Deck 4: The Marketing Environment

Question 1

The Sherman Act of 1890 establishes protection for trademarks.

Answer 1

False
The Lanham Act of 1946 establishes protection of trademarks.

Question 2

An economic recession increases demand for products and services.

Answer 2

False
A recession is a period of economic activity characterized by negative growth,which reduces demand for goods and services.

Question 3

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,health care professionals who treat diabetics are its primary target market.

Answer 3

False
The target market consists of the diabetics for whom the product was designed.

Question 4

Almost half of all U.S.residents is a minority.

Question 5

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

Question 6

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

Question 7

Rising incomes mean a higher standard of living.

Question 8

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

Question 9

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

Question 10

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 11

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

Question 12

Basic research attempts to develop new or improved products.

Question 13

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 14

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

Question 15

Psychography is the study of people's vital statistics such as their ages and locations.

Question 16

Baby boomers represent a monolithic group.

Question 17

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

Question 18

Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented.

Question 19

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

Question 20

The clothing style worn by tweens reflects that of their parents.

Question 21

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

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

Question 22

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 23

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 24

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 25

Privacy policies for companies in the United States are largely voluntary and there are almost no regulations on the collection and use of personal data.

Question 26

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

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

Question 27

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 28

The external environment is a strong influence on a target market and can provide _____ for the marketing manager.

A) opportunities and threats
B) threats and strengths
C) environmental loopholes
D) opportunities and weaknesses
E) product myopia

Question 29

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 30

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 31

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

Question 32

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 33

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 34

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 35

In Asia,Procter & Gamble (P&G)discovered that consumers like to experiment with different brands of shampoos and shy away from the family-size bottles so popular with Americans.Now it sells single-use sachets of shampoo in Asia.P&G responded to _____ factors when it changed its Asian packaging.

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

Question 36

The Gramm-Leach-Bliley Act is aimed at the healthcare industry.

Question 37

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

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

Question 38

After Hal Li purchased and installed a woodburning 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 (FTC).

Question 39

Susan is the director of marketing for a company that sells recreational vehicles and is developing a marketing plan to cover the next five years of business.Which of the following is an uncontrollable factor Susan must consider in her plan?

A) place or distribution factors
B) media buying factors
C) economic factors
D) promotional literature
E) pricing strategy for warranty services

Question 40

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

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

Question 41

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 42

The study of people's vital statistics,such as their ages,births,deaths,and locations,is called:

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

Question 43

_____ are strongly attached to technology,tend to be skeptical consumers,and demand the latest fashion trends in record time.

A) Generation Xers
B) members of the cohort generation
C) baby boomers
D) Generation Yers
E) members of the baby bridging generation

Question 44

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 45

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 46

Girls between the ages of 8 and 14 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

You are a marketing consultant for a firm that wants to target members of Generation X.Based on your knowledge of this demographic group,your advice to this firm would be to _____.

A) emphasize freedom from work and commitment
B) emphasize the importance of their children's education
C) avoid topics dealing with materialistic possessions
D) emphasize the baby boom culture
E) concentrate on social networking as the best way to reach this group

Question 48

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 49

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 50

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 51

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 52

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 53

Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopedic surgery.It is 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 54

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 55

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 56

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 57

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 58

Riot Media is a media and toy company that capitalizes on the "gross-out" humor that boys ages 8 through 14 greatly enjoy.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 59

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

A) income level
B) age
C) values
D) education
E) birthrate

Question 60

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 61

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 62

Which ethnic group has the highest average family income?

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

Question 63

A period of economic activity characterized by negative growth,which reduces demand for goods and services,is called:

A) stagnation
B) inflation
C) recession
D) price escalation
E) parity

Question 64

All of the following are segments into which baby boomers have been subdivided into EXCEPT?

A) "at ease" boomers
B) "confident and living well" boomers
C) "looking for balance" boomers
D) "age-defying" boomers
E) "overwhelmed" boomers

Question 65

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 66

Interest rates,inflation,and consumer income that influence the marketing environment are called _____ factors.

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

Question 67

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 68

Consider a small southern town where almost half the residents are African Americans and the rest whites.Nearly all of the residents can trace their ancestors' arrivals in the community back at least four generations.This town is an example of a:

A) market aggregation
B) mass market
C) psychographic target market
D) metropolitan statistical area
E) multicultural society

Question 69

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 70

The majority of Hispanic Americans are of _____ descent.

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

Question 71

_____ is measured by comparing the relative cost of a 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 72

Which of the following statements characterizes the growing ethnic markets in the United States today?

A) Marketers are modifying products to appeal to different ethnicities
B) The United States is becoming a multicultural society
C) The United States is moving away from being a society dominated by whites and rooted in Western culture
D) The percentage of whites in the United States' population will decline relative to other minority groups
E) All of the statements characterize the demographic transition in the United States today

Question 73

Four dollar a gallon gasoline was unimaginable when mechanical gas pumps first appeared in the United States in the 1930s.Their spinning dials cannot register sales beyond $99.99,which will not fill up many SUVs.The pumps can be modernized for about $650,but the company that provides this service has a huge backlog.This is an example of how _____ factors affect small convenience stores and service stations.

A) technological and cultural
B) competitive and natural
C) economic and technological
D) cultural and economic
E) demographic and marketing mix

Question 74

A company that specializes in planning and organizing large family reunions has hired you to identify 25 geographic target markets that are also examples of multicultural societies.What types of locations should you offer this firm?

A) cities that have historically had low immigration rates
B) traditional test markets
C) regions that are dominated by one ethnic group and that have multiple smaller ethnic groups
D) unindustrialized areas
E) locations in which all major ethnic groups in the area are roughly equally represented

Question 75

_____ is 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 76

After-tax income is referred to as:

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

Question 77

Which of the following is the largest Asian American segment?

A) Chinese
B) Filipino
C) Vietnamese
D) Korean
E) Japanese

Question 78

A multicultural society is characterized by:

A) a population of recent immigrants that are closely related by custom and tradition
B) a conglomeration of small and large ethnic groups that have little in common
C) even distribution of all ethnic groups in a geographic region
D) effective mass-marketing techniques
E) one large dominating racial or ethnic group in a geographic area

Question 79

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

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

Question 80

The main product for Zamperla Industries is gondola cars for amusement park rides and ski lifts.Its marketing department constantly monitors trends in the external environment that might affect the firm.Which economic factor may pose a major threat to this company?

A) few competitors in this industry
B) technological improvements that are automating production of cars
C) a recession
D) increasing interest in the environment and recycling
E) existing legislation requiring licensing of all amusement park rides