Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault - Test Bank

Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 05

Demographic Dimensions of Global Consumer Markets

 

True / False Questions

1. The goal of target marketers is to develop unique marketing strategies that find unsatisfied customers to whom they can then offer superior value through more attractive marketing mixes.
   True    False

 

2. The U.S. does not have the largest population of any country in the world, but it does have the largest population growth rate.
   True    False

 

3. The U.S. population is over 310 million people and the world population is almost 7 billion people.
   True    False

 

4. Nearly 90 percent of today’s 1.2 billion youth is in developing countries.
   True    False

 

5. India has more people than the United States, and China has more people than India.
   True    False

 

6. Less-developed countries usually experience the slowest population growth.
   True    False

 

7. In the United Kingdom, Iceland, Australia, Israel, and Singapore, for example, less than 20 percent of people live in urban areas.
   True    False

 

 

8. The worldwide trend toward urbanization has prompted increased interest in international markets.
   True    False

 

9. When considering international markets, income is often one of the most important demographic dimensions.
   True    False

 

10. When considering international markets, income is usually not an important demographic dimension.
    True    False

 

11. Both GDP and GNI are widely used measures of national income.
    True    False

 

12. Gross domestic product is the total dollar value of a country’s exports during a one year period.
    True    False

 

13. Gross domestic product includes foreign income earned in a country.
    True    False

 

14. GNI is the total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
    True    False

 

 

15. GDP income measures can give the impression that people in less-developed nations have more income than they really do.
    True    False

 

16. GNI income measures can give the impression that people in less-developed nations have less income than they really do.
    True    False

 

17. Generally the nations with the fastest growth in GDP are not the nations with the largest GDPs.
    True    False

 

18. The fastest rate of growth in GDP is occurring in the nations with the largest current GDP.
    True    False

 

19. Even though the more developed industrial nations don’t have the largest populations, they do have the biggest share of the world’s GDP.
    True    False

 

20. Countries where gross national income (GNI) per capita is low do not offer any opportunities for marketers.
    True    False

 

21. Much of the world’s population lives in extreme poverty.
    True    False

 

 

22. Because almost all of the world’s population can read and write, international marketers have no problems in communicating with potential customers no matter where they live.
    True    False

 

23. Adoption of the Internet and cell phones is having its greatest impact in developing countries, but the adoption rates of these technologies still lags behind those in other parts of the world.
    True    False

 

24. The World Factbook gives facts and statistics on each country in the world, and is prepared by the CIA for the exclusive use of U.S. government officials.
    True    False

 

25. California is the state with the largest population, and Texas is a distant second.
    True    False

 

26. New York is the state with the largest population, and California is a distant second.
    True    False

 

27. Population figures for a single year don’t show the dynamic aspects of markets.
    True    False

 

28. There are over 310 million people living in the United States.
    True    False

 

29. In the United States, the West and the South are growing faster than the Northeast and the North Central areas.
    True    False

 

 

30. Areas with small populations may still be attractive target markets for some firms–because there may be less competition.
    True    False

 

31. The rate of growth of the U.S.’s population is lower than the rate of growth of some other countries’ population.
    True    False

 

32. Most of the U.S.’s future population growth is expected to come from immigration.
    True    False

 

33. The birthrate has been steadily increasing for nearly 65 years–and that trend is called the “baby boom.”
    True    False

 

34. In 1980, the median age of the U.S. population was 37.
    True    False

 

35. The median age in the United States increased from 30 in 1980 to 37 in 2010.
    True    False

 

36. The average age of the U. S. population will continue to rise for many years because of the post-World War II “baby boom.”
    True    False

 

37. Gen X’s smaller size (compared to the baby boomer group) is a result of the baby bust.
    True    False

 

 

38. For the first time, women in the Gen Y group were more highly educated than men.
    True    False

 

39. Gen Y is the result of the echo boom and its members are more techno-savvy than any other group.
    True    False

 

40. In the U.S., less than two percent of the population lives in rural areas on farms.
    True    False

 

41. A Metropolitan Statistical Area is an integrated economic and social unit with a large population at the center.
    True    False

 

42. The Metropolitan Statistical Area is an integrated economic and social unit with a large population nucleus.
    True    False

 

43. A Metropolitan Statistical Area usually has a population of at least 50,000 people.
    True    False

 

44. A Metropolitan Statistical Area (MSA) usually has less than 50,000 inhabitants.
    True    False

 

45. MSAs with a population of less than 50,000 are called Consolidated Metropolitan Statistical Areas.
    True    False

 

 

46. Competition for consumer dollars is usually greater inside an MSA than outside an MSA.
    True    False

 

47. Americans are not very mobile–less than 2 percent of all Americans move each year.
    True    False

 

48. About 30 percent of those who move each year are relocating to a new county.
    True    False

 

49. Compared to 60 years ago, fewer American families are now in the middle and upper income levels.
    True    False

 

50. Higher-income groups in the U.S. no longer receive a very large share of the total income.
    True    False

 

51. Higher-income groups in the United States receive a very large share of total income.
    True    False

 

52. The median income of U.S. families in 2008 was about $61,521.
    True    False

 

53. The top 20 percent income group in the U. S. receives almost 80 percent of the total income.
    True    False

 

 

54. In 2008, over 40 percent of U.S. families received more than $113,205 income.
    True    False

 

55. In 2008, only 20 percent of U.S. families received more than $113,205 income.
    True    False

 

56. In 2008, 40 percent of U.S. families received less than $49,325 income.
    True    False

 

57. Only about 5 percent of families in the U.S. have incomes over $200,000, but these families get more than 20 percent of the total income.
    True    False

 

58. The lowest 20 percent income group in the U.S. receives less than 5 percent of the country’s total income.
    True    False

 

59. It’s not unusual for a college graduate to start out earning as much as the median family income.
    True    False

 

60. Disposable income is what is left after taxes.
    True    False

 

61. Discretionary income is what is left after paying taxes.
    True    False

 

 

62. Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time.
    True    False

 

63. Marital status, age, and the age of any children in a household are the three demographic dimensions that determine stage of family life cycle.
    True    False

 

64. Stage of family life cycle is usually determined by two demographic dimensions–income and number of children.
    True    False

 

65. Over 6 million couples now live together without getting married and many of them raise families.
    True    False

 

66. About 10 million grandparents now live with their grandchildren.
    True    False

 

67. The typical American household consists of a couple with two children living at home.
    True    False

 

68. The “typical” American household can be seen as a married couple with two children, living in the suburbs.
    True    False

 

 

69. In the U.S., traditional households are growing at a much higher rate than nontraditional households.
    True    False

 

70. In the U.S., single-adult households account for over one-fourth of all households.
    True    False

 

71. In the U.S., single-adult households account for nearly two thirds of all households.
    True    False

 

72. Less than a fourth of all U.S. households consist of a husband, wife, and children under 18.
    True    False

 

73. About 85 percent of all Americans do eventually marry–even though they marry later, delay child bearing, and have fewer children.
    True    False

 

74. The United States has the highest divorce rate in the world.
    True    False

 

75. In the U.S., about 80 percent of all divorced people remarry.
    True    False

 

76. In the U.S., about 60 percent of all adults are married.
    True    False

 

 

77. Singles and young couples seem less willing to try new products because they earn less.
    True    False

 

78. Younger families with no children are a good market for durable goods such as automobiles and furniture.
    True    False

 

79. Older people seem to be more open to new products and brands than younger people.
    True    False

 

80. Families with teenagers tend to spend more on durables than younger families.
    True    False

 

81. Teens play an increasingly minor role in shaping family purchases.
    True    False

 

82. “Empty nesters” are people whose children are grown and who are now able to spend their money in other ways.
    True    False

 

83. “Empty nesters” is a term that refers to young couples with no children.
    True    False

 

84. Senior citizens may be an attractive target market because they have lower poverty rates than the figure for all adults.
    True    False

 

 

85. About 1 out of 5 families in the U.S. speaks a language other than English at home.
    True    False

 

86. In the U.S., ethnic submarkets are growing at a faster rate than the overall population.
    True    False

 

87. Both the birthrate and the buying power of ethnic groups in the U.S. are increasing.
    True    False

 

88. In ethnic markets within the U.S., the median age is higher and the birthrate is lower than the overall population.
    True    False

 

89. The Hispanic population in the U.S. is already larger than the Black population.
    True    False

 

90. Hispanic Americans are now the largest AND fastest-growing ethnic group in the U.S.
    True    False

 

91. Asian Americans are the largest and fastest-growing ethnic group in the United States.
    True    False

 

92. Of all the major ethnic groups in the U.S., Asian Americans have the highest median family income.
    True    False

 

 

93. Asian Americans have the highest median family income of the major ethnic groups.
    True    False

 

94. In 2010, the buying power of Hispanics and African Americans each reached nearly $1 trillion a year.
    True    False

 

95. Already, more than 41 percent of American children are African American, Hispanic, or Asian.
    True    False

 

96. By 2015, whites will account for fewer than half of births in the U.S.
    True    False

 

97. In the 10 largest cities in the U.S., no racial or ethnic group has a majority.
    True    False

 

98. In the U.S., whites are expected to become a minority by mid-century.
    True    False

 

 

Multiple Choice Questions

99. When considering a potential product-market, a marketer should decide:
    A. where it is.
    B. what its relevant segmenting dimensions are.
    C. how big it is.
    D. All of the above.

 

 

100. In analyzing a potential market, the LEAST RELEVANT question for a marketing manager to answer is:
     A. how big is the market?
     B. what is the average age in the market?
     C. where is the market?
     D. what are the market’s relevant segmenting dimensions?

 

101. Which of the following is an important question that marketers need to answer about any potential market?
     A. How big is it?
     B. Where is it?
     C. What are its relevant segmenting dimensions?
     D. All of the above are important questions.
     E. None of the above are important questions.

 

102. When looking at demographic dimensions, marketers should:
     A. know that it is illegal to segment markets based on membership in some racial or ethnic group.
     B. know that demographics are especially helpful in explaining why specific people buy specific brands.
     C. recognize that demographics can be very useful for estimating the market potential of possible target markets.
     D. understand that ethnic groups are generally homogeneous within.
     E. All of the above are correct.

 

103. Analysis of demographic dimensions:
     A. is the most important step to successful segmentation.
     B. considers income and sex, but not age.
     C. is the most effective way to identify unmet consumer needs.
     D. can be used along with analysis of other dimensions to identify attractive target markets.
     E. none of the above.

 

 

104. Information on demographic dimensions
     A. even if “partly true,” is good enough to make marketing strategy decisions.
     B. of consumer markets around the world is not available.
     C. is chargeable—if available—because it is collected by private organizations.
     D. makes valid data available to managers.
     E. helps managers make decisions based on guesses.

 

105. According to projections, the population of _____ is likely to grow by 15 percent between 2010 and 2025.
     A. Japan
     B. Russia
     C. United States
     D. Uganda
     E. India

 

106. Which of the following observations about population trends is incorrect?
     A. Between 1950 and 2000, world population doubled.
     B. Today, the population growth is about 1.2 percent per year.
     C. U.S. population makes up more than 10 percent of total world population.
     D. Over the long term population growth is expected in most countries.
     E. Less-developed countries experience the fastest population growth rates.

 

107. Which of the following statements about world population trends is True?
     A. In general, countries that have higher stages of development experience faster rates of growth than less-developed countries.
     B. The extent to which a country’s population is clustered around urban areas does not vary much from country to country.
     C. People are moving off the farm and into industrial and urban areas.
     D. The trend toward urbanization has made companies less interested in international markets.
     E. All of the above.

 

 

108. Which of the following statements is/are true?
     A. The United States makes up less than 5 percent of the total world population.
     B. In general less-developed countries experience a faster rate of population growth than developed countries.
     C. There is a worldwide trend toward urbanization.
     D. The world population is now almost 7 billion people.
     E. All of the above are true.

 

109. Regarding population growth in the world,
     A. population growth in Japan and Europe is even slower than in the U.S.
     B. less-developed countries generally experience the fastest growth.
     C. the populations of Madagascar and Somalia will likely increase by more than 50 percent between 2010 and 2025 while the populations of the U.S. and Canada will grow by less than 20 percent.
     D. All of the above are true.
     E. None of the above are true.

 

110. The greatest growth in the world’s population over the next several years will come from:
     A. Western Europe.
     B. Middle East and Far East.
     C. Australia.
     D. Eastern Europe.
     E. Russia and nations of the former Soviet bloc.

 

111. Which of the following countries has the fastest projected population growth between 2010 and 2025?
     A. United Kingdom
     B. Canada
     C. Germany
     D. United States
     E. Uganda

 

 

112. Which of the following countries is likely to see a population decline from 2010-2025?
     A. Germany
     B. Iceland
     C. United States
     D. United Kingdom
     E. China

 

113. Identify the incorrect statement about population density and shifts in population.
     A. Population density is important to marketers.
     B. In Ethiopia, Nepal, and Uganda more than 85 percent of people live in urban areas.
     C. People everywhere are moving from rural areas to urban areas.
     D. Population is very spread out in many of the African countries.
     E. India’s population is almost 1.2 billion and is getting larger.

 

114. Regarding population density in the world,
     A. high-population density occurs only in highly developed economies.
     B. some Western European and Asian urban areas are more crowded than U.S. urban areas.
     C. the United States is the only country with crowded urban areas.
     D. there is a worldwide movement back to rural areas.
     E. None of the above is true.

 

115. Which of the following countries has the highest population density?
     A. Switzerland
     B. United States
     C. Australia
     D. Singapore
     E. Bangladesh

 

116. In 2009, 100 percent of this country’s population was in urban areas.
     A. United States
     B. Singapore
     C. United Kingdom
     D. Germany
     E. Italy

 

 

117. The total market value of goods and services provided in a country’s economy per year by both residents and nonresidents of that country is:
     A. Gross domestic product.
     B. Gross national product.
     C. Gross national income.
     D. Gross domestic income.
     E. Gross disposable income

 

118. ____ refers to the total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
     A. Gross output
     B. Gross investment
     C. Gross national income
     D. Gross fixed capital formation
     E. Gross domestic product

 

119. Gross domestic product (GDP) is the:
     A. total cost of producing all goods and services sold in a year.
     B. total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country.
     C. total market value of goods (but not services) consumed in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. total market value of goods (but not services) produced in an economy in a year.

 

120. Gross domestic product (GDP) is the:
     A. total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country.
     B. manufacturers’ selling price of goods (but not services) produced in a year.
     C. total market value of goods (but not services) produced in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. None of the above.

 

 

121. Gross domestic product:
     A. is the total market value of goods, but not services, produced in a year.
     B. is an excellent basis for comparing consumer well-being across different cultures and economies.
     C. is a widely used measure of income for different countries.
     D. All of the above are true.
     E. A and B are true.

 

122. A widely used measure of income in most countries is:
     A. gross domestic product.
     B. total consumption expenditures.
     C. disposable personal product.
     D. population times GDP.
     E. socio-economic product.

 

123. Gross domestic product (GDP):
     A. is affected by economic conditions and the productivity of workers in the country.
     B. usually rises when there are bad economic conditions in an economy.
     C. is the amount of new capital invested in business in a year.
     D. is the total cost of producing all goods and services in a year.
     E. is the total market value of goods and services consumed in an economy in a year.

 

124. Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
     A. GDP measures show people’s tendency to buy particular products.
     B. income tends to be evenly distributed among consumers in most countries.
     C. GDP estimates may not be very accurate for very different cultures and economies.
     D. GDP measures show the degree of competition in a market.
     E. All of the above are true.

