MKTG 3310 // CH 3 Practice Test
3) You are directed to study the factors that are larger societal forces that affect your company-demographic, economic, natural, technological, political, and cultural. What are you studying? A) the macroenvironment B) the microenvironment C) the marketing environment D) the marketing mix E) the global environment
Answer: A Diff: 1 Page Ref: 67 Skill: Concept AACSB: Reflective Thinking
54) Which of the following American government agencies is charged with setting and enforcing pollution standards? A) the Environmental Protection Agency (EPA) B) the Federal Trade Commission (FTC) C) the Food and Drug Administration (FDA) D) the Consumer Product Safety Commission E) the Federal Energy Regulatory Commission
Answer: A Diff: 1 Page Ref: 80 Skill: Concept AACSB: Ethical Reasoning
15) Members of which type of market buy goods and services for further processing or for use in the production process? A) business B) reseller C) wholesale D) consumer E) retail
Answer: A Diff: 2 Page Ref: 70 Skill: Concept
23) Which demographic group was once labeled "the MTV generation" but has become the most educated generation to date? A) Generation X B) Millennials C) Generation Y D) baby boomers E) teenagers
Answer: A Diff: 2 Page Ref: 72 Skill: Concept AACSB: Multicultural and Diversity
64) A company or association's ________ is designed to help guide responses to complex social responsibility issues. A) code of ethics B) cause-related marketing C) discretion in enforcing regulations D) privacy policy E) core value system
Answer: A Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical Reasoning
68) A society's core beliefs and values have a high degree of ________. A) persistence B) simplicity C) similarity D) ethnocentrism E) conformity
Answer: A Diff: 2 Page Ref: 88 Skill: Concept
10) A radio station that carries news, features, and editorial opinions about your area is best classified as which type of public? A) financial B) media C) citizen-action D) local E) regional
Answer: B Diff: 1 Page Ref: 69 Skill: Concept AACSB: Reflective Thinking
12) Workers, managers, and members of the board of directors are all part of a company's ________. A) general public B) internal public C) local public D) intermediary public E) market public
Answer: B Diff: 1 Page Ref: 70 Skill: Concept
18) The three largest age groups in America are the baby boomers, Generation Xers, and ________. A) seniors B) Millennials C) teens D) tweens E) toddlers
Answer: B Diff: 1 Page Ref: 71 Skill: Concept AACSB: Multicultural and Diversity
60) Legislation affecting business around the world will continue to ________. A) become simplified B) increase C) stabilize D) decrease E) relax consumer protections
Answer: B Diff: 1 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning
67) A society's basic values, perceptions, preferences, and behaviors are all part of its ________ environment. A) social B) cultural C) political D) cultural-economic E) natural
Answer: B Diff: 1 Page Ref: 88 Skill: Concept
69) A society's ________ are expressed in how people view themselves, organizations, society, nature, and the universe. A) marketing responses B) cultural values C) demographics D) public policies E) economies
Answer: B Diff: 1 Page Ref: 89 Skill: Concept AACSB: Communication
2) You are directed to study the factors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying? A) the macroenvironment B) the microenvironment C) the marketing environment D) the green movement E) the global environment
Answer: B Diff: 2 Page Ref: 67 Skill: Concept
16) Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for buying and selling goods at a profit to small retailers. What is her market? A) business B) reseller C) wholesale D) consumer E) retail
Answer: B Diff: 2 Page Ref: 70 Skill: Concept
21) Which of the following is the most commercially influential American demographic age group today? A) Generation X B) baby boomers C) Millennials D) seniors E) tweens
Answer: B Diff: 2 Page Ref: 72 Skill: Concept AACSB: Multicultural and Diversity
24) Which of the following descriptions most accurately characterizes Gen Xers? A) There are more Gen Xers than Millennials. B) They were the first generation of latchkey kids. C) They tend to put career before family. D) They are more interested in acquiring goods than having experiences. E) They rarely research a product before purchasing it.
