Question 1

Although Shelby's income is comfortable,she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment.Shelby lacks
A) disposable income.
B) willingness to spend.
C) buying power.
D) credit.
E) discretionary income.

Accepted Answer

Shelby hesitates to purchase a new car due to concerns about future economic conditions affecting her job, indicating a lack of willingness to spend despite having a comfortable income.

Question 2

The strength of a person's "buying power" depends on economic conditions and
A) level of income.
B) size of resources that can be traded in an exchange.
C) how much a consumer will buy.
D) a consumer's spending pattern.
E) levels of median wealth.

Accepted Answer

The answer of The strength of a person's "buying power"...

Question 3

Consumer confidence is at a low during periods of
A) recession.
B) prosperity.
C) recovery.
D) slowdown.
E) depression.

Accepted Answer

The answer of Consumer confidence is at a low during...

Question 4

Which of the following terms refers to consumers' propensity to buy?
A) Disposable income
B) Discretionary income
C) Buying power index
D) Buying power
E) Willingness to spend

Accepted Answer

Willingness to spend refers to the inclination or readiness of consumers to purchase goods or services. The other answer options are related to income and purchasing power, which may affect consumers' propensity to buy but do not directly refer to it.

Question 5

Discretionary income is associated with all of the following except
A) automobiles.
B) education.
C) pets.
D) furniture.
E) food.

Accepted Answer

Discretionary income refers to the money left over after all necessary expenses, such as housing, utilities, and groceries, are paid. Therefore, choice E, food, is not typically associated with discretionary income as it is considered a necessary expense. The other choices listed, such as automobiles, education, pets, and furniture, are often seen as discretionary expenses that individuals may choose to spend their extra money on.

Question 6

Which category of income are marketers most interested in?
A) Wealth
B) Disposable income
C) Discretionary income
D) Total income
E) Extra income

Accepted Answer

The answer of Which category of income are marketers most...

Question 7

A person's buying power is a function of
A) disposable income.
B) past income,natural resources,and financial resources.
C) wages,rents,and investments.
D) income,wealth,and credit.
E) discretionary income.

Accepted Answer

Buying power is determined by a combination of income (including disposable income), wealth, and credit. Past income and natural resources may have an impact on buying power, but they are not direct determinants. Wages, rents, and investments are components of income, but other factors such as savings and debt must also be considered, making D the most comprehensive answer choice. Discretionary income, while important for purchasing non-essential goods and services, is only a portion of overall income and therefore not as relevant in determining buying power.

Question 8

The accumulation of past income,natural resources,and financial resources is known as
A) income.
B) collected income.
C) credit.
D) wealth.
E) savings.

Accepted Answer

The accumulation of past income, natural resources, and financial resources is known as wealth. This includes any assets, such as property, savings, and investments, as well as any income that has been earned but not yet spent.

Question 9

What is the most important factor in distinguishing disposable income from income?
A) Taxes
B) Housing
C) Employment levels
D) Consumer spending
E) Saving

Accepted Answer

The answer of What is the most important factor in...

Question 10

Which of the following statements is true?
A) Political officials can not influence how much a government agency purchases and from whom.
B) A recent U.S.Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.
C) Company sponsored political advertising can only focus on topics and not on candidates.
D) Political officials can not accept direct corporate campaign contributions.
E) Companies can not participate in the political process through lobbying.

Accepted Answer

A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.

Question 11

Consumer confidence and willingness to spend begins to increase during periods of ____,and marketers must remain very flexible to make the necessary adjustments.
A) depression
B) prosperity
C) recovery
D) growth
E) recession

Accepted Answer

The answer of Consumer confidence and willingness to spend begins...

Question 12

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government.The farmers are most likely to attempt to influence which aspect of the marketing environment?
A) Sociocultural
B) Technological
C) Competitive
D) Economic
E) Political

Accepted Answer

The complex maze of regulations imposed by the Japanese government indicates that the obstacle is mainly political in nature, therefore the farmers would attempt to influence the political aspect of the marketing environment.

Question 13

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town,and now she is planning on buying a new outfit for the concert.What type of resources is Heidi making decisions about?
A) Disposable income
B) Wealth
C) Buying power
D) Discretionary income
E) Savings income

Accepted Answer

Heidi is making a decision about her discretionary income, which is the income that is left over after all necessary expenses have been paid. She is choosing to use this income to purchase concert tickets and a new outfit, which are not necessary expenses but rather discretionary or optional expenses.

