Deck 5: Analyzing the Marketing Environment

Question 1

Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than improving the environment, are engaging in greenwashing.

Answer 1

True

Question 2

Fast food restaurants no longer use cartoon characters to promote products because the characters do not retain popularity among young children for very long.

Answer 2

False

Question 3

Members of Generation Y are the children of Baby Boomers.

Answer 3

True

Question 4

A marketer's main focus should be on developing universal products or services that can be identifiable by and relevant to all groups of people.

Question 5

When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.

Question 6

In the immediate environment, the competition has no effect on consumers.

Question 7

Corporate partners work with a focal company to make and supply products and services to consumers.

Question 8

The three elements of the consumer's immediate environment are the company, competition, and fellow consumers.

Question 9

By paying close attention to customer needs and continuously monitoring the business environment in which it operates, a good marketer can identify potential opportunities.

Question 10

The macroenvironmental factors that marketers must consider are the company, competition, and corporate partners.

Question 11

Demographic profiles of customers provide an easily understood "snapshot" of the typical consumer in a specific target market.

Question 12

Consumers' needs and wants, as well as their ability to purchase, depend on a host of factors that remain consistent over time.

Question 13

Green marketing was more common in the United States when agricultural products were the largest source of income.

Question 14

Applying age as a basis to identify customers is always unethical, as it involves stereotyping.

Question 15

The members of Generation X are also referred to as Digital Natives.

Question 16

The marketing firm must consider the entire business process, all from a consumer's point of view.

Question 17

Generation X is the biggest cohort since the original postwar World War II boom.

Question 18

Sarah, who lives in Boston, refers to Pepsi as "tonic," while Kent, who lives in Chicago, calls it "pop." This is an example of a regional culture difference that marketers must consider.

Question 19

People participate in many cultures, which makes it more important for marketers to have products or services that can relate to more than one particular group.

Question 20

Swanson Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.

Question 21

One of the goals of value-based marketing is to

A)provide the greatest value for the least profit.
B)sell products for the highest possible price.
C)offer greater value than competitors offer.
D)determine the value of the brand.
E)sell to all consumers, regardless of their needs.

Question 22

Nearly 50 percent of U.S. adults now recycle their soda bottles and newspapers, compelling marketers to practice

A)healthy marketing.
B)wellness marketing.
C)green marketing.
D)greenwashing.
E)economic marketing.

Question 23

As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.

Question 24

Successful firms focus their efforts on satisfying customer needs that

A)are easiest to satisfy.
B)provide minimal core value.
C)are important to all generational cohorts.
D)competitors have tried and failed to satisfy.
E)match their core competencies.

Question 25

Northeast Foodbank Corp. works in cooperation with three local grocery stores and a meat market to supply food to underprivileged families. The grocery stores and meat market are examples of

A)cultural cohorts.
B)corporate partners.
C)cartels.
D)cooperatives.
E)customers.

Question 26

Matt knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Matt's firm must look at everything it does

A)in order to value each person in the organization.
B)for each generational cohort.
C)to avoid cultural clashes.
D)from a consumer's point of view.
E)to sensitize organization members to ethical values.

Question 27

Marketers must consider the entire business process from the point of view of the

A)macroenvironment.
B)corporate partners.
C)immediate environment.
D)competition.
E)consumer.

Question 28

Strategic efforts to supply consumers with environmentally friendly merchandise are called

A)reduce, reuse, recycle.
B)green marketing.
C)the green generation.
D)the inconvenient truth.
E)earth marketing.

Question 29

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world traveled to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that

A)are easiest to satisfy.
B)provide minimal core value.
C)are important to all generational cohorts.
D)competitors have tried and failed to satisfy.
E)match its core competencies.

Question 30

Big Blue Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Big Blue Trucking is an example of a

A)cultural cohort.
B)corporate partner.
C)cartel.
D)cooperative.
E)customer.

Question 31

Sun-Jun, the marketing director of Make It Move, is developing a promotional campaign for a new fitness program. Before initiating the campaign, Sun-Jun will need to assess his competitors' strengths, weaknesses, and likely reactions to his firm's

A)promotional activities.
B)core competencies.
C)just-in-time processes.
D)customer satisfaction reviews.
E)corporate partners.

Question 32

When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?

A)green marketing
B)time-poor society
C)cultural diversity
D)technological advances
E)regulatory issues

Question 33

The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal.

Question 34

Parkline Company knew that its customers were interested in environmentally-friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all-natural ingredients, even though Parkline's plant was one of the worst polluters in town. The term for this practice is

A)deceptive advertising.
B)greenwashing.
C)environmental exploitation.
D)virtual greening.
E)enviromarketing.

Question 35

Many U.S. consumers are purchasing hybrid automobiles because they leave less of a carbon footprint. These consumers are called

A)green consumers.
B)smart consumers.
C)hybrid consumers.
D)economical consumers.
E)greenwashing consumers.

Question 36

In the immediate marketing environment, the first factor that affects the consumer is

A)demographics.
B)cultural values.
C)social trends.
D)the firm itself.
E)technological advances.

