Marketing 7th Edition by Dhruv Grewal - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Marketing, 7e (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 …
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Marketing 7th Edition by Dhruv Grewal – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Marketing, 7e (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, corporate partners, and the physical environment 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, corporate partners, and the physical environment 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: The marketing firm must consider the entire business process, all from a consumer’s point of view.
Difficulty: 1 Easy
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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, corporate partners, and the physical environment 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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The four elements of the consumer’s immediate environment are the company, competition, corporate partners, and the physical environment.
Answer: TRUE
Explanation: Consumers may be influenced directly by the immediate actions of the focal company, the company’s competitors, corporate partners, and the physical environment 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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) Demographics are transmitted by words, literature, and institutions from generation to generation.
Answer: FALSE
Explanation: Transmitted by words, literature, and institutions, culture is passed down from generation to generation and learned over time.
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
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 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) Macroenvironmental factors include the company, competition, corporate partners, and the physical environment.
Answer: FALSE
Explanation: Macroenvironmental factors are external factors 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 also called Millennials.
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.
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
11) As the children of the Baby Boomers, Generation X is the biggest cohort since the original post–World War II boom.
Answer: FALSE
Explanation: As the children of the Baby Boomers, Generation Y is the biggest cohort since the original post–World War II boom.
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
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: 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
13) According to trend watchers and marketing researchers, consumers are concerned about the vast disparity in income.
Answer: FALSE
Explanation: What trend watchers and market researchers tell us, over and over, is that consumers are seeking healthier food options.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.
Answer: TRUE
Explanation: This is the definition of culture. Culture can be transmitted by words, literature, and institutions; it is passed down from generation to generation and learned over time.
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 can 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: Feedback: 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 cannot be aired during children’s programming, and companies cannot link unhealthy foods with cartoon and celebrity figures.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
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 its green credentials or describing how it helps the environment, rather than actually spending these resources on developing and expanding environmentally sound practices.
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
18) Google’s self-driving cars have been the most widely talked about product, in part because its driverless car program, which began in 2009, is the oldest.
Answer: TRUE
Explanation: Google’s self-driving cars have been the most widely talked about product, in part because its driverless car program, which began in 2009, is the oldest. The Google car might not be ready yet, but it seems to be leading the pack and improving rapidly.
Difficulty: 1 Easy
Topic: Technological Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
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 Examine the technological advances that are influencing marketers.
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 Examine the technological advances that are influencing marketers.
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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
22) Parties that work with the focal firm are its corporate partners.
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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
23) Jean, who lives in Boston, refers to Pepsi as “tonic,” while Paul, who lives in Chicago, calls it “pop.” These different terms are an example of
Answer: A
Explanation: The region in which people live in a particular country has its own regional culture that affects many aspects of people’s lives, including their 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 ________ in marketing.
Answer: D
Explanation: Typical demographics include age, gender, race, and income.
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) 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
Answer: C
Explanation: 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) As a retail clothing store manager, Sandy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Sandy’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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
27) The centerpiece of the marketing environment analysis framework is
Answer: E
Explanation: The consumer is the center of all marketing efforts.
Difficulty: 1 Easy
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) The center of all marketing efforts is
Answer: B
Explanation: The consumer is the centerpiece of the marketing environment.
Difficulty: 1 Easy
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) The U.S. Centers for Disease Control and Prevention (CDC) estimates that approximately 87.5 percent of U.S. adults are
Answer: B
Explanation: The U.S. Centers for Disease Control and Prevention (CDC) estimates that approximately 87.5 percent of U.S. adults are obese.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Bryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Bryan’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, corporate partners, and the physical environment 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’ ________ change(s) 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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) Select the statement that best describes the key traits of Generation Y.
Answer: A
Explanation: Generation Y is the biggest cohort since the original post–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: 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
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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
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. An amendment to the Telemarketing Sales Rule established a National Do Not Call Registry, requiring telemarketers to abstain from calling consumers who opt to be placed on the list.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
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 company’s capabilities, its competitors, its corporate partners, and the physical environment.
Difficulty: 2 Medium
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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: In the immediate environment, the first factor that affects the consumer is the firm itself. Successful marketing firms focus on satisfying customer needs that match their core competencies.
Difficulty: 2 Medium
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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: In the immediate environment, the first factor that affects the consumer is the firm itself. Successful marketing firms focus on satisfying customer needs that match their core competencies.
Difficulty: 3 Hard
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) Nau works with its ________ to develop socially responsible outdoor and urban apparel.
Answer: A
Explanation: Nau works with its corporate partners to make modern urban and outdoor apparel from renewable sources such as sustainably harvested eucalyptus and recycled plastic bottles.
