Chapter 3
gross income
the total amount of money made in one year by a person, household, or family unit
trends in the US population mean that it is likely that the term ________ as it is currently used will become obsolete. 'blended family' 'suburban' 'minority' 'millennial'
'minority'
self-regulation
an industry attempts to police itself
generation z
consumers born between 1997 and 2010
Baby boomers have interest in financial planning because ______. they have traditionally not been paying attention to savings, preferring to live on credit they will all be 65 or older by 2030 their parents frequently tell them to consider this early they have very little wealth now but will want to retire someday
they will all be 65 or older by 2030
Today's consumers not only want the best quality at the best price for cars or houses, but also for any purchase they engage in. This changing value is called ______. quality orientation social action sustainability value consciousness
value consciousness
two types of statistical areas
1. metropolitan statistical area 2. micropolitan statistical area
The number of people aged ________ is expected to double in the coming decades. 35 to 49 60 and older between 18 and 22 below 18
60 and older
generation y (millennials)
62 million americans born between 1981 and 1996 aka echo-boom exerts influence on music, sports, computers, video games and all forms of communication and networking related to smartphones
baby boomers
76 million children born between 1946 and 1964
Existing rivalries
Airlines offer discounts for making reservations early or charge penalties for canceling reservations.
What is precycling? An effort by consumers to reuse products as many times as possible An effort by manufacturers to get consumers to purchase recycled products An effort by consumers to consciously seek out recycled products An effort by manufacturers to avoid creating waste in the production process
An effort by manufacturers to avoid creating waste in the production process
Which ethnic group's US population is expected increase to 24 million by 2030? Hispanic Asian African American Caucasian
Asian
competitive
alternative forms of competition, small businesses, rivalries and substitutions
Which generational cohort was born between 1946 and 1964? Generation X Baby Boomers Generation Y Millennials
Baby Boomers
The best known self-regulatory group is the ______. Food and Drug Administration Federal Trade Commission Small Business Administration Better Business Bureau
Better Business Bureau
Which two of the following are the broad categories that should be considered when analyzing the economic component in an environmental scan? Consumer income Macroeconomic conditions Exchange rates Political environment
Consumer income Macroeconomic conditions
When scanning the environment for trends, a company typically gathers information from five sources. Select three of those sources from the following list. Economic Regulatory Political Social
Economic Regulatory Social
The ________ might issue a cease and desist order or require corrective advertising as a response to deceptive business practices. BBB EU EEOC FTC
FTC
According to the most recent Census Bureau estimates, _______ is one of the states that has seen the fastest growth in population in the nation. Georgia Florida New York Maryland
Florida
Of the various generational cohorts, which spends the most on food, housing, apparel, and entertainment? Millennials Baby Boomers Generation X Generation Y
Generation X
What generational cohort consists of people born between 1965 and 1980? Baby boomers Generation X Tweens Generation Y
Generation X
Which generational cohort's membership is known to be strong-willed, adept at creating work-life balance, and optimistic? Generation Y The greatest generation Generation X Baby boomer
Generation Y
________ is the generational cohort that includes Americans born between 1981 and 1996. Generation Y Baby boomers Generation Z Generation X
Generation Y
The post-millennial cohort is also referred to as ______. the Facebook generation echo-boomers baby boomers Generation Z
Generation Z
________ is the generational cohort that includes Americans born between 1997 and 2010. Generation X Baby boomers Generation Y Generation Z
Generation Z
What two statements are characteristic of divorce in today's American household? It is less likely now that divorced people will remarry. Gray divorce is the term used to describe divorce among baby boomers. The increase in cohabitation may be a contributing factor to declining divorce rates. The likelihood that a couple will divorce now exceeds 60 percent.
Gray divorce is the term used to describe divorce among baby boomers. The increase in cohabitation may be a contributing factor to declining divorce rates.
micropolitan statistical area
Has at least one urban cluster of at least 10,000 but less than 50,000 and adjacent territory has a high degree of social and economic integration
Companies will need to adapt to reach Generation X consumers. Which of the following are business tactics that would most appeal to Generation X consumers? (Check all that apply.) Having websites that are interactive Opening more brick and mortar retail stores Developing authentic, family-oriented advertising Offering extravagant and expensive products
Having websites that are interactive Developing authentic, family-oriented advertising
Companies will need to adapt to reach Generation X consumers. Which of the following are business tactics that would most appeal to Generation X consumers? (Check all that apply.) Opening more brick and mortar retail stores Having websites that are interactive Developing authentic, family-oriented advertising Offering extravagant and expensive products
Having websites that are interactive Developing authentic, family-oriented advertising
metropolitan divisions
If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas
________ is predicted to have the world's largest population by 2050. The United States Mexico India Brazil
India
Power of buyers
It is easy and inexpensive for customers to switch to a different grocery store.
