Chapter 5

A firm's macroenvironment includes all of the following EXCEPT A. competition. B. culture. C. demographics. D. economics. E. political/legal issues.

A

Christy, who was born in 1955, advocated for casual Friday at her workplace. Christy is a member of which generational cohort? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials

A

From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

A

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 A. regional culture. B. country culture. C. generational factors. D. social trends. E. regulatory factors.

A

Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to? A. green marketing B. time-poor society C. cultural diversity D. technological advances E. regulatory issues

A

Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers A. value contributing to a greener environment. B. are economically irrational. C. are responding to global corporate pressure for social responsibility. D. would prefer an SUV. E. are greenwashing.

A

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.

A

Select the statement that best describes the key traits of Generation Y. A. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. B. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather. C. This generation focuses on health care and wellness services. D. This generation was the first generation of latchkey children. E. This generation—including its oldest members—has had access to the Internet for their entire lives.

A

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 A. wireless payments from mobile devices. B. location-based social media applications. C. mobile devices completely replacing desktop and laptop computers. D. devices that block smartphone usage in retail stores. E. RFID tags.

A

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is A. external. B. easier to understand. C. easier to control. D. the same as the immediate environment. E. internal.

A

The many demands on consumers today have made it more difficult for marketers to A. grab consumers' attention. B. decide what to offer. C. deliver products just-in-time. D. differentiate between the needs of seniors and Baby Boomers. E. offer green marketing solutions.

A

The political/regulatory environment comprises political parties, governmental organizations, and A. legislation and laws. B. citizens. C. interest groups. D. for-profit and nonprofit businesses. E. international influences.

A

Though Asian Americans comprise only 6 percent of the U.S. population, they represent A. the fastest growing minority population. B. the easiest minority group to access. C. a large proportion of the minorities in the Midwest. D. a uniform group of consumers with a common language and cultural background. E. all of these

A

When you register your telephone number with the Do Not Call Registry, you are responding to a need for A. privacy. B. enhanced information flow. C. lower phone bills. D. marketing contact. E. tactical communication skills.

A

Which of these is a macroenvironmental factor? A. culture B. corporate partners C. competition D. company E. competencies

A

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 likely assess his competitors' strengths, weaknesses, and A. likely reaction to Yuri's promotional activities. B. demographics. C. just-in-time processes. D. satisfaction quotient as perceived by customers. E. ethical values.

A

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through A. increased choices. B. higher prices. C. protection from false advertising. D. fair debt collection practices. E. fewer competitors.

A-- READ CAREFULLY

When studying culture, the challenge for marketers is to determine whether culture A. can help to identify a particular group that might be interested in the marketer's products. B. is regional or subregional. C. reinforces stereotypes. D. is related to educational achievement. E. offers opportunities for competitors.

A-- The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people.

When an office supply store offers self-checkout, extended hours at its stores, and online shopping with next-day delivery, it is trying to address what social trend? A. time-poor society B. greener consumption C. health and wellness D. privacy concerns E. tech savvy

A-- The time-poor society refers to consumers looking to find short cuts to maximize their time.

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many American consumers' concept of A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.

D

Tweens are part of which generational cohort? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

D

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT A. purchasing power. B. interest rates. C. inflation. D. age. E. currency exchange rates.

D

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? A. dress B. symbols C. demographics D. language E. social trends

D-- Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.

The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture A. is socially important. B. is passed from generation to generation orally or by written guides. C. competes with or complements U.S. traditional culture. D. can be used as a relevant identifier for a particular target group. E. is an important immediate marketing environment variable.

D-- Some groups in the U.S. preserve their cultural identities while others seek to blend in. The more a group seeks to maintain its identity, the more relevant culture will be to identify a potential customer group.

Which statement about the changing ethnicity in the United States is TRUE? A. Minorities now represent almost half of the population in the United States. B. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level. C. Hispanics differ vastly from other groups in America in terms of consumer behavior. D. African American U.S. households are more affluent than previous studies suggested. E. Asian Americans are the slowest growing minority population.

D-- The 2010 U.S. census counted 42 million African American U.S. households, who are more affluent and suburban than previous studies suggested.

Marketers in the United States are paying increasing attention to ethnic groups because A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.

B

Marketers know that, compared to high school graduates who are working full time, college students A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.

B

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 A. popular culture. B. regional culture. C. demographics. D. generational cohorts. E. country culture.

