Deck 4: The Marketing Environment

Question 1

Generation Y is the most ethnically diverse generation the nation has ever seen.

Answer 1

True

Question 2

The population shift in the United States from the northeast and Midwest toward the south and southwest has had a greater effect on marketing than has any other social change.

Answer 2

False
The phenomenon of working women has probably had a greater effect on marketing than has any other social change.

Question 3

Marketers can control the external environment in which their organizations operate.

Answer 3

False
Although marketers can control the marketing mix and perhaps influence the external environment,they cannot control the external environment in which their organizations operate.

Question 4

Champion Lyte is a sugar-free sports drink.In developing the product,its manufacturer thoroughly studied the legal restrictions on the drink's ingredients,packaging,manufacturing,and labeling and has abided by all such restrictions.In this way,the manufacturer of Champion Lyte drinks conducted its examination of all political and legal factors that might affect the product's marketing.

Question 5

Basic research attempts to develop new or improved products.

Question 6

The average teen earns about $45.00 per week.

Question 7

A baby boomer's average life expectancy is at an all-time high of 79.2 years.

Question 8

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single,traditional lifestyle is known as aggregate lifestyles.

Question 9

On average,African Americans are nearly eight years older than all other American consumers.

Question 10

An economic recession increases demand for products and services.

Question 11

Rising incomes mean a higher standard of living.

Question 12

Demography is the study of people's vital statistics such as age and location.

Question 13

Companies use environmental management when they implement strategies that attempt to shape the external environment within which they operate.

Question 14

Inflation is a measure of the decrease in the value of money,expressed as the percentage reduction in value since the previous year.

Question 15

Social change is perhaps the most difficult external variable for marketing managers to forecast,influence,or integrate into marketing plans.

Question 16

The Hispanic population is driving minority growth in the United States.

Question 17

The Natural Marketing Institute predicts that American consumers will become less environmentally oriented over the next decade as economic concerns become dominant in most people's lives.

Question 18

Marketers need a thorough understanding of the laws established by the federal government,state governments,and regulatory agencies.

Question 19

Generation Y was the first generation of latchkey children--products of dual-career and/or divorced households.

Question 20

Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness.Since the product was designed primarily for diabetics,healthcare professionals who treat diabetics are its primary target market.

Question 21

Quaker Oats and other cereal manufacturers have developed what they call "breakfast-with-one-hand" products-no-mess breakfast bars and drinks that can be consumed while commuting.The popularity of on-the-go food is largely the result of changes in _____ factors.

A)natural environmental
B)demographic
C)technological
D)social
E)political

Question 22

The Sherman Act of 1890 establishes protection for trademarks.

Question 23

In many African nations,people live on less than $5.00 per day.To grow here,Procter & Gamble (P&G)must persuade these people to purchase items they have lived without forever.As a result,P&G sells one-ounce packages of Ariel laundry soap for as little as 10 cents in this market.P&G responded to _____ factors when it developed these small packages.

A)demographic
B)competitive
C)technological
D)social
E)component lifestyle

Question 24

When a company engages in _____,it is implementing strategies that attempt to shape the external environment within which it operates.

A)synergistic control
B)environmental management
C)environmental control
D)market control
E)reactive management

Question 25

The external environment:

A)can be controlled in much the same manner as the internal marketing mix
B)cannot be influenced by marketing managers
C)does not change over time
D)does not have an impact on Fortune 500 companies
E)must be continually monitored by marketing managers

Question 26

The competitive environment of a business encompasses the number of competitors the firm must face,the relative size of these competitors,regulatory agencies,and the degree of interdependence within the industry.

Question 27

Consumers' concern for health issues affects the way food is marketed.For example,marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful.Consumers' concern for health issues is a(n)_____ factor.

A)economic
B)political and legal
C)technological
D)demographic
E)social

Question 28

Which of the following statements best describes the typical target market?

A)A target market will remain stable over time,including the same group of consumers.
B)Target markets change over time as consumers drop in or out of the market,and as tastes change.
C)Target markets are not strongly affected by changes in the external environment.
D)Target markets only change when the features and benefits of the product offering change.
E)Target markets cannot be specifically defined according to age,income,or location,because these factors are continually changing.

