M Marketing 6th Edition by Dhruv Grewal - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below M: Marketing, 6e (Grewal) Chapter 5 Analyzing the Marketing Environment 1) By paying close attention to customer needs and continuously monitoring the business environment in which it …
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M Marketing 6th Edition by Dhruv Grewal – Test Bank
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M: Marketing, 6e (Grewal)
Chapter 5 Analyzing the Marketing Environment
1) By paying close attention to customer needs and continuously monitoring the business environment in which it operates, a good marketer can identify potential opportunities.
Answer: TRUE
Explanation: Changes in the environment can be a source of opportunities for the firm.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.
Answer: FALSE
Explanation: The consumer, not the firm, should be kept at the center of all activity.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) The marketing firm must consider the entire business process, all from a consumer’s point of view.
Answer: TRUE
Explanation: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Therefore, the marketing firm must consider the entire business process, all from a consumer’s point of view.
Difficulty: 1 Easy
Topic: Understanding the Marketing Environment
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) In the immediate environment, the competition has no effect on consumers.
Answer: FALSE
Explanation: Consumers may be influenced directly by the immediate actions of the focal company, the company’s competitors, or corporate partners that work with the firm to make and supply products and services to consumers.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The three elements of the consumer’s immediate environment are the company, competition, and corporate partners.
Answer: TRUE
Explanation: Consumers may be influenced directly by the immediate actions of the focal company, the company’s competitors, or corporate partners that work with the firm to make and supply products and services to consumers.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Marketers focus on developing universal products or services that can be identifiable by and relevant to all groups of people.
Answer: FALSE
Explanation: Our various cultures influence what, why, how, where, and when we buy. The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people.
Difficulty: 2 Medium
Topic: Macroenvironment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Demographic profiles of customers provide an easily understood “snapshot” of the typical consumer in a specific target market.
Answer: TRUE
Explanation: Demographics provide an easily understood snapshot of the typical consumer in a specific target market.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.
Answer: FALSE
Explanation: Foreign currency fluctuations can influence consumer spending. When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) The macroenvironmental factors that marketers must consider are the company, competition, and corporate partners.
Answer: FALSE
Explanation: Macroenvironmental factors are external factors that affect a company’s business such as culture, demographics, social trends, technological advances, economic situation, and political/regulatory environments. The factors listed in the question relate to the immediate environment.
Difficulty: 1 Easy
Topic: Macroenvironment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) Members of Generation Y are the children of Baby Boomers.
Answer: TRUE
Explanation: The group of people born between 1977 and 2000 are referred to as Generation Y, Gen Y, or Millennials, and include the more than 60 million people born in the United States between 1977 and 2000. They are the children of Baby Boomers.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) Generation X is the biggest cohort since the original postwar World War II boom.
Answer: FALSE
Explanation: As the children of the Baby Boomers, Generation Y is the biggest cohort since the original postwar World War II boom.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
12) The members of Generation X are also referred to as Digital Natives.
Answer: FALSE
Explanation: Digital Natives are members of Generation Z, not Generation X.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
13) One of the social trends discussed in the text that is shaping consumer values in the United States and around the world is a concern about the vast disparity in income.
Answer: FALSE
Explanation: Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) People participate in many cultures, which makes it all the more important for marketers to have products or services that can relate to more than one particular group.
Answer: TRUE
Explanation: We broadly define culture as the shared meanings, beliefs, morals, values, and customs of a group of people. Our various cultures influence what, why, how, where, and when we buy.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) Companies such as Burger King no longer use cartoon characters to promote products such as burgers and fries because the characters do not retain popularity among young children for very long.
Answer: FALSE
Explanation: Companies such as Burger King no longer use cartoon characters to promote products such as burgers and fries because new advertising guidelines do not allow linking unhealthy foods with cartoon characters and celebrity figures.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Socially responsible marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
Answer: FALSE
Explanation: Green marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaging in greenwashing.
Answer: TRUE
Explanation: Consumers need to question whether a firm is spending significantly more money and time advertising being green and operating with consideration for the environment than actually spending these resources on environmentally sound practices.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) The next broad wave of mobile applications is likely to expand the use of wireless payments through applications such as Apple Pay, Google Wallet, Master Card’s Easy Pay, and Softcard Mobile Wallet, all of which enable customers’ phones to serve as m-wallets.
Answer: TRUE
Explanation: Applications such as Google Wallet, MasterCard’s Easy Pay, and Softcard Mobile Wallet all enable customers’ phones to serve as m-wallets.
Difficulty: 1 Easy
Topic: Technological Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
19) Inflation refers to the cost of borrowing money.
