Q&A Hero

Q: A period of economic activity characterized by negative growth, which reduces demand for goods and services, is called: a. stagnation b. inflation c. recession d. price escalation e. parity

Q: _____ is measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year. a. Inflation b. Recession c. Depression d. Consumer break-even e. Price escalation

Q: All of the following are taken into account in a cost of living index EXCEPT: a. income b. housing c. food and groceries d. health care e. entertainment

Q: The higher your _____, the higher your purchasing power: a. gross income b. social class c. disposable income d. cost of living e. inflation index

Q: _____ is measured by comparing the relative cost of a standard of goods and services in different geographic areas. a. Gross individual profit b. Purchasing power c. Net profit d. Relative pricing e. Price escalation

Q: Four dollar a gallon gasoline was unimaginable when mechanical gas pumps first appeared in the United States in the 1930s. Their spinning dials cannot register sales beyond $99.99, which will not fill up many SUVs. The pumps can be modernized for about $650, but the company that provides this service has a huge backlog. This is an example of how _____ factors affect small convenience stores and service stations. a. technological and cultural b. competitive and natural c. economic and technological d. cultural and economic e. demographic and marketing mix

Q: China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. The move is hitting hard at the Japanese who consume 25 billion sets of wooden chopsticks annually. Almost all of the chopsticks used in Japan come from China. The price of wooden chopsticks in Japan has increased by almost 50 percent. The price increase influences which factor of the external environment of restaurant owners in Japan? a. economic b. technological c. demographic d. social e. ethnicity

Q: After-tax income is referred to as: a. gross income b. marginal income c. purchasing income d. unencumbered income e. disposable income

Q: Interest rates, inflation, and consumer income that influence the marketing environment are called _____ factors. a. economic b. socio-demographic c. political d. government e. consumption

Q: A company that specializes in planning and organizing large family reunions has hired you to identify 25 geographic target markets that are also examples of multicultural societies. What types of locations should you offer this firm? a. cities that have historically had low immigration rates b. traditional test markets c. regions that are dominated by one ethnic group and that have multiple smaller ethnic groups d. unindustrialized areas e. locations in which all major ethnic groups in the area are roughly equally represented

Q: Consider a small southern town where almost half the residents are African Americans and the rest whites. Nearly all of the residents can trace their ancestors' arrivals in the community back at least four generations. This town is an example of a: a. market aggregation b. mass market c. psychographic target market d. metropolitan statistical area e. multicultural society

Q: A multicultural society is characterized by: a. a population of recent immigrants that are closely related by custom and tradition b. a conglomeration of small and large ethnic groups that have little in common c. even distribution of all ethnic groups in a geographic region d. effective mass-marketing techniques e. one large dominating racial or ethnic group in a geographic area

Q: Which of the following is the largest Asian American segment? a. Chinese b. Filipino c. Vietnamese d. Korean e. Japanese

Q: Which ethnic group has the highest average family income? a. Hispanic Americans b. African Americans c. Asian Americans d. South Americans e. Cuban Americans

Q: The majority of Hispanic Americans are of _____ descent. a. Mexican b. Puerto Rican c. Spanish d. South American e. Cuban

Q: Which of the following statements characterizes the growing ethnic markets in the United States today?a. Marketers are modifying products to appeal to different ethnicitiesb. The United States is becoming a multicultural societyc. The United States is moving away from being a society dominated by whites and rooted in Western cultured. The percentage of whites in the United States' population will decline relative to other minority groupse. All of the statements characterize the demographic transition in the United States today

Q: All of the following are segments into which baby boomers have been subdivided into EXCEPT? a. "at ease" boomers b. "confident and living well" boomers c. "looking for balance" boomers d. "age-defying" boomers e. "overwhelmed" boomers

Q: Which of the following represents the largest group of consumers in the United States? a. tweens b. Gen Y c. Gen X d. baby boomers e. boomerangs

Q: The group of people in the United States who were born between 1946 and 1964 are known as: a. Generation Xers b. gray markets c. synergistic cohorts d. the baby bust generation e. baby boomers

Q: You are a marketing consultant for a firm that wants to target members of Generation X. Based on your knowledge of this demographic group, your advice to this firm would be to _____. a. emphasize freedom from work and commitment b. emphasize the importance of their children's education c. avoid topics dealing with materialistic possessions d. emphasize the baby boom culture e. concentrate on social networking as the best way to reach this group

Q: Consumers born between 1965 and 1978 form a group called _____.a. tweensb. yuppiesc. cohort marketsd. America's mass markete. Generation X

Q: _____ are strongly attached to technology, tend to be skeptical consumers, and demand the latest fashion trends in record time. a. Generation Xers b. members of the cohort generation c. baby boomers d. Generation Yers e. members of the baby bridging generation

Q: Merissa Champlain designs and sells clothes for young working women. Her marketing managers recently told her that she"ll be in financial trouble unless she starts designing clothes suited to Gen Yers. Why is this? a. Gen Yers are picky b. Gen Yers are more multicultural c. Baby boomers provide all of the disposable income for Gen Y members d. Demographically, Gen Yers are an extremely large group of consumers e. Gen Yers are easily swayed by traditional promotion media

