chapter 4 Flashcards

1
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

A

A

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2
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

A

A

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3
Q

_______ are the largest U.S. minority.

a. Russian Americans
b. Hispanics
c. Asian Americans
d. African American

A

B

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4
Q

Which of the following best defines the marketing environment?

A) The collection of all marketing materials used by a company.
B) The set of strategies employed by a marketer to control consumer behavior.
C) Any factor that significantly impacts a company but is largely beyond the marketer’s control.
D) The physical location where marketing activities take place.

A

C

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5
Q

Which statement best describes the role of strategic planning and analysis in relation to the marketing environment?

A) Strategic planning and analysis are primarily focused on predicting future consumer behavior.
B) Strategic planning and analysis are tools used to manipulate the marketing environment to the company’s advantage.
C) Strategic planning and analysis are utilized to assess the current conditions of the marketing environment.
D) Strategic planning and analysis are unnecessary in adapting to changes in the marketing environment.

A

C. Strategic planning and analysis
Used to learn about the current conditions of the marketing environment
Companies need to consistently “scan” environment

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6
Q

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

A

A

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7
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

A

D

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8
Q

Which of the following statements best reflects the principle of self-sufficiency?

A) “Relying on others for support is a sign of strength and community.”
B) “Independence and self-reliance are important values; one should strive to stand on their own two feet.”
C) “It is essential to constantly seek validation and assistance from others to achieve success.”
D) “Sharing resources and responsibilities equally among individuals leads to a balanced society.”

A

B

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9
Q

Which of the following statements aligns best with the principle of upward mobility?

A) “Success is primarily determined by luck and chance.”
B) “Social status is fixed and unchangeable.”
C) “Achieving success requires dedication, education, and adherence to societal norms.”
D) “Advancement in society is solely determined by one’s family background.”

A

C

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10
Q

Which statement most accurately reflects the principle of equality under the law?

A) “Special treatment should be granted to individuals based on their social status.”
B) “Discrimination and preferential treatment are acceptable in certain circumstances.”
C) “Everyone should anticipate fair and equal treatment regardless of their background or status.”
D) “Laws should be applied differently depending on a person’s wealth or connections

A

C

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11
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

A

C. Values are an example of social factors and influence the products that people buy.

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12
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

A

D. Social factors influence the products people buy.

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13
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

A

C

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14
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

A

E. Social factors include our attitudes, values, and lifestyles

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15
Q

Quaker Oats and other cereal manufacturers have developed what they call “breakfast-with-one-hand”
products—no-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

A

D

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16
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

A

D

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17
Q

Which of the following behaviors are increasingly observed in consumers as they engage more online?

a) Enhanced socialization, reduced purchasing, limited interaction with brands
b) Reduced socialization, increased purchasing, limited interaction with brands
c) Enhanced socialization, increased purchasing, extensive interaction with brands
d) Limited socialization, reduced purchasing, increased interaction with brands

A

C

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18
Q

Which statement best describes the role of social media in contemporary society?

a) Social media is a minor aspect of our culture, primarily used for entertainment purposes.
b) Social media plays a significant role in our culture, facilitating interconnection among individuals and communities.
c) Social media has a limited impact on our culture, serving mainly as a platform for advertising.
d) Social media is detrimental to our culture, promoting isolation and disconnection among individuals.

A

B

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19
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

A

E

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20
Q

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

A

C

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21
Q

Which of the following statements accurately reflects the significance of demographic groups in the marketing environment?

A) “Demographic groups have uniform purchasing power and behavior across all product markets.”
B) “Changes in demographic composition have no impact on the marketing environment.”
C) “Different demographic groups exhibit distinct lifestyles, purchasing power, and behaviors, influencing product markets.”
D) “Demographic factors are negligible in determining consumer preferences and market trends.”

A

C

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22
Q

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

A

C

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23
Q

Which of the following statements about Generation Y is true?
a. Its members were born between 1965 and 1978.
b. It is over three times as large as Generation X.
c. The members of Generation Y are pressed for time and spend more on personal services
than any other age group.
d. Members of Generation Y are the first generation of latchkey kids.
e. All of these statements are true.

A

B. One-third of US. population

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24
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

A

D. Gen Yers tend to be impatient, family-oriented, inquisitive, opinionated, diverse, time managers,
“street smart,” and connected.