Answer: FALSE
Explanation: Inflation refers to the persistent increase in the prices of goods and services.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal.
Answer: TRUE
Explanation: The 1890 Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition and makes fair trade within a free market a national goal.
Difficulty: 1 Easy
Topic: Political and Legal Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
21) Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that remain consistent over time.
Answer: FALSE
Explanation: Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that change and evolve over time.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) Corporate partners work with a focal company to make and supply products and services to consumers.
Answer: TRUE
Explanation: Firms collaborate with other firms to produce and market their products.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) Jeanne, who lives in Boston, refers to Pepsi as “tonic,” while Paul, who lives in Chicago, calls it “pop.” This is an example of a regional culture difference that marketers must consider.
Answer: TRUE
Explanation: Regional culture affects many aspects of people’s lives, including their vocabulary, dietary tastes, and preferences.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
24) Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.
Answer: TRUE
Explanation: Typical demographics include age, gender, income, and race.
Difficulty: 3 Hard
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
25) Applying age as a basis to identify customers is unethical, as it involves stereotyping.
Answer: FALSE
Explanation: Applying age as a basis to identify consumers is quite useful to marketers, as long as it is used in conjunction with other consumer characteristics.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) As a retail clothing store manager, Randy frequently asks his staff what customers are saying, what they are asking for, and what they are coming into the shop wearing. He also attends the fashion symposium that’s held every quarter in the town’s main shopping district. Randy’s efforts will likely help him
Answer: C
Explanation: By paying close attention to customer needs and continuously monitoring the business environment in which the company operates, a good marketer can identify potential opportunities.
Difficulty: 3 Hard
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
27) Marketers must consider the entire business process from the point of view of the
Answer: E
Explanation: Because the consumer is the center of all marketing efforts, value-based marketing firms must consider the entire business process all from a consumer’s point of view.
Difficulty: 1 Easy
Topic: Understanding the Marketing Environment
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) A firm’s macroenvironment includes all of the following except
Answer: A
Explanation: Competition is part of the immediate environment, not the macroenvironment.
Difficulty: 1 Easy
Topic: Macroenvironment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) The framework that allows a firm to outline how customers, the company, competitors, and corporate partners affect marketing strategy is called the
Answer: B
Explanation: The marketing environment analysis framework illustrates all the factors that affect the marketing environment. The centerpiece, as always, is consumers. This framework allows a firm to continuously monitor the business environment in which it operates to identify potential opportunities.
Difficulty: 1 Easy
Topic: Understanding the Marketing Environment
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) The creation of CVS Health’s mobile apps in connection with its onsite MinuteClinics is a response to a ________ trend that surrounds health and wellness concerns.
Answer: B
Explanation: Health and wellness concerns have spurred a number of mobile apps, many of which help customers get or stay in shape by tracking exercise, calorie intake, and sleep cycles. CVS Health’s apps help its consumers stay well.
Difficulty: 2 Medium
Topic: Macroenvironmental Factors
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) One of the goals of value-based marketing is
Answer: C
Explanation: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Therefore, the marketing firm must consider the entire business process, all from a consumer’s point of view.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan’s firm must look at everything it does
Answer: D
Explanation: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Therefore, the marketing firm must consider the entire business process, all from a consumer’s point of view.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) Yvonne knows her firm must look at everything it does from a consumer’s point of view. One major difficulty is that consumers’ needs, wants, and ________ change over time.
Answer: B
Explanation: Consumers’ needs and wants, as well as their ability to purchase, depend on a host of factors that change and evolve over time.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) Select a key trait that best describes Generation Y.
Answer: A
Explanation: Generation Y is the biggest cohort since the original postwar World War II boom. It also varies the most in age, ranging from teenagers to adults who have their own families.
Difficulty: 2 Medium
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
35) Which of the following statements accurately describes the current income distribution in the United States?
Answer: C
Explanation: Income distribution in the United States has grown more polarized—the highest-income groups are growing, whereas many middle- and lower-income groups’ real purchasing power keeps declining.
Difficulty: 2 Medium
Topic: Macroenvironment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) When you register your telephone number with the National Do Not Call Registry, you are responding to a need for
Answer: A
Explanation: Privacy is a major concern for consumers, and the Federal Trade Commission is responding by trying to protect consumers against unwanted telephone solicitations.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) In the immediate marketing environment, the first factor that affects the consumer is
Answer: D
Explanation: The components of the immediate environment are the firm, its competitors, and its corporate partners.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) Successful firms focus their efforts on satisfying customer needs that
Answer: E
Explanation: The firm’s competencies are its strengths; the firm is likely to have the most success if it can leverage its core competencies to meet the needs of its customers.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that
Answer: E
Explanation: The firm’s competencies are its strengths; the firm is likely to have the most success if it can leverage its core competencies to meet the needs of its customers.
