Deck 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Question 1

One of the world's largest publishers was totally unprepared for recent increases in the demand for digital books. During 2011, the sale of e-books exceeded the sales of traditional printed paperback books for the first time. If the publisher had __________, it would have been more prepared for this shift in its marketing environment.

A)optimized its distribution by eliminating local and chain store bookstores (like Borders) that failed to meet their sales quotas
B)noticed the change in the demographics of book readers in general
C)noticed the behavioral changes in moviegoers, who now prefer to view 2D and 3D movies in IMAX theaters
D)shifted funds from product development to advertising
E)tracked, as part of its ongoing environmental scanning activities, the sales of e-books and e-book readers sold by others

Answer 1

E

Question 2

Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now only collects state sales taxes from customers who reside in California - its home state. This pending legislation would be an example of which environmental force?

A)social
B)economic
C)technological
D)competitive
E)regulatory

Answer 2

E

Question 3

As the director of marketing for Littleton Hospital, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?

A)The number of people in the geographic area who are 65 years or older will increase by 23 percent during the next five years.
B)By the year 2015, baby boomers will control more than 50 percent of all consumer expenditures in the U.S.
C)The Littleton community has seen a rise in dual-income households.
D)By the year 2025, robotics will play a major role in surgical procedures.
E)Twenty percent of the local population is of Hispanic origin.

Answer 3

A

Question 4

The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of the high value of the merchandise, The Lemon Tree's management is investing in the use of computerized inventory controls and sales order processing. The LEAST important environmental force to The Lemon Tree at this time is likely to be

A)economic.
B)competitive.
C)technological.
D)social.
E)regulatory.

Question 5

Which of the following statements regarding environmental scanning is the most accurate?

A)Environmental scanning changes the marketing environment.
B)Environmental scanning identifies and interprets potential trends.
C)Environmental scanning should be done at least every five years.
D)Environmental scanning focuses primarily on ecological factors.
E)There is too much information generated from environmental scanning to make it viable for small firms.

Question 6

All of the following statements about the environmental forces that have influenced Facebook are true EXCEPT:

A)the Federal Trade Commission (FTC) has had a laissez faire policy of not interfering with the development and marketing of Facebook and other social media websites.
B)technological advances in data storage, server speed, and software integration have made Facebook fast and convenient.
C)Google and Facebook are becoming fierce competitors for the role of society's depository of information.
D)the cost of wireless connectivity, Internet service, and smartphones rapidly declined and made social networking affordable for consumers around the world.
E)people became increasingly interested in the social aspects of the Internet, sharing more and more information about themselves.

Question 7

Facebook has approximately what fraction of the world's population as customers?

A)one-half
B)one-third
C)one-quarter
D)one-fifth
E)one-seventh

Question 8

Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures, and listen to music. Improved features are added with each smartphone introduced by Apple, Samsung, BlackBerry, and the like. As a result, existing customers often want to replace their existing smartphones with new models or brands every two years when their contracts expire. This increase in demand is due mostly to changes in __________, an environmental force.

A)competition
B)social culture
C)technology
D)regulations
E)the economy

Question 9

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is referred to as

A)significant trend analysis.
B)organizational scanning.
C)environmental scanning.
D)a SWOT analysis.
E)marketing intelligencE.Key term definition - environmental scanning.

Question 10

Environmental trends arise from all of the following forces EXCEPT:

A)competitive.
B)economic.
C)regulatory.
D)geographical.
E)social.

Question 11

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environmental force?

A)social
B)economic
C)technological
D)competitive
E)regulatory

Question 12

The set of environmental forces that consists of the demographic characteristics of the population and its culture is referred to as

A)social forces.
B)economic forces.
C)consumer forces.
D)cultural forces.
E)market forces.

Question 13

Environmental scanning refers to

A)assessing any possible negative impact a firm's activities might have on the local ecology.
B)continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
C)setting up a regular schedule to assess the performance of different divisions within a firm.
D)initiating an internal talent search to identify employees who can think "outside the box" to generate solutions to marketing problems caused by changes in the marketing environment.
E)requiring all employees to spend time outside the office to avoid the "ivory tower" syndromE.Key term definition - environmental scanning.

