MKTG Chapter 3

Marketing intermediaries supply resources needed by a company to produce its goods and services.

false

The Office Depot Foundation serves its financial publics through a variety of programs.

false

The most important actors in a company's microenvironment are its competitors.

false

Value marketing has become the watchword for many marketers.

true

Which of the following is most likely true about business legislation? A) Business laws are enforced only in international markets and not in local markets. B) Business laws fail to prevent unfair competition among the different companies in a market and tend to encourage monopolies. C) Business laws usually remain constant over time. D) Local, national, and state business laws rarely overlap with one another. E) Business laws that are enforced by government agencies have a major impact on a company's marketing performance.

Business laws that are enforced by government agencies have a major impact on a company's marketing performance.

Which of the following is most likely true about people's beliefs and values? A) Belief in marriage is a secondary belief for most Americans. B) Secondary beliefs and values cannot be changed. C) Marketers have a high chance of changing core beliefs and values. D) Secondary beliefs are passed on from parents to children. E) Core beliefs and values have a high degree of persistence.

Core beliefs and values have a high degree of persistence.

Which of the following is most likely a true statement about generational groups in the United States? A) The Millennials account for nearly half of all discretionary consumer spending in the United States. B) The Generation Xers are the most educated generation to date. C) The baby boomers comprise the poorest segment of the population. D) The Generation Xers form the largest segment of the population. E) The Millennials are the most financially secure generation.

The Generation Xers are the most educated generation to date.

Which of the following is most likely a true statement about diversity in the United States? A) Most ethnic groups are shedding their ethnic culture and shifting toward a unified American culture. B) Asian Americans constitute the largest ethnic group in the United States. C) Ethnic and cultural differences exist since different ethnic groups remain isolated from one another. D) Various ethnic groups mix together but also retain their cultural differences. E) The nation's ethnic populations are set to decrease in coming decades.

Various ethnic groups mix together but also retain their cultural differences.

Which of the following is an example of a local public? A) a community organization that addresses welfare issues in its neighborhood B) a supplier responsible for sourcing most of the raw materials used in production C) a company director who is working to improve the organization's public image D) a bank that helps a company acquire loans E) a federal regulatory agency that monitors business practices

a community organization that addresses welfare issues in its neighborhood

Which of the following is part of the microenvironment of a company's marketing environment? A) a just-in-time inventory system used by the company when making purchase decisions B) a set of laws that require the company to scale down its telemarketing calls to customers C) a changing demographic picture that requires the firm to make product adaptations D) a new technology that would ensure significant cost-cutting if implemented in the firm E) a set of environmental sustainability laws that significantly impact the company's production processes

a just-in-time inventory system used by the company when making purchase decisions

Which of the following illustrates the changing composition of the American family? A) the number of same-sex couples raising children has decreased B) the number of married couples with children under 18 is climbing C) fewer people are divorcing or separating D) an increase in the number of non-family households E) a decrease in the number of same-sex couples

an increase in the number of non-family househoulds

To which of the following generational groups do zoomers belong? A) Millennial B) Generation X C) Generation Z D) Lost Generation E) baby boomer

baby boomer

Which of the following generational groups account for a third of the U.S. population but half of all consumer spending? A) Millennial B) Generation X C) Generation Z D) baby boomer E) Lost Generation

baby boomer

Secure is a financial services and insurance company. The company's most profitable division is one that sells the Secure Future Plan. The Secure Future Plan targets customers who are entering retirement and want long-term savings so they can remain financially independent in the later years of their life. The marketing team at Secure has most likely targeted the plan at ________. A) Millennials B) baby boomers C) Generation Xers D) Generation Zers E) the Lost Generation

baby boomers

Dextora Technologies manufactures microprocessors and caters exclusively to private manufacturers that produce high-end computers. Which type of market does Dextora directly target? A) retail market B) government market C) consumer market D) business market E) reseller market

business market

Ursa Martin, a book publisher, has decided to work with Hope in Children, a charity foundation that helps feed and educate children in poor countries. Ursa Martin has decided that a percentage of revenue from every book it sells will go to the charity. The books are marketed by conveying this message to customers. Which of the following marketing techniques describes Ursa Martin's association with Hope in Children? A) joint venture marketing B) cause-related marketing C) niche marketing D) green marketing E) test marketing

