BUS 346 – Chapter 5

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 whether the media fit with their advertising agenda.
Select one:
a. scenario planning
b. regional culture
c. demographics
d. micromarketing measures
e. country culture
C: demographics
Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups
Select one:
a. will vanish once the recession ends.
b. is attributable to technological expertise of immigrant groups.
c. creates opportunities to provide value to each group.
d. will create inflationary expectations.
e. will disappear as ethnicity becomes a stronger cultural determinant.
C: creates opportunities to provide value to each group
The firms that work along with the focal firm to provide goods and services to consumers are viewed as
Select one:
a. cooperatives.
b. customers.
c. corporate partners.
d. cartels.
e. cultural cohorts.
C: corporate partners
The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group’s culture
Select one:
a. can be used as a relevant identifier for a particular target group.
b. competes with or complements U.S. traditional culture.
c. is an important immediate marketing environment variable.
d. is socially important.
e. is passed from generation to generation orally or by written guides.
A: can be used as a relevant identifier for a particular target group
The difference between a firm’s immediate marketing environment and its macroenvironment is that the macroenvironment is
Select one:
a. the same as the immediate environment.
b. external.
c. easier to understand.
d. internal.
e. easier to control.
B: external
Strategic efforts to supply consumers with environmentally friendly merchandise are called
Select one:
a. earth marketing.
b. green marketing.
c. the green generation.
d. the inconvenient truth.
e. reduce, reuse, recycle.
B: green marketing
The many demands on consumers today have made it more difficult for marketers to
Select one:
a. deliver products just-in-time.
b. decide what to offer.
c. differentiate between the needs of seniors and Baby Boomers.
d. offer green marketing solutions.
e. grab consumers’ attention.
E: grab consumers’ attention
David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about
Select one:
a. increased costs of air travel.
b. the time-poor society.
c. green marketing.
d. federal restrictions on advertising.
e. privacy of communications.
B: the time-poor society
The political/regulatory environment comprises political parties, governmental organizations, and
Select one:
a. interest groups.
b. legislation and laws.
c. citizens.
d. for-profit and nonprofit businesses.
e. international influences.
B: legislation and laws
According to the text, younger consumers deal with having a lack of leisure time by
Select one:
a. spending less time on the phone.
b. multitasking.
c. eating unhealthy fast food meals.
d. sleeping less.
e. watching television programs on their laptops.
B: multitasking
The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called
Select one:
a. recession.
b. inflation.
c. interest destabilization.
d. foreign currency fluctuations.
e. global financial impact.
D: foreign currency fluctuations
Which of the following is NOT a social trend listed in the text?
Select one:
a. greener consumers
b. technological advances
c. health and wellness
d. privacy concerns
e. thrift
B: technological advances
When you register your telephone number with the Do Not Call Registry, you are responding to a need for
Select one:
a. tactical communication skills.
b. privacy.
c. lower phone bills.
d. enhanced information flow.
e. marketing contact.
B: privacy
Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except
Select one:
a. creating ready-to-eat meals that would allow Gretchen to have freshly prepared meals.
b. developing meals with precut and premeasured ingredients that would allow Gretchen to cook them at home.
c. using creative checkout procedures so Gretchen can finish her shopping quickly.
d. staying open late.
e. advertising their products heavily on daytime television.
E: advertising their products heavily on daytime television
Marketers in the United States are paying increasing attention to ethnic groups because
Select one:
a. government subsidies assist marketers attempting to communicate value to these groups.
b. they are more susceptible to marketing messages.
c. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.
d. they represent a majority of the population in non-urban areas of the country.
e. country culture is replacing regional culture as a key marketing consideration.
C: approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups
When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that
Select one:
a. middle-income consumers are quickly becoming upper-income consumers.
b. there is increasing purchasing power among lower income groups.
c. income in the United States has become more unevenly distributed.
d. everyone has been equally affected by the recession.
e. everyone is equal.
C: income in the United States has become more unevenly distributed
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 to
Select one:
a. tailor their marketing messages.
b. replace services with products.
c. meet inventory needs.
d. increase value to the consumer through media effectiveness promotion.
e. communicate with consumers on social media sites.
C: meet inventory needs
Which ethnic group not only tends to be more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?