Question 14

Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force?

A)economic, since few can afford a newspaper today
B)competitive, resulting from new, smaller local newspapers that are flourishing
C)technological, since high-speed printing presses have become more easy to use
D)social, resulting from changing consumer preferences for information delivered online
E)regulatory, since the government provides tax incentives for paper-based products

Question 15

The social forces in the environment include the __________ of the population and its culture.

A)living standards
B)social classes
C)cohorts
D)ethics
E)demographic characteristics

Question 16

The demographic characteristics of the population and its culture are referred to as

A)attitudinal forces.
B)psychographic forces.
C)social forces.
D)cultural forces.
E)market forces.

Question 17

A firm conducting an environmental scan of the marketplace might uncover key __________ like the impact of new robot technology and the growth of online privacy and regulation.

A)profits
B)responsibilities
C)idealisms
D)codes
E)trends

Question 18

Many large consulting firms are beginning to sponsor "women-only" networking events. The purpose of these events is to offer an opportunity for women in management to network with other businesswomen, either as clients, mentors, or protégés. This is an example of which environmental force?

A)social
B)economic
C)technological
D)competitive
E)regulatory

Question 19

The purpose of environmental scanning is to

A)only identify trends in the marketplace.
B)only interpret trends in the marketplace.
C)only forecast trends in the marketplace.
D)identify, interpret, and forecast trends in the marketplace.
E)only identify and interpret trends in the marketplacE.The purpose of environmental scanning is to identify and interpret trends in the marketplace that affect the marketing activities of the firm.

Question 20

A growing trend to "Buy American" has caused U.S. automakers to increase political pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In addition, a decline in the value of the U.S. dollar would be instrumental in Toyota's decision to build a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota builds the plant, its decision would reflect

A)a reactive strategy that would impact the competitive environmental force.
B)a proactive maneuver to manipulate and impact the social environmental force.
C)a positive result from regulatory and economic environmental forces.
D)a positive response to a technological environmental force.
E)a negative impact as a result of adverse competitive, regulatory, and technological environmental forces.

Question 21

In 2005, when MySpace was the leading social network, News Corp., owner of The Wall Street Journal and Fox News, bought the firm for $580 million. But its membership declined precipitously due to changing consumer preferences, and News Corp., sold MySpace to a group of investors for a paltry $38 million in mid-2011. This is an example of how __________ forces impact the marketing environment.

A)economic
B)competitive
C)social
D)technological
E)regulatory

Question 22

Projections show that the population is __________.

A)growing in most developed countries
B)declining in most developing countries
C)decreasing in Africa
D)increasing in Asia
E)decreasing in Latin America

Question 23

Studies of the __________ characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse.

A)cultural
B)psychographic
C)geographic
D)demographic
E)economic

Question 24

The most recent estimate indicates that the population of the world today is about __________.

A)5.0 billion
B)6.3 billion
C)7.1 billion
D)7.9 billion
E)9.5 billion

Question 25

By 2050, the world's population is expected to be __________.

A)5.0 billion
B)5.7 billion
C)6.1 billion
D)7.9 billion
E)9.6 billion

Question 26

The term that describes the change in the growth of the world's population is called the __________.

A)population contraction
B)population inversion
C)population migration
D)population explosion
E)population eruption

Question 27

The country expected to have the largest population in 2050 is __________.

A)the United States
B)India
C)China
D)Russia
E)Brazil

Question 28

Which of the following would be identified as a social force in an environmental scan?

A)a new consumer protection law
B)an increase in Asian immigration
C)an advanced technology is perfected
D)a decrease in consumer incomes
E)a new international firm exports to the United States

Question 29

More magazine is a publication designed to appeal to women aged 40 and over. Demand for such magazines is an example of how changing __________ characteristics impact the marketing environment.

A)cultural
B)behavioral
C)psychographic
D)occupational
E)demographic

Question 30

Which of the following statements regarding social forces is most accurate?

