Deck 5: Analyzing the Marketing Environment

Question 1

People participate in many cultures, which makes it all the more important for marketers to have products or services that can relate to more than one particular group.

Answer 1

True

Question 2

Marketers focus on developing universal products or services that can be identifiable by and relevant to all groups of people.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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.

Question 5

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

Question 6

The macroenvironmental factors that marketers must consider are the company, competition, and corporate partners.

Question 7

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.

Question 8

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

Question 9

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

Question 10

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

Question 11

Inflation refers to the cost of borrowing money.

Question 12

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

Question 13

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.

Question 14

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

Question 15

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.

Question 16

Generation X is the biggest cohort since the original postwar World War II boom.

Question 17

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

Question 18

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

Question 19

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.

Question 20

Members of Generation Y are the children of Baby Boomers.

Question 21

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' needs, wants, and ________ change over time.

A) location
B) ability to purchase
C) cultural groups
D) just-in-time processes
E) demographics

Question 22

Marketers must consider the entire business process from the point of view of the

A) macroenvironment.
B) corporate partners.
C) immediate environment.
D) competition.
E) consumer.

Question 23

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.

Question 24

As a retail clothing store manager, Randy frequently asks his staff what customers are saying, what they are asking for, and what they are coming into the shop wearing. He also attends the fashion symposium that's held every quarter in the town's main shopping district. 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.

Question 25

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

Question 26

Yuri, the marketing director of Make It Move, is considering developing a promotional campaign for a new fitness program. The fitness industry is already filled with strong competitors. Before initiating the campaign, then, Yuri will need to assess his competitors' strengths, weaknesses, and likely reactions to his firm's

A) promotional activities.
B) core competencies.
C) just-in-time processes.
D) customer satisfaction reviews.
E) corporate partners.

Question 27

The framework that allows a firm to outline how customers, the company, competitors, and corporate partners affect marketing strategy is called the

A) macroenvironment analysis framework.
B) marketing environment analysis framework.
C) consumer analysis framework.
D) immediate environment analysis framework.
E) competitive analysis framework.

Question 28

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

Question 29

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.

Question 30

Select a key trait that best describes Generation Y.

A) varies the most in age, ranging from teenagers to adults who have their own families
B) the largest population of 50-plus consumers
C) was born immediately after World War II
D) was the first generation of latchkey children
E) have had access to the Internet for their entire lives

Question 31

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.

Question 32

A firm's macroenvironment includes all of the following except

A) competition.
B) culture.
C) demographics.
D) economics.
E) political/legal issues.

Question 33

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.

Question 34

Corporate partners work with a focal company to make and supply products and services to consumers.

Question 35

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

Question 36

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.

Question 37

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 that marketers must consider.

Question 38

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.

Question 39

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.

Question 40

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.

Question 41

After conducting some targeted research, Bugaboo International decided to design a new type of children's stroller that would appeal more to men: a high-tech, black-and-chrome version with dirt bike tires. This research was based on

A) cultural expectations.
B) social trends.
C) demographic data.
D) marketers' general perceptions.
E) green marketing.

Question 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.

Question 43

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.

Question 44

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.

Question 45

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.

Question 46

________ 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

Question 47

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 exemplified displays of

A) regional culture.
B) the unification effect.
C) country culture.
D) acculturation.
E) the Walmart Effect.

Question 48

Marketers will often decide which population segments to target based on income because income determines consumer

A) purchasing power.
B) education level.
C) marketing influence.
D) desirability.
E) occupational level.

Question 49

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.

Question 50

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

Question 51

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.

Question 52

Typical demographic data include all of the following except

A) gender.
B) income.
C) race.
D) education.
E) language differences.

Question 53

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

A) society.
B) politics.
C) demographics.
D) macroenvironment.
E) culture.

Question 54

The first "latchkey" children belong to which generational cohort?

A) Baby Boomers
B) Generation W
C) Generation X
D) Generation Y
E) Generation Z

Question 55

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 digital technologies such as the Internet and social networks.

A) Baby Boomers
B) Generation W
C) Generation X
D) Generation Y
E) Generation Z

Question 56

When a company attempts to appeal to the same target market across countries, for example, by using the same images and copy on a specific product advertisement but changing only the language in which the copy is displayed, that company is taking into account

A) regional culture.
B) consumer culture.
C) geographic culture.
D) country culture.
E) marketing culture.

Question 57

When developing their marketing strategies to appeal to different audiences, marketers must consider

A) country culture and regional culture.
B) regional culture and subregional culture.
C) urban culture and suburban culture.
D) urban culture and rural culture.
E) country culture and state culture.

Question 58

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

Question 59

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.

Question 60

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

A) dress
B) symbols
C) demographics
D) language
E) social trends

Question 61

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

Question 62

Which of the following groups were born into a world where the Internet and other digital technologies already existed?

A) Baby Boomers
B) Generation W
C) Generation X
D) Generation Y
E) Generation Z

Question 63

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.

Question 64

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.

Question 65

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.

Question 66

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 purchasing behavior.

Question 67

The results of the 2010 census suggest that the number of black households earning more than $75,000 has increased by 47 percent since 2005. Why is this detail important to marketers?

A) They have become more affluent, which positively impacts their purchasing power.
B) They have become more affluent, which negatively impacts purchasing power.
C) They have become more suburban, which has no impact on their purchasing power.
D) They have become older and therefore more careful about their purchasing power.
E) They have become a more desirable marketing segment regardless of their purchasing power.

Question 68

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.

Question 69

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.

Question 70

Greater emphasis on health and wellness concerns, greener consumers, and privacy concerns are all ________ that shape consumer values and impact marketing.

A) macroeconomic trends
B) environmental trends
C) social trends
D) competing trends
E) generational trends

Question 71

As gender roles have blurred, status, attitudes, and behaviors related to gender have shifted. This means that marketers must

A) replace all gendered marketing with nongendered marketing.
B) remove gender as a factor in their promotional materials.
C) be careful about gender neutrality in positioning their products.
D) maintain gender boundaries in all their marketing efforts.
E) reinforce the importance of gender roles.

Question 72

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

A) The high inflation rate in Mexico would increase its citizens' purchasing power.
B) The high inflation rate in Mexico would mean that its products would cost less overall.
C) Mexican products would be less expensive, while U.S.-made products would become comparatively more expensive.
D) Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.
E) U.S.-made products would become less attractive to purchase.

Question 73

Which ethnic group has shown to have increasing influence on mainstream U.S. culture, which, in turn, will impact the way firms approach their marketing strategy to this group?

A) Hispanics
B) Asians
C) Pacific Islanders
D) Native Americans
E) Eastern Europeans

Question 74

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.

Question 75

Many U.S. consumers are purchasing hybrid automobiles because they leave less of a carbon footprint. These consumers are called

A) green consumers.
B) smart consumers.
C) hybrid consumers.
D) economical consumers.
E) greenwashing consumers.

Question 76

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 consideration.
C) will create opportunities to provide value to each group.
D) will vanish once the recession ends.
E) is attributable to more people shopping online.

Question 77

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.

Question 78

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

Question 79

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 the choices are correct.

Question 80

As the fastest growing ethnic population in the United states, Asian Americans represent

A) a consumer group for marketers to explore as a potential opportunity.
B) the easiest consumer group for marketers to access.
C) too populous a consumer group for marketers to segment.
D) too uniform a consumer group for marketers to segment.
E) too disparate a consumer group for marketers to segment.