Difficulty: 3 Hard
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) Yuri, the marketing director of Make It Move, is considering developing a promotional campaign for a new fitness program. The fitness industry is already filled with strong competitors. Before initiating the campaign, then, Yuri will need to assess his competitors’ strengths, weaknesses, and likely reactions to his firm’s
Answer: A
Explanation: Yuri must consider competitors’ strengths and weaknesses in order to perform accurate program comparisons; he must also understand how competitors will respond to the promotional campaign. Each competing firm will tout and compare its benefits over the other’s because the ultimate goal, of course, is to appeal to consumers.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) The firms that work along with the focal firm to provide goods and services to consumers are viewed as
Answer: B
Explanation: Corporate partners work with the firm to provide goods and services.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) Yellow Trucking provides transportation services for Dan’s Delicious Donuts so that Dan’s stores always have fresh stock. Yellow Trucking is an example of a
Answer: B
Explanation: Corporate partners work with the firm to provide goods and services.
Difficulty: 3 Hard
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
43) The difference between a firm’s immediate marketing environment and its macroenvironment is that the macroenvironment
Answer: A
Explanation: The macroenvironment consists of factors external to the firm.
Difficulty: 1 Easy
Topic: Macroenvironment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
Answer: B
Explanation: This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but culture is a broader concept.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in
Answer: B
Explanation: Regional culture refers to cultural differences across different areas of a country.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) Insight Guides, a line of travel books, provides travelers with background information about people’s beliefs, values, and customs in various parts of the world. Insight’s books educate travelers about a country’s
Answer: E
Explanation: People’s beliefs, values, and customs relate to their culture.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) When developing their marketing strategies to appeal to different audiences, marketers must consider
Answer: A
Explanation: Two dimensions of culture that marketers must take into account as they develop their marketing strategies are the culture of the country and that of a region within a country.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases exemplified displays of
Answer: C
Explanation: Country culture consists of a country’s shared beliefs and values, which included the strong display of patriotism after the World Trade Center attacks.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) When a company attempts to appeal to the same target market across countries, for example, by using the same images and copy on a specific product advertisement but changing only the language in which the copy is displayed, that company is taking into account
Answer: D
Explanation: Country culture includes visible nuances such as artifacts, behavior, dress, ceremonies, language differences, and so forth. But the subtler aspects of country culture may be trickier to identify and navigate. Sometimes it is best to establish a universal appeal within the specific identities of country culture by producing advertising that appeals to the same target market across countries. The pictures and copy stay the same, but the language changes.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?
Answer: D
Explanation: Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
51) In New England, foot-long sandwiches are called “grinders,” while in many other parts of the country they are called “subs.” This is an example of the impact of
Answer: A
Explanation: These types of language (vocabulary) differences are typical examples of regional cultural differences.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
52) The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely
Answer: B
Explanation: Regional cultures represent differences between regions of a country. The more people move from one region to another, the more the cultures will tend to blend and become more similar.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) Typical demographic data include all of the following except
Answer: E
Explanation: All of these are examples of demographic factors except language differences, which is a cultural trait.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using ________ to see if the media “fit” with their advertising agenda.
Answer: C
Explanation: Age, income, gender, and race are demographic factors.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life.
Answer: D
Explanation: Consumers in a generational cohort—a group of people of the same generation—have similar purchase behaviors because they have shared experiences and are in the same stage of life.
Difficulty: 2 Medium
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) After conducting some targeted research, Bugaboo International decided to design a new type of children’s stroller that would appeal more to men: a high-tech, black-and-chrome version with dirt bike tires. This research was based on
Answer: C
Explanation: Gender is a demographic variable, a characteristic of human populations and segments, that marketers use to identify consumer markets.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
57) ________ is distinguished from the other generational cohorts in that the group’s oldest members are now collecting Social Security.
Answer: A
Explanation: Baby Boomers, those born between 1946 and 1964, are now collecting Social Security.
Difficulty: 2 Medium
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) Marketers wanting to use social media to reach consumers should understand that people in the ________ group were born into a world that was already full of digital technologies such as the Internet and social networks.
Answer: E
Explanation: Members of Generation Z are also known as Digital Natives since they have always had electronic gadgets and digital technologies in their world.
Difficulty: 2 Medium
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
59) The first “latchkey” children belong to which generational cohort?