Barriers to Entry
Potential competitors find it difficult to recreate the wide distribution that Western Union has for its money transfer services.
Though the ________ did not explicitly make the practice of price fixing illegal, courts have subsequently relied on it to find it to be so. Sherman Act Patriot Act Free Trade Act Madrid Protocol
Sherman Act
Which two laws forbid monopolies or other actions that cause restraint in trade? The Clayton Act The Copyright Act The Anti-Monopoly Law The Sherman Antitrust Act
The Clayton Act The Sherman Antitrust Act
Advertising and promotion are regulated by which governmental body? The Federal Trade Commission The Department of Justice The Federal Advertising Commission The Consumer Product Safety Commission
The Federal Trade Commission
Power of suppliers
There is only a single producer for a vital component in a cell phone.
What statement is TRUE of unmarried partner households in the United States? These are among the fastest-growing types of household. This is another name for a blended family. This is not considered a true type of household, by definition. They are hard to track through the Census because of frequent moves.
These are among the fastest-growing types of household.
Select the three characteristics that are representative of Generation Y. They are self-reliant and family-oriented. They were born between 1997 and 2010. They are attracted to purposeful work. They are interested in memorable and personal experiences. They are passionate about the environment.
They are attracted to purposeful work. They are interested in memorable and personal experiences. They are passionate about the environment.
Select the three characteristics that are representative of Generation Z. They are financially responsible. They are hardworking multitaskers. They discover and learn online. They are extravagant in their lifestyles and purchases. They are less inclined to care about environmental and social issues.
They are financially responsible. They are hardworking multitaskers. They discover and learn online.
Select the two characteristics that are describe the buying behavior of Generation Z. They will pay more for a product if it promotes an environmental or social justice issue. They are financially irresponsible and gravitate to purchasing the latest "fad" items. They tend to find out about products through social media. They are extravagant in their lifestyles and purchases.
They will pay more for a product if it promotes an environmental or social justice issue. They tend to find out about products through social media.
consumerism
a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions
Consumerism can be described as ______. an environmental force affecting business related to alternate firms that provide luxury products a movement to increase the power and rights of consumers in dealing with institutions an attitude towards products in which all participants in an economy enjoy equal access to products an attitude towards products in which they are highly prized and that is associated with excessive consumption
a movement to increase the power and rights of consumers in dealing with institutions
What is a major population shift happening now in the United States? a dramatic shift from rural areas into cities a regional shift toward northern and eastern states a regional shift toward southern and western states a large movement of people from the cities to the suburbs
a regional shift toward southern and western states
tying arrangement
a seller requires the purchaser of one product to also buy another item in the line
exclusive territorial distributorships
a third distribution issue often under regulatory scrutiny
Which value was important to consumers in the past but is a value that is less commonly held by consumers today? individualism achievement future orientation continuous change
achievement
combined statistical areas
adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped
A family unit's gross income is composed of ______. the money earned only by adult taxpayers in the household during the year the money earned by all family members minus the income taxes paid during the year the money earned in one year by the head of household all the money earned by all members of the family unit in one year
all the money earned by all members of the family unit in one year
Self-regulation can be described as ______. an effort of consumers to limit their purchase of goods and services in recessionary periods an alternative to government control in which industry attempts to police itself an action of companies to limit their production to stop declines in prices an attempt by government to limit the number of legislative barriers it places on new and existing businesses
an alternative to government control in which industry attempts to police itself
exclusive dealing
an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors
marketspace
an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
Critics of this form of competition suggest that because there are few sellers, price competition among firms is not desirable because it leads to reduced profits for all producers. pure competition an oligopoly a monopoly monopolistic competition
an oligopoly
An example of ________, is the elimination of passwords based on facial or fingerprint recognition. blockchain wearable technology authentication technology automation
authentication technology
An example of ________, is the elimination of passwords based on facial or fingerprint recognition. wearable technology authentication technology automation blockchain
authentication technology
Capital requirements, advertising expenditures, product identity, distribution access, and switching costs for customers can all act as ________ in the competitive environment. barriers to entry power for suppliers power for buyers substitution possibilities
barriers to entry
Why are baby boomers sometimes called the "sandwich generation"? because they must provide for daily living while also planning for retirement because they must try to balance their work life with their social life because they often don't earn enough for a comfortable living and have to settle with less because they must balance obligations to both their parents and their children