Select one:
a. Hispanic
b. Asian
c. Pacific Islander
d. Caucasian
e. African American
E: African American
One drawback to marketing products on smartphones compared to other kinds of web experiences is
Select one:
a. the cost of mobile apps makes it prohibitive for most companies.
b. more people access the Web through laptops than smartphones.
c. few people use their smartphones for shopping.
d. consumers are cynical and don’t believe advertising on smartphones.
e. the smaller screen means that less information must convey the same brand image.
E: the smaller screen means that less information must convey the same brand image
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.
Select one:
a. technological
b. communication
c. social
d. political/regulatory
e. Constitutional
D: political/regulatory
One of the goals of value-based marketing is
Select one:
a. to determine the value of the brand.
b. to offer greater value than competitors offer.
c. to sell products for the highest possible price.
d. to sell to all consumers, regardless of their needs.
e. to provide the greatest value for the least profit.
B: to offer greater value than competitors offer
Select the statement that best describes the key traits of Generation Y.
Select one:
a. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather.
b. This generation—including its oldest members—has had access to the Internet for their entire lives.
c. This generation was the first generation of latchkey children.
d. This generation puts a strong emphasis on work/life balance, and some are technologically savvy.
e. This generation focuses on health care and wellness services.
D: this generation puts a strong emphasis on work/life balance, and some are technologically savvy
By offering environmentally responsible products, green marketers
Select one:
a. undercut prices of non-environmentally responsible marketers.
b. add value that other products do not have.
c. keep costs much lower than those of competitors.
d. all of these
e. make consumers feel guilty for buying other products.
B: add value that other products do not have
The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely
Select one:
a. make it more difficult for companies to differentiate their products.
b. make it difficult to collect demographic information.
c. create a demand for a new generational cohort.
d. reduce regional cultural differences.
e. decrease national cultural identity.
D: reduce regional cultural differences
Which ethnic group in the U.S. tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?
Select one:
a. Northern European
b. Hispanic
c. Asian
d. Middle Eastern
e. African American
C: Asian
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
Select one:
a. red marketing.
b. greenwashing.
c. greenbaiting.
d. green puffery.
e. fake greening.
B: greenwashing
Which generation is also known as Millennials?
Select one:
a. the Digital Natives
b. Gen Z
c. Gen Y
d. Baby Boomer
e. Gen X
C: Gen Y
Which of the following is an example of greenwashing?
Select one:
a. A company markets a product made from recycled glass bottles.
b. The Smiths installed energy-saving light bulbs in their rental apartment buildings.
c. A company donates money to a school reading project so it can advertise itself as environmentally friendly.
d. A company charges more for a hybrid car than for a similar gas model.
e. The corner Laundromat only stocks phosphate-free detergent in its vending machines.
C: a company donates money to a school reading project so it can advertise itself as environmentally friendly
A generational cohort is a group of people
Select one:
a. who are of the same generation.
b. who are not open to new things.
c. with the same beliefs and values.
d. who grew up and went to school together.
e. who share similar characteristics.
A: who are of the same generation
When an office supply store offers self-checkout, extended hours at its stores, and online shopping with next-day delivery, it is trying to address what social trend?
Select one:
a. health and wellness
b. greener consumption
c. time-poor society
d. tech savvy
e. privacy concerns
C: time-poor society
The members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed.
Select one:
a. Generation X
b. Generation W
c. Baby Boomers
d. Generation Y
e. Generation Z
E: Generation Z
Though Asian Americans comprise only 6 percent of the U.S. population, they represent
Select one:
a. all of these
b. the fastest growing minority population.
c. a large proportion of the minorities in the Midwest.
d. the easiest minority group to access.
e. a uniform group of consumers with a common language and cultural background.
B: the fastest growing minority population
The centerpiece of the marketing environment analysis framework is
Select one:
a. competitive intelligence.
b. corporate partners.
c. green marketing.
d. culture.
e. consumers.
E: consumers
What percentage of U.S. adults now recycle their soda bottles and newspapers?
Select one:
a. 90%
b. 50%
c. 75%
d. 10%
e. 20%
B: 50%
When Diana went to college, tuition was $650 per semester. Now that same college charges $6500 per semester. This number reflects a persistent increase in price known as
Select one:
a. interest.
b. currency fluctuation.
c. deflation.
d. recession.
e. inflation.
E: inflation
When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT
Select one:
a. purchasing power.
b. age.
c. currency exchange rates.
d. interest rates.
e. inflation.
