Deck 4: The Marketing Environment

Question 1

Demographics, one of the uncontrollable variables in the external environment, are significant because the basis for any market is people.

Answer 1

True

Question 2

A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Answer 2

True

Question 3

Gen Xers tend to be frugal and seek value when making purchases.

Answer 3

True

Question 4

The Bureau of Competition provides information and holds conferences and workshops for consumers, businesses, and policy makers on competition issues for market analysis.

Question 5

Unlike television, social media enable firms to create conversations with customers and establish meaningful connections.

Question 6

Demography is one of the controllable variables in the external environment.

Question 7

Asian Americans, who represent only six percent of the U.S. population, are the least influenced by technology.

Question 8

Global competition is decreasing with the increase in population.

Question 9

The management of a firm has utmost control over the competitive environment confronting it.

Question 10

In terms of purchasing power, when income is low relative to the cost of living, people have more discretionary income.

Question 11

Middle-class customers are increasingly unwilling to spend their money on household staples with extra features because of lower income.

Question 12

George purchased a new hair dryer. However, the hair dryer sparked and the coil caught fire. He felt that the product was dangerous to use. In this case, George should voice his concerns to the Federal Trade Commission.

Question 13

Component lifestyle refers to choosing products and services that conform to traditional stereotypes.

Question 14

In today's age, a person's profession defines his or her lifestyle.

Question 15

In terms of consumers' incomes, a nondegree holder will earn more than twice as much total income as a degree holder over a lifetime.

Question 16

Gross domestic product is the total market value of all final goods and services produced during a period of time.

Question 17

The term Hispanic encompasses people of many different backgrounds.

Question 18

Teens command a negligible amount of buying power.

Question 19

In times of high inflation, businesses seeking to increase their profit margins can do so only by increasing their efficiency.

Question 20

Millennials tend to be influenced more by traditional advertising, sales reps, and word-of-mouth recommendations than through digital media.

Question 21

Which of the following statements is true of the younger Millennials?

A)They are quick to change jobs if they are unsatisfied.
B)They graduated from college during the Great Recession.
C)They do not spend time surfing the Web or on social media.
D)They have difficulty finding jobs when they graduate.

Question 22

Hispanic Americans in the United States:

A)prefer to buy American products rather than brands from their homelands.
B)are much older than the general U.S.population.
C)make up the largest group to use mobile devices for any type of transaction.
D)are the most homogenous ethnic group.

Question 23

Paulina is an eleven-year-old girl. She spends a lot of time on social media and likes mobile games. In this case, Paulina is most likely to be a:

A)baby boomer.
B)Millennial.
C)Gen Xer.
D)tween.

Question 24

With access to information, opinions, and sophistication well beyond their years, _____ are directly or indirectly responsible for sales of over $180 billion annually.

A)baby boomers
B)Millennials
C)teens
D)tweens

Question 25

Which of the following statements is true of baby boomers?

A)The youngest baby boomers were around 34 years old in 2013.
B)They lay emphasis on price and quality while making purchase decisions.
C)They prefer to be addressed as senior, elderly, or aged.
D)They are a small market with minimal spending power.

Question 26

Which of the following statements is true of the incomes of baby boomers in the United States?

A)Baby boomers accumulated little amount of savings over their working years.
B)Baby boomers' purchasing power is discretionary and guided by their parents.
C)Baby boomers' current incomes are relatively low because many have retired.
D)Baby boomers' want to age in a retirement community.

Question 27

The CAN-SPAM Act:

A)prohibits commercial e-mailers from using false addresses and presenting false or misleading information.
B)requires fast-food chains to open their facilities to health inspection at least once every quarter.
C)requires verifiable parental consent before a Web site can collect information from children.
D)allows commercial e-mailers to charge consumers a fee to opt out of receiving further email.

Question 28

Peter is conducting research that is aimed at formulating a combustion process that could be used in commercial vehicles so that vehicles could run on water. Peter's research is an example of _____.

A)experimental research
B)applied research
C)controlled research
D)basic research

Question 29

Unlike people who belong to Generation X, baby boomers:

A)do not use social media or other technologies to buy products.
B)tend to be influenced more by traditional advertising and word-of-mouth recommendations.
C)spend less on gifts, personal care products, medical care, food away from home, and entertainment.
D)graduated from college during the Great Recession.

Question 30

Roberto, a Hispanic Millennial, completed his bachelor's degree in the year 2016 and is looking to pursue a successful career. Which of the following behaviors is Roberto most likely to be associated with?