 

 

125. Regarding gross domestic product (GDP) and gross national income (GNI):
     A. GDP income measures can give the impression that people in less-developed nations have more income than they really do.
     B. GDP includes foreign income earned in a country, but GNI does not.
     C. Both GDP and GNI are widely used measures of national income.
     D. All of the above are true.
     E. A and B are true, but not C.

 

126. Gross national income (GNI) is the:
     A. total cost of producing all goods and services sold in a year.
     B. total market value of goods and services provided in an economy in a year by residents of that country.
     C. total market value of goods (but not services) consumed in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. total market value of goods (but not services) produced in an economy in a year.

 

127. Gross national income (GNI) is the:
     A. total market value of goods and services provided in an economy in a year by residents of that country.
     B. manufacturers’ selling price of goods (but not services) produced in a year.
     C. total market value of goods (but not services) produced in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. None of the above.

 

128. Gross national income:
     A. is the total market value of goods, but not services, produced in a year.
     B. is an excellent basis for comparing consumer well-being across different cultures and economies.
     C. is a widely used measure of income for different countries.
     D. All of the above are true.
     E. A and B are true.

 

 

129. A widely used measure of income in most countries is:
     A. gross national income.
     B. total consumption expenditures.
     C. disposable personal product.
     D. population times GNI.
     E. socio-economic product.

 

130. Gross national income (GNI):
     A. is affected by economic conditions and the productivity of workers in the country.
     B. usually rises when there are bad economic conditions in an economy.
     C. is the amount of new capital invested in business in a year.
     D. is the total cost of producing all goods and services in a year.
     E. is the total market value of goods and services consumed in an economy in a year.

 

131. Unlike the GDP, the GNI
     A. includes foreign income.
     B. is the total market value of all goods and services provided in a country’s economy in a year by nonresidents.
     C. includes the income earned by residents who do not own resources in that nation.
     D. does not include income earned by foreigners who own resources in that nation.
     E. is a measure of regional income.

 

132. If American firm Boeing sets up a factory in China, then the GDP figure for China _____ include those profits and the GNI ______.
     A. would; would as well
     B. would; would not
     C. would not; also would not
     D. would not; would
     E. would; would only measure actual sales

 

 

133. Identify the incorrect statement pertaining to the GNI per capita.
     A. The GNI per capita in the United States is the highest in the world.
     B. The GNI per capita is quite high in the United States, Japan, and Germany.
     C. The GNI per capita gives some idea of the income level of people in the country.
     D. Many managers see great potential in countries where GNI per capita is low.
     E. Managers see less competition where GNI per capita is low.

 

134. Which of the following observations concerning different measures of national income is TRUE?
     A. GDP does not include income earned by foreigners who own resources in that nation.
     B. Using GNI can give the impression that people in less-developed countries have more income than they really do.
     C. GNI per capita is a useful figure because it gives some idea of the income level of people in the country.
     D. The less-developed nations account for the biggest share of the world’s GDP.
     E. GDP is the only measure of national income.

 

135. Which of the following countries have the HIGHEST GNI PER CAPITA?
     A. Saudi Arabia and Kuwait
     B. Mexico and Spain
     C. United States and Switzerland
     D. India and China
     E. Japan and Germany

 

136. Which of the following countries has the highest GNI per capita?
     A. United States
     B. India
     C. Switzerland
     D. Saudi Arabia
     E. Venezuela

 

 

137. Which of the following countries have the LOWEST GNI PER CAPITA?
     A. Japan and Switzerland
     B. Mexico and Spain
     C. Ethiopia and Nepal
     D. India and Pakistan
     E. Germany and the United States

 

138. A company trying to market its products in a country that has a low literacy rate would be well advised to:
     A. Print its promotional messages in larger font (character) sizes.
     B. Conduct marketing research using paper-and-pencil surveys.
     C. Use symbols, colors, and other nonverbal means of communication.
     D. All of the above.
     E. None of the above.

 

139. Literacy studies show that ______________ percent of adults (age 15 or older) cannot read and write.
     A. 10
     B. 18
     C. 38
     D. 50
     E. 60

 

140. Which of the following countries has the HIGHEST literacy rate?
     A. Finland
     B. Venezuela
     C. Greece
     D. Algeria
     E. Morocco

 

 

141. Which of the following countries has the LOWEST literacy rate?
     A. United Kingdom
     B. Italy
     C. Bangladesh
     D. France
     E. Egypt

 

142. According to estimates, which of the following countries has 100 percent literacy?
     A. Norway
     B. Singapore
     C. Italy
     D. Kuwait
     E. China

 

143. All of the following countries listed more than 75 percent of their populations as Internet users in 2009 EXCEPT:
     A. Sweden
     B. Australia
     C. United States
     D. South Korea
     E. Norway

 

144. The current U. S. population is LARGEST in which of the following states:
     A. California.
     B. Florida.
     C. Illinois.
     D. New York.
     E. Texas.

 

 

145. The state with the largest population is
     A. Texas.
     B. Nevada.
     C. New York.
     D. Florida.
     E. California.

 

146. According to the text, which of the following states had the LARGEST projected percentage increase in population between 2000 and 2010?
     A. North Dakota
     B. Nevada
     C. West Virginia
     D. Florida
     E. Iowa

 

147. The state with the largest percentage increase in population between 2000 and 2010 is:
     A. New York
     B. Nevada
     C. Illinois
     D. South Dakota
     E. Michigan

 

148. The current U. S. population is SMALLEST in which of the following states:
     A. Montana.
     B. Nebraska.
     C. Oklahoma.
     D. Utah.
     E. Wyoming.

 

 

149. In the period from 2000 to 2010, the population is projected to grow most rapidly in:
     A. the north central states (around the Great Lakes).
     B. every state in the U.S.
     C. Sun Belt states.
     D. the western states.
     E. None of the above is true.

 

150. Over the past decade, _____ percent of the U.S.’s population growth occurred in the West and the South.
     A. 45
     B. 55
     C. 65
     D. 75
     E. 85

 

151. In the past decade, all of the following U.S. states had really fast population growth rates EXCEPT:
     A. Missouri
     B. Nevada
     C. Arizona
     D. Idaho
     E. Utah

 

152. Over the past decade, growth in population in the western states of the U.S. averaged about ______ percent.
     A. 5
     B. 10
     C. 15
     D. 20
     E. 25

 

 

153. Over the past decade, which state in the U.S.’s Sun Belt had the fastest population growth?
     A. Texas
     B. Georgia
     C. North Carolina
     D. South Carolina
     E. Florida

 

154. During the 2010-2020 decade, the U.S. population is expected to continue to shift:
     A. away from the Southeast to the Northeast.
     B. to the South and West.
     C. to the north central states.
     D. away from the Northeast to all other parts of the country.
     E. away from the West to the East.

 

155. Identify the incorrect statement about the concentration of population in the United States.
     A. California is the most populated state.
     B. The most populated U.S. areas developed near inexpensive water transportation.
     C. Some national marketers pay less attention to the plains and mountain states, which have fewer people.
     D. The heavy concentration of people in the Northeast still makes this market larger than the West Coast.
     E. New York is the second most populated state.

 

156. The best marketing opportunity for a consumer products producer is in:
     A. California.
     B. Florida.
     C. New York.
     D. Texas.
     E. It depends on the marketing strategy.

 

 

157. According to projections about percent growth in population for each state in the U.S., from 2000 to 2010,
     A. the greatest growth is in western states like Nevada, Arizona, Idaho, and Utah.
     B. the population growth of New York is expected to lead the nation.
     C. the combined population growth in all of the northeastern states will exceed 8 percent.
     D. the combined population growth in the West will average around 2 percent.
     E. the population growth in Georgia, North Carolina, and Virginia is negligible.

 

158. Smart marketers might respond to the changes in the U.S. population by:
     A. targeting customers in international markets to take advantage of faster population growth overseas.
     B. targeting areas where there is less population but also fewer competitors.
     C. focusing on areas, like the Northeast, where there are large numbers of potential customers.
     D. all of the above.
     E. none of the above.

 

159. Regarding changing population patterns
     A. the population of the U.S. will double in the next 15 years.
     B. nearly one half of the people move in a typical year.
     C. areas with rapid population growth may offer the most attractive marketing opportunities.
     D. All of the above are true.
     E. None of the above is true.

 

160. The different rates of population growth are important to marketers for all of the following reasons except
     A. sudden growth in one area may create a demand for many new shopping centers.
     B. retailers in growing areas face tougher competition for a smaller number of customers.
     C. marketers always look for fast-growing markets.
     D. in growing areas, demand may increase so rapidly that profits may be good even in poorly planned facilities.
     E. none of the above.

 

 

161. Which government agency is responsible for tracking the population data in the United States?
     A. Census Bureau of America.
     B. Census Institute for America.
     C. U.S. Census Agency.
     D. U.S. Census Bureau.
     E. U.S. Department of the Census.

 

162. Over the past decade, U.S. population growth has averaged about _____ percent a year.
     A. 1
     B. 2
     C. 3
     D. 4
     E. 5

 

163. In the next 20 years,
     A. there should be a continuous increase in the U.S. birthrate.
     B. the population of the U.S. will probably decline unless immigration offsets low birthrates.
     C. the growth rate of the U.S. population will rise.
     D. the U.S. population is expected to double.
     E. population will increase at a faster rate in the U.S. than in the rest of the world.

 

164. The number of babies born per year per 1,000 people is called the:
     A. economic index.
     B. birthrate.
     C. future market index.
     D. baby boom index.
     E. consumer surplus.

 

 

165. An estimate of the U.S. birthrate for the year is 14. This means that
     A. 14 babies were born per 1,000 people in the population.
     B. babies less than 1 year old were 14 percent of the population.
     C. 14 percent of population growth was from new births.
     D. the birthrate was at an all time high.
     E. the average age of the U.S. population will not increase in the next 10 years.

 

166. The birthrate in the United States
     A. has been almost constant for the last thirty years.
     B. is falling again because many couples born during the “baby boom” are now past their child-bearing years.
     C. rose when Vietnam vets got married, had children, and created the “baby boom” generation.
     D. will contribute more to U.S. population growth than immigration in the next 25 years.
     E. All of the above are true.

 

167. The U.S. birthrate
     A. has changed little over the last 65 years.
     B. started declining after World War II, until the mid-1950s.
     C. changed to a “baby bust” in the 1970s.
     D. changed to a “echo boom” in the 1980s.
     E. Both C and D are correct.

 

168. The birthrate in the U. S.:
     A. Has remained constant over the past 50 years.
     B. Rose sharply in the years immediately following World War II.
     C. Is currently increasing.
     D. Has been steadily falling since 1970.
     E. None of the above.

 

 

169. The median age of the U.S. population
     A. was 37 in 1980.
     B. will be about 30 by 2010.
     C. is decreasing because the percentage of population in older age groups has decreased.
     D. is growing because the percentage of population in older age groups has increased.
     E. has not changed since 1980.

 

170. Which of the following is NOT an accurate statement about consumer markets in the United States?
     A. There are already over 310 million people in the United States.
     B. The average age of the U.S. population is rising.
     C. The number of people in the 65+ age group will decline very substantially in the next decade.
     D. The post-WWII baby boom was followed eventually by the 1970s baby bust and then the 1980s echo boom.
     E. The number of people in the 45-64 age group increased very substantially in the 2000-2010 decade.

 

171. The move of the “Baby Boomers” into the 45-64 age group:
     A. increased the average age of the population.
     B. left many colleges and universities with excess capacity.
     C. contributed to increased interest in health and fitness products.
     D. All of the above are true.
     E. None of the above is true.

 

172. Between 2000 and 2010, the largest projected increase in the U.S. population occurred in the:
     A. 45-64 age group.
     B. 65 or over age group.
     C. 18-29 age group.
     D. 30-44 age group.
     E. 5-17 age group.

 

 

173. Which of the following age groups saw a decline in growth rate from 2000-2010?
     A. Under 5
     B. 18-29
     C. 30-44
     D. 45-64
     E. 65+

 

174. With respect to the age distribution of the U.S. population between 2000-2010,
     A. the size of the 18-29 age group rose more than 10 percent.
     B. the size of the 45-64 age group increased more rapidly than any other group.
     C. the size of the senior citizen group grew by 15 percent.
     D. All of the above are true.
     E. None of the above is true.

 

175. Regarding the age trends in the U. S. population for 2010-2020:
     A. The average age of the U. S. population is increasing.
     B. The number of people in the 45-64 age group is still increasing–although at a slower rate than between 2000-2010.
     C. The number of senior citizens in the over-65 age group is increasing at a greater rate than between 2000-2010.
     D. The oldest “baby boomers” are now reaching retirement age.
     E. All of the above.

 

176. With respect to marketing opportunities that depend on the age distribution of the U.S. population between 2010 and 2020,
     A. the senior citizen group will increase more rapidly than any other group.
     B. sales of products targeted at the 45-64 age group will continue to rise although more slowly than in the previous decade.
     C. the average age of the U.S. consumer is rising.
     D. sales of products targeted at the 30-44 age group will rise more sharply than in the previous decade.
     E. All of the above are true.

 

 

177. Between 2010 and 2020, the largest projected increase in the U.S. population will occur in the:
     A. 5-17 age group.
     B. 18-29 age group.
     C. 30-44 age group.
     D. 45-64 age group.
     E. 65 or over age group.

 

178. In the U.S., which population group has the fastest growing group of Facebook users?
     A. Busters
     B. Seniors
     C. Boomers
     D. Gen X
     E. Gen Y

 

179. For which of the following population groups were women more highly educated than men for the first time in U.S. history?
     A. Seniors
     B. Gen X
     C. Boomers
     D. Busters
     E. Gen Y

 

180. Which of the following U.S. marketing managers is about to make a serious mistake?
     A. “We are targeting the pre-school age group, since that group is growing faster than ever before.”
     B. “We are refocusing on senior citizens, since they will be a growing market for many years.”
     C. “We are developing special swimsuit designs for older women as that market is very large and growing.”
     D. “Our company is shifting to international markets, where the population will continue to grow at a more rapid rate.”
     E. None of the above seems headed for a mistake.

 

 

181. About ______ percent of the U.S. population lived in rural farm areas in 1920.
     A. 20
     B. 30
     C. 40
     D. 50
     E. 60

 

182. About ______ percent of the U.S. population lives in rural farm areas today.
     A. 2
     B. 4
     C. 6
     D. 8
     E. 10

 

183. The number of people living on farms in the United States is ______________ percent of the total population.
     A. 20
     B. more than 20
     C. 12
     D. less than 2
     E. 10

 

184. The largest group of Americans live in:
     A. suburban areas.
     B. farm areas.
     C. central cities.
     D. rural areas.

 

 

185. Regarding the population distribution in urban and suburban areas:
     A. Migration to rural areas from urban areas has been continuous in the U. S. since 1800.
     B. Middle-income consumers have been moving to the suburbs continuously since World War II.
     C. Today’s urban economic system is more dependent on central cities than it used to be.
     D. Purchase patterns tend to be the same in the suburbs and central cities.
     E. All of the above.

 

186. Regarding the population distribution in urban and suburban areas,
     A. more people live in suburbs than in central cities.
     B. the share of the U.S. population living on farms has dropped to less than 2 percent.
     C. professionals with high incomes tend to concentrate in metro areas.
     D. purchase patterns in suburbs are often different from those in central cities.
     E. All of the above are true.

