Deck 3: Analyzing the Marketing Environment

Question 1

Which of the following refers to the visible nuances such as artifacts, behaviour, dress, symbols, physical settings, ceremonies, language differences, colours and tastes, and food preferences?

A)Generational cohort
B)Country culture
C)Demographics
D)Political environment
E)Competitive intelligence

Answer 1

B

Question 2

A car manufacturing company is keenly monitoring the announced cuts or increases in the rival companies' production volume, sales, and sales incentives.It uses this information to plan its own marketing, pricing, and production strategies.This is an example of:

A)bid rigging.
B)unethical behaviour
C)bait-and-switch.
D)corporate partners
E)competitive intelligence.

Answer 2

E

Question 3

Which of the following is NOT a macroenvironmental factor?

A)competitors' practices
B)political environment
C)economic situation
D)technological advances
E)social trends

Answer 3

A

Question 4

Mary, Jane, and Brad were all born the year after World War II.Leisure time is a high priority for them.They have an obsession with maintaining their youth and love rock 'n' roll.They belong to the generational cohort of:

A)baby boomers.
B)millenials.
C)seniors.
D)Generation X.
E)Generation Y.

Question 5

When firms collect and synthesize information about their position with respect to their rivals, it is called:

A)bid rigging.
B)exclusive dealing.
C)bait-and-switch.
D)generational cohort.
E)competitive intelligence.

Question 6

Marriot International send employees to stay at its rival competitor, Hilton Hotels & Resorts, to monitor new services and experiences Hilton offers to the customers.This is an example of:

A)company capabilities
B)monitoring
C)corporate partners
D)competition intelligence
E)unethical behaviour

Question 7

Which of the following refers to the way people in a particular country react to different cultural rituals in accordance with their place of residence?

A)Competitive intelligence
B)Country culture
C)Demographics
D)Generational cohort
E)Regional subculture

Question 8

Bill is 40 years old.He is much less interested in status products than his parents and is less likely to believe in advertising claims.He shares his characteristics with:

A)baby boomers.
B)Generation Y.
C)Generation X.
D)tweens.
E)seniors.

Question 9

Which of the following is true of the generational cohort of tweens?

A)Tweens include people between the ages of 13 and 32.
B)Tweens include people born after World War II who are between the ages of 48 and 66.
C)Tweens include people aged 65 and older.
D)Tweens include people aged 9 to 12 years.
E)Tweens include people between the ages of 36 and 47.

Question 10

Morgan Inc.'s clothing line has different divisions for children, tweens, and senior citizens.If Morgan bases its production requirements primarily on the age group of its target audience, its market segmentation is most likely to be relying on:

A)political environment.
B)social trends.
C)demographics.
D)technological advances.
E)culture.

Question 11

Which of the following is the goal of value-based marketing?

A)satisfy customers by offering the best price in the market
B)satisfy employees by offering the best benefits
C)satisfy investors by offering the best ROI
D)offer greater value to consumers than competitors
E)differentiate product offerings

Question 12

Walmart effective distribution network is at the heart of its success.This describe which factor of a Walmart consumers' microenvironment?

A)Competition
B)partners
C)place
D)company capabilities
E)culture

Question 13

Canadian national food includes poutine and butter tarts.Canada is the world's largest producer of maple syrup.The music of Canada reflects the many influences that have shaped the country.The official symbols of Canada include the maple leaf and the beaver.Which of the following best exemplifies the given information?

A)Competitive intelligence
B)Country culture
C)Generational cohort
D)Demographics
E)Regional subculture

Question 14

Which of the following is true of Generation X?

A)They are less likely to believe in advertising claims or what salespeople tell them.
B)They are more interested in status products than older generations.
C)They are more likely to enjoy greater prosperity than their parents.
D)They have little knowledge about products in the market.
E)They are more interested in shopping than their parents.