Answer: B Diff: 2 Page Ref: 72 Skill: Concept AACSB: Multicultural and Diversity
28) Which demographic group is characterized by a total fluency and comfort with computer, digital, and Internet technology? A) Generation X B) Millennials C) the elderly D) Generation Z E) baby boomers
Answer: B Diff: 2 Page Ref: 73 Skill: Concept AACSB: Multicultural and Diversity
36) An increasing number of American workers work out of their homes with technological conveniences such as PCs, high-speed Internet access, and fax machines. These workers are referred to as the ________ market. A) LOHAS B) SOHO C) Gen X D) Millennial E) micropolitan
Answer: B Diff: 2 Page Ref: 75 Skill: Concept
43) Members of which of the following groups are more likely than the general population to have professional jobs, own a vacation home, own a notebook computer, and own individual stocks? A) Gen Xers B) gays and lesbians C) Millennials D) echo boomers E) environmentalists
Answer: B Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity
75) Marketers can take a(n) ________ by taking aggressive action to affect the publics and forces in their marketing environments. A) environmental perspective B) proactive stance C) natural perspective D) natural management perspective E) relationship building perspective
Answer: B Diff: 2 Page Ref: 92 Skill: Concept
49) Which of the following statements about income distribution in the United States is NOT true? A) In recent decades, the rich have gotten richer. B) In recent decades, the middle class has grown. C) In recent decades, the poor have remained poor. D) The top 10 percent of American earners account for almost half of all American income. E) The top one percent of American earners receive a higher percentage of the nation's total income than do the bottom 50 percent of American earners.
Answer: B Diff: 3 Page Ref: 79 Skill: Concept AACSB: Multicultural and Diversity
58) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is the ________ environment. A) socio-legal B) cultural C) political D) legal-technological E) economic
Answer: C Diff: 1 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning
5) All of the groups within a company are called the ________. A) culture B) diversity C) internal environment D) climate E) range
Answer: C Diff: 2 Page Ref: 67 Skill: Concept
32) Americans are very mobile. Over the past two decades, the U.S. population has shifted most heavily toward the ________ states. A) Midwestern B) Northwestern C) Sunbelt D) Southeastern E) Northeastern
Answer: C Diff: 2 Page Ref: 75 Skill: Concept
35) As more and more Americans are moving to "micropolitan areas," marketers can most reasonably assume that ________. A) geographic segmentation may be less critical B) rural populations will offer an expanding market C) micropolitan areas may offer the same advantages as metropolitan areas D) congested areas may become more ensnarled E) crime rates in metropolitan areas will increase
Answer: C Diff: 2 Page Ref: 75 Skill: Concept AACSB: Analytic Skills
41) Of the following, which is the fastest-growing group in the United States? A) African Americans B) Caucasians C) Hispanics D) Native Americans E) Arab Americans
Answer: C Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity
51) Which of the following combinations of expenses use up most household income? A) food, housing, retirement planning B) housing, insurance, taxes C) food, housing, transportation D) housing, taxes, transportation E) food, travel, savings
Answer: C Diff: 2 Page Ref: 79 Skill: Concept
55) What movement has encouraged marketers to pursue environmentally sustainable strategies? A) the EPA B) the black market C) the green movement D) the SOHO movement E) green intervention
Answer: C Diff: 2 Page Ref: 80 Skill: Concept AACSB: Ethical Reasoning
57) Which of the following is a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission? A) The time lag between new product ideas and their introduction to the market has decreased. B) Spending on research and development has decreased. C) Research costs for companies have grown. D) More companies have failed to meet safety standards. E) Companies are more focused on making practical, affordable versions of products.