B

Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was likely shocked and concerned about A. his financial situation. B. his lack of privacy. C. the marketer's lack of cultural awareness. D. his telephone bill. E. his technological comfort.

B

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 A. fake greening. B. greenwashing. C. greenbaiting. D. green puffery. E. red marketing.

B

Strategic efforts to supply consumers with environmentally friendly merchandise are called A. reduce, reuse, recycle. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B

The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was one of the results mentioned in the text? A. Honest telemarketers found it easier to reach customers. B. Dishonest telemarketers have still been able to get through. C. Consumers received more telemarketing calls than ever. D. Companies have increased their emphasis on telemarketing approaches. E. The Do Not Call Registry was disbanded due to its ineffectiveness.

B

The center of all marketing efforts is A. profits. B. the consumer. C. corporate social responsibility. D. top management. E. the firm.

B

The firms that work along with the focal firm to provide goods and services to consumers are viewed as A. cultural cohorts. B. corporate partners. C. cartels. D. cooperatives. E. customers.

B

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their A. social concerns. B. culture. C. demographics. D. generational cohorts. E. religion.

B

The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. make it more difficult for companies to differentiate their products.

B

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that A. everyone is equal. B. income in the United States has become more unevenly distributed. C. everyone has been equally affected by the recession. D. there is increasing purchasing power among lower income groups. E. middle-income consumers are quickly becoming upper-income consumers.

B

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 A. cultural cohort. B. corporate partner. C. cartel. D. cooperative. E. customer.

B

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. A. ethnic background B. needs, wants, and ability to purchase C. culture D. just-in-time processes E. demographics

B

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about A. privacy of communications. B. the time-poor society. C. green marketing. D. increased costs of air travel. E. federal restrictions on advertising.

B-- The time-poor society leaves consumers with less time to consume traditional media like TV, radio, newspapers, and magazines, so marketers are increasingly trying nontraditional alternatives that consumers may see while going about their busy lives.

The members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E

The poorest 10 percent of the U.S. population earned less than _______ per week in 2010. A. $2500 B. $1801 C. $1265 D. $920 E. $374

E

Typical demographic data include all of the following EXCEPT A. gender. B. income. C. race. D. education. E. language differences.

E

Which of the following groups has never lived without easy access to the Internet and other digital technologies? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E

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 to A. avoid cognitive dissonance. B. implement just-in-time marketing promotions. C. identify potential opportunities. D. avoid the need to understand regional culture. E. achieve cost savings.

C

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups A. will create inflationary expectations. B. will disappear as ethnicity becomes a stronger cultural determinant. C. creates opportunities to provide value to each group. D. will vanish once the recession ends. E. is attributable to technological expertise of immigrant groups.

C

Julie has been doing the family's weekly shopping since she was twelve, although she doesn't particularly like doing it. She tends to question what salespeople tell her and demands convenience. Julie demonstrates characteristics of the __________ generational cohort. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C

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 A. regional culture. B. generational cohort characteristics. C. country culture. D. a red/blue marketing campaign. E. the Walmart Effect.

C

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in A. rural areas. B. smaller states. C. New York, Los Angeles, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.

C

Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are more cynical than their parents, and are less likely to believe advertising claims than the generation(s) before them. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C

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 A. flu shots. B. high-carbohydrate diets. C. yoga. D. cooking shows on TV. E. juicing.

C

Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to A. cultural expectations. B. male domination in corporate boardrooms. C. differing demographic data for potential and past viewers. D. marketers' general perceptions. E. multiyear advertising contracts that cannot be broken.

C

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 whether the media fit with their advertising agenda. A. country culture B. regional culture C. demographics D. micromarketing measures E. scenario planning

C

Which generation is also known as Millennials? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. the Digital Natives

C

Which of the following is TRUE regarding modern gender roles? A. Gender roles are a constant cultural norm. B. Modern standards require firms to produce gender neutral advertising for every product. C. Gender roles have been blurred in the past several years. D. Gender boundaries should never be crossed in marketing efforts. E. Gender roles are unimportant to marketers.

C

For some products, marketers can combine education level with other data like occupation and income to obtain A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.

E-- Certain habits—such as preferences for entertainment—can be predicted with reasonable accuracy from education, occupation, and income

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 to A. increase value to the consumer through media effectiveness promotion. B. tailor their marketing messages. C. meet inventory needs. D. communicate with consumers on social media sites. E. replace services with products.

C-- Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.

