Question 1

Nearly 90% of Generation X is either living in a rental or living with parents; therefore, for this demographic segment, spending on homes and home furnishings is a low priority.

Accepted Answer

On the contrary, Generation X is contributing 18 percent of the total spending power of consumers in the United States, focusing on the family and children. Food, housing, transportation, and personal services are the important categories for this market segment. Generation X-ers spend 78 percent more on personal services than the average consumer. Time is at a premium as they strive to balance work and family, so they outsource daily tasks such as house cleaning, lawn mowing, babysitting, and other domestic chores.

Question 2

Younger boomers spend a substantial amount of their income on television sets and stereo systems, rather than on major appliances, such as refrigerators and stoves.

Accepted Answer

The estimated spending power of the younger boomers is $1.1 trillion, and they spend primarily on mortgage, home furnishings and renovation.

Question 3

Because the focus of Generation X is on the family and children, they spend heavily on food, housing, transportation, and personal services.

Accepted Answer

Generation X-ers spend 78 percent more on personal services than the average consumer. Time is at a premium as they strive to balance work and family, so they outsource daily tasks such as house cleaning, lawn mowing, babysitting, and other domestic chores.

Question 4

For Generation Y, time is at a premium as they strive to balance work and family so they outsource daily tasks such as house cleaning, lawn mowing, babysitting, and other domestic chores.

Accepted Answer

Generation Y spends substantially on clothes, automobiles, and college. Nearly 90 percent of this group is either living in a rental or living with parents; spending on homes and home furnishings is a low priority for this market.

Question 5

Because baby boomers represent 42% of the population, they have been divided into two groups: younger boomers, born between 1954 and 1964, and older boomers, born between 1942 and 1953.

Accepted Answer

Baby boomers are a substantial market, representing 42% of the population; as a result, they have been divided into two groups: younger boomers and older boomers.

Question 6

For older baby boomers, the focus is on the home and family, with the majority, 60%, owning their own home.

Accepted Answer

Older boomers' focus is on upgrading their homes, ensuring education and independence of their children, obtaining luxury items like boats, and going on vacation. In spite of the higher cost of children's education, this group can afford to remodel their home, purchase better furniture, and buy higher-quality clothing for themselves.

Question 7

Priorities for the older boomers, born between 1942 and 1953,, are upgrading their homes, ensuring education and independence of their children, luxury items like a boat, and going on vacations.

Accepted Answer

Older boomers account for 24 percent of the total spending-or an estimated $1 trillion. Among priorities of this demographic group are upgrading their homes, ensuring education and independence of their children, obtaining luxury items like boats, and going on vacation. In spite of the higher cost of children's education, this group can afford to remodel their homes, purchase better furniture, and buy higher-quality clothing for themselves. Also, insurance and investments are high-ticket items as they begin to think about their later years and retirement. With fewer responsibilities at home, older boomers spend considerably more on vacation and recreation than any of the other demographic groups.

Question 8

Zoomers, a subcategory of seniors, refuse to retire, and want to continue to look good physically; consequently, they are spending large amounts of money on cosmetic surgery, clothing, and sports cars.

Accepted Answer

The zoomers are a subcategory of older boomers, individuals born between 1942 and 1953.

Question 9

Empty nesters, ages 55-64, focus on home mortgages, new furniture, new automobiles, and personal indulgence items since their children have left home and they have already paid for their college.

Accepted Answer

Empty nesters often have more disposable income as their children become financially independent, allowing them to focus on home improvements, new purchases, and personal indulgences.

Question 10

For seniors, individuals over the age of 65, health care becomes the number one priority as this group spends six times more on health care than the average person.

Accepted Answer

Health care becomes the number one priority for Seniors; this group spends six times more on health care than the average person.

Question 11

Elements of culture include language, religion, cultural values, norms, social status, ethnicity, and heredity.

Accepted Answer

Elements of culture include language, religion, cultural values (beliefs about a specific mode of conduct or desirable end-state that guide the selection or evaluation of behavior), and norms (which are derived from values and are rules that dictate what is right or wrong, acceptable or unacceptable).

Question 12

Individualism and materialism were dominant values in the United States until September 11, 2003. Since then family values, the home, and religion are making a comeback as important cultural values.

Accepted Answer

Since September 11, 2003, family values, the home, and religion are making a comeback as important cultural values-this is an example of cultural change.

Question 13

The cultural landscape in the United States has changed radically with the increase in multiculturalism.

Accepted Answer

The cultural landscape in the United States has changed radically with the increase in multiculturalism. Ethnic subcultures have, in fact, shaped and continue to shape culture in the United States.

Question 14

Marketing is an important driver of the economy; in turn, the economy has a profound impact on marketing decisions and on consumers.

Accepted Answer

Marketing influences consumer behavior and demand, which drives economic activity. Conversely, economic conditions affect marketing strategies and consumer purchasing power.

Question 15

When the United States experiences a downturn in the economy, reverberations are felt among developed nations, but not in emerging markets.

Accepted Answer

When the United States experiences a downturn in the economy, reverberations are felt worldwide.

Question 16

While economies and markets worldwide are interdependent, some markets and economies are more advanced than others and tend to grow more rapidly.

Accepted Answer

There is substantial disparity in economic development. And, while economies and markets worldwide are interdependent, some markets and economies are more advanced than others and tend to grow more rapidly.

Question 17

Examples of middle income countries with emerging markets include Brazil, Argentina, Chile, Peru, and the transitional economies of Central and Eastern Europe.

Accepted Answer

These countries are often classified as middle-income with emerging markets due to their developing economies and significant growth potential.

Question 18

The categories of countries based on the World Bank's classification system include developed countries, emerging markets, and industrialized countries.

Accepted Answer

Starting in 2006, the categories of countries based on the World Bank's classification system include high-income countries, middle-income countries, and low-income countries.

Question 19

High-income countries offer marketers great potential because they have consumers with the highest per capita income, but they also present challenges because their markets are in the mature stage, consumers have established preferences, and competition is intense.

Accepted Answer

High-income countries offer marketers great potential, especially when it comes to new product offerings, because they have consumers with the highest per capita income. However, they also present challenges because their markets are in the mature stage, consumers have established preferences, and competition is intense.

Question 20

Most of the countries in Africa would be classified as middle-income countries since they have emerging markets.

Accepted Answer

Most of the countries in Africa are low-income countries.

Quiz 2: The Environment of Marketing in the Twenty-First Century