CHP 3 : Marketing Environment

The number of people aged ________ is expected to double in the coming decades.

60 and older

What statement is TRUE of unmarried partner households in the United States?

These are among the fastest-growing types of household.

Select the three characteristics that are representative of Generation Y.

They are attracted to purposeful work. They are passionate about the environment. They are interested in memorable and personal experiences

Select the three characteristics that are representative of Generation Z.

They are hardworking multitaskers. They discover and learn online. They are financially responsible.

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 tend to find out about products through social media.

Consumerism can be described as ______.

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 regional shift toward southern and western states

Which value was important to consumers in the past but is a value that is less commonly held by consumers today?

achievement

A family unit's gross income is composed of ______.

all the money earned by all members of the family unit in one year

Self-regulation can be described as ______.

an alternative to government control in which industry attempts to police itself

What is precycling?

an effort by manufacturers to avoid creating waste in the production process

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.

an oligopoly

Culture is defined as a learned and shared set of which of these? (Select all that apply)

attitudes ideas values

An example of ________, is the elimination of passwords based on facial or fingerprint recognition.

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

Why are baby boomers sometimes called the "sandwich generation"?

because they must balance obligations to both their parents and their children

The presence of a stepparent or stepchildren indicate what type of household?

blended family

What are the newest forms of technological changes that are occurring now? (Select all that apply)

blockchain biotechnology wearable technology

Baby boomers would be least likely to purchase which of the following products or services?

high-risk investments

Select the family and living arrangements that are increasing in the United States? (Select all that apply)

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

Select the characteristics that are categorized as demographics. (Select all that apply)

income age ethnicity

What two reasons does your text cite as contributors to the increase in divorce among baby boomers?

increased longevity increased economic independence

In a(n) ________ economy, the cost to produce and buy products escalates as prices increase.

inflationary

Environmental scanning is necessary for an organization to ______.

interpret trends that may be a source of opportunity

What two actions can the FTC take regarding deceptive or misleading advertising and unfair business practices?

issue a cease and desist order order corrective advertising

It can be difficult to define discretionary versus disposable income because ______.

it is hard to determine what is a luxury and what is a necessity

Barriers to entry refers to business practices or conditions that block other firms from ______.

joining the market

Consumer income is a ________ factor that is important to marketers.

microeconomic

Trends in the US population mean that it is likely that the term ________ as it is currently used will become obsolete.

minority

According to the latest US Census, the US population is becoming larger, older, and ______.

more diverse

Which ethnic group's US population is expected increase to 24 million by 2030?

Asian

When adjusted for inflation, gross income has been ________ since 1970.

relatively stable

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.

roles

Baby boomers have interest in financial planning because ______.

they will all be 65 or older by 2030

Which generational cohort was born between 1946 and 1964?

Baby Boomers

Retirement housing is most likely to appeal to which generation?

Baby boomers

According to the most recent Census Bureau estimates, _______ is one of the states that has seen the fastest growth in population in the nation.

Florida

Of the various generational cohorts, which spends the most on food, housing, apparel, and entertainment?

Generation X

Those born during the 'baby bust' when the number of children born each year was declining are part of which generational cohort?

Generation X

What generational cohort consists of people born between 1965 and 1980?

Generation X

Which generational cohort's membership is known to be strong-willed, adept at creating work-life balance, and optimistic?

Generation Y

________ is the generational cohort that includes Americans born between 1981 and 1996.

Generation Y

The post-millennial cohort is also referred to as ______.

Generation Z

________ is the generational cohort that includes Americans born between 1997 and 2010.

Generation Z

What two statements are characteristic of divorce in today's American household?

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.

________, who may be from any race, currently make up 17% of the US population.

Hispanics

________ is predicted to have the world's largest population by 2050.

India

What was a notable change in the most recent Census?

It allowed respondents to choose more than one race.

Which statement about regulation as an environmental force is true?

Regulation often places restrictions on the activities of businesses.

Select those items that are among the five sources of environmental trends? (Select all that apply)

Regulatory Social Economic

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

Advertising and promotion are regulated by which governmental body?

The Federal Trade Commission

Which two laws forbid monopolies or other actions that cause restraint in trade?

The Sherman Antitrust Act The Clayton Act

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

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

Even when a product is well-suited for its intended targets, it won't be sold if ______.

consumers don't have the necessary income

The demographic characteristics of a population and its ______ comprise the social forces in the environment.

culture

What social force incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group?

culture

Describing a population with characteristics like age, gender, ethnicity, and income is referred to as ______.

demographics

The term ________ indicates the characteristics of human populations and segments, especially those used to identify consumer markets.

demographics

Legislation for copyright protection was enhanced in 1998 to include ______.

digital works, including music and movies

The Generation Y cohort is also referred to as the ______.

echo-boomers

Which component of an environmental scan pertains to the income, expenditures, and resources affecting the cost of running a business or household?

economy

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called ______.

environmental scanning

The Consumer Product Safety Act created a commission to ______.

establish uniform product safety standards

Select three components of the competitive environment.

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.

gross

Which two of the following are macroeconomic factors?

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

Developing marketing programs that reflect the unique aspects of different races is known as ______.

multicultural marketing

Legislation that allows companies to protect themselves from competitors copying their property includes both ______.

patent law and the copyright law

Select three commonly held values for today's consumers.

personal control equality self-help

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 ______.

precycling

The Sherman Act focuses on which component of the marketing mix?

price

Inflation may harm marketers when ______.

prices rise faster than consumer incomes

Consumer-oriented federal laws cover what two categories?

product safety labeling requirements

Value consciousness is exhibited by consumers when they ______.

seek or bargain for a better price

In the United States, the majority of new jobs are generated by _______ businesses.

small

The majority of the competitive landscape in this country is made up of ______.

small businesses

Demographic characteristics and the culture of a population are the basis for ________ forces.

social

More and more companies rely on consumers to act as brand advocates among their peers. This trend relates to which environmental force?

social

Select three characteristics that describe Generation X?

supportive of racial and ethnic diversity born between 1965 and 1980 often called the "baby bust" generation

Companies that use computer chips in their products that allow the product to be connected to a network are using ______.

the Internet of Things

The act that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called ______.

the Robinson-Patman Act

Some experts predict that if the trends for men's and women's attitudes and roles in the marketplace continue, ______.

the buying patterns of both will eventually be very similar

Select the four issues related to distribution that are monitored by the government.

tying arrangements requirement contracts exclusive dealings exclusive territorial distributorships

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 ______.

value consciousness