Q: Girls between the ages of 8 and 14 are one of the growing markets for high-end shoe manufacturers. These girls want styles that are both youthful and grown-up looking. They are _____. a. members of Generation X b. a cohort generation c. tweens d. baby boomers e. the baby bridging generation

Q: Riot Media is a media and toy company that capitalizes on the "gross-out" humor that boys ages 8 through 14 greatly enjoy. In other words, it targets _____. a. members of Generation X b. a cohort generation c. tweens d. baby boomers e. the baby bridging generation

Q: Which of the following is NOT a demographic characteristic of a population? a. income level b. age c. values d. education e. birthrate

Q: Zimmer Centralpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. It is particularly interested in marketing in the southwestern United States, where a large aging population lives. Which external environmental element most directly explains its continued growth? a. economic conditions b. political conditions c. culture d. demography e. social forces

Q: The study of people's vital statistics, such as their ages, births, deaths, and locations, is called: a. cultural sociology b. psychometrics c. ecology d. ethnography e. demography

Q: Which of the following events has had the greatest effect on marketing? a. the growing number of one-child families b. the increasing number of immigrants from Northern Europe c. the growing number of people on the Internet d. the increasing number of working women e. the growing number of people of retirement age who are continuing work

Q: The growth of dual-income families has resulted in: a. burnout b. a sense of entitlement c. decreased discretionary income d. decreased GNP e. increased purchasing power

Q: If you were to ask Americans what they most desire to make their lives easier, most will want more time. This feeling that there are not enough hours in a day is an example of a(n) _____ factor that has strongly influenced the marketing environment. a. social b. economic c. legal d. demographic e. component lifestyle

Q: Lee Siracca owns two horses, brews his own beer, participates in the civic arts commission, enjoys talk radio, hikes on wilderness trails, and competes in rodeos. All of these diverse needs and interests influence his choices of the goods and services he buys. Lee has a_____. a. component lifestyle b. demographically oriented lifestyle c. multicultural demographic position d. fragmented market orientation e. segmented buying strategy

Q: Kendra teaches high school science. She is also a wine expert, a PTA president, and an accomplished sculptor. Her other interests include scrapbooking, gourmet cooking, and NASCAR. Marketers would categorize Kendra as _____. a. fitting into a caregiver segment b. a member of the typical education-based target segment c. not belonging to any target market d. having a component lifestyle e. having a conforming lifestyle

Q: Lance is a 30-year old, single professional who enjoys hiking, college sports, and poetry. He lives with his girlfriend but does not have plans to get married in the near future. He leads a life much different from his father who married right after high school, had children, and worked for the same company his entire career. More and more in the U.S., consumers like Lance are enjoying _____, piecing together a variety of interests, products, and services instead of conforming to traditional stereotypes. a. well-defined segments b. component lifestyles c. simple multipurpose products d. conformity and cohesiveness e. modular market mixes

Q: A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle. a. aggregated lifestyle b. component lifestyle c. psychographic mode of living d. demographically defined lifestyle e. targeted lifestyle

Q: What do self-sufficiency, upward mobility, work ethic, and conformity have in common? a. These are no longer valued attitudes b. They are attitudes that can easily be changed c. These are three perceptions that Americans have of the Asian lifestyle d. These are three of the core values that influence lifestyles in the United States e. They are the determinants of a component lifestyle

Q: Quaker Oats and other cereal manufacturers have developed what they call "breakfast-with-one-hand" productsno-mess breakfast bars and drinks that can be consumed while commuting. The popularity of on-the-go food is largely the result of changes in _____ factors. a. natural environmental b. demographic c. technological d. social e. political

Q: Consumers' concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor. a. economic b. political and legal c. technological d. demographic e. social

Q: Shark fin soup is a favorite Thai food. When a San Francisco-based organization claimed that the leading producer's soup contained mercury poison, its sales plummeted. The popularity of this soup in Thailand represents a(n) _____ factor while Thailand's lax enforcement of environmental protection and consumer protection regulations are a(n) _____ factor. a. economic; technological b. social; technological c. social; political and legal d. competitive; economic e. social; technological

Q: In Asia, Procter & Gamble (P&G) discovered that consumers like to experiment with different brands of shampoos and shy away from the family-size bottles so popular with Americans. Now it sells single-use sachets of shampoo in Asia. P&G responded to _____ factors when it changed its Asian packaging. a. demographic b. competitive c. technological d. social e. component lifestyle

Q: Many people in the United States choose to drink light beer because they value thin and fit bodies. In Europe, light beers have had little success because flavor is valued more highly. For international beer manufacturers, this difference illustrates how _____ influence(s) marketing. a. demography b. competition c. social factors d. economic conditions e. technology

Q: Which of the following is the most difficult for marketing managers to forecast, influence, or integrate into marketing plans? a. technology b. social factors c. demography d. competition e. economic conditions