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25
Q

Consumers born between 1965 and 1978 form a group called _____.
a. tweens
b. yuppies
c. cohort markets
d. America’s mass market
e. Generation X

A

E

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26
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

A

D. The size of this group makes them especially important to all marketers.

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27
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

A

E

28
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

A

D. Baby boomers comprise 77 million people, Gen X 40 million, Gen Y 60 million, and Tweens 29
million.

29
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

A

C

30
Q

Which age segment is considered the most economically powerful?

a) Generation X
b) Millennials
c) Baby Boomers
d) Generation Z

A

C

31
Q

What characteristics best describe Generation X?

a) Carefree and spontaneous, with a focus on luxury living.
b) Independent, adaptable, and prioritize saving money.
c) Idealistic and focused on social activism.
d) Tech-savvy and heavily reliant on social media for communication.

A

B

32
Q

What are some signs of the growing diversity in consumer markets?

a) Decreased use of multi-lingual signage and advertisements.
b) Reduced diversity in media representation.
c) Increased use of multi-lingual signage and advertisements.
d) Less focus on targeting ethnic consumer segments by products, services, and retailers

A

C

33
Q

What does discretionary income refer to?

a) Money saved for emergencies.
b) Money left after paying for essential expenses.
c) Income from part-time jobs.
d) Money spent on luxury items.

A

B

34
Q

Which of the following are considered economic factors?

a) Education level and job satisfaction.
b) Income, purchasing power, inflation, and recession.
c) Social media usage and technological advancements.
d) Weather patterns and natural disasters.

A

B

35
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

A

C

36
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

A

B

37
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

A

C

38
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

A

A

39
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

A

A

40
Q

What is the relationship between high income and discretionary income?

a) High income leads to reduced discretionary income.
b) High income leads to increased discretionary income.
c) High income has no impact on discretionary income.
d) High income leads to increased essential expenses.

A

B

41
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

A

C

42
Q

The main product for Zamperla Industries is gondola cars for amusement park rides and ski lifts. Its
marketing department constantly monitors trends in the external environment that might affect the
firm. Which economic factor may pose a major threat to this company?
a. few competitors in this industry
b. technological improvements that are automating production of cars
c. a recession
d. increasing interest in the environment and recycling
e. existing legislation requiring licensing of all amusement park rides

A

C

43
Q

Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving
the quality of merchandise it offers, improving customer service, and reducing its cost of goods sold
because consumers are not shopping as much as they used to due to lower purchasing power. Shabby
Chic is apparently dealing with which level of economic activity?
a. stagflation
b. recession
c. inflation
d. stagnation
e. distension

A

B

44
Q

Blogs created by consumers can be used to assess customer attitudes toward new products as well as
customer perceptions of new products. Marketers’ ability to search for key words used in the blogs is
an example of a change in the _____ factor of the external environment.
a. psychographic
b. technological
c. competitive
d. demographic
e. economic

A

B

45
Q

The two types of research are:
a. basic and applied
b. primary and secondary
c. profit and not-for-profit
d. domestic and global
e. basic and advanced

A

A

46
Q

In the future, electrical power may come from quantum nucleonics, a form of nuclear power that
produces no residual radiation. The ability to use this form of power will require equipment
adaptations, but it will solve the world’s need for clean and efficient power. When quantum nucleonics
is developed, it will be an example of how _____ factors can affect an organization.
a. technological
b. competitive
c. economic
d. cultural
e. demographic

A

A. Quantum nucleonics is part of the technological environment

47
Q

Which type of research is also called pure research and attempts to expand the frontiers of knowledge
but is not aimed at a specific, pragmatic problem?
a. applied
b. basic
c. primary
d. secondary
e. synergistic

A

B. Basic research aims to confirm an existing theory or to learn more about a concept or phenomenon.

48
Q

Juan is a marketing professor researching consumer decision-making processes. Specifically, he is
examining if including a picture in a print advertisement is more effective than not including a picture
in influencing readers’ attitude toward the advertisement and brand advertised. He is not researching
any specific brand, but rather he is interested in testing Dual Coding theory that predicts that pictures
will have a more positive impact on attitudes. Juan is conducting _____ research.
a. secondary
b. basic
c. applied
d. complex

A

B

49
Q

Which type of research attempts to develop new or improved products?
a. basic
b. synergistic
c. secondary
d. primary
e. applied

A

E

50
Q

A marketing researcher is conducting a focus group interview with a group of working mothers to
learn how Kraft can better meet their needs for convenience foods. What type of research does this
represent?
a. basic
b. applied
c. secondary
d. synergistic
e. idiosyncratic

