal records system is the ________.

A) pay-roll system
B) purchase order cycle
C) order-to-payment cycle
D) expense cycle
E) human resources system

Question 6

A ________ is "unpredictable, short-lived, and without social, economic, and political significance."

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 7

The company's marketing information system should be a mix of what managers think they need, what managers really need, and ________.

A) what the marketing research department is able to do
B) what consumers are willing to consume
C) what the government policies allow
D) what is acceptable at the industry level
E) what is economically feasible

Question 8

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n)________.

A) independent customer goods and service review forum
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor or sales agent feedback site

Question 9

A growing population does not mean growing markets unless ________.

A) the people are under a democratic system of government
B) there is common ownership of all resources
C) people have sufficient purchasing power
D) there is adequate governmental intervention in the market
E) the government has a budget surplus

Question 10

By equipping its sales force with handheld devices with bar-code readers and Internet connections to speed inventory assessment, TaylorMade allows sales executives to have significantly more time to interact with their consumers. This is an example of the use of technology in improving ________.

A) sales information systems
B) payroll systems
C) cookies
D) cohort segmentation
E) competitive intelligence gathering

Question 11

A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.

A) sales-force surrogates
B) intermediaries
C) external networks
D) advisory panels
E) customer feedback systems

Question 12

Which of the following is true about trends in worldwide population growth?

A) Birthrates are on the rise in developed countries.
B) Overall, the world population growth is declining.
C) Birthrates are on the rise in developing countries.
D) Death rates are rising in developing countries.
E) Population growth is highest in developing countries.

Question 13

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system

Question 14

A ________ is a direction or sequence of events that has some momentum and durability; it reveals the shape of the future and can provide strategic direction.

A) fad
B) fashion
C) trend
D) megatrend
E) style

Question 15

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to?

A) training and motivating the sales force to spot and report new developments
B) motivating distributors, retailers, and other intermediaries to pass along important intelligence
C) hiring external experts to collect intelligence
D) using external network
E) purchasing information from outside research firms and vendors

Question 16

The internal records system supplies results data, but the marketing intelligence system supplies ________ data.

A) internal
B) revenue
C) thematic
D) happenings
E) process

Question 17

When gathering marketing intelligence, companies often use the 2000 U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration?

A) A company can purchase information from outside suppliers.
B) A company can take advantage of government data sources.
C) A company can use online customer feedback systems to collect data.
D) A company can network externally.
E) A company can use its sales force to collect and report data.

Question 18

The sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________.

A) combo sites
B) distributor or sales agent feedback sites
C) public blogs
D) independent service review forums
E) customer complaint sites

Question 19

As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research.

A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau

Question 20

Companies can practice targeted marketing by using ________-records of Web site usage stored on personal browsers.

A) plug-ins
B) black swans
C) cookies
D) trolls
E) honey-pots

Question 21

Which of the following is the largest contributor to global warming, contributing almost a quarter of the carbon dioxide in the environment?

A) transportation
B) industrial production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires

Question 22

Each society contains ________, groups with shared values emerging from their special life experiences or circumstances.

A) stakeholders
B) cliques
C) consumer bundles
D) subcultures
E) behavioral niches

Question 23

________ beliefs and values are passed from parents to children and reinforced by social institutions-schools, churches, businesses, and governments; they are very difficult to change.

A) Transient
B) Secondary
C) Protected
D) Core
E) Variable

Question 24

According to the 2000 Census, which of the following is the largest group in the United States?

A) Whites
B) Hispanics
C) African Americans
D) Chinese Americans
E) Asian Indians

Question 25

In the U.S., consumer expenditures on homes and big ticket items tend to slacken during recessions because ________.

A) the consumers generally have a low debt-to-income ratio
B) of steady supply of loanable funds in the economy during recession
C) the consumers have a high debt-to-income ratio
D) consumer borrowing increases during recession
E) of stringent credit policies adopted by the Fed before the onset of recession

Question 26

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ are a major market for movies, music, surfing, and camping.