because they must balance obligations to both their parents and their children
The household formed by divorced people who eventually remarry and merge two previously separated units into a single one is called a ______. sibling family mixed family merged family blended family
blended family
The presence of a stepparent or stepchildren indicate what type of household? extended family pseudo-traditional family reformed family blended family
blended family
What are the newest forms of technological changes that are occurring now? (Select all that apply) RFID tagging blockchain wearable technology biotechnology
blockchain wearable technology biotechnology
barriers to entry
business practices or conditions that make it difficult for new firms to enter the market
examples of barriers to entry
capital requirements, advertising expenditures, product identity, distribution access, or the cost to customers of switching suppliers
technological
changing technology, technology's impact on customer value, technology-enabled data analytics, electronic business technologies
multicultural marketing
combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races
The Sherman Antitrust Act and the Clayton Act were passed to encourage ______. competition economic stability consumer safety intellectual property
competition
Which environmental force refers to the alternative firms that could provide a product to satisfy a specific market's needs? competition rivalry regulatory consumerism
competition
When marketers shift their focus from single transactions to creating ongoing relationships through high-engagement, experiential, customer journeys it is an example of a ______. competitive force outsourcing force business force technological force
competitive force
regulation
consists of restrictions state and federal laws place on business with regard to the conduct of its activities
Gross, disposable, and discretionary are three components related to ______. inflation consumer income gross domestic product consumer spending
consumer income
The demographic characteristics of a population and its ______ comprise the social forces in the environment. culture legal system education system political system
culture
What social force incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group? perception value consciousness culture psychographics
culture
if prices rise faster than consumer incomes, the number of items consumers can buy
decreases
Ethnicity and age are ____________ characteristics.
demographic
Social forces include _________ characteristics of the population and its culture. competitive regulatory demographic technology
demographic
social
demographic shifts, cultural changes
demographics
describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
Legislation for copyright protection was enhanced in 1998 to include ______. labeling requirements for safe use trademarks of sounds and colors patents for written inventions digital works, including music and movies
digital works, including music and movies
Legislation for copyright protection was enhanced in 1998 to include ______. patents for written inventions labeling requirements for safe use digital works, including music and movies trademarks of sounds and colors
digital works, including music and movies
The money one has left from earnings after paying for taxes and necessities is called ______. disposable income gross income savings discretionary income
discretionary income
The Generation Y cohort is also referred to as the ______. baby boomers echo-boomers Facebook generation greatest generation
echo-boomers
Rates of unemployment and inflation, as well as consumer income levels, are ways that the health of the __________ can be measured
economy
Which component of an environmental scan pertains to the income, expenditures, and resources affecting the cost of running a business or household? finance competitive industry economy
economy
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called ______. environmental scanning demographic shifts multicultural marketing movement analysis
environmental scanning
identifying and interpreting trends and developing explanations are essential to successful
environmental scanning
Select three commonly held values for today's consumers. equality self-help personal control material comfort efficiency
equality self-help personal control
The Consumer Product Safety Act created a commission to ______. require labeling for genetically modified food establish uniform product safety standards protect consumers against false advertising establish labeling requirements for food and drugs
establish uniform product safety standards
The Consumer Product Safety Act created a commission to ______. require labeling for genetically modified food protect consumers against false advertising establish labeling requirements for food and drugs establish uniform product safety standards
establish uniform product safety standards
Which two items are common demographic measures? profit ethnicity price age
ethnicity age
Select three components of the competitive environment. technology advancements existing rivalries substitution possibilities bargaining power of buyers and suppliers
existing rivalries substitution possibilities bargaining power of buyers and suppliers
The total amount of money made in one year by a person, household, or family unit is referred to as ______ income. discretionary revenue gross net
gross
The total amount of money made in one year by a person, household, or family unit is referred to as ______ income. gross discretionary net revenue
gross
Which two of the following are macroeconomic factors? gross domestic product inflation discretionary income gross income
gross domestic product inflation
Nellie makes $10/hour and worked 100 hours, thus her ______ income was $1,000. Her employer had to take $150 out of her paycheck for taxes, and after she paid for rent and groceries, she only had $400 left. This amount represents Nellie's ______ income. gross; discretionary gross; disposable discretionary; disposable disposable; discretionary
gross; discretionary
metropolitan statistical area