A

B. Applied research attempts to develop new or improved products.

51
Q

Almost any product in India, from tap water to milk, has traces of toxins due to the overuse and misuse
of insecticides by Indian farmers, but the government expects multinational corporations (MNCs)
operating in India to produce food that is toxin-free. In this way both _____ factors influence the
operating environment for foreign firms.
a. social and technological
b. legal and technological
c. economic and legal
d. economic and social
e. technological and demographic

A

B

52
Q

Laws and regulations of various governments and their ongoing development and change are an
example of _____ factors that are part of all organizations’ external environment.
a. economic investment
b. political and legal
c. research and development
d. competitive
e. demographic

A

B

53
Q

When Universal Studios Japan opened, health inspectors discovered the theme park had piped
industrial use water not suitable for drinking into its drinking fountains. The problem was
unanticipated and costly to repair. This is primarily an example of how _____ factors can cause a
business to incur unexpected costs.
a. social
b. economic
c. competitive
d. cultural
e. political and legal

A

E

54
Q

Which areas of marketing do federal laws primarily focus on regulating?

a) Employee training and development.
b) Product design and packaging.
c) Competitive environment, pricing, advertising and promotion, and consumer privacy.
d) International market expansion strategies.

A

C

55
Q

_____ is a governmental body that has the power to prescribe mandatory safety standards for almost
all products consumers use.
a. Health and Welfare Agency
b. Federal Trade Commission
c. Food and Drug Administration
d. Federal Communications Commission
e. Consumer Product Safety Commission

A

E

56
Q

The _____ is an agency that prevents the use of unfair methods of competition in commerce.
a. Federal Communications Commission
b. Commerce Department
c. Commission for Fair Trade
d. Federal Trade Commission
e. Sherman Antitrust Agency

A

D

57
Q

Many people drink bottled water today, but one national brand of bottled water was not “spring-fresh”
as advertised. The water actually came from a well located in the middle of an industrial warehouse
facility and next to a industrial waste site. To which organization should the consumers who thought
the advertising for the bottled water was misleading complain?
a. Consumer Product Safety Commission
b. Food and Drug Administration
c. Federal Trade Commission
d. Federal Communications Commission
e. Consumer Protection Agency

A

C. The FTC is charged with preventing corporations from using deceptive advertising and unfair methods
of competition in commerce.

58
Q

Alex purchased a battery-operated drill, and the first time he used the drill, the battery pack overheated
and exploded. After Alex’s trip to the emergency room, it was determined that the explosion was due
to a problem with how the drill was manufactured. Alex would like to lodge a complaint about the
poor quality of the drill’s construction. To which federal agency should he complain?
a. Labor Department
b. Food and Drug Administration
c. Federal Trade Commission
d. Department of Trade
e. Consumer Product Safety Commission

A

E

59
Q

The _____ is the federal government agency charged with enforcing regulations against selling and
distributing adulterated, misbranded, or hazardous products of a specific type.
a. Federal Trade Commission
b. Consumer Product Protection Commission
c. U.S. Justice Department
d. Food and Drug Administration
e. American Safety League

A

D

60
Q

Which statement accurately describes state and local laws related to marketing?

a) State and local laws have no impact on marketing practices.
b) State laws are uniform across all regions.
c) Legislation concerning marketing can vary from one state or city to another.
d) State and local laws only focus on regulating online marketing activities.

A

C

61
Q

The number of firms a company must face, the relative size of these firms, and the degree of
interdependence within the industry are all part of its _____ environment.
a. demographic
b. economic
c. political
d. competitive
e. social

A

D

62
Q

Frito-Lay is considered the king of the salty snack industry with its distribution network of 42 plants,
12,800 delivery people, and more than 900 tractor trailers formed into a retail delivery powerhouse.
Smaller manufacturers of salty snacks find that monitoring the activities of Frito-Lay is an effective
way to monitor the _____ factors within their external environments.
a. bureaucratic
b. marketing mix
c. competitive
d. social
e. demographic

A

C

63
Q
A
64
Q

Which competitor moves typically have the most immediate effect on companies?

a) Increasing prices and reducing discounts.
b) Cutting prices, launching new products, and entering new markets.
c) Decreasing advertising expenditure.
d) Maintaining the status quo without any changes.

A

B

65
Q

What are some effects of globalization on competition?

a) Globalization reduces competition and makes it less intense.
b) Globalization increases competition, making it more intense and disruptive.
c) Globalization has no impact on competition.
d) Globalization only benefits industries and companies, not consumers.

A

B