cause-related marketing

A consumer advocacy group challenges a firm's decision to build a new warehouse in a small community. The advocacy group is an example of a ________ public. A) financial B) government C) media D) local E) citizen-action

citizen action

Kelstone Developers is planning to build a new shopping mall that would require the partial acquisition of a nearby public park. Walking Green, an environmental group, challenges the plan citing environmental destruction. In response to the demands of Walking Green, Kelstone Developers promises to build a huge park-like walkway around the mall. Walking Green is an example of a(n) ________ in this scenario. A) financial public B) government public C) citizen-action public D) internal public E) media public

citizen-action public

________ markets consist of individuals and households that buy goods and services for personal use. A) Consumer B) Business C) Government D) Wholesaler E) Retailer

consumer

According to the text, ________ are the most important actors in a company's microenvironment. A) stockholders B) employees C) suppliers D) resellers E) customers

customers

________ is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. A) Sociobiology B) Demography C) Behavioral ecology D) Environmental studies E) Political science

demography

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company. A) economic B) natural C) demographic D) political E) cultural

economic

The citizen-action publics in a company's marketing environment include ________. A) employees and managers of the company B) stockholders and investment analysts C) government trade agencies D) environmental groups E) news channels

environmental groups

Recyclable or biodegradable packaging, recycled materials and components, and better pollution controls are ways that marketers have responded to the ________. A) increased need to comply with environmental regulations B) pollution reduction movement C) new recycling laws D) new government intervention program E) environmental sustainability movement

environmental sustainability movement

A customer buys a can of Pepsi from a Walmart store. In this scenario, Walmart is a supplier in Pepsi's value delivery network.

false

Cause-related marketing techniques are typically unprofitable for businesses, which is why it is a rarely used form of corporate giving.

false

Generation X is the least educated group to date.

false

In the context of income distribution, the middle class in the United States has grown in size over the past several decades.

false

Stringent product regulations have helped to lower research costs and decrease time between new product ideas and their introduction to the market.

false

The Consumer Product Safety Commission has created complex regulations for testing new drugs before they are sold to the public

false

The least significant demographic trend in the United States is the changing age structure of the population.

false

Monfax Corporation insures manufacturers, distributors, and consumers against the loss or damage of goods during transportation after a purchase or sale. In this case, Monfax is an example of a ________. A) wholesaler B) retailer C) financial intermediary D) physical distribution firm E) marketing service agency

financial intermediary

Which of the following is most likely categorized as a business market? A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services for further processing D) firms that buy goods and services to resell for profit E) retail outlets that buy goods and services to sell at discounted prices

firms that buy goods and services for further processing

Reseller markets consist of ________. A) government agencies that buy goods and services to produce public services B) individuals who buy goods and services for personal consumption C) firms that buy goods and services to assemble overseas D) firms that buy goods and services to sell at a profit E) firms that buy goods and services for further processing

firms that buy goods and services to sell at a profit

Which generational group is characterized as the most educated and the least materialistic? A) baby boomer B) Generation X C) Millennial D) Generation Z E) Lost Generation

generation x

Which generational group consists of the kid, teen, and tween markets? A) Generation Y B) Millenial C) Generation Z D) Generation X E) Lost Generation

generation z

Which generational group is most comfortable using digital technologies? A) Millennial B) Zoomer C) Generation X D) Generation Z E) Lost Generation

generation z

Which of the following has resulted from the increased educational levels of the U.S. population? A) lower acceptance of technological changes B) greater job growth for professional workers C) higher number of manufacturing jobs D) lower mobility of the U.S. population E) lower number of women in the workforce

greater job growth for professional workers

Which of the following represents a change in the technological environment of a marketing firm? A) increased use of cause-related marketing B) increased use of RFID systems to track products C) increased need to comply with environmental regulations D) increased use of value marketing techniques and promotions E) increased need to engage in mass marketing over market segmentation

increased use of rfid systems to track products

Volunteers belong to a company's ________ publics. A) general B) local C) citizen-action D) media E) internal

