MARK 3000 Chapter 5

The poorest 10 percent of the U.S. population earned less than _______ per week in 2013.

$392

According to your text, the wealthiest 1 percent of the population control approximately what percentage of Americans' total net worth?

34.6 percent

Applying age as a basis to identify customers is unethical, as it involves stereotyping.

False

As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines. T/F

False

Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children. T/F

False

Demographics are transmitted by words, literature, and institutions from generation to generation. T/F

False

For a marketer, the central focus of the entire business process should be the economy. T/F

False

In the immediate environment, the competition has no effect on consumers. T/F

False

Inflation refers to the cost of borrowing money. T/F

False

Macroenvironmental factors include the company, competition, and corporate partners. T/F

False

One of the social trends discussed in the text that is shaping consumer values in the United States and around the world is a concern about the vast disparity in income. T/F

False

Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise. T/F

False

The members of Generation X are also referred to as Digital Natives. T/F

False

When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses. T/F

False

Which generation's members are also known as Millennials?

Gen Y

Which of the following is true regarding modern gender roles?

Gender roles have been blurred in the past several years.

If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true?

Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in

New York, Los Angeles, and Chicago

Which technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?

RFID tags

The results of the 2010 census suggest what about the 42 million African American U.S. households?

They are more affluent and suburban.

Select the statement that best describes the key traits of Generation Y.

This generation varies the most in age, ranging from teenagers to adults who have their own families.

After World War II the birthrate in the United States rose sharply, resulting in a group known as the Baby Boomers. T/F

True

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities. T/F

True

Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people. T/F

True

Demographic profiles of customers provide an easily understood "snapshot" of the typical consumer in target markets. T/F

True

Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaging in greenwashing. T/F

True

Jeanne, who lives in Boston, refers to Pepsi as "soda," while Paul, who lives in Chicago, calls it "pop." This is an example of a regional culture difference. T/F

True

Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing. T/F

True

Members of Generation Y are also called Millennials. T/F

True

Parties that work with the focal firm are its corporate partners. T/F

True

Successful firms focus their efforts on satisfying customer needs that match their core competencies. T/F

True

The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition. T/F

True

The next broad wave of mobile applications is likely to center on "m-wallets" which will enable customers' smartphones to be used for wireless payments. T/F

True

The three elements of the consumer's immediate environment are the company, competition, and corporate partners. T/F

True

Which of the following statements accurately describes the current income distribution in the United States?

Wealthy households are outpacing both poor and middle-class households.

By offering environmentally responsible products, green marketers

add value that other products do not have.

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except

age

Marketers in the United States are paying increasing attention to ethnic groups because

approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

Christy, who was born in 1955, advocated for "casual Friday" at her workplace. Christy is a member of which generational cohort?

baby boomer

________ is/are distinguished from the other generational cohorts in that the group's oldest members are now collecting Social Security.

baby boomers

The United States has often been called the "melting pot" society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture

can be used as a relevant identifier for a particular target group.

When studying culture, the challenge for marketers is to determine whether culture

can help identify a particular group that might be interested in the marketer's products.

A firm's macroenvironment includes all of the following except

competition

The centerpiece of the marketing environment analysis framework is

consumers

Every time a consumer surfs the web and clicks on a site, online marketers can place _____ on that user's computer, showing them how that consumer navigates the web and what he or she does or does not buy.

cookies

Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a

corporate partner

The firms that work along with the focal firm to provide goods and services to consumers are viewed as

corporate partners

Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of

country culture

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

creates opportunities to provide value to each group.

If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except

creating an advertising campaign targeting elementary schoolchildren.

Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's

culture

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

culture

Which of these is a macroenvironmental factor?

culture

When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media "fit" with their advertising agenda.

demographics

Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Miss America Pageant broadcast are likely to see ads for clothing and hair care products, due to

differing demographic data for potential and past viewers.

The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called

foreign currency fluctuations.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does

from a consumer's point of view.

The first "latchkey" children belong to which generational cohort?

generation X

Marketers wanting to use social media to reach consumers should understand that _______ were born into a world that was already full of electronic gadgets and digital technologies such as the Internet and social networks.

generation Z

Which of the following groups has never lived without easy access to the Internet and other digital technologies?

generation Z

Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?

green marketing

Strategic efforts to supply consumers with environmentally friendly, sustainable merchandise and services are called

green marketing

ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marketing all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC's plant was one of the worst polluters in town. The new term for this practice is

greenwashing

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

greenwashing

As director of a small art gallery, one of Frederica's major concerns is the preferences of the people who buy her artists' work. Frederica recognizes that the center of her marketing efforts is

her target customers

Population estimates show that by the year 2050, nearly 30 percent of the population in the United States will come from which group?

hispanics

As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him

identify potential opportunities.

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

income in the United States has become more unevenly distributed.

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through

increased choices

According to the text, 14 cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons except

increased income from a larger number of subscribers.

When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as

inflation

________ is the cost to the customers or the fee the bank charges those customers for borrowing money.

interest

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment

is external

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?

language

Typical demographic data include all of the following except

language differences

The political/regulatory environment comprises political parties, governmental organizations, and

legislation and laws

Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will assess his competitors' strengths, weaknesses, and

likely reaction to his promotional activities.

Country culture and regional culture are both part of a firm's

macroenviroment

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that

match its core competencies.

Successful firms focus their efforts on satisfying customer needs that

match their core competencies.

An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm

meet inventory needs

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time.

needs, wants, and ability to purchase

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

political/regulatory

When you register your telephone number with the National Do Not Call Registry, you are responding to a need for

privacy

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

purchase behaviors

In New England foot-long sandwiches are called "grinders," while in many other parts of the country they are called "subs." This is an example of the impact of

regional culture

Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

regional culture

Which of the following specifically prohibits monopolies?

sherman antitrust act

Marketers know that, compared to high school graduates who are working full time, college students

spend their disposable income differently.

Which retailer, in 2013, suffered a massive security breach that allowed hackers to steal credit and debit card information for 40 million customers?

target

The center of all marketing efforts is

the consumer

Though Asian Americans comprise only about 6 percent of the U.S. population, they represent

the fastest-growing minority population.

In the immediate marketing environment, the first factor that affects the consumer is

the firm itself

One of the goals of value-based marketing is

to offer greater value than competitors offer

For some products, marketers can combine education level with other data like occupation and income to obtain

useful predictions of purchase behavior.

Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers

value contributing to a greener environment.

Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is

wireless payments from mobile devices.

Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of

yoga

Which statement about the changing ethnicity in the United States is true?

African American U.S. households are more affluent than previous studies suggested

What is most likely to happen when inflation increases?

Consumers buy lower-priced foods.