Answer: C
Explanation: Generation X children grew up in homes in which both parents worked, the definition given to “latchkey” children.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
60) Marketers will often decide which population segments to target based on income because income determines consumer
Answer: A
Explanation: Income drives a consumer’s purchasing power. The broad range in incomes creates marketing opportunities at both the high and low ends of the market. Although some marketers choose to target only affluent population segments, others have had great success delivering value to middle- and low-income earners.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
61) ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC’s plant was one of the worst polluters in town. The term for this practice is
Answer: B
Explanation: The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
62) When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that
Answer: B
Explanation: Income distribution has gotten increasingly unequal in the United States, with high-income groups getting richer and low-income groups getting poorer.
Difficulty: 2 Medium
Topic: Macroenvironment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups
Answer: C
Explanation: The broad range in incomes creates marketing opportunities at both the high and low ends of the market.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
64) Which ethnic group has shown to have increasing influence on mainstream U.S. culture, which, in turn, will impact the way firms approach their marketing strategy to this group?
Answer: A
Explanation: Hispanic buying power was projected to reach $1.3 trillion in 2015, a cumulative increase of around 25 percent compared with 2010. By 2050 nearly 30 percent of the population will be Hispanic.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) For some products, marketers can combine education level with other data like occupation and income to obtain
Answer: E
Explanation: For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate predictions of purchasing behavior.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) Marketers know that, compared to high school graduates who are working full time, college students
Answer: B
Explanation: For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate predictions of purchase behavior. For instance, a full-time college student with a part-time job may have relatively little personal income but will spend his or her disposable dollars differently than would a high school graduate who works in a factory and earns a similar income.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) As gender roles have blurred, status, attitudes, and behaviors related to gender have shifted. This means that marketers must
Answer: C
Explanation: Today male and female roles have been blurred. For example, women now outperform men scholastically and approximately 15 percent of heterosexual married women in Western economies now earn more than their husbands. Such shifts in status, attitudes, and behaviors affect the way many firms design and promote their products and services. More firms are careful about gender neutrality in positioning their products and attempt to transcend gender boundaries.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) The results of the 2010 census suggest that the number of black households earning more than $75,000 has increased by 47 percent since 2005. Why is this detail important to marketers?
Answer: A
Explanation: In general, the more income one generates, the stronger one’s purchasing power becomes. The census of 2010 counts 42 million African American U.S. households, who are more affluent and suburban than previous studies suggested. They also tend to be younger, such that 47 percent are between the ages of 18 and 49 years (a key age demographic for many marketers) and it is expected that a majority of black Americans now live in the suburbs.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) Marketers in the United States are paying increasing attention to ethnic groups because
Answer: B
Explanation: Approximately 80 percent of all population growth in the next 20 years is expected to come from African American, Hispanic, and Asian communities. Among the different groups, Hispanic buying power was projected to reach $1.3 trillion in 2015, a cumulative increase of around 25 percent compared with 2010.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
70) Greater emphasis on health and wellness concerns, greener consumers, and privacy concerns are all ________ that shape consumer values and impact marketing.
Answer: C
Explanation: Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
71) As the fastest growing ethnic population in the United states, Asian Americans represent
Answer: A
Explanation: Asian Americans make up only about 5.6 percent of the U.S. population, but they also represent the fastest-growing minority population, tend to earn more, have more schooling, and be more likely to be professionally employed or own a business—these are all important market segmentation variables that make Asian Americans an opportunity for marketers.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) Strategic efforts to supply consumers with environmentally friendly merchandise are called
Answer: B
Explanation: Green marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
73) By offering environmentally responsible products, green marketers
Answer: D
Explanation: Environmentally responsible products have additional value for consumers to whom protecting the environment is important.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) Many U.S. consumers are purchasing hybrid automobiles because they leave less of a carbon footprint. These consumers are called
Answer: A
Explanation: Many consumers, concerned about everything from the purity of air and water to the safety of beef and salmon, believe that each person can make a difference in the environment. Green consumers will purchase environmentally friendly, sustainable merchandise and services.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
75) What retailer, in 2013, suffered a massive security breach that allowed hackers to steal credit and debit card information for millions of customers?
Answer: B
Explanation: In recent years there have been a number of hacking scandals, perhaps most notably the 2013 Target breach that put millions of customers’ credit and personal information at risk.
Difficulty: 1 Easy
Topic: Technological Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
76) What technological advancement enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer?
Answer: A
Explanation: Radio frequency identification (RFID) tags help marketers because they assist in determining exactly how much of each product is at a given point in the supply chain. Retailers can also communicate with their suppliers to plan to meet their inventory needs.
Difficulty: 2 Medium
Topic: Technological Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
77) An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm
Answer: C
Explanation: Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.