A)Roberto favors Spanish media over English media.
B)Roberto embraces parts of his original culture.
C)Roberto shares a conservative outlook towards relationships.
D)Roberto is most likely to be a monolingual Hispanic Millennial.

Question 31

Which of the following statements is true of Gen Xers?

A)They have acquired a disproportionate amount of spending power.
B)They have very low spending power because of a lack of a stable source of income.
C)They graduated from college during the Great Recession and had difficulty in finding good jobs.
D)They are currently in two different stages of the life cycle.

Question 32

Fresnas Cuisine, a restaurant chain, recently introduced fast food on its menu. This action was taken because management recognizes that their customers are predominantly young people. This scenario illustrates how _____ influence marketing decisions.

A)economic factors
B)demographic factors
C)legal factors
D)ethical factors

Question 33

Which of the following statements is true of the attitude of teens in the United States?

A)Most teens prefer to shop online than in stores.
B)According to a survey taken by Piper Jaffary, teens continue to seek peer affirmation.
C)Teens spend more on food than any other cohort group.
D)Most teens are influenced by traditional advertising, sales reps, and word-of-mouth recommendations than any other cohort.

Question 34

Identify a true statement about the Great Recession.

A)The economy completely recovered from the Great Recession in 2009.
B)The Great Recession spread around the globe by 2008.
C)The middle class was the least affected by the Great Recession.
D)The Great Recession increased employment rates to almost ten percent.

Question 35

James earns $3,000 per month. If his overall cost of living is $1,700, his purchasing power is _____.

A)$3,000
B)$500
C)$1,300
D)$1,700

Question 36

Unlike Hispanic Americans, most:

A)Asian Americans are born outside the United States.
B)Asian Americans' average family income is less.
C)Asian Americans seldom retain their core Asian values.
D)Asian Americans are less educated.

Question 37

Jane is a 16-year-old sophomore. She stays abreast of the latest technology and educates her parents about the latest trends in technology. She convinced them to replace her old cell phone with a new one. Given this information, Jane is a _____.

A)tween
B)teen
C)Gen Xer
D)Gen Yer

Question 38

Nearly 60 percent of Hispanic Americans are of Cuban descent.

Question 39

In the context of social factors that affect marketing, with component lifestyles, people are:

A)becoming nondiscriminating and undemanding.
B)choosing products that meet their diverse needs.
C)reducing the complexity of their buying behavior.
D)beginning to prefer products that meet traditional needs and interests.

Question 40

Laelle Corp., a technological firm, promotes its products through various social media platforms. Which of the following statements is most likely to be true about Laelle Corp.?

A)Laelle Corp.is can use the social media platforms only as a one-way communication, similar to network television.
B)Laelle Corp.is able to create conversations with its customers and establishes meaningful connections.
C)Laelle Corp. has reduced its reach by promoting its products via social media platforms.
D)The platforms display content generated by Laelle Corp. but not its customers.

Question 41

A difference between Gen Yers and baby boomers is that unlike Gen Yers, baby boomers:

A)are currently in two different stages of the life cycle.
B)are the most tech-savvy people yet.
C)outspend in categories such as gifts and medical care.
D)prioritize saving money.

Question 42

In the context of growing ethnic markets, African Americans in the United States:

A)spend more on store brands as compared to the general population.
B)comprise the largest percentage of population among different minority groups in the U.S.
C)are inclined to spend less on groceries and hair care products as compared to other cohorts.
D)acculturate into mainstream America forgetting their cultural heritage.

Question 43

_____ is charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.

A)The Association for Prohibition of Adulteration
B)The General Food Regulations
C)The Consumables Protection Bureau
D)The Food and Drug Administration

Question 44

Martha visits a departmental store and discovers that a box of exotic candles will cost her ten percent more than what she had paid six months ago. The increase in prices is the same across the country. In this scenario, which of the following statements is true?

A)She would have immediate purchasing power if she had a pay raise to match the inflation.
B)She has to pay twelve percent more than what she paid last month.
C)The departmental store is trying to earn more profits by increasing the prices of its goods.
D)The candles' subjective value increases with the increase in inflation.

Question 45

Equality, a value that strongly influenced the attitudes and lifestyles of Americans, emphasizes that:

A)success would come to anyone who got an education, worked hard, and played by the rules.
B)every person should stand on his or her own two feet.
C)hard work, dedication to family, and frugality were moral and right.
D)no one should expect to be treated differently from anybody else.

Question 46

Which of the following statements is true of the external environment with regard to developing a marketing mix?