 

187. Migration from rural to urban areas
     A. has been sporadic in the United States since 1800.
     B. has declined since 1950.
     C. has still not changed U.S. to an urban or suburban society.
     D. can result in misleading descriptions of markets.
     E. does not change the nature of markets.

 

188. A Metropolitan Statistical Area (MSA):
     A. must contain one city of 10,000 or more people.
     B. is an urbanized area with a population of at least 2,000,000 people.
     C. is an integrated economic and social unit with a large population nucleus.
     D. usually includes several cities.
     E. Both B and D are true.

 

 

189. A Metropolitan Statistical Area (MSA):
     A. contains one city of 500,000 or more.
     B. is an integrated economic and social unit having a large population nucleus.
     C. is a consolidated set of cities and suburbs.
     D. consists of one or more counties which must contain a total population of at least 2,000,000.
     E. Both C and D are required for an area to be designated an MSA.

 

190. A Metropolitan Statistical Area (MSA) is:
     A. an area where there has been at least a 15 percent change in the population during the previous 10 years.
     B. a city with 250,000 or more people.
     C. generally centered on one city or urbanized area of 50,000 or more inhabitants and includes bordering urban areas.
     D. a Census Bureau term that corresponds to county-by-county political boundaries.
     E. All of the above.

 

191. A ______ is an integrated economic and social unit with a large population nucleus.
     A. Small Urban Unit
     B. Consolidated Media Market
     C. PRIZM Cluster
     D. Consolidated Target Market
     E. Metropolitan Statistical Area

 

192. Which of the following statements is true?
     A. A Metropolitan Statistical Area generally centers on one urbanized area of 50,000 or more in population and includes bordering “urban” areas.
     B. Some national marketers sell only in the largest Metropolitan Statistical Areas.
     C. For most marketers, Metropolitan Statistical Areas are a more useful classification method than political boundaries.
     D. All of the above are true statements.
     E. None of the above are true statements.

 

 

193. Metropolitan Statistical Areas
     A. are attractive to many marketers, but usually are very competitive.
     B. are declining in importance.
     C. offer lower sales potential than might be suggested by the population base involved.
     D. All of the above are true.
     E. None of the above is true.

 

194. Consolidated Metropolitan Statistical Areas (CMSA):
     A. are the “central city” areas of the largest urban areas–such as New York City and Los Angeles.
     B. are the largest MSAs–those with a population of more than 1,000,000.
     C. are of little interest to marketers because they are defined by political boundaries rather than on some other, more useful, segmenting dimensions.
     D. have large populations, but usually are only of interest to marketers who are targeting low income consumers.
     E. Both C and D are true.

 

195. A Consolidated Metropolitan Statistical Area
     A. is a group of small towns or cities that, taken together, have a total population of 100,000.
     B. is smaller than an MSA.
     C. is a large metropolitan statistical area–with over 1 million population.
     D. is the central city area of a large city.
     E. None of the above is true.

 

196. Identify the INCORRECT statement pertaining to Metropolitan Statistical Areas (MSAs).
     A. About 40 percent of all Americans live in the 20 largest CMSAs.
     B. MSAs are integrated economic and social units with large population nuclei.
     C. MSAs center on a city of 50,000 or more inhabitants and include bordering urban areas.
     D. MSAs with a population of below 50,000 inhabitants are called Consolidated Metropolitan Statistical Areas.
     E. The U.S. Census Bureau reports data by MSA.

 

 

197. The percentage of Americans who move each year.
     A. is less than 2 percent.
     B. is more than 50 percent.
     C. is about 12 percent.
     D. is about 36 percent.
     E. difficult to estimate because some people move within the same town.

 

198. About _____________ percent of the American population moves each year.
     A. five
     B. twenty
     C. twelve
     D. fifteen
     E. twenty-eight

 

199. Mobility has an important bearing on marketing planning. Approximately what percent of Americans move each year?
     A. 2 percent
     B. 12 percent
     C. 24 percent
     D. 36 percent
     E. 50 percent

 

200. Regarding U.S. population changes,
     A. about 12 percent of all Americans move each year.
     B. some of the areas with the largest populations are losing population.
     C. the overall U.S. population continues to grow rapidly.
     D. All of the above are true.
     E. Only A and B are true.

 

 

201. People who move to a new home (that is, “mobile” consumers):
     A. are not good targets for most products since buying a new house usually consumes most of their discretionary income.
     B. are split about 70 percent for “local” (same county) and 30 percent for long-distance moves.
     C. represent only about 5 percent of all Americans in any given year.
     D. create opportunities for marketers only when a long distance move is involved.
     E. All of the above are true.

 

202. U.S. “mobiles” (consumers who move):
     A. are not a very attractive market–since less than 2 percent of all Americans move each year.
     B. must make many market-oriented decisions fairly quickly after they move.
     C. tend to ignore “national” retailers.
     D. tend to restrict their purchases until they become very familiar with their new area.
     E. generally have less money to spend than other groups.

 

203. Regarding U. S. “mobiles” (people who move):
     A. Marketers should not concern themselves with local “mobiles,” who move within the same city or MSA, because they are not likely to need new goods or services.
     B. About half of all Americans move each year.
     C. Marketers try to locate “mobiles” and make them aware of market offerings before they make purchase decisions.
     D. All of the above.
     E. None of the above.

 

204. Which of the following observations about the population trends in the U.S. consumer market is CORRECT?
     A. About 25 percent of Americans move each year.
     B. Almost half of all moves are within the same county.
     C. Local moves are not very important to marketers – only long-distance moves.
     D. Retail chains and national brands have an advantage with mobile customers.
     E. Population shifts are permanent.

 

 

205. Over the last 60 years, the distribution of buying power in the United States has shifted:
     A. very little.
     B. only slightly, but the ongoing trend has been toward a larger percentage of people in the lower income levels.
     C. dramatically–with a much smaller “middle income” group and a much larger group living in poverty.
     D. dramatically–with many more consumers in the middle and upper income levels.

 

206. Regarding the distribution of U.S. family income,
     A. the U.S. income distribution is similar to that of Canada and Japan.
     B. the higher income groups still receive a big share of the total income.
     C. buying power has generally become more evenly distributed in the last 60 years.
     D. All of the above are true.
     E. B and C are true.

 

207. All of the following statements about the income distribution in the United States are correct except
     A. sixty years ago, most families were just over a subsistence level.
     B. by the 1970s, real income in the U.S. had risen.
     C. during the 1960s the growth in income slowed due to inflation.
     D. since 2000, median income has declined.
     E. real income growth has slowed.

 

208. ____ income is adjusted to take out the effects of inflation on purchasing power.
     A. Disposable
     B. Real
     C. Taxable
     D. Total
     E. Discretionary

 

 

209. With respect to income, government data indicate that:
     A. the top 5 percent get more than 40 percent of total income.
     B. the bottom 5 percent get about 20 percent of total income.
     C. the median income for U.S. families is about $50,000.
     D. there are only a few families in the United States with incomes over $75,000.
     E. None of the above is a true statement.

 

210. The 20 percent of U.S. families with the highest incomes receive:
     A. about the same total income as the next highest 20 percent.
     B. about twice as much income, on average, as the lowest 20 percent group.
     C. almost 80 percent of the total income.
     D. almost 50 percent of the total U.S. income.
     E. only about 20 percent of the total U.S. income.

 

211. About what percentage of TOTAL U.S. income goes to the 20 percent of families with the top incomes?
     A. About 75 percent
     B. About 95 percent
     C. About 15 percent
     D. About 25 percent
     E. About 50 percent

 

212. The percentage of U.S. families with incomes of $113,205 and over in 2008 received __________ percent of total income.
     A. about 50
     B. about 75
     C. 10-15
     D. about 25
     E. less than 5

 

 

213. The highest earners in the U.S., the top 20 percent income group, receives about ____ of total income earned in the U.S.
     A. 37%
     B. 48%
     C. 59%
     D. 70%
     E. 82%

 

214. In the United States, the __________ income group receives the smallest share of total income.
     A. lowest 20 percent
     B. second lowest 20 percent
     C. middle 20 percent
     D. second highest 20 percent
     E. highest 20 percent

 

215. Which of the following statements about income distribution in the United States in 2008 is NOT TRUE?
     A. Higher-income groups received a very small share of total income.
     B. The median income of families was about $61,521.
     C. The top 20 percent income group received almost 48 percent of the total income.
     D. Well-to-do families with incomes over $200,000 got over 20 percent of the total income.
     E. Almost 16 million families had less than $27,800 income.

 

216. The lowest 20 percent income group in the U.S.
     A. is not an attractive market for any commodities.
     B. may receive food stamps, Medicare, and public housing, which increases their buying power.
     C. is never a target of marketers.
     D. accounts for 20 percent of all families and receives 10 percent of total income.
     E. receives a surprisingly large share of total income.

 

 

217. The median family income in the U.S. in 2008 was about:
     A. $31,500
     B. $41,500
     C. $51,500
     D. $61,500
     E. $81,500

 

218. Disposable income
     A. is what is left after taxes.
     B. is the income adjusted to take out the effects of inflation.
     C. is the total income of a family.
     D. is the income after paying for necessities.
     E. is the same as per capita income.

 

219. “Disposable income” means:
     A. discretionary income.
     B. income before taxes.
     C. income less “necessity” expenditures.
     D. family income.
     E. income after taxes.

 

220. “Disposable income” means:
     A. a family’s income AFTER taxes.
     B. the amount a family spends on consumption.
     C. the amount a family has left to spend AFTER paying for necessities.
     D. a family’s income BEFORE taxes.
     E. the amount a family has left to spend AFTER taxes and savings.

 

221. Disposable income is defined as:
     A. total market value of goods and services produced.
     B. gross domestic product per capita.
     C. income available after taxes.
     D. income available before taxes.
     E. income available after taxes and necessities.

 

 

222. The amount of income a family has left after paying taxes is:
     A. Discretionary income.
     B. Personal income.
     C. Total income.
     D. Disposable income.
     E. Marginal income.

 

223. Misty Hancock is a sales rep for a computer producer. Her salary last year was $30,000, and she earned another $5,000 in sales commissions. She paid $6,000 in taxes, and spent $8,000 on food, housing, a car, and other “necessities.” What is Misty’s disposable income?
     A. $29,000
     B. $34,000
     C. $15,000
     D. $24,000
     E. $8,000

 

224. A young working couple earned $55,000 last year. They paid $16,000 in taxes and $20,000 in rent, food, insurance and other necessities. What was their disposable income for the year?
     A. $39,000.
     B. $55,000.
     C. $30,000.
     D. $35,000.
     E. $19,000.

 

225. A young working couple earned $35,000 last year, and paid $10,000 in taxes. They spent $13,000 on rent, food, insurance, and other “necessities.” What is their disposable income?
     A. $12,000
     B. $35,000
     C. $22,000
     D. $25,000
     E. There is not enough information to tell.

 

 

226. Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent, medical expenses and other “necessities.” There was little construction work in February, so he took a trip to the Caribbean and spent $4,000. What was Keith’s disposable income last year?
     A. $4,000
     B. $20,000
     C. $10,000
     D. $12,000
     E. There is not enough information to tell.

 

227. As the owner of a women’s clothing store, Caroline Lipscomb has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Caroline’s disposable income last year?
     A. $45,000.
     B. $75,000.
     C. $26,000.
     D. $28,000.
     E. $24,000.

 

228. Discretionary income is defined as:
     A. total market value of goods and services produced.
     B. gross domestic product per capita.
     C. income available after taxes.
     D. income available before taxes.
     E. income available after taxes and necessities.

 

229. “Discretionary income:”
     A. is a family’s income AFTER taxes.
     B. is a measure of a family’s total purchasing power.
     C. is the amount of income spent on durable goods.
     D. is a family’s income AFTER paying taxes and paying for necessities.
     E. both B and C are true.

 

 

230. The amount of disposable income a family has left after paying for its necessities is called its ______________ income.
     A. personal
     B. discretionary
     C. marginal
     D. disposable
     E. modified

 

231. The amount of disposable income a family has left after paying for its “necessities” is called its ______________ income.
     A. discretionary
     B. family
     C. marginal
     D. personal
     E. taxable

 

232. What is left of disposable income after paying for necessities?
     A. Net income.
     B. Real income.
     C. Deductible income.
     D. Gross income.
     E. Discretionary income.

 

233. The amount of income a family has left after paying taxes and paying for necessities is called its _____________ income.
     A. personal
     B. discretionary
     C. marginal
     D. family
     E. adjusted

 

 

234. The amount of income a family has left after paying taxes and paying for its necessities is called its _____________ income.
     A. discretionary
     B. family
     C. marginal
     D. personal
     E. modified

 

235. Discretionary income
     A. is the income from investments.
     B. is the income adjusted to take out the effects of inflation.
     C. is that part of disposable income which is not spent.
     D. is an elusive concept because the definition of necessities varies from family to family and over time.
     E. of the majority of U.S. families is enough to afford the lifestyles they see on TV and in other mass media.

 

236. A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was:
     A. $35,000.
     B. $50,000.
     C. $19,000.
     D. $34,000.
     E. $15,000.

 

237. Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginny’s discretionary income will increase, which of the following products is MOST likely to benefit?
     A. Furnace repairs.
     B. Automobile insurance.
     C. A CD stereo system.
     D. Medical services.
     E. Grocery staples.

 

 

238. As the owner of a Bluetooth specialties store, Alicia Fountainbleau has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janerio. What was Alicia’s discretionary income last year?
     A. $20,000.
     B. $4,000.
     C. $42,000.
     D. $26,000.
     E. $50,000.

 

239. Bart Thunderheart has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other “necessities.” Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Bart’s discretionary income last year?
     A. $20,000
     B. $5,000
     C. $35,000
     D. $30,000
     E. $50,000

 

240. Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other “necessities.” Manuel’s discretionary income was:
     A. $28,000
     B. $13,000
     C. $23,000
     D. $18,000
     E. There is not enough information to tell.

 

 

241. Kira Johannson’s salary as a sales rep was reduced to $32,000 last year, but she earned an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering other necessities such as food, housing, and transportation amounted to $11,000. Kira’s discretionary income last year was:
     A. $17,000.
     B. $11,000.
     C. $32,000.
     D. $28,000.
     E. $42,000.

 

242. Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in taxes, and another $25,000 on food, housing and other necessities. Alberto’s disposable income was ________________ and his discretionary income was _________________.
     A. $75,000; $65,000
     B. $90,000; $65,000
     C. $65,000; $65,000
     D. $75,000; $75,000
     E. $90,000; $75,000

 

243. Which of the following dimensions affect family spending?
     A. income
     B. age of children
     C. age
     D. marital status
     E. all of the above

 

244. In the U.S., about ______ million grandparents live with their grandchildren.
     A. 4
     B. 6
     C. 8
     D. 10
     E. 12

 

 

245. Which of the following U.S. household structures has the largest percentage of population?
     A. Married couples with children
     B. Single parents with children
     C. Singles living alone
     D. Married couples with no children
     E. Non-married couples with no children

 

246. About ______ percent of U.S. households are families headed by a single woman.
     A. 10
     B. 12
     C. 14
     D. 16
     E. 18

 

247. About what percentage of babies in the U.S. are born to a single parent?
     A. 10 percent
     B. 20 percent
     C. 30 percent
     D. 40 percent
     E. 50 percent

 

248. About ______ percent of U.S. adults are married today.
     A. 40
     B. 50
     C. 60
     D. 70
     E. 80

 

 

249. Which of the following is NOT a stage in the TRADITIONAL flow of the family life cycle?
     A. Young single
     B. Young married without children
     C. Young divorced with children
     D. Middle-aged married without dependent children
     E. Young married with children

 

250. The traditional family flow, according to the family life cycle, does not include people who are
     A. middle-aged divorced without dependent children.
     B. young married with children.
     C. middle-aged married with children.
     D. middle-aged married without dependent children.
     E. young married without children.