internal

The town of Genter recently witnessed a devastating hurricane that crippled the town's infrastructure. Q-Mart, a retail chain that plans to open a new retail store in Genter, organizes a program to help the people of Genter. The program consists of providing free meals to those who lost their dwellings in the hurricane. What section of the marketing microenvironment is Q-Mart most likely trying to reach? A) suppliers B) marketing intermediaries C) local publics D) competitors E) employees

local publics

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A) supply chain B) macroenvironment C) marketing intermediary network D) internal environment E) microenvironment

macroenvironment

) Which of the following is most likely a true statement about people's views about organizations? A) Many people view work at an organization as a required chore. B) People don't expect organizations to carry out society's work. C) Confidence in political organizations has increased in recent years. D) Loyalty towards employers has increased in the past two decades. E) Many people today see organizations as a source of personal satisfaction.

many people view work at an organization as a required chore

Members of which generational group are referred to as echo boomers? A) the Lost Generation B) Generation X C) Generation Z D) the baby boomers E) Millenial

millenial

Which of the following is the most financially strapped generation in the post-recession era? A) Millennial B) Generation X C) Generation Z D) the Lost Generation E) baby boomers

millennial

Technology is a way of life for ________, the largest generational group. A) Generation Z B) Generation X C) baby boomers D) Millennials E) the Lost Generation

millennials

Which of the following is a geographic shift that has been observed in the United States in recent times? A) fewer Americans moving to Sunbelt states B) fewer Americans moving to the South C) more Americans moving to the Midwest D) more Americans moving to densely populated cities E) more Americans moving to micropolitan areas

more Americans moving to micropolitan areas

A marketing intermediary would most likely help a firm by ________. A) negotiating with labor unions regarding wages, hours, and benefits B) providing technical expertise on the production and design of goods C) competing directly with the firm in a certain product category D) supplying the raw materials needed for manufacturing the firm's products E) moving the firm's goods from production points to distribution centers

moving the firms goods from production points to distribution centers

Fargo Inc. is a carbonated beverage manufacturer that has many manufacturing plants around the world. It is planning to shift from using thermal power to wind power for its manufacturing plants in the Netherlands to decrease dependency on nonrenewable sources of energy. This scenario depicts Fargo's concern for its ________ environment. A) economic B) natural C) demographic D) political E) cultural

natural

In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. A) political B) cultural C) technological D) natural E) internal

political

Governments most likely enact business legislation to ________. A) prevent unfair competition in the market B) allow a single large monopoly in the market C) prevent alternative products from entering the market D) protect the interests of producers rather than society E) dissociate social responsibility from commerce

prevent unfai

The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________. A) failure to provide value-priced products for online customers B) protecting the privacy of knowing and unknowing customers C) providing too many alternative products online which confuses customers D) rarely following the marketing orientation when devising promotional offers online E) failing to reach their target customers through online marketing

protecting the privacy of knowing and unknowing customers

JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater? A) business markets B) reseller markets C) manufacturer markets D) supplier markets E) consumer markets

reseller markets

Which of the following is most likely a financial public? A) community organization B) minority group C) corporate attorney D) stockholder E) newspaper

stockholder

American Honda purchases over $20 billion worth of auto parts and materials every year. ________ are key players in the company's success. A) Wholesalers B) Suppliers C) Physical distribution firms D) Media firms E) Retailers

suppliers

The ________ environment is perhaps the most dramatic force shaping the destiny of individuals and offering exciting opportunities for marketers. A) demographic B) technological C) political D) social E) cultural

technological

The migration trend towards micropolitan and suburban areas has caused a shift in where people work. This has resulted in a rapid increase in the number of people who ________. A) commute B) leave the workforce C) telecommute D) work part-time E) purchase second residences

telecommute

Which of the following is an example of a media public? A) community organization B) minority group C) television station D) banking institution E) federal government

television station

Which of the following are examples of internal publics of a company? A) newspapers, magazines, television stations, blogs, and other Internet media B) governmental departments and agencies that regulate businesses C) neighborhood residents and community organizations D) the managers, board of directors, and workers of the company E) the general public that is directly affected by the company

the managers, board of directors, and workers of the company

Which of the following is part of the microenvironment of a firm's marketing environment? A) the political state of the country in which the firm exists B) the cultural forces that exist in a society C) the suppliers who work with the company D) the technological resources available to the company E) the different demographic trends in the market

the suppliers who work with the company

Which of the following is most likely a characteristic of the Millennial generation? A) They have very little knowledge of using digital media. B) They are a smaller population than Generation X. C) They are the wealthiest generation in the United States to date. D) They are more likely to engage with brands using mobile or social media. E) They typically avoid using technology while buying products.