B: age
For Nike’s annual Women’s Marathon in San Francisco, the participants received all of the following EXCEPT
Select one:
a. massages.
b. a necklace from Tiffany’s.
c. chocolate.
d. pedicures.
e. Nike shoes.
E: Nike shoes
From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth.
Select one:
a. Generation Z
b. Generation W
c. Generation Y
d. Generation X
e. Baby Boomers
E: Baby Boomers
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.
Select one:
a. cultural values
b. regional cultures
c. inflationary expectations
d. political affiliations
e. purchase behavior
E: purchase behavior
Marketers cater to the ________ cohort with larger fonts in signage and seating options in stores.
Select one:
a. Gen X
b. Gen Y
c. Gen Z
d. Millennials
e. Baby Boomer
E: Baby Boomer
Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in
Select one:
a. coastal resort areas.
b. New York, Los Angeles, and Chicago.
c. smaller states.
d. rural areas.
e. Great Lakes agricultural areas.
B: New York, Los Angeles, and Chicago
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, the text notes the increasing popularity of
Select one:
a. flu shots.
b. high-carbohydrate diets.
c. yoga.
d. cooking shows on TV.
e. juicing.
C: yoga
In the early 1990s, 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. For Mexican consumers
Select one:
a. U.S.-made products became less attractive to purchase.
b. Mexican products became more expensive while U.S.-made products became comparatively less expensive.
c. Mexican products became less expensive while U.S.-made products became comparatively more expensive.
d. incomes rose dramatically.
e. interest rates fell to compensate for increased inflation.
B: Mexican products became more expensive while U.S.-made products became comparatively less expensive
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?
Select one:
a. dress
b. social trends
c. symbols
d. demographics
e. language
E: language
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.
Select one:
a. needs, wants, and ability to purchase
b. demographics
c. just-in-time processes
d. ethnic background
e. culture
A: needs, wants, and ability to purchase
Christy, who was born in 1955, advocated for casual Friday at her workplace. Christy is a member of which generational cohort?
Select one:
a. Gen Y
b. Gen Z
c. Baby Boomer
d. Millennials
e. Gen X
C: Baby Boomer
The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
Select one:
a. demographics.
b. social concerns.
c. culture.
d. generational cohorts.
e. religion
C: culture
Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was likely shocked and concerned about
Select one:
a. his lack of privacy.
b. the marketer’s lack of cultural awareness.
c. his financial situation.
d. his technological comfort.
e. his telephone bill.
A: his lack of privacy
Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors’ strengths, weaknesses, and
Select one:
a. demographics.
b. satisfaction quotient as perceived by customers.
c. likely reaction to Yuri’s promotional activities.
d. just-in-time processes.
e. ethical values.
C: likely reaction to Yuri’s promotional activities
What is MOST likely to happen when inflation increases?
Select one:
a. Consumers buy fewer personal care and home entertainment products.
b. Off-price and discount retailers suffer from lower sales.
c. Consumers buy less food.
d. Consumers buy more discretionary merchandise.
e. Consumers buy lower priced foods.
E: consumers buy lower priced foods
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 use 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
Select one:
a. are important to all generational cohorts.
b. are easiest to satisfy.
c. provide minimal core value.
d. competitors have tried and failed to satisfy.
e. match its core competencies.
E: match its core competencies
Which of these is a macroenvironmental factor?
Select one:
a. company
b. corporate partners
c. competencies
d. competition
e. culture
E: culture
Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many American consumers’ concept of
Select one:
a. scenario planning.
b. green marketing.
c. culture.
d. demographics.
e. value.
E: value
For some products, marketers can combine education level with other data like occupation and income to obtain
Select one:
a. the educational value equation.
b. complete profiles of individual consumers.
c. useful predictions of purchase behavior.
d. consumers’ value sensitivity quotient (VSQ).
e. a sense of consumers’ regional culture.
C: useful predictions of purchase behavior
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
Select one:
a. regional culture.
b. country culture.
c. the Walmart Effect.
d. generational cohort characteristics.
e. a red/blue marketing campaign.
B: country culture
Those who graduate from college tend to earn an annual salary that averages about _______ more than a high school graduate averages.
Select one:
a. $10,000
b. $55,500
c. $49,000
d. $21,500
e. $82,000
D: $21,500
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
Select one:
a. to avoid cultural clashes.
b. for each generational cohort.
c. from a consumer’s point of view.
d. to sensitize organization members to ethical values.
e. to value each person in the organization.