Question 29

Colorific recently began competing with Crayola coloring products.At the beginning of the school year,the _____ for Colorific products consists of back-to-school shoppers.

A)target market
B)buying center
C)mass market
D)consumer sample
E)aggregated demography

Question 30

_____ factors are environmental factors that include our attitudes,values,and lifestyles.

A)Social
B)Economic
C)Political
D)Competitive
E)Demographic

Question 31

Which of the following is the most difficult for marketing managers to forecast,influence,or integrate into marketing plans?

A)Technology
B)Social change
C)Demography
D)Competition
E)Economic conditions

Question 32

Marketing managers cannot control _____,but they can sometimes influence it.

A)where advertising is placed
B)the external environment
C)the sales force
D)the distribution strategy
E)product pricing

Question 33

If you were to ask Americans what they most desire to make their lives easier,most will want more time.This feeling that there are not enough hours in a day is an example of a(n)_____ factor that has strongly influenced the marketing environment.

A)social
B)economic
C)legal
D)demographic
E)component lifestyle

Question 34

All of the following are factors in the external environment affecting marketing EXCEPT:

A)the marketing mix
B)economic conditions
C)technology
D)political and legal factors
E)the competition

Question 35

The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels.Promoters and venue operators prevented the passage of this bill,arguing that it would require them to make value judgments for which they were ill equipped.The promoters and operators engaged in:

A)internal marketing
B)illegal practices
C)environmental management
D)reengineering
E)corporate espionage

Question 36

The publisher of Ebony magazine has forged an alliance with Dan River,Inc.to create luxury bed and bath products for the newly developed Ebony Home brand.Ebony Home will use the publisher's long history and expertise to market to the African American market.The African American market is the _____ for the Ebony Home brand.

A)target market
B)buying center
C)aggregated unit
D)consumer cluster
E)demographic sample

Question 37

Many people in the United States choose to drink light beer because they value thin and fit bodies.In Europe,light beers have had little success because flavor is valued more highly.For international beer manufacturers,this difference illustrates how _____ influence(s)marketing.

A)demography
B)competition
C)social factors
D)economic conditions
E)technology

Question 38

Shark fin soup is a favorite Thai food.When a San Francisco-based organization claimed that the leading producer's soup contained mercury poison,its sales plummeted.The popularity of this soup in Thailand represents a(n)_____ factor,while Thailand's lax enforcement of environmental protection and consumer protection regulations are a(n)_____ factor.

A)economic;technological
B)social;technological
C)social;political and legal
D)competitive;economic
E)social;technological

Question 39

A(n)_____ is a defined group that managers feel is most likely to buy a firm's product.

A)target market
B)buying center
C)aggregated unit
D)consumer cluster
E)demographic sample

Question 40

After Hal Li purchased and installed a wood-burning stove to heat his family home,the stove caught fire and damaged much of the house.He believes the stove had inadequate insulation.Li should voice his concerns to the Federal Trade Commission.

Question 41

One of the fastest growing tween markets is:

A)Technology
B)Home décor
C)Energy drinks
D)entertainment
E)Athletic apparel

Question 42

What do self-sufficiency,upward mobility,work ethic,and conformity have in common?

A)These are no longer valued attitudes
B)They are attitudes that can easily be changed
C)These are three perceptions that Americans have of the Asian lifestyle
D)These are three of the core values that influence lifestyles in the United States
E)They are the determinants of a component lifestyle

Question 43

The study of people's vital statistics,such as age,race and ethnicity,and location,is called:

A)cultural sociology
B)psychometrics
C)ecology
D)ethnography
E)demography

Question 44

Which of the following events has had the greatest effect on marketing?

A)The growing number of one-child families
B)The increasing number of immigrants from northern Europe
C)The growing number of people on the Internet
D)The increasing number of working women
E)The growing number of people of retirement age who are continuing work

Question 45

Zimmer-Centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery.They are particularly interested in marketing in the southwestern United States,where a large aging population lives.Which external environmental element most directly explains its continued growth?

A)Economic conditions
B)Political conditions
C)Culture
D)Demography
E)Social forces

Question 46

Girls between the ages of 8 and 12 are one of the growing markets for high-end shoe manufacturers.These girls want styles that are both youthful and grown-up looking.They are:

A)members of Generation X.
B)a cohort generation.
C)tweens.
D)baby boomers.
E)the baby bridging generation.