Question 15

Misha and Jenny are both 11 years old and spend their money mainly on food and drinks, digital music players, cellphones, computers, and clothing.They are likely to belong to which cohort?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 16

Jordan Inc., an online retail firm, wanted to determine the development strategy of its rival company.Tapping into some online discussion groups, Jordan came to know that its rival had posted 20 job openings online.This move was indicative of the rival company's development strategy.Which of the following is being used by Jordan to gather information about its rival firm's strategy?

A)bid rigging
B)unethical behaviour
C)bait-and-switch
D)corporate partners
E)competitive intelligence

Question 17

The fact that Canada is a nation with two official languages and that humour is an integral part of its arts scene is an example of:

A)regional subculture.
B)country culture.
C)generational cohort.
D)competitive intelligence.
E)demographics.

Question 18

Which of the following refers to a group of people of the same generation who typically have similar purchase behaviours because they have shared experiences and are in the same stage of life?

A)Generational cohort
B)Country culture
C)Competitive intelligence
D)Greener consumers
E)Ethnicity

Question 19

Which of the following is NOT a microenvironmental factors?

A)company
B)corporate partners
C)consumers
D)competition
E)capabilities

Question 20

Quebec women have higher demand for high quality clothes compare to other parts of Canada (Dhalla, 1966).Which of the following best related to this statement?

A)country culture
B)demographics
C)regional subculture
D)generational cohort
E)social trends

Question 21

Nate, born in 1960, is very individualistic.He ensures he has enough leisure time to pursue his interests.He is obsessed with maintaining his youth and loves rock 'n' roll.If these traits are typical of those of his generation, he is likely to belong to which cohort?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 22

Diana is 66 years old.While shopping for products, she prefers to buy recognizable brands and is extremely quality conscious.Diana also prefers to shop at convenient locations.Which of the following generational cohorts does she belong to?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 23

Which of the following statements is true of the income of Canadians?

A)Family income distribution in Canada is similar across its provinces.
B)Underclass Canadians are just above poverty.
C)The majority of the Canadians fall in the middle-class category.
D)The richest 20 percent of Canadians spend 5 or 6 times more than the poorest 20 percent of Canadians.
E)Most families experienced real income growth after 1980, and their health care costs, property taxes, and tuition bills have risen at a much slower rate than inflation.

Question 24

Which of the following statements is true of seniors?

A)They belong to the generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom.
B)They belong to the generational cohort of people born after World War II who are between the ages of 48 and 56.
C)They belong to the generational cohort consisting of people aged 65 and older.
D)They belong to the generational cohort of people who are not quite teenagers but are not young children either.
E)They belong to the generational cohort of people between the ages of 36 and 47.

Question 25

Which of the following generational cohorts is also referred to as the echo boom generation?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 26

Which of the following generational cohorts is also referred to as the first generation of latchkey kids?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 27

Which of the following statements is true of baby boomers?

A)They belong to the generational cohort of people born between 1972 and 1992.
B)They belong to the generational cohort of people born between 1946 and 1965.
C)They belong to the generational cohort consisting of people aged 65 and older.
D)They belong to the generational cohort of people who are not quite teenagers but are not young children either.
E)They belong to the generational cohort of people born between 1966 and 1971.

Question 28

Which of the following is a characteristic of people belonging to the baby boomer generation?

A)They are individualistic.
B)They are workaholics.
C)They abhor youth, which they equate with immaturity.
D)They love pop.
E)They are gutted by a feeling of economic and psychological insecurity.

Question 29

Joe is 65 years old.He is highly individualistic and invests in health and wellness products.He loves to indulge in products and services that help him maintain his youth.Joe belongs to the category of:

A)Gen X.
B)Gen Y.
C)tweens.
D)baby boomers.
E)seniors.

Question 30

Latchkey kids are those children who:

A)were left orphaned after the death of their biological parents.
B)grew up in foster homes because of the inability of their parents to take care of them.
C)grew up in homes with a stepmother or a stepfather.
D)grew up in homes in which both parents worked.
E)grew up in single-parent homes.