 

251. Single-adult households account for ______________ percent of all households in the United States.
     A. 47
     B. 57
     C. 37
     D. 17
     E. 27

 

252. Which of the following statements about single-adult households in the U.S. is FALSE?
     A. Single-adult households account for 27 percent of all households.
     B. The percentage of single-adult households among all households is in decline.
     C. In New York and Washington, D.C., single adult-households exceed 40 percent of all households.
     D. Single-adult households include almost 33 million people.
     E. In general, single-adult households need smaller apartments, smaller cars, and smaller food packages.

 

 

253. Which of the following statements about the household composition in the U.S. is FALSE?
     A. The “typical” American household is, a married couple with two children—living in the suburbs.
     B. Only 22 percent of households consist of a husband, wife, and children under 18.
     C. About 28 percent of households involve married couples, but ones without children living at home.
     D. More than 12 percent of U.S. households are now families headed by a single woman.
     E. At any given time only about 60 percent of all adults are married.

 

254. Which of the following statements about U.S. consumer households is true?
     A. Married couples with no children 18 or younger account for half of all U.S. households.
     B. The typical American household is a married couple living in the suburbs with two children.
     C. The number of families living “on the farm” has dropped to an all time low of 15 percent.
     D. About two thirds of all adults are now single.
     E. None of the above is true.

 

255. Which of the following statements about U.S. consumer households is true?
     A. The U.S. has the highest divorce rate in the world.
     B. The typical American household is a married couple with two children living in the suburbs.
     C. One-half of all households in the U.S. are made up of married couples with no children under 18 years of age.
     D. Only one-fourth of all adults are married.
     E. Single-adult households make up 50 percent of all U.S. households.

 

256. Which of the following statements about U.S. consumer households is true?
     A. About 2 out of every 3 marriages ends in divorce–and at any given time only about 40 percent of all adults are married.
     B. More than half of all U.S. households consist of married couples with no children 18 or younger living at home.
     C. Single-adults account for nearly 40 percent of all households.
     D. Americans are marrying younger, but delaying child bearing compared to the older generation.
     E. None of the above is true.

 

 

257. Which of the following statements about U. S. household composition is False?
     A. Americans are marrying later in life than they used to.
     B. Most American households consist of a husband, wife and children under 18.
     C. Most divorced people marry again.
     D. The number of single-adult households is increasing.
     E. The United States has the highest divorce rate in the world.

 

258. The composition of U.S. households is such that:
     A. the number of unmarried couples living together has sharply declined.
     B. married couples with no children under 18 now account for one-half of all households.
     C. single-adult households account for 27 percent of all households.
     D. only about one-third of all adults are married.
     E. 75 percent of all marriages end in divorce.

 

259. Which of the following statements about U.S. consumer households is true?
     A. More than 80 percent of all households in the U.S. are made up of married couples with no children under 18 years of age.
     B. The divorce rate is about 50 percent, and the majority of divorced people stay single.
     C. Americans are marrying younger, but delaying child bearing.
     D. Single-adult households account for over one-fourth of all households.
     E. All of the above are true.

 

260. Which of the following statements is true?
     A. Divorced families usually have more discretionary income than traditional families.
     B. Singles and young couples are more willing to try new products.
     C. Empty nesters are frequently big spenders.
     D. B and C are true statements, but not A.
     E. All of the above are true statements.

 

 

261. Of the following, which are the most receptive to new products and new brands?
     A. Families with small children.
     B. Older people with no children.
     C. Families with teenagers.
     D. Families whose children are grown.
     E. Younger people with no children.

 

262. Of the following, which are the most receptive to new products and new brands?
     A. Young people
     B. Senior citizens
     C. Empty-nesters
     D. Middle-aged people
     E. All are equally receptive.

 

263. Regarding the family life cycle, singles and younger couples without children
     A. are more willing to try new products and brands.
     B. tend to be carefree shoppers who are not very price-conscious.
     C. often wait to buy basic durable goods until they have children.
     D. feel more financially squeezed than couples with young children.
     E. All of the above are true.

 

264. Ted and Amy Balderas were married last year, at age 24. They have no children and both are currently working hard to build their careers. Couples like Ted and Amy:
     A. are likely to be a poor target for firms that are trying to market a new brand or new product concept.
     B. usually focus on buying durables–such as furniture and appliances.
     C. usually don’t spend money on discretionary purchases.
     D. All of the above are true.
     E. None of the above is true.

 

 

265. Identify the INCORRECT statement about the effect of marital status, age, and the age of any children in the family, on how people spend their income.
     A. Singles and young couples are more willing than older married people to try new products and brands.
     B. Younger people usually earn more than older consumers, but spend less on discretionary items.
     C. Only as children arrive and grow does family spending shift to soft goods and services.
     D. People in the age group of 35-49 often make more purchases on credit.
     E. People in the age group of 35-49 save less of their income.

 

266. Teenagers:
     A. Have no influence on the buying behavior of their parents.
     B. Are not an attractive market because they do not spend much money.
     C. Have become a target for many firms.
     D. Have essentially the same buying habits as they had before reaching their teen years.
     E. None of the above.

 

267. American teenagers
     A. are not interested in expensive clothes.
     B. are not involved in shopping.
     C. currently spend $200 billion a year.
     D. develop recreation and education needs that are easy on the family budget.
     E. do not influence family purchases.

 

268. U.S. teenagers spend about ______ billion per year.
     A. $100
     B. $150
     C. $200
     D. $250
     E. $300

 

 

269. “Empty nesters”:
     A. are senior citizens.
     B. are people over 65 who live alone.
     C. often have high incomes and fewer required expenses.
     D. are singles and couples without children–who have much discretionary income.
     E. None of the above is true.

 

270. Empty nesters
     A. are usually in the 30-44 age group.
     B. are not an attractive market for any items.
     C. spend a larger percent of their income on housing, child care, and other necessities.
     D. are people whose children are grown and who are now able to spend their money in other ways.
     E. disrupt the family life-cycle pattern.

 

271. HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums–and HomeFront changed its focus. The change in demand could be explained by:
     A. the increasing number of senior citizens who are “empty-nesters.”
     B. the fact that consumers in urban areas generally have higher incomes.
     C. the increasing number of 45-64 year olds whose children are grown.
     D. the increase in the number of single-adult households.
     E. All of the above are likely causes.

 

272. Senior citizens:
     A. Are defined as people over age 50.
     B. Are a market that is shrinking.
     C. Are more prosperous than ever before.
     D. Have the same needs as younger consumers.
     E. None of the above.

 

 

273. Senior citizens
     A. mostly have incomes below the poverty level.
     B. are essentially all the same.
     C. do not have money to spend.
     D. have different needs and require different marketing strategies.
     E. are a market that is shrinking.

 

274. About ______ percent of U.S. senior citizens (age 65+) live below the poverty level.
     A. 8
     B. 10
     C. 12
     D. 14
     E. 16

 

275. Identify the INCORRECT statement pertaining to senior citizens.
     A. Senior citizens are people over age 65.
     B. The number of senior citizens is increasing rapidly.
     C. Senior citizens’ income is often lower than in their peak earning years.
     D. Older people are not all the same.
     E. A higher percentage of senior citizens are considered “poor” than the percentage for all adults.

 

276. Antonio Marko just started a business called “Seasoned Support” that provides a number of services–from house and lawn care to grocery shopping–for the elderly. Antonio is apparently
     A. unaware of the lack of success experienced by most other companies that have tried to target this market.
     B. doomed to failure, since older consumers do not need such services.
     C. unaware that very few people who are over 65 have enough money to pay for such services.
     D. targeting the increasing number of older consumers who now have higher incomes than in the past.
     E. None of the above is a good answer.

 

 

277. People from different ethnic groups
     A. create challenges and not opportunities for marketers.
     B. do not play an important role in the American marketplace.
     C. may be influenced by very different cultural variables.
     D. have common needs.
     E. have similar ways of thinking.

 

278. About ______ percent of U.S. families speak a language other than English in their homes.
     A. 10
     B. 15
     C. 20
     D. 25
     E. 30

 

279. In Los Angeles, California, about ______ percent of the people speak a language other than English.
     A. 30
     B. 40
     C. 50
     D. 60
     E. 70

 

280. About ______ percent of the U.S. population is African American.
     A. 9
     B. 11
     C. 13
     D. 15
     E. 17

 

 

281. The ethnic composition of a market can be important to marketing managers because
     A. treating all members of an ethnic group as one target market is often misleading.
     B. about 1 out of 5 families speaks a language other than English at home.
     C. the geographic distribution of ethnic groups varies across the country.
     D. All of the above are true.
     E. None of the above is true.

 

282. Which of the following is NOT an accurate statement about ethnic groups in the United States?
     A. People from different ethnic groups may be influenced by different cultural variables.
     B. 1 out of 5 families speaks a language other than English at home.
     C. African-Americans outnumber Hispanics in the U.S. by two to one.
     D. Ethnic groups are growing at a faster rate than the population as a whole.
     E. Already, more than 41 percent of American children are African American, Hispanic, or Asian.

 

283. Which of the following observations regarding ethnic shifts in the American market is FALSE?
     A. More than 41 percent of American children are already African American, Hispanic, or Asian.
     B. The buying power of ethnic submarkets is increasing rapidly.
     C. Whites are not expected to become a majority until 2050.
     D. Companies will need separate strategies for each ethnically or racially defined market.
     E. Estimates indicate that in 2010 Asian Americans spent over $500 billion a year.

 

284. Which of the following statements about ethnic dimensions of the U. S. market is True?
     A. Ethnic groups buy differently and have different needs.
     B. Many firms make the mistake of treating all consumers in an ethnic group as homogeneous.
     C. The number of ethnic consumers is growing at a faster rate than the overall society.
     D. The buying power of ethnic submarkets is increasing rapidly.
     E. All of the above are true.

 

 

285. Which of the following statements about ethnic groups in the U.S. is FALSE?
     A. The birthrates of Hispanics, African Americans, and Asian Americans are all higher than that of whites.
     B. Hispanics are the largest minority group.
     C. The median ages of Hispanics, African Americans, and Asian Americans are all lower than that of whites.
     D. Asian Americans have the highest median family income.
     E. Already, more than 75 percent of American children are Hispanic, African American, or Asian American.

 

286. Ethnic markets are becoming more important to marketers because
     A. whites are not expected to become a majority until 2050.
     B. the median age of Asian Americans, African Americans, and Hispanics is much higher than that of whites.
     C. the number of ethnic consumers is growing at a much faster rate than the overall society.
     D. they make a clear segment with similar backgrounds and common language, religion, and culture.
     E. the birthrate of Asian Americans, African Americans, and Hispanics is lower than that of whites.

 

287. Which of the following statements by marketing managers is NOT logical and true?
     A. “We are planning to appeal more to Hispanic consumers, since this group has surged and is now over 15 percent of the population.”
     B. “We’re building supermarkets that will appeal to Hispanic consumers; it’s a big investment, but the Hispanic population in the U.S. spends nearly $1 trillion a year.”
     C. “We are adapting our diaper promotion to target African American and Hispanic parents, since the birthrate in those groups is higher than for whites.”
     D. “We will target Asian Americans in California, New York, and Texas since over half of their population in the U.S. is concentrated in those three states.”
     E. “We are going to appeal to the African American group because it is a large, homogeneous target market.”

 

 

288. Which of the following statements pertaining to the Hispanic Americans is FALSE?
     A. Hispanic Americans are the largest and fastest-growing ethnic group.
     B. In 2010, the Hispanic population made up 16 percent of the total population.
     C. The Hispanic population tends to be older than the U.S. population as a whole.
     D. In 2010, the Hispanic population in the U.S. was over 47 percent greater than the population of Canada.
     E. Recently the Hispanic American population has increased at a rate of about 1 million per year.

 

289. The largest and fastest growing ethnic minority group in the United States is composed of:
     A. African Americans.
     B. Asian Americans.
     C. Native Americans.
     D. Polish Americans.
     E. Hispanics.

 

290. Compared to U.S. averages, the median age of Hispanic Americans is:
     A. slightly higher.
     B. much higher.
     C. much lower.
     D. about the same.

 

291. Compared to U.S. averages, the birthrate of Hispanic Americans is:
     A. slightly lower.
     B. much lower.
     C. higher.
     D. about the same.

 

 

292. Identify the INCORRECT observation about Asian Americans.
     A. Asian Americans are the largest and fastest-growing ethnic group in the United States.
     B. The number of Asian Americans has more than tripled since 1980.
     C. Asian Americans have the highest median family income of the major ethnic groups.
     D. In 2010 they spent over $500 billion a year.
     E. Because of their income, a lot of companies are targeting these consumers.

 

293. Which of the following statements about ethnic differences in the U.S. is FALSE?
     A. About 1 out of 5 families speaks a language other than English at home.
     B. Brand preferences vary for some ethnic groups.
     C. Differences in attitudes, experiences, and values come together to shape differences in buying behavior.
     D. The Asian American market has grown fast and now exceeds the Hispanic market in size.
     E. In Los Angeles and San Jose, California, almost 60 percent speak another language.