Difficulty: 2 Medium
Topic: Technological Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except
Answer: D
Explanation: Income, interest rates, and inflation are among the economic factors; age is a demographic factor.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true?
Answer: D
Explanation: By keeping the exchange rate constant, U.S.-made products’ prices would go down, compared to their Mexican counterparts, whose prices would rise with inflation.
Difficulty: 3 Hard
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
80) Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
Answer: A
Explanation: The concern about monopolies and alliances is that they will inhibit competition, possibly raising prices and reducing choice.
Difficulty: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
81) Which of the following groups were born into a world where the Internet and other digital technologies already existed?
Answer: E
Explanation: Members of Generation Z (Gen Z) are also known as Digital Natives because people in this group were born into a world that already was full of electronic gadgets and digital technologies such as the Internet and social networks.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
82) Which macroenvironmental factor influences what, why, how, where, and when consumers buy?
Answer: A
Explanation: Our various cultures influence what, why, how, where, and when we buy.
Difficulty: 2 Medium
Topic: Macroenvironmental Factors
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
83) When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?
Answer: A
Explanation: By eliminating the cardboard core, a form of consumer waste is eliminated, which would be of interest to consumers concerned about the environment—in other words, this is an example of green marketing.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
84) If McDonald’s wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except
Answer: E
Explanation: Targeting preteens is related to demographic factors, not a current social trend, and in fact would probably be considered to work against the social trend toward health and wellness, given that many of McDonald’s menu items are considered to be unhealthy.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
85) Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You might consider experimenting with what is most likely the next expected development in mobile technology, which is
Answer: A
Explanation: Near-field communication technology takes payments, coupons, and loyalty card data from customers as they walk by the scanner. The next broad wave of mobile applications is likely to expand the use of wireless payments through applications such as Apple Pay, Google Wallet, Master Card’s Easy Pay, and Softcard Mobile Wallet, all of which enable customers’ phones to serve as m-wallets.
Difficulty: 3 Hard
Topic: Technological Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Technology
Accessibility: Keyboard Navigation
86) Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called
Answer: B
Explanation: Greenwashing is the practice of claiming environmental benefits for your product that are not genuine.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
87) Advertisements for Subway’s Fresh Fit for Kids meal features a child being active, swinging on a tire swing. This ad is in direct response to which social trend?
Answer: C
Explanation: Health and wellness concerns, especially those pertaining to children, are prevalent, critical, and widespread. The Subway ad speaks directly to the issue of childhood obesity and meets the American Heart Association’s criteria for a heart-healthy meal.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
88) The political/regulatory environment comprises political parties, governmental organizations, and
Answer: A
Explanation: The political/regulatory environment comprises political parties, government organizations, and legislation and laws.
Difficulty: 1 Easy
Topic: Political and Legal Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
89) Christy, a marketing executive who was born in 1962, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?
Answer: A
Explanation: Baby Boomers are people born after World War II, between 1946 and 1964.
Difficulty: 3 Hard
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
90) A listing on eBay featured a refurbished iMac desktop computer; interested buyers all ranged in age from teenagers to adults with their own families. These interested buyers were likely from which generational cohort?
Answer: C
Explanation: Generation Y members, also called Millennials, were born between 1977 and 2000 and vary the most in age—from teenagers to adults with their own families.
Difficulty: 2 Medium
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
91) The poorest 10 percent of the U.S. population earned less than $412 per week in 2014. This meant they had
Answer: E
Explanation: In 2014, the average weekly income of the richest 5 percent of the population was more than $3970. The average (median) weekly income for the United States as a whole was $1031, and the poorest 10 percent of the population earned less than $412 per week—which meant they had the lowest purchasing power.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
92) Which statement about the changing ethnicity in the United States is true?
Answer: D
Explanation: The 2010 U.S. Census counted 42 million African American U.S. households, who are more affluent and suburban than previous studies have suggested.
Difficulty: 3 Hard
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
93) According to the text, 14 cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons except
Answer: B
Explanation: Increased income is not mentioned as a reason for this change.
Difficulty: 1 Easy
Topic: Macroenvironmental Factors
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
94) The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.
Answer: B
Explanation: The political/regulatory environment comprises political parties, government organizations, and legislation and laws.
Difficulty: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
95) Which of the following specifically prohibits monopolies?
Answer: A
Explanation: The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition and made fair trade within a free market a national goal.
Difficulty: 1 Easy
Topic: Political and Legal Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
96) What is most likely to happen when inflation increases?
Answer: D
Explanation: When inflation increases, consumers probably don’t buy less food, but instead buy less expensive food to make their dollar go further.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
97) ________ is the cost to the customers or the fee the bank charges those customers for borrowing money.