Question 31

Jack is a 50-year-old resident of Texas.He is self-reliant and individualistic.While making decisions about purchasing products, he lays more emphasis on quality than price.He shares his characteristics with:

A)baby boomers.
B)Generation Y.
C)Generation X.
D)tweens.
E)seniors.

Question 32

Megan and John have been married for 10 years.Megan is the vice-president of a bank, and John is an investment banker.They enjoy a combined income of more than $100,000.Megan loves art.She buys paintings of renowned painters in auctions all over the world.Which of the following categories do they belong to?

A)Underclass consumers
B)Upper-class consumers
C)Working-class consumers
D)Middle-class consumers
E)Lower-class consumers

Question 33

Which of the following statements is true of working-class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They are more likely to be highly educated.
C)They are more likely to work in managerial and executive roles.
D)They have high discretionary incomes.
E)Their spending patterns are not influenced by economic conditions.

Question 34

Venus and Jake have been married for three years.Venus is 30 years old, and Jake is 28.They are Internet and technology savvy.They use the Internet at work for personal reasons and expect a healthy option at fast-food restaurants.They are likely to belong to which cohort?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 35

Which of the following statements is true of upper-class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They primarily perform clerical jobs.
D)They tend to be careful about their spending and are often value conscious.
E)Their spending patterns are not influenced by economic conditions.

Question 36

Which of the following statements is true of Generation X?

A)They belong to the generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom.
B)They belong to the generational cohort of people born after World War II who are between the ages of 48 and 66.
C)They belong to the generational cohort of people aged 65 and older.
D)They belong to the generational cohort of people who are not quite teenagers but are not young children either.
E)They belong to the generational cohort of people born between 1966 and 1971.

Question 37

Megan is 40 years old and heads an advertising firm.She grew up in a home in which both parents worked.Although Megan possesses considerable spending power, she is much less interested in shopping than her parents and is far more cynical, which tends to make her an astute consumer.Megan takes a long vacation every summer and travels to different parts of the world.She is likely to belong to which cohort?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 38

Which of the following statements is NOT true of Generation Y?

A)They belong to the generational cohort of people born between 1972 and 1992
B)They are the biggest cohort since the original postwar baby boom.
C)They grew up in a more brand-conscious era than their parents.
D)They value convenience and tend to be less likely to believe advertising claims.
E)They love digital electronics.

Question 39

Sue is offering home cleaning services and found out that WOM and referral work much better to promote her business than advertising.Which of the following generational cohorts is more likely the main target market?

A)Tweens
B)Generation Y
C)Generation X
D)Baby boomers
E)Seniors

Question 40

Which of the following statements is true of middle-class consumers?

A)Their family income is usually between $20,000 and $30,000.
B)They rely on assistance to cover their basic needs.
C)They have very high discretionary incomes and tend to purchase luxury items.
D)They tend to be careful about their spending and are often value-conscious.
E)Their spending patterns are not influenced by economic conditions.

Question 41

PlusLight, a torch manufacturing company, releases high-intensity torches at incredibly low prices.Within a year, it achieves market monopoly by driving away most of its competitors from business.Which of the following practices did PlusLight engage in?

A)Predatory pricing
B)Price fixing
C)Price discrimination
D)Bid rigging
E)Resale price maintenance

Question 42

Bill is part of a program that collects biodegradable material from domestic wastes.This material is collected by the municipality and used to make compost for gardening.Which of the following program best describes Bill's activity?

A)Bait-and-switch
B)Green washing
C)Carbon footprint
D)Bid rigging
E)Green bin

Question 43

Which of the following trends has increased the difficulty that marketers face when they try to grab the attention of consumers?

A)Canadians have more time for leisure and to spend with family.
B)The attention of multitasking consumers is divided.
C)Consumers must choose what shows they want to watch from fewer programs.
D)Kids prefer to spend more time on physical sports than electronic gadgets.
E)Minority groups are getting more familiar with the English language.