Difficulty: 2 Medium
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
41) Parties that work along with the focal firm to provide goods and services to consumers are viewed as
Answer: B
Explanation: Parties that work with the focal firm are its corporate partners.
Difficulty: 1 Easy
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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: Parties that work with the focal firm are its corporate partners.
Difficulty: 3 Hard
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment 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 it 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: The region in which people live in a particular country has its own regional culture that affects many aspects of people’s lives, including their preferences.
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 studying culture, the challenge for marketers is to determine whether culture
Answer: A
Explanation: The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people. Our various cultures influence what, why, how, where, and when we buy.
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 were indicative of
Answer: C
Explanation: Country culture consists of a country’s shared beliefs and values, which included a strong thread of patriotism after the World Trade Center attacks. The visible nuances of a country’s culture, can include artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors, tastes, and food 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
49) The United States has often been called the “melting pot” society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group’s culture
Answer: D
Explanation: The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people. Our various cultures influence what, why, how, where, and when we buy.
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: The region in which people live in a particular country has its own regional culture that affects many aspects of people’s lives, including their 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
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: The region in which people live in a particular country has its own regional culture that affects many aspects of people’s lives. 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, gender, race, and income. 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, gender, race, and income 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: 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
56) Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to
Answer: C
Explanation: Gender is a demographic variable, and these programs do tend to attract different genders; thus, this difference in advertising is based on demographic information.
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
57) ________ is(are) 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: 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
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 electronic gadgets and 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: 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
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.
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
60) According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans’ total net worth?
Answer: D
Explanation: Income distribution in the United States has grown more polarized. The wealthiest 10 percent control 76 percent of Americans’ total net worth; in comparison, the bottom 50 percent control only 1 percent.
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
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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
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 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
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: Upper-income, middle-income, and lower-income individuals are all consumers, and all can be offered value in different ways. The broad range in incomes creates marketing opportunities at both the high and low ends of the market.
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
64) Population estimates show that by the year 2050, nearly 23 percent of the population in the United States will come from which group?
Answer: A
Explanation: 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, nearly 23 percent of the population Hispanic, by 2055 there will not be an ethnic minority in the United States.
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 purchase 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) Which of the following is true regarding modern gender roles?
Answer: C
Explanation: Years ago gender roles appeared clear, but those male and female roles have been blurred. In particular, women today outperform men scholastically, earn higher grades on average, and graduate from both high school and college at greater rates. These shifts in status, attitudes, and behaviors affect the way many firms need to design and promote their products and services.
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) Which of the following is true of changing gender roles?
Answer: B
Explanation: Women outperform men scholastically, they graduate from high school and college at greater rates than men, and the percentage of seats in Congress held by women has been increasing steadily in recent years. About 42 percent of gamers are female, and approximately 38 percent of married women outearn their husbands.
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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
70) Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in
Answer: C
Explanation: Although they can be found anywhere, many foreign-born Americans and recent immigrants tend to concentrate in a handful of metropolitan areas, such as New York, Los Angeles, San Francisco, and Chicago.
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
71) Though Asian Americans comprise only about 5.6 percent of the U.S. population, they 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 have more spending power, have more schooling, and be more likely to be professionally employed or own a business.
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 refers to the marketing of environmentally friendly, sustainable merchandise or service.
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
73) Which of the following is a critical ethical consideration for green marketers?
Answer: D
Explanation: Feedback: When they undertake green marketing strategic efforts, firms work to supply customers with environmentally friendly, sustainable merchandise and services. Sustainability is a critical ethical consideration for marketers.
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
74) Many American consumers are purchasing hybrid automobiles even though they are more expensive than conventional compact cars. These consumers
Answer: A
Explanation: Firms are actively engaging in sustainable practices in terms of how they go about manufacturing products and provisioning services, as well as the types of products and services that they offer. These consumers are willing to pay more for environmentally friendly products because care for the environment is something that adds value.
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
75) Every time a consumer surfs the web and clicks on a site, online marketers can place ________ on that user’s computer, showing them where the user starts, proceeds, and ends the online encounter—as well as what the user buys and doesn’t buy.
Answer: B
Explanation: 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 the user starts, proceeds, and ends the online encounter—as well as what the user buys and doesn’t buy. For many consumers, such close access to their behaviors is an unacceptable invasion of privacy.
Difficulty: 1 Easy
Topic: Technological Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Remember
AACSB: Technology
Accessibility: Keyboard Navigation
76) Which of the following are commonly found in distribution and fulfillment centers to fill orders for stores or individual customers?
Answer: B
Explanation: Robots in all shapes, sizes and forms are entering the marketplace and performing work that previously was the responsibility of human workers. They already are commonly in distribution and fulfillment centers to fill orders for stores or individual customers.
Difficulty: 1 Easy
Topic: Technological Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
77) In what country was a law recently passed requiring grocery stores to donate food to charity that would otherwise be tossed?
