marketing ch3

Question 1

Describe three generational cohorts

Answer 1

(1) Baby boomers are the generation of 73 million children among the U.S. population born between 1946 and 1964. These Americans are growing older and will all be 65 or older by 2030. (2) Generation X are the 50 million people born between 1965 and 1976. Also known as the baby bust cohort because of declining birth rates, these well-educated Americans have a collective net worth that is less than the baby boomer generation. (3) Generation Y are the 72 million Americans among the U.S. population born between 1977 and 1994. The rising birth rate of this baby boom let cohort is the result of baby boomers having children. The term millennial is often used, with inconsistent definitions, to refer to younger members of Generation Y. The post-millennial generation, which includes consumers born between 1995 and 2010, is referred to as Generation Z.

Question 2

Why are many companies developing multicultural marketing programs?

Answer 2

Multicultural marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups. The reasons for developing these programs are: (1) The racial and ethnic diversity of the U.S. is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact. (2) An accurate understanding of the culture of each group is essential if marketing efforts are to be successful. (3) Based on an analysis of population demographic data, racial and ethnic groups tend to be concentrated in specific geographic regions.

Question 3

How are important values such as sustainability reflected in the marketplace today?

Answer 3

Many Americans desire and practice sustainability to preserve the environment. Specifically, these consumers are buying hybrid cars and energy-efficient light bulbs. Consumers also prefer brands that have a strong link to social action. Companies are responding to this consumer trend by using renewable energy and reducing packaging of their products.

Question 4

What is the difference between a consumer’s disposable and discretionary income?

Answer 4

: Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities and is usually spent on luxury items.

Question 5

How does technology impact customer value?

Answer 5

Answers: (1) Because the cost of technology is plummeting, this allows consumers to assess the value of technology-based products on other dimensions, such as quality, service, and relationships. (2) Technology provides value through the development of new products. (3) Technology has changed the way existing products are produced through recycling and recycling.

Question 6

In pure competition, there are a __________ number of sellers.

Answer 6

: large

Question 7

The __________ Act was punitive toward monopolies, whereas the __________ Act was preventive.

Answer 7

Sherman Antitrust; Clayton

Question 8

How does the Better Business Bureau encourage companies to follow its standards for commerce?

Answer 8

: The Better Business Bureau (BBB) uses moral suasion to get members to comply with its standards. Companies, which join the BBB voluntarily, must agree to follow these standards before they can display the BBB Accredited Business logo.