has at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration
companies that target baby boomers will need to respond to their interests in
health, fitness, retirement housing, financial planning and appearance
Baby boomers would be least likely to purchase which of the following products or services? high-risk investments age-defying cosmetics products to improve memory a personal trainer
high-risk investments
Select the family and living arrangements that are increasing in the United States? (Select all that apply) households with married partners households with same-sex partners households with stay-at-home mothers households with an adult child living with parents
households with same-sex partners households with an adult child living with parents
Because of the multitude of racial and ethnic identities in the U.S. consumer base, which of the following is necessary for successful multicultural marketing? in-depth marketing research uniform promotional materials products with very broad appeal manufacturing strategies to bring down costs
in-depth marketing research
Select the characteristics that are categorized as demographics. (Select all that apply) income ethnicity lifestyle age geography
income ethnicity age
What two reasons does your text cite as contributors to the increase in divorce among baby boomers? increased longevity increased economic independence decrease in religious affiliation decrease in the number of children of married couples
increased longevity increased economic independence
In a(n) ________ economy, the cost to produce and buy products escalates as prices increase. reactionary inflationary booming stagnant
inflationary
Environmental scanning is necessary for an organization to ______. identify the needs of its "green" suppliers and customers advance its technological research and development interpret trends that may be a source of opportunity realize its social responsibility goals
interpret trends that may be a source of opportunity
technology
inventions or innovations from applied science or engineering research
Barriers to entry refers to business practices or conditions that block other firms from ______. producing new types of products hiring employees joining the market making a profit
joining the market
regulatory
laws protecting competition, laws affecting marketing mix actions, self-regulation
economic
macroeconomic conditions, consumer income
pure competition
many sellers and they each have a similar product
monopolistic competition
many sellers compete with substitutable products within a price range
Consumer income is a ________ factor that is important to marketers. macroeconomic microeconomic regulatory competitive
microeconomic
Recently there has been a notable shift in US population from the suburbs to ______. redeveloped areas in downtown urban locations commercial districts that have been rezoned for residential housing more remote suburbs known as exurbs rural areas without physical access to cities
more remote suburbs known as exurbs
Developing marketing programs that reflect the unique aspects of different races is known as ______. value consciousness multicultural marketing multiracial initiative blended marketing
multicultural marketing
3 components of population shifts
natural population change (births minus deaths) state-to-state migration international migration (immigration minus emigration)
A notable trend regarding the changing US population is that _____. the Asian American population is declining Native American populations are dispersing throughout the country more African Americans are migrating to the southwest non-Hispanic Caucasians will make up less than 50% of the population by 2044
non-Hispanic Caucasians will make up less than 50% of the population by 2044
oligopoly
occurs when a small number of companies control an industry
pure monopoly
occurs when only one firm sells the product
Universal Music Group, Sony Music Entertainment, and Warner Music Group together control the majority of the market share in the music industry. What form of competition does this represent? monopoly oligopoly monopolistic competition pure competition
oligopoly
blended family
one formed by merging two previously separated units into a single household
Changes in the marketing environment are a source of
opportunities and threats to be managed
Legislation that allows companies to protect themselves from competitors copying their property includes both ______. patent law and the copyright law the Sherman and Clayton Acts the labeling law and the monopoly law the Robinson-Patman Act and trademark law
patent law and the copyright law
economy
pertains to the income, expenditures, and resources that affect the cost of running a business and household
Which environmental force refers to inventions or innovations from applied science or engineering research? competitive economic regulatory technology
technology
One way that technology improves production is by helping manufacturers avoid creating waste by reducing the amount of packaging they use. This is referred to as ______. tech-cycling precycling recycling upcycling
precycling
The Sherman Act focuses on which component of the marketing mix? promotion place product price
price
Inflation may harm marketers when ______. prices decrease to the benefit of their competitors the cost of producing goods plummets the low prices are only available to consumers for a short time prices rise faster than consumer incomes
prices rise faster than consumer incomes
Consumer-oriented federal laws cover what two categories? employee safety standards restrictions on low-price strategies product safety labeling requirements
product safety labeling requirements
To get a comprehensive look at your competition, you should consider firms that ______. provide a product that satisfies the same specific need as yours does are known by the consumer to provide desirable products are known by the consumer to offer low prices provide a product indistinguishable from yours
provide a product that satisfies the same specific need as yours does
An environmental scan will include ___________ forces impacting a business by way of state and federal laws that may restrict its activities.