A)Social forces can have a dramatic impact on marketing strategy.
B)As a social force, consumer incomes have more impact on marketing strategy than demographics.
C)Social forces within an organization motivate employees to improve their productivity.
D)Social forces determine all of the other environmental forces that affect an organization.
E)Of all the environmental forces, social forces are the easiest for a marketer to manipulatE.The social forces of the environment include the demographic characteristics of the population and its culture. Changes in these forces can have a dramatic impact on marketing strategy.

Question 31

Demographics characteristics that describe a population include all of the following EXCEPT:

A)income.
B)age.
C)occupation.
D)zip code.
E)ethnicity.

Question 32

The description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as __________.

A)product group profiling
B)demographics
C)behavioral analysis
D)psychographics
E)statistical analysis

Question 33

Generally, the U.S. population is becoming

A)smaller, younger, and more diverse.
B)smaller, older, and more diverse.
C)larger, younger, and less diverse.
D)larger, younger, and more diverse.
E)larger, older, and more diversE.Studies of the demographic characteristics of the U.S. population suggest that it is becoming larger, older, and more diverse.

Question 34

Demographics refer to

A)the description of a population according to its values or cultural beliefs.
B)an objective measurement of a person's likelihood to purchase a product or service.
C)the psychological profile of prospective consumers.
D)the density of a population in a geographic area.
E)the description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Question 35

The social forces of the environment include the demographic characteristics of the population and its __________.

A)geographic locations
B)social classes
C)cohorts
D)culture
E)ethics

Question 36

An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced by

A)the increased sales of Cigar Aficionado magazine.
B)First Lady Michelle Obama's Let's Move! initiative to eliminate childhood obesity.
C)the opening of more Starbucks coffee boutiques in supermarkets.
D)the upsizing of menu items at fast food restaurants.
E)the introduction of tablet devices such as the iPad.

Question 37

With a proper environmental scan, changes in the demographic characteristics of the population and its values can have a dramatic impact on __________.

A)the marketing concept era
B)marketing tactics
C)market share
D)marketing metrics
E)marketing strategy

Question 38

Which of the following demographic trends has significant implications to global marketers?

A)the declining populations in Latin American countries
B)the size of the markets in India and China
C)the tripling of the population of consumers under 40 years old
D)the decreasing interest in entrepreneurship in developing countries
E)the lack of savings of elderly populations in developed countries

Question 39

Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe that it will likely generate a fresh cycle of female-targeted romances packaged for the mainstream reader. This is an example of a(n) __________ force impacting the marketing environment.

A)economic
B)competitive
C)technological
D)social
E)regulatory

Question 40

The population explosion has occurred

A)primarily in the developing countries of Latin America, Asia, and Africa.
B)evenly throughout the world.
C)primarily in the United States due to high birth rates and immigration.
D)primarily in the countries of the European Union due to high birth rates and immigration.
E)primarily in developed countries due to better economic, infrastructure, and healthcare conditions.

Question 41

In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises readers that "The company has helped you enjoy your time with the kids and it can now help you enjoy your time without them." The ad is most likely targeted toward which generational cohort?

A)Generation X
B)baby busters
C)Generation Y
D)the greatest generation
E)baby boomers

Question 42

All of the following factors contribute significantly to the rate of change of a country's population (such as the U.S.) EXCEPT:

A)life expectancy (the average number of years a population lives from birth).
B)immigration (the number of people who enter a country for the purpose of permanent residence).
C)population density (defined as the total number of people per square mile/kilometer).
D)birth rate (the number of births during a specified time period).
E)death rate (the number of deaths during a specified time period).

Question 43

Olay's promotions for its Total Effects cleansing cloths, which fight signs of aging skin, are targeted toward

A)echo-boomers.
B)Generation Z.
C)Generation Y.
D)baby boomers.
E)baby busters.

Question 44

Generation Y is defined as the generation of children born __________.

A)between WWI and WWII
B)between 1946 and 1964
C)between 1965 and 1976
D)between 1977 and 1994
E)since the millennium

Question 45

The generational cohort known as __________ was born during the baby bust era when the number of children born each year was declining.