C: from a consumer’s point of view
In the immediate marketing environment, the first factor that affects the consumer is
Select one:
a. the firm itself.
b. technological advances.
c. social trends.
d. demographics.
e. cultural values.
A: the firm itself
Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are more cynical than their parents, and are less likely to believe advertising claims than the generation(s) before them.
Select one:
a. Generation Z
b. Baby Boomers
c. Generation X
d. Generation Y
e. Generation W
D: Generation Y
Which statement about the changing ethnicity in the United States is TRUE?
Select one:
a. African American U.S. households are more affluent than previous studies suggested.
b. Hispanics differ vastly from other groups in America in terms of consumer behavior.
c. Minorities now represent almost half of the population in the United States.
d. Asian Americans are the slowest growing minority population.
e. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level.
A: African American U.S. households are more affluent than previous studies suggested
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 would be experimenting with what is most likely the next expected development in mobile technology, which is
Select one:
a. wireless payments from mobile devices.
b. RFID tags.
c. devices that block smartphone usage in retail stores.
d. mobile devices completely replacing desktop and laptop computers.
e. location-based social media applications.
A: wireless payments form mobile devices
Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?
Select one:
a. green marketing
b. time-poor society
c. technological advances
d. regulatory issues
e. cultural diversity
A: green marketing
A firm’s macroenvironment includes all of the following EXCEPT
Select one:
a. demographics.
b. political/legal issues.
c. competition.
d. economics.
e. culture.
C: competition
As director of a small art gallery, one of Frederica’s major concerns is the preferences of the people who buy her artists’ work. Frederica recognizes that the center of her marketing efforts is
Select one:
a. the arts movement.
b. her target customers.
c. competing art galleries.
d. artistic social responsibility.
e. profits.
B: her target customers
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
Select one:
a. regulatory factors.
b. regional culture.
c. social trends.
d. country culture.
e. generational factors.
B: regional culture
________ is the cost to the customers or the fee the bank charges those customers for borrowing money.
Select one:
a. A service charge
b. A user fee
c. Interest
d. A tax
e. A tariff
C: Interest
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 new term for this practice is
Select one:
a. environmental exploitation.
b. virtual greening.
c. greenwashing.
d. deceptive advertising.
e. enviromarketing.
C: greenwashing
The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents.
Select one:
a. Generation Y
b. Generation W
c. Generation X
d. Generation Z
e. Baby Boomers
D: Generation Z
Marketers should not assume that they can target all Asian consumers in the United States with one strategy because
Select one:
a. each major city tends to have only one group of Asians in large numbers.
b. one strategy is likely to be more expensive than multiple strategies.
c. there are not enough Asians in the United States to effectively target.
d. Asians do not respond to marketing efforts.
e. they speak different languages and come from different cultures.
E: they speak different languages and comes from different cultures
Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers
Select one:
a. would prefer an SUV.
b. are economically irrational.
c. are responding to global corporate pressure for social responsibility.
d. are greenwashing.
e. value contributing to a greener environment.
E: value contributing to a greener environment
When studying culture, the challenge for marketers is to determine whether culture
Select one:
a. offers opportunities for competitors.
b. reinforces stereotypes.
c. can help to identify a particular group that might be interested in the marketer’s products.
d. is related to educational achievement.
e. is regional or subregional.
C: can help to identify a particular group that might be interested in the marketer’s products
The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was one of the results mentioned in the text?
Select one:
a. Dishonest telemarketers have still been able to get through.
b. Consumers received more telemarketing calls than ever.
c. Companies have increased their emphasis on telemarketing approaches.
d. The Do Not Call Registry was disbanded due to its ineffectiveness.
e. Honest telemarketers found it easier to reach customers.
A: dishonest telemarketers have still been able to get through
As a retail clothing store manager, Randy 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. Randy’s efforts will likely help him to
Select one:
a. avoid the need to understand regional culture.
b. implement just-in-time marketing promotions.
c. identify potential opportunities.
d. avoid cognitive dissonance.
e. achieve cost savings.
C: identify potential opportunities
Typical demographic data include all of the following EXCEPT
Select one:
a. education.
b. gender.
c. language differences.
d. race. Incorrect
e. income.
C: language differences
Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
Select one:
a. increased choices.
b. protection from false advertising.
c. fair debt collection practices. Incorrect
d. fewer competitors.
e. higher prices.
A: increased choices