Question 14

Why are marketers interested in consumers' levels of disposable income?
A) It accurately predicts future buying power.
B) It increases current buying power.
C) It is what is left after taxes and savings to buy luxuries with.
D) It is a ready source of buying power.
E) It is essential for forecasting future business trends.

Accepted Answer

The answer of Why are marketers interested in consumers' levels...

Question 15

When using credit to make purchases,consumers are
A) decreasing current buying power and increasing future buying power.
B) increasing their present discretionary income to extend purchasing power.
C) putting themselves at significant risk of financial disaster.
D) forgoing the accumulation of wealth to increase current income.
E) increasing current buying power at the expense of future buying power.

Accepted Answer

When using credit to make purchases, consumers are increasing their current buying power but at the expense of future buying power as they will have to pay back the borrowed amount with interest in the future. If the consumer is not able to manage their debt, it can lead to financial strain and possibly even bankruptcy. Therefore, option E is the best choice.

Question 16

Which of the following companies would probably be most interested in tracking discretionary income levels?
A) Safeway food stores
B) BMW automobiles
C) Gulf States Utilities
D) General Mills
E) Florida Orange Growers

Accepted Answer

BMW automobiles would be most interested in tracking discretionary income levels as their target market is consumers with high levels of discretionary income who are able to afford luxury automobiles.

Question 17

The amount of money received through wages,rents,investments,pensions,and subsidies is called
A) income.
B) wealth.
C) discretionary income.
D) prosperity.
E) credit.

Accepted Answer

The term used to describe the amount of money received through wages, rents, investments, pensions, and subsidies is income.

Question 18

By offering credit and financing through its GMAC division,General Motors is trying to help consumers
A) expand future buying power at the expense of current buying power.
B) expand disposable income at the expense of discretionary income.
C) expand current buying power at the expense of future buying power.
D) expand both disposable income and wealth.
E) decrease both disposable and discretionary income.

Accepted Answer

By offering credit and financing, GMAC allows consumers to make purchases beyond their current buying power. This means they may have to pay off debt over time, which reduces their future buying power. Therefore, this option represents expanding current buying power at the expense of future buying power.

Question 19

If Toby Roberts has an income of $30,000,pays $6,000 in rent,$1,200 in utilities,and $5,000 in taxes per year,his disposable income is
A) $7,800.
B) $14,000.
C) $9,000.
D) $25,000.
E) $20,000.

Accepted Answer

The answer of If Toby Roberts has an income of...

Question 20

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor.The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.
A) economic
B) competitive
C) political
D) environmental
E) sociocultural

Accepted Answer

The issue of child labor is a political issue as it has been regulated by governments through laws and policies. Textile companies have to comply with these regulations, so they are likely to try to influence political forces. Economic forces are not directly related to the issue of child labor, competitive forces are not mentioned in the passage, environmental forces are not relevant, and sociocultural forces may indirectly affect the issue but not as directly as political forces. Therefore, the best choice is C.

Quiz 3: The Global Marketing Environment

Although Shelby's income is comfortable,she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment.Shelby lacks

The strength of a person's "buying power" depends on economic conditions and

Consumer confidence is at a low during periods of

Which of the following terms refers to consumers' propensity to buy?

Discretionary income is associated with all of the following except

Which category of income are marketers most interested in?

A person's buying power is a function of

The accumulation of past income,natural resources,and financial resources is known as

What is the most important factor in distinguishing disposable income from income?

Which of the following statements is true?

Consumer confidence and willingness to spend begins to increase during periods of ____,and marketers must remain very flexible to make the necessary adjustments.

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government.The farmers are most likely to attempt to influence which aspect of the marketing environment?

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town,and now she is planning on buying a new outfit for the concert.What type of resources is Heidi making decisions about?

Why are marketers interested in consumers' levels of disposable income?

When using credit to make purchases,consumers are

Which of the following companies would probably be most interested in tracking discretionary income levels?

The amount of money received through wages,rents,investments,pensions,and subsidies is called

By offering credit and financing through its GMAC division,General Motors is trying to help consumers

If Toby Roberts has an income of $30,000,pays $6,000 in rent,$1,200 in utilities,and $5,000 in taxes per year,his disposable income is

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor.The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.