Question 44

Bruce is a part-time janitor.Maria washes dishes in a restaurant.They have a combined income of $30,000.They are barely able to make ends meet because they have three small children.Which of the following categories do they belong to?

A)Underclass consumers
B)Upper-class consumers
C)Working-class consumers
D)Middle-class consumers
E)Upper-middle-class consumers

Question 45

When the value of the Canadian dollar increases by 20 percent against the major currencies in the previous quarter and drops by around 30 percent in the current quarter, it is referred to as:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 46

Mekong Airlines uses special technology to reduce the number of lost bags and make it easier to reroute bags if passengers change their flight plans.Which of the following technologies does it use to track passenger bags?

A)Resonant inductive coupling
B)Radio frequency identification device
C)Biometrics
D)Electrodynamic induction
E)Supranet

Question 47

In Germany, in 1923, prices doubled every two days, and workers were paid twice a day so they could buy food and goods before prices rose again.The new payment system was in response to the:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 48

Suppose C $1.00 was worth US $0.809, and after nine months, the Canadian dollar increased to $1.50.This is an example of:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 49

A hotel introduces eco-rooms that have energy-efficient mini-bars, organic bed linen, and napkins made of recycled papers.They also advertise that their rooms are fitted with CFLs or LEDs to conserve energy.This is an example of:

A)green bin.
B)green washing.
C)green marketing.
D)bid rigging.
E)bait-and-switch.

Question 50

Which of the following programs encourages consumers to recycle their food and yard waste to make compost for gardening?

A)Bid rigging
B)Green washing
C)Carbon footprint
D)Bait-and-switch
E)Green bin

Question 51

The two fastest-growing ethnic groups who have migrated to Canada are the:

A)Russians and the South Americans.
B)Europeans and the South Americans.
C)Arabs and the Africans.
D)Chinese and the South Asians.
E)Africans and the Europeans.

Question 52

Jack is a teacher and his wife, Meg, works as an assistant in a research laboratory.They have a combined income of $68,000.They have a house on mortgage and take long vacations once every four years.They are value conscious.Which of the following categories do they belong to?

A)Underclass consumers
B)Upper-class consumers
C)Working-class consumers
D)Middle-class consumers
E)Lower-class consumers

Question 53

Which of the following is used by retail firms to track an item from the moment it is manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

A)RuBee
B)Radio frequency identification device
C)Biometrics
D)Resonant inductive coupling
E)Supranet

Question 54

A period of economic downturn when the economic growth of a country is negative for at least a couple of consecutive quarters is called:

A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question 55

Which of the following holds true for ethnic groups who have migrated to Canada?

A)Ethnic Canadians spend less than their white counterparts on big-ticket items such as cars, clothing, and home furnishings.
B)South Asian and Chinese immigrants are typically young, educated, and wealthy.
C)Currently, less than 2 percent of all visible minorities in Canada are under 14 years.
D)Migrated ethnic groups account for nearly 10 percent of Canada's population growth.
E)Russians represent the fastest-growing ethnic group in Canada.

Question 56

The persistent increase in the prices of goods and services is called:

A)deflation.
B)predatory prices.
C)inflation.
D)recession.
E)bid rigging.

Question 57

The fact that many of today's commercials for children's gear now include Dad interacting with the kids and being involved in purchase decisions reflects:

A)that men earn more money than women.
B)the increasing generational gap in Canadian households.
C)the importance that marketers are giving to changing gender roles.
D)that higher levels of education lead to better jobs and higher incomes.
E)the change in the gender composition of a country.

Question 58

Which of the following statements is true of the effect of changing gender roles in society on marketers?

A)Absence of the role of father in commercials for children's goods
B)Increase in advertisements involving single mothers
C)Gender neutrality in the positioning of products
D)Discouraging the trend of transcending gender boundaries
E)Portraying women as more competent than men

Question 59

Philip lives with his wife Emma and four children in a rented single-room apartment.They live below poverty and take aid of the social security provided by the government.Which of the following categories do they belong to?