Answer: A
Explanation: Interest rates represent the cost of borrowing money.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
98) In the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent. This change in value is called
Answer: D
Explanation: Foreign currency fluctuations can influence consumer spending. For instance, in the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
99) When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as
Answer: B
Explanation: Inflation refers to the persistent increase in the prices of goods and services.
Difficulty: 3 Hard
Topic: Economic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
100) From a firm’s perspective, the biggest advantage of RFID is
Answer: A
Explanation: RFID enables a firm to track an item from the moment it was manufactured, through the distribution system, to the retail store, and into the hands of the final consumer. Because they are able to determine exactly how much of each product is at a given point in the supply chain, retailers can also communicate with their suppliers and collaboratively plan to meet their inventory needs.
Difficulty: 2 Medium
Topic: Technological Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
101) Which of the following is an example of greenwashing?
Answer: C
Explanation: Donating money to a school for a reading project is socially responsible, but not necessarily environmentally friendly. This is greenwashing for public approval.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
102) Nearly 50 percent of U.S. adults now recycle their soda bottles and newspapers, compelling marketers to practice
Answer: C
Explanation: Nearly half of U.S. adults now recycle their soda bottles and newspapers, European consumers are even more green. As a result, marketers are compelled to practice green marketing, a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
103) Which of the following is a social trend listed in the text?
Answer: B
Explanation: Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
104) Which ethnic group in the United States represents a marketing opportunity for firms because it tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?
Answer: D
Explanation: Asian Americans make up only about 5.6 percent of the U.S. population, but they also represent the fastest-growing minority population, tend to earn more, have more schooling, and are more likely to be professionally employed or own a business.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
105) Which ethnic group will marketers be paying more attention to because they are not only more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?
Answer: E
Explanation: This describes African Americans.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
106) A generational cohort is a group of people
Answer: D
Explanation: Generational cohorts are groups of consumers of the same generation. They are likely to have similar purchase and consumption behaviors due to their shared experiences and stages of life.
Difficulty: 1 Easy
Topic: Generational Cohorts
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
107) Discuss how privacy concerns have become a current social issue. What technological invention has prompted the rise in concern over privacy?
Answer: The advent of the Internet has created an explosion of accessibility to consumer information. Massive security breaches, like the one Target suffered in 2013, have more and more consumers worldwide sensing a loss of privacy. Every time a consumer surfs the web and clicks on a site, online marketers can place cookies on that user’s computer, showing them where he or she starts, proceeds, and ends the online encounter—as well as what he or she buys, and doesn’t. For many consumers, such close access to their behaviors is an unacceptable invasion of privacy.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
108) Imagine that you have just been made the marketing manager for your university. Your first task is to assess your university’s immediate environment. What questions will you likely ask?
Answer: Answers will vary depending on the type of university, but should include discussion of the following:
Difficulty: 3 Hard
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
109) Irvina is a general practice physician. Her office includes a number of nurses, clerical assistants, and a physician’s assistant. She runs a well-organized practice, but she depends on a variety of corporate partners to create value for her patients. Who are likely to be Irvina’s corporate partners and how do they help or hinder her efforts to create value?
Answer: Answers will vary, but will likely include discussion of the following:
* Vendors, including laboratory testing companies. Many physicians depend on quick, accurate test results to meet the needs of their clients.
* Hospitals. As a general practice physician, Irvina probably regularly sends patients to local hospitals and visits them there.
* Specialty physicians. Irvina probably sends her patients for consultations to a wide array of specialists. She depends on them for expertise and timely service.
Difficulty: 3 Hard
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
110) International marketers new to the United States often struggle to define American culture. What would these international marketers need to study in order to define the term and what would they be likely to learn?
Answer: They would need to study shared meanings, beliefs, morals, values, and customs of Americans. They would likely learn that there are many regional cultures in the United States with differences based on history, ethnicity, and geographic area.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
111) The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. What challenges do marketers face in assessing U.S. culture?
Answer: Many immigrants hold on to cultural values and practices from their home countries, but also embrace American lifestyles and customs. Marketers must be sensitive to such cultural issues to be successful, and they must also consider customer demographics—age, income, market size, education, gender, and ethnicity—to identify specific customer target groups.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
112) Baby Boomers represent a tremendous opportunity for today’s marketers. Who are the Baby Boomers? Based on their age, what might be some products that they would be interested in?
Answer: Baby Boomers are the post–World War II generation born between 1946 and 1964. The oldest Boomers are collecting Social Security and this generational cohort will be the largest population of 50-plus consumers in the United States. Examples will vary, but based on the age of Baby Boomers, they may likely be interested in beauty products that prevent aging, products related to health care and insurance, travel related products, and so on.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
113) “Income distribution in the United States has grown more polarized.” What does this mean in general, and what does it mean especially to marketers in the United States?