Question 47

Martina has begun a small garden in her backyard.She has also installed a water purification in her home,as well as a means to collect and store rainwater for future use in her garden.Martina's actions best represent which "core American value"?

A)conformity
B)social justice
C)materialism
D)upward mobility
E)self-sufficiency

Question 48

Lance is a 30-year-old,single professional who enjoys hiking,college sports,and poetry.He lives with his girlfriend but does not have plans to get married in the near future.He leads a life much different from his father,who married right after high school,had children,and worked for the same company his entire career.More and more in the U.S.consumers like Lance are enjoying _____,piecing together a variety of interests,products,and services instead of conforming to traditional stereotypes.

A)well-defined segments
B)component lifestyles
C)simple multipurpose products
D)conformity and cohesiveness
E)modular market mixes

Question 49

Merissa Champlain designs and sells clothes for young working women.Her marketing managers recently told her that she'll be in financial trouble unless she starts designing clothes suited to Gen Yers.Why is this?

A)Gen Yers are picky.
B)Gen Yers are more multicultural.
C)Baby boomers provide all of the disposable income for Gen Y members.
D)Demographically,Gen Yers are an extremely large group of consumers.
E)Gen Yers are easily swayed by traditional promotion media.

Question 50

Kendra teaches high school science.She is also a wine expert,a PTA president,and an accomplished sculptor.Her other interests include scrapbooking,gourmet cooking,and NASCAR.Marketers would categorize Kendra as:

A)fitting into a caregiver segment
B)a member of the typical education-based target segment
C)not belonging to any target market
D)having a component lifestyle
E)having a conforming lifestyle

Question 51

Lee Siracca owns two horses,brews his own beer,participates in the civic arts commission,enjoys talk radio,hikes on wilderness trails,and competes in rodeos.All of these diverse needs and interests influence his choices of the goods and services he buys.Lee has a:

A)component lifestyle
B)demographically oriented lifestyle
C)multicultural demographic position
D)fragmented market orientation
E)segmented buying strategy

Question 52

Which of the following statements about Generation Y is true?

A)Its members were born between 1965 and 1978.
B)Members are multitaskers and want to be in the know.
C)The members of Generation Y are pressed for time and spend more on personal services than any other age group.
D)Members of Generation Y are the first generation of latchkey kids.
E)All of these statements are true.

Question 53

A(n)_____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single,traditional lifestyle.

A)aggregated lifestyle
B)component lifestyle
C)psychographic mode of living
D)demographically defined lifestyle
E)targeted lifestyle

Question 54

Which of the following represents the largest group of consumers in the United States?

A)Tweens
B)Gen Y
C)Gen X
D)Baby boomers
E)Boomerangs

Question 55

According to the Natural Marketing Institute,all of the following are likely consumer trends over the next ten years EXCEPT:

A)an increased focus on the acquisition of luxury items and "status symbols"
B)taking greater steps toward proactive health care
C)making "meaningful green" initiatives that affect environmental,social,and economic dimensions
D)getting off the grid
E)All of the above are likely trends

Question 56

Which of the following is NOT a demographic characteristic of a population?

A)Income level
B)Age
C)Values
D)Education
E)Birthrate

Question 57

Riot Media is a media and toy company that capitalizes on the "gross-out" humor enjoyed by boys ages 8 through 12.In other words,it targets:

A)members of Generation X.
B)a cohort generation.
C)Tweens.
D)baby boomers.
E)the baby bridging generation.

Question 58

The growth of dual-income families has resulted in:

A)burnout
B)a sense of entitlement
C)decreased discretionary income
D)decreased GNP
E)increased purchasing power

Question 59

Christopher is a Gen Yer.If he fits the typical profile of his demographic,you could reasonably expect him to:

A)frown on interracial marriages.
B)actively seek out "green" products.
C)spend much more time with friends than with family.
D)keep his opinions mostly to himself and do what authority figures tell him to do.
E)All of the above are true.

Question 60

Which of the following statements about American teenagers is correct?

A)They spend about 40 hours per week tuned in electronically.
B)About 25 percent go to the mall at least once a week.
C)More than 50 percent have a personal,online blog.
D)They prefer online friends to "real" friends.
E)They would rather shop in a store than online.