Answer: A
Explanation: In 2010, grocery stores and restaurants threw out almost $47 billion worth of food, much of which was not past its expiration date or otherwise uneatable. This is not the case in France, however. A recently passed law requires grocery stores to donate food to charity that would otherwise be tossed.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
78) One of the UN Sustainable Development Goals is to
Answer: C
Explanation: One of the UN Sustainable Development Goals is to reduce hunger, and reducing food waste is critical to that effort.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) 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: Marketers monitor the general economic situation, both in their home country and abroad, because it affects the way consumers buy merchandise and spend money. Some major factors that influence the state of an economy include the rate of inflation, foreign currency exchange rates, and interest rates.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
80) 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: Foreign currency fluctuations can influence consumer spending. 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 Examine the technological advances that are influencing marketers.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
81) Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
Answer: A
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: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
82) Which of the following groups has never lived without easy access to the Internet and other digital technologies?
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: 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
83) Which of these is a macroenvironmental factor?
Answer: A
Explanation: Corporate partners, competition, and company are all part of the immediate environment.
Difficulty: 1 Easy
Topic: Macroenvironmental Factors
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
84) 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. When they undertake green marketing strategic efforts, firms work to supply customers with environmentally friendly, sustainable merchandise and services.
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
85) 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: 05-03 Identify various social trends that impact marketing.
Bloom’s: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
86) For most makers of ________, especially those that resonate strongly with consumers’ sense of nostalgia and childhood memories, changing ingredients to healthier options represents a grave risk.
Answer: A
Explanation: Feedback: For most makers of processed foods, especially those that resonate strongly with consumers’ sense of nostalgia and childhood memories, changing ingredients to healthier options represents a grave risk.
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Technology
Accessibility: Keyboard Navigation
87) 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 practice 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
88) Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this concern, the text notes the increasing popularity of
Answer: C
Explanation: Consumer spending on yoga classes, mats, and clothing has increased from $10 billion to $16 billion in just four years.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
89) 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 Examine the technological advances that are influencing marketers.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
90) Christie, a marketing executive who was born in 1955, 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: After World War II, the birthrate in the United States rose sharply, resulting in a group known as the Baby Boomers, the 78 million Americans born between 1946 and 1964.
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
91) Which generation’s members are also known as Millennials?
Answer: C
Explanation: 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.
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
92) The poorest 25 percent of the U.S. population earned ________ or less per year in 2016.
Answer: E
Explanation: For 2016, the average (median) yearly income of the richest 5 percent of the population was $225,252 or more, the average (median) weekly income for the United States as a whole was $59,039, and the poorest 25 percent of the population earned $24,002 or less per year.
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
93) Which statement about the changing ethnicity in the United States is true?
Answer: D
Explanation: Thirty-two percent of black households earn more than $75,000, and it is expected that a majority of black Americans now live in the suburbs.
Difficulty: 3 Hard
Topic: Social-cultural 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
94) In 2016, in response to the threats of climate change, the United Nations rectified the
Answer: B
Explanation: In 2016, in response to the threats of climate change, the United Nations rectified the Paris Accord. Countries participating in this accord agreed to reduce greenhouse gas emission as they see best fit, limiting the atmosphere to rise 2°C in this century.
Difficulty: 1 Easy
Topic: Macroenvironmental Factors
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
95) 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: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
96) 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: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
97) What is most likely to happen when inflation increases?
Answer: D
Explanation: Inflation refers to the persistent increase in the prices of goods and services. Increasing prices cause the purchasing power of the dollar to decline; in other words, the dollar buys less than it used to. 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: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
98) ________ 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: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
99) 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 late 2017, the euro was once again slightly less than $1. 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 late 2017, the euro was once again slightly less than $1.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
100) When Diane 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: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
101) The Child Protective Act
Answer: A
Explanation: The Child Protective Act prohibits the sale of harmful toys and components to children and sets the standard for child-resistant packaging.
Difficulty: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
102) 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
103) Nearly what percentage of U.S. adults now recycle their soda bottles and newspapers?
Answer: C
Explanation: Nearly half of U.S. adults now recycle their soda bottles and newspapers, and European consumers are even more green.
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
104) 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 sustainability, health and wellness considerations, and more efficient utilization and distribution of food.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
105) Which ethnic group in the United States 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 have a lot of spending power, 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
106) Which ethnic group tends to be not only more affluent and suburban than previously thought, but also younger, with 58 percent between the ages of 15 and 49 years?
Answer: E
Explanation: In 2016 African American U.S. households had a mean (average) yearly income of over $49,000. They tend to be younger, such that 58 percent are between the ages of 15 and 49 years (a key age demographic for many marketers). Thirty two percent of black households earn more than $75,000, and it is expected that a majority of black Americans now live in the suburbs.