Answer: It means the rich are getting richer, while the purchasing power of lower- and middle-income groups is declining. For marketers it has many meanings. Marketers targeting affluent Americans know this group has considerable discretionary spending power. For marketers targeting lower- and middle-income groups, value and price are becoming even more important as their purchasing power languishes.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
114) At almost every major university, some group on campus pressures the university to become “greener.” What does this mean? What does it usually involve? Why would a university want to become greener?
Answer: Becoming greener on a university campus means providing more environmentally friendly goods and services. For a university, it would start with recycling but also might involve green building design, mass transportation, and environmental education. The role of universities is to educate people, including education about consumers’ impact on the environment.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
115) How can marketers identify potential opportunities?
Answer: By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.
Difficulty: 1 Easy
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
116) Gaetana is the new marketing director for a local theater. One of her major responsibilities is to monitor and manage aspects of the theater’s immediate environment. What will Gaetana monitor and manage?
Answer: The three participants in consumers’ immediate environment are the company, competition, and corporate partners.
Difficulty: 2 Medium
Topic: Stakeholders effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
117) Marketers in the United States are learning that Hispanic and other minority groups are not alike. How do cultural differences affect purchase decisions?
Answer: Due to immigration and increasing birthrates among various ethnic and racial groups, the United States continues to grow more diverse. Approximately 80 percent of all population growth in the next 20 years is expected to come from African American, Hispanic, and Asian communities. Minorities now represent approximately one-quarter of the population; by 2050 they will represent about 50 percent. Culture influences what, why, how, where, and when groups buy things. Lifestyle changes within these groups will have an effect on their purchases. For example, as African Americans are increasingly moving to the suburbs, Home Depot has developed particular appeals featuring national figures such as Tom Joyner and Steve Harvey to target this demographic.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
118) Describe the buying power and characteristics of the Hispanic consumer.
Answer: Hispanic buying power was projected to reach $1.3 trillion in 2015, a cumulative increase of around 25 percent compared with 2010. The 50 million Hispanic consumers in the United States have increasing influences on mainstream U.S. culture. Many families have been in the United States for multiple generations, and the consumer behavior of these highly acculturated Hispanics differs little from that of other groups of Americans. For example, they use credit cards, are minimally influenced by advertising and product placements, exhibit greater sensitivity to in-store promotions, and are likely to shop online and from catalogs.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
119) Mary Grace is studying the demographics of the students attending the local elementary school. What information will Mary Grace study?
Answer: She will likely look at gender, race, income, and ethnicity data.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
120) Describe Digital Natives, and explain the impact of technological advances on this group.
Answer: Members of Generation Z (Gen Z) are also known as Digital Natives because people in this group were born into a world that already was full of electronic gadgets and digital technologies such as the Internet and social networks. These technologies are being developed and adopted at an unprecedented rate. Whereas it took 38 years for the radio to be adopted by 50 million people and 13 years for television, it only took 2 years for the same number of consumers to sign up for Facebook.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
121) As the marketing manager of the ABC company, how would you explain the significance of the Millennial market, and how would you target the company’s advertising to this group?
Answer: Members of Generation Y (Gen Y), also called Millennials, include the more than 60 million people born in the United States between 1977 and 2000. As the children of the Baby Boomers, this group is the biggest cohort since the original postwar World War II boom. It also varies the most in age, ranging from teenagers to adults who have their own families.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
122) In recent decades, how has income distribution changed in the United States?
Answer: It has become more polarized, with an increased gap between upper-income and lower-income groups.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
123) Every year Pam reassesses the economic situation in the target markets her company serves. What factors will Pam likely assess?
Answer: She will likely assess changes in inflation, foreign currency fluctuations, and interest rates.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
124) An Uncle Ben’s box of rice has a symbol stating that the packaging is made from 100 percent recycled material and encourages consumers to recycle. Identify the social trend being addressed by Uncle Ben’s.
Answer: Green marketing, which is a strategy by companies to supply customers with environmentally friendly merchandise.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
125) As demographic factors, why are marketers interested in the education level, occupation, and income of consumers?
Answer: Studies show that higher levels of education lead to better jobs and higher incomes. For some products, marketers can combine education level with other data such as occupation and income and obtain pretty accurate predictions of purchase behavior. For instance, a full-time college student with a part-time job may have relatively little personal income but will spend his or her disposable dollars differently than would a high school graduate who works in a factory and earns a similar income. Marketers need to be quite cognizant of the interaction among education, income, and occupation.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
126) Identify three tactics that a mid-priced motel chain might employ to take advantage of the social trends discussed in the text, in hopes of increasing its business. For each tactic, identify the social trend it is based on.