 

 

Chapter 05 Demographic Dimensions of Global Consumer Markets Answer Key
 

True / False Questions

1. (p. 118)The goal of target marketers is to develop unique marketing strategies that find unsatisfied customers to whom they can then offer superior value through more attractive marketing mixes.
   TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

2. (p. 120-121)The U.S. does not have the largest population of any country in the world, but it does have the largest population growth rate.
   FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

 

3. (p. 120,128)The U.S. population is over 310 million people and the world population is almost 7 billion people.
   TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

4. (p. 120)Nearly 90 percent of today’s 1.2 billion youth is in developing countries.
   TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

5. (p. 120)India has more people than the United States, and China has more people than India.
   TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

6. (p. 120)Less-developed countries usually experience the slowest population growth.
   FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

7. (p. 121-123)In the United Kingdom, Iceland, Australia, Israel, and Singapore, for example, less than 20 percent of people live in urban areas.
   FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

8. (p. 121)The worldwide trend toward urbanization has prompted increased interest in international markets.
   TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

9. (p. 121)When considering international markets, income is often one of the most important demographic dimensions.
   TRUE

 

AACSB: Analytic
AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

10. (p. 121)When considering international markets, income is usually not an important demographic dimension.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

11. (p. 121,124)Both GDP and GNI are widely used measures of national income.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

12. (p. 121)Gross domestic product is the total dollar value of a country’s exports during a one year period.
    FALSE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

13. (p. 124)Gross domestic product includes foreign income earned in a country.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

14. (p. 124)GNI is the total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

15. (p. 124)GDP income measures can give the impression that people in less-developed nations have more income than they really do.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

16. (p. 124)GNI income measures can give the impression that people in less-developed nations have less income than they really do.
    FALSE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

17. (p. 124)Generally the nations with the fastest growth in GDP are not the nations with the largest GDPs.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

18. (p. 124)The fastest rate of growth in GDP is occurring in the nations with the largest current GDP.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

19. (p. 124)Even though the more developed industrial nations don’t have the largest populations, they do have the biggest share of the world’s GDP.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

20. (p. 124)Countries where gross national income (GNI) per capita is low do not offer any opportunities for marketers.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

21. (p. 124)Much of the world’s population lives in extreme poverty.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

22. (p. 126)Because almost all of the world’s population can read and write, international marketers have no problems in communicating with potential customers no matter where they live.
    FALSE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

23. (p. 126)Adoption of the Internet and cell phones is having its greatest impact in developing countries, but the adoption rates of these technologies still lags behind those in other parts of the world.
    TRUE

 

AACSB: Technology
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

24. (p. 127)The World Factbook gives facts and statistics on each country in the world, and is prepared by the CIA for the exclusive use of U.S. government officials.
    FALSE

 

AACSB: Analytic
AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

25. (p. 127)California is the state with the largest population, and Texas is a distant second.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

26. (p. 127)New York is the state with the largest population, and California is a distant second.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

27. (p. 128)Population figures for a single year don’t show the dynamic aspects of markets.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

28. (p. 128)There are over 310 million people living in the United States.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

29. (p. 127-128)In the United States, the West and the South are growing faster than the Northeast and the North Central areas.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

30. (p. 128)Areas with small populations may still be attractive target markets for some firms–because there may be less competition.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

31. (p. 129)The rate of growth of the U.S.’s population is lower than the rate of growth of some other countries’ population.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

32. (p. 129)Most of the U.S.’s future population growth is expected to come from immigration.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

33. (p. 128)The birthrate has been steadily increasing for nearly 65 years–and that trend is called the “baby boom.”
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

34. (p. 129)In 1980, the median age of the U.S. population was 37.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

35. (p. 129)The median age in the United States increased from 30 in 1980 to 37 in 2010.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

36. (p. 129)The average age of the U. S. population will continue to rise for many years because of the post-World War II “baby boom.”
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

37. (p. 130)Gen X’s smaller size (compared to the baby boomer group) is a result of the baby bust.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

38. (p. 130)For the first time, women in the Gen Y group were more highly educated than men.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

39. (p. 131)Gen Y is the result of the echo boom and its members are more techno-savvy than any other group.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

40. (p. 131)In the U.S., less than two percent of the population lives in rural areas on farms.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

41. (p. 132)A Metropolitan Statistical Area is an integrated economic and social unit with a large population at the center.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

42. (p. 132)The Metropolitan Statistical Area is an integrated economic and social unit with a large population nucleus.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

43. (p. 132)A Metropolitan Statistical Area usually has a population of at least 50,000 people.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

44. (p. 132)A Metropolitan Statistical Area (MSA) usually has less than 50,000 inhabitants.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

45. (p. 132)MSAs with a population of less than 50,000 are called Consolidated Metropolitan Statistical Areas.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

46. (p. 132)Competition for consumer dollars is usually greater inside an MSA than outside an MSA.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

47. (p. 133)Americans are not very mobile–less than 2 percent of all Americans move each year.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

48. (p. 133)About 30 percent of those who move each year are relocating to a new county.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

49. (p. 133)Compared to 60 years ago, fewer American families are now in the middle and upper income levels.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

50. (p. 135)Higher-income groups in the U.S. no longer receive a very large share of the total income.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

51. (p. 135)Higher-income groups in the United States receive a very large share of total income.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

52. (p. 135)The median income of U.S. families in 2008 was about $61,521.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

53. (p. 135)The top 20 percent income group in the U. S. receives almost 80 percent of the total income.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

54. (p. 135)In 2008, over 40 percent of U.S. families received more than $113,205 income.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

55. (p. 135)In 2008, only 20 percent of U.S. families received more than $113,205 income.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

56. (p. 135)In 2008, 40 percent of U.S. families received less than $49,325 income.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

57. (p. 135)Only about 5 percent of families in the U.S. have incomes over $200,000, but these families get more than 20 percent of the total income.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

58. (p. 135)The lowest 20 percent income group in the U.S. receives less than 5 percent of the country’s total income.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

59. (p. 135)It’s not unusual for a college graduate to start out earning as much as the median family income.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

60. (p. 136)Disposable income is what is left after taxes.
    TRUE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

61. (p. 136)Discretionary income is what is left after paying taxes.
    FALSE

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

62. (p. 136)Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

63. (p. 137)Marital status, age, and the age of any children in a household are the three demographic dimensions that determine stage of family life cycle.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

64. (p. 137)Stage of family life cycle is usually determined by two demographic dimensions–income and number of children.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

65. (p. 137)Over 6 million couples now live together without getting married and many of them raise families.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

66. (p. 137)About 10 million grandparents now live with their grandchildren.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

67. (p. 137)The typical American household consists of a couple with two children living at home.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

68. (p. 137)The “typical” American household can be seen as a married couple with two children, living in the suburbs.
    FALSE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

69. (p. 137)In the U.S., traditional households are growing at a much higher rate than nontraditional households.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

70. (p. 137)In the U.S., single-adult households account for over one-fourth of all households.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

71. (p. 137)In the U.S., single-adult households account for nearly two thirds of all households.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

72. (p. 138)Less than a fourth of all U.S. households consist of a husband, wife, and children under 18.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

73. (p. 138)About 85 percent of all Americans do eventually marry–even though they marry later, delay child bearing, and have fewer children.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

74. (p. 138)The United States has the highest divorce rate in the world.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

75. (p. 138)In the U.S., about 80 percent of all divorced people remarry.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

76. (p. 138)In the U.S., about 60 percent of all adults are married.
    TRUE

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

77. (p. 138)Singles and young couples seem less willing to try new products because they earn less.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

78. (p. 138)Younger families with no children are a good market for durable goods such as automobiles and furniture.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

79. (p. 138)Older people seem to be more open to new products and brands than younger people.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

80. (p. 138)Families with teenagers tend to spend more on durables than younger families.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

81. (p. 138)Teens play an increasingly minor role in shaping family purchases.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

82. (p. 138)“Empty nesters” are people whose children are grown and who are now able to spend their money in other ways.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

83. (p. 138)“Empty nesters” is a term that refers to young couples with no children.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

84. (p. 139)Senior citizens may be an attractive target market because they have lower poverty rates than the figure for all adults.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

85. (p. 140)About 1 out of 5 families in the U.S. speaks a language other than English at home.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

86. (p. 140)In the U.S., ethnic submarkets are growing at a faster rate than the overall population.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

87. (p. 140-141)Both the birthrate and the buying power of ethnic groups in the U.S. are increasing.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

88. (p. 140-141)In ethnic markets within the U.S., the median age is higher and the birthrate is lower than the overall population.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

89. (p. 141)The Hispanic population in the U.S. is already larger than the Black population.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

90. (p. 141)Hispanic Americans are now the largest AND fastest-growing ethnic group in the U.S.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

91. (p. 141)Asian Americans are the largest and fastest-growing ethnic group in the United States.
    FALSE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

92. (p. 141)Of all the major ethnic groups in the U.S., Asian Americans have the highest median family income.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

93. (p. 141)Asian Americans have the highest median family income of the major ethnic groups.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

94. (p. 141)In 2010, the buying power of Hispanics and African Americans each reached nearly $1 trillion a year.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

95. (p. 141)Already, more than 41 percent of American children are African American, Hispanic, or Asian.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

96. (p. 141)By 2015, whites will account for fewer than half of births in the U.S.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

97. (p. 141)In the 10 largest cities in the U.S., no racial or ethnic group has a majority.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

98. (p. 141)In the U.S., whites are expected to become a minority by mid-century.
    TRUE

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

Multiple Choice Questions

99. (p. 118)When considering a potential product-market, a marketer should decide:
    A. where it is.
    B. what its relevant segmenting dimensions are.
    C. how big it is.
    D. All of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

100. (p. 118)In analyzing a potential market, the LEAST RELEVANT question for a marketing manager to answer is:
     A. how big is the market?
     B. what is the average age in the market?
     C. where is the market?
     D. what are the market’s relevant segmenting dimensions?

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

101. (p. 118)Which of the following is an important question that marketers need to answer about any potential market?
     A. How big is it?
     B. Where is it?
     C. What are its relevant segmenting dimensions?
     D. All of the above are important questions.
     E. None of the above are important questions.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

102. (p. 118)When looking at demographic dimensions, marketers should:
     A. know that it is illegal to segment markets based on membership in some racial or ethnic group.
     B. know that demographics are especially helpful in explaining why specific people buy specific brands.
     C. recognize that demographics can be very useful for estimating the market potential of possible target markets.
     D. understand that ethnic groups are generally homogeneous within.
     E. All of the above are correct.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

103. (p. 118)Analysis of demographic dimensions:
     A. is the most important step to successful segmentation.
     B. considers income and sex, but not age.
     C. is the most effective way to identify unmet consumer needs.
     D. can be used along with analysis of other dimensions to identify attractive target markets.
     E. none of the above.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

104. (p. 119)Information on demographic dimensions
     A. even if “partly true,” is good enough to make marketing strategy decisions.
     B. of consumer markets around the world is not available.
     C. is chargeable—if available—because it is collected by private organizations.
     D. makes valid data available to managers.
     E. helps managers make decisions based on guesses.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

105. (p. 120-121)According to projections, the population of _____ is likely to grow by 15 percent between 2010 and 2025.
     A. Japan
     B. Russia
     C. United States
     D. Uganda
     E. India

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

106. (p. 120)Which of the following observations about population trends is incorrect?
     A. Between 1950 and 2000, world population doubled.
     B. Today, the population growth is about 1.2 percent per year.
     C. U.S. population makes up more than 10 percent of total world population.
     D. Over the long term population growth is expected in most countries.
     E. Less-developed countries experience the fastest population growth rates.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

107. (p. 121)Which of the following statements about world population trends is True?
     A. In general, countries that have higher stages of development experience faster rates of growth than less-developed countries.
     B. The extent to which a country’s population is clustered around urban areas does not vary much from country to country.
     C. People are moving off the farm and into industrial and urban areas.
     D. The trend toward urbanization has made companies less interested in international markets.
     E. All of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

108. (p. 120-121)Which of the following statements is/are true?
     A. The United States makes up less than 5 percent of the total world population.
     B. In general less-developed countries experience a faster rate of population growth than developed countries.
     C. There is a worldwide trend toward urbanization.
     D. The world population is now almost 7 billion people.
     E. All of the above are true.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

109. (p. 120-123)Regarding population growth in the world,
     A. population growth in Japan and Europe is even slower than in the U.S.
     B. less-developed countries generally experience the fastest growth.
     C. the populations of Madagascar and Somalia will likely increase by more than 50 percent between 2010 and 2025 while the populations of the U.S. and Canada will grow by less than 20 percent.
     D. All of the above are true.
     E. None of the above are true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

110. (p. 120-123)The greatest growth in the world’s population over the next several years will come from:
     A. Western Europe.
     B. Middle East and Far East.
     C. Australia.
     D. Eastern Europe.
     E. Russia and nations of the former Soviet bloc.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

111. (p. 120)Which of the following countries has the fastest projected population growth between 2010 and 2025?
     A. United Kingdom
     B. Canada
     C. Germany
     D. United States
     E. Uganda

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

112. (p. 122-123)Which of the following countries is likely to see a population decline from 2010-2025?
     A. Germany
     B. Iceland
     C. United States
     D. United Kingdom
     E. China

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

113. (p. 121)Identify the incorrect statement about population density and shifts in population.
     A. Population density is important to marketers.
     B. In Ethiopia, Nepal, and Uganda more than 85 percent of people live in urban areas.
     C. People everywhere are moving from rural areas to urban areas.
     D. Population is very spread out in many of the African countries.
     E. India’s population is almost 1.2 billion and is getting larger.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

114. (p. 121-123)Regarding population density in the world,
     A. high-population density occurs only in highly developed economies.
     B. some Western European and Asian urban areas are more crowded than U.S. urban areas.
     C. the United States is the only country with crowded urban areas.
     D. there is a worldwide movement back to rural areas.
     E. None of the above is true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

115. (p. 121-123)Which of the following countries has the highest population density?
     A. Switzerland
     B. United States
     C. Australia
     D. Singapore
     E. Bangladesh

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

116. (p. 121-123)In 2009, 100 percent of this country’s population was in urban areas.
     A. United States
     B. Singapore
     C. United Kingdom
     D. Germany
     E. Italy

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

117. (p. 121)The total market value of goods and services provided in a country’s economy per year by both residents and nonresidents of that country is:
     A. Gross domestic product.
     B. Gross national product.
     C. Gross national income.
     D. Gross domestic income.
     E. Gross disposable income

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

118. (p. 121)____ refers to the total market value of all goods and services provided in a country’s economy in a year by both residents and nonresidents of that country.
     A. Gross output
     B. Gross investment
     C. Gross national income
     D. Gross fixed capital formation
     E. Gross domestic product

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

119. (p. 121)Gross domestic product (GDP) is the:
     A. total cost of producing all goods and services sold in a year.
     B. total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country.
     C. total market value of goods (but not services) consumed in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. total market value of goods (but not services) produced in an economy in a year.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

120. (p. 121)Gross domestic product (GDP) is the:
     A. total market value of goods and services provided in an economy in a year by both residents and nonresidents of that country.
     B. manufacturers’ selling price of goods (but not services) produced in a year.
     C. total market value of goods (but not services) produced in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. None of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

121. (p. 121)Gross domestic product:
     A. is the total market value of goods, but not services, produced in a year.
     B. is an excellent basis for comparing consumer well-being across different cultures and economies.
     C. is a widely used measure of income for different countries.
     D. All of the above are true.
     E. A and B are true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

122. (p. 121)A widely used measure of income in most countries is:
     A. gross domestic product.
     B. total consumption expenditures.
     C. disposable personal product.
     D. population times GDP.
     E. socio-economic product.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

123. (p. 121,124)Gross domestic product (GDP):
     A. is affected by economic conditions and the productivity of workers in the country.
     B. usually rises when there are bad economic conditions in an economy.
     C. is the amount of new capital invested in business in a year.
     D. is the total cost of producing all goods and services in a year.
     E. is the total market value of goods and services consumed in an economy in a year.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

124. (p. 124)Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:
     A. GDP measures show people’s tendency to buy particular products.
     B. income tends to be evenly distributed among consumers in most countries.
     C. GDP estimates may not be very accurate for very different cultures and economies.
     D. GDP measures show the degree of competition in a market.
     E. All of the above are true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

125. (p. 121,124)Regarding gross domestic product (GDP) and gross national income (GNI):
     A. GDP income measures can give the impression that people in less-developed nations have more income than they really do.
     B. GDP includes foreign income earned in a country, but GNI does not.
     C. Both GDP and GNI are widely used measures of national income.
     D. All of the above are true.
     E. A and B are true, but not C.