A)Underclass consumers
B)Upper-class consumers
C)Working-class consumers
D)Middle-class consumers
E)Lower-class consumers

Question 60

The strategic effort made by firms to supply customers with environmentally friendly merchandise is called:

A)green bin.
B)green washing.
C)green marketing.
D)bid rigging.
E)bait-and-switch.

Question 61

Schemes in which salespersons are paid to recruit other salespeople, and each new salesperson pays for the right to recruit other salespeople, with some of that money going to earlier recruiters is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 62

A university publishes a journal, which is subscribed to by individuals and bookshops.The editors have recommended $20 as the retail price.The university also maintains that the journal cannot be sold at a discount.The university has threatened to cease the supply to any bookshop that sells for less than the recommended retail price.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 63

Four companies dealing in dairy products admitted that they met to increase the price of their common products together.Which of the following exemplifies the activity of these companies?

A)Price fixing
B)Price discrimination
C)Predatory pricing
D)Referral selling
E)Resale price maintenance

Question 64

A situation in which incentives are offered to consumers to provide the names of other potential consumers is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 65

Kelly visited a computer store looking for a model listed at $600.The salesperson stated that this model was out of stock and tried to sell her another model priced at $1,352.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral scheme.
E)pyramid sales.

Question 66

A hotel management institute develops a training program for students.The fee for the training program is $1,000.The institute offers to share the training program with other colleges for a low price.One of the terms of the contract is that the other colleges should not offer the program to their students for less than $1,000.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 67

A car sales showroom displays a basic car with a very low price tag.Once a customer is interested, the salesperson persuades him or her to buy a more expensive model.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 68

The fee to enter a music event is set at $100 for men and $50 for women.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 69

A seller refusing to sell to other channel members unless that member agrees to buy solely from that particular seller is termed:

A)price fixing.
B)exclusive dealing.
C)predatory pricing.
D)misleading advertising.
E)refusal to deal.

Question 70

Which of the following is an impact of government regulations on marketers?

A)It drastically lessens the opportunity for marketers to sell more of their products.
B)It creates an uneven playing field for competition.
C)It contributes to the creation of legal irregularities in the market.
D)It increases the cost of compliance.
E)It promotes inflationary tendencies.

Question 71

A driving school charges more to teach women drivers.Its justification is that, even though the lessons and methods are the same as used for men, they think they need to be more careful when women are driving.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 72

A situation in which sellers collude to set prices in response to quotations for products is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 73

A large software company released its web browser for free.As a result, other smaller software companies were forced to reduce their price significantly and went out of business.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 74

The pricing that is intended to drive competitors out of the market or keep competitors from entering the market by fixing very low prices is called:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 75

Beck wanted to join a gym but was worried about the cost.The gym offered her a 100 percent rebate on a one-year membership if she gave the gym the names and telephone numbers of five of her friends.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 76

A country allows millions of extra barrels of oil into the market to push prices downward.This squeezes smaller oil producers out of the market and expand the country's own market share.This act could be termed:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question 77

An automobile company published an advertisement that said that prices for the latest model on offer started at $10,000 with an interest rate of 10 percent.The ad showed the logo and picture of a new model.When an interested customer spoke with the authorized dealer mentioned in the ad, he was informed that the bargain price was only on the older model.This is an example of:

A)price fixing.
B)price discrimination.
C)predatory pricing.
D)misleading advertising.
E)resale price maintenance.

Question 78

A company sells a mattress, which is claimed to promote good health.It also convinces customers to become part of a club where they receive commissions if they get other people to join the club or buy mattresses.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 79

Four companies quoted for and supplied paints to a massive housing reconstruction program.There were 200 contracts distributed over 10 years.Each company won 25 percent of the contract each year.This is an example of:

A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question 80

Which of the following situations arises during a recession?

A)An increase in the stock market valuations
B)An increase in the rate of unemployment
C)An increase in business and consumer confidence
D)An increase in consumer spending
E)An increase in purchasing power