they are more likely to engage with brands using mobile or social media

Which of the following is most likely a true statement about baby boomers? A) They are the first generation to have grown up with computers. B) They constitute the largest demographic group in the United States. C) They were born between 1965 and 1976. D) They are the most educated generation of Americans. E) They are the wealthiest generation in U.S. history.

they are the wealthiest generation in US History

Which of the following is most likely true about companies that take a proactive stance toward the marketing environment? A) They develop strategies to change the marketing environment. B) They believe that marketing strategies are bound by the current environment. C) They passively accept the marketing environment in its current state. D) They view the marketing environment as an uncontrollable element. E) They design strategies according to environmental forces in the market

they develop strategies to change the marketing environment

Which of the following is most likely a characteristic of firms that adopt a reactive approach toward the marketing environment? A) They develop strategies to change the marketing environment. B) They take advantage of the opportunities provided by the environment. C) They take aggressive actions to affect the marketing environment. D) They view the marketing environment as a controllable element

they take advantage of opportunities provided by the environment

Which of the following is most likely a characteristic of Generation Xers? A) They were the first group to grow up in the Internet era. B) They comprise a considerably larger population than the baby boomers. C) They prefer quantity over quality of products. D) They are the least educated generation to date. E) They are generally unreceptive to ad pitches that make fun of tradition

they were the first group to grow up in the internet era

A bank that helps a company finance transactions is both a financial intermediary and a financial public.

true

A company that adopts a reactive marketing stance would most likely view the marketing environment as an uncontrollable element to which it must adapt.

true

Advertising agencies that help a company target a certain section of customers are marketing intermediaries.

true

Companies are adapting their promotional efforts to reflect the changing dynamics of American families.

true

Government regulations are intended to protect consumers, companies, and societal interests.

true

Many companies have started to target the LGBT market segment which has significant buying power.

true

The Federal Trade Commission enforces laws that prevent unfair competition in business.

true

The distribution of income in the United States has created a tiered market

true

The purchasing power of a population is part of the demographic environment of a company's macroenvironment.

true

The rapid increase in the number of people who telecommute has created a booming small office/home office market in the United States

true

Walmart's microenvironment includes suppliers.

true

Companies have responded to consumers' back-to-basics sensibility in their lifestyle and spending patterns through ________. A) frugal marketing B) value marketing C) quality marketing D) diverse marketing E) prestige-oriented marketing

value marketing

________ are distribution channel firms that help a company find customers or make sales to them. A) Resellers B) Suppliers C) Producers D) Logistics firms E) Credit companies

resllers

People's orientation to their society does not impact their consumption patterns and attitudes toward the marketplace

false

Firms that develop strategies to change the environment are considered proactive.

true

Marketers have a better chance of taking advantage of a person's secondary beliefs than his or her core beliefs.

true

P&G "Tide Loads of Hope" program provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas. This is an example of ________ marketing. A) social B) environmental C) ethical D) cause-related E) charitable

cause-related

Which of the following has the primary function of helping a company target and promote its products to the right markets? A) Marketing services agencies B) Resale marketers C) Service providers D) Physical distribution firms E) Credit companies

marketing services agencies

Large companies like P&G, Walmart, and Allstate have designed specialty products and promotions to target a previously untapped market that has grown substantially in recent years. They are appealing to ________. A) the Millenial generation B) the Asian American market C) the African American market D) the LGBT community E) the Hispanic market

the lgbt community

The responsibility for setting a company's mission, objectives, broad strategies, and policies primarily lies with its ________. A) finance department B) research department C) top management D) marketing managers E) human resource managers

top management