 

AACSB: Analytic
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

126. (p. 121,124)Gross national income (GNI) is the:
     A. total cost of producing all goods and services sold in a year.
     B. total market value of goods and services provided in an economy in a year by residents of that country.
     C. total market value of goods (but not services) consumed in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. total market value of goods (but not services) produced in an economy in a year.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

127. (p. 121,124)Gross national income (GNI) is the:
     A. total market value of goods and services provided in an economy in a year by residents of that country.
     B. manufacturers’ selling price of goods (but not services) produced in a year.
     C. total market value of goods (but not services) produced in an economy in a year.
     D. total market value of goods and services consumed in a year.
     E. None of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

128. (p. 121,124)Gross national income:
     A. is the total market value of goods, but not services, produced in a year.
     B. is an excellent basis for comparing consumer well-being across different cultures and economies.
     C. is a widely used measure of income for different countries.
     D. All of the above are true.
     E. A and B are true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

129. (p. 121,124)A widely used measure of income in most countries is:
     A. gross national income.
     B. total consumption expenditures.
     C. disposable personal product.
     D. population times GNI.
     E. socio-economic product.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

130. (p. 121,124)Gross national income (GNI):
     A. is affected by economic conditions and the productivity of workers in the country.
     B. usually rises when there are bad economic conditions in an economy.
     C. is the amount of new capital invested in business in a year.
     D. is the total cost of producing all goods and services in a year.
     E. is the total market value of goods and services consumed in an economy in a year.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

131. (p. 124)Unlike the GDP, the GNI
     A. includes foreign income.
     B. is the total market value of all goods and services provided in a country’s economy in a year by nonresidents.
     C. includes the income earned by residents who do not own resources in that nation.
     D. does not include income earned by foreigners who own resources in that nation.
     E. is a measure of regional income.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

132. (p. 124)If American firm Boeing sets up a factory in China, then the GDP figure for China _____ include those profits and the GNI ______.
     A. would; would as well
     B. would; would not
     C. would not; also would not
     D. would not; would
     E. would; would only measure actual sales

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

133. (p. 124)Identify the incorrect statement pertaining to the GNI per capita.
     A. The GNI per capita in the United States is the highest in the world.
     B. The GNI per capita is quite high in the United States, Japan, and Germany.
     C. The GNI per capita gives some idea of the income level of people in the country.
     D. Many managers see great potential in countries where GNI per capita is low.
     E. Managers see less competition where GNI per capita is low.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

134. (p. 124)Which of the following observations concerning different measures of national income is TRUE?
     A. GDP does not include income earned by foreigners who own resources in that nation.
     B. Using GNI can give the impression that people in less-developed countries have more income than they really do.
     C. GNI per capita is a useful figure because it gives some idea of the income level of people in the country.
     D. The less-developed nations account for the biggest share of the world’s GDP.
     E. GDP is the only measure of national income.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

135. (p. 122-123)Which of the following countries have the HIGHEST GNI PER CAPITA?
     A. Saudi Arabia and Kuwait
     B. Mexico and Spain
     C. United States and Switzerland
     D. India and China
     E. Japan and Germany

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

136. (p. 122-123)Which of the following countries has the highest GNI per capita?
     A. United States
     B. India
     C. Switzerland
     D. Saudi Arabia
     E. Venezuela

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

137. (p. 122-123)Which of the following countries have the LOWEST GNI PER CAPITA?
     A. Japan and Switzerland
     B. Mexico and Spain
     C. Ethiopia and Nepal
     D. India and Pakistan
     E. Germany and the United States

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

138. (p. 126)A company trying to market its products in a country that has a low literacy rate would be well advised to:
     A. Print its promotional messages in larger font (character) sizes.
     B. Conduct marketing research using paper-and-pencil surveys.
     C. Use symbols, colors, and other nonverbal means of communication.
     D. All of the above.
     E. None of the above.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

139. (p. 126)Literacy studies show that ______________ percent of adults (age 15 or older) cannot read and write.
     A. 10
     B. 18
     C. 38
     D. 50
     E. 60

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

140. (p. 122-123)Which of the following countries has the HIGHEST literacy rate?
     A. Finland
     B. Venezuela
     C. Greece
     D. Algeria
     E. Morocco

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

141. (p. 122-123)Which of the following countries has the LOWEST literacy rate?
     A. United Kingdom
     B. Italy
     C. Bangladesh
     D. France
     E. Egypt

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

142. (p. 122-123)According to estimates, which of the following countries has 100 percent literacy?
     A. Norway
     B. Singapore
     C. Italy
     D. Kuwait
     E. China

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

 

143. (p. 126)All of the following countries listed more than 75 percent of their populations as Internet users in 2009 EXCEPT:
     A. Sweden
     B. Australia
     C. United States
     D. South Korea
     E. Norway

 

AACSB: Reflective Thinking
Bloom’s: Self-Test
Difficulty: Hard
Learning Objective: 05-01 know about trends in population; income; and technology use in global markets—and how they affect marketers.

144. (p. 127)The current U. S. population is LARGEST in which of the following states:
     A. California.
     B. Florida.
     C. Illinois.
     D. New York.
     E. Texas.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

145. (p. 127)The state with the largest population is
     A. Texas.
     B. Nevada.
     C. New York.
     D. Florida.
     E. California.

 

AACSB: Analytic
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

146. (p. 127-128)According to the text, which of the following states had the LARGEST projected percentage increase in population between 2000 and 2010?
     A. North Dakota
     B. Nevada
     C. West Virginia
     D. Florida
     E. Iowa

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

147. (p. 127-128)The state with the largest percentage increase in population between 2000 and 2010 is:
     A. New York
     B. Nevada
     C. Illinois
     D. South Dakota
     E. Michigan

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

148. (p. 127)The current U. S. population is SMALLEST in which of the following states:
     A. Montana.
     B. Nebraska.
     C. Oklahoma.
     D. Utah.
     E. Wyoming.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

149. (p. 127-128)In the period from 2000 to 2010, the population is projected to grow most rapidly in:
     A. the north central states (around the Great Lakes).
     B. every state in the U.S.
     C. Sun Belt states.
     D. the western states.
     E. None of the above is true.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

150. (p. 128)Over the past decade, _____ percent of the U.S.’s population growth occurred in the West and the South.
     A. 45
     B. 55
     C. 65
     D. 75
     E. 85

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

151. (p. 128)In the past decade, all of the following U.S. states had really fast population growth rates EXCEPT:
     A. Missouri
     B. Nevada
     C. Arizona
     D. Idaho
     E. Utah

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

152. (p. 128)Over the past decade, growth in population in the western states of the U.S. averaged about ______ percent.
     A. 5
     B. 10
     C. 15
     D. 20
     E. 25

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

153. (p. 128)Over the past decade, which state in the U.S.’s Sun Belt had the fastest population growth?
     A. Texas
     B. Georgia
     C. North Carolina
     D. South Carolina
     E. Florida

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

154. (p. 128)During the 2010-2020 decade, the U.S. population is expected to continue to shift:
     A. away from the Southeast to the Northeast.
     B. to the South and West.
     C. to the north central states.
     D. away from the Northeast to all other parts of the country.
     E. away from the West to the East.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

155. (p. 127)Identify the incorrect statement about the concentration of population in the United States.
     A. California is the most populated state.
     B. The most populated U.S. areas developed near inexpensive water transportation.
     C. Some national marketers pay less attention to the plains and mountain states, which have fewer people.
     D. The heavy concentration of people in the Northeast still makes this market larger than the West Coast.
     E. New York is the second most populated state.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

156. (p. 127-128)The best marketing opportunity for a consumer products producer is in:
     A. California.
     B. Florida.
     C. New York.
     D. Texas.
     E. It depends on the marketing strategy.

 

AACSB: Reflective Thinking
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

157. (p. 127-128)According to projections about percent growth in population for each state in the U.S., from 2000 to 2010,
     A. the greatest growth is in western states like Nevada, Arizona, Idaho, and Utah.
     B. the population growth of New York is expected to lead the nation.
     C. the combined population growth in all of the northeastern states will exceed 8 percent.
     D. the combined population growth in the West will average around 2 percent.
     E. the population growth in Georgia, North Carolina, and Virginia is negligible.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

158. (p. 128)Smart marketers might respond to the changes in the U.S. population by:
     A. targeting customers in international markets to take advantage of faster population growth overseas.
     B. targeting areas where there is less population but also fewer competitors.
     C. focusing on areas, like the Northeast, where there are large numbers of potential customers.
     D. all of the above.
     E. none of the above.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

159. (p. 128)Regarding changing population patterns
     A. the population of the U.S. will double in the next 15 years.
     B. nearly one half of the people move in a typical year.
     C. areas with rapid population growth may offer the most attractive marketing opportunities.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Analytic
AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

160. (p. 128)The different rates of population growth are important to marketers for all of the following reasons except
     A. sudden growth in one area may create a demand for many new shopping centers.
     B. retailers in growing areas face tougher competition for a smaller number of customers.
     C. marketers always look for fast-growing markets.
     D. in growing areas, demand may increase so rapidly that profits may be good even in poorly planned facilities.
     E. none of the above.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

161. (p. 128)Which government agency is responsible for tracking the population data in the United States?
     A. Census Bureau of America.
     B. Census Institute for America.
     C. U.S. Census Agency.
     D. U.S. Census Bureau.
     E. U.S. Department of the Census.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

162. (p. 129)Over the past decade, U.S. population growth has averaged about _____ percent a year.
     A. 1
     B. 2
     C. 3
     D. 4
     E. 5

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

163. (p. 129)In the next 20 years,
     A. there should be a continuous increase in the U.S. birthrate.
     B. the population of the U.S. will probably decline unless immigration offsets low birthrates.
     C. the growth rate of the U.S. population will rise.
     D. the U.S. population is expected to double.
     E. population will increase at a faster rate in the U.S. than in the rest of the world.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

164. (p. 129)The number of babies born per year per 1,000 people is called the:
     A. economic index.
     B. birthrate.
     C. future market index.
     D. baby boom index.
     E. consumer surplus.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

165. (p. 129)An estimate of the U.S. birthrate for the year is 14. This means that
     A. 14 babies were born per 1,000 people in the population.
     B. babies less than 1 year old were 14 percent of the population.
     C. 14 percent of population growth was from new births.
     D. the birthrate was at an all time high.
     E. the average age of the U.S. population will not increase in the next 10 years.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

166. (p. 129)The birthrate in the United States
     A. has been almost constant for the last thirty years.
     B. is falling again because many couples born during the “baby boom” are now past their child-bearing years.
     C. rose when Vietnam vets got married, had children, and created the “baby boom” generation.
     D. will contribute more to U.S. population growth than immigration in the next 25 years.
     E. All of the above are true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

167. (p. 129)The U.S. birthrate
     A. has changed little over the last 65 years.
     B. started declining after World War II, until the mid-1950s.
     C. changed to a “baby bust” in the 1970s.
     D. changed to a “echo boom” in the 1980s.
     E. Both C and D are correct.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

168. (p. 129)The birthrate in the U. S.:
     A. Has remained constant over the past 50 years.
     B. Rose sharply in the years immediately following World War II.
     C. Is currently increasing.
     D. Has been steadily falling since 1970.
     E. None of the above.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

169. (p. 129)The median age of the U.S. population
     A. was 37 in 1980.
     B. will be about 30 by 2010.
     C. is decreasing because the percentage of population in older age groups has decreased.
     D. is growing because the percentage of population in older age groups has increased.
     E. has not changed since 1980.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

170. (p. 128-130)Which of the following is NOT an accurate statement about consumer markets in the United States?
     A. There are already over 310 million people in the United States.
     B. The average age of the U.S. population is rising.
     C. The number of people in the 65+ age group will decline very substantially in the next decade.
     D. The post-WWII baby boom was followed eventually by the 1970s baby bust and then the 1980s echo boom.
     E. The number of people in the 45-64 age group increased very substantially in the 2000-2010 decade.

 

AACSB: Diversity
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

171. (p. 129-130)The move of the “Baby Boomers” into the 45-64 age group:
     A. increased the average age of the population.
     B. left many colleges and universities with excess capacity.
     C. contributed to increased interest in health and fitness products.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Diversity
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

172. (p. 129-130)Between 2000 and 2010, the largest projected increase in the U.S. population occurred in the:
     A. 45-64 age group.
     B. 65 or over age group.
     C. 18-29 age group.
     D. 30-44 age group.
     E. 5-17 age group.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

173. (p. 130)Which of the following age groups saw a decline in growth rate from 2000-2010?
     A. Under 5
     B. 18-29
     C. 30-44
     D. 45-64
     E. 65+

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

174. (p. 129-130)With respect to the age distribution of the U.S. population between 2000-2010,
     A. the size of the 18-29 age group rose more than 10 percent.
     B. the size of the 45-64 age group increased more rapidly than any other group.
     C. the size of the senior citizen group grew by 15 percent.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

175. (p. 129-130)Regarding the age trends in the U. S. population for 2010-2020:
     A. The average age of the U. S. population is increasing.
     B. The number of people in the 45-64 age group is still increasing–although at a slower rate than between 2000-2010.
     C. The number of senior citizens in the over-65 age group is increasing at a greater rate than between 2000-2010.
     D. The oldest “baby boomers” are now reaching retirement age.
     E. All of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

176. (p. 129-130)With respect to marketing opportunities that depend on the age distribution of the U.S. population between 2010 and 2020,
     A. the senior citizen group will increase more rapidly than any other group.
     B. sales of products targeted at the 45-64 age group will continue to rise although more slowly than in the previous decade.
     C. the average age of the U.S. consumer is rising.
     D. sales of products targeted at the 30-44 age group will rise more sharply than in the previous decade.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

177. (p. 129-130)Between 2010 and 2020, the largest projected increase in the U.S. population will occur in the:
     A. 5-17 age group.
     B. 18-29 age group.
     C. 30-44 age group.
     D. 45-64 age group.
     E. 65 or over age group.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

178. (p. 130)In the U.S., which population group has the fastest growing group of Facebook users?
     A. Busters
     B. Seniors
     C. Boomers
     D. Gen X
     E. Gen Y

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

179. (p. 130)For which of the following population groups were women more highly educated than men for the first time in U.S. history?
     A. Seniors
     B. Gen X
     C. Boomers
     D. Busters
     E. Gen Y

 

AACSB: Reflective Thinking
Bloom’s: Self-Test
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

180. (p. 130)Which of the following U.S. marketing managers is about to make a serious mistake?
     A. “We are targeting the pre-school age group, since that group is growing faster than ever before.”
     B. “We are refocusing on senior citizens, since they will be a growing market for many years.”
     C. “We are developing special swimsuit designs for older women as that market is very large and growing.”
     D. “Our company is shifting to international markets, where the population will continue to grow at a more rapid rate.”
     E. None of the above seems headed for a mistake.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

181. (p. 131)About ______ percent of the U.S. population lived in rural farm areas in 1920.
     A. 20
     B. 30
     C. 40
     D. 50
     E. 60

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

182. (p. 131)About ______ percent of the U.S. population lives in rural farm areas today.
     A. 2
     B. 4
     C. 6
     D. 8
     E. 10

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

183. (p. 131)The number of people living on farms in the United States is ______________ percent of the total population.
     A. 20
     B. more than 20
     C. 12
     D. less than 2
     E. 10

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

184. (p. 131)The largest group of Americans live in:
     A. suburban areas.
     B. farm areas.
     C. central cities.
     D. rural areas.

 

AACSB: Analytic
AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

185. (p. 131)Regarding the population distribution in urban and suburban areas:
     A. Migration to rural areas from urban areas has been continuous in the U. S. since 1800.
     B. Middle-income consumers have been moving to the suburbs continuously since World War II.
     C. Today’s urban economic system is more dependent on central cities than it used to be.
     D. Purchase patterns tend to be the same in the suburbs and central cities.
     E. All of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

186. (p. 131-132)Regarding the population distribution in urban and suburban areas,
     A. more people live in suburbs than in central cities.
     B. the share of the U.S. population living on farms has dropped to less than 2 percent.
     C. professionals with high incomes tend to concentrate in metro areas.
     D. purchase patterns in suburbs are often different from those in central cities.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

187. (p. 132)Migration from rural to urban areas
     A. has been sporadic in the United States since 1800.
     B. has declined since 1950.
     C. has still not changed U.S. to an urban or suburban society.
     D. can result in misleading descriptions of markets.
     E. does not change the nature of markets.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

188. (p. 132)A Metropolitan Statistical Area (MSA):
     A. must contain one city of 10,000 or more people.
     B. is an urbanized area with a population of at least 2,000,000 people.
     C. is an integrated economic and social unit with a large population nucleus.
     D. usually includes several cities.
     E. Both B and D are true.