A)Generation Z
B)Generation Y
C)millennials
D)Generation X
E)baby boomers

Question 46

The 50 million people of the population born between 1965 and 1976, also called the baby bust, refers to __________.

A)Generation X
B)millennials
C)Generation Y
D)Generation Z
E)baby boomers

Question 47

Baby boomers can be defined as the generation of children born __________.

A)between 1918 and 1945
B)between 1946 and 1964
C)between 1965 and 1976
D)between 1977 and 1994
E)since 1995

Question 48

Americans born between 1977 and 1994 are referred to as __________.

A)Generation X
B)baby boomers
C)Generation Y
D)baby busters
E)Generation Z

Question 49

The name given to the generational cohort who are described as self-reliant, supportive of racial and ethnic diversity, and better educated than previous generations is __________.

A)Generation Z
B)Generation Y
C)millennials
D)Generation X
E)baby boomers

Question 50

The Prudential ad shown above is targeted at which generational cohort?

A)echo-boomers
B)Generation Xers
C)Generation Yers
D)baby boomers
E)baby busters

Question 51

Generation X

A)is the least healthy generation since the 1940s.
B)accounts for the largest amount of consumer spending.
C)is the largest segment of business travelers.
D)is interested in distinctive, memorable, and personal experiences.
E)includes younger members known as millennials.

Question 52

The generation of children born between 1946 and 1964 is referred to as

A)baby busters.
B)millennials.
C)Generation Y.
D)baby boomers.
E)Generation X.

Question 53

Generation X is the label often given to

A)persons born between 1965 and 1976.
B)persons 65 years old and older.
C)those who survived the great depression.
D)the "greatest generation" born between the baby boomer generation and their parents that were called Generation W, the World War II generation.
E)those people who were born since the millennium.

Question 54

Generation X is defined as the generation of children born __________.

A)between 1946 and 1964
B)between WWI and WWII
C)between 1965 and 1976
D)between 1977 and 1994
E)since the millennium

Question 55

Generation Y is sometimes referred to as

A)echo-boomers.
B)baby boomers.
C)baby busters.
D)the downtrodden generation.
E)Generation 25.

Question 56

By 2030, the U.S. population is expected to exceed

A)273 million.
B)314 million.
C)323 million.
D)358 million.
E)414 million.

Question 57

Which generational cohort, which is now the largest cohort in terms of business travel, is the Lufthansa Airlines ad above most likely trying to reach?

A)Generation X
B)baby boomers
C)Generation Z
D)baby busters
E)Generation Y

Question 58

Which of the following has currently affects the baby boomer generation, and thus those that market to them, in a significant way?

A)They are beginning to have children.
B)They are getting their high school and college educations.
C)They are currently retiring or nearing retirement age.
D)They are just being born.
E)They are beginning their primary school educations.

Question 59

The 50 million people of the population born between 1965 and 1976, also called the __________, refers to Generation X.

A)Generation Y
B)baby bust
C)millennials
D)baby boomers
E)Generation Z

Question 60

Generation X consumers are

A)likely to rely on others.
B)authoritative decision-makers.
C)very prone to extravagance.
D)generally supportive of racial and ethnic diversity.
E)poorly educated.

Question 61

For millennials, environmental sustainability means __________.

A)engaging in free market economics with fair but limited regulations to manage exchange relationships
B)social responsibility, or having organizations being accountable to society for their actions
C)exploiting a nation's natural resources for the betterment of its society
D)seeking advanced jobs in agriculture that emphasize economies of scale in farming and ranching
E)executing an aggressive strategy regarding oil and natural gas exploration to make the United States energy independent

Question 62

When compared to Generation X, members of Generation Y are most likely to influence

A)children's designer clothing lines.
B)health care and insurance.
C)all forms of communication.
D)retirement plans.
E)automobile design.

Question 63

All of the following are commonly held values in the United States EXCEPT:

A)equality.
B)action.
C)belief in fate.
D)continuous change.
E)personal control.