A)It is a standard variable that does not change.
B)It does not give an accurate estimation of the target market.
C)It is manually controlled to generate a marketing mix.
D)It continually molds and reshapes the target market.

Question 47

Alex purchased a battery-operated drill. Due to a manufacturing defect, the drill overheated and exploded when he used it for the first time. Alex lodged a complaint against the firm that manufactured the drill with the Consumer Product Safety Commission (CPSC). In this case, which of the following is most likely to happen?

A)The CPSC can fine the offending firm up to $500,000.
B)The CPSC will reduce the prices of the drills of the offending firm in the market.
C)The CPSC will introduce changes to the drills of the offending firm in the market.
D)The CPSC has no power to sentence the officers involved in the case.

Question 48

Which of the following statements is true of today's consumers in the United States?

A)They emphasize on a product's price rather than its quality.
B)They seldom give preference to brand names.
C)They are concerned about the nutrition in their food.
D)They tend to choose products that are expensive.

Question 49

Unlike Asian Americans, African Americans:

A)spend more time with their family and relatives.
B)are better educated and have high income rates.
C)spend more on groceries and hair care products.
D)invest more on technology and electronic gadgets.

Question 50

Jessica was born in 1994. She spends more time on Facebook than reading magazines. Despite her inclination toward social networking sites, she continues to listen to the radio and read magazines occasionally. Given this information, which of the following statements is true of Jessica?

A)She does not expect brands to be on social media.
B)She is a younger Millennial.
C)She is one of the first generation of latchkey children.
D)She would have graduated from college during the Great Recession.

Question 51

Hydralicious, a juice outlet, had to stop its business as health inspectors found that the storage facilities at the outlet did not meet the standards set by the government. In this scenario, a(n) _____ factor affected Hydralicious's business.

A)technological
B)economic
C)legal
D)demographic

Question 52

Which of the following can be considered demographic information of a person?

A)Intelligence quotient level
B)Beliefs
C)Skill sets
D)Age

Question 53

Which of the following strategies can help business firms stimulate innovation?

A)Hiring employees who have low risk tolerance
B)Letting employees know that they must fear failure and should not attempt anything that might fail
C)Instructing managers to use micromanagement techniques
D)Using teams of writers to build scenarios of opportunities and threats

Question 54

Which of the following statements is true about population trends in the United States?

A)The populations in the rural regions of the United States are aging.
B)In many parts of the country, multigenerational households are increasingly rare.
C)Baby boomers are now the smallest population group.
D)Tweens are now the largest population group.

Question 55

Which of the following core values strongly influences the attitudes and lifestyles of Americans?

A)Structural mobility
B)Self-sufficiency
C)Nonconformity
D)Self-dealing

Question 56

Which of the following statements is true of a target market?

A)Environmental scanning is performed by firms in order to prevent changes in a target market.
B)Unlike uncontrollable variables, controllable variables do not affect a target market.
C)Uncontrollable elements continually evolve and create changes in a target market.
D)Managers can control the external environment that molds and reshapes a target market.

Question 57

Jason was born in 1970. He spent most of his childhood without much adult guidance as both his parents were working professionals. In this case, which of the following is most likely to be true of Jason?

A)He is independent, resilient, adaptable, cautious, and skeptical.
B)He has a pessimistic outlook.
C)His generation outspends other generations on consumer goods and services.
D)He possesses a negligible amount of spending power.

Question 58

Stephen recently purchased electronic equipment from Fournotts Corp. The equipment malfunctioned during its first use. If Stephen lodges a complaint with the Federal Trade Commission, which of the following bureaus will be responsible for taking action against the firm?

A)The Bureau of Consumer Protection
B)The Bureau of Economics
C)The Bureau of Competition
D)The Bureau of Consumer Privacy

Question 59

Which of the following statements is true about the Great Recession of 2008-2009?

A)Tweens were the most affected population group.
B)Inflation rates increased to almost ten percent.
C)It began with the collapse of inflated housing prices.
D)It increased employment opportunities in the United States.

Question 60

Which of the following scenarios is an example of basic research?

A)Jeremy, a social activist, is researching ways to improve the quality of life of physically challenged people.
B)Xerome, an engineer, is trying to find an alternative fuel that would be cost effective and environmental friendly.
C)Sasha, a student, is working on his new science project.
D)Laila, an engineer, is trying to rectify the malfunctions of her newly invented engine.

Question 61

In the context of populations, which of the following statements is true of tweens in the United States?

A)They are the first generation of latchkey children.
B)They are an attractive market segment for mobile games.
C)They are a larger cohort than baby boomers.
D)They are aged between 14 and 18 years.