One of the goals of value-based marketing is A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs.

C-- Value-based marketing has to do with offering the greatest possible value to consumers, and greater than competitors offer

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

False

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

False

Tweens rarely use any type of technology.

False

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

False (NOT SURE NEED TO ASK ON FRIDAY)

The marketing firm must consider the entire business process from an economic point of view.

False **from consumer's point of view

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

False-- Burger King no longer uses SpongeBob because new advertising guidelines do not allow linking unhealthy foods with cartoon characters

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

False-- Gen Z are digital natives

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

False-- the consumer should be at the center

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

False-- this describes culture

Macroenvironmental factors include the company, competition, and corporate partners.

False-- this describes immediate environment

Inflation refers to the cost of borrowing money.

False-- this describes interest

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

False-- this is the definition of green marketing

One of the social trends discussed in the text that is shaping consumer values in the U.S. and around the world is a concern about the vast disparity in income.

False-- thrift, health and wellness concerns, greener consumers, privacy concerns, and time-poor societies.

By 2015, people will access the web more often through smartphones than through laptops and desktops combined.

True

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

True

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

True

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

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.

True

Members of Generation Y share a strong emphasis on balancing work and life.

True

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

True

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

True

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

True

The term "time-poor society" refers to the lack of leisure time people have today.

True

The three elements of the consumer's immediate environment are the company, competition, and corporate partners.

True

When Marcia decided she couldn't afford to take a vacation this year, she went to the mall and bought herself a bottle of her favorite expensive perfume instead. This behavior is referred to as the lipstick effect.

True-- lipstick effect: small luxuries

ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking 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 A. deceptive advertising. B. greenwashing. C. environmental exploitation. D. virtual greening. E. enviromarketing.

B

According to the text, fourteen cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons EXCEPT A. calls for greater social responsibility. B. increased income from a larger number of subscribers. C. increasing access to faster broadband capabilities. D. the economic status of consumers. E. pressures from the Federal Communications Commission.

B

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 A. profits. B. her target customers. C. artistic social responsibility. D. competing art galleries. E. the arts movement.

B

Because Americans are working longer hours without increases in real, disposable income, and are using an army of communication devices to keep up with the demands in their personal and work lives, retailers are A. increasing their budgets for traditional advertising outlets like television and radio. B. making their products available whenever and wherever consumers want them. C. outsourcing marketing communications to global production facilities. D. focusing only on those demographic cohorts that have time to relax. E. de-emphasizing U.S. sales and expanding globally.

B

By offering environmentally responsible products, green marketers A. undercut prices of non-environmentally responsible marketers. B. keep costs much lower than those of competitors. C. make consumers feel guilty for buying other products. D. add value that other products do not have. E. all of these

D

Generation X is known for which of the following characteristics? A. the most globally connected generation B. the biggest cohort since the original post World War II boom C. consider marriage secondary, and not obviously necessary, to being good parents themselves D. the first generation of latchkey children E. have an obsession with maintaining their youth

D

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. A. regional cultures B. inflationary expectations C. political affiliations D. purchase behavior E. cultural values

D

Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except A. creating ready-to-eat meals that would allow Gretchen to have freshly prepared meals. B. developing meals with precut and premeasured ingredients that would allow Gretchen to cook them at home. C. staying open late. D. advertising their products heavily on daytime television. E. using creative checkout procedures so Gretchen can finish her shopping quickly.

D

In the early 1990s, 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. For Mexican consumers A. incomes rose dramatically. B. interest rates fell to compensate for increased inflation. C. Mexican products became less expensive while U.S.-made products became comparatively more expensive. D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. E. U.S.-made products became less attractive to purchase.

D

In the immediate marketing environment, the first factor that affects the consumer is A. demographics. B. cultural values. C. social trends. D. the firm itself. E. technological advances.

D

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 A. to value each person in the organization. B. for each generational cohort. C. to avoid cultural clashes. D. from a consumer's point of view. E. to sensitize organization members to ethical values.

D

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 A. offering an expanded menu of healthy options. B. speeding up drive-through service. C. using recycled paper in its food packaging. D. expanding its low-cost menu options. E. creating an advertising campaign to target elementary school children.

E

Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's A. social concerns. B. political parties. C. demographics. D. generational cohorts. E. culture.

E

Successful firms focus their efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match their core competencies.

E

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 use 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 A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match its core competencies.

E

The centerpiece of the marketing environment analysis framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.

E

The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E