Question 64

By 2015, which racial or ethnic group will have the greatest economic impact in the U.S. in terms of its buying power?

A)Asian Americans
B)Hispanics
C)African Americans
D)American Indian and other native populations
E)Indian immigrants (from India)

Question 65

Which one of the following is a value that would be commonly held in the United States today?

A)individualism
B)tradition
C)group welfare
D)nostalgia
E)acceptance of birthright

Question 66

Members of Generation Y are most likely to influence

A)children's designer clothing lines.
B)health care and insurance.
C)retirement plans.
D)video games.
E)automobile design.

Question 67

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races are referred to as __________ marketing programs.

A)panethnic
B)generational
C)cross-cultural
D)multicultural
E)regional

Question 68

Approximately one in __________ U.S. residents is African American, American Indian or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander.

A)ten
B)seven
C)five
D)three
E)two

Question 69

Members of Generation Y are idealistic and eager to get started making the world a better place. One way they hope to achieve their goal is through __________.

A)environmental sustainability
B)political activism
C)intergenerational dialogue
D)fiscal conservatism
E)educational reform

Question 70

Members of Generation Y, also known as __________, are interested in sustainability in order to make the world a better place.

A)activists
B)sustainers
C)progressives
D)reformers
E)millennials

Question 71

Multicultural marketing refers to combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different __________.

A)races or ethnic groups
B)nations
C)religions
D)generational cohorts
E)genders

Question 72

The generation of children born between 1977 and 1994 is sometimes referred to as

A)echo busters.
B)baby busters.
C)the lost generation.
D)the baby boomerang.
E)the millennials.

Question 73

The Sierra Club is the oldest continuously operating environmental organization. By 2001, its growth had plateaued. To rekindle interest in the organization, its members elected a new 23-year-old president who promised to use MTV artists to create public service announcements about the organization targeting his generational cohort, who are members of

A)Generation X.
B)Generation Y.
C)Generation Z.
D)baby busters.
E)baby boomers.

Question 74

Culture is a component of what type of environmental force that must be scanned to assess its impact on the organization's marketing environment?

A)regulatory
B)technological
C)competitive
D)economic
E)social

Question 75

HSBC Bank International Ltd., Europe's largest bank, selected its advertising agency because that agency was "always sensitive to the possibility that something might not translate well or may offend superstitions about colors or numbers" that are common in some groups. Its advertising agency was incorporating

A)psychographic differences.
B)population inputs.
C)multicultural marketing.
D)a value consciousness.
E)macroeconomics.

Question 76

All of the following statements are true EXCEPT:

A)LEED stands for Leadership in Energy and Environmental Design.
B)today's college graduates now seek green jobs that involve some aspect of social responsibility.
C)colleges of business have yet to establish sustainability course electives, case studies, or links to organizations that expose students to socially responsibility concepts and initiatives.
D)many students want to be involved with organizations like Net Impact to use business to improve the world.
E)millennials want to make a difference by making the world a better placE.In the Making Responsible Decisions box, one example discussed a student's choice to enroll at an educational institution where she could take a course on renewable energy while another example discussed a student's choice to join the Peace Corps "to be a part of something bigger than just me-me-me.

Question 77

Which of the following is a commonly held value in the United States?

A)the importance of rank and status.
B)the importance of tradition.
C)belief in fate.
D)competition.
E)acceptance of birthright.

Question 78

Culture refers to the

A)moral and ethical beliefs of a family passed down from generation to generation.
B)set of values, ideas, and attitudes that are learned and shared among the members of a group.
C)pastimes associated with the fine arts, such as ballet, music, and theater.
D)standard or pattern of behaviors that is typical or expected of a group.
E)description of a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

Question 79

Two increasingly important values for consumers around the world are __________.

A)self-esteem and fitness
B)wealth and health
C)patriotism and friendship
D)family and fun
E)sustainability and preservation of the environment

Question 80

The set of values, ideas, and attitudes that are learned and shared among the members of a group is referred to as __________.

A)customs
B)morals
C)norms
D)culture
E)ethics