A) Makers
B) Preservers
C) Escapers
D) Changers
E) Developers

Question 27

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually eat, dress, and live well.

A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Question 28

Which of the following is likely to occur during economic downturns?

A) People tend to spend more on luxury goods
B) Consumption of necessary goods decline
C) Long term credit is available at concessional rates of interest
D) The purchasing power of the people declines
E) The level of investment in the economy rises

Question 29

Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' ________.

A) views of others
B) views of organizations
C) views of themselves
D) views of the universe
E) views of society

Question 30

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc?

A) views of ourselves
B) views of organizations
C) views of others
D) views of nature
E) views of the universe

Question 31

Firms find "reverse innovation" advantage by ________.

A) introducing a commodity in a developed country and then distributing it globally
B) introducing a commodity in a developing country and then distributing it in other developing countries
C) introducing a commodity in a developing country and then distributing it globally
D) introducing a commodity in a developed country and then distributing it in developing countries
E) introducing a commodity in a developed country and then distributing it in other developed countries

Question 32

Which of the following is true about the growth of the Hispanic population in the U.S.?

A) Hispanics made up 11 percent of all new workers in the past decade.
B) The disposable income of Hispanics has not grown as fast as that of the rest of the population.
C) Hispanics now outnumber African Americans in the U.S.
D) Family incomes of Hispanics have grown at a rate double that of the rest of the population.
E) Hispanics are the fastest growing consumer group in the U.S.

Question 33

In response to the U.S. income distribution trend toward ________, Levi-Strauss introduced premium Levi's Capital E line to upscale retailers and the economy Levi Strauss Signature line to mass-market retailers.

A) very low incomes
B) mostly low incomes
C) mostly high incomes
D) mostly medium incomes
E) low and high incomes

Question 34

The three largest subgroups of the Hispanics in the U.S. are ________, ________, and ________.

A) Puerto Rican; Mexican; Chilean
B) Salvadoran; Cuban; Dominican
C) Mexican; Puerto Rican; Cuban
D) Brazilian; Mexican; Cuban
E) Salvadoran; Dominican; Columbian

Question 35

________ refer to groups of individuals who are born during the same time period and travel through life together.

A) Cohorts
B) Populations
C) Clans
D) Societies
E) Ethnic groups

Question 36

Which of the following economies provide limited opportunities to international marketers to develop product sales?

A) capitalist economies
B) subsistence economies
C) raw-materials-exporting economies
D) industrializing economies
E) industrialized economies

Question 37

Which of the following would be the best illustration of a secondary belief or value?

A) belief in work
B) belief in giving to charity
C) belief in getting married
D) belief in getting married early
E) belief in being honest

Question 38

By 2010, projections indicate that the largest category of households will be composed of ________.

A) childless married couples and empty nesters
B) single-parent families
C) single live-alones
D) singles living with nonrelatives
E) married couples with children

Question 39

People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing.

A) Makers
B) Escapers
C) Seekers
D) Changers
E) Developers

Question 40

The traditional household consists of ________.

A) a husband, wife, and children (and sometimes grandparents)
B) a group of related persons living together
C) two or more families living together
D) a man and a woman living together (whether married or not)
E) related or unrelated persons who share living arrangements

Question 41

With an increase in marketing expenditure, market demand ________.

A) continues to increase at an increasing rate
B) initially increases and then declines
C) increases first at an increasing rate, then at a decreasing rate
D) decreases first and then spikes
E) continues to increase at a decreasing rate.

Question 42

When the government of any country restricts the sale of a particular commodity to certain groups-for example, restricting sales of alcohol to individuals above the age of 21-the eligible consumers who have income, interest, access and qualification constitute the ________.

A) accessible market
B) target market
C) potential market
D) qualified potential market
E) qualified available market

Question 43

Firms whose products require ________ resources-oil, coal, platinum, zinc, silver-face substantial cost increases as depletion approaches.