Question 61

A company that specializes in planning and organizing large family reunions has hired you to identify a target ethnic market.Which market would be ideal?

A)African American
B)Korean Americans
C)Chinese immigrants
D)Caucasians
E)Hispanics

Question 62

Which of the following ethnic demographic categories are early adopters of new technology?

A)Caucasians
B)Asian Americans
C)African Americans
D)Hispanic Americans
E)Latinos

Question 63

All of the following are taken into account in a cost of living index EXCEPT:

A)income
B)housing
C)food and groceries
D)health care
E)entertainment

Question 64

Which ethnic group prefers products from their native country?

A)Hispanic Americans
B)African Americans
C)Asian Americans
D)South Americans
E)Cuban Americans

Question 65

After-tax income is referred to as:

A)gross income
B)marginal income
C)purchasing income
D)unencumbered income
E)disposable income

Question 66

In general,Hispanic Americans:

A)prefer to buy American products rather than brands found in their homelands,because they want to be "real Americans".
B)are much older than the general U.S.population.
C)tend to be very brand loyal.
D)respond unfavorably to advertising targeted directly at them.
E)are highly aware of most mainstream U.S.brands.

Question 67

Consider a small southern town where more than half the residents are African American and the rest are white.A successful marketing campaign for this community would include:

A)internet advertising.
B)radio advertising.
C)billboards.
D)newspaper advertising.
E)none of these.

Question 68

The majority of Hispanic Americans are of _____ descent.

A)Mexican
B)Puerto Rican
C)Spanish
D)South American
E)Cuban

Question 69

_____ is a measure of the decrease in the value of money,expressed as the percentage reduction in value since the previous year.

A)Inflation
B)Recession
C)Depression
D)Consumer break-even
E)Price escalation

Question 70

_____ want to know how things work,have been encouraged to share their opinions,and care about the environment.

A)Gen Xers
B)Members of the cohort generation
C)Baby boomers
D)Gen Yers
E)Members of the baby bridging generation

Question 71

China's new 5 percent tax on disposable wooden chopsticks,reflecting concerns about deforestation,has been praised by environmentalists.The move is hitting hard at the Japanese,who consume 25 billion sets of wooden chopsticks annually.Almost all of the chopsticks used in Japan come from China.The price of wooden chopsticks in Japan has increased by almost 50 percent.The price increase influences which factor of the external environment of restaurant owners in Japan?

A)Economic
B)Technological
C)Demographic
D)Social
E)Ethnicity

Question 72

_____ is the primary determinant of a person's earning potential.

A)Race
B)Education
C)Social class
D)Gender
E)Marital status

Question 73

Consumers born between 1965 and 1978 form a group called:

A)Tweens.
B)Yuppies.
C)cohort markets.
D)America's mass market.
E)Generation X.

Question 74

The higher your _____,the higher your purchasing power:

A)gross income
B)social class
C)disposable income
D)cost of living
E)inflation index

Question 75

Diversity is emerging as a priority goal because:

A)there is a population of recent immigrants who are closely related by custom and tradition
B)of the growth of small and large ethnic groups that have little in common
C)the United States is becoming a truly multicultural society.
D)of new,effective mass-marketing techniques
E)of the focus on one large dominating racial or ethnic group

Question 76

_____ is measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas.

A)Gross individual profit
B)Purchasing power
C)Net profit
D)Relative pricing
E)Price escalation

Question 77

The group of people in the United States who were born between 1946 and 1964 are known as:

A)Gen Xers.
B)gray markets.
C)synergistic cohorts.
D)the baby bust generation.
E)baby boomers.

Question 78

Recession,inflation,and consumers' incomes are the _____ factors of greatest concern to most marketers.

A)economic
B)socio-demographic
C)political
D)government
E)consumption

Question 79

According to the text,the 45-year-old magazine,Essence Magazine,reaches _____of all black females aged 18 to 49.

A)50 percent
B)roughly one-quarter
C)almost one-third
D)one third
E)over 75 percent

Question 80

Which demographic category represents the lowest percentage of the U.S.population,but has the highest average family income?

A)Asian Americans
B)African Americans
C)Caucasians
D)Hispanic Americans
E)get their news from newspapers rather than television or the radio.