Question 62

Which of the following statements is true of incomes in the United States?

A)The real median household income has fallen since 2009.
B)The median household income is the same across different states.
C)Demographics determine a person's earning potential.
D)A degree holder earns same wages as a nondegree holder.

Question 63

List and explain the four core values that have strongly influenced American attitudes and lifestyles.

Question 64

Unlike the youngest Gen Yers, many of the oldest members of Generation Y:

A)are entering adulthood.
B)were the least affected by the Great Recession.
C)turned 50 years old in 2016.
D)have become parents.

Question 65

In the context of populations in the United States, Millennials:

A)are now more in number than baby boomers.
B)spend the most on food than any other cohort.
C)have been the least affected by the Great Recession.
D)are less interested in technology than any other group.

Question 66

Which of the following statements is true of American teenagers?

A)They spend about six hours per week tuned in to electronic media.
B)They make the largest cohort group.
C)They prefer face-to-face communication to communicating electronically.
D)They prefer Tumblr and Instagram to Facebook.

Question 67

Joshua, an HR manager in a multinational firm, is recruiting employees for his firm. During the self-introduction stage, one of the interviewees, Martha, shares information about herself. In this case, which of the following is a demographic characteristic?

A)She lives in Manhattan.
B)She believes in social service.
C)She is very creative in cooking.
D)She prefers using electronic gadgets of a particular brand.

Question 68

Which of the following statements is true of Hispanic Millennials?

A)They are prone to taking a bilingual, bicultural approach to their media consumption.
B)They do not adhere to their cultural values and are often reluctant to raise a family.
C)Hispanic Millennials born in the United States acculturate to the primal 45-Latino society .
D)They share the same characteristics as other societies in the United States.

Question 69

Which of the following legislations created the Consumer Financial Protection Bureau (CFPB)?

A)The Restoring American Financial Stability Act
B)The Consumer Product Safety Commission
C)The Federal Financial Supervisory Authority
D)The Product Quality Commission

Question 70

Discuss ways to market to the African American market in the U.S.

Question 71

Which of the following statements is true of Generation Y?

A)Its members are not as hard-working and motivated as other generations.
B)Its members have been raised from childhood to adulthood in the digital world.
C)Its members have the least spending power than any other cohort.
D)Its members are the first generation of latchkey children.

Question 72

Which of the following statements is true of the competitive environment in the United States?

A)Population growth in the United States decreases global competition.
B)Technology advances can change a firm's business model.
C)Rise of product costs makes resources readily available.
D)A management has full control over the competitive environment.

Question 73

The Federal Trade Commission's Bureau of Competition _____.

A)promotes restraint of trade among business firms
B)encourages monopolization and agreements between competitors
C)promotes anti-competitive strategies
D)seeks out and challenges anti-competitive conduct in the marketplace

Question 74

Which of the following statements is true of tweens?

A)Tweens do not spend money on themselves and are reliant on their parents and relatives.
B)Most tweens prefer and value traditional media over social media unlike other cohorts.
C)Tweens are influenced by sales reps and word-of-mouth recommendations.
D)Most tweens own a mobile phone and almost half of them have smartphones.

Question 75

Unlike Gen Yers, Gen Xers:

A)were least affected by the Great Recession.
B)have higher average incomes.
C)spend the least on housing compared to other cohorts.
D)are not considered as attractive market segments for family-oriented products.

Question 76

Magnira Corp., a technological firm, recently acquired a smaller firm abroad. The Federal Trade Commission looked into the acquisition and found that Magnira Corp. used unfair means to acquire the business. In this case, which of the following bureaus was responsible for reviewing the acquisition?

A)The Bureau of Consumer Protection
B)The Bureau of Economics
C)The Bureau of Competition
D)The Bureau of Consumer Privacy

Question 77

Compare the effect of inflation and recession on the economic environment of the United States.

Question 78

Which of the following statements is true about the trends prevalent among the various ethnicities in ethnic markets?

A)African Americans do not consider cultural/ethnic heritage as a critical part of their identity.
B)Hispanics of older generations are more likely to be bilingual than Hispanic Millennials.
C)Asian Americans retain strong core values even if they embrace American values.
D)Asian Americans are less educated than any other minority group.

Question 79

Business firms can stimulate innovation by:

A)hiring employees who have low risk tolerance.
B)letting employees know that they have the freedom to fail.
C)using micromanagement techniques.
D)talking to late adopters.

Question 80

Discuss the relationship between businesses and governments.