 

AACSB: Analytic
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

189. (p. 132)A Metropolitan Statistical Area (MSA):
     A. contains one city of 500,000 or more.
     B. is an integrated economic and social unit having a large population nucleus.
     C. is a consolidated set of cities and suburbs.
     D. consists of one or more counties which must contain a total population of at least 2,000,000.
     E. Both C and D are required for an area to be designated an MSA.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

190. (p. 132)A Metropolitan Statistical Area (MSA) is:
     A. an area where there has been at least a 15 percent change in the population during the previous 10 years.
     B. a city with 250,000 or more people.
     C. generally centered on one city or urbanized area of 50,000 or more inhabitants and includes bordering urban areas.
     D. a Census Bureau term that corresponds to county-by-county political boundaries.
     E. All of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

191. (p. 132)A ______ is an integrated economic and social unit with a large population nucleus.
     A. Small Urban Unit
     B. Consolidated Media Market
     C. PRIZM Cluster
     D. Consolidated Target Market
     E. Metropolitan Statistical Area

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

192. (p. 132)Which of the following statements is true?
     A. A Metropolitan Statistical Area generally centers on one urbanized area of 50,000 or more in population and includes bordering “urban” areas.
     B. Some national marketers sell only in the largest Metropolitan Statistical Areas.
     C. For most marketers, Metropolitan Statistical Areas are a more useful classification method than political boundaries.
     D. All of the above are true statements.
     E. None of the above are true statements.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

193. (p. 132)Metropolitan Statistical Areas
     A. are attractive to many marketers, but usually are very competitive.
     B. are declining in importance.
     C. offer lower sales potential than might be suggested by the population base involved.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Analytic
AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

194. (p. 132)Consolidated Metropolitan Statistical Areas (CMSA):
     A. are the “central city” areas of the largest urban areas–such as New York City and Los Angeles.
     B. are the largest MSAs–those with a population of more than 1,000,000.
     C. are of little interest to marketers because they are defined by political boundaries rather than on some other, more useful, segmenting dimensions.
     D. have large populations, but usually are only of interest to marketers who are targeting low income consumers.
     E. Both C and D are true.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

195. (p. 132)A Consolidated Metropolitan Statistical Area
     A. is a group of small towns or cities that, taken together, have a total population of 100,000.
     B. is smaller than an MSA.
     C. is a large metropolitan statistical area–with over 1 million population.
     D. is the central city area of a large city.
     E. None of the above is true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

196. (p. 132)Identify the INCORRECT statement pertaining to Metropolitan Statistical Areas (MSAs).
     A. About 40 percent of all Americans live in the 20 largest CMSAs.
     B. MSAs are integrated economic and social units with large population nuclei.
     C. MSAs center on a city of 50,000 or more inhabitants and include bordering urban areas.
     D. MSAs with a population of below 50,000 inhabitants are called Consolidated Metropolitan Statistical Areas.
     E. The U.S. Census Bureau reports data by MSA.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

197. (p. 133)The percentage of Americans who move each year.
     A. is less than 2 percent.
     B. is more than 50 percent.
     C. is about 12 percent.
     D. is about 36 percent.
     E. difficult to estimate because some people move within the same town.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

198. (p. 133)About _____________ percent of the American population moves each year.
     A. five
     B. twenty
     C. twelve
     D. fifteen
     E. twenty-eight

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

199. (p. 133)Mobility has an important bearing on marketing planning. Approximately what percent of Americans move each year?
     A. 2 percent
     B. 12 percent
     C. 24 percent
     D. 36 percent
     E. 50 percent

 

AACSB: Diversity
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

200. (p. 133)Regarding U.S. population changes,
     A. about 12 percent of all Americans move each year.
     B. some of the areas with the largest populations are losing population.
     C. the overall U.S. population continues to grow rapidly.
     D. All of the above are true.
     E. Only A and B are true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

201. (p. 133)People who move to a new home (that is, “mobile” consumers):
     A. are not good targets for most products since buying a new house usually consumes most of their discretionary income.
     B. are split about 70 percent for “local” (same county) and 30 percent for long-distance moves.
     C. represent only about 5 percent of all Americans in any given year.
     D. create opportunities for marketers only when a long distance move is involved.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

202. (p. 133)U.S. “mobiles” (consumers who move):
     A. are not a very attractive market–since less than 2 percent of all Americans move each year.
     B. must make many market-oriented decisions fairly quickly after they move.
     C. tend to ignore “national” retailers.
     D. tend to restrict their purchases until they become very familiar with their new area.
     E. generally have less money to spend than other groups.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

 

203. (p. 133)Regarding U. S. “mobiles” (people who move):
     A. Marketers should not concern themselves with local “mobiles,” who move within the same city or MSA, because they are not likely to need new goods or services.
     B. About half of all Americans move each year.
     C. Marketers try to locate “mobiles” and make them aware of market offerings before they make purchase decisions.
     D. All of the above.
     E. None of the above.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

204. (p. 133)Which of the following observations about the population trends in the U.S. consumer market is CORRECT?
     A. About 25 percent of Americans move each year.
     B. Almost half of all moves are within the same county.
     C. Local moves are not very important to marketers – only long-distance moves.
     D. Retail chains and national brands have an advantage with mobile customers.
     E. Population shifts are permanent.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-02 understand how U.S. population growth is shifting in different areas and for different age groups.

205. (p. 133-134)Over the last 60 years, the distribution of buying power in the United States has shifted:
     A. very little.
     B. only slightly, but the ongoing trend has been toward a larger percentage of people in the lower income levels.
     C. dramatically–with a much smaller “middle income” group and a much larger group living in poverty.
     D. dramatically–with many more consumers in the middle and upper income levels.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

206. (p. 133-135)Regarding the distribution of U.S. family income,
     A. the U.S. income distribution is similar to that of Canada and Japan.
     B. the higher income groups still receive a big share of the total income.
     C. buying power has generally become more evenly distributed in the last 60 years.
     D. All of the above are true.
     E. B and C are true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

207. (p. 133-134)All of the following statements about the income distribution in the United States are correct except
     A. sixty years ago, most families were just over a subsistence level.
     B. by the 1970s, real income in the U.S. had risen.
     C. during the 1960s the growth in income slowed due to inflation.
     D. since 2000, median income has declined.
     E. real income growth has slowed.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-03 know about the distribution of income in the United States.

208. (p. 134)____ income is adjusted to take out the effects of inflation on purchasing power.
     A. Disposable
     B. Real
     C. Taxable
     D. Total
     E. Discretionary

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

209. (p. 135)With respect to income, government data indicate that:
     A. the top 5 percent get more than 40 percent of total income.
     B. the bottom 5 percent get about 20 percent of total income.
     C. the median income for U.S. families is about $50,000.
     D. there are only a few families in the United States with incomes over $75,000.
     E. None of the above is a true statement.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

210. (p. 135)The 20 percent of U.S. families with the highest incomes receive:
     A. about the same total income as the next highest 20 percent.
     B. about twice as much income, on average, as the lowest 20 percent group.
     C. almost 80 percent of the total income.
     D. almost 50 percent of the total U.S. income.
     E. only about 20 percent of the total U.S. income.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-03 know about the distribution of income in the United States.

211. (p. 135)About what percentage of TOTAL U.S. income goes to the 20 percent of families with the top incomes?
     A. About 75 percent
     B. About 95 percent
     C. About 15 percent
     D. About 25 percent
     E. About 50 percent

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-03 know about the distribution of income in the United States.

 

212. (p. 135)The percentage of U.S. families with incomes of $113,205 and over in 2008 received __________ percent of total income.
     A. about 50
     B. about 75
     C. 10-15
     D. about 25
     E. less than 5

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-03 know about the distribution of income in the United States.

213. (p. 135)The highest earners in the U.S., the top 20 percent income group, receives about ____ of total income earned in the U.S.
     A. 37%
     B. 48%
     C. 59%
     D. 70%
     E. 82%

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

214. (p. 135)In the United States, the __________ income group receives the smallest share of total income.
     A. lowest 20 percent
     B. second lowest 20 percent
     C. middle 20 percent
     D. second highest 20 percent
     E. highest 20 percent

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

215. (p. 135)Which of the following statements about income distribution in the United States in 2008 is NOT TRUE?
     A. Higher-income groups received a very small share of total income.
     B. The median income of families was about $61,521.
     C. The top 20 percent income group received almost 48 percent of the total income.
     D. Well-to-do families with incomes over $200,000 got over 20 percent of the total income.
     E. Almost 16 million families had less than $27,800 income.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-03 know about the distribution of income in the United States.

216. (p. 135)The lowest 20 percent income group in the U.S.
     A. is not an attractive market for any commodities.
     B. may receive food stamps, Medicare, and public housing, which increases their buying power.
     C. is never a target of marketers.
     D. accounts for 20 percent of all families and receives 10 percent of total income.
     E. receives a surprisingly large share of total income.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

217. (p. 135)The median family income in the U.S. in 2008 was about:
     A. $31,500
     B. $41,500
     C. $51,500
     D. $61,500
     E. $81,500

 

AACSB: Analytic
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

218. (p. 136)Disposable income
     A. is what is left after taxes.
     B. is the income adjusted to take out the effects of inflation.
     C. is the total income of a family.
     D. is the income after paying for necessities.
     E. is the same as per capita income.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

219. (p. 136)“Disposable income” means:
     A. discretionary income.
     B. income before taxes.
     C. income less “necessity” expenditures.
     D. family income.
     E. income after taxes.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

220. (p. 136)“Disposable income” means:
     A. a family’s income AFTER taxes.
     B. the amount a family spends on consumption.
     C. the amount a family has left to spend AFTER paying for necessities.
     D. a family’s income BEFORE taxes.
     E. the amount a family has left to spend AFTER taxes and savings.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

221. (p. 136)Disposable income is defined as:
     A. total market value of goods and services produced.
     B. gross domestic product per capita.
     C. income available after taxes.
     D. income available before taxes.
     E. income available after taxes and necessities.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

222. (p. 136)The amount of income a family has left after paying taxes is:
     A. Discretionary income.
     B. Personal income.
     C. Total income.
     D. Disposable income.
     E. Marginal income.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

223. (p. 136)Misty Hancock is a sales rep for a computer producer. Her salary last year was $30,000, and she earned another $5,000 in sales commissions. She paid $6,000 in taxes, and spent $8,000 on food, housing, a car, and other “necessities.” What is Misty’s disposable income?
     A. $29,000
     B. $34,000
     C. $15,000
     D. $24,000
     E. $8,000

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

224. (p. 136)A young working couple earned $55,000 last year. They paid $16,000 in taxes and $20,000 in rent, food, insurance and other necessities. What was their disposable income for the year?
     A. $39,000.
     B. $55,000.
     C. $30,000.
     D. $35,000.
     E. $19,000.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

225. (p. 136)A young working couple earned $35,000 last year, and paid $10,000 in taxes. They spent $13,000 on rent, food, insurance, and other “necessities.” What is their disposable income?
     A. $12,000
     B. $35,000
     C. $22,000
     D. $25,000
     E. There is not enough information to tell.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

226. (p. 136)Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent, medical expenses and other “necessities.” There was little construction work in February, so he took a trip to the Caribbean and spent $4,000. What was Keith’s disposable income last year?
     A. $4,000
     B. $20,000
     C. $10,000
     D. $12,000
     E. There is not enough information to tell.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

227. (p. 136)As the owner of a women’s clothing store, Caroline Lipscomb has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Caroline’s disposable income last year?
     A. $45,000.
     B. $75,000.
     C. $26,000.
     D. $28,000.
     E. $24,000.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

228. (p. 136)Discretionary income is defined as:
     A. total market value of goods and services produced.
     B. gross domestic product per capita.
     C. income available after taxes.
     D. income available before taxes.
     E. income available after taxes and necessities.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

229. (p. 136)“Discretionary income:”
     A. is a family’s income AFTER taxes.
     B. is a measure of a family’s total purchasing power.
     C. is the amount of income spent on durable goods.
     D. is a family’s income AFTER paying taxes and paying for necessities.
     E. both B and C are true.

 

AACSB: Reflective Thinking
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

230. (p. 136)The amount of disposable income a family has left after paying for its necessities is called its ______________ income.
     A. personal
     B. discretionary
     C. marginal
     D. disposable
     E. modified

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

231. (p. 136)The amount of disposable income a family has left after paying for its “necessities” is called its ______________ income.
     A. discretionary
     B. family
     C. marginal
     D. personal
     E. taxable

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

232. (p. 136)What is left of disposable income after paying for necessities?
     A. Net income.
     B. Real income.
     C. Deductible income.
     D. Gross income.
     E. Discretionary income.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

233. (p. 136)The amount of income a family has left after paying taxes and paying for necessities is called its _____________ income.
     A. personal
     B. discretionary
     C. marginal
     D. family
     E. adjusted

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

234. (p. 136)The amount of income a family has left after paying taxes and paying for its necessities is called its _____________ income.
     A. discretionary
     B. family
     C. marginal
     D. personal
     E. modified

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

 

235. (p. 136)Discretionary income
     A. is the income from investments.
     B. is the income adjusted to take out the effects of inflation.
     C. is that part of disposable income which is not spent.
     D. is an elusive concept because the definition of necessities varies from family to family and over time.
     E. of the majority of U.S. families is enough to afford the lifestyles they see on TV and in other mass media.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

236. (p. 136)A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was:
     A. $35,000.
     B. $50,000.
     C. $19,000.
     D. $34,000.
     E. $15,000.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

237. (p. 136)Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginny’s discretionary income will increase, which of the following products is MOST likely to benefit?
     A. Furnace repairs.
     B. Automobile insurance.
     C. A CD stereo system.
     D. Medical services.
     E. Grocery staples.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

238. (p. 136)As the owner of a Bluetooth specialties store, Alicia Fountainbleau has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janerio. What was Alicia’s discretionary income last year?
     A. $20,000.
     B. $4,000.
     C. $42,000.
     D. $26,000.
     E. $50,000.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

239. (p. 136)Bart Thunderheart has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other “necessities.” Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Bart’s discretionary income last year?
     A. $20,000
     B. $5,000
     C. $35,000
     D. $30,000
     E. $50,000

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

240. (p. 136)Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other “necessities.” Manuel’s discretionary income was:
     A. $28,000
     B. $13,000
     C. $23,000
     D. $18,000
     E. There is not enough information to tell.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

241. (p. 136)Kira Johannson’s salary as a sales rep was reduced to $32,000 last year, but she earned an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering other necessities such as food, housing, and transportation amounted to $11,000. Kira’s discretionary income last year was:
     A. $17,000.
     B. $11,000.
     C. $32,000.
     D. $28,000.
     E. $42,000.

 

AACSB: Analytic
Bloom’s: Application
Difficulty: Medium
Learning Objective: 05-03 know about the distribution of income in the United States.

 

242. (p. 136)Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in taxes, and another $25,000 on food, housing and other necessities. Alberto’s disposable income was ________________ and his discretionary income was _________________.
     A. $75,000; $65,000
     B. $90,000; $65,000
     C. $65,000; $65,000
     D. $75,000; $75,000
     E. $90,000; $75,000

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-03 know about the distribution of income in the United States.