regulatory
Which environmental force consists of restrictions state and federal laws place on business with regard to the conduct of its activities? regulatory legislative economic competitive
regulatory
When adjusted for inflation, gross income has been ________ since 1970. increasing steadily and consistently relatively stable increasing dramatically decreasing dramatically
relatively stable
requirement contracts
require a buyer to purchase all or part of its needs for a product from one seller for a time period
The changing ________ of men and women in the marketplace is one of the most notable cultural changes in the United States in the past 30 years. vocations personalities roles abilities
roles
culture
second social force that incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group
Value consciousness is exhibited by consumers when they ______. proactively support brands with progressive characteristics purchase products that are consistent with their own value systems tell friends about the activities of the companies behind the brands seek or bargain for a better price
seek or bargain for a better price
Value consciousness is exhibited by consumers when they ______. purchase products that are consistent with their own value systems seek or bargain for a better price tell friends about the activities of the companies behind the brands proactively support brands with progressive characteristics
seek or bargain for a better price
Recently, mobile phone makers have introduced phones with large easy-to-read buttons to tap into the growing market of ________. younger consumers seniors immigrants illiterate buyers
seniors
In the United States, the majority of new jobs are generated by _______ businesses. foreign nonprofit small large
small
The majority of the competitive landscape in this country is made up of ______. nonprofit organizations U.S. multinational corporations small businesses foreign-owned firms
small businesses
More and more companies rely on consumers to act as brand advocates among their peers. This trend relates to which environmental force? social regulatory technological economic
social
environmental trends typically arise from five sources:
social economic technological competitive regulatory forces
Select three characteristics that describe Generation X? wealthiest generation in U.S. history supportive of racial and ethnic diversity often called the "baby bust" generation born between 1965 and 1980 extravagant in their lifestyle and purchases
supportive of racial and ethnic diversity often called the "baby bust" generation born between 1965 and 1980
Which environmental force is most likely to result in replacement of existing products or companies? competitive economic regulatory technology
technology
generation X
the 55 million people born between 1965 and 1980 aka the "baby bust" following the baby boom generation of consumers who are self-reliant, supportive of racial and ethnic diversity, and better educated than any previous generation
Companies that use computer chips in their products that allow the product to be connected to a network are using ______. electronic commerce a blockchain the Internet of Things an extranet
the Internet of Things
The network of products embedded with connectivity-enabled electronics is known as ______. an extranet electronic commerce a blockchain the Internet of Things
the Internet of Things
electronic commerce (e-commerce)
the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services
competition
the alternative firms that could provide a product to satisfy a specific market's needs
Some experts predict that if the trends for men's and women's attitudes and roles in the marketplace continue, ______. females will take over purchase decisions in nearly every product category consumption patterns will continue to diverge based on differing values the buying patterns of both will eventually be very similar men will buy almost entirely personalized products, whereas females will purchase more generic ones
the buying patterns of both will eventually be very similar
value consciousness
the concern for obtaining the best quality, features, and performance of a product or service for a given price
social forces of the environment include
the demographic characteristics of the population and its culture
disposable income
the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
discretionary income
the money that remains after paying for taxes and necessities
Internet of Things (IoT)
the network of products embedded with connectivity-enabled electronics
environmental scanning
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Culture is defined as a learned and shared set of which of these? (Select all that apply) technology values ideas attitudes
values ideas attitudes