A) infinite
B) near finite
C) finite renewable
D) finite nonrenewable
E) perishable

Question 44

The ________ market is the part of the qualified available market the company decides to pursue.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 45

Which of the following is the second largest contributor to global warming, accounting for roughly a fifth of carbon emissions?

A) transportation
B) primary metal production facilities
C) electrical power plants
D) aerosol cans
E) rural cooking fires

Question 46

An unintended effect of business legislation is ________.

A) restricting fair competition in the market
B) encouraging unbridled business behavior
C) reducing the social cost of producing a particular commodity
D) exposing consumers to unfair trade practices
E) slowing economic growth

Question 47

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

A) Company demand
B) Area market potential
C) Market demand
D) Company sales potential
E) Total market potential

Question 48

An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers.

A) human rights
B) consumerist
C) environmental
D) self-determination
E) materialistic

Question 49

The consumer environmental segment termed ________ claims to be knowledgeable about environmental issues, but does not express pro-green attitudes or behaviors. Indeed, it is practically hostile toward pro-environmental ideas. This segment has chosen to reject prevailing notions about environmental protection and may even be viewed as a potential threat to green initiatives.

A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Question 50

Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful?

A) demonstrate that the products will benefit both customers and the society in the long-term
B) emphasize benefits to the consumer rather than environmental benefits
C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers
D) engage in "greenwashing" to highlight the environmental benefits of the product
E) explain the rules and regulations laid out by governmental agencies to protect the environment

Question 51

The demand estimates of an organization comprise of five space levels. They are world, country, region, territory, and ________.

A) zone
B) organization
C) customer
D) product
E) input

Question 52

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 53

Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ for this product.

A) potential market
B) available market
C) target market
D) projected market
E) penetrated market

Question 54

The ________ market is the set of consumers who are buying the company's product.

A) potential
B) available
C) target
D) penetrated
E) reserve

Question 55

The consumer environmental segment termed ________ holds the view that the environment is not a huge concern and that business and industry is doing its part to help. This may explain why they don't feel the need to take action themselves-even as they cite lots of barriers to doing so. They are also the largest consumer environmental segment.

A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Question 56

When a company is said to have engaged in "greenwashing," it means that ________.

A) the company has significantly changed its business processes to incorporate a greener, more environmentally friendly philosophy
B) the company has moved its production facilities to countries where environmental laws and regulations are less rigorous
C) the company has changed its "green" image in order to appeal to a different, usually older, demographic
D) the company's products are not nearly as green and environmentally beneficial as its marketing might suggest
E) the company has undertaken a campaign to lobby for tougher environmental regulations for the industry

Question 57

Which of the following consumer environmental segments cares a great deal about the environment, but doesn't seem to have the knowledge or resources to take action?

A) not me greens
B) business first greens
C) mean greens
D) go-with-the-flow greens
E) dream greens

Question 58

Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles the situation discussed above?

A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production.
B) Government restricts industries from purchasing farmland thereby increasing agricultural produce.
C) Government subsidizes export of beef to promote production of beef cattle.
D) Government pollution control norms increase the production of pollution control equipment.
E) Government restricts unfair trade practices to promote international trade.

Question 59

Companies can prepare as many as ________ different types of demand estimates.

A) 6
B) 30
C) 60
D) 90
E) 150

Question 60

Which of the following is true about the technology trends that marketers should monitor?

A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side.
B) Today, the time between idea and implementation is expanding.
C) More single companies rather than consortiums are directing research efforts toward major breakthroughs.
D) The pace of change is accelerating today.
E) The government has decreased regulation of technological change.

Question 61

________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.

A) Sales budget
B) Company sales forecast
C) Sales quota
D) Company sales potential
E) Market potential

Question 62

Which of the following is true of the various elements of the multi-factor index method of estimating area market potentials?

