Question 1

Major companies in several industries are now directly targeting gay and lesbian consumers.

Accepted Answer

This statement is true. Major companies in industries such as retail, travel, banking, and entertainment are recognizing the spending power of the gay and lesbian community and actively marketing to them.

Question 2

Which of the following statements best describes a tiered market?
A)Specialty retailers target affluent consumers.
B)Mass market retailers target consumers with modest incomes.
C)Some retailers tailor their offerings across a range of markets,from the affluent to the less affluent.
D)All of the above.
E)None of the above.

Accepted Answer

A tiered market refers to a market that is segmented or divided into different levels or tiers, where businesses tailor their products, services, and marketing efforts to cater to the specific needs and preferences of each segment. This can include targeting affluent consumers, consumers with modest incomes, and various other demographic or economic segments. Therefore, all the provided options (A, B, C) correctly describe aspects of a tiered market.

Question 3

Once thought of as slackers,Gen Xers are now displacing the lifestyles,culture and materialistic values of the baby boomers.

Accepted Answer

This statement is true. Many Gen Xers have become successful in their careers and are now surpassing the baby boomers in terms of wealth and material possessions. They also tend to value experiences and work-life balance over constant work and accumulation of possessions.

Question 4

The ________ environment consists of factors that affect consumer buying power and spending patterns.

Accepted Answer

The answer of The ________ environment consists of factors that...

Question 5

Millennials comprise the most commercially influential demographic group in Australian history.

Accepted Answer

Baby Boomers have traditionally been considered the most commercially influential demographic group in Australian history due to their substantial population size and accumulated wealth.

Question 6

Engel's laws stipulate that as family income rises,the percentage spent on food ________,the percentage spent on housing remains constant and both the percentage spent on other categories and that devoted to savings increases.

Accepted Answer

The answer of Engel's laws stipulate that as family income...

Question 7

Population diversity refers to changes in a population's ethnic composition.

Accepted Answer

Population diversity encompasses not only changes in ethnic composition but also variations in age, gender, religion, socioeconomic status, and other demographic factors.

Question 8

Population diversity in Australia and New Zealand is increasing,and successful marketers are increasingly diversifying their marketing programs to appeal to different segments of the population.

Accepted Answer

The statement is true. Australia and New Zealand both have growing population diversity and marketers are adapting to target different segments of the population.

Question 9

The Australian and New Zealand workforces today are better educated and more white-collar than they were a generation ago.

Accepted Answer

Studies and research conducted in recent years have shown a significant increase in the number of people who have attained higher education qualifications and the rise of white-collar jobs in both Australia and New Zealand.

Question 10

Generation Xers are defined as much by their ________ as by their age.

Accepted Answer

The answer of Generation Xers are defined as much by...

Question 11

As baby boomers reach their peak earning and spending years,they represent important markets for high-ticket items and luxury goods.

Accepted Answer

Baby boomers, born between 1946 and 1964, are now in their 50s, 60s, and 70s, making them the largest and wealthiest demographic group. As they reach their peak earning and spending years, they have become an important market for high-ticket and luxury goods.

Question 12

The study of human populations in terms of size,density,location,age,sex,race,occupation and other statistics is known as ________.

Accepted Answer

The answer of The study of human populations in terms...

Question 13

Ernst Engel's laws generally have been supported by recent studies.He discovered that as family income rises,the percentage spent on ________ declines and the percentage spent on ________ remains about constant.
A)food;clothing
B)clothing;recreation\entertainment
C)savings;transportation
D)food;housing
E)recreation\entertainment;savings

Accepted Answer

Ernst Engel's law states that as income rises, the percentage of income spent on food decreases while the percentage spent on housing remains constant or increases slightly. Recent studies have generally supported this concept. Therefore, the correct answer is D- food and housing, as the percentage spent on food declines and the percentage spent on housing remains about constant.

Question 14

The demographic environment is of major interest to marketers because it involves people,and people make up markets.

Accepted Answer

The demographic environment refers to the characteristics of human populations, such as age, gender, income, education, race, and ethnicity. Marketers are interested in this environment because it helps them understand the needs, wants, and behaviors of different consumer groups, which in turn helps them develop effective marketing strategies to reach their target audiences.

Question 15

Millennials represent a larger demographic segment than the baby boomers or Gen Xers.

Accepted Answer

According to population data, millennials (born between 1981-1996) are the largest generation in the United States, outnumbering both baby boomers (born between 1946-1964) and Gen Xers (born between 1965-1980).

Question 16

According to Engel's laws,consumers tend to spend a larger percentage of income on savings as income rises.

Accepted Answer

The answer of According to Engel's laws,consumers tend to spend...

Question 17

Which of the following combinations of expenses use up most household income?
A)food,housing,retirement planning
B)housing,insurance,taxes
C)food,housing,transportation
D)housing,taxes,transportation
E)food,travel,savings

Accepted Answer

Food, housing, and transportation are the three largest expenses for most households, and therefore use up most of the household income.

Question 18

Changes in demographics - in the nature of human populations - mean changes in markets.

Accepted Answer

Demographic changes, such as aging populations, changes in birth rates, and shifts in cultural and ethnic diversity, can significantly impact consumer preferences and behavior, ultimately leading to changes in markets.

Question 19

Marketers must increasingly consider the needs of traditional households because this segment of the population is growing more rapidly than non-traditional households.

Accepted Answer

The answer of Marketers must increasingly consider the needs of...

Question 20

Most household income is used up in purchasing food,housing and transportation.

Accepted Answer

According to the Bureau of Labor Statistics, these three categories (food, housing, and transportation) account for the majority of household spending in the United States.

Quiz 3: Analysing the Marketing Environment