Marketing Chapter 3

The group of factors that affect​ consumers' purchasing power and spending patterns is called the​ _________________.

economic environment

The purpose of business legislation is primarily based on​ ________.

protecting companies from each other

The role of a​ company's marketing intermediaries is to do which of the​ following?

Help the company​ find, promote,​ sell, and distribute products

​__________________ is a group numbering 55 million or more consumers and sometimes is an overlooked​ "in-between" consumer group because it is both smaller and less materialistic than other groups and prizes​ experience, not acquisition.

Generation X

Wonders such as​ smartphones, driverless​ cars, and antibiotics can be attributed to which marketing​ environment?

Technological

To be​ successful, why should companies try to adopt a proactive stance on​ marketing?

A proactive stance allows a company to take advantage of opportunities as they arise.

Proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive​ company? A. A small family winery offering a broader selection of red wines in response to a growing preference for red wines B. A local restaurant refusing to counter false allegations of salmonella C. A utility company hiring lobbyists to influence legislation regarding climate change D. A dairy creating new flavors of organic yogurt in response to a trend toward healthy eating E. A jewelry company taking advantage of the new trend of charm bracelets

B. A local restaurant refusing to counter false allegations of salmonella

To exercise social​ responsibility, many companies are linking themselves to what type of​ marketing?

Cause-related

A wedding services company changes its marketing strategy to reflect the fact that more LGBTQ​ (lesbian/gay/bisexual/transgender/queer) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company​ analyze?

Cultural

Of the​ following, which best reflects how the American population has changed over​ time? A. It has become more skeptical about marketing schemes. B. It has become​ wealthier, more​ cultured, and more frivolous in its spending habits. C. It has become more likely to develop brand loyalty. D. It has become more​ diverse, better​ educated, and more mobile. E. It has become closer knit and more​ family-oriented.

D. It has become more​ diverse, better​ educated, and more mobile.

Which of the following identifies a change in the technological environment that could affect the success of a​ business? A. A company develops a customer support program that customers rate twice as responsive as the previous program. B. A company develops a new battery that costs twice as much as its predecessor. C. A company packages its product to be twice the size of its predecessor. D. A company develops a new warranty that lasts as long as its predecessor. E. A company develops a new battery that lasts twice as long as its predecessor.

E. A company develops a new battery that lasts twice as long as its predecessor.

Which of the following BEST describes a duty that would fall under the jurisdiction of the​ FDA? A. Ensuring that pollution standards are met by a company B. Protecting the legal status of a company C. Evaluating whether an advertisement to be aired in public is fitting D. Investigating customer complaints about a business E. Checking the quality of food that is served in school lunches

E. Checking the quality of food that is served in school lunches

Dylan Parker owns 27 acres on a farmstead in Iowa.​ Recently, as he was plowing a​ field, he came across a rich silver vein in the ground. Realizing his​ bounty, he decided to open a new business selling silver. Not knowing much about the marketing​ environment, he asks you what he should do. Which of the following is the BEST​ advice? A. Dylan should focus on the consumer market and sell silver directly for personal consumption. B. Dylan should reach out to reseller markets to sell his silver quickly. C. Dylan should focus on farming and ignore the silver vein. D. Dylan should set his attention to the government markets. E. Dylan should focus on the business market and sell the raw silver for further processing.

E. Dylan should focus on the business market and sell the raw silver for further processing.

​Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the​ claims, the restaurant called in a company to test not only its veggie​ burgers, but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the​ restaurant's Facebook page. What BEST describes​ Beverly's Burgers' response to the​ allegations?

Proactive

The​ Children's Online Privacy Protection Act in the United States enforces laws for what​ reason?

Prohibits online service operators from collecting personal information from children

How does the microenvironment of a company differ from its​ macroenvironment?

The microenvironment deals with the​ company, suppliers, marketing​ intermediaries, customer​ markets, competitors, and publics.

Companies that are successful in appealing to different generational needs and wants are successful in reacting to which macroenvironmental force? a. Demographical b. Cultural c. Competition d. Technological e. Natural

a. Demographical

The environmental force that includes laws and regulations set forth to make trade and marketing practices fair is the __________ force. a. political b. demographic c. natural d. economic e. customer

a. political

​Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to alleviate its financial​ situation?

Work out a plan with its financial intermediaries

The major cultural values of a society are expressed by​ people's views of​ ____________________.

​themselves, others,​ organizations, society,​ nature, and the universe

The​ demographic, economic,​ natural, technological,​ political, and cultural forces that affect a​ company's ability to serve its customers make up which of the​ following? A. Cultural environment B. Macroenvironment C. Technological environment D. Marketing environment E. Microenvironment

B. Macroenvironment

Chicago's Best Pizzeria has been operating on the north side of Chicago for more than 30 years. Its target market includes young urban professionals who want​ new-style organic pizzas with exotic ingredients.​ However, in recent​ years, the population in the​ pizzeria's neighborhood has been​ shifting, and now fewer young urban professionals live there. The population has grown older and wants traditional​ pizza, not pizza with exotic ingredients. Which of the following identifies the​ pizzeria's BEST response to this​ situation? A. Run an ad campaign on the health benefits of pizza. B. Target a new market with a different product. C. Cut the prices on its pizza. D. Sell a different food​ product, such as hamburgers or sushi. E. Be proactive and convince customers that​ "exotic is​ better."

B. Target a new market with a different product.

From a marketing​ standpoint, which of the following BEST describes Baby​ Boomers? A. They are slowing down as they age. B. They constitute a lucrative market for financial​ services, new housing and home​ remodeling, new​ cars, travel and​ entertainment, eating​ out, and health and fitness products. C. They blend the online and offline worlds seamlessly as they socialize and shop. D. They are more likely to be receptive to irreverent ad pitches that make fun of convention and tradition. E. They tend to research products before they consider a purchase.

B. They constitute a lucrative market for financial​ services, new housing and home​ remodeling, new​ cars, travel and​ entertainment, eating​ out, and health and fitness products.

​Roper's Radical Racers is an upscale company that sells cars primarily to racecar drivers and movie producers. In the​ past, Roper's Radical Racers marketed itself to the​ fun-loving driverlong dash—the driver who wanted to​ "race with​ life." However, in the current​ economy, Roper's has changed its slogan to​ "superior speed, superior​ savings." Roper's Radical Racers is engaging in which of the​ following? A. Diversity targeting B. Value marketing C. Price slashing D. Market consideration E. Income distribution

B. Value marketing

Which of the following is NOT a problem involving the natural environment that marketers need to​ consider? A. Government regulations B. Raw material shortages C. Pollution D. Greenhouse gases E. The aging U.S. population

E. The aging U.S. population

​Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six​ years, sales have continuously declined and profits have almost completely disappeared. The owner of​ Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to​ Tina's Tunes?

Tina's Tunes is likely to fail because it is ignoring the technological environment.

The Fair Packaging and Labeling Act in the United States enforces laws for what​ reason?

To protect consumers from fraudulent packaging and labeling

Kodak and Blockbuster each failed to react to the ___________ environmental force, causing them to lose considerable market share and go out of business. a. company b. technological c. political d. customer e. demographic

b. technological

The microenvironment of a company's market environment includes all of the following except ________. a. competitors b. technological forces c. the company d. customers e. suppliers

b. technological forces

Companies such as Walmart and Target, which focus on lower prices and greater value, are most likely reacting to which of the following environmental forces? a. Demographic b. Supplier c. Political d. Economic e. Natural

d. Economic