A) Zip+4 code centers generally have stable boundaries and a population of about 4000.
B) The weights in the buying-power index are somewhat arbitrary.
C) Normally, the lower the BDI, the less room there is to grow the brand.
D) Census tracts are a little larger than neighborhoods.
E) This method is primarily used by business marketers.

Question 63

A company's sales potential would be equal to market potential if ________.

A) the marketing expenditure of the company is reduced to zero
B) industry marketing expenditures approach infinity for a given marketing environment
C) the market is non-expandable
D) market minimum is equal to market potential
E) the company gets 100 percent share of the market

Question 64

A company can expect to expand its market share to a large extent when ________.

A) it has a high market-penetration index
B) its share-penetration index is low
C) its share-penetration index is high
D) its product-penetration percentage is high
E) it has a low market potential

Question 65

For which of the following categories of products will demand forecasting be easiest?

A) commodities which are in the initial stage of their product life cycles
B) products which have many close substitutes in the market
C) goods which are produced in an oligopoly market
D) products whose sales fluctuate widely
E) products whose consumers are highly sensitive to change in price

Question 66

The sales goal set for a product line, company division, or sales representative of an organization is called ________.

A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Question 67

The distance between the market minimum and the market potential shows the overall ________.

A) marketing sensitivity of demand
B) market share of the firm
C) market forecast of the firm
D) product-penetration percentage
E) sales quota

Question 68

A ________ is a conservative estimate of the expected volume of sales, primarily for making
Current purchasing, production, and cash flow decisions.

A) sales budget
B) company sales forecast
C) sales quota
D) company sales potential
E) market potential

Question 69

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes.

A) $6,500 million
B) $5,000 million
C) $75 billion
D) $7,500 million
E) $10,000 million

Question 70

The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________.

A) primary demand
B) market potential
C) market minimum
D) optimum demand
E) market demand

Question 71

________ is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.

A) Company demand
B) Market demand
C) Company sales potential
D) Sales quota
E) Total market potential

Question 72

The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases.

A) group-discussion
B) market-test
C) market-buildup
D) brand development index
E) multiple-factor index

Question 73

During recession, the market demand curve which is a function of marketing expenditure ________.

A) shifts upward
B) becomes vertical
C) remains unaffected
D) shifts downward
E) slopes downward

Question 74

________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors.

A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Question 75

________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period.

A) Sales budget
B) Market demand
C) Company demand
D) Company sales potential
E) Market potential

Question 76

Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________.

A) market minimum
B) market share
C) market forecast
D) market potential
E) company demand

Question 77

Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?

A) a firm that manufactures auto parts
B) a firm that provides facility management services to large offices
C) a company that provides Web site development services for small businesses
D) a company that manufactures diagnostic machines for hospitals
E) a firm that manufactures fashionable clothes for teenagers

Question 78

A low market-penetration index indicates ________.

A) it will be expensive for the firms to attract the few remaining prospects
B) substantial growth potential for all firms
C) the rival firms try to capture greater market share by lowering their product price
D) the profit margins of the firms decline
E) the firms cannot raise demand substantially by raising its market expenditure

Question 79

Suppose Concrete Express, a cement manufacturing firm, finds that its sales have increased by 3 percent this year, while industry sales have increased by 5 percent. This implies that ________.

A) Concrete Express has acquired additional market share in relation to the cement industry
B) Concrete Express is losing its relative standing in the cement industry
C) other players in the industry are losing market share
D) the absolute market share of Concrete Express has declined
E) Concrete Express's position in relation to the industry has remain unchanged

Question 80

An efficient method of estimating area market potentials makes use of the ________, developed by the U.S. Bureau of the Census in conjunction with the Canadian and Mexican governments. It classifies all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit, hierarchical structure.

A) Thomson Reuters Business Classification
B) Global Industrial Classification Standard
C) North American Product Classification System
D) Industry Classification Benchmark
E) North American Industry Classification System