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
107) A generational cohort is a group of people
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: 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
108) Discuss how privacy concerns have become a current social issue. What technological invention has prompted the rise in concern over privacy?
Answer: More and more consumers worldwide sense a loss of privacy. At the same time that the Internet has created an explosion of accessibility to consumer information, improvements in computer storage facilities and the manipulation of information have led to more and better security and credit check services. In recent years there have been a number of hacking scandals. However, the largest one came to light in October 2017, when Yahoo announced that all 3 billion of its accounts had been hacked in 2013. Yahoo states that the information that was hacked did not include bank account or credit card data, but it did include security questions and back-up e-mail addresses, making other accounts of those who were hacked also vulnerable. Although companies continuously develop new ways to keep customer information safe, some observers suggest hackers are just getting more effective.
Difficulty: 1 Easy
Topic: Social-cultural Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
109) 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:
Consumers—Who are the university’s current consumers? What are their demographic profiles, or recent changes in composition?
Company’s abilities (in this case, the university’s)—What is the university doing well, differently from the past? What are its strengths and weaknesses?
Competition—Who are the competitors? What are their strengths and weaknesses?
Corporate partners—For a university, likely partners include alumni, the community, and vendors, particularly technology vendors. What are they offering? How can they help the university?
Physical environment—How close is the university to restaurants, hotels, and shopping? What is the make-up of the campus buildings and facilities?
Difficulty: 3 Hard
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
110) 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:
Difficulty: 3 Hard
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
111) 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
112) 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: The challenge for marketers is to have products or services identifiable by and relevant to a particular group of people. Our various cultures influence what, why, how, where, and when we buy.
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
113) 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
114) “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: 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. Although the trend to wealthy households outpacing both poor and middle classes is worldwide, it is particularly prominent in the United States. 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
115) 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, sustainable 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Knowledge Application
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116) 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, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Remember
AACSB: Analytical Thinking
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117) 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 four factors in consumers’ immediate environment are the company’s capabilities, competition, corporate partners, and the physical environment.
Difficulty: 2 Medium
Topic: Stakeholders Effect on Marketing Strategy
Learning Objective: 05-01 Outline how customers, the company, competitors, corporate partners, and the physical environment affect marketing strategy.
Bloom’s: Understand
AACSB: Analytical Thinking
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118) 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.
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
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119) 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.
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
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120) Grace is studying the demographics of the students attending the local elementary school. What information will Grace study?
Answer: Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Grace 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
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121) 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Analytical Thinking
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122) As the marketing manager of the ABC company, which cohort group would you target that varies most in age from teenagers to adults who have their own families? 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 post–World War II boom. It also varies the most in age, ranging from teenagers to adults who have their own families.
Answer: Answers will vary.
Difficulty: 1 Easy
Topic: Demographic Environment
Learning Objective: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Apply
AACSB: Analytical Thinking
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123) In recent decades, how has income distribution changed in the United States?
Answer: 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. Although the trend of wealthy households outpacing both poor and middle classes is worldwide, it is particularly prominent in the United States.
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
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124) Every year Pamela reassesses the economic situation in the target markets her company serves. What factors will Pamela likely assess?
Answer: Pamela will likely assess changes in inflation, foreign currency exchange rates, and interest rates.
Difficulty: 2 Medium
Topic: Economic Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
125) 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, sustainable merchandise and services.
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
126) As demographic factors, why are marketers interested in the education level, occupation, and income of consumers?
Answer: 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 cognizant of the interaction among education, income, and occupation.
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
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127) 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:
Difficulty: 3 Hard
Topic: Social-cultural Environment
Learning Objective: 05-03 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
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128) Why are generational cohorts important to marketers?
Answer: 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. 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
129) 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: Years ago gender roles appeared clear, but those male and female roles have been blurred. In particular, women today outperform men scholastically, earn higher grades on average, and graduate from both high school and college at greater rates.
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
130) 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: 05-03 Identify various social trends that impact marketing.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
131) 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 Robinson-Patman Act, or the 1914 Clayton Act.
Difficulty: 2 Medium
Topic: Political and Legal Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
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132) 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 Examine the technological advances that are influencing marketers.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
133) 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, or similar websites.
Difficulty: 3 Hard
Topic: Technological Environment
Learning Objective: 05-04 Examine the technological advances that are influencing marketers.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
134) 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: 05-02 Explain why marketers must consider their macroenvironment when they make decisions.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
135) 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, because they feature lean protein, fruits, vegetables, grains, and milk, with fewer than 500 calories. The company also has partnered with Disney in a Star Wars-related television ad promoting healthy meals.
Difficulty: 2 Medium
Topic: Social-cultural Environment
Learning Objective: 05-03 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.