Question 37

Which group is practicing greenwashing?

A)A company markets a product made from recycled glass bottles.
B)A company charges more for a hybrid car than for a similar gas model.
C)A company donates money to a school reading project so it can advertise itself as environmentally friendly.
D)The Smiths installed energy-saving lightbulbs in their rental apartment buildings.
E)The corner Laundromat stocks only eco-friendly detergents in its vending machines.

Question 38

The tool that allows a firm to outline how customers, the company, competitors, and corporate partners affect marketing strategy is called the

A)macroenvironment analysis framework.
B)marketing environment analysis framework.
C)consumer analysis framework.
D)immediate environment analysis framework.
E)competitive analysis framework.

Question 39

Inflation refers to the growth of industry within a country.

Question 40

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

A)fake greening.
B)greenwashing.
C)greenbaiting.
D)green puffery.
E)greenbelting.

Question 41

Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's

A)society.
B)politics.
C)demographics.
D)macroenvironment.
E)culture.

Question 42

Natalie is considering using a radio commercial in Italy that was designed for her company's U.S. markets. Which cultural aspect should she take into account when making this decision?

A)dress
B)symbols
C)demographics
D)language
E)social trends

Question 43

Which statement accurately describes the current income distribution in the United States?

A)The purchasing power of lower-income groups has been steadily rising.
B)The middle class is outpacing all other income groups.
C)Wealthy households are outpacing both poor and middle-class households.
D)The income distribution among all households is becoming more equal.
E)Wealthy households are declining rapidly in purchasing power.

Question 44

Renata has been assigned the task of learning which age groups and which gender typically buys the company's running shoes. What information should Renata review to obtain the most accurate result?

A)generational cohorts
B)income levels
C)regional culture
D)ethnicity
E)demographics

Question 45

When a company attempts to appeal to the same target market across countries, for example, by using the same images and copy on a specific product advertisement but changing only the language in which the copy is displayed, that company is considering

A)regional culture.
B)consumer culture.
C)geographic culture.
D)country culture.
E)marketing culture.

Question 46

Political candidates are notorious for appealing to the different beliefs and values of potential voters in different areas of the country. These politicians are appealing to differences in

A)popular culture.
B)regional culture.
C)demographics.
D)generational cohorts.
E)country culture.

Question 47

________ is distinguished from the other generational cohorts in that the group's oldest members are now collecting Social Security.

A)Baby Boomers
B)Generation W
C)Generation X
D)Generation Y
E)Generation Z

Question 48

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment

A)is external.
B)is easier to understand.
C)is easier to control.
D)has fewer components.
E)is internal.

Question 49

Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life.

A)regional cultures
B)inflationary expectations
C)political affiliations
D)purchase behaviors
E)cultural values

Question 50

Select a key trait that best describes Generation Y.

A)varies the most in age, ranging from teenagers to adults who have their own families
B)the largest population of 50-plus consumers
C)was born immediately after World War II
D)was the first generation of latchkey children
E)have had access to the Internet for their entire lives

Question 51

What is included in a firm's macroenvironment?

A)culture
B)competitors
C)geographic location
D)corporate partners
E)company capabilities

Question 52

Late in the day on September 11, 2001, the day of the World Trade Center attacks, customers purchased all the American flags Walmart stores had available, nationwide. These purchases exemplified displays of

A)regional culture.
B)the unification effect.
C)country culture.
D)acculturation.
E)the Walmart Effect.

Question 53

In New England, foot-long sandwiches are called "grinders," while in many other parts of the country they are called "subs." This is an example of the impact of

A)regional culture.
B)country culture.
C)generational factors.
D)social trends.
E)regulatory factors.

Question 54

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

A)everyone is equal.
B)income in the United States has become more unevenly distributed.
C)everyone has been equally affected by the recession.
D)there is increasing purchasing power among lower-income groups.
E)middle-income consumers are quickly becoming upper-income consumers.

Question 55

When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using ________ to see if the media "fit" with their advertising agenda.

A)country culture
B)regional culture
C)demographics
D)micromarketing measures
E)scenario planning

Question 56

Marketers wanting to use social media to reach consumers should understand that people in the ________ group were born into a world that was already full of digital technologies such as the Internet and social networks.

A)Baby Boomers
B)Generation W
C)Generation X
D)Generation Y
E)Generation Z

Question 57

Marketers will often decide which population segments to target based on income because income determines consumer

A)purchasing power.
B)education level.
C)marketing influence.
D)desirability.
E)occupational level.

Question 58

The first "latchkey" children belong to which generational cohort?

A)Baby Boomers
B)Generation W
C)Generation X
D)Generation Y
E)Generation Z

Question 59

After conducting some targeted research and learning that most of its customers were females, Kids Stuff International designed a new children's stroller that would appeal more to men: a high-tech, black-and-chrome version with dirt bike tires. This research was based on

A)cultural expectations.
B)generational cohorts.
C)demographic data.
D)marketers' general perceptions.
E)green marketing.