243. (p. 137)Which of the following dimensions affect family spending?
     A. income
     B. age of children
     C. age
     D. marital status
     E. all of the above

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

244. (p. 137)In the U.S., about ______ million grandparents live with their grandchildren.
     A. 4
     B. 6
     C. 8
     D. 10
     E. 12

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

245. (p. 138)Which of the following U.S. household structures has the largest percentage of population?
     A. Married couples with children
     B. Single parents with children
     C. Singles living alone
     D. Married couples with no children
     E. Non-married couples with no children

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

246. (p. 138)About ______ percent of U.S. households are families headed by a single woman.
     A. 10
     B. 12
     C. 14
     D. 16
     E. 18

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

247. (p. 138)About what percentage of babies in the U.S. are born to a single parent?
     A. 10 percent
     B. 20 percent
     C. 30 percent
     D. 40 percent
     E. 50 percent

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

248. (p. 138)About ______ percent of U.S. adults are married today.
     A. 40
     B. 50
     C. 60
     D. 70
     E. 80

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

249. (p. 137)Which of the following is NOT a stage in the TRADITIONAL flow of the family life cycle?
     A. Young single
     B. Young married without children
     C. Young divorced with children
     D. Middle-aged married without dependent children
     E. Young married with children

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

250. (p. 137)The traditional family flow, according to the family life cycle, does not include people who are
     A. middle-aged divorced without dependent children.
     B. young married with children.
     C. middle-aged married with children.
     D. middle-aged married without dependent children.
     E. young married without children.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

251. (p. 137)Single-adult households account for ______________ percent of all households in the United States.
     A. 47
     B. 57
     C. 37
     D. 17
     E. 27

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

252. (p. 137)Which of the following statements about single-adult households in the U.S. is FALSE?
     A. Single-adult households account for 27 percent of all households.
     B. The percentage of single-adult households among all households is in decline.
     C. In New York and Washington, D.C., single adult-households exceed 40 percent of all households.
     D. Single-adult households include almost 33 million people.
     E. In general, single-adult households need smaller apartments, smaller cars, and smaller food packages.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

253. (p. 137-138)Which of the following statements about the household composition in the U.S. is FALSE?
     A. The “typical” American household is, a married couple with two children—living in the suburbs.
     B. Only 22 percent of households consist of a husband, wife, and children under 18.
     C. About 28 percent of households involve married couples, but ones without children living at home.
     D. More than 12 percent of U.S. households are now families headed by a single woman.
     E. At any given time only about 60 percent of all adults are married.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

254. (p. 137-138)Which of the following statements about U.S. consumer households is true?
     A. Married couples with no children 18 or younger account for half of all U.S. households.
     B. The typical American household is a married couple living in the suburbs with two children.
     C. The number of families living “on the farm” has dropped to an all time low of 15 percent.
     D. About two thirds of all adults are now single.
     E. None of the above is true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

255. (p. 137-138)Which of the following statements about U.S. consumer households is true?
     A. The U.S. has the highest divorce rate in the world.
     B. The typical American household is a married couple with two children living in the suburbs.
     C. One-half of all households in the U.S. are made up of married couples with no children under 18 years of age.
     D. Only one-fourth of all adults are married.
     E. Single-adult households make up 50 percent of all U.S. households.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

256. (p. 137-138)Which of the following statements about U.S. consumer households is true?
     A. About 2 out of every 3 marriages ends in divorce–and at any given time only about 40 percent of all adults are married.
     B. More than half of all U.S. households consist of married couples with no children 18 or younger living at home.
     C. Single-adults account for nearly 40 percent of all households.
     D. Americans are marrying younger, but delaying child bearing compared to the older generation.
     E. None of the above is true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

257. (p. 137-138)Which of the following statements about U. S. household composition is False?
     A. Americans are marrying later in life than they used to.
     B. Most American households consist of a husband, wife and children under 18.
     C. Most divorced people marry again.
     D. The number of single-adult households is increasing.
     E. The United States has the highest divorce rate in the world.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

258. (p. 137-138)The composition of U.S. households is such that:
     A. the number of unmarried couples living together has sharply declined.
     B. married couples with no children under 18 now account for one-half of all households.
     C. single-adult households account for 27 percent of all households.
     D. only about one-third of all adults are married.
     E. 75 percent of all marriages end in divorce.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

259. (p. 137-138)Which of the following statements about U.S. consumer households is true?
     A. More than 80 percent of all households in the U.S. are made up of married couples with no children under 18 years of age.
     B. The divorce rate is about 50 percent, and the majority of divorced people stay single.
     C. Americans are marrying younger, but delaying child bearing.
     D. Single-adult households account for over one-fourth of all households.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

260. (p. 138)Which of the following statements is true?
     A. Divorced families usually have more discretionary income than traditional families.
     B. Singles and young couples are more willing to try new products.
     C. Empty nesters are frequently big spenders.
     D. B and C are true statements, but not A.
     E. All of the above are true statements.

 

AACSB: Diversity
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

261. (p. 138)Of the following, which are the most receptive to new products and new brands?
     A. Families with small children.
     B. Older people with no children.
     C. Families with teenagers.
     D. Families whose children are grown.
     E. Younger people with no children.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

262. (p. 138)Of the following, which are the most receptive to new products and new brands?
     A. Young people
     B. Senior citizens
     C. Empty-nesters
     D. Middle-aged people
     E. All are equally receptive.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

263. (p. 138)Regarding the family life cycle, singles and younger couples without children
     A. are more willing to try new products and brands.
     B. tend to be carefree shoppers who are not very price-conscious.
     C. often wait to buy basic durable goods until they have children.
     D. feel more financially squeezed than couples with young children.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Self-Test
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

264. (p. 138)Ted and Amy Balderas were married last year, at age 24. They have no children and both are currently working hard to build their careers. Couples like Ted and Amy:
     A. are likely to be a poor target for firms that are trying to market a new brand or new product concept.
     B. usually focus on buying durables–such as furniture and appliances.
     C. usually don’t spend money on discretionary purchases.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Analytic
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

265. (p. 138)Identify the INCORRECT statement about the effect of marital status, age, and the age of any children in the family, on how people spend their income.
     A. Singles and young couples are more willing than older married people to try new products and brands.
     B. Younger people usually earn more than older consumers, but spend less on discretionary items.
     C. Only as children arrive and grow does family spending shift to soft goods and services.
     D. People in the age group of 35-49 often make more purchases on credit.
     E. People in the age group of 35-49 save less of their income.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

266. (p. 138)Teenagers:
     A. Have no influence on the buying behavior of their parents.
     B. Are not an attractive market because they do not spend much money.
     C. Have become a target for many firms.
     D. Have essentially the same buying habits as they had before reaching their teen years.
     E. None of the above.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

267. (p. 138)American teenagers
     A. are not interested in expensive clothes.
     B. are not involved in shopping.
     C. currently spend $200 billion a year.
     D. develop recreation and education needs that are easy on the family budget.
     E. do not influence family purchases.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

268. (p. 138)U.S. teenagers spend about ______ billion per year.
     A. $100
     B. $150
     C. $200
     D. $250
     E. $300

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

269. (p. 138)“Empty nesters”:
     A. are senior citizens.
     B. are people over 65 who live alone.
     C. often have high incomes and fewer required expenses.
     D. are singles and couples without children–who have much discretionary income.
     E. None of the above is true.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

270. (p. 138)Empty nesters
     A. are usually in the 30-44 age group.
     B. are not an attractive market for any items.
     C. spend a larger percent of their income on housing, child care, and other necessities.
     D. are people whose children are grown and who are now able to spend their money in other ways.
     E. disrupt the family life-cycle pattern.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

271. (p. 138-139)HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums–and HomeFront changed its focus. The change in demand could be explained by:
     A. the increasing number of senior citizens who are “empty-nesters.”
     B. the fact that consumers in urban areas generally have higher incomes.
     C. the increasing number of 45-64 year olds whose children are grown.
     D. the increase in the number of single-adult households.
     E. All of the above are likely causes.

 

AACSB: Reflective Thinking
Bloom’s: Application
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

272. (p. 139)Senior citizens:
     A. Are defined as people over age 50.
     B. Are a market that is shrinking.
     C. Are more prosperous than ever before.
     D. Have the same needs as younger consumers.
     E. None of the above.

 

AACSB: Analytic
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

273. (p. 139)Senior citizens
     A. mostly have incomes below the poverty level.
     B. are essentially all the same.
     C. do not have money to spend.
     D. have different needs and require different marketing strategies.
     E. are a market that is shrinking.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

274. (p. 139)About ______ percent of U.S. senior citizens (age 65+) live below the poverty level.
     A. 8
     B. 10
     C. 12
     D. 14
     E. 16

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

275. (p. 139)Identify the INCORRECT statement pertaining to senior citizens.
     A. Senior citizens are people over age 65.
     B. The number of senior citizens is increasing rapidly.
     C. Senior citizens’ income is often lower than in their peak earning years.
     D. Older people are not all the same.
     E. A higher percentage of senior citizens are considered “poor” than the percentage for all adults.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

 

276. (p. 139)Antonio Marko just started a business called “Seasoned Support” that provides a number of services–from house and lawn care to grocery shopping–for the elderly. Antonio is apparently
     A. unaware of the lack of success experienced by most other companies that have tried to target this market.
     B. doomed to failure, since older consumers do not need such services.
     C. unaware that very few people who are over 65 have enough money to pay for such services.
     D. targeting the increasing number of older consumers who now have higher incomes than in the past.
     E. None of the above is a good answer.

 

AACSB: Reflective Thinking
Bloom’s: Application
Difficulty: Hard
Learning Objective: 05-04 know how consumer spending is related to family life cycles and other demographic dimensions.

277. (p. 139)People from different ethnic groups
     A. create challenges and not opportunities for marketers.
     B. do not play an important role in the American marketplace.
     C. may be influenced by very different cultural variables.
     D. have common needs.
     E. have similar ways of thinking.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

278. (p. 140)About ______ percent of U.S. families speak a language other than English in their homes.
     A. 10
     B. 15
     C. 20
     D. 25
     E. 30

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

279. (p. 140)In Los Angeles, California, about ______ percent of the people speak a language other than English.
     A. 30
     B. 40
     C. 50
     D. 60
     E. 70

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

280. (p. 140)About ______ percent of the U.S. population is African American.
     A. 9
     B. 11
     C. 13
     D. 15
     E. 17

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

281. (p. 140-141)The ethnic composition of a market can be important to marketing managers because
     A. treating all members of an ethnic group as one target market is often misleading.
     B. about 1 out of 5 families speaks a language other than English at home.
     C. the geographic distribution of ethnic groups varies across the country.
     D. All of the above are true.
     E. None of the above is true.

 

AACSB: Diversity
AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

282. (p. 140-141)Which of the following is NOT an accurate statement about ethnic groups in the United States?
     A. People from different ethnic groups may be influenced by different cultural variables.
     B. 1 out of 5 families speaks a language other than English at home.
     C. African-Americans outnumber Hispanics in the U.S. by two to one.
     D. Ethnic groups are growing at a faster rate than the population as a whole.
     E. Already, more than 41 percent of American children are African American, Hispanic, or Asian.

 

AACSB: Diversity
Bloom’s: Application
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

283. (p. 140-141)Which of the following observations regarding ethnic shifts in the American market is FALSE?
     A. More than 41 percent of American children are already African American, Hispanic, or Asian.
     B. The buying power of ethnic submarkets is increasing rapidly.
     C. Whites are not expected to become a majority until 2050.
     D. Companies will need separate strategies for each ethnically or racially defined market.
     E. Estimates indicate that in 2010 Asian Americans spent over $500 billion a year.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

284. (p. 140-141)Which of the following statements about ethnic dimensions of the U. S. market is True?
     A. Ethnic groups buy differently and have different needs.
     B. Many firms make the mistake of treating all consumers in an ethnic group as homogeneous.
     C. The number of ethnic consumers is growing at a faster rate than the overall society.
     D. The buying power of ethnic submarkets is increasing rapidly.
     E. All of the above are true.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

285. (p. 140-141)Which of the following statements about ethnic groups in the U.S. is FALSE?
     A. The birthrates of Hispanics, African Americans, and Asian Americans are all higher than that of whites.
     B. Hispanics are the largest minority group.
     C. The median ages of Hispanics, African Americans, and Asian Americans are all lower than that of whites.
     D. Asian Americans have the highest median family income.
     E. Already, more than 75 percent of American children are Hispanic, African American, or Asian American.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

286. (p. 140-141)Ethnic markets are becoming more important to marketers because
     A. whites are not expected to become a majority until 2050.
     B. the median age of Asian Americans, African Americans, and Hispanics is much higher than that of whites.
     C. the number of ethnic consumers is growing at a much faster rate than the overall society.
     D. they make a clear segment with similar backgrounds and common language, religion, and culture.
     E. the birthrate of Asian Americans, African Americans, and Hispanics is lower than that of whites.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

287. (p. 140-141)Which of the following statements by marketing managers is NOT logical and true?
     A. “We are planning to appeal more to Hispanic consumers, since this group has surged and is now over 15 percent of the population.”
     B. “We’re building supermarkets that will appeal to Hispanic consumers; it’s a big investment, but the Hispanic population in the U.S. spends nearly $1 trillion a year.”
     C. “We are adapting our diaper promotion to target African American and Hispanic parents, since the birthrate in those groups is higher than for whites.”
     D. “We will target Asian Americans in California, New York, and Texas since over half of their population in the U.S. is concentrated in those three states.”
     E. “We are going to appeal to the African American group because it is a large, homogeneous target market.”

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

288. (p. 141)Which of the following statements pertaining to the Hispanic Americans is FALSE?
     A. Hispanic Americans are the largest and fastest-growing ethnic group.
     B. In 2010, the Hispanic population made up 16 percent of the total population.
     C. The Hispanic population tends to be older than the U.S. population as a whole.
     D. In 2010, the Hispanic population in the U.S. was over 47 percent greater than the population of Canada.
     E. Recently the Hispanic American population has increased at a rate of about 1 million per year.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

289. (p. 141)The largest and fastest growing ethnic minority group in the United States is composed of:
     A. African Americans.
     B. Asian Americans.
     C. Native Americans.
     D. Polish Americans.
     E. Hispanics.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

290. (p. 140)Compared to U.S. averages, the median age of Hispanic Americans is:
     A. slightly higher.
     B. much higher.
     C. much lower.
     D. about the same.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

291. (p. 141)Compared to U.S. averages, the birthrate of Hispanic Americans is:
     A. slightly lower.
     B. much lower.
     C. higher.
     D. about the same.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

 

 

292. (p. 141)Identify the INCORRECT observation about Asian Americans.
     A. Asian Americans are the largest and fastest-growing ethnic group in the United States.
     B. The number of Asian Americans has more than tripled since 1980.
     C. Asian Americans have the highest median family income of the major ethnic groups.
     D. In 2010 they spent over $500 billion a year.
     E. Because of their income, a lot of companies are targeting these consumers.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.

293. (p. 140-141)Which of the following statements about ethnic differences in the U.S. is FALSE?
     A. About 1 out of 5 families speaks a language other than English at home.
     B. Brand preferences vary for some ethnic groups.
     C. Differences in attitudes, experiences, and values come together to shape differences in buying behavior.
     D. The Asian American market has grown fast and now exceeds the Hispanic market in size.
     E. In Los Angeles and San Jose, California, almost 60 percent speak another language.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 05-05 know why ethnic markets are important—and why they are increasingly the focus of multicultural marketing strategies.