Answer: C Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical Reasoning
65) The primary concern for consumers with the boom in Internet marketing is ________. A) pornography B) false advertising C) privacy D) sustainability E) social responsibility
Answer: C Diff: 2 Page Ref: 85 Skill: Concept AACSB: Use of IT
66) Cause-related marketing is ________. A) a response to customer needs B) a primary form of environmental awareness C) a primary form of corporate giving D) a response to corporate political problems E) an attempt to influence customers' core beliefs
Answer: C Diff: 2 Page Ref: 87 Skill: Concept AACSB: Ethical Reasoning
71) Trends in people's views of organizations indicate that which of the following has increased in the past twenty years? A) employees' loyalty to their employers B) confidence in American political organizations C) distrust in big American businesses D) distrust in small, local businesses E) employees' view of work as a source of satisfaction
Answer: C Diff: 2 Page Ref: 90 Skill: Concept
73) Which of the following is a potential downside to using patriotic themes in marketing programs? A) Levels of patriotism fluctuate rapidly. B) Patriotism has been on the decline in the past decade. C) Such promotions can be viewed as attempts to gain from others' triumph or tragedy. D) Americans are less confident in political organizations. E) Few marketers currently use this technique.
Answer: C Diff: 2 Page Ref: 90 Skill: Concept AACSB: Communication
4) Which of the following is NOT a type of factor in a company's macroenvironment? A) demographic B) economic C) technological D) competitor E) political
Answer: D Diff: 2 Page Ref: 67 Skill: Concept
11) Consumer organizations and environmental groups are examples of ________ publics. A) general B) local C) government D) citizen-action E) media
Answer: D Diff: 2 Page Ref: 69 Skill: Concept
8) A company's marketing environment includes various ________ that are made up of groups that have an actual or potential interest in, or impact on, an organization's ability to achieve its objectives. A) teams B) audiences C) markets D) publics E) intermediaries
Answer: D Diff: 2 Page Ref: 69 Skill: Concept AACSB: Communication
13) Percy Original caters to a market of individuals and households that buy goods and services for personal consumption. What type of market does Percy Original cater to? A) business B) reseller C) government D) consumer E) marketing intermediary
Answer: D Diff: 2 Page Ref: 70 Skill: Concept AACSB: Reflective Thinking
22) Which of the following descriptions most accurately characterizes the baby boomers? A) They are aging and slowing down. B) They are a shrinking market for new housing and home remodeling. C) They are past their peak earning and spending years. D) They hold 75% of the country's financial assets. E) They were largely unaffected by the recent recession.
Answer: D Diff: 2 Page Ref: 72 Skill: Concept AACSB: Multicultural and Diversity
33) Which of the following geographical areas has NOT experienced a recent population increase? A) micropolitan areas B) suburbs C) the West D) the Northeast E) the South
Answer: D Diff: 2 Page Ref: 74 Skill: Concept
30) The number of ________ households is now growing faster than the number of ________ households. A) traditional; nontraditional B) large; traditional C) nontraditional; smaller D) nontraditional; traditional E) male-dominant; female-dominant
Answer: D Diff: 2 Page Ref: 74 Skill: Concept AACSB: Multicultural and Diversity
34) In the 1950's the American population began shifting from large cities to ________. A) farming communities B) rural areas C) foreign countries D) suburbs E) coastal towns
Answer: D Diff: 2 Page Ref: 75 Skill: Concept
50) In a tiered market, companies target which of the following? A) affluent consumers only B) consumers of modest means only C) the middle class only D) consumers at all levels of income distribution E) professionals only
Answer: D Diff: 2 Page Ref: 79 Skill: Concept
56) Which country leads the world in research and development spending? A) England B) Germany C) Sweden D) Japan E) the United States
Answer: E Diff: 2 Page Ref: 82 Skill: Concept AACSB: Use of IT
31) In 1950, women made up less than 40 percent of the workforce; now they make up ________. A) 35 percent B) 40 percent C) 43 percent D) 46 percent E) 59 percent
Answer: E Diff: 3 Page Ref: 74 Skill: Concept AACSB: Multicultural and Diversity
46) A country with a(n) ________ economy consumes most of is own agricultural and industrial outputs and offers few market opportunities. A) industrial B) service C) technological D) subsistence E) developed