Question 60

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

A)social concerns.
B)culture.
C)demographics.
D)generational cohorts.
E)religion.

Question 61

Which U.S. legislative action specifically prohibits monopolies?

A)Sherman Antitrust Act
B)Federal Trade Act
C)Robison-Patman Act
D)Financial Reform Law
E)Consumer Product Act

Question 62

As gender roles have blurred, status, attitudes, and behaviors related to gender have shifted. This means that marketers should

A)replace all gendered marketing with nongendered marketing.
B)remove gender as a factor in their promotional materials.
C)be careful about gender neutrality in positioning their products.
D)maintain gender boundaries in all their marketing efforts.
E)reinforce the importance of gender roles.

Question 63

What would be a likely consumer response when inflation increases?

A)Consumers buy more discretionary merchandise.
B)Consumers buy fewer personal care and home entertainment products.
C)Off-price and discount retailers suffer from lower sales.
D)Consumers buy lower-priced foods.
E)Consumers buy less food.

Question 64

Which group was born into a world where the Internet and other digital technologies already existed?

A)Baby Boomers
B)Generation W
C)Generation X
D)Generation Y
E)Generation Z

Question 65

The poorest 25 percent of the U.S. population earned less than $24,002 per year in 2016. This meant they had

A)average purchasing power.
B)median purchasing power.
C)high purchasing power.
D)no purchasing power.
E)the lowest purchasing power.

Question 66

For some products, marketers can combine education level with other data like occupation and income to obtain

A)a sense of consumers' regional culture.
B)consumers' value sensitivity quotient (VSQ).
C)the educational value equation.
D)complete profiles of individual consumers.
E)fairly accurate predictions of purchasing behavior.

Question 67

________ is the cost to the customers or the fee the bank charges those customers for borrowing money.

A)Interest
B)A service charge
C)Tax
D)Tariff
E)A dividend

Question 68

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________environment of business.

A)communication
B)political\legal
C)demographic
D)social
E)technological

Question 69

In the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent. This change in value represents

A)interest destabilization.
B)inflation.
C)recession.
D)foreign currency fluctuations.
E)global financial impact.

Question 70

CVS is promoting greater health and wellness in their communication strategies by advocating that people should embrace "real" beauty. Various marketing channels help consumers discern the reality of the images they see. This is a response to a ________trend that surrounds health and wellness concerns.

A)marketing
B)social
C)media
D)technological
E)service

Question 71

Marketers in the United States are paying increasing attention to ethnic groups because

A)they represent a majority of the population in nonurban areas of the country.
B)approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.
C)they are more susceptible to marketing messages.
D)government subsidies assist marketers attempting to communicate value to these groups.
E)country culture is replacing regional culture as a key marketing consideration.

Question 72

When Marcus went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as

A)currency fluctuation.
B)inflation.
C)recession.
D)interest.
E)deflation.

Question 73

As the fastest growing ethnic population in the United states, Asian Americans represent

A)a consumer group for marketers to explore as a potential opportunity.
B)the easiest consumer group for marketers to access.
C)too populous a consumer group for marketers to segment.
D)too uniform a consumer group for marketers to segment.
E)too disparate a consumer group for marketers to segment.

Question 74

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups will

A)create inflationary expectations.
B)disappear as ethnicity becomes a stronger consideration.
C)create opportunities to provide value to each group.
D)vanish once the recession ends.
E)force more people to do shopping online.

Question 75

A generational cohort is a group of people who

A)purchase only one brand of a product throughout their lifetime.
B)grew up and went to school together.
C)have the same beliefs and values as the generation that came before them.
D)have similar purchase behaviors because they have shared the same stage of life.
E)are not open to new things.

Question 76

A listing on eBay featured a refurbished iMac desktop computer; interested buyers all ranged in age from teenagers to adults with their own families. Based on the ages of those showing interest, these buyers were likely from which generational cohort?

A)Baby Boomer
B)Gen X
C)Gen Y
D)Gen Z
E)the Digital Natives

Question 77

Bernadette, a marketing executive who was born in 1962, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?

A)Baby Boomer
B)Gen X
C)Gen Y
D)Gen Z
E)Millennials

Question 78

Marketers know that, compared to high school graduates who are working full time, college students

A)will earn less over their working lifetime.
B)spend their disposable dollars differently.
C)are less likely to buy textbooks.
D)have almost identical spending patterns.
E)are more likely to drink beer and less likely to drink wine.

Question 79

Greater emphasis on health and wellness concerns, greener consumers, and privacy concerns are all ________ that shape consumer values and impact marketing.

A)macroeconomic trends
B)environmental trends
C)social trends
D)competing trends
E)generational trends

Question 80

Which ethnic group has demonstrated increasing influence on mainstream U.S. culture, which, in turn, will impact the way firms approach their marketing strategy to this group?

A)Hispanics
B)Asians
C)Pacific Islanders
D)Native Americans
E)Eastern Europeans