Answer: Answers will vary, depending on the trends the student picks to discuss; however, here are some examples:
* Health and wellness: Add a fitness center, or expand it if one already exists. If free breakfast is offered, make sure that healthy options are offered.
* Greener consumers: Implement a recycling program at the hotel, or expand the use of products made from recycled materials.
* Privacy concerns: Have a secure website for customers to book rooms and don’t share customers’ personal information with other firms.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
127) Why are generational cohorts important to marketers?
Answer: Applying age as a basis to identify consumers is quite useful to marketers. Most media are characterized by the consumers that use it. Although there are similarities between the groups, each cohort represents certain characteristics that influence how a product or service is marketed to it.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
128) As the marketing manager of the ABC company, you understand that gender roles are not as clear as they were years ago. What factors do you consider in your promotion of the company’s products to women?
Answer: Women today outperform men scholastically, earn higher grades on average, and graduate from both high school and college at greater rates. Recent studies also show that approximately 15 percent of married women in Western economies earn more than their husbands do in the workplace.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
129) Name the various social trends that impact marketing, and give one example that demonstrates how each one influences marketing practices.
Answer: Answers will vary, but should include the following social trends: a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
130) Discuss the political and regulatory environment of business as it relates to the protection of consumers. Name and describe at least two laws that had a major impact on fair competition, consumer protection, or industry-specific regulation.
Answer: Students should discuss in general how the political/regulatory environment relates to the marketing of products to consumers. Legislation has been enacted to protect consumers in a variety of ways. First, regulations require marketers to abstain from false or misleading advertising practices that might mislead consumers, such as claims that a medication can cure a disease when in fact it causes other health risks. Second, manufacturers are required to refrain from using any harmful or hazardous materials (e.g., lead in toys) that might place a consumer at risk. Third, organizations must adhere to fair and reasonable business practices when they communicate with consumers. For example, they must employ reasonable debt-collection methods and disclose any finance charges, and they are limited with regard to their telemarketing and e-mail solicitation activities. Laws specifically mentioned might be the 1890 Sherman Antitrust Act, the 1936 Robison-Patman Act, or the 1914 Clayton Act.
Difficulty: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
131) How do the economic factors of inflation, foreign currency fluctuations, and interest rates affect firms’ ability to market goods and services?
Answer: Shifts in the three economic factors make marketing easier for some and harder for others. For instance, when inflation increases, consumers probably don’t buy less food, but they may shift their expenditures from expensive steaks to less expensive hamburgers. Grocery stores and inexpensive restaurants win, but expensive restaurants lose. Consumers also buy less discretionary merchandise, though off-price and discount retailers often gain ground at the expense of their full-price competitors. Similarly, the sales of expensive jewelry, fancy cars, and extravagant vacations decrease, but the sale of low-cost luxuries, such as personal care products and home entertainment, tends to increase.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
132) Name one technological advance that has impacted how consumers research and buy products. Give an example from your own experience.
Answer: Answers will vary, but could discuss smartphones, tablet computers, mobile apps, and Netflix, Pandora, or similar websites.
Difficulty: 3 Hard
Topic: Macroenvironment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
133) How is the balance of ethnicities in the U.S. population changing, and what implications does this have for marketers?
Answer: Because of immigration and increasing birthrates among various ethnic and racial groups, the United States continues to grow more diverse. Since different ethnic groups have different cultural values and buying patterns, marketers must stay on top of this trend and adjust their marketing accordingly.
Difficulty: 2 Medium
Topic: Demographic Environment
Learning Objective: 05-03 Describe the differences among the various generational cohorts.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
134) You are the marketing manager of a fast-food business that wants to appeal to consumers focused on improving their health. Citing an example from the text, what marketing initiatives would you suggest the company take?
Answer: Answers will vary, but should include that new advertising guidelines require marketers to produce food in reasonably proportioned sizes. Advertised food items must provide basic nutrients, have less than 30 percent of their total calories from fat, and include no added sweeteners. The advertising also cannot be aired during children’s programming, and companies cannot link unhealthy foods with cartoon and celebrity figures. For example, the SUBWAY FRESH FIT FOR KIDS™ offerings meet the American Heart Association’s criteria for a heart-healthy meal, since it includes lean protein, fruits, vegetables, grains, and milk, all for less than 500 calories. It has even partnered with Disney in a Star Wars-related TV ad promoting healthy children’s meals.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-04 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