Q: _____ factors are environmental factors that include our attitudes, values, and lifestyles. a. Social b. Economic c. Political d. Competitive e. Demographic

Q: The Michigan State Legislature tried to pass a bill requiring concert promoters and venue operators to print parental warnings on tickets and advertisements for concerts and shows by performers whose recordings had content advisory labels. Promoters and venue operators prevented the passage of this bill, arguing that it would require them to make value judgments for which they were ill-equipped. The promoters and operators engaged in_____. a. internal marketing b. illegal practices c. environmental management d. reengineering e. corporate espionage

Q: When a company engages in _____, it is implementing strategies that attempt to shape the external environment in which it operates. a. synergistic control b. environmental management c. environmental control d. market control e. reactive management

Q: Marketing managers cannot control _____, but they can sometimes influence it. a. where advertising is placed b. the external environment c. the sales force d. the distribution strategy e. product pricing

Q: Susan is the director of marketing for a company that sells recreational vehicles and is developing a marketing plan to cover the next five years of business. Which of the following is an uncontrollable factor Susan must consider in her plan? a. place or distribution factors b. media buying factors c. economic factors d. promotional literature e. pricing strategy for warranty services

Q: All of the following are factors in the external environment affecting marketing EXCEPT: a. marketing mix b. economic conditions c. technology d. political and legal factors e. competition

Q: The external environment is a strong influence on a target market and can provide _____ for the marketing manager. a. opportunities and threats b. threats and strengths c. environmental loopholes d. opportunities and weaknesses e. product myopia

Q: The external environment _____. a. can be controlled in much the same manner as the internal marketing mix b. cannot be influenced by marketing managers c. does not change over time d. does not have an impact on Fortune 500 companies e. must be continually monitored by marketing managers

Q: The publisher of Ebony magazine has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. Ebony Home will use the publisher's long history and expertise to market to the African American market. The African American market is the _____ for the Ebony Home brand. a. target market b. buying center c. aggregated unit d. consumer cluster e. demographic sample

Q: Colorific recently began competing with Crayola coloring products. At the beginning of the school year, the _____ for Colorific products consists of back-to-school shoppers. a. target market b. buying center c. mass market d. consumer sample e. aggregated demography

Q: Which of the following statements best describes the typical target market? a. A target market will remain stable over time, including the same group of consumers. b. Target markets change over time as consumers drop in or out of the market, and as tastes change. c. Target markets are not strongly affected by changes in the external environment. d. Target markets only change when the features and benefits of the product offering change. e. Target markets cannot be specifically defined according to age, income, or location because these factors are continually changing

Q: A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.a. target marketb. buying centerc. aggregated unitd. consumer clustere. demographic sample

Q: The competitive environment of a business encompasses the number of competitors the firm must face, the relative size of these competitors, regulatory agencies, and the degree of interdependence within the industry.

Q: The Gramm-Leach-Bliley Act is aimed at the healthcare industry.

Q: Privacy policies for companies in the United States are largely voluntary and there are almost no regulations on the collection and use of personal data.

Q: After Hal Li purchased and installed a woodburning stove to heat his family home, the stove caught fire and damaged much of the house. He believes the stove had inadequate insulation. Li should voice his concerns to the Federal Trade Commission (FTC).

Q: Marketers need a thorough understanding of the laws established by the federal government, state governments, and regulatory agencies.

Q: The Sherman Act of 1890 establishes protection for trademarks.

Q: Champion Lyte is a sugar-free sports drink. In developing the product, its manufacturer thoroughly studied the legal restrictions on the drink's ingredients, packaging, manufacturing, and labeling and has abided by all such restrictions. In this way, the manufacturer of Champion Lyte drinks conducted its examination of all political and legal factors that might affect the product's marketing.

Q: Basic research attempts to develop new or improved products.

Q: An economic recession increases demand for products and services.

Q: Inflation is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Q: Rising incomes mean a higher standard of living.

Q: Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented.

Q: The Hispanic population is driving minority growth in the United States.

Q: Almost half of all U.S. residents is a minority.

Q: Baby boomers represent a monolithic group.

Q: Generation Y is the first generation of latchkey children--products of dual-career and/or divorced households.

Q: Generation Y is the most ethnically diverse generation the nation has ever seen.

Q: The clothing style worn by tweens reflects that of their parents.

Q: Psychography is the study of people's vital statistics such as their ages and locations.

Q: The phenomenon of working women has had a greater effect on marketing than has any other social change.

Q: The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle is known as aggregate lifestyles.

Q: Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.

Q: Companies use environmental management when they implement strategies that attempt to shape the external environment within which they operate.

Q: Champion Lyte is a sugar-free sports drink designed to replenish electrolytes lost during activity or illness. Since the product was designed primarily for diabetics, health care professionals who treat diabetics are its primary target market.

Q: Marketers can control the external environment in which their organizations operate.

Q: Name and describe one federal law that has been passed to protect consumers from identity theft.