Answer: D Diff: 2 Page Ref: 78 Skill: Concept
26) Which demographic group includes large tween and teen markets? A) Generation X B) Millennials C) baby busters D) baby boomers E) the elderly
Answer: B Diff: 1 Page Ref: 73 Skill: Concept AACSB: Multicultural and Diversity
14) Which type of market buys goods and services to produce public services or to transfer them to others who need them? A) government B) reseller C) wholesale D) consumer E) retail
Answer: A Diff: 1 Page Ref: 70 Skill: Concept
17) Your marketing department is currently researching the size, density, location, age, and occupations of your target market. Which environment is being researched? A) demographic B) psychographic C) economic D) geographic E) cultural
Answer: A Diff: 2 Page Ref: 71 Skill: Concept
19) The most important demographic trend in the United States is the ________. A) changing age structure of the population B) mobility of the population C) slowing birth rate D) increasing growth in professional jobs E) changing structure of the family
Answer: A Diff: 2 Page Ref: 71 Skill: Concept AACSB: Multicultural and Diversity
27) Which of the following descriptions most accurately characterizes Millennials? A) They are children of baby boomers. B) They are not as technologically savvy as Gen Xers are. C) They have reached their peak earning and spending years. D) They were once labeled "the MTV generation." E) They have graduated from college and are taking over positions of power in the business world.
Answer: A Diff: 2 Page Ref: 73 Skill: Concept AACSB: Multicultural and Diversity
44) Of the following diversity segments in the American population, which is currently the largest? A) adults with disabilities B) Hispanics C) African Americans D) telecommuters E) Asian Americans
Answer: A Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity
47) A country with a(n) ________ economy has rich markets for many different kinds of goods. A) industrial B) service C) rural D) subsistence E) multicultural
Answer: A Diff: 2 Page Ref: 78 Skill: Concept
62) Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________. A) protect the interests of society B) regulate prices C) increase world trade D) regulate monopolies E) promote environmental sustainability
Answer: A Diff: 2 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning
45) The ________ environment consists of factors that affect consumer purchasing power and spending patterns. A) cultural B) political C) technological D) economic E) natural
Answer: D Diff: 1 Page Ref: 78 Skill: Concept
48) Value marketing is the strategy of offering consumers ________. A) high quality at a high price B) luxury quality at a high price C) lesser quality at a low price D) reasonable quality at a fair price E) little quality at a low price
Answer: D Diff: 2 Page Ref: 79 Skill: Concept
1) Which of the following terms is used to describe the factors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers? A) the marketing environment B) strategic planning C) target markets D) the marketing mix E) none of the above
Answer: A Diff: 1 Page Ref: 66 Skill: Concept
7) Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods and services are referred to as ________. A) financial intermediaries B) physical distribution firms C) marketing service agencies D) resellers E) wholesalers
Answer: A Diff: 1 Page Ref: 68 Skill: Concept
29) Which of the following demographic groups has NOT seen a percentage increase in the past 50 years? A) women staying at home with their children B) men staying at home with their children C) nontraditional households D) nonfamily households E) women working outside of the home
Answer: A Diff: 3 Page Ref: 74 Skill: Concept AACSB: Multicultural and Diversity
6) Which type of organization helps companies to stock and move goods from their points of origin to their destination? A) financial intermediary B) physical distribution firm C) marketing service firm D) reseller E) supplier
Answer: B Diff: 1 Page Ref: 68 Skill: Concept
53) The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the ________. A) raw material market B) natural environment C) endangered environment D) green movement E) factors of production
Answer: B Diff: 1 Page Ref: 80 Skill: Concept
25) Which demographic group is also referred to as the echo boomers? A) Generation X B) Millennials C) Generation Z D) Baby boomers E) Baby busters
Answer: B Diff: 2 Page Ref: 73 Skill: Concept AACSB: Multicultural and Diversity
38) Over the past 50 years, which of the following groups of workers has become smaller? A) managers B) manufacturers C) professionals D) telecommuters E) married women
Answer: B Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity
42) Because of an expected increase in ethnic populations, marketers are likely to place a greater emphasis on ________. A) geographic segmentation B) targeted advertising messages C) mass marketing D) mainstream advertising E) cause-related marketing
Answer: B Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity
63) The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________. A) ethics; promotion responsibility B) ethics; social responsibility C) finances; employee discrimination D) management ethics; cultural bias E) promotion; pricing
Answer: B Diff: 2 Page Ref: 85 Skill: Concept AACSB: Ethical Reasoning
70) Watching the cultural trends of how people view others, observers have noted an increased interest in ________. A) socializing with co-workers B) going out less and staying home more C) patriotism D) do-it-yourself projects E) adventurous experiences
Answer: B Diff: 2 Page Ref: 89 Skill: Concept
72) Watching the cultural trends of how people view society, observers have noted that since September 11, 2001, marketers responded to the increased ________ of Americans with special products and promotions. A) loyalty B) patriotism C) distrust D) foreign intolerance E) belligerence
Answer: B Diff: 2 Page Ref: 90 Skill: Concept
40) Which of the following is an accurate statement about the diversity of the American population? A) African Americans represent the largest non-white segment of the population. B) More than 12 percent of people living in the United States were born in another country. C) The Asian American percentage of the population is expected to remain steady in the next 50 years. D) In terms of ethnic diversity, the United States is about average in comparison to other countries with populations of a comparable size. E) American ethnic populations are expected to slowly increase in the next few decades.
Answer: B Diff: 3 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity
20) The youngest of the baby boomers are now in their ________. A) late 20s B) mid-20s C) mid-40s D) early 50s E) early 60s
Answer: C Diff: 2 Page Ref: 71 Skill: Concept AACSB: Multicultural and Diversity
37) Which of the following most accurately reflects the popularity of telecommuting? A) Almost all American businesses are expected to offer telecommuting options within the next decade. B) The majority of American businesses currently offer telecommuting programs for their employees. C) About 40% of American businesses currently offer telecommuting programs for their employees. D) About 25% of American businesses currently offer telecommuting programs for their employees. E) The percentage of American businesses offering telecommuting programs is expected to decline within the next decade.
Answer: C Diff: 2 Page Ref: 75 Skill: Concept
39) Because of increasing ________, Americans will demand higher quality products, books, magazines, travel, personal computers, and Internet services. A) numbers of nontraditional families B) family size C) levels of education D) social class awareness E) ethnic diversity
Answer: C Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity
52) Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________ declines and the percentage spent on ________ remains about constant. A) food; clothing B) clothing; recreation/entertainment C) savings; transportation D) food; housing E) recreation/entertainment; savings
Answer: D Diff: 2 Page Ref: 79-80 Skill: Concept
59) Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation. A) private B) maximum C) intermittent D) at least some E) no
Answer: D Diff: 2 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning
61) The legislation created to limit the number of commercials aired during children's programming is called the ________. A) Children's Online Privacy Protection Act B) Child Protection Act C) Commercial Product Act D) Children's Television Act E) Consumer Product Safety Act
Answer: D Diff: 2 Page Ref: 84 Skill: Concept AACSB: Communication
74) Cultural forecasters have noted a renewed American interest in ________. A) dominating and taming nature B) the fine arts C) work as a source of satisfaction and self-definition D) spirituality E) organized religion
Answer: D Diff: 2 Page Ref: 91 Skill: Concept AACSB: Multicultural and Diversity
9) Which of the following is NOT an example of a public that is part of a company's marketing environment? A) financial B) media C) government D) citizen-action E) marketing department
Answer: E Diff: 2 Page Ref: 69-70 Skill: Concept AACSB: Communication